[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2646 Enrolled Bill (ENR)]

        H.R.2646

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

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


                                 An Act


 
To provide for the continuation of agricultural programs through fiscal 
                   year 2007, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm Security and 
Rural Investment Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

                       TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

        Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Establishment of base acres and payment acres for a farm.
Sec. 1102. Establishment of payment yield.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
          direct 
          payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Relation to remaining payment authority under production 
          flexibility contracts.
Sec. 1108. Period of effectiveness.

   Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
          loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
          acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
          and seed 
          cotton.

                           Subtitle C--Peanuts

Sec. 1301. Definitions.
Sec. 1302. Establishment of payment yield and base acres for peanuts for 
          a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of 
          direct 
          payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for 
          peanuts.
Sec. 1308. Miscellaneous provisions.
Sec. 1309. Termination of marketing quota programs for peanuts and 
          compensation to peanut quota holders for loss of quota asset 
          value.
Sec. 1310. Repeal of superseded price support authority and effect of 
          repeal.

                            Subtitle D--Sugar

Sec. 1401. Sugar program.
Sec. 1402. Storage facility loans.
Sec. 1403. Flexible marketing allotments for sugar.

                            Subtitle E--Dairy

Sec. 1501. Milk price support program.
Sec. 1502. National dairy market loss payments.
Sec. 1503. Dairy export incentive and dairy indemnity programs.
Sec. 1504. Dairy product mandatory reporting.
Sec. 1505. Funding of dairy promotion and research program.
Sec. 1506. Fluid milk promotion.
Sec. 1507. Study of national dairy policy.
Sec. 1508. Studies of effects of changes in approach to national dairy 
          policy and fluid milk identity standards.

                       Subtitle F--Administration

Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Commission on application of payment limitations.
Sec. 1606. Adjustments of loans.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Extension of existing administrative authority regarding 
          loans.
Sec. 1609. Commodity Credit Corporation Inventory.
Sec. 1610. Reserve stock level.
Sec. 1611. Farm reconstitutions.
Sec. 1612. Assignment of payments.
Sec. 1613. Equitable relief from ineligibility for loans, payments, or 
          other benefits.
Sec. 1614. Tracking of benefits.
Sec. 1615. Estimates of net farm income.
Sec. 1616. Availability of incentive payments for certain producers.
Sec. 1617. Renewed availability of market loss assistance and certain 
          emergency assistance to persons that failed to receive 
          assistance under earlier authorities.
Sec. 1618. Producer retention of erroneously paid loan deficiency 
          payments and marketing loan gains.

                         TITLE II--CONSERVATION

                    Subtitle A--Conservation Security

Sec. 2001. Conservation security program.
Sec. 2002. Conservation compliance.
Sec. 2003. Partnerships and cooperation.
Sec. 2004. Administrative requirements for conservation programs.
Sec. 2005. Reform and assessment of conservation programs.
Sec. 2006. Conforming amendments.

                    Subtitle B--Conservation Reserve

Sec. 2101. Conservation reserve program.

                  Subtitle C--Wetlands Reserve Program

Sec. 2201. Reauthorization.
Sec. 2202. Enrollment.
Sec. 2203. Easements and agreements.
Sec. 2204. Changes in ownership; agreement modification; termination.

              Subtitle D--Environmental Quality Incentives

Sec. 2301. Environmental quality incentives program.

                      Subtitle E--Grassland Reserve

Sec. 2401. Grassland reserve program.

                 Subtitle F--Other Conservation Programs

Sec. 2501. Agricultural management assistance.
Sec. 2502. Grazing, wildlife habitat incentive, source water protection, 
          and Great Lakes basin programs.
Sec. 2503. Farmland protection program.
Sec. 2504. Resource conservation and development program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Use of symbols, slogans, and logos.
Sec. 2507. Desert terminal lakes.

         Subtitle G--Conservation Corridor Demonstration Program

Sec. 2601. Definitions.
Sec. 2602. Conservation corridor demonstration program.
Sec. 2603. Implementation of conservation corridor plan.
Sec. 2604. Funding requirements.

                 Subtitle H--Funding and Administration

Sec. 2701. Funding and administration.
Sec. 2702. Regulations.

                            TITLE III--TRADE

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

Sec. 3001. United States policy.
Sec. 3002. Provision of agricultural commodities.
Sec. 3003. Generation and use of currencies by private voluntary 
          organizations and cooperatives.
Sec. 3004. Levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Maximum level of expenditures.
Sec. 3007. Administration.
Sec. 3008. Assistance for stockpiling and rapid transportation, 
          delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3009. Sale procedure.
Sec. 3010. Prepositioning.
Sec. 3011. Transportation and related costs.
Sec. 3012. Expiration date.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski Farmer-to-Farmer Program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 3101. Exporter assistance initiative.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for progress.
Sec. 3107. McGovern-Dole International Food for Education and Child 
          Nutrition Program.

                        Subtitle C--Miscellaneous

Sec. 3201. Surplus commodities for developing or friendly countries.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
Sec. 3203. Emerging markets.
Sec. 3204. Biotechnology and agricultural trade program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global market strategy.
Sec. 3207. Report on use of perishable commodities and live animals.
Sec. 3208. Study on fee for services.
Sec. 3209. Sense of Congress concerning foreign assistance programs.
Sec. 3210. Sense of the Senate concerning agricultural trade.

                      TITLE IV--NUTRITION PROGRAMS

Sec. 4001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 4101. Encouragement of payment of child support.
Sec. 4102. Simplified definition of income.
Sec. 4103. Standard deduction.
Sec. 4104. Simplified utility allowance.
Sec. 4105. Simplified determination of housing costs.
Sec. 4106. Simplified determination of deductions.
Sec. 4107. Simplified definition of resources.
Sec. 4108. Alternative issuance systems in disasters.
Sec. 4109. State option to reduce reporting requirements.
Sec. 4110. Cost neutrality for electronic benefit transfer systems.
Sec. 4111. Report on electronic benefit transfer systems.
Sec. 4112. Alternative procedures for residents of certain group 
          facilities.
Sec. 4113. Redemption of benefits through group living arrangements.
Sec. 4114. Availability of food stamp program applications on the 
          Internet.
Sec. 4115. Transitional food stamps for families moving from welfare.
Sec. 4116. Grants for simple application and eligibility determination 
          systems and improved access to benefits.
Sec. 4117. Delivery to retailers of notices of adverse action.
Sec. 4118. Reform of quality control system.
Sec. 4119. Improvement of calculation of State performance measures.
Sec. 4120. Bonuses for States that demonstrate high or most improved 
          performance.
Sec. 4121. Employment and training program.
Sec. 4122. Reauthorization of food stamp program and food distribution 
          program on Indian reservations.
Sec. 4123. Expanded grant authority.
Sec. 4124. Consolidated block grants for Puerto Rico and American Samoa.
Sec. 4125. Assistance for community food projects.
Sec. 4126. Availability of commodities for the emergency food assistance 
          program.

                   Subtitle B--Commodity Distribution

Sec. 4201. Commodity supplemental food program.
Sec. 4202. Commodity donations.
Sec. 4203. Distribution of surplus commodities to special nutrition 
          projects.
Sec. 4204. Emergency food assistance.

            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Commodities for school lunch program.
Sec. 4302. Eligibility for free and reduced price meals.
Sec. 4303. Purchases of locally produced foods.
Sec. 4304. Applicability of Buy-American requirement to Puerto Rico.
Sec. 4305. Fruit and vegetable pilot program.
Sec. 4306. Eligibility for assistance under the special supplemental 
          nutrition program for women, infants, and children.
Sec. 4307. WIC farmers' market nutrition program.

                        Subtitle D--Miscellaneous

Sec. 4401. Partial restoration of benefits to legal immigrants.
Sec. 4402. Seniors farmers' market nutrition program.
Sec. 4403. Nutrition information and awareness pilot program.
Sec. 4404. Hunger fellowship program.
Sec. 4405. General effective date.

                             TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Financing of bridge loans.
Sec. 5003. Amount of guarantee of loans for farm operations on tribal 
          lands.
Sec. 5004. Guarantee of loans made under State beginning farmer or 
          rancher programs.
Sec. 5005. Down Payment Loan Program.
Sec. 5006. Beginning farmer and rancher contract land sales program.

                       Subtitle B--Operating Loans

Sec. 5101. Direct loans.
Sec. 5102. Suspension of limitation on period for which borrowers are 
          eligible for guaranteed assistance.

                       Subtitle C--Emergency Loans

Sec. 5201. Emergency loans in response to an emergency resulting from 
          quarantines.

                  Subtitle D--Administrative Provisions

Sec. 5301. Evaluations of direct and guaranteed loan programs.
Sec. 5302. Eligibility of trusts and limited liability companies for 
          farm ownership loans, farm operating loans, and emergency 
          loans.
Sec. 5303. Debt settlement.
Sec. 5304. Temporary authority to enter into contracts; private 
          collection agencies.
Sec. 5305. Interest rate options for loans in servicing.
Sec. 5306. Elimination of requirement that Secretary require county 
          committees to certify in writing that certain loan reviews 
          have been conducted.
Sec. 5307. Simplified loan guarantee application available for loans of 
          greater amounts.
Sec. 5308. Inventory property.
Sec. 5309. Administration of certified lenders and preferred certified 
          lenders programs.
Sec. 5310. Definitions.
Sec. 5311. Loan authorization levels.
Sec. 5312. Reservation of funds for direct operating loans for beginning 
          farmers and ranchers.
Sec. 5313. Interest rate reduction program.
Sec. 5314. Reamortization of recapture payments.
Sec. 5315. Allocation of certain funds for socially disadvantaged 
          farmers and ranchers.
Sec. 5316. Waiver of borrower training certification requirement.
Sec. 5317. Timing of loan assessments.
Sec. 5318. Annual review of borrowers.
Sec. 5319. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 5320. Making and servicing of loans by personnel of State, county, 
          or area committees.
Sec. 5321. Eligibility of employees of State, county, or area committee 
          for loans and loan guarantees.

                         Subtitle E--Farm Credit

Sec. 5401. Repeal of burdensome approval requirements.
Sec. 5402. Banks for cooperatives.
Sec. 5403. Insurance corporation premiums.

                     Subtitle F--General Provisions

Sec. 5501. Technical amendments.

                       TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Eligibility of rural empowerment zones and rural enterprise 
          communities for direct and guaranteed loans for essential 
          community facilities. 
Sec. 6002. Water or waste disposal grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facilities.
Sec. 6005. Rural water and wastewater circuit rider program.
Sec. 6006. Multijurisdictional regional planning organizations.
Sec. 6007. Loan guarantees for certain rural development loans.
Sec. 6008. Tribal college and university essential community facilities.
Sec. 6009. Emergency and imminent community water assistance grant 
          program.
Sec. 6010. Water and waste facility grants for Native American tribes.
Sec. 6011. Grants for water systems for rural and native villages in 
          Alaska.
Sec. 6012. Grants to nonprofit organizations to finance the 
          construction, refurbishing, and servicing of individually-
          owned household water well systems in rural areas for 
          individuals with low or moderate incomes.
Sec. 6013. Loans and loan guarantees for renewable energy systems.
Sec. 6014. Rural business enterprise grants.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Business and industry loan modifications.
Sec. 6018. Use of rural development loans and grants for other purposes.
Sec. 6019. Simplified application forms for loan guarantees.
Sec. 6020. Definition of rural and rural area.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Rural telework.
Sec. 6023. Historic barn preservation.
Sec. 6024. Grants for NOAA weather radio transmitters.
Sec. 6025. Grants to train farm workers in new technologies and to train 
          farm workers in specialized skills necessary for higher value 
          crops.
Sec. 6026. Rural community advancement program.
Sec. 6027. Delta Regional Authority.
Sec. 6028. Northern Great Plains Regional Authority.
Sec. 6029. Rural business investment program.
Sec. 6030. Rural strategic investment program.
Sec. 6031. Funding of pending rural development loan and grant 
          applications.

              Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Guarantees for bonds and notes issued for electrification or 
          telephone purposes.
Sec. 6102. Expansion of 911 access.
Sec. 6103. Enhancement of access to broadband service in rural areas.

   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 6201. Alternative Agricultural Research and Commercialization 
          Corporation.
Sec. 6202. Rural electronic commerce extension program. 
Sec. 6203. Telemedicine and distance learning services in rural areas.

             Subtitle D--SEARCH Grants for Small Communities

Sec. 6301. Definitions.
Sec. 6302. SEARCH grant program.
Sec. 6303. Report.
Sec. 6304. Funding.

                        Subtitle E--Miscellaneous

Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Agriculture innovation center demonstration program.
Sec. 6403. Fund for Rural America.
Sec. 6404. Rural local television broadcast signal loan guarantees.
Sec. 6405. Rural firefighters and emergency personnel grant program.
Sec. 6406. Sense of Congress on rural policy coordination. 

                 TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

Sec. 7101. National rural information center clearinghouse.
Sec. 7102. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 7103. Policy research centers.
Sec. 7104. Human nutrition intervention and health promotion research 
          program.
Sec. 7105. Pilot research program to combine medical and agricultural 
          research.
Sec. 7106. Nutrition education program.
Sec. 7107. Continuing animal health and disease research programs.
Sec. 7108. Appropriations for research on national or regional problems.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities 
          at 1890 land-grant colleges, including Tuskegee University.
Sec. 7110. National research and training virtual centers.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science and 
          education programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Aquaculture research facilities.
Sec. 7117. Rangeland research.
Sec. 7118. National genetics resources program.
Sec. 7119. High-priority research and extension initiatives.
Sec. 7120. Nutrient management research and extension initiative.
Sec. 7121. Agricultural telecommunications program.
Sec. 7122. Assistive technology program for farmers with disabilities.
Sec. 7123. Partnerships for high-value agricultural product quality 
          research.
Sec. 7124. Biobased products.
Sec. 7125. Integrated research, education, and extension competitive 
          grants program.
Sec. 7126. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7127. 1994 Institution research grants.
Sec. 7128. Endowment for 1994 Institutions.
Sec. 7129. Precision agriculture.
Sec. 7130. Thomas Jefferson Initiative for crop diversification.
Sec. 7131. Support for research regarding diseases of wheat, triticale, 
          and barley caused by fusarium graminearum or by tilletia 
          indica.
Sec. 7132. Office of Pest Management Policy.
Sec. 7133. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 7134. Grants for research on production and marketing of alcohols 
          and industrial hydrocarbons from agricultural commodities and 
          forest products.
Sec. 7135. Agricultural experiment stations research facilities.
Sec. 7136. Competitive, special, and facilities research grants national 
          research initiative.
Sec. 7137. Federal agricultural research facilities authorization of 
          appropriations.
Sec. 7138. Critical agricultural materials research.
Sec. 7139. Aquaculture.

                        Subtitle B--Modifications

Sec. 7201. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7202. Carryover for experiment stations.
Sec. 7203. Authorization percentages for research and extension formula 
          funds.
Sec. 7204. Carryover for eligible institutions.
Sec. 7205. Initiative for future agriculture and food systems.
Sec. 7206. Eligibility for integrated grants program.
Sec. 7207. Agricultural Research, Extension, and Education Reform Act of 
          1998.
Sec. 7208. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 7209. National Agricultural Research, Extension, and Teaching 
          Policy Act of 1977.
Sec. 7210. Biotechnology risk assessment research.
Sec. 7211. Competitive, special, and facilities research grants.
Sec. 7212. Matching funds requirement for research and extension 
          activities of 1890 Institutions.
Sec. 7213. Matching requirements for research and extension formula 
          funds for insular area land-grant institutions.
Sec. 7214. Definition of food and agricultural sciences.
Sec. 7215. Federal Extension Service.
Sec. 7216. Policy research centers.
Sec. 7217. Availability of competitive grant funds.
Sec. 7218. Organic agriculture research and extension initiative.
Sec. 7219. Senior scientific research service.
Sec. 7220. Termination of certain schedule a appointments.
Sec. 7221. Biosecurity planning and response programs.
Sec. 7222. Indirect costs for small business innovation research grants.
Sec. 7223. Carbon cycle research.

        Subtitle C--Repeal of Certain Activities and Authorities

Sec. 7301. Food Safety Research Information Office and National 
          Conference.
Sec. 7302. Reimbursement of expenses under Sheep Promotion, Research, 
          and Information Act of 1994.
Sec. 7303. Market expansion research.
Sec. 7304. National Advisory Board on Agricultural Weather.
Sec. 7305. Agricultural information exchange with Ireland.
Sec. 7306. Pesticide resistance study.
Sec. 7307. Expansion of education study.
Sec. 7308. Task force on 10-year strategic plan for agricultural 
          research facilities.

                       Subtitle D--New Authorities

Sec. 7401. Subtitle definitions.
Sec. 7402. Research equipment grants.
Sec. 7403. Joint requests for proposals.
Sec. 7404. Review of Agricultural Research Service.
Sec. 7405. Beginning farmer and rancher development program.
Sec. 7406. Sense of Congress regarding doubling of funding for 
          agricultural research.
Sec. 7407. Organic production and market data initiatives.
Sec. 7408. International organic research collaboration.
Sec. 7409. Report on producers and handlers of organic agricultural 
          products.
Sec. 7410. Report on genetically modified pest-protected plants.
Sec. 7411. Study of nutrient banking.
Sec. 7412. Grants for youth organizations.

                        Subtitle E--Miscellaneous

Sec. 7501. Resident instruction and distance education at institutions 
          of higher education in United States insular areas.
Sec. 7502. Definitions.
Sec. 7503. Resident instruction and distance education grants program 
          for insular area institutions of higher education.
Sec. 7504. Declaration of extraordinary emergency and resulting 
          authorities.
Sec. 7505. Agricultural biotechnology research and development for 
          developing countries.
Sec. 7506. Land acquisition authority, national peanut research 
          laboratory, Dawson, Georgia.

                          TITLE VIII--FORESTRY

         Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. Repeal of forestry incentives program and stewardship 
          incentive program.
Sec. 8002. Establishment of forest land enhancement program.
Sec. 8003. Enhanced community fire protection.

                  Subtitle B--Amendments to Other Laws

Sec. 8101. Sustainable forestry outreach initiative; renewable resources 
          extension activities.
Sec. 8102. Office of International Forestry.

                  Subtitle C--Miscellaneous Provisions

Sec. 8201. McIntire-Stennis cooperative forestry research program.

                            TITLE IX--ENERGY

Sec. 9001. Definitions.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Biorefinery development grants.
Sec. 9004. Biodiesel fuel education program.
Sec. 9005. Energy audit and renewable energy development program.
Sec. 9006. Renewable energy systems and energy efficiency improvements.
Sec. 9007. Hydrogen and fuel cell technologies.
Sec. 9008. Biomass research and development.
Sec. 9009. Cooperative research and extension projects.
Sec. 9010. Continuation of bioenergy program.

                         TITLE X--MISCELLANEOUS

                       Subtitle A--Crop Insurance

Sec. 10001. Equal crop insurance treatment of potatoes and sweet 
          potatoes.
Sec. 10002. Continuous coverage.
Sec. 10003. Quality loss adjustment procedures.
Sec. 10004. Adjusted gross revenue insurance pilot program.
Sec. 10005. Sense of Congress on expansion of crop insurance coverage.
Sec. 10006. Report on specialty crop insurance.

                     Subtitle B--Disaster Assistance

Sec. 10101. Reference to sea grass and sea oats as crops covered by 
          noninsured crop disaster assistance program.
Sec. 10102. Emergency grants to assist low-income migrant and seasonal 
          farmworkers.
Sec. 10103. Emergency loans for seed producers.
Sec. 10104. Assistance for livestock producers.
Sec. 10105. Market loss assistance for apple producers.
Sec. 10106. Market loss assistance for onion producers.
Sec. 10107. Commercial fisheries failure.
Sec. 10108. Study of feasibility of producer indemnification from 
          Government-caused disasters.

                   Subtitle C--Tree Assistance Program

Sec. 10201. Definitions.
Sec. 10202. Eligibility.
Sec. 10203. Assistance.
Sec. 10204. Limitations on assistance.
Sec. 10205. Authorization of appropriations.

                       Subtitle D--Animal Welfare

Sec. 10301. Definition of animal under the Animal Welfare Act.
Sec. 10302. Prohibition on interstate movement of animals for animal 
          fighting.
Sec. 10303. Penalties and foreign commerce provisions of the Animal 
          Welfare Act.
Sec. 10304. Report on rats, mice, and birds.
Sec. 10305. Enforcement of Humane Methods of Slaughter Act of 1958.

                  Subtitle E--Animal Health Protection

Sec. 10401. Short title.
Sec. 10402. Findings.
Sec. 10403. Definitions.
Sec. 10404. Restriction on importation or entry.
Sec. 10405. Exportation.
Sec. 10406. Interstate movement.
Sec. 10407. Seizure, quarantine, and disposal.
Sec. 10408. Inspections, seizures, and warrants.
Sec. 10409. Detection, control, and eradication of diseases and pests.
Sec. 10410. Veterinary accreditation program.
Sec. 10411. Cooperation.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10414. Penalties.
Sec. 10415. Enforcement.
Sec. 10416. Regulations and orders.
Sec. 10417. Authorization of appropriations.
Sec. 10418. Repeals and conforming amendments.

                          Subtitle F--Livestock

Sec. 10501. Transportation of poultry and other animals.
Sec. 10502. Swine contractors.
Sec. 10503. Right to discuss terms of contract.
Sec. 10504. Veterinary training.
Sec. 10505. Pseudorabies eradication program.

                       Subtitle G--Specialty Crops

Sec. 10601. Marketing orders for caneberries.
Sec. 10602. Availability of section 32 funds.
Sec. 10603. Purchase of specialty crops.
Sec. 10604. Protection for purchasers of farm products.
Sec. 10605. Farmers' market promotion program.
Sec. 10606. National organic certification cost-share program.
Sec. 10607. Exemption of certified organic products from assessments.
Sec. 10608. Cranberry acreage reserve program.

                       Subtitle H--Administration

Sec. 10701. Initial rate of basic pay for employees of county 
          committees.
Sec. 10702. Commodity Futures Trading Commission pay comparability.
Sec. 10703. Overtime and holiday pay.
Sec. 10704. Assistant Secretary of Agriculture for Civil Rights.
Sec. 10705. Operation of Graduate School of Department of Agriculture.
Sec. 10706. Implementation funding and information management.
Sec. 10707. Outreach and assistance for socially disadvantaged farmers 
          and ranchers.
Sec. 10708. Transparency and accountability for socially disadvantaged 
          farmers and ranchers; public disclosure requirements for 
          county committee elections.

                     Subtitle I--General Provisions

Sec. 10801. Cotton classification services.
Sec. 10802. Program of public education regarding use of biotechnology 
          in producing food for human consumption.
Sec. 10803. Chino Dairy Preserve Project.
Sec. 10804. Grazinglands Research Laboratory.
Sec. 10805. Food and Agricultural Policy Research Institute.
Sec. 10806. Market names for catfish and ginseng.
Sec. 10807. Food Safety Commission.
Sec. 10808. Pasteurization.
Sec. 10809. Rulemaking on labeling of irradiated food; certain 
          petitions.
Sec. 10810. Penalties for violations of Plant Protection Act.
Sec. 10811. Preclearance quarantine inspections.
Sec. 10812. Connecticut River Atlantic Salmon Commission.
Sec. 10813. Pine Point School.
Sec. 10814. 7-month extension of chapter 12 of title 11 of the United 
          States Code.
Sec. 10815. Practices involving nonambulatory livestock.
Sec. 10816. Country of origin labeling.

              Subtitle J--Miscellaneous Studies and Reports

Sec. 10901. Report on specialty crop purchases.
Sec. 10902. Report on pouched and canned salmon.
Sec. 10903. Study on updating yields.
Sec. 10904. Report on effect of farm program payments.
Sec. 10905. Chiloquin Dam fish passage feasibility study.
Sec. 10906. Report on geographically disadvantaged farmers and ranchers.
Sec. 10907. Studies on agricultural research and technology.
Sec. 10908. Report on tobacco settlement agreement.
Sec. 10909. Report on sale and use of pesticides for agricultural uses.
Sec. 10910. Review of operation of agricultural and natural resource 
          programs on tribal trust land.

                      TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

    In this title (other than subtitle C):
        (1) Agricultural act of 1949.--The term ``Agricultural Act of 
    1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), 
    as in effect prior to the suspensions under section 171 of the 
    Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
    7301).
        (2) Base acres.--The term ``base acres'', with respect to a 
    covered commodity on a farm, means the number of acres established 
    under section 1101 with respect to the covered commodity on the 
    election made by the owner of the farm under subsection (a) of such 
    section.
        (3) Counter-cyclical payment.--The term ``counter-cyclical 
    payment'' means a payment made to producers on a farm under section 
    1104.
        (4) Covered commodity.--The term ``covered commodity'' means 
    wheat, corn, grain sorghum, barley, oats, upland cotton, rice, 
    soybeans, and other oilseeds.
        (5) Direct payment.--The term ``direct payment'' means a 
    payment made to producers on a farm under section 1103.
        (6) Effective price.--The term ``effective price'', with 
    respect to a covered commodity for a crop year, means the price 
    calculated by the Secretary under section 1104 to determine whether 
    counter-cyclical payments are required to be made for that crop 
    year.
        (7) Extra long staple cotton.--The term ``extra long staple 
    cotton'' means cotton that--
            (A) is produced from pure strain varieties of the 
        Barbadense species or any hybrid thereof, or other similar 
        types of extra long staple cotton, designated by the Secretary, 
        having characteristics needed for various end uses for which 
        United States upland cotton is not suitable and grown in 
        irrigated cotton-growing regions of the United States 
        designated by the Secretary or other areas designated by the 
        Secretary as suitable for the production of the varieties or 
        types; and
            (B) is ginned on a roller-type gin or, if authorized by the 
        Secretary, ginned on another type gin for experimental 
        purposes.
        (8) Loan commodity.--The term `loan commodity' means wheat, 
    corn, grain sorghum, barley, oats, upland cotton, extra long staple 
    cotton, rice, soybeans, other oilseeds, wool, mohair, honey, dry 
    peas, lentils, and small chickpeas.
        (9) Other oilseed.--The term ``other oilseed'' means a crop of 
    sunflower seed, rapeseed, canola, safflower, flaxseed, mustard 
    seed, or, if designated by the Secretary, another oilseed.
        (10) Payment acres.--The term ``payment acres'' means 85 
    percent of the base acres of a covered commodity on a farm, as 
    established under section 1101, on which direct payments and 
    counter-cyclical payments are made.
        (11) Payment yield.--
            (A) In general.--The term ``payment yield'' means the yield 
        established under section 1102 for a farm for a covered 
        commodity.
            (B) Updated payment yield.--The term ``updated payment 
        yield'' means the payment yield elected by the owner of a farm 
        under section 1102(e) to be used in calculating the counter-
        cyclical payments for the farm.
        (12) Producer.--The term ``producer'' means an owner, operator, 
    landlord, tenant, or sharecropper that shares in the risk of 
    producing a crop and is entitled to share in the crop available for 
    marketing from the farm, or would have shared had the crop been 
    produced. In determining whether a grower of hybrid seed is a 
    producer, the Secretary shall not take into consideration the 
    existence of a hybrid seed contract and shall ensure that program 
    requirements do not adversely affect the ability of the grower to 
    receive a payment under this title.
        (13) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (14) State.--The term ``State'' means each of the several 
    States of the United States, the District of Columbia, the 
    Commonwealth of Puerto Rico, and any other territory or possession 
    of the United States.
        (15) Target price.--The term ``target price'' means the price 
    per bushel (or other appropriate unit in the case of upland cotton, 
    rice, and other oilseeds) of a covered commodity used to determine 
    the payment rate for counter-cyclical payments.
        (16) United states.--The term ``United States'', when used in a 
    geographical sense, means all of the States.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.

    (a) Election by Owner of Base Acres Calculation Method.--
        (1) Alternative calculation methods.--For the purpose of making 
    direct payments and counter-cyclical payments with respect to a 
    farm, the Secretary shall give an owner of the farm an opportunity 
    to elect 1 of the following as the method by which the base acres 
    of all covered commodities on the farm are to be determined:
            (A) Subject to paragraphs (3) and (4), the 4-year average 
        of the following:
                (i) Acreage planted on the farm to covered commodities 
            for harvest, grazing, haying, silage, or other similar 
            purposes for the 1998 through 2001 crop years.
                (ii) Any acreage on the farm that the producers were 
            prevented from planting during the 1998 through 2001 crop 
            years to covered commodities because of drought, flood, or 
            other natural disaster, or other condition beyond the 
            control of the producers, as determined by the Secretary.
            (B) Subject to paragraph (3), the sum of the following:
                (i) The contract acreage (as defined in section 102 of 
            the Federal Agriculture Improvement and Reform Act of 1996 
            (7 U.S.C. 7202)) used by the Secretary to calculate the 
            fiscal year 2002 payment authorized under section 114 of 
            such Act (7 U.S.C. 7214) for the covered commodities on the 
            farm.
                (ii) The 4-year average of eligible oilseed acreage on 
            the farm for the 1998 through 2001 crop years, as 
            determined by the Secretary under paragraph (2).
        (2) Eligible oilseed acreage.--
            (A) Calculation.--For purposes of paragraph (1)(B)(ii), the 
        eligible acreage for each oilseed on a farm during each of the 
        1998 through 2001 crop years shall be determined in the manner 
        provided in paragraph (1)(A), except that the total acreage for 
        all oilseeds on the farm for a crop year may not exceed the 
        difference between--
                (i) the total acreage determined under paragraph (1)(A) 
            for all covered commodities for that crop year; and
                (ii) the total contract acreage determined under 
            paragraph (1)(B)(i).
            (B) Effect of negative number.--If the subtraction 
        performed under subparagraph (A) results in a negative number, 
        the eligible oilseed acreage on the farm for that crop year 
        shall be zero for purposes of determining the 4-year average.
            (C) Offset of contract acreage.--The owner of a farm may 
        increase the eligible acreage for an oilseed on the farm by 
        reducing the contract acreage determined under paragraph 
        (1)(B)(i) for 1 or more covered commodities on an acre-for-acre 
        basis, except that the total base acreage for each oilseed on 
        the farm may not exceed the 4-year average of each oilseed 
        determined under paragraph (1)(B)(ii).
        (3) Inclusion of all 4 years in average.--For the purpose of 
    determining a 4-year acreage average under this subsection for a 
    farm, the Secretary shall not exclude any crop year in which a 
    covered commodity was not planted.
        (4) Treatment of multiple planting or prevented planting.--For 
    the purpose of determining under paragraph (1)(A) the acreage on a 
    farm that producers planted or were prevented from planting during 
    the 1998 through 2001 crop years to covered commodities, if the 
    acreage that was planted or prevented from being planted was 
    devoted to another covered commodity in the same crop year (other 
    than a covered commodity produced under an established practice of 
    double cropping), the owner may elect the commodity to be used for 
    that crop year in determining the 4-year average, but may not 
    include both the initial commodity and the subsequent commodity.
    (b) Single Election; Time for Election.--
        (1) Notice of election opportunity.--As soon as practicable 
    after the date of enactment of this Act, the Secretary shall 
    provide notice to owners of farms regarding their opportunity to 
    make the election described in subsection (a). The notice shall 
    include the following:
            (A) Notice that the opportunity of an owner to make the 
        election is being provided only once.
            (B) Information regarding the manner in which the election 
        must be made and the time periods and manner in which notice of 
        the election must be submitted to the Secretary.
        (2) Election deadline.--Within the time period and in the 
    manner prescribed pursuant to paragraph (1), the owner of a farm 
    shall submit to the Secretary notice of the election made by the 
    owner under subsection (a).
    (c) Effect of Failure To Make Election.--If the owner of a farm 
fails to make the election under subsection (a) or fails to timely 
notify the Secretary of the election made, as required by subsection 
(b), the owner shall be deemed to have made the election described in 
subsection (a)(1)(B) to determine base acres for all covered 
commodities on the farm.
    (d) Application of Election to All Covered Commodities.--The 
election made under subparagraph (A) or (B) of subsection (a)(1), or 
deemed to be made under subsection (c), with respect to a farm shall 
apply to all of the covered commodities on the farm.
    (e) Treatment of Conservation Reserve Contract Acreage.--
        (1) In general.--The Secretary shall provide for an adjustment, 
    as appropriate, in the base acres for covered commodities for a 
    farm whenever either of the following circumstances occurs:
            (A) A conservation reserve contract entered into under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        with respect to the farm expires or is voluntarily terminated.
            (B) Cropland is released from coverage under a conservation 
        reserve contract by the Secretary.
        (2) Special payment rules.--For the crop year in which a base 
    acres adjustment under paragraph (1) is first made, the owner of 
    the farm shall elect to receive either direct payments and counter-
    cyclical payments with respect to the acreage added to the farm 
    under this subsection or a prorated payment under the conservation 
    reserve contract, but not both.
    (f) Payment Acres.--The payment acres for a covered commodity on a 
farm shall be equal to 85 percent of the base acres for the covered 
commodity.
    (g) Prevention of Excess Base Acres.--
        (1) Required reduction.--If the sum of the base acres for a 
    farm, together with the acreage described in paragraph (2), exceeds 
    the actual cropland acreage of the farm, the Secretary shall reduce 
    the base acres for 1 or more covered commodities for the farm or 
    the base acres for peanuts for the farm under subtitle C so that 
    the sum of the base acres and acreage described in paragraph (2) 
    does not exceed the actual cropland acreage of the farm.
        (2) Other acreage.--For purposes of paragraph (1), the 
    Secretary shall include the following:
            (A) Any base acres for peanuts for the farm under subtitle 
        C.
            (B) Any acreage on the farm enrolled in the conservation 
        reserve program or wetlands reserve program under chapter 1 of 
        subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3830 et seq.).
            (C) Any other acreage on the farm enrolled in a 
        conservation program for which payments are made in exchange 
        for not producing an agricultural commodity on the acreage.
        (3) Selection of acres.--The Secretary shall give the owner of 
    the farm the opportunity to select the base acres or the base acres 
    for peanuts for the farm under subtitle C against which the 
    reduction required by paragraph (1) will be made.
        (4) Exception for double-cropped acreage.--In applying 
    paragraph (1), the Secretary shall make an exception in the case of 
    double cropping, as determined by the Secretary.
        (5) Coordinated application of requirements.--The Secretary 
    shall take into account section 1302(f) when applying the 
    requirements of this subsection.
    (h) Permanent Reduction in Base Acres.--The owner of a farm may 
reduce, at any time, the base acres for any covered commodity for the 
farm. The reduction shall be permanent and made in the manner 
prescribed by the Secretary.

SEC. 1102. ESTABLISHMENT OF PAYMENT YIELD.

    (a) Establishment and Purpose.--For the purpose of making direct 
payments and counter-cyclical payments under this subtitle, the 
Secretary shall provide for the establishment of a payment yield for 
each farm for each covered commodity in accordance with this section.
    (b) Use of Farm Program Payment Yield.--Except as otherwise 
provided in this section, the payment yield for each of the 2002 
through 2007 crops of a covered commodity for a farm shall be the farm 
program payment yield established for the 1995 crop of the covered 
commodity under section 505 of the Agricultural Act of 1949 (7 U.S.C. 
1465), as adjusted by the Secretary to account for any additional yield 
payments made with respect to that crop under section 505(b)(2) of that 
Act.
    (c) Farms Without Farm Program Payment Yield.--In the case of a 
farm for which a farm program payment yield is unavailable for a 
covered commodity (other than soybeans or other oilseeds), the 
Secretary shall establish an appropriate payment yield for the covered 
commodity on the farm taking into consideration the farm program 
payment yields applicable to the commodity under subsection (b) for 
similar farms, but before the yields for the similar farms are updated 
as provided in subsection (e).
    (d) Payment Yields for Oilseeds.--
        (1) Determination of average yield.--In the case of soybeans 
    and each other oilseed, the Secretary shall determine the average 
    yield per planted acre for the oilseed on a farm for the 1998 
    through 2001 crop years, excluding any crop year in which the 
    acreage planted to the oilseed was zero.
        (2) Adjustment for payment yield.--The payment yield for a farm 
    for an oilseed shall be equal to the product of the following:
            (A) The average yield for the oilseed determined under 
        paragraph (1).
            (B) The ratio resulting from dividing the national average 
        yield for the oilseed for the 1981 through 1985 crops by the 
        national average yield for the oilseed for the 1998 through 
        2001 crops.
        (3) Use of partial county average yield.--If the yield per 
    planted acre for a crop of an oilseed for a farm for any of the 
    1998 through 2001 crop years was less than 75 percent of the county 
    yield for that oilseed, the Secretary shall assign a yield for that 
    crop year equal to 75 percent of the county yield for the purpose 
    of determining the average under paragraph (1).
    (e) Opportunity to Partially Update Yields Used to Determine 
Counter-Cyclical Payments.--
        (1) Election to update.--If the owner of a farm elects to use 
    the base acres calculation method described in section 
    1101(a)(1)(A), the owner shall also have a 1-time opportunity to 
    elect to use 1 of the methods described in paragraph (3) to 
    partially update the payment yields that would otherwise be used in 
    calculating any counter-cyclical payments for covered commodities 
    on the farm.
        (2) Time for election.--The election under paragraph (1) shall 
    be made at the same time and in the same manner as the Secretary 
    prescribes for the election required under section 1101.
        (3) Methods of updating yields.--If the owner of a farm elects 
    to update yields under this subsection, the payment yield for a 
    covered commodity on the farm, for the purpose of calculating 
    counter-cyclical payments only, shall be equal to the yield 
    determined using either of the following:
            (A) The sum of the following:
                (i) The payment yield applicable for direct payments 
            for the covered commodity on the farm.
                (ii) 70 percent of the difference between--

                    (I) the average yield per planted acre for the crop 
                of the covered commodity on the farm for the 1998 
                through 2001 crop years, as determined by the 
                Secretary, excluding any crop year in which the acreage 
                planted to the crop of the covered commodity was zero; 
                and
                    (II) the payment yield applicable for direct 
                payments for the covered commodity on the farm.

            (B) 93.5 percent of the average of the yield per planted 
        acre for the crop of the covered commodity on the farm for the 
        1998 through 2001 crop years, as determined by the Secretary, 
        excluding any crop year in which the acreage planted to the 
        crop of the covered commodity was zero.
        (4) Use of partial county average yield.--If the yield per 
    planted acre for a crop of the covered commodity for a farm for any 
    of the 1998 through 2001 crop years was less than 75 percent of the 
    county yield for that commodity, the Secretary shall assign a yield 
    for that crop year equal to 75 percent of the county yield for the 
    purpose of determining the average yield under paragraph (3).
        (5) Application of election and method to all covered 
    commodities.--The owner of a farm may not elect the method 
    described in paragraph (3)(A) for 1 covered commodity on the farm 
    and the method described in paragraph (3)(B) for other covered 
    commodities on the farm.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--For each of the 2002 through 2007 crop years 
of each covered commodity, the Secretary shall make direct payments to 
producers on farms for which payment yields and base acres are 
established.
    (b) Payment Rate.--The payment rates used to make direct payments 
with respect to covered commodities for a crop year are as follows:
        (1) Wheat, $0.52 per bushel.
        (2) Corn, $0.28 per bushel.
        (3) Grain sorghum, $0.35 per bushel.
        (4) Barley, $0.24 per bushel.
        (5) Oats, $0.024 per bushel.
        (6) Upland cotton, $0.0667 per pound.
        (7) Rice, $2.35 per hundredweight.
        (8) Soybeans, $0.44 per bushel.
        (9) Other oilseeds, $0.0080 per pound.
    (c) Payment Amount.--The amount of the direct payment to be paid to 
the producers on a farm for a covered commodity for a crop year shall 
be equal to the product of the following:
        (1) The payment rate specified in subsection (b).
        (2) The payment acres of the covered commodity on the farm.
        (3) The payment yield for the covered commodity for the farm.
    (d) Time for Payment.--
        (1) In general.--The Secretary shall make direct payments--
            (A) in the case of the 2002 crop year, as soon as 
        practicable after the date of enactment of this Act; and
            (B) in the case of each of the 2003 through 2007 crop 
        years, not before October 1 of the calendar year in which the 
        crop of the covered commodity is harvested.
        (2) Advance payments.--At the option of the producers on a 
    farm, up to 50 percent of the direct payment for a covered 
    commodity for any of the 2003 through 2007 crop years shall be paid 
    to the producers in advance. The producers shall select the month 
    within which the advance payment for a crop year will be made. The 
    month selected may be any month during the period beginning on 
    December 1 of the calendar year before the calendar year in which 
    the crop of the covered commodity is harvested through the month 
    within which the direct payment would otherwise be made. The 
    producers may change the selected month for a subsequent advance 
    payment by providing advance notice to the Secretary.
        (3) Repayment of advance payments.--If a producer on a farm 
    that receives an advance direct payment for a crop year ceases to 
    be a producer on that farm, or the extent to which the producer 
    shares in the risk of producing a crop changes, before the date the 
    remainder of the direct payment is made, the producer shall be 
    responsible for repaying the Secretary the applicable amount of the 
    advance payment, as determined by the Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--For each of the 2002 through 2007 crop years 
for each covered commodity, the Secretary shall make counter-cyclical 
payments to producers on farms for which payment yields and base acres 
are established with respect to the covered commodity if the Secretary 
determines that the effective price for the covered commodity is less 
than the target price for the covered commodity.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for a covered commodity is equal to the sum of the following:
        (1) The higher of the following:
            (A) The national average market price received by producers 
        during the 12-month marketing year for the covered commodity, 
        as determined by the Secretary.
            (B) The national average loan rate for a marketing 
        assistance loan for the covered commodity in effect for the 
        applicable period under subtitle B.
        (2) The payment rate in effect for the covered commodity under 
    section 1103 for the purpose of making direct payments with respect 
    to the covered commodity.
    (c) Target Price.--
        (1) 2002 and 2003 crop years.--For purposes of the 2002 and 
    2003 crop years, the target prices for covered commodities shall be 
    as follows:
            (A) Wheat, $3.86 per bushel.
            (B) Corn, $2.60 per bushel.
            (C) Grain sorghum, $2.54 per bushel.
            (D) Barley, $2.21 per bushel.
            (E) Oats, $1.40 per bushel.
            (F) Upland cotton, $0.7240 per pound.
            (G) Rice, $10.50 per hundredweight.
            (H) Soybeans, $5.80 per bushel.
            (I) Other oilseeds, $0.0980 per pound.
        (2) Subsequent crop years.--For purposes of each of the 2004 
    through 2007 crop years, the target prices for covered commodities 
    shall be as follows:
            (A) Wheat, $3.92 per bushel.
            (B) Corn, $2.63 per bushel.
            (C) Grain sorghum, $2.57 per bushel.
            (D) Barley, $2.24 per bushel.
            (E) Oats, $1.44 per bushel.
            (F) Upland cotton, $0.7240 per pound.
            (G) Rice, $10.50 per hundredweight.
            (H) Soybeans, $5.80 per bushel.
            (I) Other oilseeds, $0.1010 per pound.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to a covered commodity for a crop year shall be 
equal to the difference between--
        (1) the target price for the covered commodity; and
        (2) the effective price determined under subsection (b) for the 
    covered commodity.
    (e) Payment Amount.--If counter-cyclical payments are required to 
be paid for any of the 2002 through 2007 crop years of a covered 
commodity, the amount of the counter-cyclical payment to be paid to the 
producers on a farm for that crop year shall be equal to the product of 
the following:
        (1) The payment rate specified in subsection (d).
        (2) The payment acres of the covered commodity on the farm.
        (3) The payment yield or updated payment yield for the farm, 
    depending on the election of the owner of the farm under section 
    1102.
    (f) Time for Payments.--
        (1) General rule.--If the Secretary determines under subsection 
    (a) that counter-cyclical payments are required to be made under 
    this section for the crop of a covered commodity, the Secretary 
    shall make the counter-cyclical payments for the crop as soon as 
    practicable after the end of the 12-month marketing year for the 
    covered commodity.
        (2) Availability of partial payments.--If, before the end of 
    the 12-month marketing year for a covered commodity, the Secretary 
    estimates that counter-cyclical payments will be required for the 
    crop of the covered commodity, the Secretary shall give producers 
    on a farm the option to receive partial payments of the counter-
    cyclical payment projected to be made for that crop of the covered 
    commodity.
        (3) Time for partial payments.--
            (A) 2002 through 2006 crop years.--When the Secretary makes 
        partial payments available under paragraph (2) for a covered 
        commodity for any of the 2002 through 2006 crop years--
                (i) the first partial payment for the crop year shall 
            be made not earlier than October 1, and, to the maximum 
            extent practicable, not later than October 31, of the 
            calendar year in which the crop of the covered commodity is 
            harvested;
                (ii) the second partial payment shall be made not 
            earlier than February 1 of the next calendar year; and
                (iii) the final partial payment shall be made as soon 
            as practicable after the end of the 12-month marketing year 
            for the covered commodity.
            (B) 2007 crop year.--When the Secretary makes partial 
        payments available for a covered commodity for the 2007 crop 
        year--
                (i) the first partial payment shall be made after 
            completion of the first 6 months of the marketing year for 
            the covered commodity; and
                (ii) the final partial payment shall be made as soon as 
            practicable after the end of the 12-month marketing year 
            for the covered commodity.
        (4) Amount of partial payments.--
            (A) 2002 through 2006 crop years.--
                (i) First partial payment.--For each of the 2002 
            through 2006 crop years of a covered commodity, the first 
            partial payment under paragraph (3) to the producers on a 
            farm may not exceed 35 percent of the projected counter-
            cyclical payment for the covered commodity for the crop 
            year, as determined by the Secretary.
                (ii) Second partial payment.--The second partial 
            payment for a covered commodity for a crop year may not 
            exceed the difference between--

                    (I) 70 percent of the projected counter-cyclical 
                payment (including any revision thereof) for the crop 
                of the covered commodity; and
                    (II) the amount of the payment made under clause 
                (i).

                (iii) Final payment.--The final payment for a covered 
            commodity for a crop year shall be equal to the difference 
            between--

                    (I) the actual counter-cyclical payment to be made 
                to the producers for the covered commodity for that 
                crop year; and
                    (II) the amount of the partial payments made to the 
                producers under clauses (i) and (ii) for that crop 
                year.

            (B) 2007 crop year.--
                (i) First partial payment.--For the 2007 crop year, the 
            first partial payment under paragraph (3) to the producers 
            on a farm may not exceed 40 percent of the projected 
            counter-cyclical payment for the covered commodity for the 
            crop year, as determined by the Secretary.
                (ii) Final payment.--The final payment for the 2007 
            crop year shall be equal to the difference between--

                    (I) the actual counter-cyclical payment to be made 
                to the producers for the covered commodity for that 
                crop year; and
                    (II) the amount of the partial payment made to the 
                producers under clause (i).

        (5) Repayment.--The producers on a farm that receive a partial 
    payment under this subsection for a crop year shall repay to the 
    Secretary the amount, if any, by which the total of the partial 
    payments exceed the actual counter-cyclical payment to be made for 
    the covered commodity for that crop year.

SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
              DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
        (1) Requirements.--Before the producers on a farm may receive 
    direct payments or counter-cyclical payments with respect to the 
    farm, the producers shall agree, during the crop year for which the 
    payments are made and in exchange for the payments--
            (A) to comply with applicable conservation requirements 
        under subtitle B of title XII of the Food Security Act of 1985 
        (16 U.S.C. 3811 et seq.);
            (B) to comply with applicable wetland protection 
        requirements under subtitle C of title XII of the Act (16 
        U.S.C. 3821 et seq.);
            (C) to comply with the planting flexibility requirements of 
        section 1106;
            (D) to use the land on the farm, in a quantity equal to the 
        attributable base acres for the farm and any base acres for 
        peanuts for the farm under subtitle C for an agricultural or 
        conserving use, and not for a nonagricultural commercial or 
        industrial use, as determined by the Secretary; and
            (E) to effectively control noxious weeds and otherwise 
        maintain the land in accordance with sound agricultural 
        practices, as determined by the Secretary, if the agricultural 
        or conserving use involves the noncultivation of any portion of 
        the land referred to in subparagraph (D).
        (2) Compliance.--The Secretary may issue such rules as the 
    Secretary considers necessary to ensure producer compliance with 
    the requirements of paragraph (1).
        (3) Modification.--At the request of the transferee or owner, 
    the Secretary may modify the requirements of this subsection if the 
    modifications are consistent with the objectives of this 
    subsection, as determined by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
        (1) Termination.--Except as provided in paragraph (2), a 
    transfer of (or change in) the interest of the producers on a farm 
    in base acres for which direct payments or counter-cyclical 
    payments are made shall result in the termination of the payments 
    with respect to the base acres, unless the transferee or owner of 
    the acreage agrees to assume all obligations under subsection (a). 
    The termination shall take effect on the date determined by the 
    Secretary.
        (2) Exception.--If a producer entitled to a direct payment or 
    counter-cyclical payment dies, becomes incompetent, or is otherwise 
    unable to receive the payment, the Secretary shall make the 
    payment, in accordance with rules issued by the Secretary.
    (c) Acreage Reports.--As a condition on the receipt of any benefits 
under this subtitle or subtitle B, the Secretary shall require 
producers on a farm to submit to the Secretary annual acreage reports 
with respect to all cropland on the farm.
    (d) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments and counter-cyclical payments among the 
producers on a farm on a fair and equitable basis.

SEC. 1106. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm.
    (b) Limitations Regarding Certain Commodities.--
        (1) General limitation.--The planting of an agricultural 
    commodity specified in paragraph (3) shall be prohibited on base 
    acres unless the commodity, if planted, is destroyed before 
    harvest.
        (2) Treatment of trees and other perennials.--The planting of 
    an agricultural commodity specified in paragraph (3) that is 
    produced on a tree or other perennial plant shall be prohibited on 
    base acres.
        (3) Covered agricultural commodities.--Paragraphs (1) and (2) 
    apply to the following agricultural commodities:
            (A) Fruits.
            (B) Vegetables (other than lentils, mung beans, and dry 
        peas).
            (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not 
limit the planting of an agricultural commodity specified in paragraph 
(3) of that subsection--
        (1) in any region in which there is a history of double-
    cropping of covered commodities with agricultural commodities 
    specified in subsection (b)(3), as determined by the Secretary, in 
    which case the double-cropping shall be permitted;
        (2) on a farm that the Secretary determines has a history of 
    planting agricultural commodities specified in subsection (b)(3) on 
    base acres, except that direct payments and counter-cyclical 
    payments shall be reduced by an acre for each acre planted to such 
    an agricultural commodity; or
        (3) by the producers on a farm that the Secretary determines 
    has an established planting history of a specific agricultural 
    commodity specified in subsection (b)(3), except that--
            (A) the quantity planted may not exceed the average annual 
        planting history of such agricultural commodity by the 
        producers on the farm in the 1991 through 1995 or 1998 through 
        2001 crop years (excluding any crop year in which no plantings 
        were made), as determined by the Secretary; and
            (B) direct payments and counter-cyclical payments shall be 
        reduced by an acre for each acre planted to such agricultural 
        commodity.
    (d) Special Rule for 2002 Crop Year.--For the 2002 crop year only, 
if the calculation of base acres under section 1101(a) results in total 
base acres for a farm in excess of the contract acreage (as defined in 
section 102 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7202)) for the farm used to calculate the fiscal year 
2002 payment authorized under section 114 of such Act (7 U.S.C. 7214), 
paragraphs (1) and (2) of subsection (b) shall not limit the harvesting 
of an agricultural commodity specified in paragraph (3) of that 
subsection on the excess base acres, except that direct payments and 
counter-cyclical payments for the 2002 crop year shall be reduced by an 
acre for each acre of the excess base acres planted to such an 
agricultural commodity.

SEC. 1107. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION 
              FLEXIBILITY CONTRACTS.

    (a) Termination of Superseded Payment Authority.--Notwithstanding 
section 113(a)(7) of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the 
Secretary shall not make payments for fiscal year 2002 after the date 
of enactment of this Act under a production flexibility contract 
entered into under section 111 of that Act (7 U.S.C. 7211) unless 
requested by the producer that is a party to the contract.
    (b) Contract Payments Made Before Enactment.--If a producer 
receives all or any portion of the payment authorized for fiscal year 
2002 under a production flexibility contract, the Secretary shall 
reduce the amount of the direct payment otherwise due the producer for 
the 2002 crop year under section 1103 by the amount of the fiscal year 
2002 payment received by the producer under the production flexibility 
contract.

SEC. 1108. PERIOD OF EFFECTIVENESS.

    This subtitle shall be effective beginning with the 2002 crop year 
of each covered commodity through the 2007 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
        (1) Availability.--For each of the 2002 through 2007 crops of 
    each loan commodity, the Secretary shall make available to 
    producers on a farm nonrecourse marketing assistance loans for loan 
    commodities produced on the farm.
        (2) Terms and conditions.--The marketing assistance loans shall 
    be made under terms and conditions that are prescribed by the 
    Secretary and at the loan rate established under section 1202 for 
    the loan commodity.
    (b) Eligible Production.--The producers on a farm shall be eligible 
for a marketing assistance loan under subsection (a) for any quantity 
of a loan commodity produced on the farm.
    (c) Treatment of Certain Commingled Commodities.--In carrying out 
this subtitle, the Secretary shall make loans to producers on a farm 
that would be eligible to obtain a marketing assistance loan, but for 
the fact the loan commodity owned by the producers on the farm 
commingled with loan commodities of other producers in facilities 
unlicensed for the storage of agricultural commodities by the Secretary 
or a State licensing authority, if the producers obtaining the loan 
agree to immediately redeem the loan collateral in accordance with 
section 166 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7286).
    (d) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (e) Termination of Superseded Loan Authority.--Notwithstanding 
section 131 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not 
be made for the 2002 crop of loan commodities under subtitle C of title 
I of such Act.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) 2002 and 2003 Crop Years.--For purposes of the 2002 and 2003 
crop years, the loan rate for a marketing assistance loan under section 
1201 for a loan commodity shall be equal to the following:
        (1) In the case of wheat, $2.80 per bushel.
        (2) In the case of corn, $1.98 per bushel.
        (3) In the case of grain sorghum, $1.98 per bushel.
        (4) In the case of barley, $1.88 per bushel.
        (5) In the case of oats, $1.35 per bushel.
        (6) In the case of upland cotton, $0.52 per pound.
        (7) In the case of extra long staple cotton, $0.7977 per pound.
        (8) In the case of rice, $6.50 per hundredweight.
        (9) In the case of soybeans, $5.00 per bushel.
        (10) In the case of other oilseeds, $0.0960 per pound.
        (11) In the case of graded wool, $1.00 per pound.
        (12) In the case of nongraded wool, $0.40 per pound.
        (13) In the case of mohair, $4.20 per pound.
        (14) In the case of honey, $0.60 per pound.
        (15) In the case of dry peas, $6.33 per hundredweight.
        (16) In the case of lentils, $11.94 per hundredweight.
        (17) In the case of small chickpeas, $7.56 per hundredweight.
    (b) 2004 Through 2007 crop Years.--For purposes of the 2004 through 
2007 crop years, the loan rate for a marketing assistance loan under 
section 1201 for a loan commodity shall be equal to the following:
        (1) In the case of wheat, $2.75 per bushel.
        (2) In the case of corn, $1.95 per bushel.
        (3) In the case of grain sorghum, $1.95 per bushel.
        (4) In the case of barley, $1.85 per bushel.
        (5) In the case of oats, $1.33 per bushel.
        (6) In the case of upland cotton, $0.52 per pound.
        (7) In the case of extra long staple cotton, $0.7977 per pound.
        (8) In the case of rice, $6.50 per hundredweight.
        (9) In the case of soybeans, $5.00 per bushel.
        (10) In the case of other oilseeds, $0.0930 per pound.
        (11) In the case of graded wool, $1.00 per pound.
        (12) In the case of nongraded wool, $0.40 per pound.
        (13) In the case of mohair, $4.20 per pound.
        (14) In the case of honey, $0.60 per pound.
        (15) In the case of dry peas, $6.22 per hundredweight.
        (16) In the case of lentils, $11.72 per hundredweight.
        (17) In the case of small chickpeas, $7.43 per hundredweight.

SEC. 1203. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity, a marketing 
assistance loan under section 1201 shall have a term of 9 months 
beginning on the first day of the first month after the month in which 
the loan is made.
    (b) Extensions Prohibited.--The Secretary may not extend the term 
of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule.--The Secretary shall permit the producers on a 
farm to repay a marketing assistance loan under section 1201 for a loan 
commodity (other than upland cotton, rice, and extra long staple 
cotton) at a rate that is the lesser of--
        (1) the loan rate established for the commodity under section 
    1202, plus interest (determined in accordance with section 163 of 
    the Federal Agriculture Improvement and Reform Act of 1996 (7 
    U.S.C. 7283)); or
        (2) a rate that the Secretary determines will--
            (A) minimize potential loan forfeitures;
            (B) minimize the accumulation of stocks of the commodity by 
        the Federal Government;
            (C) minimize the cost incurred by the Federal Government in 
        storing the commodity;
            (D) allow the commodity produced in the United States to be 
        marketed freely and competitively, both domestically and 
        internationally; and
            (E) minimize discrepancies in marketing loan benefits 
        across State boundaries and across county boundaries.
    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary 
shall permit producers to repay a marketing assistance loan under 
section 1201 for upland cotton and rice at a rate that is the lesser 
of--
        (1) the loan rate established for the commodity under section 
    1202, plus interest (determined in accordance with section 163 of 
    the Federal Agriculture Improvement and Reform Act of 1996 (7 
    U.S.C. 7283)); or
        (2) the prevailing world market price for the commodity 
    (adjusted to United States quality and location), as determined by 
    the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 1202, plus 
interest (determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 1207, the Secretary shall prescribe by regulation--
        (1) a formula to determine the prevailing world market price 
    for upland cotton and rice, adjusted to United States quality and 
    location; and
        (2) a mechanism by which the Secretary shall announce 
    periodically the prevailing world market price for upland cotton 
    and rice.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
        (1) In general.--During the period beginning on the date of the 
    enactment of this Act through July 31, 2008, the prevailing world 
    market price for upland cotton (adjusted to United States quality 
    and location) established under subsection (d) shall be further 
    adjusted if--
            (A) the adjusted prevailing world market price is less than 
        115 percent of the loan rate for upland cotton established 
        under section 1202, as determined by the Secretary; and
            (B) the Friday through Thursday average price quotation for 
        the lowest-priced United States growth as quoted for Middling 
        (M) 1\3/32\-inch cotton delivered C.I.F. Northern Europe is 
        greater than the Friday through Thursday average price of the 5 
        lowest-priced growths of upland cotton, as quoted for Middling 
        (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
        (referred to in this section as the ``Northern Europe price'').
        (2) Further adjustment.--Except as provided in paragraph (3), 
    the adjusted prevailing world market price for upland cotton shall 
    be further adjusted on the basis of some or all of the following 
    data, as available:
            (A) The United States share of world exports.
            (B) The current level of cotton export sales and cotton 
        export shipments.
            (C) Other data determined by the Secretary to be relevant 
        in establishing an accurate prevailing world market price for 
        upland cotton (adjusted to United States quality and location).
        (3) Limitation on further adjustment.--The adjustment under 
    paragraph (2) may not exceed the difference between--
            (A) the Friday through Thursday average price for the 
        lowest-priced United States growth as quoted for Middling 1\3/
        32\-inch cotton delivered C.I.F. Northern Europe; and
            (B) the Northern Europe price.
    (f) Good Faith Exception to Beneficial Interest Requirement.--For 
the 2001 crop year only, in the case of the producers on a farm that 
marketed or otherwise lost beneficial interest in a loan commodity for 
which a marketing assistance loan was made under section 131 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231) 
before repaying the loan, the Secretary shall permit the producers to 
repay the loan at the appropriate repayment rate that was in effect for 
the loan commodity under section 134 of that Act (7 U.S.C. 7234) on the 
date that the producers lost beneficial interest, as determined by the 
Secretary, if the Secretary determines the producers acted in good 
faith.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--
        (1) In general.--Except as provided in subsection (d), the 
    Secretary may make loan deficiency payments available to producers 
    on a farm that, although eligible to obtain a marketing assistance 
    loan under section 1201 with respect to a loan commodity, agree to 
    forgo obtaining the loan for the commodity in return for loan 
    deficiency payments under this section.
        (2) Unshorn pelts, hay, and silage.--Nongraded wool in the form 
    of unshorn pelts and hay and silage derived from a loan commodity 
    are not eligible for a marketing assistance loan under section 
    1201. However, effective for the 2002 through 2007 crop years, the 
    Secretary may make loan deficiency payments available under this 
    section to producers on a farm that produce unshorn pelts or hay 
    and silage derived from a loan commodity.
    (b) Computation.--A loan deficiency payment for a loan commodity or 
commodity referred to in subsection (a)(2) shall be computed by 
multiplying--
        (1) the payment rate determined under subsection (c) for the 
    commodity; by
        (2) the quantity of the commodity produced by the eligible 
    producers, excluding any quantity for which the producers obtain a 
    marketing assistance loan under section 1201.
    (c) Payment Rate.--
        (1) In general.--In the case of a loan commodity, the payment 
    rate shall be the amount by which--
            (A) the loan rate established under section 1202 for the 
        loan commodity; exceeds
            (B) the rate at which a marketing assistance loan for the 
        loan commodity may be repaid under section 1204.
        (2) Unshorn pelts.--In the case of unshorn pelts, the payment 
    rate shall be the amount by which--
            (A) the loan rate established under section 1202 for 
        ungraded wool; exceeds
            (B) the rate at which a marketing assistance loan for 
        ungraded wool may be repaid under section 1204.
        (3) hay and silage.--In the case of hay or silage derived from 
    a loan commodity, the payment rate shall be the amount by which--
            (A) the loan rate established under section 1202 for the 
        loan commodity from which the hay or silage is derived; exceeds
            (B) the rate at which a marketing assistance loan for the 
        loan commodity may be repaid under section 1204.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
    (e) Effective Date for Payment Rate Determination.--The Secretary 
shall determine the amount of the loan deficiency payment to be made 
under this section to the producers on a farm with respect to a 
quantity of a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection (c) as of the 
date the producers request the payment.
    (f) Special Loan Deficiency Payment Rules.--
        (1) First-time loan commodities.--For the 2002 crop of wool, 
    mohair, honey, dry peas, lentils and small chickpeas, in the case 
    of producers of such a crop that would be eligible for a loan 
    deficiency payment under this section except for the fact that the 
    producers lost beneficial interest in the crop prior to the date of 
    publication of the regulations implementing this section, the 
    producers shall be eligible for a loan deficiency payment as of the 
    date producers marketed or otherwise lost beneficial interest in 
    the crop, as determined by the Secretary.
        (2) 2001 crop year.--Section 135 of the Federal Agriculture 
    Improvement and Reform Act of 1996 (7 U.S.C. 7235) is amended--
            (A) in subsection (a)(2), by striking ``2000 crop year'' 
        and inserting ``2000 and 2001 crop years''; and
            (B) by adding at the end the following:
    ``(g) Effective Date for Payment Rate Determination.--For the 2001 
crop year, the Secretary shall determine the amount of the loan 
deficiency payment to be made under this section to the producers on a 
farm with respect to a quantity of a loan commodity using the payment 
rate in effect under subsection (c) as of the earlier of the following:
        ``(1) The date on which the producers marketed or otherwise 
    lost beneficial interest in the crop of the loan commodity, as 
    determined by the Secretary.
        ``(2) The date the producers requested the payment.''.

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    (a) Eligible Producers.--
        (1) In general.--Effective for the 2002 through 2007 crop 
    years, in the case of a producer that would be eligible for a loan 
    deficiency payment under section 1205 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.
        (2) Grazing of triticale acreage.--Effective for the 2002 
    through 2007 crop years, with respect to a producer on a farm that 
    uses acreage planted to triticale 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 triticale on that acreage.
    (b) Payment Amount.--
        (1) In general.--The amount of a payment made under this 
    section to a producer on a farm described in subsection (a)(1) 
    shall be equal to the amount determined by multiplying--
            (A) the loan deficiency payment rate determined under 
        section 1205(c) in effect, as of the date of the agreement, for 
        the county in which the farm is located; by
            (B) the payment quantity determined by multiplying--
                (i) 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
                (ii) the payment yield in effect for the calculation of 
            direct payments under subtitle A with respect to that loan 
            commodity on the farm or, in the case of a farm without a 
            payment yield for that loan commodity, an appropriate yield 
            established by the Secretary in a manner consistent with 
            section 1102(c).
        (2) Grazing of triticale acreage.--The amount of a payment made 
    under this section to a producer on a farm described in subsection 
    (a)(2) shall be equal to the amount determined by multiplying--
            (A) the loan deficiency payment rate determined under 
        section 1205(c) in effect for wheat, as of the date of the 
        agreement, for the county in which the farm is located; by
            (B) the payment quantity determined by multiplying--
                (i) the quantity of the grazed acreage on the farm with 
            respect to which the producer elects to forgo harvesting of 
            triticale; and
                (ii) the payment yield in effect for the calculation of 
            direct payments under subtitle A with respect to wheat on 
            the farm or, in the case of a farm without a payment yield 
            for wheat, an appropriate yield established by the 
            Secretary in a manner consistent with section 1102(c).
    (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 1205.
        (2) Availability.--The Secretary shall establish an 
    availability period for the payments authorized by this section. In 
    the case of wheat, barley, and oats, the availability period shall 
    be consistent with the availability period for the commodity 
    established by the Secretary for marketing assistance loans 
    authorized by this subtitle.
    (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop 
Assistance.--A 2002 through 2007 crop of wheat, barley, oats, or 
triticale planted on acreage that a producer elects, in the agreement 
required by subsection (a), to use for the grazing of livestock in lieu 
of any other harvesting of the crop shall not be eligible for an 
indemnity under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
or noninsured crop assistance under section 196 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
        (1) Issuance.--During the period beginning on the date of the 
    enactment of this Act through July 31, 2008, the Secretary shall 
    issue marketing certificates or cash payments, at the option of the 
    recipient, to domestic users and exporters for documented purchases 
    by domestic users and sales for export by exporters made in the 
    week following a consecutive 4-week period in which--
            (A) the Friday through Thursday average price quotation for 
        the lowest-priced United States growth, as quoted for Middling 
        (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
        exceeds the Northern Europe price by more than 1.25 cents per 
        pound; and
            (B) the prevailing world market price for upland cotton 
        (adjusted to United States quality and location) does not 
        exceed 134 percent of the loan rate for upland cotton 
        established under section 1202.
        (2) Value of certificates or payments.--The value of the 
    marketing certificates or cash payments shall be based on the 
    amount of the difference (reduced by 1.25 cents per pound) in the 
    prices during the fourth week of the consecutive 4-week period 
    multiplied by the quantity of upland cotton included in the 
    documented sales.
        (3) Administration of marketing certificates.--
            (A) Redemption, marketing, or exchange.--The Secretary 
        shall establish procedures for redeeming marketing certificates 
        for cash or marketing or exchange of the certificates for 
        agricultural commodities owned by the Commodity Credit 
        Corporation or pledged to the Commodity Credit Corporation as 
        collateral for a loan in such manner, and at such price levels, 
        as the Secretary determines will best effectuate the purposes 
        of cotton user marketing certificates, including enhancing the 
        competitiveness and marketability of United States cotton. Any 
        price restrictions that would otherwise apply to the 
        disposition of agricultural commodities by the Commodity Credit 
        Corporation shall not apply to the redemption of certificates 
        under this subsection.
            (B) Designation of commodities and products.--To the extent 
        practicable, the Secretary shall permit owners of certificates 
        to designate the commodities and products, including storage 
        sites, the owners would prefer to receive in exchange for 
        certificates
            (C) Transfers.--Marketing certificates issued to domestic 
        users and exporters of upland cotton may be transferred to 
        other persons in accordance with regulations issued by the 
        Secretary.
        (4) Delayed application of threshold.--Through July 31, 2006, 
    the Secretary shall make the calculations under paragraphs (1)(A) 
    and (2) without regard to the 1.25 cent threshold provided under 
    those paragraphs.
    (b) Special Import Quota.--
        (1) Establishment.--
            (A) In general.--The President shall carry out an import 
        quota program during the period beginning on the date of the 
        enactment of this Act through July 31, 2008, as provided in 
        this subsection.
            (B) Program requirements.--Except as provided in 
        subparagraph (C), whenever the Secretary determines and 
        announces that for any consecutive 4-week period, the Friday 
        through Thursday average price quotation for the lowest-priced 
        United States growth, as quoted for Middling (M) 1\3/32\-inch 
        cotton, delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificate issued under subsection (a), exceeds 
        the Northern Europe price by more than 1.25 cents per pound, 
        there shall immediately be in effect a special import quota.
            (C) Tight domestic supply.--During any month for which the 
        Secretary estimates the season-ending United States upland 
        cotton stocks-to-use ratio, as determined under subparagraph 
        (D), to be below 16 percent, the Secretary, in making the 
        determination under subparagraph (B), shall not adjust the 
        Friday through Thursday average price quotation for the lowest-
        priced United States growth, as quoted for Middling (M) 1\3/
        32\-inch cotton, delivered C.I.F. Northern Europe, for the 
        value of any certificates issued under subsection (a).
            (D) Season-ending united states stocks-to-use ratio.--For 
        the purposes of making estimates under subparagraph (C), the 
        Secretary shall, on a monthly basis, estimate and report the 
        season-ending United States upland cotton stocks-to-use ratio, 
        excluding projected raw cotton imports but including the 
        quantity of raw cotton that has been imported into the United 
        States during the marketing year.
            (E) Delayed application of threshold.--Through July 31, 
        2006, the Secretary shall make the calculation under 
        subparagraph (B) without regard to the 1.25 cent threshold 
        provided under that subparagraph.
        (2) Quantity.--The quota shall be equal to one week's 
    consumption of upland cotton by domestic mills at the seasonally 
    adjusted average rate of the most recent three months for which 
    data are available.
        (3) Application.--The quota shall apply to upland cotton 
    purchased not later than 90 days after the date of the Secretary's 
    announcement under paragraph (1) and entered into the United States 
    not later than 180 days after the date.
        (4) Overlap.--A special quota period may be established that 
    overlaps any existing quota period if required by paragraph (1), 
    except that a special quota period may not be established under 
    this subsection if a quota period has been established under 
    subsection (c).
        (5) Preferential tariff treatment.--The quantity under a 
    special import quota shall be considered to be an in-quota quantity 
    for purposes of--
            (A) section 213(d) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2703(d));
            (B) section 204 of the Andean Trade Preference Act (19 
        U.S.C. 3203);
            (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
        2463(d)); and
            (D) General Note 3(a)(iv) to the Harmonized Tariff 
        Schedule.
        (6) Definition.--In this subsection, the term ``special import 
    quota'' means a quantity of imports that is not subject to the 
    over-quota tariff rate of a tariff-rate quota.
        (7) Limitation.--The quantity of cotton entered into the United 
    States during any marketing year under the special import quota 
    established under this subsection may not exceed the equivalent of 
    5 week's consumption of upland cotton by domestic mills at the 
    seasonally adjusted average rate of the 3 months immediately 
    preceding the first special import quota established in any 
    marketing year.
    (c) Limited Global Import Quota for Upland Cotton.--
        (1) In general.--The President shall carry out an import quota 
    program that provides that whenever the Secretary determines and 
    announces that the average price of the base quality of upland 
    cotton, as determined by the Secretary, in the designated spot 
    markets for a month exceeded 130 percent of the average price of 
    such quality of cotton in the markets for the preceding 36 months, 
    notwithstanding any other provision of law, there shall immediately 
    be in effect a limited global import quota subject to the following 
    conditions:
            (A) Quantity.--The quantity of the quota shall be equal to 
        21 days of domestic mill consumption of upland cotton at the 
        seasonally adjusted average rate of the most recent 3 months 
        for which data are available.
            (B) Quantity if prior quota.--If a quota has been 
        established under this subsection during the preceding 12 
        months, the quantity of the quota next established under this 
        subsection shall be the smaller of 21 days of domestic mill 
        consumption calculated under subparagraph (A) or the quantity 
        required to increase the supply to 130 percent of the demand.
            (C) Preferential tariff treatment.--The quantity under a 
        limited global import quota shall be considered to be an in-
        quota quantity for purposes of--
                (i) section 213(d) of the Caribbean Basin Economic 
            Recovery Act (19 U.S.C. 2703(d));
                (ii) section 204 of the Andean Trade Preference Act (19 
            U.S.C. 3203);
                (iii) section 503(d) of the Trade Act of 1974 (19 
            U.S.C. 2463(d)); and
                (iv) General Note 3(a)(iv) to the Harmonized Tariff 
            Schedule.
            (D) Definitions.--In this subsection:
                (i) Supply.--The term ``supply'' means, using the 
            latest official data of the Bureau of the Census, the 
            Department of Agriculture, and the Department of the 
            Treasury--

                    (I) the carry-over of upland cotton at the 
                beginning of the marketing year (adjusted to 480-pound 
                bales) in which the quota is established;
                    (II) production of the current crop; and
                    (III) imports to the latest date available during 
                the marketing year.

                (ii) Demand.--The term ``demand'' means--

                    (I) the average seasonally adjusted annual rate of 
                domestic mill consumption during the most recent 3 
                months for which data are available; and
                    (II) the larger of--

                        (aa) average exports of upland cotton during 
                    the preceding 6 marketing years; or
                        (bb) cumulative exports of upland cotton plus 
                    outstanding export sales for the marketing year in 
                    which the quota is established.
                (iii) Limited global import quota.--The term ``limited 
            global import quota'' means a quantity of imports that is 
            not subject to the over-quota tariff rate of a tariff-rate 
            quota.
            (E) Quota entry period.--When a quota is established under 
        this subsection, cotton may be entered under the quota during 
        the 90-day period beginning on the date the quota is 
        established by the Secretary.
        (2) No overlap.--Notwithstanding paragraph (1), a quota period 
    may not be established that overlaps an existing quota period or a 
    special quota period established under subsection (b).

SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other provision 
of law, during the period beginning on the date of the enactment of 
this Act through July 31, 2008, the Secretary shall carry out a 
program--
        (1) to maintain and expand the domestic use of extra long 
    staple cotton produced in the United States;
        (2) to increase exports of extra long staple cotton produced in 
    the United States; and
        (3) to ensure that extra long staple cotton produced in the 
    United States remains competitive in world markets.
    (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
        (1) for a consecutive 4-week period, the world market price for 
    the lowest priced competing growth of extra long staple cotton 
    (adjusted to United States quality and location and for other 
    factors affecting the competitiveness of such cotton), as 
    determined by the Secretary, is below the prevailing United States 
    price for a competing growth of extra long staple cotton; and
        (2) the lowest priced competing growth of extra long staple 
    cotton (adjusted to United States quality and location and for 
    other factors affecting the competitiveness of such cotton), as 
    determined by the Secretary, is less than 134 percent of the loan 
    rate for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long staple 
cotton produced in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the program under 
this section.
    (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive 4-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive 4-week period.
    (e) Form of Payment.--Payments under this section shall be made 
through the issuance of cash or marketing certificates, at the option 
of eligible recipients of the payments.

SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
              AND SEED COTTON.

    (a) High Moisture Feed Grains.--
        (1) Recourse loans available.--For each of the 2002 through 
    2007 crops of corn and grain sorghum, the Secretary shall make 
    available recourse loans, as determined by the Secretary, to 
    producers on a farm that--
            (A) normally harvest all or a portion of their crop of corn 
        or grain sorghum in a high moisture state;
            (B) present--
                (i) certified scale tickets from an inspected, 
            certified commercial scale, including a licensed warehouse, 
            feedlot, feed mill, distillery, or other similar entity 
            approved by the Secretary, pursuant to regulations issued 
            by the Secretary; or
                (ii) field or other physical measurements of the 
            standing or stored crop in regions of the United States, as 
            determined by the Secretary, that do not have certified 
            commercial scales from which certified scale tickets may be 
            obtained within reasonable proximity of harvest operation;
            (C) certify that they were the owners of the feed grain at 
        the time of delivery to, and that the quantity to be placed 
        under loan under this subsection was in fact harvested on the 
        farm and delivered to, a feedlot, feed mill, or commercial or 
        on-farm high-moisture storage facility, or to a facility 
        maintained by the users of corn and grain sorghum in a high 
        moisture state; and
            (D) comply with deadlines established by the Secretary for 
        harvesting the corn or grain sorghum and submit applications 
        for loans under this subsection within deadlines established by 
        the Secretary.
        (2) Eligibility of acquired feed grains.--A loan under this 
    subsection shall be made on a quantity of corn or grain sorghum of 
    the same crop acquired by the producer equivalent to a quantity 
    determined by multiplying--
            (A) the acreage of the corn or grain sorghum in a high 
        moisture state harvested on the producer's farm; by
            (B) the lower of the farm program payment yield used to 
        make counter-cyclical payments under subtitle A or the actual 
        yield on a field, as determined by the Secretary, that is 
        similar to the field from which the corn or grain sorghum was 
        obtained.
        (3) High moisture state defined.--In this subsection, the term 
    ``high moisture state'' means corn or grain sorghum having a 
    moisture content in excess of Commodity Credit Corporation 
    standards for marketing assistance loans made by the Secretary 
    under section 1201.
    (b) Recourse Loans Available for Seed Cotton.--For each of the 2002 
through 2007 crops of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, as 
determined by the Secretary, on any production.
    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (determined in accordance with section 163 of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)).
    (d) Termination of Superseded Loan Authority.--Notwithstanding 
section 137 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002 
crop of corn, grain sorghum, and seed cotton under such section.

                          Subtitle C--Peanuts

SEC. 1301. DEFINITIONS.

    In this subtitle:
        (1) Base acres for peanuts.--The term ``base acres for 
    peanuts'' means the number of acres assigned to a farm by historic 
    peanut producers pursuant to section 1302(b).
        (2) Counter-cyclical payment.--The term ``counter-cyclical 
    payment'' means a payment made under section 1304.
        (3) Effective price.--The term ``effective price'' means the 
    price calculated by the Secretary under section 1304 for peanuts to 
    determine whether counter-cyclical payments are required to be made 
    under that section for a crop year.
        (4) Direct payment.--The term ``direct payment'' means a 
    payment made under section 1303.
        (5) Historic peanut producer.--The term ``historic peanut 
    producer'' means a producer on a farm in the United States that 
    produced or was prevented from planting peanuts during any or all 
    of the 1998 through 2001 crop years.
        (6) Payment acres.--The term ``payment acres'' means--
            (A) for the 2002 crop of peanuts, 85 percent of the average 
        acreage determined under section 1302(a)(2) for an historic 
        peanut producer; and
            (B) for the 2003 through 2007 crops of peanuts, 85 percent 
        of the base acres for peanuts assigned to a farm under section 
        1302(b).
        (7) Payment yield.--The term ``payment yield'' means the yield 
    assigned to a farm by historic peanut producers pursuant to section 
    1302(b).
        (8) Producer.--The term ``producer'' means an owner, operator, 
    landlord, tenant, or sharecropper that shares in the risk of 
    producing a crop on a farm and is entitled to share in the crop 
    available for marketing from the farm, or would have shared had the 
    crop been produced. In determining whether a grower of hybrid seed 
    is a producer, the Secretary shall not take into consideration the 
    existence of a hybrid seed contract and shall ensure that program 
    requirements do not adversely affect the ability of the grower to 
    receive a payment under this subtitle.
        (9) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (10) State.--The term ``State'' means each of the several 
    States of the United States, the District of Columbia, the 
    Commonwealth of Puerto Rico, and any other territory or possession 
    of the United States.
        (11) Target price.--The term ``target price'' means the price 
    per ton of peanuts used to determine the payment rate for counter-
    cyclical payments.
        (12) United states.--The term ``United States'', when used in a 
    geographical sense, means all of the States.

SEC. 1302. ESTABLISHMENT OF PAYMENT YIELD AND BASE ACRES FOR PEANUTS 
              FOR A FARM.

    (a) Average Yield and Acreage Average for Historic Peanut 
Producers.--
        (1) Determination of average yield.--
            (A) In general.--The Secretary shall determine, for each 
        historic peanut producer, the average yield for peanuts on each 
        farm on which the historic peanut producer planted peanuts for 
        harvest for the 1998 through 2001 crop years, excluding any 
        crop year in which the producer did not plant or was prevented 
        from planting peanuts.
            (B) Assigned yields.--For the purposes of determining the 
        4-year average yield for an historic peanut producer under this 
        paragraph, the historic peanut producer may elect to substitute 
        for a farm, for not more than 3 of the 1998 through 2001 crop 
        years in which the producer planted peanuts on the farm, the 
        average yield for peanuts produced in the county in which the 
        farm is located for the 1990 through 1997 crop years.
        (2) Determination of acreage average.--
            (A) In general.--The Secretary shall determine, for each 
        historic peanut producer, the 4-year average of the following:
                (i) Acreage planted to peanuts on each farm on which 
            the historic peanut producer planted peanuts for harvest 
            for the 1998 through 2001 crop years.
                (ii) Any acreage on each farm that the historic peanut 
            producer was prevented from planting to peanuts during the 
            1998 through 2001 crop years because of drought, flood, or 
            other natural disaster, or other condition beyond the 
            control of the historic peanut producer, as determined by 
            the Secretary.
            (B) Inclusion of all 4 years in average.--For the purposes 
        of determining the 4-year acreage average for an historic 
        peanut producer under this paragraph, the Secretary shall not 
        exclude any crop year in which the producer did not plant 
        peanuts.
            (C) Proportional shares.--If more than 1 historic peanut 
        producer shared in the risk of producing the crop on a farm, 
        the historic peanut producers shall receive their proportional 
        share of the number of acres planted (or prevented from being 
        planted) to peanuts for harvest on the farm based on the 
        sharing arrangement that was in effect among the producers for 
        the crop.
        (3) Time for determinations.--The Secretary shall make the 
    determinations required by this subsection as soon as practicable 
    after the date of enactment of this Act.
        (4) Special considerations.--In making the determinations 
    required by this subsection, the Secretary shall take into account 
    changes in the number, identity, or interest of producers sharing 
    in the risk of producing a peanut crop since the 1998 crop year, 
    including providing a method for the assignment of average acres 
    and average yield to a farm--
            (A) when an historic peanut producer is no longer living;
            (B) when an entity composed of historic peanut producers 
        has been dissolved; or
            (C) in other appropriate situations, as determined by the 
        Secretary.
    (b) Assignment of Average Yields and Average Acreage to Farms.--
        (1) Assignment by historic peanut producers.--The Secretary 
    shall give each historic peanut producer an opportunity to assign 
    the average peanut yield and average acreage determined under 
    subsection (a) for each farm of the historic peanut producer to 
    cropland on that farm or another farm in the same State or a 
    contiguous State.
        (2) Limitation on acreage assignment.--Notwithstanding 
    paragraph (1), the average acreage determined under subsection 
    (a)(2) for a farm may not be assigned to a farm in a contiguous 
    State unless--
            (A) the historic peanut producer making the assignment 
        produced peanuts in that State during at least 1 of the 1998 
        through 2001 crop years; or
            (B) as of March 31, 2003, the historic peanut producer is a 
        producer on a farm in that State.
        (3) Notice of assignment opportunity.--The Secretary shall 
    provide notice to historic peanut producers regarding their 
    opportunity to assign average peanut yields and average acreages to 
    farms under paragraph (1). The notice shall include the following:
            (A) Notice that the opportunity to make the assignments is 
        being provided only once.
            (B) A description of the limitation in paragraph (2) on 
        their ability to make the assignments.
            (C) Information regarding the manner in which the 
        assignments must be made and the time periods and manner in 
        which notice of the assignments must be submitted to the 
        Secretary.
        (4) Assignment deadlines.--Not later than March 31, 2003, an 
    historic peanut producer shall submit to the Secretary notice of 
    the assignments made by the producer under this subsection. If an 
    historic peanut producer fails to submit the notice by that date, 
    the notice shall be submitted in such other manner as the Secretary 
    may prescribe.
    (c) Payment Yield.--The average of all of the yields assigned by 
historic peanut producers under subsection (b) to a farm shall be 
considered to be the payment yield for that farm for the purpose of 
making direct payments and counter-cyclical payments under this 
subtitle.
    (d) Base Acres for Peanuts.--Subject to subsection (e), the total 
number of acres assigned by historic peanut producers under subsection 
(b) to a farm shall be considered to be the farm's base acres for 
peanuts for the purpose of making direct payments and counter-cyclical 
payments under this subtitle.
    (e) Treatment of Conservation Reserve Contract Acreage.--
        (1) In general.--The Secretary shall provide for an adjustment, 
    as appropriate, in the base acres for peanuts for a farm whenever 
    either of the following circumstances occur:
            (A) A conservation reserve contract entered into under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        with respect to the farm expires or is voluntarily terminated.
            (B) Cropland is released from coverage under a conservation 
        reserve contract by the Secretary.
        (2) Special payment rules.--For the crop year in which a base 
    acres for peanuts adjustment under paragraph (1) is first made, the 
    owner of the farm shall elect to receive either direct payments and 
    counter-cyclical payments with respect to the acreage added to the 
    farm under this subsection or a prorated payment under the 
    conservation reserve contract, but not both.
    (f) Prevention of Excess Base Acres for Peanuts.--
        (1) Required reduction.--If the sum of the base acres for 
    peanuts for a farm, together with the acreage described in 
    paragraph (2), exceeds the actual cropland acreage of the farm, the 
    Secretary shall reduce the base acres for peanuts for the farm or 
    the base acres for 1 or more covered commodities under subtitle A 
    for the farm so that the sum of the base acres for peanuts and 
    acreage described in paragraph (2) does not exceed the actual 
    cropland acreage of the farm.
        (2) Other acreage.--For purposes of paragraph (1), the 
    Secretary shall include the following:
            (A) Any base acres for the farm under subtitle A.
            (B) Any acreage on the farm enrolled in the conservation 
        reserve program or wetlands reserve program under chapter 1 of 
        subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3830 et seq.).
            (C) Any other acreage on the farm enrolled in a 
        conservation program for which payments are made in exchange 
        for not producing an agricultural commodity on the acreage.
        (3) Selection of acres.--The Secretary shall give the owner of 
    the farm the opportunity to select the base acres for peanuts or 
    the subtitle A base acres against which the reduction required by 
    paragraph (1) will be made.
        (4) Exception for double-cropped acreage.--In applying 
    paragraph (1), the Secretary shall make an exception in the case of 
    double cropping, as determined by the Secretary.
        (5) Coordinated application of requirements.--The Secretary 
    shall take into account section 1101(g) when applying the 
    requirements of this subsection.
    (g) Permanent Reduction in Base Acres for Peanuts.--The owner of a 
farm may reduce, at any time, the base acres for peanuts assigned to 
the farm. The reduction shall be permanent and made in the manner 
prescribed by the Secretary.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required.--
        (1) 2002 crop year.--For the 2002 crop year, the Secretary 
    shall make direct payments under this section to historic peanut 
    producers.
        (2) Subsequent crop years.--For each of the 2003 through 2007 
    crop years for peanuts, the Secretary shall make direct payments to 
    the producers on a farm to which a payment yield and base acres for 
    peanuts are assigned under section 1302.
    (b) Payment Rate.--The payment rate used to make direct payments 
with respect to peanuts for a crop year shall be equal to $36 per ton.
    (c) Payment Amount for 2002 Crop Year.--The amount of the direct 
payment to be paid to an historic peanut producer for the 2002 crop of 
peanuts shall be equal to the product of the following:
        (1) The payment rate specified in subsection (b).
        (2) The payment acres of the historic peanut producer.
        (3) The average peanut yield determined under section 
    1302(a)(1) for the historic peanut producer.
    (d) Payment Amount for Subsequent Crop Years.--The amount of the 
direct payment to be paid to the producers on a farm for the 2003 
through 2007 crops of peanuts shall be equal to the product of the 
following:
        (1) The payment rate specified in subsection (b).
        (2) The payment acres on the farm.
        (3) The payment yield for the farm.
    (e) Time for Payment.--
        (1) In general.--The Secretary shall make direct payments--
            (A) in the case of the 2002 crop year, as soon as 
        practicable after the date of enactment of this Act; and
            (B) in the case of each of the 2003 through 2007 crop 
        years, not later than September 30 of the calendar year in 
        which the crop is harvested.
        (2) Advance payments.--At the option of the producers on a 
    farm, up to 50 percent of the direct payment for any of the 2003 
    through 2007 crop years shall be paid to the producers in advance. 
    The producers shall select the month within which the advance 
    payment for a crop year will be made. The month selected may be any 
    month during the period beginning on December 1 of the calendar 
    year before the calendar year in which the crop is harvested 
    through the month within which the direct payment would otherwise 
    be made. The producers may change the selected month for a 
    subsequent advance payment by providing advance notice to the 
    Secretary.
        (3) Repayment of advance payments.--If a producer on a farm 
    that receives an advance direct payment for a crop year ceases to 
    be a producer on that farm, or the extent to which the producer 
    shares in the risk of producing a crop changes, before the date the 
    remainder of the direct payment is made, the producer shall be 
    responsible for repaying the Secretary the applicable amount of the 
    advance payment, as determined by the Secretary.

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    (a) Payment Required.--
        (1) In general.--During the 2002 through 2007 crop years for 
    peanuts, the Secretary shall make counter-cyclical payments under 
    this section with respect to peanuts if the Secretary determines 
    that the effective price for peanuts is less than the target price 
    for peanuts.
        (2) 2002 crop year.--If counter-cyclical payments are required 
    for the 2002 crop year, the Secretary shall make the payments to 
    historic peanut producers.
        (3) Subsequent crop years.--If counter-cyclical payments are 
    required for any of the 2003 through 2007 crop years for peanuts, 
    the Secretary shall make the payments to the producers on a farm to 
    which a payment yield and base acres for peanuts are assigned under 
    section 1302.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for peanuts is equal to the sum of the following:
        (1) The higher of the following:
            (A) The national average market price for peanuts received 
        by producers during the 12-month marketing year for peanuts, as 
        determined by the Secretary.
            (B) The national average loan rate for a marketing 
        assistance loan for peanuts in effect for the applicable period 
        under this subtitle.
        (2) The payment rate in effect under section 1303 for the 
    purpose of making direct payments.
    (c) Target Price.--For purposes of subsection (a), the target price 
for peanuts shall be equal to $495 per ton.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments for a crop year shall be equal to the difference between--
        (1) the target price; and
        (2) the effective price determined under subsection (b).
    (e) Payment Amount for 2002 Crop Year.--If counter-cyclical 
payments are required to be paid for the 2002 crop of peanuts, the 
amount of the counter-cyclical payment to be paid to an historic peanut 
producer for that crop year shall be equal to the product of the 
following:
        (1) The payment rate specified in subsection (d).
        (2) The payment acres of the historic peanut producer.
        (3) The average peanut yield determined under section 
    1302(a)(1) for the historic peanut producer.
    (f) Payment Amount for Subsequent Crop Years.--If counter-cyclical 
payments are required to be paid for any of the 2003 through 2007 crops 
of peanuts, the amount of the counter-cyclical payment to be paid to 
the producers on a farm for that crop year shall be equal to the 
product of the following:
        (1) The payment rate specified in subsection (d).
        (2) The payment acres on the farm.
        (3) The payment yield for the farm.
    (g) Time for Payments.--
        (1) General rule.--If the Secretary determines under subsection 
    (a) that counter-cyclical payments are required to be made under 
    this section for a crop year, the Secretary shall make the counter-
    cyclical payments as soon as practicable after the end of the 12-
    month marketing year for the crop.
        (2) Availability of partial payments.--If, before the end of 
    the 12-month marketing year, the Secretary estimates that counter-
    cyclical payments will be required under this section for a crop 
    year, the Secretary shall give producers on a farm (or, in the case 
    of the 2002 crop year, historic peanut producers) the option to 
    receive partial payments of the counter-cyclical payment projected 
    to be made for that crop.
        (3) Time for partial payments.--
            (A) 2002 through 2006 crop years.--When the Secretary makes 
        partial payments available under paragraph (2) for any of the 
        2002 through 2006 crop years--
                (i) the first partial payment for the crop year shall 
            be made not earlier than October 1, and, to the maximum 
            extent practicable, not later than October 31, of the 
            calendar year in which the crop is harvested;
                (ii) the second partial payment shall be made not 
            earlier than February 1 of the next calendar year; and
                (iii) the final partial payment shall be made as soon 
            as practicable after the end of the 12-month marketing year 
            for that crop.
            (B) 2007 crop year.--When the Secretary makes partial 
        payments available for the 2007 crop year--
                (i) the first partial payment shall be made after 
            completion of the first 6 months of the marketing year for 
            that crop; and
                (ii) the final partial payment shall be made as soon as 
            practicable after the end of the 12-month marketing year 
            for that crop.
        (4) Amount of partial payments.--
            (A) 2002 crop year.--
                (i) First partial payment.--In the case of the 2002 
            crop year, the first partial payment under paragraph (3) to 
            an historic peanut producer may not exceed 35 percent of 
            the projected counter-cyclical payment for the crop year, 
            as determined by the Secretary.
                (ii) Second partial payment.--The second partial 
            payment may not exceed the difference between--

                    (I) 70 percent of the projected counter-cyclical 
                payment (including any revision thereof) for the 2002 
                crop year; and
                    (II) the amount of the payment made under clause 
                (i).

                (iii) Final payment.--The final payment shall be equal 
            to the difference between--

                    (I) the actual counter-cyclical payment to be made 
                to the historic peanut producer; and
                    (II) the amount of the partial payments made to the 
                historic peanut producer under clauses (i) and (ii).

            (B) 2003 through 2006 crop years.--
                (i) First partial payment.--For each of the 2003 
            through 2006 crop years, the first partial payment under 
            paragraph (3) to the producers on a farm may not exceed 35 
            percent of the projected counter-cyclical payment for the 
            crop year, as determined by the Secretary.
                (ii) Second partial payment.--The second partial 
            payment for a crop year may not exceed the difference 
            between--

                    (I) 70 percent of the projected counter-cyclical 
                payment (including any revision thereof) for the crop 
                year; and
                    (II) the amount of the payment made under clause 
                (i).

                (iii) Final payment.--The final payment for a crop year 
            shall be equal to the difference between--

                    (I) the actual counter-cyclical payment to be made 
                to the producers for that crop year; and
                    (II) the amount of the partial payments made to the 
                producers under clauses (i) and (ii) for that crop 
                year.

            (C) 2007 crop year.--
                (i) First partial payment.--For the 2007 crop year, the 
            first partial payment under paragraph (3) to the producers 
            on a farm may not exceed 40 percent of the projected 
            counter-cyclical payment for the crop year, as determined 
            by the Secretary.
                (ii) Final payment.--The final payment for the 2007 
            crop year shall be equal to the difference between--

                    (I) the actual counter-cyclical payment to be made 
                to the producers for that crop year; and
                    (II) the amount of the partial payment made to the 
                producers under clause (i).

        (5) Repayment.--The producers on a farm (or, in the case of the 
    2002 crop year, historic peanut producers) that receive a partial 
    payment under this subsection for a crop year shall repay to the 
    Secretary the amount, if any, by which the total of the partial 
    payments exceed the actual counter-cyclical payment to be made for 
    that crop year.

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
              DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
        (1) Requirements.--Before the producers on a farm may receive 
    direct payments or counter-cyclical payments under this subtitle 
    with respect to the farm, the producers shall agree, during the 
    crop year for which the payments are made and in exchange for the 
    payments--
            (A) to comply with applicable conservation requirements 
        under subtitle B of title XII of the Food Security Act of 1985 
        (16 U.S.C. 3811 et seq.);
            (B) to comply with applicable wetland protection 
        requirements under subtitle C of title XII of that Act (16 
        U.S.C. 3821 et seq.);
            (C) to comply with the planting flexibility requirements of 
        section 1306;
            (D) to use the land on the farm, in a quantity equal to the 
        attributable base acres for peanuts and any base acres for the 
        farm under subtitle A, for an agricultural or conserving use, 
        and not for a nonagricultural commercial or industrial use, as 
        determined by the Secretary; and
            (E) to effectively control noxious weeds and otherwise 
        maintain the land in accordance with sound agricultural 
        practices, as determined by the Secretary, if the agricultural 
        or conserving use involves the noncultivation of any portion of 
        the land referred to in subparagraph (D).
        (2) Compliance.--The Secretary may issue such rules as the 
    Secretary considers necessary to ensure producer compliance with 
    the requirements of paragraph (1).
        (3) Modification.--At the request of the transferee or owner, 
    the Secretary may modify the requirements of this subsection if the 
    modifications are consistent with the objectives of this 
    subsection, as determined by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
        (1) Termination.--Except as provided in paragraph (2), a 
    transfer of (or change in) the interest of the producers on a farm 
    in the base acres for peanuts for which direct payments or counter-
    cyclical payments are made shall result in the termination of the 
    payments with respect to those acres, unless the transferee or 
    owner of the acreage agrees to assume all obligations under 
    subsection (a). The termination shall take effect on the date 
    determined by the Secretary.
        (2) Exception.--If a producer entitled to a direct payment or 
    counter-cyclical payment dies, becomes incompetent, or is otherwise 
    unable to receive the payment, the Secretary shall make the 
    payment, in accordance with rules issued by the Secretary.
    (c) Acreage Reports.--As a condition on the receipt of direct 
payments, counter-cyclical payments, marketing assistance loans, or 
loan deficiency payments under this subtitle, the Secretary shall 
require the producers on a farm to which a payment yield and base acres 
for peanuts are assigned under section 1302 to submit to the Secretary 
annual acreage reports with respect to all cropland on the farm.
    (d) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments and counter-cyclical payments among the 
producers on a farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on the base acres for peanuts on a farm.
    (b) Limitations Regarding Certain Commodities.--
        (1) General limitation.--The planting of an agricultural 
    commodity specified in paragraph (2) shall be prohibited on base 
    acres for peanuts unless the commodity, if planted, is destroyed 
    before harvest.
        (2) Treatment of trees and other perennials.--The planting of 
    an agricultural commodity specified in paragraph (3) that is 
    produced on a tree or other perennial plant shall be prohibited on 
    base acres for peanuts.
        (3) Covered agricultural commodities.--Paragraphs (1) and (2) 
    apply to the following agricultural commodities:
            (A) Fruits.
            (B) Vegetables (other than lentils, mung beans, and dry 
        peas).
            (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not 
limit the planting of an agricultural commodity specified in paragraph 
(3) of that subsection--
        (1) in any region in which there is a history of double-
    cropping of peanuts with agricultural commodities specified in 
    subsection (b)(3), as determined by the Secretary, in which case 
    the double-cropping shall be permitted;
        (2) on a farm that the Secretary determines has a history of 
    planting agricultural commodities specified in subsection (b)(3) on 
    the base acres for peanuts, except that direct payments and 
    counter-cyclical payments shall be reduced by an acre for each acre 
    planted to such an agricultural commodity; or
        (3) by the producers on a farm that the Secretary determines 
    has an established planting history of a specific agricultural 
    commodity specified in subsection (b)(3), except that--
            (A) the quantity planted may not exceed the average annual 
        planting history of such agricultural commodity by the 
        producers on the farm in the 1991 through 1995 or 1998 through 
        2001 crop years (excluding any crop year in which no plantings 
        were made), as determined by the Secretary; and
            (B) direct payments and counter-cyclical payments shall be 
        reduced by an acre for each acre planted to such agricultural 
        commodity.

SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 
              PEANUTS.

    (a) Nonrecourse Loans Available.--
        (1) Availability.--For each of the 2002 through 2007 crops of 
    peanuts, the Secretary shall make available to producers on a farm 
    nonrecourse marketing assistance loans for peanuts produced on the 
    farm. The loans shall be made under terms and conditions that are 
    prescribed by the Secretary and at the loan rate established under 
    subsection (b).
        (2) Eligible production.--The producers on a farm shall be 
    eligible for a marketing assistance loan under this subsection for 
    any quantity of peanuts produced on the farm.
        (3) Treatment of certain commingled commodities.--In carrying 
    out this subsection, the Secretary shall make loans to producers on 
    a farm that would be eligible to obtain a marketing assistance 
    loan, but for the fact the peanuts owned by the producers on the 
    farm are commingled with other peanuts in facilities unlicensed for 
    the storage of agricultural commodities by the Secretary or a State 
    licensing authority, if the producers obtaining the loan agree to 
    immediately redeem the loan collateral in accordance with section 
    166 of the Federal Agriculture Improvement and Reform Act of 1996 
    (7 U.S.C. 7286).
        (4) Options for obtaining loan.--A marketing assistance loan 
    under this subsection, and loan deficiency payments under 
    subsection (e), may be obtained at the option of the producers on a 
    farm through--
            (A) a designated marketing association or marketing 
        cooperative of producers that is approved by the Secretary; or
            (B) the Farm Service Agency.
        (5) Storage of loan peanuts.--As a condition on the Secretary's 
    approval of an individual or entity to provide storage for peanuts 
    for which a marketing assistance loan is made under this section, 
    the individual or entity shall agree--
            (A) to provide such storage on a nondiscriminatory basis; 
        and
            (B) to comply with such additional requirements as the 
        Secretary considers appropriate to accomplish the purposes of 
        this section and promote fairness in the administration of the 
        benefits of this section.
        (6) Payment of peanut storage costs.--Effective for the 2002 
    through 2006 crops of peanuts, to ensure proper storage of peanuts 
    for which a loan is made under this section, the Secretary shall 
    use the funds of the Commodity Credit Corporation to pay storage, 
    handling, and other associated costs. This authority terminates 
    beginning with the 2007 crop of peanuts.
        (7) Marketing.--A marketing association or cooperative may 
    market peanuts for which a loan is made under this section in any 
    manner that conforms to consumer needs, including the separation of 
    peanuts by type and quality.
    (b) Loan Rate.--The loan rate for a marketing assistance loan under 
for peanuts subsection (a) shall be equal to $355 per ton.
    (c) Term of Loan.--
        (1) In general.--A marketing assistance loan for peanuts under 
    subsection (a) shall have a term of 9 months beginning on the first 
    day of the first month after the month in which the loan is made.
        (2) Extensions prohibited.--The Secretary may not extend the 
    term of a marketing assistance loan for peanuts under subsection 
    (a).
    (d) Repayment Rate.--
        (1) In general.--The Secretary shall permit producers on a farm 
    to repay a marketing assistance loan for peanuts under subsection 
    (a) at a rate that is the lesser of--
            (A) the loan rate established for peanuts under subsection 
        (b), plus interest (determined in accordance with section 163 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7283)); or
            (B) a rate that the Secretary determines will--
                (i) minimize potential loan forfeitures;
                (ii) minimize the accumulation of stocks of peanuts by 
            the Federal Government;
                (iii) minimize the cost incurred by the Federal 
            Government in storing peanuts; and
                (iv) allow peanuts produced in the United States to be 
            marketed freely and competitively, both domestically and 
            internationally.
        (2) Good faith exception to beneficial interest requirement.--
    For the 2002 crop year only, in the case of the producers on a farm 
    that marketed or otherwise lost beneficial interest in the peanuts 
    for which a marketing assistance loan was made under this section 
    before repaying the loan, the Secretary shall permit the producers 
    to repay the loan at the applicable repayment rate that was in 
    effect for peanuts under this subsection on the date that the 
    producers lost beneficial interest, as determined by the Secretary, 
    if the Secretary determines the producers acted in good faith.
    (e) Loan Deficiency Payments.--
        (1) Availability.--The Secretary may make loan deficiency 
    payments available to producers on a farm that, although eligible 
    to obtain a marketing assistance loan for peanuts under subsection 
    (a), agree to forgo obtaining the loan for the peanuts in return 
    for loan deficiency payments under this subsection.
        (2) Computation.--A loan deficiency payment under this 
    subsection shall be computed by multiplying--
            (A) the payment rate determined under paragraph (3) for 
        peanuts; by
            (B) the quantity of the peanuts produced by the producers, 
        excluding any quantity for which the producers obtain a 
        marketing assistance loan under subsection (a).
        (3) Payment rate.--For purposes of this subsection, the payment 
    rate shall be the amount by which--
            (A) the loan rate established under subsection (b); exceeds
            (B) the rate at which a loan may be repaid under subsection 
        (d).
        (4) Effective date for payment rate determination.--
            (A) In general.--The Secretary shall determine the amount 
        of the loan deficiency payment to be made under this subsection 
        to the producers on a farm with respect to a quantity of 
        peanuts using the payment rate in effect under paragraph (3) as 
        of the date the producers request the payment.
            (B) Special rule for 2002 crop year.--For the 2002 crop 
        year only, the Secretary shall determine the amount of the loan 
        deficiency payment to be made under this subsection to the 
        producers on a farm with respect to a quantity of peanuts using 
        the payment rate in effect under paragraph (3) as of the 
        earlier of the following:
                (i) The date on which the producers marketed or 
            otherwise lost beneficial interest in the crop, as 
            determined by the Secretary.
                (ii) The date the producers request the payment.
    (f) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (g) Reimbursable Agreements and Payment of Administrative 
Expenses.--The Secretary may implement any reimbursable agreements or 
provide for the payment of administrative expenses under this subtitle 
only in a manner that is consistent with such activities in regard to 
other commodities.

SEC. 1308. MISCELLANEOUS PROVISIONS.

    (a) Mandatory Inspection.--All peanuts marketed in the United 
States shall be officially inspected and graded by Federal or Federal-
State inspectors.
    (b) Termination of Peanut Administrative Committee.--The Peanut 
Administrative Committee established under Marketing Agreement No. 146 
issued pursuant to the Agricultural Adjustment Act (7 U.S.C. 601 et 
seq.), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is terminated.
    (c) Peanut Standards Board.--
        (1) Establishment and purpose.--The Secretary shall establish a 
    Peanut Standards Board for the purpose of advising the Secretary 
    regarding the establishment of quality and handling standards for 
    domestically produced and imported peanuts.
        (2) Membership and appointment.--
            (A) Total members.--The Board shall consist of 18 members, 
        with representation equally divided between peanut producers 
        and peanut industry representatives.
            (B) Appointment process for producers.--The Secretary shall 
        appoint--
                (i) 3 producers from the Southeast (Alabama, Georgia, 
            and Florida) peanut producing region;
                (ii) 3 producers from the Southwest (Texas, Oklahoma, 
            and New Mexico) peanut producing region; and
                (iii) 3 producers from the Virginia/Carolina (Virginia 
            and North Carolina) peanut producing region.
            (C) Appointment process for industry representatives.--The 
        Secretary shall appoint 3 peanut industry representatives from 
        each of the 3 peanut producing regions in the United States.
        (3) Terms.--
            (A) In general.--A member of the Board shall serve a 3-year 
        term.
            (B) Initial appointment.--In making the initial 
        appointments to the Board, the Secretary shall stagger the 
        terms of the members so that--
                (i) 1 producer member and peanut industry member from 
            each peanut producing region serves a 1-year term;
                (ii) 1 producer member and peanut industry member from 
            each peanut producing region serves a 2-year term; and
                (iii) 1 producer member and peanut industry member from 
            each peanut producing region serves a 3-year term.
        (4) Consultation required.--The Secretary shall consult with 
    the Board in advance whenever the Secretary establishes or changes, 
    or considers the establishment of or a change to, quality and 
    handling standards for peanuts.
        (5) Federal advisory committee act.--The Federal Advisory 
    Committee Act (5 U.S.C. App.) shall not apply to the Board.
    (d) Priority.--The Secretary shall make identifying and combating 
the presence of all quality concerns related to peanuts a priority in 
the development of quality and handling standards for peanuts and in 
the inspection of domestically produced and imported peanuts. The 
Secretary shall consult with appropriate Federal and State agencies to 
provide adequate safeguards against all quality concerns related to 
peanuts.
    (e) Consistent Standards.--Imported peanuts shall be subject to the 
same quality and handling standards as apply to domestically produced 
peanuts.
    (f) Authorization of Appropriations.--
        (1) In general.--In addition to other funds that are available 
    to carry out this section, there is authorized to be appropriated 
    such sums as are necessary to carry out this section.
        (2) Treatment of board expenses.--The expenses of the Peanut 
    Standards Board shall not be counted toward any general limitation 
    on the expenses of advisory committees, panels, commissions, and 
    task forces of the Department of Agriculture, whether enacted 
    before, on, or after the date of enactment of this Act, unless the 
    limitation specifically refers to this paragraph and specifically 
    includes the Peanut Standards Board within the general limitation.
    (g) Transition Rule.--
        (1) Temporary designation of peanut administrative committee 
    members.--Notwithstanding the appointment process specified in 
    subsection (c) for the Peanut Standards Board, during the 
    transition period, the Secretary may designate persons serving as 
    members of the Peanut Administrative Committee on the day before 
    the date of enactment of this Act to serve as members of the Peanut 
    Standards Board for the purpose of carrying out the duties of the 
    Board described in this section.
        (2) Funds.--The Secretary may transfer any funds available to 
    carry out the activities of the Peanut Administrative Committee to 
    the Peanut Standards Board to carry out the duties of the Board 
    described in this section.
        (3) Transition period.--In paragraph (1), the term ``transition 
    period'' means the period beginning on the date of enactment of 
    this Act and ending on the earlier of--
            (A) the date the Secretary appoints the members of the 
        Peanut Standards Board pursuant to subsection (c); or
            (B) 180 days after the date of enactment of this Act.
    (h) Effective Date.--This section shall take effect with the 2002 
crop of peanuts.

SEC. 1309. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND 
              COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF QUOTA 
              ASSET VALUE.

    (a) Repeal of Marketing Quota.--
        (1) Repeal.--Part VI of subtitle B of title III of the 
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating 
    to peanuts, is repealed.
        (2) Treatment of 2001 crop.--Part VI of subtitle B of title III 
    of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), 
    as in effect on the day before the date of enactment of this Act, 
    shall continue to apply with respect to the 2001 crop of peanuts 
    notwithstanding the amendment made by paragraph (1). Section 
    1308(g)(2) shall also apply to the 2001 crop of peanuts.
    (b) Compensation Contract Required.--
        (1) In general.--The Secretary shall offer to enter into a 
    contract with each person that the Secretary determines is an 
    eligible peanut quota holder under subsection (f) for the purpose 
    of providing compensation for the lost value of the quota on 
    account of the repeal of the marketing quota program for peanuts 
    under subsection (a).
        (2) Payment period.--The Secretary shall make payments under 
    the contracts during fiscal years 2002 through 2006.
    (c) Time for Payment.--
        (1) Payment in installments.--The payments required under the 
    contracts shall be provided in 5 equal installments not later than 
    September 30 of each of fiscal years 2002 through 2006.
        (2) Single payment.--At the request of an eligible peanut quota 
    holder entitled to payments under a contract, the Secretary shall 
    provide the entire payment amount determined under subsection (d) 
    with respect to the eligible peanut quota holder for the 5 fiscal 
    years in a single lump sum during the fiscal year specified by the 
    eligible peanut quota holder.
    (d) Payment Amount.--The amount of the payment for a fiscal year to 
an eligible peanut quota holder under a contract shall be equal to the 
product obtained by multiplying--
        (1) $0.11 per pound; by
        (2) the number of pounds of quota with respect to which the 
    person qualifies as a peanut quota holder under subsection (f).
    (e) Assignment of Payments.--The provisions of section 8(g) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
relating to assignment of payments, shall apply to the payments made 
under the contracts. A person making an assignment of the payment, or 
the assignee, shall provide the Secretary with notice, in such manner 
as the Secretary may require, of any assignment made under this 
subsection.
    (f) Eligible Peanut Quota Holder.--
        (1) In general.--Except as otherwise provided in this 
    subsection, the Secretary shall consider a person to be an eligible 
    peanut quota holder for the purposes of this section if the person, 
    as of the date of enactment of this Act, owned a farm that, also as 
    of that date, was eligible for a permanent peanut quota under 
    section 358-1(b) of the Agricultural Adjustment Act of 1938 (7 
    U.S.C. 1358-1(b)), irrespective of temporary leases, transfers of 
    quotas for seed, or quotas for experimental purposes.
        (2) Effect of purchase contract.--If there was a written 
    contract for the purchase of all or a portion of a farm described 
    in paragraph (1) as of the date of enactment of this Act and the 
    parties to the sale are unable to agree to the disposition of 
    eligibility for payments under this section, the Secretary, taking 
    into account any incomplete permanent transfer of quota that has 
    otherwise been agreed to, shall provide for the equitable division 
    of the payments among the parties by adjusting the determination of 
    who is the eligible peanut quota holder with respect to particular 
    pounds of the quota.
        (3) Effect of agreement for permanent quota transfer.--If the 
    Secretary determines that there was in existence, as of the date of 
    enactment of this Act, an agreement for the permanent transfer of 
    quota, but that the transfer was not completed by that date, the 
    Secretary shall consider the peanut quota holder to be the party to 
    the agreement who, as of that date, was the owner of the farm to 
    which the quota was to be transferred.
        (4) Protected bases.--A person that owns a farm with a peanut 
    poundage quota which is protected under a conservation reserve 
    program contract entered into under section 1231 of the Food 
    Security Act of 1985 (16 U.S.C. 3831) shall be considered to be an 
    eligible quota holder with respect to the protected poundage.
        (5) Secretarial discretion.--Notwithstanding the preceding 
    paragraphs, the Secretary may declare a person to be the eligible 
    peanut quota holder with respect to certain pounds of quota or 
    otherwise for purposes of this section if the Secretary considers 
    the declaration is needed to insure a fair and equitable 
    administration of the payments provided for in this section, so 
    long as the Secretary does not, in exercising this authority, 
    effectively increase the total quota in excess of the quota that 
    was available to all producers for the 2001 crop year for other 
    than seed or experimental use.
        (6) Limitation on quantity of quota held.--A person shall be 
    considered an eligible peanut quota holder for purposes of this 
    section only with respect to that number of permanent pounds that 
    qualifies the person as a peanut quota holder under one of the 
    preceding paragraphs. The determination of the peanut poundage 
    amount for which the person qualifies shall be made based on the 
    2001 crop quota levels and shall take into account sales of the 
    farm that occurred before the date of enactment of this Act and any 
    permanent transfers of quota that took place before that date, 
    consistent with the preceding paragraphs. The Secretary shall not 
    take into account, or allow eligibility for, quotas for seed, 
    granted as experimental quotas, or obtained by temporary lease or 
    transfer.
    (g) Successions in Payment Eligibility and Attachment of 
Eligibility to Persons.--
        (1) Eligibility attaches to persons.--Once a person is eligible 
    for payments under this section, as determined under subsection 
    (f), the continued eligibility of the person for the payments does 
    not run with a farm, but shall remain with the person for the term 
    of this section irrespective of whether the person sells, or 
    continues to have an interest in, the farm that had the quota that 
    qualified the person as an eligible peanut quota holder under 
    subsection (f) and irrespective of whether the person has a 
    continuing interest in the production of peanuts.
        (2) Succession.--If a person eligible for payments under this 
    section dies, in the case of an individual, or ceases to exist, in 
    the case of other persons, the payment eligibility of the person 
    shall pass to the person's personal or organizational successor, as 
    determined by the Secretary.
    (h) Conforming Amendments.--
        (1) Administrative provisions.--Section 361 of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1361) is amended by striking 
    ``peanuts,''.
        (2) Adjustment of quotas.--Section 371 of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
            (A) in the first sentence of subsection (a), by striking 
        ``peanuts,''; and
            (B) in the first sentence of subsection (b), by striking 
        ``peanuts''.
        (3) Reports and records.--Section 373 of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
            (A) in the first sentence of subsection (a)--
                (i) by striking ``peanuts,'' each place it appears;
                (ii) by inserting ``and'' after ``from producers,''; 
            and
                (iii) by striking ``for producers, all'' and all that 
            follows through the period at the end of the sentence and 
            inserting ``for producers.''; and
            (B) in subsection (b), by striking ``peanuts,''.
        (4) Eminent domain.--Section 378(c) of the Agricultural 
    Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the first 
    sentence--
            (A) by striking ``cotton,'' and inserting ``cotton and''; 
        and
            (B) by striking ``and peanuts,''.

SEC. 1310. REPEAL OF SUPERSEDED PRICE SUPPORT AUTHORITY AND EFFECT OF 
              REPEAL.

    (a) Repeal of Price Support Authority.--
        (1) In general.--Section 155 of the Federal Agriculture 
    Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.
        (2) Conforming amendments.--The Agricultural Act of 1949 (7 
    U.S.C. 1441 et seq.) is amended--
            (A) in section 101(b) (7 U.S.C. 1441(b)), by striking ``and 
        peanuts''; and
            (B) in section 408(c) (7 U.S.C. 1428(c)), by striking 
        ``peanuts,''.
        (3) Technical amendment.--The chapter heading of chapter 2 of 
    subtitle D of the Federal Agriculture Improvement and Reform Act of 
    1996 (7 U.S.C. prec. 7271) is amended by striking ``PEANUTS AND''.
    (b) Disposal.--Notwithstanding any other provision of law or 
previous declaration made by the Secretary, the Secretary shall ensure 
that the disposal of all peanuts for which a loan for the 2001 crop of 
peanuts was made under section 155 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7271) before the date of 
enactment of this Act is carried out in a manner that prevents price 
disruptions in the domestic and international markets for peanuts.
    (c) Treatment of Crop Insurance Policies for 2002 Crop Year.--
        (1) Applicability.--This subsection shall apply for the 2002 
    crop year only notwithstanding any other provision of law or crop 
    insurance policy.
        (2) Price election.--The nonquota price election for 
    segregation I, II, and III peanuts shall be 17.75 cents per pound 
    and shall be used for all aspects of the policy relating to the 
    calculations of premium, liability, and indemnities.
        (3) Quality Adjustment.--For the purposes of quality adjustment 
    only, the average support price per pound of peanuts shall be a 
    price equal to 17.75 cents per pound. Quality under the crop 
    insurance policy for peanuts shall be adjusted under procedures 
    issued by the Federal Crop Insurance Corporation.

                           Subtitle D--Sugar

SEC. 1401. SUGAR PROGRAM.

    (a) Extension and Modification of Existing Sugar Program.--Section 
156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7272) is amended to read as follows:

``SEC. 156. SUGAR PROGRAM.

    ``(a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 18 cents 
per pound for raw cane sugar.
    ``(b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 22.9 
cents per pound for refined beet sugar.
    ``(c) Loan Rate Adjustments.--
        ``(1) In general.--The Secretary may reduce the loan rate 
    specified in subsection (a) for domestically grown sugarcane and 
    subsection (b) for domestically grown sugar beets if the Secretary 
    determines that negotiated reductions in export subsidies and 
    domestic subsidies provided for sugar of other major sugar growing, 
    producing, and exporting countries in the aggregate exceed the 
    commitments made as part of the Agreement on Agriculture.
        ``(2) Extent of reduction.--The Secretary shall not reduce the 
    loan rate under subsection (a) or (b) below a rate that provides an 
    equal measure of support to that provided by other major sugar 
    growing, producing, and exporting countries, based on an 
    examination of both domestic and export subsidies subject to 
    reduction in the Agreement on Agriculture.
        ``(3) Announcement of reduction.--The Secretary shall announce 
    any loan rate reduction to be made under this subsection as far in 
    advance as is practicable.
        ``(4) Definitions.--In this subsection:
            ``(A) Agreement on agriculture.--The term ``Agreement on 
        Agriculture'' means the Agreement on Agriculture referred to in 
        section 101(d)(2) of the Uruguay Round Agreements Act (19 
        U.S.C. 3511(d)(2)), or any amendatory or successor agreement.
            ``(B) Major sugar countries.--The term ``major sugar 
        growing, producing, and exporting countries'' means--
                ``(i) the countries of the European Union; and
                ``(ii) the 10 foreign countries not covered by 
            subparagraph (A) that the Secretary determines produce the 
            greatest quantity of sugar.
    ``(d) Term of Loans.--
        ``(1) In general.--A loan under this section during any fiscal 
    year shall be made available not earlier than the beginning of the 
    fiscal year and shall mature at the earlier of--
            ``(A) the end of the 9-month period beginning on the first 
        day of the first month after the month in which the loan is 
        made; or
            ``(B) the end of the fiscal year in which the loan is made.
        ``(2) Supplemental loans.--In the case of a loan made under 
    this section in the last 3 months of a fiscal year, the processor 
    may repledge the sugar as collateral for a second loan in the 
    subsequent fiscal year, except that the second loan shall--
            ``(A) be made at the loan rate in effect at the time the 
        second loan is made; and
            ``(B) mature in 9 months less the quantity of time that the 
        first loan was in effect.
    ``(e) Loan Type; Processor Assurances.--
        ``(1) Nonrecourse loans.--The Secretary shall carry out this 
    section through the use of nonrecourse loans.
        ``(2) Processor assurances.--
            ``(A) In general.--The Secretary shall obtain from each 
        processor that receives a loan under this section such 
        assurances as the Secretary considers adequate to ensure that 
        the processor will provide payments to producers that are 
        proportional to the value of the loan received by the processor 
        for the sugar beets and sugarcane delivered by producers to the 
        processor.
            ``(B) Minimum payments.--
                ``(i) In general.--Subject to clause (ii), the 
            Secretary may establish appropriate minimum payments for 
            purposes of this paragraph.
                ``(ii) Limitation.--In the case of sugar beets, the 
            minimum payment established under clause (i) shall not 
            exceed the rate of payment provided for under the 
            applicable contract between a sugar beet producer and a 
            sugar beet processor.
                ``(iii) Effect of disaster.--The Secretary may not bar 
            a beet sugar processor from eligibility to obtain a loan 
            under this section because of the failure of the processor 
            to provide the appropriate minimum payment established 
            under this subsection if the failure--

                    ``(I) occurred during a crop year prior to the date 
                of enactment of the Farm Security and Rural Investment 
                Act of 2002; and
                    ``(II) was related, at least in part, to the 
                effects of a natural disaster, including damage from 
                freeze.

        ``(3) Administration.--The Secretary may not impose or enforce 
    any prenotification requirement, or similar administrative 
    requirement not otherwise in effect on the date of enactment of the 
    Farm Security and Rural Investment Act of 2002, that has the effect 
    of preventing a processor from electing to forfeit the loan 
    collateral (of an acceptable grade and quality) on the maturity of 
    the loan.
    ``(f) Loans for In-Process Sugar.--
        ``(1) Definition of in-process sugars and syrups.--In this 
    subsection, the term `in-process sugars and syrups' does not 
    include raw sugar, liquid sugar, invert sugar, invert syrup, or 
    other finished product that is otherwise eligible for a loan under 
    subsection (a) or (b).
        ``(2) Availability.--The Secretary shall make nonrecourse loans 
    available to processors of a crop of domestically grown sugarcane 
    and sugar beets for in-process sugars and syrups derived from the 
    crop.
        ``(3) Loan rate.--The loan rate shall be equal to 80 percent of 
    the loan rate applicable to raw cane sugar or refined beet sugar, 
    as determined by the Secretary on the basis of the source material 
    for the in-process sugars and syrups.
        ``(4) Further processing on forfeiture.--
            ``(A) In general.--As a condition of the forfeiture of in-
        process sugars and syrups serving as collateral for a loan 
        under paragraph (2), the processor shall, within such 
        reasonable time period as the Secretary may prescribe and at no 
        cost to the Commodity Credit Corporation, convert the in-
        process sugars and syrups into raw cane sugar or refined beet 
        sugar of acceptable grade and quality for sugars eligible for 
        loans under subsection (a) or (b).
            ``(B) Transfer to corporation.--Once the in-process sugars 
        and syrups are fully processed into raw cane sugar or refined 
        beet sugar, the processor shall transfer the sugar to the 
        Commodity Credit Corporation.
            ``(C) Payment to processor.--On transfer of the sugar, the 
        Secretary shall make a payment to the processor in an amount 
        equal to the amount obtained by multiplying--
                ``(i) the difference between--

                    ``(I) the loan rate for raw cane sugar or refined 
                beet sugar, as appropriate; and
                    ``(II) the loan rate the processor received under 
                paragraph (3); by

                ``(ii) the quantity of sugar transferred to the 
            Secretary.
        ``(5) Loan conversion.--If the processor does not forfeit the 
    collateral as described in paragraph (4), but instead further 
    processes the in-process sugars and syrups into raw cane sugar or 
    refined beet sugar and repays the loan on the in-process sugars and 
    syrups, the processor may obtain a loan under subsection (a) or (b) 
    for the raw cane sugar or refined beet sugar, as appropriate.
        ``(6) Term of loan.--The term of a loan made under this 
    subsection for a quantity of in-process sugars and syrups, when 
    combined with the term of a loan made with respect to the raw cane 
    sugar or refined beet sugar derived from the in-process sugars and 
    syrups, may not exceed 9 months, consistent with subsection (d).
    ``(g) Avoiding Forfeitures; Corporation Inventory Disposition.--
        ``(1) In general.--Subject to subsection (e)(3), to the maximum 
    extent practicable, the Secretary shall operate the program 
    established under this section at no cost to the Federal Government 
    by avoiding the forfeiture of sugar to the Commodity Credit 
    Corporation.
        ``(2) Inventory disposition.--
            ``(A) In general.--To carry out paragraph (1), the 
        Commodity Credit Corporation may accept bids to obtain raw cane 
        sugar or refined beet sugar in the inventory of the Commodity 
        Credit Corporation from (or otherwise make available such 
        commodities, on appropriate terms and conditions, to) 
        processors of sugarcane and processors of sugar beets (acting 
        in conjunction with the producers of the sugarcane or sugar 
        beets processed by the processors) in return for the reduction 
        of production of raw cane sugar or refined beet sugar, as 
        appropriate.
            ``(B) Additional authority.--The authority provided under 
        this paragraph is in addition to any authority of the Commodity 
        Credit Corporation under any other law.
    ``(h) Information Reporting.--
        ``(1) Duty of processors and refiners to report.--A sugarcane 
    processor, cane sugar refiner, and sugar beet processor shall 
    furnish the Secretary, on a monthly basis, such information as the 
    Secretary may require to administer sugar programs, including the 
    quantity of purchases of sugarcane, sugar beets, and sugar, and 
    production, importation, distribution, and stock levels of sugar.
        ``(2) Duty of producers to report.--
            ``(A) Proportionate share states.--As a condition of a loan 
        made to a processor for the benefit of a producer, the 
        Secretary shall require each producer of sugarcane located in a 
        State (other than the Commonwealth of Puerto Rico) in which 
        there are in excess of 250 producers of sugarcane to report, in 
        the manner prescribed by the Secretary, the sugarcane yields 
        and acres planted to sugarcane of the producer.
            ``(B) Other states.--The Secretary may require each 
        producer of sugarcane or sugar beets not covered by 
        subparagraph (A) to report, in a manner prescribed by the 
        Secretary, the yields of, and acres planted to, sugarcane or 
        sugar beets, respectively, of the producer.
        ``(3) Duty of importers to report.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the Secretary shall require an importer of sugars, syrups, or 
        molasses to be used for human consumption or to be used for the 
        extraction of sugar for human consumption to report, in the 
        manner prescribed by the Secretary, the quantities of the 
        products imported by the importer and the sugar content or 
        equivalent of the products.
            ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
        to sugars, syrups, or molasses that are within the quantities 
        of tariff-rate quotas that are subject to the lower rate of 
        duties.
        ``(4) Penalty.--Any person willfully failing or refusing to 
    furnish the information, or furnishing willfully any false 
    information, shall be subject to a civil penalty of not more than 
    $10,000 for each such violation.
        ``(5) Monthly reports.--Taking into consideration the 
    information received under this subsection, the Secretary shall 
    publish on a monthly basis composite data on production, imports, 
    distribution, and stock levels of sugar.
    ``(i) Substitution of Refined Sugar.--For purposes of Additional 
U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the 
United States and the reexport programs and polyhydric alcohol program 
administered by the Secretary, all refined sugars (whether derived from 
sugar beets or sugarcane) produced by cane sugar refineries and beet 
sugar processors shall be fully substitutable for the export of sugar 
and sugar-containing products under those programs.
    ``(j) Effective Period.--This section shall be effective only for 
the 1996 through 2007 crops of sugar beets and sugarcane.''.
    (b) Effective Date of Assessment Termination.--Subsection (f) of 
section 156 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(f)), as in effect immediately before the enactment 
of the Farm Security and Rural Investment Act of 2002, is deemed to 
have been repealed effective as of October 1, 2001.
    (c) Interest Rate.--Section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended--
        (1) by inserting ``(a) In General.--'' before 
    ``Notwithstanding''; and
        (2) by adding at the end the following:
    ``(b) Sugar.--For purposes of this section, raw cane sugar, refined 
beet sugar, and in-process sugar eligible for a loan under section 156 
shall not be considered an agricultural commodity.''.

SEC. 1402. STORAGE FACILITY LOANS.

    (a) In General.--Notwithstanding any other provision of law and as 
soon as practicable after the date of enactment of this Act, the 
Commodity Credit Corporation shall amend part 1436 of title 7, Code of 
Federal Regulations, to establish a sugar storage facility loan program 
to provide financing for processors of domestically-produced sugarcane 
and sugar beets to construct or upgrade storage and handling facilities 
for raw sugars and refined sugars.
    (b) Eligible Processors.--A storage facility loan described in 
subsection (a) shall be made available to any processor of domestically 
produced sugarcane or sugar beets that (as determined by the 
Secretary)--
        (1) has a satisfactory credit history;
        (2) has a need for increased storage capacity, taking into 
    account the effects of marketing allotments; and
        (3) demonstrates an ability to repay the loan.
    (c) Term of Loans.--A storage facility loan described in subsection 
(a) shall--
        (1) have a minimum term of 7 years; and
        (2) be in such amounts and on such terms and conditions 
    (including terms and conditions relating to downpayments, 
    collateral, and eligible facilities) as are normal, customary, and 
    appropriate for the size and commercial nature of the borrower.

SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    Part VII of subtitle B of title III of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 359aa et seq.) is amended to read as follows:

          ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR

``SEC. 359A. DEFINITIONS.

    ``In this part:
        ``(1) Mainland state.--The term `mainland State' means a State 
    other than an offshore State.
        ``(2) Offshore state.--The term `offshore State' means a 
    sugarcane producing State located outside of the continental United 
    States.
        ``(3) State.--Notwithstanding section 301, the term `State' 
    means--
            ``(A) a State;
            ``(B) the District of Columbia; and
            ``(C) the Commonwealth of Puerto Rico.
        ``(4) United states.--The term `United States', when used in a 
    geographical sense, means all of the States.

``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    ``(a) Sugar Estimates.--
        ``(1) In general.--Not later than August 1 before the beginning 
    of each of the 2002 through 2007 crop years, the Secretary shall 
    estimate--
            ``(A) the quantity of sugar that will be consumed in the 
        United States during the crop year;
            ``(B) the quantity of sugar that would provide for 
        reasonable carryover stocks;
            ``(C) the quantity of sugar that will be available from 
        carry-in stocks for consumption in the United States during the 
        crop year;
            ``(D) the quantity of sugar that will be available from the 
        domestic processing of sugarcane and sugar beets; and
            ``(E) the quantity of sugars, syrups, and molasses that 
        will be imported for human consumption or to be used for the 
        extraction of sugar for human consumption in the United States 
        during the crop year, whether such articles are under a tariff-
        rate quota or are in excess or outside of a tariff-rate quota.
        ``(2) Exclusion.--The estimates under this subsection shall not 
    apply to sugar imported for the production of polyhydric alcohol or 
    to any sugar refined and reexported in refined form or in products 
    containing sugar.
        ``(3) Reestimates.--The Secretary shall make reestimates of 
    sugar consumption, stocks, production, and imports for a crop year 
    as necessary, but no later than the beginning of each of the second 
    through fourth quarters of the crop year.
    ``(b) Sugar Allotments.--
        ``(1) In general.--By the beginning of each crop year, the 
    Secretary shall establish for that crop year appropriate allotments 
    under section 359c for the marketing by processors of sugar 
    processed from sugar beets and from domestically produced sugarcane 
    at a level that the Secretary estimates will result in no 
    forfeitures of sugar to the Commodity Credit Corporation under the 
    loan program for sugar established under section 156 of the Federal 
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272).
        ``(2) Products.--The Secretary may include sugar products, 
    whose majority content is sucrose for human consumption, derived 
    from sugarcane, sugar beets, molasses, or sugar in the allotments 
    under paragraph (1) if the Secretary determines it to be 
    appropriate for purposes of this part.
    ``(c) Prohibitions.--
        ``(1) In general.--During any crop year or portion thereof for 
    which marketing allotments have been established, no processor of 
    sugar beets or sugarcane shall market a quantity of sugar in excess 
    of the allocation established for such processor, except to enable 
    another processor to fulfill an allocation established for such 
    other processor or to facilitate the exportation of such sugar.
        ``(2) Civil penalty.--Any processor who knowingly violates 
    paragraph (1) shall be liable to the Commodity Credit Corporation 
    for a civil penalty in an amount equal to 3 times the United States 
    market value, at the time of the commission of the violation, of 
    that quantity of sugar involved in the violation.
        ``(3) Definition of market.--For purposes of this part, the 
    term `market' shall mean to sell or otherwise dispose of in 
    commerce in the United States (including the forfeiture of sugar 
    under the loan program for sugar under section 156 of the Federal 
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) and, 
    with respect to any integrated processor and refiner, the movement 
    of raw cane sugar into the refining process).

``SEC. 359C. ESTABLISHMENT OF FLEXIBLE MARKETING ALLOTMENTS.

    ``(a) In General.--The Secretary shall establish flexible marketing 
allotments for sugar for any crop year in which the allotments are 
required under section 359b(b) in accordance with this section.
    ``(b) Overall Allotment Quantity.--
        ``(1) In general.--The Secretary shall establish the overall 
    quantity of sugar to be allotted for the crop year (in this part 
    referred to as the `overall allotment quantity') by deducting from 
    the sum of the estimated sugar consumption and reasonable carryover 
    stocks (at the end of the crop year) for the crop year, as 
    determined under section 359b(a)--
            ``(A) 1,532,000 short tons, raw value; and
            ``(B) carry-in stocks of sugar, including sugar in 
        Commodity Credit Corporation inventory.
        ``(2) Adjustment.--The Secretary shall adjust the overall 
    allotment quantity to avoid the forfeiture of sugar to the 
    Commodity Credit Corporation.
    ``(c) Marketing Allotment for Sugar Derived from Sugar Beets and 
Sugar Derived from Sugarcane.--The overall allotment quantity for the 
crop year shall be allotted between--
        ``(1) sugar derived from sugar beets by establishing a 
    marketing allotment for a crop year at a quantity equal to the 
    product of multiplying the overall allotment quantity for the crop 
    year by 54.35 percent; and
        ``(2) sugar derived from sugarcane by establishing a marketing 
    allotment for a crop year at a quantity equal to the product of 
    multiplying the overall allotment quantity for the crop year by 
    45.65 percent.
    ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
        ``(1) Cane sugar.--Each marketing allotment for cane sugar 
    established under this section may only be filled with sugar 
    processed from domestically grown sugarcane.
        ``(2) Beet sugar.--Each marketing allotment for beet sugar 
    established under this section may only be filled with sugar 
    domestically processed from sugar beets.
    ``(e) State Cane Sugar Allotments.--
        ``(1) In general.--The allotment for sugar derived from 
    sugarcane shall be further allotted, among the States in the United 
    States in which sugarcane is produced, after a hearing (if 
    requested by the affected sugarcane processors and growers) and on 
    such notice as the Secretary by regulation may prescribe, in a fair 
    and equitable manner as provided in this subsection and section 
    359d(b)(1)(D).
        ``(2) Offshore allotment.--
            ``(A) Collectively.--Prior to the allotment of sugar 
        derived from sugarcane to any other State, 325,000 short tons, 
        raw value shall be allotted to the offshore States.
            ``(B) Individually.--The collective offshore State 
        allotment provided for under subparagraph (A) shall be further 
        allotted among the offshore States in which sugarcane is 
        produced, after a hearing (if requested by the affected 
        sugarcane processors and growers) and on such notice as the 
        Secretary by regulation may prescribe, in a fair and equitable 
        manner on the basis of--
                ``(i) past marketings of sugar, based on the average of 
            the 2 highest years of production of raw cane sugar from 
            the 1996 through 2000 crops;
                ``(ii) the ability of processors to market the sugar 
            covered under the allotments for the crop year; and
                ``(iii) past processings of sugar from sugarcane, based 
            on the 3-year average of the 1998 through 2000 crop years.
        ``(3) Mainland allotment.--The allotment for sugar derived from 
    sugarcane, less the amount provided for under paragraph (2), shall 
    be allotted among the mainland States in the United States in which 
    sugarcane is produced, after a hearing (if requested by the 
    affected sugarcane processors and growers) and on such notice as 
    the Secretary by regulation may prescribe, in a fair and equitable 
    manner on the basis of--
            ``(A) past marketings of sugar, based on the average of the 
        2 highest years of production of raw cane sugar from the 1996 
        through 2000 crops;
            ``(B) the ability of processors to market the sugar covered 
        under the allotments for the crop year; and
            ``(C) past processings of sugar from sugarcane, based on 
        the 3 crop years with the greatest processings (in the mainland 
        States collectively) during the 1991 through 2000 crop years.
    ``(f) Filling Cane Sugar Allotments.--Except as provided in section 
359e, a State cane sugar allotment established under subsection (e) for 
a crop year may be filled only with sugar processed from sugarcane 
grown in the State covered by the allotment.
    ``(g) Adjustment of Marketing Allotments.--
        ``(1) In general.--The Secretary shall, based on reestimates 
    under section 359b(a)(3), adjust upward or downward marketing 
    allotments in a fair and equitable manner, as the Secretary 
    determines appropriate, to reflect changes in estimated sugar 
    consumption, stocks, production, or imports.
        ``(2) Allocation to processors.--In the case of any increase or 
    decrease in an allotment, each allocation to a processor of the 
    allotment under section 359d, and each proportionate share 
    established with respect to the allotment under section 359f(c), 
    shall be increased or decreased by the same percentage that the 
    allotment is increased or decreased.
        ``(3) Carry-over of reductions.--Whenever a marketing allotment 
    for a crop year is required to be reduced during the crop year 
    under this subsection, if, at the time of the reduction, the 
    quantity of sugar marketed exceeds the processor's reduced 
    allocation, the allocation of an allotment next established for the 
    processor shall be reduced by the quantity of the excess sugar 
    marketed.
    ``(h) Suspension of Allotments.--Whenever the Secretary estimates 
or reestimates under section 359b(a), or has reason to believe, that 
imports of sugars, syrups or molasses for human consumption or to be 
used for the extraction of sugar for human consumption, whether under a 
tariff-rate quota or in excess or outside of a tariff-rate quota, will 
exceed 1,532,000 short tons (raw value equivalent) (excluding any 
imports attributable to reassignment under paragraph (1)(D) or (2)(C) 
of section 359e(b)), and that the imports would lead to a reduction of 
the overall allotment quantity, the Secretary shall suspend the 
marketing allotments established under this section until such time as 
the imports have been restricted, eliminated, or reduced to or below 
the level of 1,532,000 short tons (raw value equivalent).

``SEC. 359D. ALLOCATION OF MARKETING ALLOTMENTS.

    ``(a) Allocation to Processors.--Whenever marketing allotments are 
established for a crop year under section 359c, in order to afford all 
interested persons an equitable opportunity to market sugar under an 
allotment, the Secretary shall allocate each such allotment among the 
processors covered by the allotment.
    ``(b) Hearing and Notice.--
        ``(1) Cane sugar.--
            ``(A) In general.--The Secretary shall make allocations for 
        cane sugar after a hearing, if requested by the affected 
        sugarcane processors and growers, and on such notice as the 
        Secretary by regulation may prescribe, in such manner and in 
        such quantities as to provide a fair, efficient, and equitable 
        distribution of the allocations under this paragraph. Each such 
        allocation shall be subject to adjustment under section 
        359c(g).
            ``(B) Multiple processor states.--Except as provided in 
        subparagraphs (C) and (D), the Secretary shall allocate the 
        allotment for cane sugar among multiple cane sugar processors 
        in a single State based on--
                ``(i) past marketings of sugar, based on the average of 
            the 2 highest years of production of raw cane sugar from 
            among the 1996 through 2000 crops;
                ``(ii) the ability of processors to market sugar 
            covered by that portion of the allotment allocated for the 
            crop year; and
                ``(iii) past processings of sugar from sugarcane, based 
            on the average of the 3 highest years of production during 
            the 1996 through 2000 crop years.
            ``(C) Talisman processing facility.--In the case of 
        allotments under subparagraph (B) attributable to the 
        operations of the Talisman processing facility before the date 
        of enactment of this subparagraph, the Secretary shall allocate 
        the allotment among processors in the State under subparagraph 
        (A) in accordance with the agreements of March 25 and 26, 1999, 
        between the affected processors and the Secretary of the 
        Interior.
            ``(D) Proportionate share states.--In the case of States 
        subject to section 359f(c), the Secretary shall allocate the 
        allotment for cane sugar among multiple cane sugar processors 
        in a single State based on--
                ``(i) past marketings of sugar, based on the average of 
            the 2 highest years of production of raw cane sugar from 
            among the 1997 through 2001 crop years;
                ``(ii) the ability of processors to market sugar 
            covered by that portion of the allotments allocated for the 
            crop year; and
                ``(iii) past processings of sugar from sugarcane, based 
            on the average of the 2 highest crop years of crop 
            production during the 1997 through 2001 crop years.
            ``(E) New entrants.--
                ``(i) In general.--Notwithstanding subparagraphs (B) 
            and (D), the Secretary, on application of any processor 
            that begins processing sugarcane on or after the date of 
            enactment of this subparagraph, and after a hearing (if 
            requested by the affected sugarcane processors and growers) 
            and on such notice as the Secretary by regulation may 
            prescribe, may provide the processor with an allocation 
            that provides a fair, efficient and equitable distribution 
            of the allocations from the allotment for the State in 
            which the processor is located.
                ``(ii) Proportionate share states.--In the case of 
            proportionate share States, the Secretary shall establish 
            proportionate shares in a quantity sufficient to produce 
            the sugarcane required to satisfy the allocations.
                ``(iii) Limitations.--The allotment for a new processor 
            under this subparagraph shall not exceed--

                    ``(I) in the case of the first crop year of 
                operation of a new processor, 50,000 short tons (raw 
                value); and
                    ``(II) in the case of each subsequent crop year of 
                operation of the new processor, a quantity established 
                by the Secretary in accordance with this subparagraph 
                and the criteria described in subparagraph (B) or (D), 
                as applicable.

                ``(iv) New entrant states.--

                    ``(I) In general.--Notwithstanding subparagraphs 
                (A) and (C) of section 359c(e)(3), to accommodate an 
                allocation under clause (i) to a new processor located 
                in a new entrant mainland State, the Secretary shall 
                provide the new entrant mainland State with an 
                allotment.
                    ``(II) Effect on other allotments.--The allotment 
                to any new entrant mainland State shall be subtracted, 
                on a pro rata basis, from the allotments otherwise 
                allotted to each mainland State under section 
                359c(e)(3).

                ``(v) Adverse effects.--Before providing an initial 
            processor allocation or State allotment to a new entrant 
            processor or a new entrant State under this subparagraph, 
            the Secretary shall take into consideration any adverse 
            effects that the provision of the allocation or allotment 
            may have on existing cane processors and producers in 
            mainland States.
                ``(vi) Ability to market.--Consistent with section 359c 
            and this section, any processor allocation or State 
            allotment made to a new entrant processor or to a new 
            entrant State under this subparagraph shall be provided 
            only after the applicant processor, or the applicable 
            processors in the State, have demonstrated the ability to 
            process, produce, and market (including the transfer or 
            delivery of the raw cane sugar to a refinery for further 
            processing or marketing) raw cane sugar for the crop year 
            for which the allotment is applicable.
                ``(vii) Prohibition.--Not more than 1 processor 
            allocation provided under this subparagraph may be 
            applicable to any individual sugar processing facility.
            ``(F) Transfer of ownership.--Except as otherwise provided 
        in section 359f(c)(8), if a sugarcane processor is sold or 
        otherwise transferred to another owner or is closed as part of 
        an affiliated corporate group processing consolidation, the 
        Secretary shall transfer the allotment allocation for the 
        processor to the purchaser, new owner, successor in interest, 
        or any remaining processor of an affiliated entity, as 
        applicable, of the processor.
        ``(2) Beet sugar.--
            ``(A) In general.--Except as otherwise provided in this 
        paragraph and sections 359c(g), 359e(b), and 359f(b), the 
        Secretary shall make allocations for beet sugar among beet 
        sugar processors for each crop year that allotments are in 
        effect on the basis of the adjusted weighted average quantity 
        of beet sugar produced by the processors for each of the 1998 
        through 2000 crop years, as determined under this paragraph.
            ``(B) Quantity.--The quantity of an allocation made for a 
        beet sugar processor for a crop year under subparagraph (A) 
        shall bear the same ratio to the quantity of allocations made 
        for all beet sugar processors for the crop year as the adjusted 
        weighted average quantity of beet sugar produced by the 
        processor (as determined under subparagraphs (C) and (D)) bears 
        to the total of the adjusted weighted average quantities of 
        beet sugar produced by all processors (as so determined).
            ``(C) Weighted average quantity.--Subject to subparagraph 
        (D), the weighted quantity of beet sugar produced by a beet 
        sugar processor during each of the 1998 through 2000 crop years 
        shall be (as determined by the Secretary)--
                ``(i) in the case of the 1998 crop year, 25 percent of 
            the quantity of beet sugar produced by the processor during 
            the crop year;
                ``(ii) in the case of the 1999 crop year, 35 percent of 
            the quantity of beet sugar produced by the processor during 
            the crop year; and
                ``(iii) in the case of the 2000 crop year, 40 percent 
            of the quantity of beet sugar produced by the processor 
            (including any quantity of sugar received from the 
            Commodity Credit Corporation) during the crop year.
            ``(D) Adjustments.--
                ``(i) In general.--The Secretary shall adjust the 
            weighted average quantity of beet sugar produced by a beet 
            sugar processor during the 1998 through 2000 crop years 
            under subparagraph (C) if the Secretary determines that the 
            processor--

                    ``(I) during the 1996 through 2000 crop years, 
                opened a sugar beet processing factory;
                    ``(II) during the 1998 through 2000 crop years, 
                closed a sugar beet processing factory;
                    ``(III) during the 1998 through 2000 crop years, 
                constructed a molasses desugarization facility; or
                    ``(IV) during the 1998 through 2000 crop years, 
                suffered substantial quality losses on sugar beets 
                stored during any such crop year.

                ``(ii) Quantity.--The quantity of beet sugar produced 
            by a beet sugar processor under subparagraph (C) shall be--

                    ``(I) in the case of a processor that opened a 
                sugar beet processing factory, increased by 1.25 
                percent of the total of the adjusted weighted average 
                quantities of beet sugar produced by all processors 
                during the 1998 through 2000 crop years (without 
                consideration of any adjustment under this 
                subparagraph) for each sugar beet processing factory 
                that is opened by the processor;
                    ``(II) in the case of a processor that closed a 
                sugar beet processing factory, decreased by 1.25 
                percent of the total of the adjusted weighted average 
                quantities of beet sugar produced by all processors 
                during the 1998 through 2000 crop years (without 
                consideration of any adjustment under this 
                subparagraph) for each sugar beet processing factory 
                that is closed by the processor;
                    ``(III) in the case of a processor that constructed 
                a molasses desugarization facility, increased by 0.25 
                percent of the total of the adjusted weighted average 
                quantities of beet sugar produced by all processors 
                during the 1998 through 2000 crop years (without 
                consideration of any adjustment under this 
                subparagraph) for each molasses desugarization facility 
                that is constructed by the processor; and
                    ``(IV) in the case of a processor that suffered 
                substantial quality losses on stored sugar beets, 
                increased by 1.25 percent of the total of the adjusted 
                weighted average quantities of beet sugar produced by 
                all processors during the 1998 through 2000 crop years 
                (without consideration of any adjustment under this 
                subparagraph).

            ``(E) Permanent termination of operations of a processor.--
        If a processor of beet sugar has been dissolved, liquidated in 
        a bankruptcy proceeding, or otherwise has permanently 
        terminated operations (other than in conjunction with a sale or 
        other disposition of the processor or the assets of the 
        processor), the Secretary shall--
                ``(i) eliminate the allocation of the processor 
            provided under this section; and
                ``(ii) distribute the allocation to other beet sugar 
            processors on a pro rata basis.
            ``(F) Sale of all assets of a processor to another 
        processor.--If a processor of beet sugar (or all of the assets 
        of the processor) is sold to another processor of beet sugar, 
        the Secretary shall transfer the allocation of the seller to 
        the buyer unless the allocation has been distributed to other 
        sugar beet processors under subparagraph (E).
            ``(G) Sale of factories of a processor to another 
        processor.--
                ``(i) In general.--Subject to subparagraphs (E) and 
            (F), if 1 or more factories of a processor of beet sugar 
            (but not all of the assets of the processor) are sold to 
            another processor of beet sugar during a crop year, the 
            Secretary shall assign a pro rata portion of the allocation 
            of the seller to the allocation of the buyer to reflect the 
            historical contribution of the production of the sold 
            factory or factories to the total allocation of the seller.
                ``(ii) Application of allocation.--The assignment of 
            the allocation under clause (i) shall apply--

                    ``(I) during the remainder of the crop year during 
                which the sale described in clause (i) occurs (referred 
                to in this subparagraph as the `initial crop year'); 
                and
                    ``(II) each subsequent crop year (referred in this 
                subparagraph as a `subsequent crop year'), subject to 
                clause (iii).

                ``(iii) Subsequent crop years.--

                    ``(I) In general.--The assignment of the allocation 
                under clause (i) shall apply during each subsequent 
                crop year unless the acquired factory or factories 
                continue in operation for less than the initial crop 
                year and the first subsequent crop year.
                    ``(II) Reassignment.--If the acquired factory or 
                factories do not continue in operation for the complete 
                initial crop year and the first subsequent crop year, 
                the Secretary shall reassign the temporary allocation 
                to other processors of beet sugar on a pro rata basis.

                ``(iv) Use of other factories to fill allocation.--If 
            the transferred allocation to the buyer for the purchased 
            factory or factories cannot be filled by the production of 
            the purchased factory or factories for the initial crop 
            year or a subsequent crop year, the remainder of the 
            transferred allocation may be filled by beet sugar produced 
            by the buyer from other factories of the buyer.
            ``(H) New entrants starting production or reopening 
        factories.--
                ``(i) In general.--Except as provided by clause (ii), 
            if an individual or entity that does not have an allocation 
            of beet sugar under this part (referred to in this 
            paragraph as a `new entrant') starts processing sugar beets 
            after the date of enactment of this subparagraph, or 
            acquires and reopens a factory that produced beet sugar 
            during previous crop years that (at the time of 
            acquisition) has no allocation associated with the factory 
            under this part, the Secretary shall--

                    ``(I) assign an allocation for beet sugar to the 
                new entrant that provides a fair and equitable 
                distribution of the allocations for beet sugar; and
                    ``(II) reduce the allocations for beet sugar of all 
                other processors on a pro rata basis to reflect the new 
                allocation.

                ``(ii) Exception.--If a new entrant acquires and 
            reopens a factory that previously produced beet sugar from 
            sugar beets and from sugar beet molasses but the factory 
            last processed sugar beets during the 1997 crop year and 
            the new entrant starts to process sugar beets at such 
            factory after the date of enactment of this clause, the 
            Secretary shall--

                    ``(I) assign an allocation for beet sugar to the 
                new entrant that is not less than the greater of 1.67 
                percent of the total of the adjusted weighted average 
                quantities of beet sugar produced by all processors 
                during the 1998 through 2000 crop years as determined 
                under subsection (b)(2)(C), or 1,500,000 
                hundredweights; and
                    ``(II) reduce the allocations for beet sugar of all 
                other processors on a pro rata basis to reflect the new 
                allocation.

            ``(I) New entrants acquiring ongoing factories with 
        production history.--If a new entrant acquires a factory that 
        has production history during the period of the 1998 through 
        2000 crop years and that is producing beet sugar at the time 
        the allocations are made from a processor that has an 
        allocation of beet sugar, the Secretary shall transfer a 
        portion of the allocation of the seller to the new entrant to 
        reflect the historical contribution of the production of the 
        sold factory to the total allocation of the seller.

``SEC. 359E. REASSIGNMENT OF DEFICITS.

    ``(a) Estimates of Deficits.--At any time allotments are in effect 
under this part, the Secretary, from time to time, shall determine 
whether (in view of then-current inventories of sugar, the estimated 
production of sugar and expected marketings, and other pertinent 
factors) any processor of sugarcane will be unable to market the sugar 
covered by the portion of the State cane sugar allotment allocated to 
the processor and whether any processor of sugar beets will be unable 
to market sugar covered by the portion of the beet sugar allotment 
allocated to the processor.
    ``(b) Reassignment of Deficits.--
        ``(1) Cane sugar.--If the Secretary determines that any 
    sugarcane processor who has been allocated a share of a State cane 
    sugar allotment will be unable to market the processor's allocation 
    of the State's allotment for the crop year--
            ``(A) the Secretary first shall reassign the estimated 
        quantity of the deficit to the allocations for other processors 
        within that State, depending on the capacity of each other 
        processor to fill the portion of the deficit to be assigned to 
        it and taking into account the interests of producers served by 
        the processors;
            ``(B) if after the reassignments the deficit cannot be 
        completely eliminated, the Secretary shall reassign the 
        estimated quantity of the deficit proportionately to the 
        allotments for other cane sugar States, depending on the 
        capacity of each other State to fill the portion of the deficit 
        to be assigned to it, with the reassigned quantity to each 
        State to be allocated among processors in that State in 
        proportion to the allocations of the processors;
            ``(C) if after the reassignments the deficit cannot be 
        completely eliminated, the Secretary shall reassign the 
        estimated quantity of the deficit to the Commodity Credit 
        Corporation and shall sell such quantity of sugar from 
        inventories of the Corporation unless the Secretary determines 
        that such sales would have a significant effect on the price of 
        sugar; and
            ``(D) if after the reassignments and sales, the deficit 
        cannot be completely eliminated, the Secretary shall reassign 
        the remainder to imports.
        ``(2) Beet sugar.--If the Secretary determines that a sugar 
    beet processor who has been allocated a share of the beet sugar 
    allotment will be unable to market that allocation--
            ``(A) the Secretary first shall reassign the estimated 
        quantity of the deficit to the allotments for other sugar beet 
        processors, depending on the capacity of each other processor 
        to fill the portion of the deficit to be assigned to it and 
        taking into account the interests of producers served by the 
        processors;
            ``(B) if after the reassignments the deficit cannot be 
        completely eliminated, the Secretary shall reassign the 
        estimated quantity of the deficit to the Commodity Credit 
        Corporation and shall sell such quantity of sugar from 
        inventories of the Corporation unless the Secretary determines 
        that such sales would have a significant effect on the price of 
        sugar; and
            ``(C) if after the reassignments and sales, the deficit 
        cannot be completely eliminated, the Secretary shall reassign 
        the remainder to imports.
        ``(3) Corresponding increase.--The allocation of each processor 
    receiving a reassigned quantity of an allotment under this 
    subsection for a crop year shall be increased to reflect the 
    reassignment.

``SEC. 359F. PROVISIONS APPLICABLE TO PRODUCERS.

    ``(a) Processor Assurances.--
        ``(1) In general.--If allotments for a crop year are allocated 
    to processors under section 359d, the Secretary shall obtain from 
    the processors such assurances as the Secretary considers adequate 
    that the allocation will be shared among producers served by the 
    processor in a fair and equitable manner that adequately reflects 
    producers' production histories.
        ``(2) Arbitration.--
            ``(A) In general.--Any dispute between a processor and a 
        producer, or group of producers, with respect to the sharing of 
        the allocation to the processor shall be resolved through 
        arbitration by the Secretary on the request of either party.
            ``(B) Period.--The arbitration shall, to the maximum extent 
        practicable, be--
                ``(i) commenced not more than 45 days after the 
            request; and
                ``(ii) completed not more than 60 days after the 
            request.
    ``(b) Sugar Beet Processing Facility Closures.--
        ``(1) In general.--If a sugar beet processing facility is 
    closed and the sugar beet growers that previously delivered beets 
    to the facility elect to deliver their beets to another processing 
    company, the growers may petition the Secretary to modify 
    allocations under this part to allow the delivery.
        ``(2) Increased allocation for processing company.--The 
    Secretary may increase the allocation to the processing company to 
    which the growers elect to deliver their sugar beets, with the 
    approval of the processing company, to a level that does not exceed 
    the processing capacity of the processing company, to accommodate 
    the change in deliveries.
        ``(3) Decreased allocation for closed company.--The increased 
    allocation shall be deducted from the allocation to the company 
    that owned the processing facility that has been closed and the 
    remaining allocation shall be unaffected.
        ``(4) Timing.--The determinations of the Secretary on the 
    issues raised by the petition shall be made within 60 days after 
    the filing of the petition.
    ``(c) Proportionate Shares of Certain Allotments.--
        ``(1) In general.--
            ``(A) States affected.--In any case in which a State 
        allotment is established under section 359c(f) and there are in 
        excess of 250 sugarcane producers in the State (other than 
        Puerto Rico), the Secretary shall make a determination under 
        subparagraph (B).
            ``(B) Determination.--The Secretary shall determine, for 
        each State allotment described in subparagraph (A), whether the 
        production of sugarcane, in the absence of proportionate 
        shares, will be greater than the quantity needed to enable 
        processors to fill the allotment and provide a normal carryover 
        inventory of sugar.
        ``(2) Establishment of proportionate shares.--If the Secretary 
    determines under paragraph (1) that the quantity of sugarcane 
    produced by producers in the area covered by a State allotment for 
    a crop year will be in excess of the quantity needed to enable 
    processors to fill the allotment for the crop year and provide a 
    normal carryover inventory of sugar, the Secretary shall establish 
    a proportionate share for each sugarcane-producing farm that limits 
    the acreage of sugarcane that may be harvested on the farm for 
    sugar or seed during the crop year the allotment is in effect as 
    provided in this subsection. Each such proportionate share shall be 
    subject to adjustment under paragraph (7) and section 359c(g).
        ``(3) Method of determining.--For purposes of determining 
    proportionate shares for any crop of sugarcane:
            ``(A) The Secretary shall establish the State's per-acre 
        yield goal for a crop of sugarcane at a level (not less than 
        the average per-acre yield in the State for the 2 highest years 
        from among the 1999, 2000, and 2001 crop years, as determined 
        by the Secretary) that will ensure an adequate net return per 
        pound to producers in the State, taking into consideration any 
        available production research data that the Secretary considers 
        relevant.
            ``(B) The Secretary shall adjust the per-acre yield goal by 
        the average recovery rate of sugar produced from sugarcane by 
        processors in the State.
            ``(C) The Secretary shall convert the State allotment for 
        the crop year involved into a State acreage allotment for the 
        crop by dividing the State allotment by the per-acre yield goal 
        for the State, as established under subparagraph (A) and as 
        further adjusted under subparagraph (B).
            ``(D) The Secretary shall establish a uniform reduction 
        percentage for the crop by dividing the State acreage 
        allotment, as determined for the crop under subparagraph (C), 
        by the sum of all adjusted acreage bases in the State, as 
        determined by the Secretary.
            ``(E) The uniform reduction percentage for the crop, as 
        determined under subparagraph (D), shall be applied to the 
        acreage base for each sugarcane-producing farm in the State to 
        determine the farm's proportionate share of sugarcane acreage 
        that may be harvested for sugar or seed.
        ``(4) Acreage base.--For purposes of this subsection, the 
    acreage base for each sugarcane-producing farm shall be determined 
    by the Secretary, as follows:
            ``(A) The acreage base for any farm shall be the number of 
        acres that is equal to the average of the acreage planted and 
        considered planted for harvest for sugar or seed on the farm in 
        the 2 highest of the 1999, 2000, and 2001 crop years.
            ``(B) Acreage planted to sugarcane that producers on a farm 
        were unable to harvest to sugarcane for sugar or seed because 
        of drought, flood, other natural disaster, or other condition 
        beyond the control of the producers may be considered as 
        harvested for the production of sugar or seed for purposes of 
        this paragraph.
        ``(5) Violation.--
            ``(A) In general.--Whenever proportionate shares are in 
        effect in a State for a crop of sugarcane, producers on a farm 
        shall not knowingly harvest, or allow to be harvested, for 
        sugar or seed an acreage of sugarcane in excess of the farm's 
        proportionate share for the crop year, or otherwise violate 
        proportionate share regulations issued by the Secretary under 
        section 359h(a).
            ``(B) Determination of violation.--No producer shall be 
        considered to have violated subparagraph (A) unless the 
        processor of the sugarcane harvested by such producer from 
        acreage in excess of the proportionate share of the farm 
        markets an amount of sugar that exceeds the allocation of such 
        processor for a crop year.
            ``(C) Civil penalty.--Any producer on a farm who violates 
        subparagraph (A) by knowingly harvesting, or allowing to be 
        harvested, an acreage of sugarcane in excess of the farm's 
        proportionate share shall be liable to the Commodity Credit 
        Corporation for a civil penalty equal to one and one-half times 
        the United States market value of the quantity of sugar that is 
        marketed by the processor of such sugarcane in excess of the 
        allocation of such processor for the crop year. The Secretary 
        shall prorate penalties imposed under this subparagraph in a 
        fair and equitable manner among all the producers of sugarcane 
        harvested from excess acreage that is acquired by such 
        processor.
        ``(6) Waiver.--Notwithstanding the preceding subparagraph, the 
    Secretary may authorize the county and State committees established 
    under section 8(b) of the Soil Conservation and Domestic Allotment 
    Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
    proportionate share requirements in cases in which lateness or 
    failure to meet the other requirements does not affect adversely 
    the operation of proportionate shares.
        ``(7) Adjustments.--Whenever the Secretary determines that, 
    because of a natural disaster or other condition beyond the control 
    of producers that adversely affects a crop of sugarcane subject to 
    proportionate shares, the amount of sugarcane produced by producers 
    subject to the proportionate shares will not be sufficient to 
    enable processors in the State to meet the State's cane sugar 
    allotment and provide a normal carryover inventory of sugar, the 
    Secretary may uniformly allow producers to harvest an amount of 
    sugarcane in excess of their proportionate share, or suspend 
    proportionate shares entirely, as necessary to enable processors to 
    meet the State allotment and provide a normal carryover inventory 
    of sugar.
        ``(8) Processing facility closures.--
            ``(A) In general.--If a sugarcane processing facility 
        subject to this subsection is closed and the sugarcane growers 
        that delivered sugarcane to the facility prior to closure elect 
        to deliver their sugarcane to another processing company, the 
        growers may petition the Secretary to modify allocations under 
        this part to allow the delivery.
            ``(B) Increased allocation for processing company.--The 
        Secretary may increase the allocation to the processing company 
        to which the growers elect to deliver the sugarcane, with the 
        approval of the processing company, to a level that does not 
        exceed the processing capacity of the processing company, to 
        accommodate the change in deliveries.
            ``(C) Decreased allocation for closed company.--The 
        increased allocation shall be deducted from the allocation to 
        the company that owned the processing facility that has been 
        closed and the remaining allocation shall be unaffected.
            ``(D) Timing.--The determinations of the Secretary on the 
        issues raised by the petition shall be made within 60 days 
        after the filing of the petition.

``SEC. 359G. SPECIAL RULES.

    ``(a) Transfer of Acreage Base History.--For the purpose of 
establishing proportionate shares for sugarcane farms under section 
359f(c), the Secretary, on application of any producer, with the 
written consent of all owners of a farm, may transfer the acreage base 
history of the farm to any other parcels of land of the applicant.
    ``(b) Preservation of Acreage Base History.--If for reasons beyond 
the control of a producer on a farm, the producer is unable to harvest 
an acreage of sugarcane for sugar or seed with respect to all or a 
portion of the proportionate share established for the farm under 
section 359f(c), the Secretary, on the application of the producer and 
with the written consent of all owners of the farm, may preserve for a 
period of not more than 5 consecutive years the acreage base history of 
the farm to the extent of the proportionate share involved. The 
Secretary may permit the proportionate share to be redistributed to 
other farms, but no acreage base history for purposes of establishing 
acreage bases shall accrue to the other farms by virtue of the 
redistribution of the proportionate share.
    ``(c) Revisions of Allocations and Proportionate Shares.--The 
Secretary, after such notice as the Secretary by regulation may 
prescribe, may revise or amend any allocation of a marketing allotment 
under section 359d, or any proportionate share established or adjusted 
for a farm under section 359f(c), on the same basis as the initial 
allocation or proportionate share was required to be established.
    ``(d) Transfers of Mill Allocations.--
        ``(1) Transfer authorized.--A producer in a proportionate share 
    State, upon written consent from all crop-share owners (or the 
    representative of the crop-share owners) of a farm, and from the 
    processing company holding the applicable allocation for such 
    shares, may deliver sugarcane to another processing company if the 
    additional delivery, when combined with such other processing 
    company's existing deliveries, does not exceed the processing 
    capacity of the company.
        ``(2) Allocation adjustment.--Notwithstanding section 359d, the 
    Secretary shall adjust the allocations of each of such processing 
    companies affected by a transfer under paragraph (1) to reflect the 
    change in deliveries, based on the product of--
            ``(A) the number of acres of proportionate shares being 
        transferred; and
            ``(B) the State's per acre yield goal established under 
        section 359f(c)(3).

``SEC. 359H. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S 
              DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED STATES 
              ATTORNEYS.

    ``(a) Regulations.--The Secretary or the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as may be 
necessary to carry out the authority vested in the Secretary in 
administering this part.
    ``(b) Violation.--Any person knowingly violating any regulation of 
the Secretary issued under subsection (a) shall be subject to a civil 
penalty of not more than $5,000 for each violation.
    ``(c) Publication in Federal Register.--Each determination issued 
by the Secretary to establish, adjust, or suspend allotments under this 
part shall be promptly published in the Federal Register and shall be 
accompanied by a statement of the reasons for the determination.
    ``(d) Jurisdiction of Courts; United States Attorneys.--
        ``(1) Jurisdiction of courts.--The several district courts of 
    the United States are vested with jurisdiction specifically to 
    enforce, and to prevent and restrain any person from violating, 
    this part or any regulation issued thereunder.
        ``(2) United states attorneys.--Whenever the Secretary shall so 
    request, it shall be the duty of the several United States 
    attorneys, in their respective districts, to institute proceedings 
    to enforce the remedies and to collect the penalties provided for 
    in this part. The Secretary may elect not to refer to a United 
    States attorney any violation of this part or regulation when the 
    Secretary determines that the administration and enforcement of 
    this part would be adequately served by written notice or warning 
    to any person committing the violation.
    ``(e) Nonexclusivity of Remedies.--The remedies and penalties 
provided for in this part shall be in addition to, and not exclusive 
of, any remedies or penalties existing at law or in equity.

``SEC. 359I. APPEALS.

    ``(a) In General.--An appeal may be taken to the Secretary from any 
decision under section 359d establishing allocations of marketing 
allotments, or under section 359f, by any person adversely affected by 
reason of any such decision.
    ``(b) Procedure.--
        ``(1) Notice of appeal.--Any such appeal shall be taken by 
    filing with the Secretary, within 20 days after the decision 
    complained of is effective, notice in writing of the appeal and a 
    statement of the reasons therefor. Unless a later date is specified 
    by the Secretary as part of the Secretary's decision, the decision 
    complained of shall be considered to be effective as of the date on 
    which announcement of the decision is made. The Secretary shall 
    deliver a copy of any notice of appeal to each person shown by the 
    records of the Secretary to be adversely affected by reason of the 
    decision appealed, and shall at all times thereafter permit any 
    such person to inspect and make copies of appellant's reasons for 
    the appeal and shall on application permit the person to intervene 
    in the appeal.
        ``(2) Hearing.--The Secretary shall provide each appellant an 
    opportunity for a hearing before an administrative law judge in 
    accordance with sections 554 and 556 of title 5, United States 
    Code. The expenses for conducting the hearing shall be reimbursed 
    by the Commodity Credit Corporation.
    ``(c) Special Appeal Process Regarding Beet Sugar Allocations.--
        ``(1) Appeal authorized.--Beginning after the 2006 crop year, a 
    processor that has an allocation of the beet sugar allotment under 
    this part (referred to in this subsection as a `petitioner') may 
    file a notice of appeal with the Secretary regarding the 
    petitioner's beet sugar allocation. Except as provided in paragraph 
    (2), the Secretary shall consider the appeal if the notice alleges 
    that any processor that has a beet sugar allocation has failed to 
    fill at least 82.5 percent of its allocation of the beet sugar 
    allotment with sugar produced by it or received from the Commodity 
    Credit Corporation in 2 out of the 3 crop years preceding the crop 
    year in which the appeal is filed. A processor that is alleged to 
    have failed to fill at least 82.5 percent of its allocation shall 
    be allowed to fully participate in the appeal.
        ``(2) Exceptions.--An appeal under paragraph (1) shall not be 
    based on the failure of a processor to fill at least 82.5 percent 
    of its allocation because of drought, flood, hail, or other weather 
    disaster, as determined by the Secretary. The determination by the 
    Secretary shall not require a formal disaster declaration.
        ``(3) Response to appeal.--Upon the petitioner making an appeal 
    to the Secretary, and upon a review by the Secretary of how 
    processors have filled their allocations, the Secretary may--
            ``(A) assign an increased allocation for beet sugar to the 
        petitioner that provides a fair and equitable distribution of 
        the allocations for beet sugar, taking into account--
                ``(i) production history during the period beginning on 
            April 4, 1996, and through the date of enactment of the 
            Farm Security and Rural Investment Act of 2002;
                ``(ii) capital investment during that period;
                ``(iii) increases in United States sugar consumption; 
            and
                ``(iv) the ability or inability of processors to fill 
            the allocations they have received under this part; and
            ``(B) reduce, correspondingly, the allocation for beet 
        sugar of each processor determined to have failed to fill at 
        least 82.5 percent of its allocation of the beet sugar 
        allotment as described in paragraph (1).
        ``(4) Filing deadline.--For purposes of the filing deadline 
    specified in subsection (b)(1), the 20-day period shall commence on 
    the date on which the Secretary announces the allocations for the 
    subsequent crop year or October 1, whichever is earlier.

``SEC. 359J. ADMINISTRATION.

    ``(a) Use of Certain Agencies.--In carrying out this part, the 
Secretary may use the services of local committees of sugar beet or 
sugarcane producers, sugarcane processors, or sugar beet processors, 
State and county committees established under section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), and the 
departments and agencies of the United States Government.
    ``(b) Use of Commodity Credit Corporation.--The Secretary shall use 
the services, facilities, funds, and authorities of the Commodity 
Credit Corporation to carry out this part.

``SEC. 359K. REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.

    ``(a) In General.--Notwithstanding any other provision of law, on 
or after June 1 of each of the 2002 through 2007 calendar years, the 
United States Trade Representative, in consultation with the Secretary, 
shall determine the amount of the quota of cane sugar used by each 
qualified supplying country for that crop year, and may reallocate the 
unused quota for that crop year among qualified supplying countries.
    ``(b) Qualified Supplying Country Defined.--In this section, the 
term `qualified supplying country' means one of the following foreign 
countries that is allowed to export cane sugar to the United States 
under an agreement or any other country with which the United States 
has an agreement relating to the importation of cane sugar:
            Argentina
            Australia
            Barbados
            Belize
            Bolivia
            Brazil
            Colombia
            Republic of the Congo
            Costa Rica
            Dominican Republic
            Ecuador
            El Salvador
            Fiji
            Gabon
            Guatemala
            Guyana
            Haiti
            Honduras
            India
            Cote D'Ivoire, formerly known as the Ivory Coast
            Jamaica
            Madagascar
            Malawi
            Mauritius
            Mexico
            Mozambique
            Nicaragua
            Panama
            Papua New Guinea
            Paraguay
            Peru
            Philippines
            St. Kitts and Nevis
            South Africa
            Swaziland
            Taiwan
            Thailand
            Trinidad-Tobago
            Uruguay
            Zimbabwe.''.

                           Subtitle E--Dairy

SEC. 1501. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--During the period beginning on June 1, 
2002, and ending on December 31, 2007, the Secretary of Agriculture 
shall support the price of milk produced in the 48 contiguous States 
through the purchase of cheese, butter, and nonfat dry milk produced 
from the milk.
    (b) Rate.--During the period specified in subsection (a), the price 
of milk shall be supported at a rate equal to $9.90 per hundredweight 
for milk containing 3.67 percent butterfat.
    (c) Purchase Prices.--
        (1) Uniform prices.--The support purchase prices under this 
    section for each of the products of milk (butter, cheese, and 
    nonfat dry milk) announced by the Secretary shall be the same for 
    all of that product sold by persons offering to sell the product to 
    the Secretary.
        (2) Sufficient prices.--The purchase prices shall be sufficient 
    to enable plants of average efficiency to pay producers, on 
    average, a price that is not less than the rate of price support 
    for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
        (1) Allocation of purchase prices.--The Secretary may allocate 
    the rate of price support between the purchase prices for nonfat 
    dry milk and butter in a manner that will result in the lowest 
    level of expenditures by the Commodity Credit Corporation or 
    achieve such other objectives as the Secretary considers 
    appropriate. Not later than 10 days after making or changing an 
    allocation, the Secretary shall notify the Committee on Agriculture 
    of the House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate of the allocation. Section 
    553 of title 5, United States Code, shall not apply with respect to 
    the implementation of this section.
        (2) Timing of purchase price adjustments.--The Secretary may 
    make any such adjustments in the purchase prices for nonfat dry 
    milk and butter the Secretary considers to be necessary not more 
    than twice in each calendar year.
    (e) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.

SEC. 1502. NATIONAL DAIRY MARKET LOSS PAYMENTS.

    (a) Definitions.--In this section:
        (1) Class i milk.--The term `Class I milk' means milk 
    (including milk components) classified as Class I milk under a 
    Federal milk marketing order.
        (2) Eligible production.--The term `eligible production' means 
    milk produced by a producer in a participating State.
        (3) Federal milk marketing order.--The term `Federal milk 
    marketing order' means an order issued under section 8c of the 
    Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
    amendments by the Agricultural Marketing Agreement Act of 1937.
        (4) Participating state.--The term `participating State' means 
    each State.
        (5) Producer.--The term `producer' means an individual or 
    entity that directly or indirectly (as determined by the 
    Secretary)--
            (A) shares in the risk of producing milk; and
            (B) makes contributions (including land, labor, management, 
        equipment, or capital) to the dairy farming operation of the 
        individual or entity that are at least commensurate with the 
        share of the individual or entity of the proceeds of the 
        operation.
    (b) Payments.--The Secretary shall offer to enter into contracts 
with producers on a dairy farm located in a participating State under 
which the producers receive payments on eligible production.
    (c) Amount.--Payments to a producer under this section shall be 
calculated by multiplying (as determined by the Secretary)--
        (1) the payment quantity for the producer during the applicable 
    month established under subsection (d);
        (2) the amount equal to--
            (A) $16.94 per hundredweight; less
            (B) the Class I milk price per hundredweight in Boston 
        under the applicable Federal milk marketing order; by
        (3) 45 percent.
    (d) Payment Quantity.--
        (1) In general.--Subject to paragraph (2), the payment quantity 
    for a producer during the applicable month under this section shall 
    be equal to the quantity of eligible production marketed by the 
    producer during the month.
        (2) Limitation.--The payment quantity for all producers on a 
    single dairy operation during the months of the applicable fiscal 
    year for which the producers receive payments under subsection (b) 
    shall not exceed 2,400,000 pounds. For purposes of determining 
    whether producers are producers on separate dairy operations or a 
    single dairy operation, the Secretary shall apply the same 
    standards as were applied in implementing the dairy program under 
    section 805 of the Agriculture, Rural Development, Food and Drug 
    Administration, and Related Agencies Appropriations Act, 2001 (as 
    enacted into law by Public Law 106-387; 114 Stat. 1549A-50).
        (3) Reconstitution.--The Secretary shall promulgate regulations 
    to ensure that a producer does not reconstitute a dairy operation 
    for the sole purpose of receiving additional payments under this 
    section.
    (e) Payments.--A payment under a contract under this section shall 
be made on a monthly basis not later than 60 days after the last day of 
the month for which the payment is made.
    (f) Signup.--The Secretary shall offer to enter into contracts 
under this section during the period beginning on the date that is 60 
days after the date of enactment of this Act and ending on September 
30, 2005.
    (g) Duration of Contract.--
        (1) In general.--Except as provided in paragraph (2) and 
    subsection (h), any contract entered into by producers on a dairy 
    farm under this section shall cover eligible production marketed by 
    the producers on the dairy farm during the period starting with the 
    first day of month the producers on the dairy farm enter into the 
    contract and ending on September 30, 2005.
        (2) Violations.--If a producer violates the contract, the 
    Secretary may--
            (A) terminate the contract and allow the producer to retain 
        any payments received under the contract; or
            (B) allow the contract to remain in effect and require the 
        producer to repay a portion of the payments received under the 
        contract based on the severity of the violation.
    (h) Transition Rule.--In addition to any payment that is otherwise 
available under this section, if the producers on a dairy farm enter 
into a contract under this section, the Secretary shall make a payment 
in accordance with the formula specified in subsection (c) on the 
quantity of eligible production of the producer marketed during the 
period beginning on December 1, 2001, and ending on the last day of the 
month preceding the month the producers on the dairy farm entered into 
the contract.

SEC. 1503. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking 
``2002'' and inserting ``2007''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``1995'' and inserting ``2007''.

SEC. 1504. DAIRY PRODUCT MANDATORY REPORTING.

    Section 272(1) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1637a(1)) is amended--
        (1) by striking ``means manufactured dairy products'' and 
    inserting ``means--
            ``(A) manufactured dairy products'';
        (2) by striking the period at the end and inserting ``; and''; 
    and
        (3) by adding at the end the following:
            ``(B) substantially identical products designated by the 
        Secretary.''.

SEC. 1505. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Definitions.--Section 111 of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4502) is amended--
        (1) in subsection (k), by striking ``and'' at the end;
        (2) in subsection (l), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(m) the term `imported dairy product' means any dairy product 
    that is imported into the United States (as defined in subsection 
    (l)), including dairy products imported into the United States in 
    the form of--
            ``(1) milk, cream, and fresh and dried dairy products;
            ``(2) butter and butterfat mixtures;
            ``(3) cheese; and
            ``(4) casein and mixtures;
        ``(n) the term `importer' means a person that imports an 
    imported dairy product into the United States; and
        ``(o) the term `Customs' means the United States Customs 
    Service.''.
    (b) Representation of Importers on Board.--Section 113(b) of the 
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is 
amended--
        (1) by inserting ``National Dairy Promotion and Research 
    Board.--'' after ``(b)'';
        (2) by designating the first through ninth sentences as 
    paragraphs (1) through (5) and paragraphs (7) through (10), 
    respectively, and indenting the paragraphs appropriately;
        (3) in paragraph (2) (as so designated), by striking 
    ``Members'' and inserting ``Except as provided in paragraph (6), 
    the members'';
        (4) by inserting after paragraph (5) (as so designated) the 
    following:
        ``(6) Importers.--
            ``(A) Initial representation.--In making initial 
        appointments to the Board of importer representatives, the 
        Secretary shall appoint 2 members who represent importers of 
        dairy products and are subject to assessments under the order.
            ``(B) Subsequent representation.--At least once every 3 
        years after the initial appointment of importer representatives 
        under subparagraph (A), the Secretary shall review the average 
        volume of domestic production of dairy products compared to the 
        average volume of imports of dairy products into the United 
        States during the previous 3 years and, on the basis of that 
        review, shall reapportion importer representation on the Board 
        to reflect the proportional share of the United States market 
        by domestic production and imported dairy products.
            ``(C) Additional members; nominations.--The members 
        appointed under this paragraph--
                ``(i) shall be in addition to the total number of 
            members appointed under paragraph (2); and
                ``(ii) shall be appointed from nominations submitted by 
            importers under such procedures as the Secretary determines 
            to be appropriate.''; and
        (5) in paragraph (8) (as so designated), by striking ``is 
    produced'' and inserting ``is produced as well as importers of 
    dairy products''.
    (c) Budgets.--Section 113(e) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(e)) is amended--
        (1) by striking ``(e)'' and inserting:
    ``(e) Budgets.--
        ``(1) Preparation and submission.--'';
        (2) by striking the last sentence; and
        (3) by adding at the end the following:
        ``(2) Foreign market efforts.--The order shall authorize the 
    Board to expend in the maintenance and expansion of foreign markets 
    an amount not to exceed the amount collected from United States 
    producers for a fiscal year. Of those funds, for each of the 2002 
    through 2007 fiscal years, the Board's budget may provide for the 
    expenditure of revenues available to the Board to develop 
    international markets for, and to promote within such markets, the 
    consumption of dairy products produced or manufactured in the 
    United States.''.
    (d) Importer Assessment.--Section 113(g) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--
        (1) by inserting ``Assessments.--'' after ``(g)'';
        (2) by designating the first through fifth sentences as 
    paragraphs (1) through (5), respectively, and indenting 
    appropriately;
        (3) in paragraph (3) (as so designated)--
            (A) by inserting ``for milk produced in the United States 
        and imported dairy products'' after ``The rate of assessment''; 
        and
            (B) by inserting before the period at the end the 
        following: ``, as determined by the Secretary''; and
        (4) by adding at the end the following:
        ``(6) Importers.--
            ``(A) In general.--The order shall provide that each 
        importer of imported dairy products shall pay an assessment to 
        the Board in the manner prescribed by the order.
            ``(B) Time for payment.--The assessment on imported dairy 
        products shall be paid by the importer to Customs at the time 
        the entry documents are filed with Customs. Customs shall remit 
        the assessments to the Board. For purposes of this 
        subparagraph, the term `importer' includes persons who hold 
        title to foreign-produced dairy products immediately upon 
        release by Customs, as well as persons who act on behalf of 
        others, as agents, brokers, or consignees, to secure the 
        release of dairy products from Customs.
            ``(C) Use of assessments on imported dairy products.--
        Assessments collected on imported dairy products shall not be 
        used for foreign market promotion.''.
    (e) Records.--Section 113(k) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by 
striking ``person receiving'' and inserting ``importer of imported 
dairy products, each person receiving''.
    (f) Importer Eligibility To Vote in Referendum.--Section 116(b) of 
the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is 
amended--
        (1) in the first sentence--
            (A) by inserting after ``of producers'' the following: 
        ``and importers''; and
            (B) by inserting after ``the producers'' the following: 
        ``and importers''; and
        (2) in the second sentence, by inserting after ``commercial 
    use'' the following: ``and importers voting in the referendum (who 
    have been engaged in the importation of dairy products during the 
    same representative period, as determined by the Secretary)''.
    (g) Order Implementation and International Trade Obligations.--
Section 112 of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 
4503) is amended by adding at the end the following:
    ``(d) Order Implementation and International Trade Obligations.--
The Secretary, in consultation with the United States Trade 
Representative, shall ensure that the order is implemented in a manner 
consistent with the international trade obligations of the Federal 
Government.''.
    (h) Conforming Amendments To Reflect Addition of Importers.--The 
Dairy Production Stabilization Act of 1983 is amended--
        (1) in section 110(b) (7 U.S.C. 4501(b))--
            (A) in the first sentence--
                (i) by inserting after ``commercial use'' the 
            following: ``and on imported dairy products''; and
                (ii) by striking ``products produced in the United 
            States.'' and inserting ``products.''; and
            (B) in the second sentence, by inserting after ``produce 
        milk'' the following: ``or the right of any person to import 
        dairy products''; and
        (2) in section 111(d) (7 U.S.C. 4502(d)), by striking 
    ``produced in the United States''.

SEC. 1506. FLUID MILK PROMOTION.

    (a) Definition of Fluid Milk Product.--Section 1999C of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking 
paragraph (3) and inserting the following:
        ``(3) Fluid milk product.--The term `fluid milk product' has 
    the meaning given the term in--
            ``(A) section 1000.15 of title 7, Code of Federal 
        Regulations, subject to such amendments as may be made by the 
        Secretary; or
            ``(B) any successor regulation.''.
    (b) Definition of Fluid Milk Processor.--Section 1999C(4) of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by 
striking ``500,000 pounds of fluid milk products in consumer-type 
packages per month'' and inserting ``3,000,000 pounds of fluid milk 
products in consumer-type packages per month (excluding products 
delivered directly to the place of residence of a consumer)''.
    (c) Elimination of Order Termination Date.--Section 1999O of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
        (1) by striking subsection (a); and
        (2) by redesignating subsections (b) and (c) as subsections (a) 
    and (b), respectively.

SEC. 1507. STUDY OF NATIONAL DAIRY POLICY.

    (a) Study Required.--The Secretary of Agriculture shall conduct a 
comprehensive economic evaluation of the potential direct and indirect 
effects of the various elements of the national dairy policy, including 
an examination of the effect of the national dairy policy on--
        (1) farm price stability, farm profitability and viability, and 
    local rural economies in the United States;
        (2) child, senior, and low-income nutrition programs, including 
    impacts on schools and institutions participating in the programs, 
    on program recipients, and other factors; and
        (3) the wholesale and retail cost of fluid milk, dairy farms, 
    and milk utilization.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, 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 the results 
of the study required by this section.
    (c) National Dairy Policy Defined.--In this section, the term 
``national dairy policy'' means the dairy policy of the United States 
as evidenced by the following policies and programs:
        (1) Federal milk marketing orders issued under section 8c of 
    the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
    amendments by the Agricultural Marketing Act of 1937.
        (2) Interstate dairy compacts (including proposed compacts 
    described in H.R. 1827 and S. 1157, as introduced in the 107th 
    Congress).
        (3) Over-order premiums and State pricing programs.
        (4) Direct payments to milk producers.
        (5) Federal milk price support program established under 
    section 1401.
        (6) Export programs regarding milk and dairy products, such as 
    the dairy export incentive program established under section 153 of 
    the Food Security Act of 1985 (15 U.S.C. 713a-14).

SEC. 1508. STUDIES OF EFFECTS OF CHANGES IN APPROACH TO NATIONAL DAIRY 
              POLICY AND FLUID MILK IDENTITY STANDARDS.

    (a) Federal Dairy Policy Changes.--The Secretary of Agriculture 
shall conduct a study of the effects of--
        (1) terminating all Federal programs relating to price support 
    and supply management for milk; and
        (2) granting the consent of Congress to cooperative efforts by 
    States to manage milk prices and supply.
    (b) Fluid Milk Identity Standards.--The Secretary shall conduct a 
study of the effects of including in the standard of identity for fluid 
milk a required minimum protein content that is commensurate with the 
average nonfat solids content of bovine milk produced in the United 
States.
    (c) Reports.--Not later than 1 year after the date of enactment of 
this Act, 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 the results 
of the studies required by this section.

                       Subtitle F--Administration

SEC. 1601. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this title.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--
        (1) In general.--Not later than 90 days 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.
        (2) Procedure.--The promulgation of the regulations and 
    administration of this title shall be made without regard to--
            (A) chapter 35 of title 44, United States Code (commonly 
        know as the ``Paperwork Reduction Act'');
            (B) 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
            (C) the notice and comment provisions of section 553 of 
        title 5, United States Code.
        (3) Congressional review of agency rulemaking.--In carrying out 
    this subsection, the Secretary shall use the authority provided 
    under section 808 of title 5, United States Code.
    (d) Treatment of Advance Payment Option.--The protection that was 
afforded producers that had an option to elect to accelerate the 
receipt of any payment under a production flexibility contract payable 
under the Federal Agriculture Improvement and Reform Act of 1996, as 
provided by section 525 of Public 106-170 (113 Stat. 1928; 7 U.S.C. 
7212 note), shall also apply to the option to receive--
        (1) the advance payment of direct payments and counter-cyclical 
    payments under subtitle A and subtitle C; and
        (2) the single payment of compensation for eligible peanut 
    quota holders under section 1310.
    (e) Adjustment Authority Related to Uruguay Round Compliance.--
        (1) Required determination; adjustment.--If the Secretary 
    determines that expenditures under subtitles A through E that are 
    subject to the total allowable domestic support levels under the 
    Uruguay Round Agreements (as defined in section 2 of the Uruguay 
    Round Agreements Act (19 U.S.C. 3501)), as in effect on the date of 
    enactment of this Act, will exceed such allowable levels for any 
    applicable reporting period, the Secretary shall, to the maximum 
    extent practicable, make adjustments in the amount of such 
    expenditures during that period to ensure that such expenditures do 
    not exceed such allowable levels.
        (2) Congressional notification.--Before making any adjustment 
    under paragraph (1), the Secretary shall submit to the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate and the 
    Committee on Agriculture of the House of Representatives a report 
    describing the determination made under that paragraph and the 
    extent of the adjustment to be made.

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The following provisions 
of the Agricultural Adjustment Act of 1938 shall not be applicable to 
the 2002 through 2007 crops of covered commodities, peanuts, and sugar 
and shall not be applicable to milk during the period beginning on the 
date of enactment of this Act through December 31, 2007:
        (1) Parts II through V of subtitle B of title III (7 U.S.C. 
    1326-1351).
        (2) In the case of upland cotton, section 377 (7 U.S.C. 1377).
        (3) Subtitle D of title III (7 U.S.C. 1379a-1379j).
        (4) Title IV (7 U.S.C. 1401-1407).
    (b) Agricultural Act of 1949.--The following provisions of the 
Agricultural Act of 1949 shall not be applicable to the 2002 through 
2007 crops of covered commodities, peanuts, and sugar and shall not be 
applicable to milk during the period beginning on the date of enactment 
of this Act and through December 31, 2007:
        (1) Section 101 (7 U.S.C. 1441).
        (2) Section 103(a) (7 U.S.C. 1444(a)).
        (3) Section 105 (7 U.S.C. 1444b).
        (4) Section 107 (7 U.S.C. 1445a).
        (5) Section 110 (7 U.S.C. 1445e).
        (6) Section 112 (7 U.S.C. 1445g).
        (7) Section 115 (7 U.S.C. 1445k).
        (8) Section 201 (7 U.S.C. 1446).
        (9) Title III (7 U.S.C. 1447-1449).
        (10) Title IV (7 U.S.C. 1421-1433d), other than sections 404, 
    412, and 416 (7 U.S.C. 1424, 1429, and 1431).
        (11) Title V (7 U.S.C. 1461-1469).
        (12) Title VI (7 U.S.C. 1471-1471j).
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 2002 
through 2007.
    (d) Conforming Amendment.--Section 171(a)(1) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is 
amended by striking ``2002'' the first place appears and inserting 
``2001''.

SEC. 1603. PAYMENT LIMITATIONS.

    (a) Limitation on Amounts Received.--Section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended by striking the section 
heading, ``Sec. 1001.'', and all that follows through the end of 
paragraph (4) and inserting the following:

``SEC. 1001. PAYMENT LIMITATIONS.

    ``(a) Definitions.--In this section:
        ``(1) Covered commodity.--The term `covered commodity' has the 
    meaning given that term in section 1001 of the Farm Security and 
    Rural Investment Act of 2002.
        ``(2) Loan commodity.--The term `loan commodity' has the 
    meaning given that term in section 1001 of the Farm Security and 
    Rural Investment Act of 2002, except that the term does not include 
    wool, mohair, or honey.
        ``(3) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
    ``(b) Limitation on Direct Payments.--
        ``(1) Covered commodities.--The total amount of direct payments 
    made to a person during any crop year under subtitle A of title I 
    of the Farm Security and Rural Investment Act of 2002 for 1 or more 
    covered commodities may not exceed $40,000.
        ``(2) Peanuts.--The total amount of direct payments made to a 
    person during any crop year under subtitle C of title I of the Farm 
    Security and Rural Investment Act of 2002 may not exceed $40,000.
    ``(c) Limitation on Counter-Cyclical Payments.--
        ``(1) Covered commodities.--The total amount of counter-
    cyclical payments made to a person during any crop year under 
    subtitle A of title I of the Farm Security and Rural Investment Act 
    of 2002 for 1 or more covered commodities may not exceed $65,000.
        ``(2) Peanuts.--The total amount of counter-cyclical payments 
    made to a person during any crop year under subtitle C of title I 
    of the Farm Security and Rural Investment Act of 2002 may not 
    exceed $65,000.
    ``(d) Limitation on Marketing Loan Gains and Loan Deficiency 
Payments.--
        ``(1) Loan commodities.--The total amount of the following 
    gains and payments that a person may receive during any crop year 
    may not exceed $75,000:
            ``(A) Any gain realized by a producer from repaying a 
        marketing assistance loan for 1 or more loan commodities under 
        subtitle B of title I of the Farm Security and Rural Investment 
        Act of 2002 at a lower level than the original loan rate 
        established for the loan commodity under that subtitle.
            ``(B) Any loan deficiency payments received for 1 or more 
        loan commodities under that subtitle.
        ``(2) Other commodities.--The total amount of the following 
    gains and payments that a person may receive during any crop year 
    may not exceed $75,000:
            ``(A) Any gain realized by a producer from repaying a 
        marketing assistance loan for peanuts, wool, mohair, or honey 
        under subtitle B or C of title I of the Farm Security and Rural 
        Investment Act of 2002 at a lower level than the original loan 
        rate established for the commodity under those subtitles.
            ``(B) Any loan deficiency payments received for peanuts, 
        wool, mohair, and honey under those subtitles.''.
    (b) Clerical and Conforming Amendments to Section 1001.--Section 
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended--
        (1) in paragraph (5)--
            (A) by striking ``(5)'' and inserting ``(e) Definition of 
        Person.--''
            (B) by redesignating subparagraphs (A) through (E) as 
        paragraphs (1) through (5), respectively;
            (C) in paragraph (1), as so redesignated--
                (i) by redesignating clauses (i) and (ii) as 
            subparagraphs (A) and (B), respectively; and
                (ii) by striking the second sentence; and
            (D) in paragraph (2), as so redesignated--
                (i) by redesignating clause (i) as subparagraph (A) 
            and, in such subparagraph (as so redesignated)--

                    (I) by striking ``subparagraph (A), subject to 
                clause (ii)'' and inserting ``paragraph (1), subject to 
                subparagraph (B)''; and
                    (II) by redesignating subclauses (I), (II), and 
                (III), as clauses (i), (ii), and (iii), respectively;

                (ii) by redesignating clause (ii) as subparagraph (B) 
            and, in such subparagraph (as so redesignated), by 
            redesignating subclauses (I), (II), and (III), as clauses 
            (i), (ii), and (iii), respectively; and
                (iii) by redesignating clause (iii) as subparagraph (C) 
            and, in such subparagraph (as so redesignated)--

                    (I) by striking ``as described in paragraphs (1) 
                and (2)'' and inserting ``as described in subsections 
                (b), (c), and (d)''; and
                    (II) by redesignating subclauses (I) and (II) as 
                clauses (i) and (ii), respectively;

        (2) in paragraph (6), by striking ``(6)'' and inserting ``(f) 
    Public Schools.--''; and
        (3) in paragraph (7), by striking ``(7)'' and inserting ``(g) 
    Time Limits; Reliance.--''.
    (c) Conforming Amendments to Other laws.--
        (1) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 
    1308-1) is amended--
            (A) in subsections (a)(1) and (b)(2)(B), by striking 
        ``section 1001(5)(B)(i)(II)'' and inserting ``section 
        1001(e)(2)(A)(ii)''; and
            (B) in subsections (a)(1) and (b)(1), by striking ``section 
        1001(5)(B)(i)'' and inserting ``section 1001(e)(2)(A)''; and
        (2) Section 1001B of the Food Security Act of 1985 (7 U.S.C. 
    1308-2) is amended by striking ``as described in paragraphs (1) and 
    (2)'' and inserting ``as described in subsections (b), (c), and 
    (d)''.
        (3) Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 
    1308-3(a)) is amended by inserting ``title I of the Farm Security 
    and Rural Investment Act of 2002,'' after ``made available under''.
    (d) Transition.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308), as in effect on the day before the date of the enactment 
of this Act, shall continue to apply with respect to the 2001 crop of 
any covered commodity.

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

    The Food Security Act of 1985 is amended--
        (1) by redesignating section 1001D (7 U.S.C. 1308-4) and 
    section 1001E (7 U.S.C. 1308-5) as sections 1001E and 1001F, 
    respectively; and
        (2) by inserting after section 1001C (7 U.S.C. 1308-3) the 
    following:

``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

    ``(a) Definition of Average Adjusted Gross Income.--
        ``(1) In general.--In this section, the term `average adjusted 
    gross income', with respect to an individual or entity (for 
    purposes of this section, as defined in section 1001(e)(2)(A)(ii)), 
    means the 3-year average of the adjusted gross income or comparable 
    measure of the individual or entity over the 3 preceding tax years, 
    as determined by the Secretary.
        ``(2) Special rules for certain individuals and entities.--In 
    the case of an entity that is not required to file a Federal income 
    tax return or an individual or entity that did not have taxable 
    income in 1 or more of the tax years used to determine the average 
    under paragraph (1), the Secretary shall provide, by regulation, a 
    method for determining the average adjusted gross income of the 
    individual or entity for purposes of this section.
    ``(b) Limitation.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    an individual or entity shall not be eligible to receive any 
    benefit described in paragraph (2) during a crop year if the 
    average adjusted gross income of the individual or entity exceeds 
    $2,500,000, unless not less than 75 percent of the average adjusted 
    gross income of the individual or entity is derived from farming, 
    ranching, or forestry operations, as determined by the Secretary.
        ``(2) Covered benefits.--Paragraph (1) applies with respect to 
    the following:
            ``(A) A direct payment or counter-cyclical payment under 
        subtitle A or C of title I of the Farm Security and Rural 
        Investment Act of 2002.
            ``(B) A marketing loan gain or payment described in section 
        1001(d) of this Act.
            ``(C) A payment under any program under title XII of this 
        Act or title II of the Farm Security and Rural Investment Act 
        of 2002.
    ``(c) Certification.--To comply with the limitation under 
subsection (b), an individual or entity shall provide to the 
Secretary--
        ``(1) a certification by a certified public accountant or 
    another third party that is acceptable to the Secretary that the 
    average adjusted gross income of the individual or entity does not 
    exceed the limitation specified in that subsection; or
        ``(2) information and documentation regarding the adjusted 
    gross income of the individual or entity through other procedures 
    established by the Secretary.
    ``(d) Commensurate Reduction.--In the case of a benefit described 
in subsection (b)(2) made in a crop year to an entity, general 
partnership, or joint venture, the amount of the benefit shall be 
reduced by an amount that is commensurate with the direct and indirect 
ownership interest in the entity, general partnership, or joint venture 
of each individual who has an average adjusted gross income in excess 
of the limitation specified in subsection (b) for the average of the 3 
preceding crop years.
    ``(e) Effective Period.--This section shall apply only during the 
2003 through 2007 crop years.''.

SEC. 1605. COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.

    (a) Establishment.--There is established a commission to be known 
as the ``Commission on the Application of Payment Limitations for 
Agriculture'' (referred to in this section as the ``Commission'').
    (b) Duties.--The Commission shall conduct a study on the potential 
impacts of further payment limitations on the receipt of direct 
payments, counter-cyclical payments, and marketing loan gains and loan 
deficiency payments on--
        (1) farm income;
        (2) land values;
        (3) rural communities;
        (4) agribusiness infrastructure;
        (5) planting decisions of producers affected; and
        (6) supply and prices of covered commodities, loan commodities, 
    specialty crops (including fruits and vegetables), and other 
    agricultural commodities.
    (c) Membership.--
        (1) Composition.--The Commission shall be composed of 10 
    members as follows:
            (A) 3 members appointed by the Secretary.
            (B) 3 members appointed by the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate.
            (C) 3 members appointed by the Committee on Agriculture of 
        the House of Representatives.
            (D) The Chief Economist of the Department of Agriculture.
        (2) Federal government employment.--The membership of the 
    Commission may include 1 or more employees of the Department of 
    Agriculture or other Federal agencies.
        (3) Date of appointments.--The appointment of a member of the 
    Commission shall be made not later than 60 days after the date of 
    enactment of this Act.
        (4) Term; vacancies.--
            (A) Term.--A member shall be appointed for the life of the 
        Commission.
            (B) Vacancies.--A vacancy on the Commission--
                (i) shall not affect the powers of the Commission; and
                (ii) shall be filled in the same manner as the original 
            appointment was made.
        (5) Initial meeting.--Not later than 30 days after the date on 
    which all members of the Commission have been appointed, the 
    Commission shall hold the initial meeting of the Commission.
    (d) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business, but a lesser 
number of members may hold hearings.
    (e) Chairperson.--The Secretary shall appoint 1 of the members of 
the Commission to serve as Chairperson of the Commission.
    (f) Report.--Not later than 1 year after the date of enactment of 
this Act, the Commission shall submit to the President, the Committee 
on Agriculture of the House of Representatives, and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report containing 
the results of the study required by subsection (b), including such 
recommendations as the Commission considers appropriate.
    (g) Hearings.--The Commission may hold such hearings, meet and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this 
section.
    (h) Information From Federal Agencies.--The Commission may secure 
directly from a Federal agency such information as the Commission 
considers necessary to carry out this section. On request of the 
Chairperson of the Commission, the head of the agency shall provide the 
information to the Commission.
    (i) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
agencies of the Federal Government.
    (j) Assistance From Secretary.--The Secretary may provide to the 
Commission appropriate office space and such reasonable administrative 
and support services as the Commission may request.
    (k) Compensation of Members.--
        (1) Non-federal employees.--A member of the Commission who is 
    not an officer or employee of the Federal Government shall be 
    compensated at a rate equal to the daily equivalent of the annual 
    rate of basic pay prescribed for level IV of the Executive Schedule 
    under section 5315 of title 5, United States Code, for each day 
    (including travel time) during which the member is engaged in the 
    performance of the duties of the Commission.
        (2) Federal employees.--A member of the Commission who is an 
    officer or employee of the Federal Government shall serve without 
    compensation in addition to the compensation received for the 
    services of the member as an officer or employee of the Federal 
    Government.
        (3) Travel Expenses.--A member of the Commission shall be 
    allowed travel expenses, including per diem in lieu of subsistence, 
    at rates authorized for an employee of an agency under subchapter I 
    of chapter 57 of title 5, United States Code, while away from the 
    home or regular place of business of the member in the performance 
    of the duties of the Commission.
    (l) Federal Advisory Committee Act.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Commission or any proceeding 
of the Commission.

SEC. 1606. ADJUSTMENTS OF LOANS.

    Section 162(b) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7282(b)) is amended by striking ``this title'' 
and inserting ``this title and title I of the Farm Security and Rural 
Investment Act of 2002''.

SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7284) is amended by striking ``this title'' each 
places it appears and inserting ``this title and title I of the Farm 
Security and Rural Investment Act of 2002''.

SEC. 1608. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
              LOANS.

    Section 166 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7286) is amended--
        (1) in subsection (a), by striking ``subtitle C'' and inserting 
    ``subtitle C of this title and subtitle B and C of title I of the 
    Farm Security and Rural Investment Act of 2002''; and
        (2) in subsection (c)(1), by striking ``subtitle C'' and 
    inserting ``subtitle C of this title and subtitle B and C of title 
    I of the Farm Security and Rural Investment Act of 2002''.

SEC. 1609. COMMODITY CREDIT CORPORATION INVENTORY.

    Section 5 of the Commodity Credit Corporation Charter Act (15 
U.S.C. 714c) is amended in the last sentence by inserting before the 
period at the end the following: ``(including, at the option of the 
Corporation, the use of private sector entities)''.

SEC. 1610. RESERVE STOCK LEVEL.

    Section 301(b)(14)(C) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1301(b)(14)(C)) is amended--
        (1) in clause (i), by striking ``100,000,000'' and inserting 
    ``60,000,000''; and
        (2) in clause (ii), by striking ``15 percent'' and inserting 
    ``10 percent''.

SEC. 1611. FARM RECONSTITUTIONS.

    (a) In General.--Section 316(a)(1)(A)(ii) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1314b(a)(1)(A)(ii)) is amended by 
adding at the end the following: ``Notwithstanding any other provision 
of law, for the 2002 crop only, the Secretary shall allow special farm 
reconstitutions, in lieu of lease and transfer of allotments and 
quotas, under this section, in accordance with such conditions as are 
established by the Secretary.''.
    (b) Study.--
        (1) In general.--The Secretary shall conduct a study on the 
    effects on the limitation on producers to move quota to a farm 
    other than the farm to which the quota was initially assigned under 
    part I of subtitle B of title III of the Agricultural Adjustment 
    Act of 1938 (7 U.S.C. 1311 et seq.).
        (2) Report.--Not later than 90 days after the date of enactment 
    of this Act, 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 on the 
    results of the study.

SEC. 1612. ASSIGNMENT OF PAYMENTS.

    The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of 
payments, shall apply to payments made under the authority of this Act. 
The producer making the assignment, or the assignee, shall provide the 
Secretary with notice, in such manner as the Secretary may require, of 
any assignment made under this section.

SEC. 1613. EQUITABLE RELIEF FROM INELIGIBILITY FOR LOANS, PAYMENTS, OR 
              OTHER BENEFITS.

    (a) Definitions.--In this section:
        (1) Agricultural commodity.--The term ``agricultural 
    commodity'' means any agricultural commodity, food, feed, fiber, or 
    livestock that is subject to a covered program.
        (2) Covered program.--
            (A) In general.--The term ``covered program'' means--
                (i) a program administered by the Secretary under which 
            price or income support, or production or market loss 
            assistance, is provided to producers of agricultural 
            commodities; and
                (ii) a conservation program administered by the 
            Secretary.
            (B) Exclusions.--The term ``covered program'' does not 
        include--
                (i) an agricultural credit program carried out under 
            the Consolidated Farm and Rural Development Act (7 U.S.C. 
            1921 et seq.); or
                (ii) the crop insurance program carried out under the 
            Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
        (3) Participant.--The term ``participant'' means a participant 
    in a covered program.
        (4) State conservationist.--The term ``State Conservationist'' 
    means the State Conservationist with respect to a program 
    administered by the Natural Resources Conservation Service.
        (5) State director.--The term ``State Director'' means the 
    State Executive Director of the Farm Service Agency with respect to 
    a program administered by the Farm Service Agency.
    (b) Equitable Relief.--The Secretary may provide relief to any 
participant that is determined to be not in compliance with the 
requirements of a covered program, and therefore ineligible for a loan, 
payment, or other benefit under the covered program, if the 
participant--
        (1) acting in good faith, relied on the action or advice of the 
    Secretary (including any authorized representative of the 
    Secretary) to the detriment of the participant; or
        (2) failed to comply fully with the requirements of the covered 
    program, but made a good faith effort to comply with the 
    requirements.
    (c) Forms of Relief.--The Secretary may authorize a participant in 
a covered program to--
        (1) retain loans, payments, or other benefits received under 
    the covered program;
        (2) continue to receive loans, payments, and other benefits 
    under the covered program;
        (3) continue to participate, in whole or in part, under any 
    contract executed under the covered program;
        (4) in the case of a conservation program, reenroll all or part 
    of the land covered by the program; and
        (5) receive such other equitable relief as the Secretary 
    determines to be appropriate.
    (d) Remedial Action.--As a condition of receiving relief under this 
section, the Secretary may require the participant to take actions 
designed to remedy any failure to comply with the covered program.
    (e) Equitable Relief by State Directors and State 
Conservationists.--
        (1) In general.--A State Director, in the case of programs 
    administered by the State Director, and the State Conservationist, 
    in the case of programs administered by the State Conservationist, 
    may grant relief to a participant in accordance with subsections 
    (b) through (d) if--
            (A) the amount of loans, payments, and benefits for which 
        relief will be provided to the participant under this 
        subsection is less than $20,000;
            (B) the total amount of loans, payments, and benefits for 
        which relief has been previously provided to the participant 
        under this subsection is not more than $5,000; and
            (C) the total amount of loans, payments, and benefits for 
        which relief is provided to similarly situated participants 
        under this subsection is not more than $1,000,000, as 
        determined by the Secretary.
        (2) Consultation, approval, and reversal.--The decision by a 
    State Director or State Conservationist to grant relief under this 
    subsection--
            (A) shall not require prior approval by the Administrator 
        of the Farm Service Agency, the Chief of the Natural Resources 
        Conservation Service, or any other officer or employee of the 
        Agency or Service;
            (B) shall be made only after consultation with, and the 
        approval of, the Office of General Counsel of the Department of 
        Agriculture; and
            (C) is subject to reversal only by the Secretary (who may 
        not delegate the reversal authority).
        (3) Nonapplicability.--The authority of a State Director or 
    State Conservationist under this subsection does not apply to the 
    administration of--
            (A) payment limitations under--
                (i) sections 1001 through 1001F of the Food Security 
            Act of 1985 (7 U.S.C. 1308 et seq.); or
                (ii) a conservation program administered by the 
            Secretary.
            (B) highly erodible land and wetland conservation 
        requirements under subtitle B or C of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3811 et seq.).
        (4) Other authority.--The authority provided to a State 
    Director and State Conservationist under this subsection is in 
    addition to any other applicable authority and does not limit other 
    authority provided by law or the Secretary.
    (f) Judicial Review.--A discretionary decision by the Secretary, 
the State Director, or the State Conservationist under this section 
shall be final, and shall not be subject to review under chapter 7 of 
title 5, United States Code.
    (g) Reports.--Not later than February 1 of each year, 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 describes for the previous 
calendar year--
        (1) the number of requests for equitable relief under 
    subsections (b) and (e) and the disposition of the requests; and
        (2) the number of requests for equitable relief under section 
    278(d) of the Department of Agriculture Reorganization Act of 1994 
    (7 U.S.C. 6998(d)) and the disposition of the requests.
    (h) Relationship to Other Law.--The authority provided in this 
section is in addition to any other authority provided in this or any 
other Act.
    (i) Finality Rule.--Section 281(a) of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 7001(a)) is amended--
        (1) by striking ``Consolidated Farm Service Agency'' each place 
    it appears and inserting ``Farm Service Agency'';
        (2) in paragraph (1)--
            (A) by striking ``This subsection'' and inserting the 
        following:
            ``(A) In general.--Except as provided in subparagraph (B), 
        this subsection''; and
            (B) by adding at the end the following:
            ``(B) Nonapplicability.--This subsection does not apply 
        to--
                ``(i) a function performed under section 376 of the 
            Consolidated Farm and Rural Development Act; or
                ``(ii) a function performed under a conservation 
            program administered by the Natural Resources Conservation 
            Service.''; and
        (3) in paragraph (2), by inserting ``, before the end of the 
    90-day period,'' after ``unless the decision''.
    (j) Conforming Amendments.--
        (1) Section 326 of the Food and Agriculture Act of 1962 (7 
    U.S.C. 1339a) is repealed.
        (2) Section 278(d) of the Department of Agriculture 
    Reorganization Act of 1994 (7 U.S.C. 6998(d)) is amended in the 
    first sentence by striking ``section 326 of the Food and 
    Agriculture Act of 1962 (7 U.S.C. 1339a)'' and inserting ``section 
    1613 of the Farm Security and Rural Investment Act of 2002''.
        (3) Section 1230A of the Food Security Act of 1985 (16 U.S.C. 
    3830a) is repealed.

SEC. 1614. TRACKING OF BENEFITS.

    As soon as practicable after the date of enactment of this Act, the 
Secretary shall establish procedures to track the benefits provided, 
directly or indirectly, to individuals and entities under titles I and 
II and the amendments made by those titles.

SEC. 1615. ESTIMATES OF NET FARM INCOME.

    In each issuance of projections of net farm income, the Secretary 
shall include (as determined by the Secretary)--
        (1) an estimate of the net farm income earned by commercial 
    producers in the United States; and
        (2) an estimate of the net farm income attributable to 
    commercial producers of each of the following:
            (A) Livestock.
            (B) Loan commodities.
            (C) Agricultural commodities other than loan commodities.

SEC. 1616. AVAILABILITY OF INCENTIVE PAYMENTS FOR CERTAIN PRODUCERS.

    (a) Incentive Payments Required.--Subject to subsection (b), the 
Secretary shall make available a total of $20,000,000 of funds of the 
Commodity Credit Corporation during the 2003 through 2005 crop years to 
provide incentive payments to producers of hard white wheat.
    (b) Conditions on Implementation.--The Secretary shall implement 
subsection (a)--
        (1) only with regard to production that meets minimum quality 
    criteria; and
        (2) on not more than 2,000,000 acres or the equivalent volume 
    of production.
    (c) Demand for Wheat.--To be eligible to obtain an incentive 
payment under subsection (a), a producer shall demonstrate to the 
satisfaction of the Secretary that buyers and end-users are available 
for the wheat to be covered by the incentive payment.

SEC. 1617. RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND CERTAIN 
              EMERGENCY ASSISTANCE TO PERSONS THAT FAILED TO RECEIVE 
              ASSISTANCE UNDER EARLIER AUTHORITIES.

    (a) Authority to Provide Assistance.--The Secretary of Agriculture 
may use such funds of the Commodity Credit Corporation as are necessary 
to provide market loss assistance and other emergency assistance under 
a provision of law specified in subsection (c) to persons that, as 
determined by the Secretary)--
        (1) were eligible to receive the assistance under the provision 
    of law; but
        (2) did not receive the assistance before October 1, 2001.
    (b) Limitation.--The amount of assistance provided under a 
provision of law specified in subsection (c) and this section to a 
person shall not exceed the amount of assistance the person would have 
been eligible to receive under the provision had the claim of the 
producer under the provision been timely resolved.
    (c) Covered Market Loss Assistance Authorities.--The following 
provisions of law are covered by this section:
        (1) Sections 1, 2, 3, 4, and 5 of Public Law 107-25 (115 Stat. 
    201).
        (2) Sections 805, 806, and 814 of the Agriculture, Rural 
    Development, Food and Drug Administration, and Related Agencies 
    Appropriations Act, 2001 (as enacted into law by Public Law 106-
    387; 114 Stat. 1549).
        (3) Sections 201, 202, 204(a), 204(d), 257, and 259 of the 
    Agricultural Risk Protection Act of 2000 (Public Law 106-224; 7 
    U.S.C. 1421 note).
        (4) Sections 802, 803(a), 804, and 805 of the Agriculture, 
    Rural Development, Food and Drug Administration, and Related 
    Agencies Appropriations Act, 2000 (Public Law 106-78; 113 Stat. 
    1135).
        (5) The livestock indemnity program under the heading 
    ``Commodity Credit Corporation Fund'' in chapter 1 of title I of 
    the 1999 Emergency Supplemental Appropriations Act (Public 106-31; 
    113 Stat. 59).
        (6) Section 1111(a) 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; 112 Stat. 2681-44).

SEC. 1618. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN DEFICIENCY 
              PAYMENTS AND MARKETING LOAN GAINS.

    Notwithstanding any other provision of law, the Secretary and the 
Commodity Credit Corporation shall not require producers in Erie 
County, Pennsylvania, to repay loan deficiency payments and marketing 
loan gains erroneously paid or determined to have been earned by the 
Commodity Credit Corporation for certain 1998 and 1999 crops under 
subtitle C of title I of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7231 et seq.). In the case of a producer who has 
already made the repayment on or before the date of the enactment of 
this Act, the Commodity Credit Corporation shall reimburse the producer 
for the full amount of the repayment.

                         TITLE II--CONSERVATION
                   Subtitle A--Conservation Security

SEC. 2001. CONSERVATION SECURITY PROGRAM.

    (a) In General.--Subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3830 et seq.) is amended by inserting after chapter 
1 the following:

       ``CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

             ``Subchapter A--Conservation Security Program

``SEC. 1238. DEFINITIONS.

    ``In this subchapter:
        ``(1) Base payment.--The term `base payment' means an amount 
    that is--
            ``(A) determined in accordance with the rate described in 
        section 1238C(b)(1)(A); and
            ``(B) paid to a producer under a conservation security 
        contract in accordance with clause (i) of subparagraph (C), 
        (D), or (E) of section 1238C(b)(1), as appropriate.
        ``(2) Beginning farmer or rancher.--The term `beginning farmer 
    or rancher' has the meaning given the term under section 343(a) of 
    the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).
        ``(3) Conservation practice.--The term `conservation practice' 
    means a conservation farming practice described in section 
    1238A(d)(4) that--
            ``(A) requires planning, implementation, management, and 
        maintenance; and
            ``(B) promotes 1 or more of the purposes described in 
        section 1238A(a).
        ``(4) Conservation security contract.--The term `conservation 
    security contract' means a contract described in section 1238A(e).
        ``(5) Conservation security plan.--The term `conservation 
    security plan' means a plan described in section 1238A(c).
        ``(6) Conservation security program.--The term `conservation 
    security program' means the program established under section 
    1238A(a).
        ``(7) Enhanced payment.--The term `enhanced payment' means the 
    amount paid to a producer under a conservation security contract 
    that is equal to the amount described in section 
    1238C(b)(1)(C)(iii).
        ``(8) Nondegradation standard.--The term `nondegradation 
    standard' means the level of measures required to adequately 
    protect, and prevent degradation of, 1 or more natural resources, 
    as determined by the Secretary in accordance with the quality 
    criteria described in handbooks of the Natural Resources 
    Conservation Service.
        ``(9) Producer.--
            ``(A) In general.--The term `producer' means an owner, 
        operator, landlord, tenant, or sharecropper that--
                ``(i) shares in the risk of producing any crop or 
            livestock; and
                ``(ii) is entitled to share in the crop or livestock 
            available for marketing from a farm (or would have shared 
            had the crop or livestock been produced).
            ``(B) Hybrid seed growers.--In determining whether a grower 
        of hybrid seed is a producer, the Secretary shall not take into 
        consideration the existence of a hybrid seed contract.
        ``(10) Resource-conserving crop rotation.--The term `resource-
    conserving crop rotation' means a crop rotation that--
            ``(A) includes at least 1 resource-conserving crop (as 
        defined by the Secretary);
            ``(B) reduces erosion;
            ``(C) improves soil fertility and tilth;
            ``(D) interrupts pest cycles; and
            ``(E) in applicable areas, reduces depletion of soil 
        moisture (or otherwise reduces the need for irrigation).
        ``(11) Resource management system.--The term `resource 
    management system' means a system of conservation practices and 
    management relating to land or water use that is designed to 
    prevent resource degradation and permit sustained use of land, 
    water, and other natural resources, as defined in accordance with 
    the technical guide of the Natural Resources Conservation Service.
        ``(12) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture, acting through the Chief of the Natural Resources 
    Conservation Service.
        ``(13) Tier i conservation security contract.--The term `Tier I 
    conservation security contract' means a contract described in 
    section 1238A(d)(5)(A).
        ``(14) Tier ii conservation security contract.--The term `Tier 
    II conservation security contract' means a contract described in 
    section 1238A(d)(5)(B).
        ``(15) Tier iii conservation security contract.--The term `Tier 
    III conservation security contract' means a contract described in 
    section 1238A(d)(5)(C).

``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--The Secretary shall establish and, for each of 
fiscal years 2003 through 2007, carry out a conservation security 
program to assist producers of agricultural operations in promoting, as 
is applicable with respect to land to be enrolled in the program, 
conservation and improvement of the quality of soil, water, air, 
energy, plant and animal life, and any other conservation purposes, as 
determined by the Secretary.
    ``(b) Eligibility.--
        ``(1) Eligible producers.--To be eligible to participate in the 
    conservation security program (other than to receive technical 
    assistance under section 1238C(g) for the development of 
    conservation security contracts), a producer shall--
            ``(A) develop and submit to the Secretary, and obtain the 
        approval of the Secretary of, a conservation security plan that 
        meets the requirements of subsection (c)(1); and
            ``(B) enter into a conservation security contract with the 
        Secretary to carry out the conservation security plan.
        ``(2) Eligible land.--Except as provided in paragraph (3), 
    private agricultural land (including cropland, grassland, prairie 
    land, improved pasture land, and rangeland), land under the 
    jurisdiction of an Indian tribe (as defined by the Secretary), and 
    forested land that is an incidental part of an agricultural 
    operation shall be eligible for enrollment in the conservation 
    security program.
        ``(3) Exclusions.--
            ``(A) Conservation reserve program.--Land enrolled in the 
        conservation reserve program under subchapter B of chapter 1 
        shall not be eligible for enrollment in the conservation 
        security program.
            ``(B) Wetlands reserve program.--Land enrolled in the 
        wetlands reserve program established under subchapter C of 
        chapter 1 shall not be eligible for enrollment in the 
        conservation security program.
            ``(C) Grassland reserve program.--Land enrolled in the 
        grassland reserve program established under subchapter C of 
        chapter 2 shall not be eligible for enrollment in the 
        conservation security program.
            ``(D) Conversion to cropland.--Land that is used for crop 
        production after the date of enactment of this subchapter that 
        had not been planted, considered to be planted, or devoted to 
        crop production for at least 4 of the 6 years preceding that 
        date (except for land enrolled in the conservation reserve 
        program under subchapter B of chapter 1) or that has been 
        maintained using long-term crop rotation practices, as 
        determined by the Secretary, shall not be the basis for any 
        payment under the conservation security program.
        ``(4) Economic uses.--The Secretary shall permit a producer to 
    implement, with respect to all eligible land covered by a 
    conservation security plan, economic uses that--
            ``(A) maintain the agricultural nature of the land; and
            ``(B) are consistent with the natural resource and 
        conservation objectives of the conservation security program.
    ``(c) Conservation Security Plans.--
        ``(1) In general.--A conservation security plan shall--
            ``(A) identify the designated land and resources to be 
        conserved under the conservation security plan;
            ``(B) describe the tier of conservation security contract, 
        and the particular conservation practices to be implemented, 
        maintained, or improved, in accordance with subsection (d) on 
        the land covered by the conservation security contract for the 
        specified term; and
            ``(C) contain a schedule for the implementation, 
        maintenance, or improvement of the conservation practices 
        described in the conservation security plan during the term of 
        the conservation security contract.
        ``(2) Resource planning.--The Secretary may assist producers 
    that enter into conservation security contracts in developing a 
    comprehensive, long-term strategy for improving and maintaining all 
    natural resources of the agricultural operation of the producer.
    ``(d) Conservation Contracts and Practices.--
        ``(1) In general.--
            ``(A) Establishment of tiers.--The Secretary shall 
        establish, and offer to eligible producers, 3 tiers of 
        conservation contracts under which a payment under this 
        subchapter may be received.
            ``(B) Eligible conservation practices.--
                ``(i) In general.--The Secretary shall make eligible 
            for payment under a conservation security contract land 
            management, vegetative, and structural practices.
                ``(ii) Determination.--In determining the eligibility 
            of a practice described in clause (i), the Secretary shall 
            require, to the maximum extent practicable, that the lowest 
            cost alternatives be used to fulfill the purposes of the 
            conservation security plan, as determined by the Secretary.
        ``(2) On-farm research and demonstration or pilot testing.--
    With respect to land enrolled in the conservation security program, 
    the Secretary may approve a conservation security plan that 
    includes--
            ``(A) on-farm conservation research and demonstration 
        activities; and
            ``(B) pilot testing of new technologies or innovative 
        conservation practices.
        ``(3) Use of handbook and guides; state and local conservation 
    concerns.--
            ``(A) Use of handbook and guides.--In determining eligible 
        conservation practices and the criteria for implementing or 
        maintaining the conservation practices under the conservation 
        security program, the Secretary shall use the National Handbook 
        of Conservation Practices of the Natural Resources Conservation 
        Service.
            ``(B) State and local conservation priorities.--The 
        conservation priorities of a State or locality in which an 
        agricultural operation is situated shall be determined by the 
        State Conservationist, in consultation with--
                ``(i) the State technical committee established under 
            subtitle G; and
                ``(ii) local agricultural producers and conservation 
            working groups.
        ``(4) Conservation practices.--Conservation practices that may 
    be implemented by a producer under a conservation security contract 
    (as appropriate for the agricultural operation of a producer) 
    include--
            ``(A) nutrient management;
            ``(B) integrated pest management;
            ``(C) water conservation (including through irrigation) and 
        water quality management;
            ``(D) grazing, pasture, and rangeland management;
            ``(E) soil conservation, quality, and residue management;
            ``(F) invasive species management;
            ``(G) fish and wildlife habitat conservation, restoration, 
        and management;
            ``(H) air quality management;
            ``(I) energy conservation measures;
            ``(J) biological resource conservation and regeneration;
            ``(K) contour farming;
            ``(L) strip cropping;
            ``(M) cover cropping;
            ``(N) controlled rotational grazing;
            ``(O) resource-conserving crop rotation;
            ``(P) conversion of portions of cropland from a soil-
        depleting use to a soil-conserving use, including production of 
        cover crops;
            ``(Q) partial field conservation practices;
            ``(R) native grassland and prairie protection and 
        restoration; and
            ``(S) any other conservation practices that the Secretary 
        determines to be appropriate and comparable to other 
        conservation practices described in this paragraph.
        ``(5) Tiers.--Subject to paragraph (6), to carry out this 
    subsection, the Secretary shall establish the following 3 tiers of 
    conservation contracts:
            ``(A) Tier i conservation security contracts.--A 
        conservation security plan for land enrolled under a Tier I 
        conservation security contract shall--
                ``(i) be for a period of 5 years; and
                ``(ii) include conservation practices appropriate for 
            the agricultural operation, that, at a minimum (as 
            determined by the Secretary)--

                    ``(I) address at least 1 significant resource of 
                concern for the enrolled portion of the agricultural 
                operation at a level that meets the appropriate 
                nondegradation standard; and
                    ``(II) cover active management of conservation 
                practices that are implemented or maintained under the 
                conservation security contract.

            ``(B) Tier ii conservation security contracts.--A 
        conservation security plan for land enrolled under a Tier II 
        conservation security contract shall--
                ``(i) be for a period of not less than 5 nor more than 
            10 years, as determined by the producer;
                ``(ii) include conservation practices appropriate for 
            the agricultural operation, that, at a minimum--

                    ``(I) address at least 1 significant resource of 
                concern for the entire agricultural operation, as 
                determined by the Secretary, at a level that meets the 
                appropriate nondegradation standard; and
                    ``(II) cover active management of conservation 
                practices that are implemented or maintained under the 
                conservation security contract.

            ``(C) Tier iii conservation security contracts.--A 
        conservation security plan for land enrolled under a Tier III 
        conservation security contract shall--
                ``(i) be for a period of not less than 5 nor more than 
            10 years, as determined by the producer; and
                ``(ii) include conservation practices appropriate for 
            the agricultural operation that, at a minimum--

                    ``(I) apply a resource management system that meets 
                the appropriate nondegradation standard for all 
                resources of concern of the entire agricultural 
                operation, as determined by the Secretary; and
                    ``(II) cover active management of conservation 
                practices that are implemented or maintained under the 
                conservation security contract.

        ``(6) Minimum requirements.--The minimum requirements for each 
    tier of conservation contracts implemented under paragraph (5) 
    shall be determined and approved by the Secretary.
    ``(e) Conservation Security Contracts.--
        ``(1) In general.--On approval of a conservation security plan 
    of a producer, the Secretary shall enter into a conservation 
    security contract with the producer to enroll the land covered by 
    the conservation security plan in the conservation security 
    program.
        ``(2) Modification.--
            ``(A) Optional modifications.--A producer may apply to the 
        Secretary for a modification of the conservation security 
        contract of the producer that is consistent with the purposes 
        of the conservation security program.
            ``(B) Other modifications.--
                ``(i) In general.--The Secretary may, in writing, 
            require a producer to modify a conservation security 
            contract before the expiration of the conservation security 
            contract if the Secretary determines that a change made to 
            the type, size, management, or other aspect of the 
            agricultural operation of the producer would, without the 
            modification of the contract, significantly interfere with 
            achieving the purposes of the conservation security 
            program.
                ``(ii) Participation in other programs.--If appropriate 
            payment reductions and other adjustments (as determined by 
            the Secretary) are made to the conservation security 
            contract of a producer, the producer may--

                    ``(I) simultaneously participate in--

                        ``(aa) the conservation security program;
                        ``(bb) the conservation reserve program under 
                    subchapter B of chapter 1; and
                        ``(cc) the wetlands reserve program under 
                    subchapter C of chapter 1; and

                    ``(II) may remove land enrolled in the conservation 
                security program for enrollment in a program described 
                in item (bb) or (cc) of subclause (I).

        ``(3) Termination.--
            ``(A) Optional termination.--A producer may terminate a 
        conservation security contract and retain payments received 
        under the conservation security contract, if--
                ``(i) the producer is in full compliance with the terms 
            and conditions (including any maintenance requirements) of 
            the conservation security contract as of the date of the 
            termination; and
                ``(ii) the Secretary determines that termination of the 
            contract would not defeat the purposes of the conservation 
            security plan of the producer.
            ``(B) Other termination.--A producer that is required to 
        modify a conservation security contract under paragraph 
        (2)(B)(i) may, in lieu of modifying the contract--
                ``(i) terminate the conservation security contract; and
                ``(ii) retain payments received under the conservation 
            security contract, if the producer has fully complied with 
            the terms and conditions of the conservation security 
            contract before termination of the contract, as determined 
            by the Secretary.
        ``(4) Renewal.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        at the option of a producer, the conservation security contract 
        of the producer may be renewed for an additional period of not 
        less than 5 nor more than 10 years.
            ``(B) Tier i renewals.--In the case of a Tier I 
        conservation security contract of a producer, the producer may 
        renew the contract only if the producer agrees--
                ``(i) to apply additional conservation practices that 
            meet the nondegradation standard on land already enrolled 
            in the conservation security program; or
                ``(ii) to adopt new conservation practices with respect 
            to another portion of the agricultural operation that 
            address resource concerns and meet the nondegradation 
            standard under the terms of the Tier I conservation 
            security contract.
    ``(f) Noncompliance Due to Circumstances Beyond the Control of 
Producers.--The Secretary shall include in the conservation security 
contract a provision, and may permit modification of a conservation 
security contract under subsection (e)(1), to ensure that a producer 
shall not be considered in violation of a conservation security 
contract for failure to comply with the conservation security contract 
due to circumstances beyond the control of the producer, including a 
disaster or related condition, as determined by the Secretary.

``SEC. 1238B. DUTIES OF PRODUCERS.

    ``Under a conservation security contract, a producer shall agree, 
during the term of the conservation security contract--
        ``(1) to implement the applicable conservation security plan 
    approved by the Secretary;
        ``(2) to maintain, and make available to the Secretary at such 
    times as the Secretary may request, appropriate records showing the 
    effective and timely implementation of the conservation security 
    plan;
        ``(3) not to engage in any activity that would interfere with 
    the purposes of the conservation security program; and
        ``(4) on the violation of a term or condition of the 
    conservation security contract--
            ``(A) if the Secretary determines that the violation 
        warrants termination of the conservation security contract--
                ``(i) to forfeit all rights to receive payments under 
            the conservation security contract; and
                ``(ii) to refund to the Secretary all or a portion of 
            the payments received by the producer under the 
            conservation security contract, including any advance 
            payments and interest on the payments, as determined by the 
            Secretary; or
            ``(B) if the Secretary determines that the violation does 
        not warrant termination of the conservation security contract, 
        to refund to the Secretary, or accept adjustments to, the 
        payments provided to the producer, as the Secretary determines 
        to be appropriate.

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

    ``(a) Timing of Payments.--The Secretary shall make payments under 
a conservation security contract as soon as practicable after October 1 
of each fiscal year.
    ``(b) Annual Payments.--
        ``(1) Criteria for determining amount of payments.--
            ``(A) Base payment.--A base payment under this paragraph 
        shall be (as determined by the Secretary)--
                ``(i) the average national per-acre rental rate for a 
            specific land use during the 2001 crop year; or
                ``(ii) another appropriate rate for the 2001 crop year 
            that ensures regional equity.
            ``(B) Payments.--A payment for a conservation practice 
        under this paragraph shall be determined in accordance with 
        subparagraphs (C) through (E).
            ``(C) Tier i conservation security contracts.--The payment 
        for a Tier I conservation security contract shall consist of 
        the total of the following amounts:
                ``(i) An amount equal to 5 percent of the applicable 
            base payment for land covered by the contract.
                ``(ii) An amount that does not exceed 75 percent (or, 
            in the case of a beginning farmer or rancher, 90 percent) 
            of the average county costs of practices for the 2001 crop 
            year that are included in the conservation security 
            contract, as determined by the Secretary, including the 
            costs of--

                    ``(I) the adoption of new management, vegetative, 
                and land-based structural practices;
                    ``(II) the maintenance of existing land management 
                and vegetative practices; and
                    ``(III) the maintenance of existing land-based 
                structural practices that are approved by the Secretary 
                but not already covered by a Federal or State 
                maintenance requirement.

                ``(iii) An enhanced payment that is determined by the 
            Secretary in a manner that ensures equity across regions of 
            the United States, if the producer--

                    ``(I) implements or maintains multiple conservation 
                practices that exceed minimum requirements for the 
                applicable tier of participation (including practices 
                that involve a change in land use, such as resource-
                conserving crop rotation, managed rotational grazing, 
                or conservation buffer practices);
                    ``(II) addresses local conservation priorities in 
                addition to resources of concern for the agricultural 
                operation;
                    ``(III) participates in an on-farm conservation 
                research, demonstration, or pilot project;
                    ``(IV) participates in a watershed or regional 
                resource conservation plan that involves at least 75 
                percent of producers in a targeted area; or
                    ``(V) carries out assessment and evaluation 
                activities relating to practices included in a 
                conservation security plan.

            ``(D) Tier ii conservation security contracts.--The payment 
        for a Tier II conservation security contract shall consist of 
        the total of the following amounts:
                ``(i) An amount equal to 10 percent of the applicable 
            base payment for land covered by the conservation security 
            contract.
                ``(ii) An amount that does not exceed 75 percent (or, 
            in the case of a beginning farmer or rancher, 90 percent) 
            of the average county cost of adopting or maintaining 
            practices for the 2001 crop year that are included in the 
            conservation security contract, as described in 
            subparagraph (C)(ii).
                ``(iii) An enhanced payment that is determined in 
            accordance with subparagraph (C)(iii).
            ``(E) Tier iii conservation security contracts.--The 
        payment for a Tier III conservation security contract shall 
        consist of the total of the following amounts:
                ``(i) An amount equal to 15 percent of the base payment 
            for land covered by the conservation security contract.
                ``(ii) An amount that does not exceed 75 percent (or, 
            in the case of a beginning farmer or rancher, 90 percent) 
            of the average county cost of adopting or maintaining 
            practices for the 2001 crop year that are included in the 
            conservation security contract, as described in 
            subparagraph (C)(ii).
                ``(iii) An enhanced payment that is determined in 
            accordance with subparagraph (C)(iii).
        ``(2) Limitation on payments.--
            ``(A) In general.--Subject to paragraphs (1) and (3), the 
        Secretary shall make an annual payment, directly or indirectly, 
        to an individual or entity covered by a conservation security 
        contract in an amount not to exceed--
                ``(i) in the case of a Tier I conservation security 
            contract, $20,000;
                ``(ii) in the case of a Tier II conservation security 
            contract, $35,000; or
                ``(iii) in the case of a Tier III conservation security 
            contract, $45,000.
            ``(B) Limitation on base payments.--In applying the payment 
        limitation under each of clauses (i), (ii), and (iii) of 
        subparagraph (A), an individual or entity may not receive, 
        directly or indirectly, payments described in clause (i) of 
        paragraph (1)(C), (1)(D), or (1)(E), as appropriate, in an 
        amount that exceeds--
                ``(i) in the case of Tier I contracts, 25 percent of 
            the applicable payment limitation; or
                ``(ii) in the case of Tier II contracts and Tier III 
            contracts, 30 percent of the applicable payment limitation.
            ``(C) Other usda payments.--A producer shall not receive 
        payments under the conservation security program and any other 
        conservation program administered by the Secretary for the same 
        practices on the same land.
            ``(D) Commensurate share.--To be eligible to receive a 
        payment under this subchapter, an individual or entity shall 
        make contributions (including contributions of land, labor, 
        management, equipment, or capital) to the operation of the farm 
        that are at least commensurate with the share of the proceeds 
        of the operation of the individual or entity.
        ``(3) Equipment or facilities.--A payment to a producer under 
    this subchapter shall not be provided for--
            ``(A) construction or maintenance of animal waste storage 
        or treatment facilities or associated waste transport or 
        transfer devices for animal feeding operations; or
            ``(B) the purchase or maintenance of equipment or a non-
        land based structure that is not integral to a land-based 
        practice, as determined by the Secretary.
    ``(c) Minimum Practice Requirement.--In determining a payment under 
subsection (b) for a producer that receives a payment under another 
program administered by the Secretary that is contingent on complying 
with requirements under subtitle B or C (relating to the use of highly 
erodible land or wetland), a payment under this subchapter on land 
subject to those requirements shall be for practices only to the extent 
that the practices exceed minimum requirements for the producer under 
those subtitles, as determined by the Secretary.
    ``(d) Regulations.--The Secretary shall promulgate regulations 
that--
        ``(1) provide for adequate safeguards to protect the interests 
    of tenants and sharecroppers, including provision for sharing 
    payments, on a fair and equitable basis; and
        ``(2) prescribe such other rules as the Secretary determines to 
    be necessary to ensure a fair and reasonable application of the 
    limitations established under subsection (b).
    ``(e) Transfer or Change of Interest in Land Subject to 
Conservation Security Contract.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    transfer, or change in the interest, of a producer in land subject 
    to a conservation security contract shall result in the termination 
    of the conservation security contract.
        ``(2) Transfer of duties and rights.--Paragraph (1) shall not 
    apply if, not later than 60 days after the date of the transfer or 
    change in the interest in land, the transferee of the land provides 
    written notice to the Secretary that all duties and rights under 
    the conservation security contract have been transferred to, and 
    assumed by, the transferee.
    ``(f) Enrollment Procedure.--In entering into conservation security 
contracts with producers under this subchapter, the Secretary shall not 
use competitive bidding or any similar procedure.
    ``(g) Technical Assistance.--For each of fiscal years 2003 through 
2007, the Secretary shall provide technical assistance to producers for 
the development and implementation of conservation security contracts, 
in an amount not to exceed 15 percent of amounts expended for the 
fiscal year.''.
    (b) Regulations.--Not later than 270 days after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
regulations implementing the amendment made by subsection (a).

SEC. 2002. CONSERVATION COMPLIANCE.

    (a) Highly Erodible Land.--Section 1211 of the Food Security Act of 
1985 (16 U.S.C. 3811) is amended--
        (1) by striking the section heading and all that follows 
    through ``Except as provided in'' and inserting the following:

``SEC. 1211. PROGRAM INELIGIBILITY.

    ``(a) In General.--Except as provided in''; and
        (2) by adding at the end the following:
    ``(b) Highly Erodible Land.--The Secretary shall have, and shall 
not delegate to any private person or entity, authority to determine 
whether a person has complied with this subtitle.''.
    (b) Wetland.--Section 1221 of the Food Security Act of 1985 (16 
U.S.C. 3821) is amended by adding at the end the following:
    ``(e) Wetland.--The Secretary shall have, and shall not delegate to 
any private person or entity, authority to determine whether a person 
has complied with this subtitle.''.

SEC. 2003. PARTNERSHIPS AND COOPERATION.

    Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is 
amended by adding at the end the following:
    ``(f) Partnerships and Cooperation.--
        ``(1) In general.--In carrying out any program under subtitle 
    D, the Secretary may use resources provided under that subtitle to 
    enter into stewardship agreements with State and local agencies, 
    Indian tribes, and nongovernmental organizations and to designate 
    special projects, as recommended by the State Conservationist, 
    after consultation with the State technical committee, to enhance 
    technical and financial assistance provided to owners, operators, 
    and producers to address natural resource issues related to 
    agricultural production.
        ``(2) Criteria for special projects.--The purposes of special 
    projects carried out under this subsection shall be to encourage--
            ``(A) producers to cooperate in the installation and 
        maintenance of conservation practices that affect multiple 
        agricultural operations;
            ``(B) the sharing of information and technical and 
        financial resources among producers;
            ``(C) cumulative conservation benefits in geographic areas; 
        and
            ``(D) the development and demonstration of innovative 
        conservation methods.
        ``(3) Incentives.--To realize the purposes of the special 
    projects under paragraph (1), the Secretary may provide special 
    incentives to owners, operators, and producers participating in the 
    special projects to encourage partnerships and enrollments of 
    optimal conservation value.
        ``(4) Flexibility.--
            ``(A) In general.--The Secretary may enter into stewardship 
        agreements with States (including State agencies and units of 
        local government), Indian tribes, and nongovernmental 
        organizations that have a history of working with agricultural 
        producers to allow greater flexibility to adjust the 
        application of eligibility criteria, approved practices, 
        innovative conservation practices, and other elements of the 
        programs under this title to better reflect unique local 
        circumstances and purposes in a manner that is consistent 
        with--
                ``(i) conservation enhancement and long-term 
            productivity of the natural resource base; and
                ``(ii) the purposes and requirements of this title.
            ``(B) Plan.--Each party to a stewardship agreement under 
        subparagraph (A) shall submit to the Secretary, for approval by 
        the Secretary, a special project area plan for each program to 
        be carried out by the party that includes--
                ``(i) a description of the requested resources and 
            adjustments to program implementation (including a 
            description of how those adjustments will accelerate the 
            achievement of conservation benefits);
                ``(ii) an analysis of the contribution those 
            adjustments will make to the effectiveness of programs in 
            achieving the purposes of the special project;
                ``(iii) a timetable for reevaluating the need for or 
            performance of the proposed adjustments;
                ``(iv) a description of non-Federal programs and 
            resources that will contribute to achieving the purposes of 
            the special project; and
                ``(v) a plan for the evaluation of progress toward the 
            purposes of the special project.
        ``(5) Funding.--
            ``(A) In general.--In addition to resources from programs 
        under subtitle D, subject to subparagraph (B), the Secretary 
        shall use not more than 5 percent of the funds made available 
        for each fiscal year under section 1241(a) to carry out 
        activities that are authorized under conservation programs 
        under subtitle D.
            ``(B) Unused funding.--Any funds made available for a 
        fiscal year under subparagraph (A) that are not obligated by 
        April 1 of the fiscal year may be used to carry out other 
        activities under conservation programs under subtitle D during 
        the fiscal year in which the funding becomes available.''.

SEC. 2004. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) In General.--Subtitle E of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3841 et seq.) is amended by adding at the end the 
following:

``SEC. 1244. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    ``(a) Beginning Farmers and Ranchers and Indian Tribes.--In 
carrying out any conservation program administered by the Secretary, 
the Secretary may provide to beginning farmers and ranchers and Indian 
tribes (as those terms are defined in section 1238) and limited 
resource agricultural producers incentives to participate in the 
conservation program to--
        ``(1) foster new farming and ranching opportunities; and
        ``(2) enhance environmental stewardship over the long term.
    ``(b) Privacy of Personal Information Relating to Natural Resources 
Conservation Programs.--
        ``(1) Information received for technical and financial 
    assistance.--
            ``(A) In general.--In accordance with section 552(b)(3) of 
        title 5, United States Code, except as provided in subparagraph 
        (C) and paragraph (2), information described in subparagraph 
        (B)--
                ``(i) shall not be considered to be public information; 
            and
                ``(ii) shall not be released to any person or Federal, 
            State, local agency or Indian tribe (as defined by the 
            Secretary) outside the Department of Agriculture.
            ``(B) Information.--The information referred to in 
        subparagraph (A) is information--
                ``(i) provided to the Secretary or a contractor of the 
            Secretary (including information provided under subtitle D) 
            for the purpose of providing technical or financial 
            assistance to an owner, operator, or producer with respect 
            to any natural resources conservation program administered 
            by the Natural Resources Conservation Service or the Farm 
            Service Agency; and
                ``(ii) that is proprietary (within the meaning of 
            section 552(b)(4) of title 5, United States Code) to the 
            agricultural operation or land that is a part of an 
            agricultural operation of the owner, operator, or producer.
            ``(C) Exception.--Nothing in this section affects the 
        availability of payment information (including payment amounts 
        and the names and addresses of recipients of payments) under 
        section 552 of title 5, United States Code.
        ``(2) Exceptions.--
            ``(A) Release and disclosure for enforcement.--The 
        Secretary may release or disclose to the Attorney General 
        information covered by paragraph (1) to the extent necessary to 
        enforce the natural resources conservation programs referred to 
        in paragraph (1)(B)(i).
            ``(B) Disclosure to cooperating persons and agencies.--
                ``(i) In general.--The Secretary may release or 
            disclose information covered by paragraph (1) to a person 
            or Federal, State, local, or tribal agency working in 
            cooperation with the Secretary in providing technical and 
            financial assistance described in paragraph (1)(B)(i) or 
            collecting information from data gathering sites.
                ``(ii) Use of information.--The person or Federal, 
            State, local, or tribal agency that receives information 
            described in clause (i) may release the information only 
            for the purpose of assisting the Secretary--

                    ``(I) in providing the requested technical or 
                financial assistance; or
                    ``(II) in collecting information from data 
                gathering sites.

            ``(C) Statistical and aggregate information.--Information 
        covered by paragraph (1) may be disclosed to the public if the 
        information has been transformed into a statistical or 
        aggregate form without naming any--
                ``(i) individual owner, operator, or producer; or
                ``(ii) specific data gathering site.
            ``(D) Consent of owner, operator, or producer.--
                ``(i) In general.--An owner, operator, or producer may 
            consent to the disclosure of information described in 
            paragraph (1).
                ``(ii) Condition of other programs.--The participation 
            of the owner, operator, or producer in, and the receipt of 
            any benefit by the owner, operator, or producer under, this 
            title or any other program administered by the Secretary 
            may not be conditioned on the owner, operator, or producer 
            providing consent under this paragraph.
        ``(3) Violations; penalties.--Section 1770(c) shall apply with 
    respect to the release of information collected in any manner or 
    for any purpose prohibited by this subsection.
        ``(4) Data collection, disclosure, and review.--Nothing in this 
    subsection--
            ``(A) affects any procedure for data collection or 
        disclosure through the National Resources Inventory; or
            ``(B) limits the authority of Congress or the General 
        Accounting Office to review information collected or disclosed 
        under this subsection.''.
    (b) National Resources Inventory.--Section 1770 of the Food 
Security Act of 1985 (7 U.S.C. 2276) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``or'' at the end;
            (B) in paragraph (2), by striking the period and inserting 
        ``; or''; and
            (C) by adding at the end the following:
        ``(3) in the case of information collected under the authority 
    described in subsection (d)(12), disclose the information to any 
    person or any Federal, State, local, or tribal agency outside the 
    Department of Agriculture, unless the information has been 
    converted into a statistical or aggregate form that does not allow 
    the identification of the person that supplied particular 
    information.''; and
        (2) in subsection (d)--
            (A) in paragraph (9), by striking ``or'' at the end;
            (B) in paragraph (11), by striking the period and inserting 
        ``; or''; and
            (C) by adding at the end the following:
        ``(12) section 302 of the Rural Development Act of 1972 (7 
    U.S.C. 1010a) regarding the authority to collect data for the 
    National Resources Inventory.''.

SEC. 2005. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

    (a) In General.--The Secretary of Agriculture shall develop a plan 
to coordinate land retirement and agricultural working land 
conservation programs that are administered by the Secretary to achieve 
the goals of--
        (1) eliminating redundancy;
        (2) streamlining program delivery; and
        (3) improving services provided to agricultural producers 
    (including the reevaluation of the provision of technical 
    assistance).
    (b) Report.--Not later than December 31, 2005, the Secretary 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 describes--
        (1) the plan developed under subsection (a); and
        (2) the means by which the Secretary intends to achieve the 
    goals described in subsection (a).

SEC. 2006. CONFORMING AMENDMENTS.

    (a) Chapter 1 of subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3830 et seq.) is amended by striking the chapter 
heading and inserting the following:

     ``CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM''.

    (b) Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) 
is amended--
        (1) in the section heading, by striking ``environmental 
    conservation acreage reserve program'' and inserting 
    ``comprehensive conservation enhancement program'';
        (2) in subsection (a)(1), by striking ``an environmental 
    conservation acreage reserve program'' and inserting ``a 
    comprehensive conservation enhancement program'';
        (3) by striking subsection (c); and
        (4) by striking ``ECARP'' each place it appears and inserting 
    ``CCEP''.
    (c) Section 1230A of the Food Security Act of 1985 (16 U.S.C. 
3830a) is repealed.
    (d) Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) 
is amended by striking the section heading and inserting the following:

``SEC. 1243. ADMINISTRATION OF CCEP.''.

                    Subtitle B--Conservation Reserve

SEC. 2101. CONSERVATION RESERVE PROGRAM.

    (a) In General.--Subchapter B of chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is 
amended to read as follows:

                  ``Subchapter B--Conservation Reserve

``SEC. 1231. CONSERVATION RESERVE.

    ``(a) In General.--Through the 2007 calendar year, the Secretary 
shall formulate and carry out a conservation reserve program under 
which land is enrolled through the use of contracts to assist owners 
and operators of land specified in subsection (b) to conserve and 
improve the soil, water, and wildlife resources of such land.
    ``(b) Eligible Land.--The Secretary may include in the program 
established under this subchapter--
        ``(1) highly erodible cropland that--
            ``(A)(i) if permitted to remain untreated could 
        substantially reduce the agricultural production capability for 
        future generations; or
            ``(ii) cannot be farmed in accordance with a plan that 
        complies with the requirements of subtitle B; and
            ``(B) the Secretary determines had a cropping history or 
        was considered to be planted for 4 of the 6 years preceding the 
        date of enactment of the Farm Security and Rural Investment Act 
        of 2002 (except for land enrolled in the conservation reserve 
        program as of that date).
        ``(2) marginal pasture land converted to wetland or established 
    as wildlife habitat prior to November 28, 1990;
        ``(3) marginal pasture land to be devoted to appropriate 
    vegetation, including trees, in or near riparian areas, or devoted 
    to similar water quality purposes (including marginal pastureland 
    converted to wetland or established as wildlife habitat);
        ``(4) cropland that is otherwise ineligible if the Secretary 
    determines that--
            ``(A) if permitted to remain in agricultural production, 
        the land would--
                ``(i) contribute to the degradation of soil, water, or 
            air quality; or
                ``(ii) pose an on-site or off-site environmental threat 
            to soil, water, or air quality;
            ``(B) the land is a--
                ``(i) newly-created, permanent grass sod waterway; or
                ``(ii) a contour grass sod strip established and 
            maintained as part of an approved conservation plan;
            ``(C) the land will be devoted to newly established living 
        snow fences, permanent wildlife habitat, windbreaks, 
        shelterbelts, or filterstrips devoted to trees or shrubs; or
            ``(D) the land poses an off-farm environmental threat, or a 
        threat of continued degradation of productivity due to soil 
        salinity, if permitted to remain in production; and
            ``(E) enrollment of the land would facilitate a net savings 
        in groundwater or surface water resources of the agricultural 
        operation of the producer;
        ``(5) the portion of land in a field not enrolled in the 
    conservation reserve in a case in which more than 50 percent of the 
    land in the field is enrolled as a buffer, if--
            ``(A) the land is enrolled as part of the buffer; and
            ``(B) the remainder of the field is--
                ``(i) infeasible to farm; and
                ``(ii) enrolled at regular rental rates.
    ``(c) Planting Status of Certain Land.--For purposes of determining 
the eligibility of land to be placed in the conservation reserve 
established under this subchapter, land shall be considered to be 
planted to an agricultural commodity during a crop year if--
        ``(1) during the crop year, the land was devoted to a 
    conserving use; or
        ``(2)(A) during the crop year or during any of the 2 years 
    preceding the crop year, the land was enrolled in the water bank 
    program; and
        ``(B) the contract of the owner or operator of the cropland 
    expired or will expire in calendar year 2000, 2001, or 2002.
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
39,200,000 acres in the conservation reserve at any 1 time during the 
2002 through 2007 calendar years (including contracts extended by the 
Secretary pursuant to section 1437(c) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 ( 16 U.S.C. 3831 note; Public Law 
101-624)).
    ``(e) Duration of Contract.--
        ``(1) In general.--For the purpose of carrying out this 
    subchapter, the Secretary shall enter into contracts of not less 
    than 10, nor more than 15, years.
        ``(2) Certain land.--
            ``(A) In general.--In the case of land devoted to hardwood 
        trees, shelterbelts, windbreaks, or wildlife corridors under a 
        contract entered into under this subchapter after October 1, 
        1990, and land devoted to such uses under contracts modified 
        under section 1235A, the owner or operator of the land may, 
        within the limitations prescribed under this section, specify 
        the duration of the contract.
            ``(B) Hardwood trees.--In the case of land that is devoted 
        to hardwood trees under a contract entered into under this 
        subchapter prior to October 1, 1990, the Secretary may extend 
        the contract for a term of not to exceed 5 years, as agreed to 
        by the owner or operator of such land and the Secretary.
        ``(3) 1-year extension.--In the case of a contract described in 
    paragraph (1) the term of which expires during calendar year 2002, 
    an owner or operator of land enrolled under the contract may extend 
    the contract for 1 additional year.
    ``(f) Conservation Priority Areas.--
        ``(1) Designation.--On application by the appropriate State 
    agency, the Secretary shall designate watershed areas of the 
    Chesapeake Bay Region (Pennsylvania, Maryland, and Virginia), the 
    Great Lakes Region, the Long Island Sound Region, and other areas 
    of special environmental sensitivity as conservation priority 
    areas.
        ``(2) Eligible watersheds.--Watersheds eligible for designation 
    under this subsection shall include areas with actual and 
    significant adverse water quality or habitat impacts related to 
    agricultural production activities.
        ``(3) Expiration.--Conservation priority area designation under 
    this subsection shall expire after 5 years, subject to 
    redesignation, except that the Secretary may withdraw a watershed's 
    designation--
            ``(A) on application by the appropriate State agency; or
            ``(B) in the case of an area covered by this subsection, if 
        the Secretary finds that the area no longer contains actual and 
        significant adverse water quality or habitat impacts related to 
        agricultural production activities.
        ``(4) Duty of secretary.--In carrying out this subsection, the 
    Secretary shall attempt to maximize water quality and habitat 
    benefits in the watersheds described in paragraph (1) by promoting 
    a significant level of enrollment of land within the watersheds in 
    the program under this subchapter by whatever means the Secretary 
    determines are appropriate and consistent with the purposes of this 
    subchapter.
    ``(g) Multi-Year Grasses and Legumes.--For purposes of this 
subchapter, alfalfa and other multi-year grasses and legumes in a 
rotation practice, approved by the Secretary, shall be considered 
agricultural commodities.
    ``(h) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--
        ``(1) Program.--
            ``(A) In general.--During the 2002 through 2007 calendar 
        years, the Secretary shall carry out a program in each State 
        under which the Secretary shall include eligible acreage 
        described in paragraph (2) in the program established under 
        this subchapter.
            ``(B) Participation among states.-The Secretary shall 
        ensure, to the maximum extent practicable, that owners and 
        operators in each State have an equitable opportunity to 
        participate in the pilot program established under this 
        subsection.
        ``(2) Eligible acreage.--
            ``(A) In general.--Subject to subparagraphs (B) through 
        (D), an owner or operator may enroll in the conservation 
        reserve under this subsection--
                ``(i) a wetland (including a converted wetland 
            described in section 1222(b)(1)(A)) that was cropped during 
            at least 3 of the immediately preceding 10 crop years; and
                ``(ii) buffer acreage that--

                    ``(I) is contiguous to the wetland described in 
                clause (i);
                    ``(II) is used to protect the wetland; and
                    ``(III) is of such width as the Secretary 
                determines is necessary to protect the wetland, taking 
                into consideration and accommodating the farming 
                practices (including the straightening of boundaries to 
                accommodate machinery) used with respect to the 
                cropland that surrounds the wetland.

            ``(B) Exclusions.--An owner or operator may not enroll in 
        the conservation reserve under this subsection--
                ``(i) any wetland, or land on a floodplain, that is, or 
            is adjacent to, a perennial riverine system wetland 
            identified on the final national wetland inventory map of 
            the Secretary of the Interior; or
                ``(ii) in the case of an area that is not covered by 
            the final national inventory map, any wetland, or land on a 
            floodplain, that is adjacent to a perennial stream 
            identified on a 1-24,000 scale map of the United States 
            Geological Survey.
            ``(C) Program limitations.--
                ``(i) In general.--The Secretary may enroll in the 
            conservation reserve under this subsection not more than--

                    ``(I) 100,000 acres in any 1 State referred to in 
                paragraph (1); and
                    ``(II) not more than a total of 1,000,000 acres.

                ``(ii) Relationship to program maximum.--Subject to 
            clause (iii), for the purposes of subsection (d), any 
            acreage enrolled in the conservation reserve under this 
            subsection shall be considered acres maintained in the 
            conservation reserve.
                ``(iii) Relationship to other enrolled acreage.--
            Acreage enrolled under this subsection shall not affect for 
            any fiscal year the quantity of--

                    ``(I) acreage enrolled to establish conservation 
                buffers as part of the program announced on March 24, 
                1998 (63 Fed. Reg. 14109); or
                    ``(II) acreage enrolled into the conservation 
                reserve enhancement program announced on May 27, 1998 
                (63 Fed. Reg. 28965).

                ``(iv) Review; potential increase in enrollment 
            acreage.--Not later than 3 years after the date of 
            enactment of this clause, the Secretary shall--

                    ``(I) conduct a review of the program under this 
                subsection with respect to each State that has enrolled 
                land in the program; and
                    ``(II) notwithstanding clause (i)(I), increase the 
                number of acres that may be enrolled by a State under 
                clause (i)(I) to not more than 150,000 acres, as 
                determined by the Secretary.

            ``(D) Owner or operator limitations.--
                ``(i) Wetland.--

                    ``(I) In general.--The maximum size of any wetland 
                described in subparagraph (A)(i) of an owner or 
                operator enrolled in the conservation reserve under 
                this subsection shall be 10 contiguous acres, of which 
                not more than 5 acres shall be eligible for payment.
                    ``(II) Coverage.--All acres described in subclause 
                (I) (including acres that are ineligible for payment) 
                shall be covered by the conservation contract.

                ``(ii) Buffer acreage.--The maximum size of any buffer 
            acreage described in subparagraph (A)(ii) of an owner or 
            operator enrolled in the conservation reserve under this 
            subsection shall be the greater of--

                    ``(I) 3 times the size of any wetland described in 
                subparagraph (A)(i) to which the buffer acreage is 
                contiguous; or
                    ``(II) 150 feet on either side of the wetland.

                ``(iii) Tracts.--The maximum size of any eligible 
            acreage described in subparagraph (A) in a tract (as 
            determined by the Secretary) of an owner or operator 
            enrolled in the conservation reserve under this subsection 
            shall be 40 acres.
        ``(3) Duties of owners and operators.--Under a contract entered 
    into under this subsection, during the term of the contract, an 
    owner or operator of a farm or ranch shall agree--
            ``(A) to restore the hydrology of the wetland within the 
        eligible acreage to the maximum extent practicable, as 
        determined by the Secretary;
            ``(B) to establish vegetative cover (which may include 
        emerging vegetation in water) on the eligible acreage, as 
        determined by the Secretary; and
            ``(C) to carry out other duties described in section 1232.
        ``(4) Duties of the secretary.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), in return for a contract entered into by an owner or 
        operator under this subsection, the Secretary shall make 
        payments and provide assistance to the owner or operator in 
        accordance with sections 1233 and 1234.
            ``(B) Continuous signup.--The Secretary shall use 
        continuous signup under section 1234(c)(2)(B) to determine the 
        acceptability of contract offers and the amount of rental 
        payments under this subsection.
            ``(C) Incentives.--The amounts payable to owners and 
        operators in the form of rental payments under contracts 
        entered into under this subsection shall reflect incentives 
        that are provided to owners and operators to enroll 
        filterstrips in the conservation reserve under section 1234.
    ``(i) Eligibility for Consideration.--On the expiration of a 
contract entered into under this subchapter, the land subject to the 
contract shall be eligible to be considered for reenrollment in the 
conservation reserve.
    ``(j) Balance of Natural Resource Purposes.--In determining the 
acceptability of contract offers under this subchapter, the Secretary 
shall ensure, to the maximum extent practicable, an equitable balance 
among the conservation purposes of soil erosion, water quality, and 
wildlife habitat.

``SEC. 1232. DUTIES OF OWNERS AND OPERATORS.

    ``(a) In General.--Under the terms of a contract entered into under 
this subchapter, during the term of the contract, an owner or operator 
of a farm or ranch shall agree--
        ``(1) to implement a plan approved by the local conservation 
    district (or in an area not located within a conservation district, 
    a plan approved by the Secretary) for converting eligible land 
    normally devoted to the production of an agricultural commodity on 
    the farm or ranch to a less intensive use (as defined by the 
    Secretary), such as pasture, permanent grass, legumes, forbs, 
    shrubs, or trees, substantially in accordance with a schedule 
    outlined in the plan;
        ``(2) to place highly erodible cropland subject to the contract 
    in the conservation reserve established under this subchapter;
        ``(3) not to use the land for agricultural purposes, except as 
    permitted by the Secretary;
        ``(4) to establish approved vegetative cover (which may include 
    emerging vegetation in water), water cover for the enhancement of 
    wildlife, or, where practicable, maintain existing cover on the 
    land, except that--
            ``(A) the water cover shall not include ponds for the 
        purpose of watering livestock, irrigating crops, or raising 
        fish for commercial purposes; and
            ``(B) the Secretary shall not terminate the contract for 
        failure to establish approved vegetative or water cover on the 
        land if--
                ``(i) the failure to plant the cover was due to 
            excessive rainfall or flooding;
                ``(ii) the land subject to the contract that could 
            practicably be planted to the cover is planted to the 
            cover; and
                ``(iii) the land on which the owner or operator was 
            unable to plant the cover is planted to the cover after the 
            wet conditions that prevented the planting subsides;
        ``(5) on a violation of a term or condition of the contract at 
    any time the owner or operator has control of the land--
            ``(A) to forfeit all rights to receive rental payments and 
        cost sharing payments under the contract and to refund to the 
        Secretary any rental payments and cost sharing payments 
        received by the owner or operator under the contract, together 
        with interest on the payments as determined by the Secretary, 
        if the Secretary, after considering the recommendations of the 
        soil conservation district and the Natural Resources 
        Conservation Service, determines that the violation is of such 
        nature as to warrant termination of the contract; or
            ``(B) to refund to the Secretary, or accept adjustments to, 
        the rental payments and cost sharing payments provided to the 
        owner or operator, as the Secretary considers appropriate, if 
        the Secretary determines that the violation does not warrant 
        termination of the contract;
        ``(6) on the transfer of the right and interest of the owner or 
    operator in land subject to the contract--
            ``(A) to forfeit all rights to rental payments and cost 
        sharing payments under the contract; and
            ``(B) to refund to the United States all rental payments 
        and cost sharing payments received by the owner or operator, or 
        accept such payment adjustments or make such refunds as the 
        Secretary considers appropriate and consistent with the 
        objectives of this subchapter;
    unless the transferee of the land agrees with the Secretary to 
    assume all obligations of the contract, except that no refund of 
    rental payments and cost sharing payments shall be required if the 
    land is purchased by or for the United States Fish and Wildlife 
    Service, or the transferee and the Secretary agree to modifications 
    to the contract, in a case in which the modifications are 
    consistent with the objectives of the program, as determined by the 
    Secretary;
        ``(7) not to conduct any harvesting or grazing, nor otherwise 
    make commercial use of the forage, on land that is subject to the 
    contract, nor adopt any similar practice specified in the contract 
    by the Secretary as a practice that would tend to defeat the 
    purposes of the contract, except that the Secretary may permit, 
    consistent with the conservation of soil, water quality, and 
    wildlife habitat (including habitat during nesting seasons for 
    birds in the area)--
            ``(A) managed harvesting and grazing (including the managed 
        harvesting of biomass), except that in permitting managed 
        harvesting and grazing, the Secretary--
                ``(i) shall, in coordination with the State technical 
            committee--

                    ``(I) develop appropriate vegetation management 
                requirements; and
                    ``(II) identify periods during which harvesting and 
                grazing under this paragraph may be conducted;

                ``(ii) may permit harvesting and grazing or other 
            commercial use of the forage on the land that is subject to 
            the contract in response to a drought or other emergency; 
            and
                ``(iii) shall, in the case of routine managed 
            harvesting or grazing or harvesting or grazing conducted in 
            response to a drought or other emergency, reduce the rental 
            payment otherwise payable under the contract by an amount 
            commensurate with the economic value of the activity; and
            ``(B) the installation of wind turbines, except that in 
        permitting the installation of wind turbines, the Secretary 
        shall determine the number and location of wind turbines that 
        may be installed, taking into account--
                ``(i) the location, size, and other physical 
            characteristics of the land;
                ``(ii) the extent to which the land contains wildlife 
            and wildlife habitat; and
                ``(iii) the purposes of the conservation reserve 
            program under this subchapter;
        ``(8) not to conduct any planting of trees on land that is 
    subject to the contract unless the contract specifies that the 
    harvesting and commercial sale of trees such as Christmas trees are 
    prohibited, nor otherwise make commercial use of trees on land that 
    is subject to the contract unless it is expressly permitted in the 
    contract, nor adopt any similar practice specified in the contract 
    by the Secretary as a practice that would tend to defeat the 
    purposes of the contract, except that no contract shall prohibit 
    activities consistent with customary forestry practice, such as 
    pruning, thinning, or stand improvement of trees, on land converted 
    to forestry use;
        ``(9) not to adopt any practice specified by the Secretary in 
    the contract as a practice that would tend to defeat the purposes 
    of this subchapter; and
        ``(10) to comply with such additional provisions as the 
    Secretary determines are desirable and are included in the contract 
    to carry out this subchapter or to facilitate the practical 
    administration of this subchapter.
    ``(b) Conservation Plans.--The plan referred to in subsection 
(a)(1)--
        ``(1) shall set forth--
            ``(A) the conservation measures and practices to be carried 
        out by the owner or operator during the term of the contract; 
        and
            ``(B) the commercial use, if any, to be permitted on the 
        land during the term; and
        ``(2) may provide for the permanent retirement of any existing 
    cropland base and allotment history for the land.
    ``(c) Foreclosure.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    an owner or operator who is a party to a contract entered into 
    under this subchapter may not be required to make repayments to the 
    Secretary of amounts received under the contract if the land that 
    is subject to the contract has been foreclosed on and the Secretary 
    determines that forgiving the repayments is appropriate in order to 
    provide fair and equitable treatment.
        ``(2) Resumption of control.--
            ``(A) In general.--This subsection shall not void the 
        responsibilities of an owner or operator under the contract if 
        the owner or operator resumes control over the land that is 
        subject to the contract within the period specified in the 
        contract.
            ``(B) Contract.--On the resumption of the control over the 
        land by the owner or operator, the provisions of the contract 
        in effect on the date of the foreclosure shall apply.

``SEC. 1233. DUTIES OF THE SECRETARY.

    ``In return for a contract entered into by an owner or operator 
under section 1232, the Secretary shall--
        ``(1) share the cost of carrying out the conservation measures 
    and practices set forth in the contract for which the Secretary 
    determines that cost sharing is appropriate and in the public 
    interest; and
        ``(2) for a period of years not in excess of the term of the 
    contract, pay an annual rental payment in an amount necessary to 
    compensate for--
            ``(A) the conversion of highly erodible cropland normally 
        devoted to the production of an agricultural commodity on a 
        farm or ranch to a less intensive use; and
            ``(B) the retirement of any cropland base and allotment 
        history that the owner or operator agrees to retire 
        permanently.

``SEC. 1234. PAYMENTS.

    ``(a) Timing.--The Secretary shall provide payment for obligations 
incurred by the Secretary under a contract entered into under this 
subchapter--
        ``(1) with respect to any cost-sharing payment obligation 
    incurred by the Secretary, as soon as practicable after the 
    obligation is incurred; and
        ``(2) with respect to any annual rental payment obligation 
    incurred by the Secretary--
            ``(A) as soon as practicable after October 1 of each 
        calendar year; or
            ``(B) at the option of the Secretary, at any time prior to 
        such date during the year that the obligation is incurred.
    ``(b) Federal Percentage of Cost Sharing Payments.--
        ``(1) In general.--In making cost sharing payments to an owner 
    or operator under a contract entered into under this subchapter, 
    the Secretary shall pay 50 percent of the cost of establishing 
    water quality and conservation measures and practices required 
    under each contract for which the Secretary determines that cost 
    sharing is appropriate and in the public interest.
        ``(2) Limitation.--The Secretary shall not make any payment to 
    an owner or operator under this subchapter to the extent that the 
    total amount of cost sharing payments provided to the owner or 
    operator from all sources would exceed 100 percent of the total 
    cost of establishing measures and practices described in paragraph 
    (1).
        ``(3) Hardwood trees, windbreaks, shelterbelts, and wildlife 
    corridors.--
            ``(A) Applicability.--This paragraph applies to--
                ``(i) land devoted to the production of hardwood trees, 
            windbreaks, shelterbelts, or wildlife corridors under a 
            contract entered into under this subchapter after November 
            28, 1990; and
                ``(ii) land converted to such production under section 
            1235A.
            ``(B) Payments.--In making cost share payments to an owner 
        or operator of land described in subparagraph (A), the 
        Secretary shall pay 50 percent of the reasonable and necessary 
        costs, as determined by the Secretary, incurred by the owner or 
        operator for maintaining trees or shrubs, including the cost of 
        replanting (if the trees or shrubs were lost due to conditions 
        beyond the control of the owner or operator), during not less 
        than the 2-year, and not more than the 4-year, period beginning 
        on the date of the planting of the trees or shrubs, as 
        determined appropriate by the Secretary.
        ``(4) Hardwood tree planting.--The Secretary may permit owners 
    or operators that contract to devote at least 10 acres of land to 
    the production of hardwood trees under this subchapter to extend 
    the planting of the trees over a 3-year period if at least \1/3\ of 
    the trees are planted in each of the first 2 years.
        ``(5) Other federal cost share assistance.--An owner or 
    operator shall not be eligible to receive or retain cost share 
    assistance under this subsection if the owner or operator receives 
    any other Federal cost share assistance with respect to the land 
    under any other provision of law.
    ``(c) Annual Rental Payments.--
        ``(1) In general.--In determining the amount of annual rental 
    payments to be paid to owners and operators for converting highly 
    erodible cropland normally devoted to the production of an 
    agricultural commodity to less intensive use, the Secretary may 
    consider, among other things, the amount necessary to encourage 
    owners or operators of highly erodible cropland to participate in 
    the program established by this subchapter.
        ``(2) Method of determination.--The amounts payable to owners 
    or operators in the form of rental payments under contracts entered 
    into under this subchapter may be determined through--
            ``(A) the submission of bids for such contracts by owners 
        and operators in such manner as the Secretary may prescribe; or
            ``(B) such other means as the Secretary determines are 
        appropriate.
        ``(3) Acceptance of contract offers.--In determining the 
    acceptability of contract offers, the Secretary may--
            ``(A) take into consideration the extent to which 
        enrollment of the land that is the subject of the contract 
        offer would improve soil resources, water quality, wildlife 
        habitat, or provide other environmental benefits; and
            ``(B) establish different criteria in various States and 
        regions of the United States based on the extent to which water 
        quality or wildlife habitat may be improved or erosion may be 
        abated.
        ``(4) Hardwood tree acreage.--In the case of acreage enrolled 
    in the conservation reserve established under this subchapter that 
    is to be devoted to hardwood trees, the Secretary may consider bids 
    for contracts under this subsection on a continuous basis.
    ``(d) Cash or In-Kind Payments.--
        ``(1) In general.--Except as otherwise provided in this 
    section, payments under this subchapter--
            ``(A) shall be made in cash or in commodities in such 
        amount and on such time schedule as is agreed on and specified 
        in the contract; and
            ``(B) may be made in advance of determination of 
        performance.
        ``(2) Method of providing in-kind payments.--If the payment to 
    an owner or operator is made with in-kind commodities, the payment 
    shall be made by the Commodity Credit Corporation--
            ``(A) by delivery of the commodity involved to the owner or 
        operator at a warehouse or other similar facility located in 
        the county in which the highly erodible cropland is located or 
        at such other location as is agreed to by the Secretary and the 
        owner or operator;
            ``(B) by the transfer of negotiable warehouse receipts; or
            ``(C) by such other method, including the sale of the 
        commodity in commercial markets, as is determined by the 
        Secretary to be appropriate to enable the owner or operator to 
        receive efficient and expeditious possession of the commodity.
        ``(3) Cash payments.--
            ``(A) Commodity credit corporation stocks.--If stocks of a 
        commodity acquired by the Commodity Credit Corporation are not 
        readily available to make full payment in kind to the owner or 
        operator, the Secretary may substitute full or partial payment 
        in cash for payment in kind.
            ``(B) Special conservation reserve enhancement program.--
        Payments to an owner or operator under a special conservation 
        reserve enhancement program described in subsection (f)(4) 
        shall be in the form of cash only.
    ``(e) Payments on Death, Disability, or Succession.--If an owner or 
operator that is entitled to a payment under a contract entered into 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive the payment, or is succeeded by another person that renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations prescribed by the Secretary and 
without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all of the 
circumstances.
    ``(f) Payment Limitation for Rental Payments.--
        ``(1) In general.--The total amount of rental payments, 
    including rental payments made in the form of in-kind commodities, 
    made to a person under this subchapter for any fiscal year may not 
    exceed $50,000.
        ``(2) Regulations.--
            ``(A) In general.--The Secretary shall promulgate 
        regulations--
                ``(i) defining the term `person' as used in this 
            subsection; and
                ``(ii) providing such terms and conditions as the 
            Secretary determines necessary to ensure a fair and 
            reasonable application of the limitation established by 
            this subsection.
            ``(B) Corporations and stockholders.--The regulations 
        promulgated by the Secretary on December 18, 1970, under 
        section 101 of the Agricultural Act of 1970 (7 U.S.C. 1307), 
        shall be used to determine whether corporations and their 
        stockholders may be considered as separate persons under this 
        subsection.
        ``(3) Other payments.--Rental payments received by an owner or 
    operator shall be in addition to, and not affect, the total amount 
    of payments that the owner or operator is otherwise eligible to 
    receive under the Farm Security and Rural Investment Act of 2002.
        ``(4) Special conservation reserve enhancement program.--
            ``(A) In general.--The provisions of this subsection that 
        limit payments to any person, and section 1305(d) of the 
        Agricultural Reconciliation Act of 1987 (7 U.S.C. 1308 note; 
        Public Law 100-203), shall not be applicable to payments 
        received by a State, political subdivision, or agency thereof 
        in connection with agreements entered into under a special 
        conservation reserve enhancement program carried out by that 
        entity that has been approved by the Secretary.
            ``(B) Agreements.--The Secretary may enter into such 
        agreements for payments to States (including political 
        subdivisions and agencies of States) that the Secretary 
        determines will advance the purposes of this subchapter.
    ``(g) Other State or Local Assistance.--In addition to any payment 
under this subchapter, an owner or operator may receive cost share 
assistance, rental payments, or tax benefits from a State or 
subdivision thereof for enrolling land in the conservation reserve 
program.

``SEC. 1235. CONTRACTS.

    ``(a) Ownership or Operation Requirements.--
        ``(1) In general.--Except as provided in paragraph (2), no 
    contract shall be entered into under this subchapter concerning 
    land with respect to which the ownership has changed in the 1-year 
    period preceding the first year of the contract period unless--
            ``(A) the new ownership was acquired by will or succession 
        as a result of the death of the previous owner;
            ``(B) the new ownership was acquired before January 1, 
        1985;
            ``(C) the Secretary determines that the land was acquired 
        under circumstances that give adequate assurance that the land 
        was not acquired for the purpose of placing the land in the 
        program established by this subchapter; or
            ``(D) the ownership change occurred due to foreclosure on 
        the land and the owner of the land immediately before the 
        foreclosure exercises a right of redemption from the mortgage 
        holder in accordance with State law.
        ``(2) Exceptions.--Paragraph (1) shall not--
            ``(A) prohibit the continuation of an agreement by a new 
        owner after an agreement has been entered into under this 
        subchapter; or
            ``(B) require a person to own the land as a condition of 
        eligibility for entering into the contract if the person--
                ``(i) has operated the land to be covered by a contract 
            under this section for at least 1 year preceding the date 
            of the contract or since January 1, 1985, whichever is 
            later; and
                ``(ii) controls the land for the contract period.
    ``(b) Sales or Transfers.--If, during the term of a contract 
entered into under this subchapter, an owner or operator of land 
subject to the contract sells or otherwise transfers the ownership or 
right of occupancy of the land, the new owner or operator of the land 
may--
        ``(1) continue the contract under the same terms or conditions;
        ``(2) enter into a new contract in accordance with this 
    subchapter; or
        ``(3) elect not to participate in the program established by 
    this subchapter.
    ``(c) Modifications.--
        ``(1) In general.--The Secretary may modify a contract entered 
    into with an owner or operator under this subchapter if--
            ``(A) the owner or operator agrees to the modification; and
            ``(B) the Secretary determines that the modification is 
        desirable--
                ``(i) to carry out this subchapter;
                ``(ii) to facilitate the practical administration of 
            this subchapter; or
                ``(iii) to achieve such other goals as the Secretary 
            determines are appropriate, consistent with this 
            subchapter.
        ``(2) Production of agricultural commodities.--The Secretary 
    may modify or waive a term or condition of a contract entered into 
    under this subchapter in order to permit all or part of the land 
    subject to such contract to be devoted to the production of an 
    agricultural commodity during a crop year, subject to such 
    conditions as the Secretary determines are appropriate.
    ``(d) Termination.--
        ``(1) In general.--The Secretary may terminate a contract 
    entered into with an owner or operator under this subchapter if--
            ``(A) the owner or operator agrees to the termination; and
            ``(B) the Secretary determines that the termination would 
        be in the public interest.
        ``(2) Notice to congressional committees.--At least 90 days 
    before taking any action to terminate under paragraph (1) all 
    conservation reserve contracts entered into under this subchapter, 
    the Secretary shall provide to the Committee on Agriculture of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate written notice of the action.
    ``(e) Early Termination by Owner or Operator.--
        ``(1) Early termination.--
            ``(A) In general.--The Secretary shall allow a participant 
        that entered into a contract under this subchapter before 
        January 1, 1995, to terminate the contract at any time if the 
        contract has been in effect for at least 5 years.
            ``(B) Liability for contract violation.--The termination 
        shall not relieve the participant of liability for a contract 
        violation occurring before the date of the termination.
            ``(C) Notice to secretary.--The participant shall provide 
        the Secretary with reasonable notice of the desire of the 
        participant to terminate the contract.
        ``(2) Certain land excepted.--The following land shall not be 
    subject to an early termination of contract under this subsection:
            ``(A) Filterstrips, waterways, strips adjacent to riparian 
        areas, windbreaks, and shelterbelts.
            ``(B) Land with an erodibility index of more than 15.
            ``(C) Other land of high environmental value (including 
        wetland), as determined by the Secretary.
        ``(3) Effective date.--The contract termination shall become 
    effective 60 days after the date on which the owner or operator 
    submits the notice required under paragraph (1)(C).
        ``(4) Prorated rental payment.--If a contract entered into 
    under this subchapter is terminated under this subsection before 
    the end of the fiscal year for which a rental payment is due, the 
    Secretary shall provide a prorated rental payment covering the 
    portion of the fiscal year during which the contract was in effect.
        ``(5) Renewed enrollment.--The termination of a contract 
    entered into under this subchapter shall not affect the ability of 
    the owner or operator that requested the termination to submit a 
    subsequent bid to enroll the land that was subject to the contract 
    into the conservation reserve.
        ``(6) Conservation requirements.--If land that was subject to a 
    contract is returned to production of an agricultural commodity, 
    the conservation requirements under subtitles B and C shall apply 
    to the use of the land to the extent that the requirements are 
    similar to those requirements imposed on other similar land in the 
    area, except that the requirements may not be more onerous than the 
    requirements imposed on other land.

``SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER 
              CONSERVING USES.

    ``(a) Conversion to Trees.--
        ``(1) In general.--The Secretary shall permit an owner or 
    operator that has entered into a contract under this subchapter 
    that is in effect on November 28, 1990, to convert areas of highly 
    erodible cropland that are subject to the contract, and that are 
    devoted to vegetative cover, from that use to hardwood trees, 
    windbreaks, shelterbelts, or wildlife corridors.
        ``(2) Terms.--
            ``(A) Extension of contract.--With respect to a contract 
        that is modified under this section that provides for the 
        planting of hardwood trees, windbreaks, shelterbelts, or 
        wildlife corridors, if the original term of the contract was 
        less than 15 years, the owner or operator may extend the 
        contract to a term of not to exceed 15 years.
            ``(B) Cost share assistance.--The Secretary shall pay 50 
        percent of the cost of establishing conservation measures and 
        practices authorized under this subsection for which the 
        Secretary determines the cost sharing is appropriate and in the 
        public interest.
    ``(b) Conversion to Wetland.--The Secretary shall permit an owner 
or operator that has entered into a contract under this subchapter that 
is in effect on November 28, 1990, to restore areas of highly erodible 
cropland that are devoted to vegetative cover under the contract to 
wetland if--
        ``(1) the areas are prior converted wetland;
        ``(2) the owner or operator of the areas enters into an 
    agreement to provide the Secretary with a long-term or permanent 
    easement under subchapter C covering the areas;
        ``(3) there is a high probability that the prior converted area 
    can be successfully restored to wetland status; and
        ``(4) the restoration of the areas otherwise meets the 
    requirements of subchapter C.
    ``(c) Limitation.--The Secretary shall not incur, through a 
conversion under this section, any additional expense on the acres, 
including the expense involved in the original establishment of the 
vegetative cover, that would result in cost share for costs under this 
section in excess of the costs that would have been subject to cost 
share for the new practice had that practice been the original 
practice.
    ``(d) Condition of Contract.--An owner or operator shall as a 
condition of entering into a contract under subsection (a) participate 
in the Forest Stewardship Program established under section 5 of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a).''.
    (b) Study on Economic Effects.--
        (1) In general.--Not later than 18 months after the date of 
    enactment of this Act, the Secretary 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 describes the economic and social effects on rural 
    communities resulting from the conservation reserve program 
    established under subchapter B of chapter 1 of subtitle D of title 
    XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
        (2) Components.--The study under paragraph (1) shall include 
    analyses of--
            (A) the impact that enrollments in the conservation reserve 
        program have on rural businesses, civic organizations, and 
        community services (such as schools, public safety, and 
        infrastructure), particularly in communities with a large 
        percentage of whole farm enrollments;
            (B) the effect that those enrollments have on rural 
        population and beginning farmers (including a description of 
        any connection between the rate of enrollment and the incidence 
        of absentee ownership);
            (C)(i) the manner in which differential per acre payment 
        rates potentially impact the types of land (by productivity) 
        enrolled;
            (ii) changes to the per acre payment rates that may affect 
        that impact; and
            (iii) the manner in which differential per acre payment 
        rates could facilitate retention of productive agricultural 
        land in agriculture; and
            (D) the effect of enrollment on opportunities for 
        recreational activities (including hunting and fishing).

                  Subtitle C--Wetlands Reserve Program

SEC. 2201. REAUTHORIZATION.

    Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 
3837(c)) is amended by striking ``2002'' and inserting ``2007''.

SEC. 2202. ENROLLMENT.

    Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is 
amended--
        (1) by striking subsection (b) and inserting the following:
    ``(b) Enrollment Conditions.--
        ``(1) Maximum enrollment.--The total number of acres enrolled 
    in the wetlands reserve program shall not exceed 2,275,000 acres, 
    of which, to the maximum extent practicable, the Secretary shall 
    enroll 250,000 acres in each calendar year.
        ``(2) Methods of enrollment.--The Secretary shall enroll 
    acreage into the wetlands reserve program through the use of 
    permanent easements, 30-year easements, restoration cost share 
    agreements, or any combination of those options.''; and
        (2) by striking subsection (g).

SEC. 2203. EASEMENTS AND AGREEMENTS.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is 
amended by striking subsection (h).

SEC. 2204. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

    Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C. 
3837e(a)) is amended by striking paragraph (2) and inserting the 
following:
        ``(2)(A) the ownership change occurred because of foreclosure 
    on the land; and
        ``(B) immediately before the foreclosure, the owner of the land 
    exercises a right of redemption from the mortgage holder in 
    accordance with State law; or''.

              Subtitle D--Environmental Quality Incentives

SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Chapter 4 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839aa et seq.) is amended to read as follows:

``SEC. 1240. PURPOSES.

    ``The purposes of the environmental quality incentives program 
established by this chapter are to promote agricultural production and 
environmental quality as compatible goals, and to optimize 
environmental benefits, by--
        ``(1) assisting producers in complying with local, State, and 
    national regulatory requirements concerning--
            ``(A) soil, water, and air quality;
            ``(B) wildlife habitat; and
            ``(C) surface and ground water conservation;
        ``(2) avoiding, to the maximum extent practicable, the need for 
    resource and regulatory programs by assisting producers in 
    protecting soil, water, air, and related natural resources and 
    meeting environmental quality criteria established by Federal, 
    State, tribal, and local agencies;
        ``(3) providing flexible assistance to producers to install and 
    maintain conservation practices that enhance soil, water, related 
    natural resources (including grazing land and wetland), and 
    wildlife while sustaining production of food and fiber;
        ``(4) assisting producers to make beneficial, cost effective 
    changes to cropping systems, grazing management, nutrient 
    management associated with livestock, pest or irrigation 
    management, or other practices on agricultural land; and
        ``(5) consolidating and streamlining conservation planning and 
    regulatory compliance processes to reduce administrative burdens on 
    producers and the cost of achieving environmental goals.

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
        ``(1) Beginning farmer or rancher.--The term `beginning farmer 
    or rancher' has the meaning provided under section 343(a) of the 
    Consolidated Farm and Rural Development Act (7 U.S.C. 1999(a)).
        ``(2) Eligible land.--
            ``(A) In general.--The term `eligible land' means land on 
        which agricultural commodities or livestock are produced.
            ``(B) Inclusions.--The term `eligible land' includes--
                ``(i) cropland;
                ``(ii) grassland;
                ``(iii) rangeland;
                ``(iv) pasture land;
                ``(v) private, nonindustrial forest land; and
                ``(vi) other agricultural land that the Secretary 
            determines poses a serious threat to soil, air, water, or 
            related resources.
        ``(3) Land management practice.--The term `land management 
    practice' means a site-specific nutrient or manure management, 
    integrated pest management, irrigation management, tillage or 
    residue management, grazing management, air quality management, or 
    other land management practice carried out on eligible land that 
    the Secretary determines is needed to protect from degradation, in 
    the most cost-effective manner, water, soil, or related resources.
        ``(4) Livestock.--The term `livestock' means dairy cattle, beef 
    cattle, laying hens, broilers, turkeys, swine, sheep, and other 
    such animals as are determined by the Secretary.
        ``(5) Practice.--The term `practice' means 1 or more structural 
    practices, land management practices, and comprehensive nutrient 
    management planning practices.
        ``(6) Structural practice.--The term `structural practice' 
    means--
            ``(A) the establishment on eligible land of a site-specific 
        animal waste management facility, terrace, grassed waterway, 
        contour grass strip, filterstrip, tailwater pit, permanent 
        wildlife habitat, constructed wetland, or other structural 
        practice that the Secretary determines is needed to protect, in 
        the most cost effective manner, water, soil, or related 
        resources from degradation; and
            ``(B) the capping of abandoned wells on eligible land.

``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Establishment.--
        ``(1) In general.--During each of the 2002 through 2007 fiscal 
    years, the Secretary shall provide cost-share payments and 
    incentive payments to producers that enter into contracts with the 
    Secretary under the program.
        ``(2) Eligible practices.--With respect to practices 
    implemented under this chapter--
            ``(A) a producer that implements a structural practice in 
        accordance with this chapter shall be eligible to receive cost-
        share payments; and
            ``(B) a producer that implements a land management 
        practice, or develops a comprehensive nutrient management plan, 
        in accordance with this chapter shall be eligible to receive 
        incentive payments.
    ``(b) Practices and Term.--
        ``(1) Practices.--A contract under this chapter may apply to 1 
    or more structural practices, land management practices, and 
    comprehensive nutrient management practices.
        ``(2) Term.--A contract under this chapter shall have a term 
    that--
            ``(A) at a minimum, is equal to the period beginning on the 
        date on which the contract is entered into and ending on the 
        date that is 1 year after the date on which all practices under 
        the contract have been implemented; but
            ``(B) not to exceed 10 years.
    ``(c) Bidding Down.--If the Secretary determines that the 
environmental values of 2 or more applications for cost-share payments 
or incentive payments are comparable, the Secretary shall not assign a 
higher priority to the application only because it would present the 
least cost to the program established under the program.
    ``(d) Cost-Share Payments.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    cost-share payments provided to a producer proposing to implement 1 
    or more practices under the program shall be not more than 75 
    percent of the cost of the practice, as determined by the 
    Secretary.
        ``(2) Exceptions.--
            ``(A) Limited resource and beginning farmers.--The 
        Secretary may increase the amount provided to a producer under 
        paragraph (1) to not more than 90 percent if the producer is a 
        limited resource or beginning farmer or rancher, as determined 
        by the Secretary.
            ``(B) Cost-share assistance from other sources.--Except as 
        provided in paragraph (3), any cost-share payments received by 
        a producer from a State or private organization or person for 
        the implementation of 1 or more practices on eligible land of 
        the producer shall be in addition to the payments provided to 
        the producer under paragraph (1).
        ``(3) Other payments.--A producer shall not be eligible for 
    cost-share payments for practices on eligible land under the 
    program if the producer receives cost-share payments or other 
    benefits for the same practice on the same land under chapter 1 and 
    the program.
    ``(e) Incentive Payments.--
        ``(1) In general.--The Secretary shall make incentive payments 
    in an amount and at a rate determined by the Secretary to be 
    necessary to encourage a producer to perform 1 or more land 
    management practices.
        ``(2) Special rule.--In determining the amount and rate of 
    incentive payments, the Secretary may accord great significance to 
    a practice that promotes residue, nutrient, pest, invasive species, 
    or air quality management.
    ``(f) Modification or Termination of Contracts.--
        ``(1) Voluntary modification or termination.--The Secretary may 
    modify or terminate a contract entered into with a producer under 
    this chapter if--
            ``(A) the producer agrees to the modification or 
        termination; and
            ``(B) the Secretary determines that the modification or 
        termination is in the public interest.
        ``(2) Involuntary termination.--The Secretary may terminate a 
    contract under this chapter if the Secretary determines that the 
    producer violated the contract.
    ``(g) Allocation of Funding.--For each of fiscal years 2002 through 
2007, 60 percent of the funds made available for cost-share payments 
and incentive payments under this chapter shall be targeted at 
practices relating to livestock production.

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

    ``In evaluating applications for cost-share payments and incentive 
payments, the Secretary shall accord a higher priority to assistance 
and payments that--
        ``(1) encourage the use by producers of cost-effective 
    conservation practices; and
        ``(2) address national conservation priorities.

``SEC. 1240D. DUTIES OF PRODUCERS.

    ``To receive technical assistance, cost-share payments, or 
incentive payments under the program, a producer shall agree--
        ``(1) to implement an environmental quality incentives program 
    plan (including a comprehensive nutrient management plan, if 
    applicable) that describes conservation and environmental purposes 
    to be achieved through 1 or more practices that are approved by the 
    Secretary;
        ``(2) not to conduct any practices on the farm or ranch that 
    would tend to defeat the purposes of the program;
        ``(3) on the violation of a term or condition of the contract 
    at anytime the producer has control of the land--
            ``(A) if the Secretary determines that the violation 
        warrants termination of the contract--
                ``(i) to forfeit all rights to receive payments under 
            the contract; and
                ``(ii) to refund to the Secretary all or a portion of 
            the payments received by the owner or operator under the 
            contract, including any interest on the payments, as 
            determined by the Secretary; or
            ``(B) if the Secretary determines that the violation does 
        not warrant termination of the contract, to refund to the 
        Secretary, or accept adjustments to, the payments provided to 
        the owner or operator, as the Secretary determines to be 
        appropriate;
        ``(4) on the transfer of the right and interest of the producer 
    in land subject to the contract, unless the transferee of the right 
    and interest agrees with the Secretary to assume all obligations of 
    the contract, to refund all cost-share payments and incentive 
    payments received under the program, as determined by the 
    Secretary;
        ``(5) to supply information as required by the Secretary to 
    determine compliance with the program plan and requirements of the 
    program; and
        ``(6) to comply with such additional provisions as the 
    Secretary determines are necessary to carry out the program plan.

``SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ``(a) In General.--To be eligible to receive cost-share payments or 
incentive payments under the program, a producer shall submit to the 
Secretary for approval a plan of operations that--
        ``(1) specifies practices covered under the program;
        ``(2) includes such terms and conditions as the Secretary 
    considers necessary to carry out the program, including a 
    description of the purposes to be met by the implementation of the 
    plan; and
        ``(3) in the case of a confined livestock feeding operation, 
    provides for development and implementation of a comprehensive 
    nutrient management plan, if applicable.
    ``(b) Avoidance of Duplication.--The Secretary shall, to the 
maximum extent practicable, eliminate duplication of planning 
activities under the program under this chapter and comparable 
conservation programs.

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

    ``To the extent appropriate, the Secretary shall assist a producer 
in achieving the conservation and environmental goals of a program plan 
by--
        ``(1) providing cost-share payments or incentive payments for 
    developing and implementing 1 or more practices, as appropriate; 
    and
        ``(2) providing the producer with information and training to 
    aid in implementation of the plan.

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``An individual or entity may not receive, directly or indirectly, 
cost-share or incentive payments under this chapter that, in the 
aggregate, exceed $450,000 for all contracts entered into under this 
chapter by the individual or entity during the period of fiscal years 
2002 through 2007, regardless of the number of contracts entered into 
under this chapter by the individual or entity.

``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

    ``(a) In General.--The Secretary may pay the cost of competitive 
grants that are intended to stimulate innovative approaches to 
leveraging Federal investment in environmental enhancement and 
protection, in conjunction with agricultural production, through the 
program.
    ``(b) Use.--The Secretary may provide grants under this section to 
governmental and nongovernmental organizations and persons, on a 
competitive basis, to carry out projects that--
        ``(1) involve producers that are eligible for payments or 
    technical assistance under the program;
        ``(2) implement projects, such as--
            ``(A) market systems for pollution reduction; and
            ``(B) innovative conservation practices, including the 
        storing of carbon in the soil; and
        ``(3) leverage funds made available to carry out the program 
    under this chapter with matching funds provided by State and local 
    governments and private organizations to promote environmental 
    enhancement and protection in conjunction with agricultural 
    production.
    ``(c) Cost Share.--The amount of a grant made under this section to 
carry out a project shall not exceed 50 percent of the cost of the 
project.

``SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.

    ``(a) Establishment.--In carrying out the program under this 
chapter, subject to subsection (b), the Secretary shall promote ground 
and surface water conservation by providing cost-share payments, 
incentive payments, and loans to producers to carry out eligible water 
conservation activities with respect to the agricultural operations of 
producers, to--
        ``(1) improve irrigation systems;
        ``(2) enhance irrigation efficiencies;
        ``(3) convert to--
            ``(A) the production of less water-intensive agricultural 
        commodities; or
            ``(B) dryland farming;
        ``(4) improve the storage of water through measures such as 
    water banking and groundwater recharge;
        ``(5) mitigate the effects of drought; or
        ``(6) institute other measures that improve groundwater and 
    surface water conservation, as determined by the Secretary, in the 
    agricultural operations of producers.
    ``(b) Net Savings.--The Secretary may provide assistance to a 
producer under this section only if the Secretary determines that the 
assistance will facilitate a conservation measure that results in a net 
savings in groundwater or surface water resources in the agricultural 
operation of the producer.
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
in addition to amounts made available under section 1241(a)(6) to carry 
out this chapter, the Secretary shall use--
        ``(1) to carry out this section--
            ``(A) $25,000,000 for fiscal year 2002;
            ``(B) $45,000,000 for fiscal year 2003; and
            ``(C) $60,000,000 for each of fiscal years 2004 through 
        2007; and
        ``(2) $50,000,000 to carry out water conservation activities in 
    Klamath Basin, California and Oregon, to be made available as soon 
    as practicable after the date of enactment of this section.''.

                     Subtitle E--Grassland Reserve

SEC. 2401. GRASSLAND RESERVE PROGRAM.

    Chapter 2 of the Food Security Act of 1985 (as amended by section 
2001) is amended by adding at the end the following:

               ``Subchapter C--Grassland Reserve Program

``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a grassland 
reserve program (referred to in this subchapter as the `program') to 
assist owners in restoring and conserving eligible land described in 
subsection (c).
    ``(b) Enrollment Conditions.--
        ``(1) Maximum enrollment.--The total number of acres enrolled 
    in the program shall not exceed 2,000,000 acres of restored or 
    improved grassland, rangeland, and pastureland.
        ``(2) Methods of enrollment.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the Secretary shall enroll in the program from a willing owner 
        not less than 40 contiguous acres of land through the use of--
                ``(i) a 10-year, 15-year, or 20-year rental agreement;
                ``(ii)(I) a 30-year rental agreement or permanent or 
            30-year easement; or
                ``(II) in a State that imposes a maximum duration for 
            easements, an easement for the maximum duration allowed 
            under State law.
            ``(B) Waiver.--The Secretary may enroll in the program such 
        parcels of land that are less than 40 acres as the Secretary 
        determines are appropriate to achieve the purposes of the 
        program.
        ``(3) Limitation on use of easements and rental agreements.--Of 
    the total amount of funds expended under the program to acquire 
    easements and rental agreements described in paragraph (2)(A)--
            ``(A) not more than 40 percent shall be used for rental 
        agreements described in paragraph (2)(A)(i); and
            ``(B) not more than 60 percent shall be used for easements 
        and rental agreements described in paragraph (2)(A)(ii).
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that the land is private land that 
is--
        ``(1) grassland, land that contains forbs, or shrubland 
    (including improved rangeland and pastureland); or
        ``(2) land that--
            ``(A) is located in an area that has been historically 
        dominated by grassland, forbs, or shrubland; and
            ``(B) has potential to serve as habitat for animal or plant 
        populations of significant ecological value if the land is--
                ``(i) retained in the current use of the land; or
                ``(ii) restored to a natural condition; or
        ``(3) land that is incidental to land described in paragraph 
    (1) or (2), if the incidental land is determined by the Secretary 
    to be necessary for the efficient administration of an agreement or 
    easement.

``SEC. 1238O. REQUIREMENTS RELATING TO EASEMENTS AND AGREEMENTS.

    ``(a) Requirements of Landowner.--
        ``(1) In general.--To be eligible to enroll land in the program 
    through the grant of an easement, the owner of the land shall enter 
    into an agreement with the Secretary--
            ``(A) to grant an easement that applies to the land to the 
        Secretary;
            ``(B) to create and record an appropriate deed restriction 
        in accordance with applicable State law to reflect the 
        easement;
            ``(C) to provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(D) to provide proof of unencumbered title to the 
        underlying fee interest in the land that is the subject of the 
        easement; and
            ``(E) to comply with the terms of the easement and 
        restoration agreement.
        ``(2) Agreements.--To be eligible to enroll land in the program 
    under an agreement, the owner or operator of the land shall agree--
            ``(A) to comply with the terms of the agreement (including 
        any related restoration agreements); and
            ``(B) to the suspension of any existing cropland base and 
        allotment history for the land under a program administered by 
        the Secretary.
    ``(b) Terms of Easement or Rental Agreement.--An easement or rental 
agreement under subsection (a) shall--
        ``(1) permit--
            ``(A) common grazing practices, including maintenance and 
        necessary cultural practices, on the land in a manner that is 
        consistent with maintaining the viability of grassland, forb, 
        and shrub species common to that locality;
            ``(B) subject to appropriate restrictions during the 
        nesting season for birds in the local area that are in 
        significant decline or are conserved in accordance with Federal 
        or State law, as determined by the Natural Resources 
        Conservation Service State conservationist, haying, mowing, or 
        harvesting for seed production; and
            ``(C) fire rehabilitation and construction of fire breaks 
        and fences (including placement of the posts necessary for 
        fences);
        ``(2) prohibit--
            ``(A) the production of crops (other than hay), fruit 
        trees, vineyards, or any other agricultural commodity that 
        requires breaking the soil surface; and
            ``(B) except as permitted under this subsection or 
        subsection (d), the conduct of any other activity that would 
        disturb the surface of the land covered by the easement or 
        rental agreement; and
        ``(3) include such additional provisions as the Secretary 
    determines are appropriate to carry out or facilitate the 
    administration of this subchapter.
    ``(c) Evaluation and Ranking of Easement and Rental Agreement 
Applications.--
        ``(1) In general.--The Secretary shall establish criteria to 
    evaluate and rank applications for easements and rental agreements 
    under this subchapter.
        ``(2) Considerations.--In establishing the criteria, the 
    Secretary shall emphasize support for--
            ``(A) grazing operations;
            ``(B) plant and animal biodiversity; and
            ``(C) grassland, land that contains forbs, and shrubland 
        under the greatest threat of conversion.
    ``(d) Restoration Agreements.--
        ``(1) In general.--The Secretary shall prescribe the terms of a 
    restoration agreement by which grassland, land that contains forbs, 
    or shrubland that is subject to an easement or rental agreement 
    entered into under the program shall be restored.
        ``(2) Requirements.--The restoration agreement shall describe 
    the respective duties of the owner and the Secretary (including the 
    Federal share of restoration payments and technical assistance).
    ``(e) Violations.--On a violation of the terms or conditions of an 
easement, rental agreement, or restoration agreement entered into under 
this section--
        ``(1) the easement or rental agreement shall remain in force; 
    and
        ``(2) the Secretary may require the owner to refund all or part 
    of any payments received by the owner under this subchapter, with 
    interest on the payments as determined appropriate by the 
    Secretary.

``SEC. 1238P. DUTIES OF SECRETARY.

    ``(a) In general.--In return for the granting of an easement, or 
the execution of a rental agreement, by an owner under this subchapter, 
the Secretary shall, in accordance with this section--
        ``(1) make easement or rental agreement payments to the owner 
    in accordance with subsection (b); and
        ``(2) make payments to the owner for the Federal share of the 
    cost of restoration in accordance with subsection (c).
    ``(b) Payments.--
        ``(1) Easement payments.--
            ``(A) Amount.--In return for the granting of an easement by 
        an owner under this subchapter, the Secretary shall make 
        easement payments to the owner in an amount equal to--
                ``(i) in the case of a permanent easement, the fair 
            market value of the land less the grazing value of the land 
            encumbered by the easement; and
                ``(ii) in the case of a 30-year easement or an easement 
            for the maximum duration allowed under applicable State 
            law, 30 percent of the fair market value of the land less 
            the grazing value of the land for the period during which 
            the land is encumbered by the easement.
            ``(B) Schedule.--Easement payments may be provided in not 
        less than 1 payment nor more than 10 annual payments of equal 
        or unequal amount, as agreed to by the Secretary and the owner.
        ``(2) Rental agreement payments.--In return for entering into a 
    rental agreement by an owner under this subchapter, the Secretary 
    shall make annual payments to the owner during the term of the 
    rental agreement in an amount that is not more than 75 percent of 
    the grazing value of the land covered by the contract.
    ``(c) Federal Share of Restoration.--The Secretary shall make 
payments to an owner under this section of not more than--
        ``(1) in the case of grassland, land that contains forbs, or 
    shrubland that has never been cultivated, 90 percent of the costs 
    of carrying out measures and practices necessary to restore 
    functions and values of that land; or
        ``(2) in the case of restored grassland, land that contains 
    forbs, or shrubland, 75 percent of those costs.
    ``(d) Payments to Others.--If an owner that is entitled to a 
payment under this subchapter dies, becomes incompetent, is otherwise 
unable to receive the payment, or is succeeded by another person who 
renders or completes the required performance, the Secretary shall make 
the payment, in accordance with regulations promulgated by the 
Secretary and without regard to any other provision of law, in such 
manner as the Secretary determines is fair and reasonable in light of 
all the circumstances.

``SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.

    ``(a) In General.--The Secretary may permit a private conservation 
or land trust organization (referred to in this section as a `private 
organization') or a State agency to hold and enforce an easement under 
this subchapter, in lieu of the Secretary, subject to the right of the 
Secretary to conduct periodic inspections and enforce the easement, 
if--
        ``(1) the Secretary determines that granting the permission 
    will promote protection of grassland, land that contains forbs, and 
    shrubland;
        ``(2) the owner authorizes the private organization or State 
    agency to hold and enforce the easement; and
        ``(3) the private organization or State agency agrees to assume 
    the costs incurred in administering and enforcing the easement, 
    including the costs of restoration or rehabilitation of the land as 
    specified by the owner and the private organization or State 
    agency.
    ``(b) Application.--A private organization or State agency that 
seeks to hold and enforce an easement under this subchapter shall apply 
to the Secretary for approval.
    ``(c) Approval by Secretary.--The Secretary may approve a private 
organization to hold and enforce an easement under this subchapter if 
(as determined by the Secretary) the private organization--
        ``(1)(A) is an organization described in section 501(c)(3) of 
    the Internal Revenue Code of 1986 that is exempt from taxation 
    under section 501(a) of that Code; or
        ``(B) is described in section 509(a)(3), and is controlled by 
    an organization described in section 509(a)(2), of that Code;
        ``(2) has the relevant experience necessary to administer 
    grassland and shrubland easements;
        ``(3) has a charter that describes the commitment of the 
    private organization to conserving ranchland, agricultural land, or 
    grassland for grazing and conservation purposes; and
        ``(4) has the resources necessary to effectuate the purposes of 
    the charter.
    ``(d) Reassignment.--
        ``(1) In general.--If a private organization holding an 
    easement on land under this subchapter terminates, not later than 
    30 days after termination of the private organization, the owner of 
    the land shall reassign the easement to--
            ``(A) a new private organization that is approved by the 
        Secretary; or
            ``(B) the Secretary.
        ``(2) Notification of secretary.--
            ``(A) In general.--If the easement is reassigned to a new 
        private organization, not later than 60 days after the date of 
        reassignment, the owner and the new organization shall notify 
        the Secretary in writing that a reassignment for termination 
        has been made.
            ``(B) Failure to notify.--If the owner and the new 
        organization fail to notify the Secretary of the reassignment 
        in accordance with subparagraph (A), the easement shall revert 
        to the control of the Secretary.''.

                Subtitle F--Other Conservation Programs

SEC. 2501. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Agricultural Management Assistance.--
        ``(1) Authority.--The Secretary shall provide financial 
    assistance to producers in the States of Connecticut, Delaware, 
    Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, 
    New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, 
    and Wyoming.
        ``(2) Uses.--A producer may use financial 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 or 
        marketing diversification or resource conservation practices, 
        including--
                ``(i) soil erosion control;
                ``(ii) integrated pest management;
                ``(iii) organic farming; or
                ``(iv) to develop and implement a plan to create 
            marketing opportunities for the producer, including through 
            value-added processing;
            ``(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 relating to an activity 
        described in subparagraphs (A) through (E), as determined by 
        the Secretary.
        ``(3) 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.
        ``(4) Commodity credit corporation.--
            ``(A) In general.--The Secretary shall carry out this 
        subsection through the Commodity Credit Corporation.
            ``(B) Funding.--
                ``(i) In general.--Except as provided in clause (ii), 
            the Commodity Credit Corporation shall make available to 
            carry out this subsection not less than $10,000,000 for 
            each fiscal year.
                ``(ii) Exception.--For each of fiscal years 2003 
            through 2007, the Commodity Credit Corporation shall make 
            available to carry out this subsection $20,000,000.''.

SEC. 2502. GRAZING, WILDLIFE HABITAT INCENTIVE, SOURCE WATER 
              PROTECTION, AND GREAT LAKES BASIN PROGRAMS.

    (a) In General.--Chapter 5 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended to read as 
follows:

                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

``SEC. 1240M. CONSERVATION OF PRIVATE GRAZING LAND.

    ``(a) Purpose.--It is the purpose of this section to authorize the 
Secretary to provide a coordinated technical, educational, and related 
assistance program to conserve and enhance private grazing land 
resources and provide related benefits to all citizens of the United 
States by--
        ``(1) establishing a coordinated and cooperative Federal, 
    State, and local grazing conservation program for management of 
    private grazing land;
        ``(2) strengthening technical, educational, and related 
    assistance programs that provide assistance to owners and managers 
    of private grazing land;
        ``(3) conserving and improving wildlife habitat on private 
    grazing land;
        ``(4) conserving and improving fish habitat and aquatic systems 
    through grazing land conservation treatment;
        ``(5) protecting and improving water quality;
        ``(6) improving the dependability and consistency of water 
    supplies;
        ``(7) identifying and managing weed, noxious weed, and brush 
    encroachment problems on private grazing land; and
        ``(8) integrating conservation planning and management 
    decisions by owners and managers of private grazing land, on a 
    voluntary basis.
    ``(b) Definitions.--In this section:
        ``(1) Department.--The term `Department' means the Department 
    of Agriculture.
        ``(2) Private grazing land.--The term `private grazing land' 
    means private, State-owned, tribally-owned, and any other non-
    federally owned rangeland, pastureland, grazed forest land, and hay 
    land.
        ``(3) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
    ``(c) Private Grazing Land Conservation Assistance.--
        ``(1) Assistance to grazing landowners and others.--Subject to 
    the availability of appropriations for this section, the Secretary 
    shall establish a voluntary program to provide technical, 
    educational, and related assistance to owners and managers of 
    private grazing land and public agencies, through local 
    conservation districts, to enable the landowners, managers, and 
    public agencies to voluntarily carry out activities that are 
    consistent with this section, including--
            ``(A) maintaining and improving private grazing land and 
        the multiple values and uses that depend on private grazing 
        land;
            ``(B) implementing grazing land management technologies;
            ``(C) managing resources on private grazing land, 
        including--
                ``(i) planning, managing, and treating private grazing 
            land resources;
                ``(ii) ensuring the long-term sustainability of private 
            grazing land resources;
                ``(iii) harvesting, processing, and marketing private 
            grazing land resources; and
                ``(iv) identifying and managing weed, noxious weed, and 
            brush encroachment problems;
            ``(D) protecting and improving the quality and quantity of 
        water yields from private grazing land;
            ``(E) maintaining and improving wildlife and fish habitat 
        on private grazing land;
            ``(F) enhancing recreational opportunities on private 
        grazing land;
            ``(G) maintaining and improving the aesthetic character of 
        private grazing land;
            ``(H) identifying the opportunities and encouraging the 
        diversification of private grazing land enterprises; and
            ``(I) encouraging the use of sustainable grazing systems, 
        such as year-round, rotational, or managed grazing.
        ``(2) Program elements.--
            ``(A) Funding.--If funding is provided to carry out this 
        section, it shall be provided through a specific line-item in 
        the annual appropriations for the Natural Resources 
        Conservation Service.
            ``(B) Technical assistance and education.--Personnel of the 
        Department trained in pasture and range management shall be 
        made available under the program to deliver and coordinate 
        technical assistance and education to owners and managers of 
        private grazing land, at the request of the owners and 
        managers.
    ``(d) Grazing Technical Assistance Self-Help.--
        ``(1) Findings.--Congress finds that--
            ``(A) there is a severe lack of technical assistance for 
        farmers and ranchers that graze livestock;
            ``(B) Federal budgetary constraints preclude any 
        significant expansion, and may force a reduction of, current 
        levels of technical support; and
            ``(C) farmers and ranchers have a history of cooperatively 
        working together to address common needs in the promotion of 
        their products and in the drainage of wet areas through 
        drainage districts.
        ``(2) Establishment of grazing demonstration.--In accordance 
    with paragraph (3), the Secretary may establish 2 grazing 
    management demonstration districts at the recommendation of the 
    grazing land conservation initiative steering committee.
        ``(3) Procedure.--
            ``(A) Proposal.--Within a reasonable time after the 
        submission of a request of an organization of farmers or 
        ranchers engaged in grazing, the Secretary shall propose that a 
        grazing management district be established.
            ``(B) Funding.--The terms and conditions of the funding and 
        operation of the grazing management district shall be proposed 
        by the producers.
            ``(C) Approval.--The Secretary shall approve the proposal 
        if the Secretary determines that the proposal--
                ``(i) is reasonable;
                ``(ii) will promote sound grazing practices; and
                ``(iii) contains provisions similar to the provisions 
            contained in the beef promotion and research order issued 
            under section 4 of the Beef Research and Information Act (7 
            U.S.C. 2903) in effect on April 4, 1996.
            ``(D) Area included.--The area proposed to be included in a 
        grazing management district shall be determined by the 
        Secretary on the basis of an application by farmers or 
        ranchers.
            ``(E) Authorization.--The Secretary may use authority under 
        the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
        reenacted with amendments by the Agricultural Marketing 
        Agreement Act of 1937, to operate, on a demonstration basis, a 
        grazing management district.
            ``(F) Activities.--The activities of a grazing management 
        district shall be scientifically sound activities, as 
        determined by the Secretary in consultation with a technical 
        advisory committee composed of ranchers, farmers, and technical 
        experts.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2002 through 2007.

``SEC. 1240N. WILDLIFE HABITAT INCENTIVE PROGRAM.

    ``(a) In General.--The Secretary, in consultation with the State 
technical committees established under section 1261, shall establish 
within the Natural Resources Conservation Service a program to be known 
as the wildlife habitat incentive program (referred to in this section 
as the `program').
    ``(b) Cost-Share Payments.--
        ``(1) In general.--Under the program, the Secretary shall make 
    cost-share payments to landowners to develop--
            ``(A) upland wildlife habitat;
            ``(B) wetland wildlife habitat;
            ``(C) habitat for threatened and endangered species;
            ``(D) fish habitat; and
            ``(E) other types of wildlife habitat approved by the 
        Secretary.
        ``(2) Increased cost share for long-term agreements.--
            ``(A) In general.--In a case in which the Secretary enters 
        into an agreement or contract to protect and restore plant and 
        animal habitat that has a term of at least 15 years, the 
        Secretary may provide cost-share payments in addition to 
        amounts provided under paragraph (1).
            ``(B) Funding limitation.--The Secretary may use, for a 
        fiscal year, not more than 15 percent of funds made available 
        under section 1241(a)(7) for the fiscal year to carry out 
        contracts and agreements described in subparagraph (A).
    ``(c) Regional Equity.--In carrying out this section, the Secretary 
shall, to the maximum extent practicable, ensure that regional issues 
of concern relating to wildlife habitat are addressed in an appropriate 
manner.

``SEC. 1240O. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    ``(a) In General.--The Secretary shall establish a national 
grassroots water protection program to more effectively use onsite 
technical assistance capabilities of each State rural water association 
that, as of the date of enactment of this section, operates a wellhead 
or groundwater protection program in the State.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2002 through 2007.

``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
              CONTROL.

    ``(a) In General.--The Secretary, in consultation with the Great 
Lakes Commission created by Article IV of the Great Lakes Basin Compact 
(82 Stat. 415) and in cooperation with the Administrator of the 
Environmental Protection Agency and the Secretary of the Army, may 
carry out the Great Lakes basin program for soil erosion and sediment 
control (referred to in this section as the `program').
    ``(b) Assistance.--In carrying out the program, the Secretary may--
        ``(1) provide project demonstration grants, provide technical 
    assistance, and carry out information and education programs to 
    improve water quality in the Great Lakes basin by reducing soil 
    erosion and improving sediment control; and
        ``(2) provide a priority for projects and activities that 
    directly reduce soil erosion or improve sediment control.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2002 through 2007.''.
    (b) Conforming Amendment.--Sections 386 and 387 of the Federal 
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 2005b, 3836a) 
are repealed.

SEC. 2503. FARMLAND PROTECTION PROGRAM.

    (a) In General.--Chapter 2 of the Food Security Act of 1985 (as 
amended by section 2001) is amended by adding at the end the following:

              ``Subchapter B--Farmland Protection Program

``SEC. 1238H. DEFINITIONS.

    ``In this subchapter:
        ``(1) Eligible entity.--The term `eligible entity' means--
            ``(A) any agency of any State or local government or an 
        Indian tribe (including a farmland protection board or land 
        resource council established under State law); or
            ``(B) any organization that--
                ``(i) is organized for, and at all times since the 
            formation of the organization has been operated principally 
            for, 1 or more of the conservation purposes specified in 
            clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of 
            the Internal Revenue Code of 1986;
                ``(ii) is an organization described in section 
            501(c)(3) of that Code that is exempt from taxation under 
            section 501(a) of that Code;
                ``(iii) is described in section 509(a)(2) of that Code; 
            or
                ``(iv) is described in section 509(a)(3), and is 
            controlled by an organization described in section 
            509(a)(2), of that Code.
        ``(2) Eligible land.--
            ``(A) In general.--The term `eligible land' means land on a 
        farm or ranch that--
                ``(i)(I) has prime, unique, or other productive soil; 
            or
                ``(II) contains historical or archaeological resources; 
            and
                ``(ii) is subject to a pending offer for purchase from 
            an eligible entity.
            ``(B) Inclusions.--The term `eligible land' includes, on a 
        farm or ranch--
                ``(i) cropland;
                ``(ii) rangeland;
                ``(iii) grassland;
                ``(iv) pasture land; and
                ``(v) forest land that is an incidental part of an 
            agricultural operation, as determined by the Secretary.
        ``(3) Indian tribe.--The term `Indian tribe' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
        ``(4) Program.--The term `program' means the farmland 
    protection program established under section 1238I(a).

``SEC. 1238I. FARMLAND PROTECTION.

    ``(a) In General.--The Secretary, acting through the Natural 
Resources Conservation Service, shall establish and carry out a 
farmland protection program under which the Secretary shall purchase 
conservation easements or other interests in eligible land that is 
subject to a pending offer from an eligible entity for the purpose of 
protecting topsoil by limiting nonagricultural uses of the land.
    ``(b) Conservation Plan.--Any highly erodible cropland for which a 
conservation easement or other interest is purchased under this 
subchapter shall be subject to the requirements of a conservation plan 
that requires, at the option of the Secretary, the conversion of the 
cropland to less intensive uses.
    ``(c) Cost Sharing.--
        ``(1) Farmland protection.--
            ``(A) Share provided under this subsection.--The share of 
        the cost of purchasing a conservation easement or other 
        interest in eligible land described in subsection (a) provided 
        under section 1241(d) shall not exceed 50 percent of the 
        appraised fair market value of the conservation easement or 
        other interest in eligible land.
            ``(B) Share not provided under this subsection.--As part of 
        the share of the cost of purchasing a conservation easement or 
        other interest in eligible land described in subsection (a) 
        that is not provided under section 1241(d), an eligible entity 
        may include a charitable donation by the private landowner from 
        which the eligible land is to be purchased of not more than 25 
        percent of the fair market value of the conservation easement 
        or other interest in eligible land.
        ``(2) Bidding down.--If the Secretary determines that 2 or more 
    applications for the purchase of a conservation easement or other 
    interest in eligible land described in subsection (a) are 
    comparable in achieving the purposes of this section, the Secretary 
    shall not assign a higher priority to any 1 of those applications 
    solely on the basis of lesser cost to the farmland protection 
    program established under subsection (a).

``SEC. 1238J. FARM VIABILITY PROGRAM.

    ``(a) In General.--The Secretary may provide to eligible entities 
identified by the Secretary grants for use in carrying out farm 
viability programs developed by the eligible entities and approved by 
the Secretary.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section such sums as 
are necessary for each of fiscal years 2002 through 2007.''.
    (b) Conforming Amendments.--
        (1) In general.--
            (A) Section 388 of the Federal Agriculture Improvement and 
        Reform Act of 1996 (16 U.S.C. 3830 note; Public Law 104-127) is 
        repealed.
            (B) Section 211 of the Agriculture Risk Protection Act of 
        2000 (16 U.S.C. 3830 note; Public Law 106-224) is amended--
                (i) by striking subsection (a); and
                (ii) in subsection (b)--

                    (I) by striking the subsection designation and the 
                subsection heading;
                    (II) by redesignating paragraphs (1), (2), and (3) 
                as subsections (a), (b), and (c), respectively, and 
                indenting appropriately;
                    (III) in subsection (a) (as so redesignated), by 
                redesignating subparagraphs (A), (B), and (C) as 
                paragraphs (1), (2), and (3), respectively, and 
                indenting appropriately;
                    (IV) in subsection (b) (as so redesignated), by 
                striking ``assistance'' and inserting ``Assistance''; 
                and
                    (V) by striking ``subsection'' each place it 
                appears and inserting ``section''.

        (2) Effect on contracts.--The amendment made by paragraph 
    (1)(A) shall have no effect on any contract entered into under 
    section 388 of the Federal Agriculture Improvement and Reform Act 
    of 1996 (16 U.S.C. 3830 note) that is in effect as of the date of 
    enactment of this Act.

SEC. 2504. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    Subtitle H of title XV of the Agriculture and Food Act of 1981 (16 
U.S.C. 3451 et seq.) is amended to read as follows:

      ``Subtitle H--Resource Conservation and Development Program

``SEC. 1528. DEFINITIONS.

    ``In this subtitle:
        ``(1) Area plan.--The term `area plan' means a resource 
    conservation and use plan developed through a planning process by a 
    council for a designated area of 1 or more States, or of land under 
    the jurisdiction of an Indian tribe, that includes 1 or more of the 
    following elements:
            ``(A) A land conservation element, the purpose of which is 
        to control erosion and sedimentation.
            ``(B) A water management element that provides 1 or more 
        clear environmental or conservation benefits, the purpose of 
        which is to provide for--
                ``(i) the conservation, use, and quality of water, 
            including irrigation and rural water supplies;
                ``(ii) the mitigation of floods and high water tables;
                ``(iii) the repair and improvement of reservoirs;
                ``(iv) the improvement of agricultural water 
            management; and
                ``(v) the improvement of water quality.
            ``(C) A community development element, the purpose of which 
        is to improve--
                ``(i) the development of resources-based industries;
                ``(ii) the protection of rural industries from natural 
            resource hazards;
                ``(iii) the development of adequate rural water and 
            waste disposal systems;
                ``(iv) the improvement of recreation facilities;
                ``(v) the improvement in the quality of rural housing;
                ``(vi) the provision of adequate health and education 
            facilities;
                ``(vii) the satisfaction of essential transportation 
            and communication needs; and
                ``(viii) the promotion of food security, economic 
            development, and education.
            ``(D) A land management element, the purpose of which is--
                ``(i) energy conservation, including the production of 
            energy crops;
                ``(ii) the protection of agricultural land, as 
            appropriate, from conversion to other uses;
                ``(iii) farmland protection; and
                ``(iv) the protection of fish and wildlife habitats.
        ``(2) Board.--The term `Board' means the Resource Conservation 
    and Development Policy Advisory Board established under section 
    1533(a).
        ``(3) Council.--The term `council' means a nonprofit entity 
    (including an affiliate of the entity) operating in a State that 
    is--
            ``(A) established by volunteers or representatives of 
        States, local units of government, Indian tribes, or local 
        nonprofit organizations to carry out an area plan in a 
        designated area; and
            ``(B) designated by the chief executive officer or 
        legislature of the State to receive technical assistance and 
        financial assistance under this subtitle.
        ``(4) Designated area.--The term `designated area' means a 
    geographic area designated by the Secretary to receive technical 
    assistance and financial assistance under this subtitle.
        ``(5) Financial assistance.--The term `financial assistance' 
    means a grant or loan provided by the Secretary (or the Secretary 
    and other Federal agencies) to, or a cooperative agreement entered 
    into by the Secretary (or the Secretary and other Federal agencies) 
    with, a council, or association of councils, to carry out an area 
    plan in a designated area, including assistance provided for 
    planning, analysis, feasibility studies, training, education, and 
    other activities necessary to carry out the area plan.
        ``(6) Indian tribe.--The term `Indian tribe' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
        ``(7) Local unit of government.--The term `local unit of 
    government' means--
            ``(A) any county, city, town, township, parish, village, or 
        other general-purpose subdivision of a State; and
            ``(B) any local or regional special district or other 
        limited political subdivision of a State, including any soil 
        conservation district, school district, park authority, and 
        water or sanitary district.
        ``(8) Nonprofit organization.--The term `nonprofit 
    organization' means any organization that is--
            ``(A) described in section 501(c) of the Internal Revenue 
        Code of 1986; and
            ``(B) exempt from taxation under section 501(a) of the 
        Internal Revenue Code of 1986.
        ``(9) Planning process.--The term `planning process' means 
    actions taken by a council to develop and carry out an effective 
    area plan in a designated area, including development of the area 
    plan, goals, purposes, policies, implementation activities, 
    evaluations and reviews, and the opportunity for public 
    participation in the actions.
        ``(10) Project.--The term `project' means a project that is 
    carried out by a council to achieve any of the elements of an area 
    plan.
        ``(11) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
        ``(12) State.--The term `State' means--
            ``(A) any State;
            ``(B) the District of Columbia; or
            ``(C) any territory or possession of the United States.
        ``(13) Technical assistance.--The term `technical assistance' 
    means any service provided by the Secretary or agent of the 
    Secretary, including--
            ``(A) inventorying, evaluating, planning, designing, 
        supervising, laying out, and inspecting projects;
            ``(B) providing maps, reports, and other documents 
        associated with the services provided;
            ``(C) providing assistance for the long-term implementation 
        of area plans; and
            ``(D) providing services of an agency of the Department of 
        Agriculture to assist councils in developing and carrying out 
        area plans.

``SEC. 1529. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    ``The Secretary shall establish a resource conservation and 
development program under which the Secretary shall provide technical 
assistance and financial assistance to councils to develop and carry 
out area plans and projects in designated areas--
        ``(1) to conserve and improve the use of land, develop natural 
    resources, and improve and enhance the social, economic, and 
    environmental conditions in primarily rural areas of the United 
    States; and
        ``(2) to encourage and improve the capability of State, units 
    of government, Indian tribes, nonprofit organizations, and councils 
    to carry out the purposes described in paragraph (1).

``SEC. 1530. SELECTION OF DESIGNATED AREAS.

    ``The Secretary shall select designated areas for assistance under 
this subtitle on the basis of the elements of area plans.

``SEC. 1531. POWERS OF THE SECRETARY.

    ``In carrying out this subtitle, the Secretary may--
        ``(1) provide technical assistance to any council to assist in 
    developing and implementing an area plan for a designated area;
        ``(2) cooperate with other departments and agencies of the 
    Federal Government, States, local units of government, local Indian 
    tribes, and local nonprofit organizations in conducting surveys and 
    inventories, disseminating information, and developing area plans;
        ``(3) assist in carrying out an area plan approved by the 
    Secretary for any designated area by providing technical assistance 
    and financial assistance to any council; and
        ``(4) enter into agreements with councils in accordance with 
    section 1532.

``SEC. 1532. ELIGIBILITY; TERMS AND CONDITIONS.

    ``(a) Eligibility.--Technical assistance and financial assistance 
may be provided by the Secretary under this subtitle to any council to 
assist in carrying out a project specified in an area plan approved by 
the Secretary only if--
        ``(1) the council agrees in writing--
            ``(A) to carry out the project; and
            ``(B) to finance or arrange for financing of any portion of 
        the cost of carrying out the project for which financial 
        assistance is not provided by the Secretary under this 
        subtitle;
        ``(2) the project is included in an area plan and is approved 
    by the council;
        ``(3) the Secretary determines that assistance is necessary to 
    carry out the area plan;
        ``(4) the project provided for in the area plan is consistent 
    with any comprehensive plan for the area;
        ``(5) the cost of the land or an interest in the land acquired 
    or to be acquired under the plan by any State, local unit of 
    government, Indian tribe, or local nonprofit organization is borne 
    by the State, local unit of government, Indian tribe, or local 
    nonprofit organization, respectively; and
        ``(6) the State, local unit of government, Indian tribe, or 
    local nonprofit organization participating in the area plan agrees 
    to maintain and operate the project.
    ``(b) Loans.--
        ``(1) In general.--Subject to paragraphs (2) and (3), a loan 
    made under this subtitle shall be made on such terms and conditions 
    as the Secretary may prescribe.
        ``(2) Term.--A loan for a project made under this subtitle 
    shall have a term of not more than 30 years after the date of 
    completion of the project.
        ``(3) Interest rate.--A loan made under this subtitle shall 
    bear interest at the average rate of interest paid by the United 
    States on obligations of a comparable term, as determined by the 
    Secretary of the Treasury.
    ``(c) Approval by Secretary.--Technical assistance and financial 
assistance under this subtitle may not be made available to a council 
to carry out an area plan unless the area plan has been submitted to 
and approved by the Secretary.
    ``(d) Withdrawal.--The Secretary may withdraw technical assistance 
and financial assistance with respect to any area plan if the Secretary 
determines that the assistance is no longer necessary or that 
sufficient progress has not been made toward developing or implementing 
the elements of the area plan.

``SEC. 1533. RESOURCE CONSERVATION AND DEVELOPMENT POLICY ADVISORY 
              BOARD.

    ``(a) Establishment.--The Secretary shall establish within the 
Department of Agriculture a Resource Conservation and Development 
Policy Advisory Board.
    ``(b) Composition.--
        ``(1) In general.--The Board shall be composed of at least 7 
    employees of the Department of Agriculture selected by the 
    Secretary.
        ``(2) Chairperson.--A member of the Board shall be designated 
    by the Secretary to serve as chairperson of the Board.
    ``(c) Duties.--The Board shall advise the Secretary regarding the 
administration of this subtitle, including the formulation of policies 
for carrying out this subtitle.

``SEC. 1534. EVALUATION OF PROGRAM.

    ``(a) In General.--The Secretary, in consultation with councils, 
shall evaluate the program established under this subtitle to determine 
whether the program is effectively meeting the needs of, and the 
purposes identified by, States, units of government, Indian tribes, 
nonprofit organizations, and councils participating in, or served by, 
the program.
    ``(b) Report.--Not later than June 30, 2005, 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 the results of the evaluation, together with any 
recommendations of the Secretary for continuing, terminating, or 
modifying the program.

``SEC. 1535. LIMITATION ON ASSISTANCE.

    ``In carrying out this subtitle, the Secretary shall provide 
technical assistance and financial assistance with respect to not more 
than 450 active designated areas.

``SEC. 1536. SUPPLEMENTAL AUTHORITY OF THE SECRETARY.

    ``The authority of the Secretary under this subtitle to assist 
councils in the development and implementation of area plans shall be 
supplemental to, and not in lieu of, any authority of the Secretary 
under any other provision of law.

``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be such sums as are 
necessary to carry out this subtitle.
    ``(b) Loans.--The Secretary shall not use more than $15,000,000 of 
any funds made available for a fiscal year to make loans under this 
subtitle.
    ``(c) Availability.--Funds appropriated to carry out this subtitle 
shall remain available until expended.''.

SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14 of the Watershed Protection and Flood Prevention Act (16 
U.S.C. 1012) is amended by striking subsection (h) and inserting the 
following:
    ``(h) Funding.--
        ``(1) Funds of commodity credit corporation.--In carrying out 
    this section, of the funds of the Commodity Credit Corporation, the 
    Secretary shall make available, to remain available until 
    expended--
            ``(A) $45,000,000 for fiscal year 2003;
            ``(B) $50,000,000 for fiscal year 2004;
            ``(C) $55,000,000 for fiscal year 2005;
            ``(D) $60,000,000 for fiscal year 2006;
            ``(E) $65,000,000 for fiscal year 2007; and
            ``(F) $0 for fiscal year 2008.
        ``(2) Authorization of appropriations.--In addition to amounts 
    made available under paragraph (1), there are authorized to be 
    appropriated to the Secretary to carry out this section, to remain 
    available until expended--
            ``(A) $45,000,000 for fiscal year 2003;
            ``(B) $55,000,000 for fiscal year 2004;
            ``(C) $65,000,000 for fiscal year 2005;
            ``(D) $75,000,000 for fiscal year 2006; and
            ``(E) $85,000,000 for fiscal year 2007.''.

SEC. 2506. USE OF SYMBOLS, SLOGANS, AND LOGOS.

    Section 356 of the Federal Agriculture Improvement Act of 1996 (16 
U.S.C. 5801 et seq.) is amended--
        (1) in subsection (c)--
            (A) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively; and
            (B) by inserting after paragraph (3) the following:
        ``(4) on the written approval of the Secretary, to use, 
    license, or transfer symbols, slogans, and logos of the Foundation 
    (exclusive of any symbol or logo of a governmental entity);''; and
        (2) in subsection (d), by adding at the end the following:
        ``(3) Use of symbols, slogans, and logos of the foundation.--
            ``(A) In general.--The Secretary may authorize the 
        Foundation to use, license, or transfer symbols, slogans, and 
        logos of the Foundation.
            ``(B) Income.--
                ``(i) In general.--All revenue received by the 
            Foundation from the use, licensing, or transfer of symbols, 
            slogans, and logos of the Foundation shall be transferred 
            to the Secretary.
                ``(ii) Conservation operations.--The Secretary shall 
            transfer all revenue received under clause (i) to the 
            account within the Natural Resources Conservation Service 
            that is used to carry out conservation operations.''.

SEC. 2507. DESERT TERMINAL LAKES.

    ``(a) In General.--Subject to subsection (b), as soon as 
practicable after the date of enactment of this Act, the Secretary of 
Agriculture shall transfer $200,000,000 of the funds of the Commodity 
Credit Corporation to the Bureau of Reclamation Water and Related 
Resources Account, which funds shall--
        ``(1) be used by the Secretary of the Interior, acting through 
    the Commissioner of Reclamation, to provide water to at-risk 
    natural desert terminal lakes; and
        ``(2) remain available until expended.
    ``(b) Limitation.--The funds described in subsection (a) shall not 
be used to purchase or lease water rights.

        Subtitle G--Conservation Corridor Demonstration Program

SEC. 2601. DEFINITIONS.

    In this subtitle:
        (1) Delmarva peninsula.--The term ``Delmarva Peninsula'' means 
    land in the States of Delaware, Maryland, and Virginia located on 
    the east side of the Chesapeake Bay.
        (2) Demonstration program.--The term ``demonstration program'' 
    means the Conservation Corridor Demonstration Program established 
    under this subtitle.
        (3) Conservation corridor plan; plan.--The terms ``conservation 
    corridor plan'' and ``plan'' mean a conservation corridor plan 
    required to be submitted and approved as a condition for 
    participation in the demonstration program.
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.

SEC. 2602. CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary shall carry out a demonstration 
program, to be known as the ``Conservation Corridor Demonstration 
Program'', under which any of the States of Delaware, Maryland, and 
Virginia, a local government of any 1 of those States with jurisdiction 
over land on the Delmarva Peninsula, or a combination of those States, 
may submit a conservation corridor plan to integrate agriculture and 
forestry conservation programs of the Department of Agriculture with 
State and local efforts to address farm conservation needs.
    (b) Submission of Conservation Corridor Plan.--
        (1) Submission and proposal.--To be eligible to participate in 
    the demonstration program, a State, local government, or 
    combination of States referred to in subsection (a) shall--
            (A) submit to the Secretary a conservation corridor plan 
        that--
                (i) proposes specific criteria and commitment of 
            resources in the geographic region designated in the plan; 
            and
                (ii) describes how the linkage of Federal, State, and 
            local resources will improve--

                    (I) the economic viability of agriculture; and
                    (II) the environmental integrity of the watersheds 
                in the Delmarva Peninsula; and

            (B) demonstrate to the Secretary that, in developing the 
        plan, the State, local government, or combination of States has 
        solicited and taken into account the views of local residents.
        (2) Draft memorandum of agreement.--If the conservation 
    corridor plan is submitted by more than 1 State, the plan shall 
    provide a draft memorandum of agreement among entities in each 
    submitting State.
    (c) Review of Plan.--Not later than 90 days after the date of 
receipt of a conservation corridor plan, the Secretary--
        (1) shall review the plan; and
        (2) may approve the plan for implementation under this subtitle 
    if the Secretary determines that the plan meets the requirements 
    specified in subsection (d).
    (d) Criteria for Approval.--The Secretary may approve a 
conservation corridor plan only if, as determined by the Secretary, the 
plan provides for each of the following:
        (1) Voluntary actions.--Actions taken under the plan--
            (A) are voluntary;
            (B) require the consent of willing landowners; and
            (C) provide a mechanism by which the landowner may withdraw 
        such consent without adverse consequences other than the loss 
        of any payments to the landowner conditioned on continued 
        enrollment of the land.
        (2) Land of high conservation value.--Criteria specified in the 
    plan ensure that land enrolled in each conservation program 
    incorporated through the plan are of exceptionally high 
    conservation value, as determined by the Secretary.
        (3) No effect on unenrolled land.--The enrollment of land in a 
    conservation program incorporated through the plan will neither--
            (A) adversely affect any adjacent land not so enrolled; nor
            (B) create any buffer zone on such unenrolled land.
        (4) Greater benefits.--The conservation programs incorporated 
    through the plan provide benefits greater than the benefits that 
    would likely be achieved through individual application of the 
    conservation programs.
        (5) Sufficient staffing.--Staffing, considering both Federal 
    and non-Federal resources, is sufficient to ensure success of the 
    plan.

SEC. 2603. IMPLEMENTATION OF CONSERVATION CORRIDOR PLAN.

    (a) Memorandum of Agreement.--On approval of a conservation 
corridor plan, the Secretary may enter into a memorandum of agreement 
with the State, local government, or combination of States that 
submitted the plan to--
        (1) guarantee specific program resources for implementation of 
    the plan;
        (2) establish various compensation rates to the extent that the 
    parties to the agreement consider justified; and
        (3) provide streamlined and integrated paperwork requirements.
    (b) Continued Compliance With Plan Approval Criteria.--The 
Secretary shall terminate the memorandum of agreement entered into 
under subsection (a) with respect to an approved conservation corridor 
plan and cease the provision of resources for implementation of the 
plan if the Secretary determines that, in the implementation of the 
plan--
        (1) the State, local government, or combination of States that 
    submitted the plan has deviated from--
            (A) the plan;
            (B) the criteria specified in section 2602(d) on which 
        approval of the plan was conditioned; or
            (C) the cost-sharing requirements of section 2604(a) or any 
        other condition of the plan; or
        (2) the economic viability of agriculture in the geographic 
    region designated in the plan is being hindered.
    (c) Progress Report.--At the end of the 3-year period that begins 
on the date on which funds are first provided with respect to a 
conservation corridor plan under the demonstration program, the State, 
local government, or combination of States that submitted the plan 
shall submit to the Secretary--
        (1) a report on the effectiveness of the activities carried out 
    under the plan; and
        (2) an evaluation of the economic viability of agriculture in 
    the geographic region designated in the plan.
    (d) Duration.--The demonstration program shall be carried out for 
not less than 3 nor more than 5 years beginning on the date on which 
funds are first provided under the demonstration program.

SEC. 2604. FUNDING REQUIREMENTS.

    (a) Cost Sharing.--
        (1) Required non-federal share.--Subject to paragraph (2), as a 
    condition on the approval of a conservation corridor plan, the 
    Secretary shall require the State and local participants to 
    contribute financial resources sufficient to cover at least 50 
    percent of the total cost of the activities carried out under the 
    plan.
        (2) Exception.--The Secretary may reduce the cost-sharing 
    requirement in the case of a specific project or activity under the 
    demonstration program on good cause and on demonstration that the 
    project or activity is likely to achieve extraordinary natural 
    resource benefits.
    (b) Reservation of Funds.--The Secretary may consider directing 
funds on a priority basis to the demonstration program and to projects 
in areas identified by the plan.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this subtitle for 
each of fiscal years 2002 through 2007.

                 Subtitle H--Funding and Administration

SEC. 2701. FUNDING AND ADMINISTRATION.

    Subtitle E of the Food Security Act of 1985 is amended by striking 
sections 1241 and 1242 (16 U.S.C. 3841, 3842) and inserting the 
following:

``SEC. 1241. COMMODITY CREDIT CORPORATION.

    ``(a) In General.--For each of fiscal years 2002 through 2007, the 
Secretary shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out the following programs under 
subtitle D (including the provision of technical assistance):
        ``(1) The conservation reserve program under subchapter B of 
    chapter 1.
        ``(2) The wetlands reserve program under subchapter C of 
    chapter 1.
        ``(3) The conservation security program under subchapter A of 
    chapter 2.
        ``(4) The farmland protection program under subchapter B of 
    chapter 2, using, to the maximum extent practicable--
            ``(A) $50,000,000 in fiscal year 2002;
            ``(B) $100,000,000 in fiscal year 2003;
            ``(C) $125,000,000 in each of fiscal years 2004 and 2005;
            ``(D) $100,000,000 in fiscal year 2006; and
            ``(E) $97,000,000 in fiscal year 2007.
        ``(5) The grassland reserve program under subchapter C of 
    chapter 2, using, to the maximum extent practicable $254,000,000 
    for the period of fiscal years 2003 through 2007.
        ``(6) The environmental quality incentives program under 
    chapter 4, using, to the maximum extent practicable--
            ``(A) $400,000,000 in fiscal year 2002;
            ``(B) $700,000,000 in fiscal year 2003;
            ``(C) $1,000,000,000 in fiscal year 2004;
            ``(D) $1,200,000,000 in each of fiscal years 2005 and 2006; 
        and
            ``(E) $1,300,000,000 in fiscal year 2007.
        ``(7) The wildlife habitat incentives program under section 
    1240N, using, to the maximum extent practicable--
            ``(A) $15,000,000 in fiscal year 2002;
            ``(B) $30,000,000 in fiscal year 2003;
            ``(C) $60,000,000 in fiscal year 2004; and
            ``(D) $85,000,000 in each of fiscal years 2005 through 
        2007.
    ``(b) Section 11.--Nothing in this section affects the limit on 
expenditures for technical assistance imposed by section 11 of the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714i).
    ``(c) Regional Equity.--Before April 1 of each fiscal year, the 
Secretary shall give priority for funding under the conservation 
programs under subtitle D (excluding the conservation reserve program 
under subchapter B of chapter 1, the wetlands reserve program under 
subchapter C of chapter 1, and the conservation security program under 
subchapter A of chapter 2) to approved applications in any State that 
has not received, for the fiscal year, an aggregate amount of at least 
$12,000,000 for those conservation programs.

``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide technical assistance 
under this title to a producer eligible for that assistance--
        ``(1) directly; or
        ``(2) at the option of the producer, through a payment, as 
    determined by the Secretary, to the producer for an approved third 
    party, if available.
    ``(b) Certification of Third-Party Providers.--
        ``(1) In general.--Not later than 180 days after the date of 
    enactment of the Farm Security and Rural Investment Act of 2002, 
    the Secretary shall, by regulation, establish a system for--
            ``(A) approving individuals and entities to provide 
        technical assistance to carry out programs under this title 
        (including criteria for the evaluation of providers or 
        potential providers of technical assistance); and
            ``(B) establishing the amounts and methods for payments for 
        that assistance.
        ``(2) Expertise.--In promulgating regulations to carry out this 
    subsection the Secretary shall ensure that persons with expertise 
    in the technical aspects of conservation planning, watershed 
    planning, environmental engineering (including commercial entities, 
    nonprofit entities, State or local governments or agencies, and 
    other Federal agencies), are eligible to become approved providers 
    of the technical assistance.
        ``(3) Interim assistance.--
            ``(A) In general.--A person that has provided technical 
        assistance in accordance with an agreement between the person 
        and the Secretary before the date of enactment of the Farm 
        Security and Rural Investment Act of 2002 may continue to 
        provide technical assistance under this section until the date 
        on which the Secretary establishes the system described in 
        paragraph (1).
            ``(B) Evaluation.--If a person described in subparagraph 
        (A) seeks to continue to provide technical assistance after the 
        date referred to in subparagraph (A), the Secretary shall 
        evaluate the person using criteria referred to in paragraph 
        (1).
        ``(4) Non-federal assistance.--The Secretary may request the 
    services of, and enter into cooperative agreements or contracts 
    with, non-Federal entities to assist the Secretary in providing 
    technical assistance necessary to develop and implement 
    conservation programs under this title.''.

SEC. 2702. REGULATIONS.

    (a) In General.--Except as otherwise provided in this title or an 
amendment made by this title, not later than 90 days after the date of 
enactment of this Act, the Secretary of Agriculture, in consultation 
with the Commodity Credit Corporation, shall promulgate such 
regulations as are necessary to implement this title.
    (b) Applicable Authority.--The promulgation of regulations under 
subsection (a) and administration of this title--
        (1) shall--
            (A) be carried out without regard to chapter 35 of title 
        44, United States Code (commonly known as the Paperwork 
        Reduction Act); and
            (B) 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
        (2) may--
            (A) be promulgated with an opportunity for notice and 
        comment; or
            (B) if determined to be appropriate by the Secretary of 
        Agriculture or the Commodity Credit Corporation, as an interim 
        rule effective on publication with an opportunity for notice 
        and comment.
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808(2) of title 5, United States Code.

                            TITLE III--TRADE
 Subtitle A--Agricultural Trade Development and Assistance Act of 1954 
                          and Related Statutes

SEC. 3001. UNITED STATES POLICY.

    Section 2 of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1691) is amended--
        (1) in paragraph (4), by striking ``and'' at the end;
        (2) in paragraph (5), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(6) prevent conflicts.''.

SEC. 3002. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722) is amended--
        (1) in subsection (b), by adding at the end the following:
        ``(3) Program diversity.--The Administrator shall--
            ``(A) encourage eligible organizations to propose and 
        implement program plans to address 1 or more aspects of the 
        program under section 201; and
            ``(B) consider proposals that incorporate a variety of 
        program objectives and strategic plans based on the 
        identification by eligible organizations of appropriate 
        activities, consistent with section 201, to assist development 
        of foreign countries.'';
        (2) in subsection (e)(1), by striking ``not less than 
    $10,000,000, and not more than $28,000,000,'' and inserting ``not 
    less than 5 percent nor more than 10 percent of the funds''; and
        (3) by adding at the end the following:
    ``(h) Streamlined Program Management.--
        ``(1) Improvements.--Not later than 1 year after the date of 
    enactment of this subsection, the Administrator shall--
            ``(A) streamline program procedures and guidelines under 
        this title for agreements with eligible organizations for 
        programs in 1 or more countries; and
            ``(B) effective beginning with fiscal year 2004, to the 
        maximum extent practicable, incorporate the changes into the 
        procedures and guidelines for programs and the guidelines for 
        resource requests.
        ``(2) Streamlined procedures and guidelines.--In carrying out 
    paragraph (1), the Administrator shall make improvements in the 
    Office of Food for Peace management systems that include--
            ``(A) expedition of and greater consistency in the program 
        review and approval process under this title;
            ``(B) streamlining of information collection and reporting 
        systems by identifying the critical information that needs to 
        be monitored and reported on by eligible organizations; and
            ``(C) for approved programs, provision of greater 
        flexibility for an eligible organization to make modifications 
        in program activities to achieve program results with 
        streamlined procedures for reporting such modifications.
        ``(3) Consultation.--
            ``(A) In general.--Paragraphs (1) and (2) shall be carried 
        out in accordance with section 205 and subsections (b) and (c) 
        of section 207.
            ``(B) Consultation with congressional committees.--Not 
        later than 180 days after the date of enactment of this 
        subsection, the Administrator shall consult with the Committee 
        on Agriculture and the Committee on International Relations of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate on progress made in 
        carrying out this subsection.
        ``(4) Report.--Not later than 270 days after the date of 
    enactment of this subsection, the Administrator shall submit to the 
    Committee on Agriculture and the Committee on International 
    Relations of the House of Representatives and the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate a report on the 
    improvements made and planned upgrades in the information 
    management, procurement, and financial management systems to 
    administer this title.''.

SEC. 3003. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY 
              ORGANIZATIONS AND COOPERATIVES.

    Section 203 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1723) is amended--
        (1) in the section heading, by striking ``foreign'';
        (2) in subsection (a), by striking ``the recipient country, or 
    in a country'' and inserting ``1 or more recipient countries, or 1 
    or more countries'';
        (3) in subsection (b)--
            (A) by striking ``in recipient countries, or in countries'' 
        and inserting ``1 or more recipient countries, or in 1 or more 
        countries''; and
            (B) by striking ``foreign currency'';
        (4) in subsection (c)--
            (A) by striking ``foreign currency''; and
            (B) by striking ``the recipient country, or in a country'' 
        and inserting ``1 or more recipient countries, or in 1 or more 
        countries''; and
        (5) in subsection (d)--
            (A) by striking ``Foreign currencies'' and inserting 
        ``Proceeds'';
            (B) in paragraph (2)--
                (i) by striking ``income generating'' and inserting 
            ``income-generating''; and
                (ii) by striking ``the recipient country or within a 
            country'' and inserting ``1 or more recipient countries or 
            within 1 or more countries''; and
            (C) in paragraph (3)--
                (i) by inserting a comma after ``invested''; and
                (ii) by inserting a comma after ``used''.

SEC. 3004. LEVELS OF ASSISTANCE.

    Section 204(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724(a)) is amended--
        (1) by striking ``1996 through 2002'' each place it appears and 
    inserting ``2002 through 2007'';
        (2) in paragraph (1), by striking ``2,025,000'' and inserting 
    ``2,500,000''; and
        (3) in paragraph (2), by striking ``1,550,000 metric tons'' and 
    inserting ``1,875,000 metric tons''.

SEC. 3005. FOOD AID CONSULTATIVE GROUP.

    Section 205(f) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1725(f)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 3006. MAXIMUM LEVEL OF EXPENDITURES.

    Section 206 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726) is repealed.

SEC. 3007. ADMINISTRATION.

    Section 207 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726a) is amended--
        (1) in subsection (a)--
            (A) by redesignating paragraph (2) as paragraph (3); and
            (B) by striking paragraph (1) and inserting the following:
        ``(1) Recipient countries.--A proposal to enter into a 
    nonemergency food assistance agreement under this title shall 
    identify the recipient country or countries that are the subject of 
    the agreement.
        ``(2) Timing.--Not later than 120 days after the date of 
    receipt by the Administrator of a proposal submitted by an eligible 
    organization under this title, the Administrator shall determine 
    whether to accept the proposal.'';
        (2) in subsection (b), by striking ``guideline'' each place it 
    appears and inserting ``guideline or annual policy guidance''; and
        (3) by adding at the end the following:
    ``(e) Timely Approval.--
        ``(1) In general.--The Administrator is encouraged to finalize 
    program agreements and resource requests for programs under this 
    section before the beginning of each fiscal year.
        ``(2) Report.--Not later than December 1 of each year, the 
    Administrator shall submit to the Committee on Agriculture and the 
    Committee on International Relations of the House of 
    Representatives and the Committee on Agriculture, Nutrition, and 
    Forestry of the Senate a report that contains--
            ``(A) a list of programs, countries, and commodities 
        approved to date for assistance under this section; and
            ``(B) a statement of the total amount of funds approved to 
        date for transportation and administrative costs under this 
        section.''.

SEC. 3008. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
              DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED 
              FOODS.

    Section 208(f) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726b(f)) is amended by striking ``and 2002'' and 
inserting ``through 2007''.

SEC. 3009. SALE PROCEDURE.

    (a) In General.--Section 403 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1733) is amended--
        (1) in subsection (e)--
            (A) by striking ``In carrying'' and inserting the 
        following:
        ``(1) In general.--In carrying''; and
            (B) by adding at the end the following:
        ``(2) Sale price.--Sales of agricultural commodities described 
    in paragraph (1) shall be made at a reasonable market price in the 
    economy where the agricultural commodity is to be sold, as 
    determined by the Secretary or the Administrator, as 
    appropriate.''; and
        (2) by adding at the end the following:
    ``(l) Sale Procedure.--
        ``(1) In general.--Subsections (b) and (h) shall apply to sales 
    of commodities in recipient countries to generate proceeds to carry 
    out projects under--
            ``(A) titles I and II;
            ``(B) section 416(b) of the Agricultural Act of 1949 (7 
        U.S.C. 1431(b)); and
            ``(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o).
        ``(2) Currency.--A sale described in paragraph (1) may be made 
    in United States dollars or other currencies.''.
    (b) Conforming Amendments.--
        (1) Section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 
    1431(b)) is amended by adding at the end the following:
        ``(10) Sale procedure.--In approving sales of commodities under 
    this subsection, the Secretary shall follow the sale procedure 
    described in section 403(l) of the Agricultural Trade Development 
    and Assistance Act of 1954.''.
        (2) Subsection (f) of the Food for Progress Act of 1985 (7 
    U.S.C. 1736o(f)) is amended by adding at the end the following:
        ``(5) Sale procedure.--In making sales of eligible commodities 
    under this section, the Secretary shall follow the sale procedure 
    described in section 403(l) of the Agricultural Trade Development 
    and Assistance Act of 1954.''.

SEC. 3010. PREPOSITIONING.

    Section 407(c)(4) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by striking 
``and 2002'' and inserting ``through 2007''.

SEC. 3011. TRANSPORTATION AND RELATED COSTS.

    Section 407(c)(1) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736a(c)(1)) is amended--
        (1) by striking ``The Administrator'' and inserting the 
    following:
            ``(A) In general.--The Administrator''; and
        (2) by adding at the end the following:
        ``(B) Certain commodities made available for nonemergency 
    assistance.--In the case of agricultural commodities made available 
    for nonemergency assistance under title II for least developed 
    countries that meet the poverty and other eligibility criteria 
    established by the International Bank for Reconstruction and 
    Development for financing under the International Development 
    Association, the Administrator may pay the transportation costs 
    incurred in moving the agricultural commodities from designated 
    points of entry or ports of entry abroad to storage and 
    distribution sites and associated storage and distribution 
    costs.''.

SEC. 3012. EXPIRATION DATE.

    Section 408 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736b) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

    Section 415 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736g-2) is amended--
        (1) in the section heading, by striking ``pilot program.'' and 
    inserting ``programs.'';
        (2) in subsection (a)--
            (A) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and adjusting the 
        margins appropriately;
            (B) by striking the first sentence and inserting the 
        following:
        ``(1) Programs.--Not later than September 30, 2003, the 
    Administrator, in consultation with the Secretary, shall establish 
    micronutrient fortification programs.''; and
            (C) in the second sentence, by striking ``The purpose of 
        the program'' and inserting the following:
        ``(2) Purpose.--The purpose of a program''; and
            (D) in paragraph (2) (as designated by subparagraph (C))--
                (i) in subparagraph (A), by striking ``and'' at the 
            end;
                (ii) in subparagraph (B)--

                    (I) by striking ``whole''; and
                    (II) by striking the period at the end and 
                inserting ``; and''; and

                (iii) by adding at the end the following:
            ``(C) assess and apply technologies and systems to improve 
        and ensure the quality, shelf life, bioavailability, and safety 
        of fortified food aid commodities, and products of those 
        commodities, that are provided to developing countries, by 
        using the same mechanism that was used to assess the 
        micronutrient fortification program in the report entitled 
        `Micronutrient Compliance Review of Fortified P.L. 480 
        Commodities', published October 2001 with funds from the Bureau 
        for Humanitarian Response of the United States Agency for 
        International Development.'';
        (3) in subsection (b), by striking ``the pilot program'' and 
    inserting ``a program under this section'';
        (4) in the first sentence of subsection (c)--
            (A) by striking ``the pilot program, whole'' and inserting 
        ``a program,'';
            (B) by striking ``the pilot program may'' and inserting ``a 
        program may'';
            (C) by striking ``including'' and inserting ``such as''; 
        and
            (D) by striking ``and iodine'' and inserting ``iodine, and 
        folic acid''; and
        (5) in subsection (d)--
            (A) by striking ``the pilot program'' and inserting 
        ``programs''; and
            (B) by striking ``2002'' and inserting ``2007''.

SEC. 3014. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1737) is amended to read as follows:

``SEC. 501. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

    ``(a) Definitions.--In this section:
        ``(1) Caribbean basin country.--The term `Caribbean Basin 
    country' means a country eligible for designation as a beneficiary 
    country under section 212 of the Caribbean Basin Economic Recovery 
    Act (19 U.S.C. 2702).
        ``(2) Emerging market.--The term `emerging market' means a 
    country that the Secretary determines--
            ``(A) is taking steps toward a market-oriented economy 
        through the food, agriculture, or rural business sectors of the 
        economy of the country; and
            ``(B) has the potential to provide a viable and significant 
        market for United States agricultural commodities or products 
        of United States agricultural commodities.
        ``(3) Middle income country.--The term `middle income country' 
    means a country that has developed economically to the point at 
    which the country does not receive bilateral development assistance 
    from the United States.
        ``(4) Sub-saharan african country.--The term `sub-Saharan 
    African country' has the meaning given the term in section 107 of 
    the Trade and Development Act of 2000 (19 U.S.C. 3706).
    ``(b) Provision.--Notwithstanding any other provision of law, to 
further assist developing countries, middle-income countries, emerging 
markets, sub-Saharan African countries, and Caribbean Basin countries 
to increase farm production and farmer incomes, the President may--
        ``(1) establish and administer a program, to be known as the 
    `John Ogonowski Farmer-to-Farmer Program', of farmer-to-farmer 
    assistance between the United States and such countries to assist 
    in--
            ``(A) increasing food production and distribution; and
            ``(B) improving the effectiveness of the farming and 
        marketing operations of agricultural producers in those 
        countries;
        ``(2) use United States agricultural producers, 
    agriculturalists, colleges and universities (including historically 
    black colleges and universities, land grant colleges or 
    universities, and foundations maintained by colleges or 
    universities), private agribusinesses, private organizations 
    (including grassroots organizations with an established and 
    demonstrated capacity to carry out such a bilateral exchange 
    program), private corporations, and nonprofit farm organizations to 
    work in conjunction with agricultural producers and farm 
    organizations in those countries, on a voluntary basis--
            ``(A) to improve agricultural and agribusiness operations 
        and agricultural systems in those countries, including 
        improving--
                ``(i) animal care and health;
                ``(ii) field crop cultivation;
                ``(iii) fruit and vegetable growing;
                ``(iv) livestock operations;
                ``(v) food processing and packaging;
                ``(vi) farm credit;
                ``(vii) marketing;
                ``(viii) inputs; and
                ``(ix) agricultural extension; and
            ``(B) to strengthen cooperatives and other agricultural 
        groups in those countries;
        ``(3) transfer the knowledge and expertise of United States 
    agricultural producers and businesses, on an individual basis, to 
    those countries while enhancing the democratic process by 
    supporting private and public agriculturally related organizations 
    that request and support technical assistance activities through 
    cash and in-kind services;
        ``(4) to the maximum extent practicable, make grants to or 
    enter into contracts or other cooperative agreements with private 
    voluntary organizations, cooperatives, land grant universities, 
    private agribusiness, or nonprofit farm organizations to carry out 
    this section (except that any such contract or other agreement may 
    obligate the United States to make outlays only to the extent that 
    the budget authority for such outlays is available under subsection 
    (d) or has otherwise been provided in advance in appropriation 
    Acts);
        ``(5) coordinate programs established under this section with 
    other foreign assistance programs and activities carried out by the 
    United States; and
        ``(6) to the extent that local currencies can be used to meet 
    the costs of a program established under this section, augment 
    funds of the United States that are available for such a program 
    through the use, within the country in which the program is being 
    conducted, of--
            ``(A) foreign currencies that accrue from the sale of 
        agricultural commodities and products under this Act; and
            ``(B) local currencies generated from other types of 
        foreign assistance activities.
    ``(c) Special Emphasis on Sub-Saharan African and Caribbean Basin 
Countries.--
        ``(1) Findings.--Congress finds that--
            ``(A) agricultural producers in sub-Saharan African and 
        Caribbean Basin countries need training in agricultural 
        techniques that are appropriate for the majority of eligible 
        agricultural producers in those countries, including training 
        in--
                ``(i) standard growing practices;
                ``(ii) insecticide and sanitation procedures; and
                ``(iii) other agricultural methods that will produce 
            increased yields of more nutritious and healthful crops;
            ``(B) agricultural producers in the United States 
        (including African-American agricultural producers) and banking 
        and insurance professionals have agribusiness expertise that 
        would be invaluable for agricultural producers in sub-Saharan 
        African and Caribbean Basin countries;
            ``(C) a commitment by the United States is appropriate to 
        support the development of a comprehensive agricultural skills 
        training program for those agricultural producers that focuses 
        on--
                ``(i) improving knowledge of insecticide and sanitation 
            procedures to prevent crop destruction;
                ``(ii) teaching modern agricultural techniques that 
            would facilitate a continual analysis of crop production, 
            including--

                    ``(I) the identification and development of 
                standard growing practices; and
                    ``(II) the establishment of systems for 
                recordkeeping;

                ``(iii) the use and maintenance of agricultural 
            equipment that is appropriate for the majority of eligible 
            agricultural producers in sub-Saharan African or Caribbean 
            Basin countries;
                ``(iv) the expansion of small agricultural operations 
            into agribusiness enterprises by increasing access to 
            credit for agricultural producers through--

                    ``(I) the development and use of village banking 
                systems; and
                    ``(II) the use of agricultural risk insurance pilot 
                products; and

                ``(v) marketing crop yields to prospective purchasers 
            (including businesses and individuals) for local needs and 
            export; and
            ``(D) programs that promote the exchange of agricultural 
        knowledge and expertise through the exchange of American and 
        foreign agricultural producers have been effective in promoting 
        improved agricultural techniques and food security and the 
        extension of additional resources to such farmer-to-farmer 
        exchanges is warranted.
        ``(2) Goals for programs carried out in sub-saharan african and 
    caribbean countries.--The goals of programs carried out under this 
    section in sub-Saharan African and Caribbean Basin countries shall 
    be--
            ``(A) to expand small agricultural operations in those 
        countries into agribusiness enterprises by increasing access to 
        credit for agricultural producers through--
                ``(i) the development and use of village banking 
            systems; and
                ``(ii) the use of agricultural risk insurance pilot 
            products;
            ``(B) to provide training to agricultural producers in 
        those countries that will--
                ``(i) enhance local food security; and
                ``(ii) help mitigate and alleviate hunger;
            ``(C) to provide training to agricultural producers in 
        those countries in groups to encourage participants to share 
        and pass on to other agricultural producers in the home 
        communities of the participants, the information and skills 
        obtained from the training, rather than merely retaining the 
        information and skills for the personal enrichment of the 
        participants; and
            ``(D) to maximize the number of beneficiaries of the 
        programs in sub-Saharan African and Caribbean Basin countries.
    ``(d) Minimum Funding.--Notwithstanding any other provision of law, 
in addition to any funds that may be specifically appropriated to carry 
out this section, not less than 0.5 percent of the amounts made 
available for each of fiscal years 2002 through 2007 to carry out this 
Act shall be used to carry out programs under this section, with--
        ``(1) not less than 0.2 percent to be used for programs in 
    developing countries; and
        ``(2) not less than 0.1 percent to be used for programs in sub-
    Saharan African and Caribbean Basin countries.
    ``(e) Authorization of Appropriations.--
        ``(1) In general.--There is authorized to be appropriated to 
    carry out programs under this section in sub-Saharan African and 
    Caribbean Basin countries $10,000,000 for each of fiscal years 2002 
    through 2007.
        ``(2) Administrative costs.--Not more than 5 percent of the 
    funds made available for a fiscal year under paragraph (1) may be 
    used to pay administrative costs incurred in carrying out programs 
    in sub-Saharan African and Caribbean Basin countries.''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 3101. EXPORTER ASSISTANCE INITIATIVE.

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

``SEC. 107. EXPORTER ASSISTANCE INITIATIVE.

    ``To provide a comprehensive source of information to facilitate 
exports of United States agricultural commodities, the Secretary shall 
maintain on a website on the Internet information to assist exporters 
and potential exporters of United States agricultural commodities.''.

SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Terms of Supplier Credit Program.--Section 202(a) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)) is amended by adding 
at the end the following:
        ``(3) Extended supplier credits.--
            ``(A) In general.--Subject to the appropriation of funds 
        under subparagraph (B), in carrying out this section, the 
        Commodity Credit Corporation may issue guarantees for the 
        repayment of credit made available for a period of more than 
        180 days, but not more than 360 days, by a United States 
        exporter to a buyer in a foreign country.
            ``(B) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        fund the additional costs attributable to the portion of any 
        guarantee issued under this paragraph to cover the repayment of 
        credit beyond the initial 180-day period.''.
    (b) Processed and High-Value Products.--Section 202(k)(1) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by 
striking ``, 2001, and 2002'' and inserting ``through 2007''.
    (c) Report.--Section 202 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5622) is amended by adding at the end the following:
    ``(l) Consultation on Agricultural Export Credit Programs.--The 
Secretary and the United States Trade Representative shall consult on a 
regular basis with the Committee on Agriculture, and the Committee on 
International Relations, of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate on the 
status of multilateral negotiations regarding agricultural export 
credit programs.''.
    (d) Reauthorization.--Section 211(b)(1) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 3103. MARKET ACCESS PROGRAM.

    Section 211(c) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(c)) is amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively, and indenting appropriately;
        (2) by striking ``The Commodity'' and inserting the following:
        ``(1) In general.--The Commodity'';
        (3) by striking subparagraph (A) (as so redesignated) and 
    inserting the following:
            ``(A) in addition to any funds that may be specifically 
        appropriated to implement a market access program, not more 
        than $90,000,000 for fiscal year 2001, $100,000,000 for fiscal 
        year 2002, $110,000,000 for fiscal year 2003, $125,000,000 for 
        fiscal year 2004, $140,000,000 for fiscal year 2005, and 
        $200,000,000 for each of fiscal years 2006 and 2007, of the 
        funds of, or an equal value of commodities owned by, the 
        Commodity Credit Corporation; and''; and
        (4) by adding at the end the following:
        ``(2) Program priorities.--In providing any amount of funds 
    made available under paragraph (1)(A) for any fiscal year that is 
    in excess of the amount made available under paragraph (1)(A) for 
    fiscal year 2001, the Secretary shall, to the maximum extent 
    practicable--
            ``(A) give equal consideration to--
                ``(i) proposals submitted by organizations that were 
            participating organizations in prior fiscal years; and
                ``(ii) proposals submitted by eligible trade 
            organizations that have not previously participated in the 
            program established under this title; and
            ``(B) give equal consideration to--
                ``(i) proposals submitted for activities in emerging 
            markets; and
                ``(ii) proposals submitted for activities in markets 
            other than emerging markets.''.

SEC. 3104. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301(e)(1)(G) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking ``fiscal year 
2002'' and inserting ``each of fiscal years 2002 through 2007''.
    (b) Unfair Trade Practices.--Section 102(5)(A) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is amended--
        (1) in clause (i), by striking ``or'' at the end; and
        (2) by striking clause (ii) and inserting the following:
                ``(ii) in the case of a monopolistic state trading 
            enterprise engaged in the export sale of an agricultural 
            commodity, implements a pricing practice that is 
            inconsistent with sound commercial practice;
                ``(iii) provides a subsidy that--

                    ``(I) decreases market opportunities for United 
                States exports; or
                    ``(II) unfairly distorts an agricultural market to 
                the detriment of United States exporters;

                ``(iv) imposes an unfair technical barrier to trade, 
            including--

                    ``(I) a trade restriction or commercial requirement 
                (such as a labeling requirement) that adversely affects 
                a new technology (including biotechnology); and
                    ``(II) an unjustified sanitary or phytosanitary 
                restriction (including any restriction that, in 
                violation of the Uruguay Round Agreements, is not based 
                on scientific principles;

                ``(v) imposes a rule that unfairly restricts imports of 
            United States agricultural commodities in the 
            administration of tariff rate quotas; or
                ``(vi) fails to adhere to, or circumvents any 
            obligation under, any provision of a trade agreement with 
            the United States.''.

SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) Value-Added Products.--
        (1) In general.--Section 702(a) of the Agricultural Trade Act 
    of 1978 (7 U.S.C. 5722(a)) is amended by inserting ``, with a 
    continued significant emphasis on the importance of the export of 
    value-added United States agricultural products into emerging 
    markets'' after ``products''.
        (2) Report to congress.--Section 702 of the Agricultural Trade 
    Act of 1978 (7 U.S.C. 5722) is amended by adding at the end the 
    following:
    ``(c) Report to Congress.--The Secretary shall annually submit to 
the Committee on Agriculture and the Committee on International 
Relations of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on 
activities under this section describing the amount of funding 
provided, the types of programs funded, the value-added products that 
have been targeted, and the foreign markets for those products that 
have been developed.''.
    (b) Funding.--Section 703 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5723) is amended to read as follows:

``SEC. 703. FUNDING.

    ``(a) In General.--To carry out this title, the Secretary shall use 
funds of the Commodity Credit Corporation, or commodities of the 
Commodity Credit Corporation of a comparable value, in the amount of 
$34,500,000 for each of fiscal years 2002 through 2007.
    ``(b) Program Priorities.--In providing any amount of funds or 
commodities made available under subsection (a) for any fiscal year 
that is in excess of the amount made available under this section for 
fiscal year 2001, the Secretary shall, to the maximum extent 
practicable--
        ``(1) give equal consideration to--
            ``(A) proposals submitted by organizations that were 
        participating organizations in prior fiscal years; and
            ``(B) proposals submitted by eligible trade organizations 
        that have not previously participated in the program 
        established under this title; and
        ``(2) give equal consideration to--
            ``(A) proposals submitted for activities in emerging 
        markets; and
            ``(B) proposals submitted for activities in markets other 
        than emerging markets.''.

SEC. 3106. FOOD FOR PROGRESS.

    (a) In General.--Subsections (f)(3), (k), and (l)(1) of the Food 
for Progress Act of 1985 (7 U.S.C. 1736o) are each amended by striking 
``2002'' and inserting ``2007''.
    (b) Definitions; Program.--
        (1) In general.--The Food for Progress Act of 1985 (7 U.S.C. 
    1736o) is amended by striking subsections (b) and (c) and inserting 
    the following:
    ``(b) Definitions.--In this section:
        ``(1) Cooperative.--The term `cooperative' has the meaning 
    given the term in section 402 of the Agricultural Trade Development 
    and Assistance Act of 1954 (7 U.S.C. 1732).
        ``(2) Corporation.--The term `Corporation' means the Commodity 
    Credit Corporation.
        ``(3) Developing country.--The term `developing country' has 
    the meaning given the term in section 402 of the Agricultural Trade 
    Development and Assistance Act of 1954 (7 U.S.C. 1732).
        ``(4) Eligible commodity.--The term `eligible commodity' means 
    an agricultural commodity, or a product of an agricultural 
    commodity, in inventories of the Corporation or acquired by the 
    President or the Corporation for disposition through commercial 
    purchases under a program authorized under this section.
        ``(5) Eligible entity.--The term `eligible entity' means--
            ``(A) the government of an emerging agricultural country;
            ``(B) an intergovernmental organization;
            ``(C) a private voluntary organization;
            ``(D) a nonprofit agricultural organization or cooperative;
            ``(E) a nongovernmental organization; and
            ``(F) any other private entity.
        ``(6) Food security.--The term `food security' means access by 
    all people at all times to sufficient food and nutrition for a 
    healthy and productive life.
        ``(7) Nongovernmental organization.--The term `nongovernmental 
    organization' has the meaning given the term in section 402 of the 
    Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
    1732).
        ``(8) Private voluntary organization.--The term `private 
    voluntary organization' has the meaning given the term in section 
    402 of the Agricultural Trade Development and Assistance Act of 
    1954 (7 U.S.C. 1732).
        ``(9) Program.--The term `program' means a food assistance or 
    development initiative proposed by an eligible entity and approved 
    by the President under this section.
    ``(c) Program.--In order to use the food resources of the United 
States more effectively in support of developing countries, and 
countries that are emerging democracies that have made commitments to 
introduce or expand free enterprise elements in their agricultural 
economies through changes in commodity pricing, marketing, input 
availability, distribution, and private sector involvement, the 
President may enter into agreements with eligible entities to furnish 
to the countries eligible commodities made available under subsections 
(e) and (f).''.
        (2) Conforming amendments.--The Food for Progress Act of 1985 
    (7 U.S.C. 136o) is amended--
            (A) in the first sentence of subsection (d), by striking 
        ``food'';
            (B) in subsection (l)(2), by striking ``agricultural'';
            (C) in subsection (m)(1), by striking ``these'';
            (D) in subsections (d), (e), (f), (h), (j), (l), and (m), 
        by striking ``commodities'' each place it appears and inserting 
        ``eligible commodities'';
            (E) in subsections (e), (f), and (l), by striking 
        ``Commodity Credit Corporation'' each place it appears and 
        inserting ``Corporation''; and
            (F) by striking subsection (o).
    (c) Consideration for Agreements.--Subsection (d) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(d)) is amended by striking ``(d) 
In determining'' and inserting ``(d) Consideration for Agreements.--In 
determining''.
    (d) Funding of Eligible Commodities.--Subsection (e) of the Food 
for Progress Act of 1985 (7 U.S.C. 1736o(e)) is amended--
        (1) by striking ``(e)'' and inserting ``(e) Funding of Eligible 
    Commodities.--'';
        (2) in paragraph (2), by inserting ``, and subsection (g) does 
    not apply to eligible commodities furnished on a grant basis or on 
    credit terms under that title'' before the period at the end; and
        (3) by adding at the end the following:
        ``(5) No effect on domestic programs.--The President shall not 
    make an eligible commodity available for disposition under this 
    section in any amount that will reduce the amount of the eligible 
    commodity that is traditionally made available through donations to 
    domestic feeding programs or agencies, as determined by the 
    President.''.
    (e) Provision of Eligible Commodities to Developing Countries.--
Subsection (f) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(f)) 
is amended--
        (1) by striking ``(f)'' and inserting ``(f) Provision of 
    Eligible Commodities to Developing Countries.--''; and
        (2) in paragraph (3), by striking ``$30,000,000 (or in the case 
    of fiscal year 1999, $35,000,000)'' and inserting ``$40,000,000''.
    (f) Minimum Tonnage.--The Food for Progress Act of 1985 is amended 
by striking subsection (g) (7 U.S.C. 1736o(g)) and inserting the 
following:
    ``(g) Minimum Tonnage.--Subject to subsection (f)(3), not less than 
400,000 metric tons of eligible commodities may be provided under this 
section for the program for each of fiscal years 2002 through 2007.''.
    (g) Prohibition on Resale or Transshipment of Eligible 
Commodities.--Subsection (h) of the Food for Progress Act of 1985 (7 
U.S.C. 1736o(h)) is amended by striking ``(h) An agreement'' and 
inserting ``(h) Prohibition on Resale or Transshipment of Eligible 
Commodities.--An agreement''.
    (h) Displacement of United States Commercial Sales.--Subsection (i) 
of the Food for Progress Act of 1985 (7 U.S.C. 1736o(i)) is amended by 
striking ``(i) In entering'' and inserting ``(i) Displacement of United 
States Commercial Sales.--In entering''.
    (i) Multicountry or Multiyear Basis.--Subsection (j) of the Food 
for Progress Act of 1985 (7 U.S.C. 1736o(j)) is amended--
        (1) by striking ``(j) In carrying out this section, the 
    President may,'' and inserting the following: ``(j) Multicountry or 
    Multiyear Basis.--
        ``(1) In general.--In carrying out this section, the 
    President,'';
        (2) by striking ``approve'' and inserting ``is encouraged to 
    approve'';
        (3) by striking ``multiyear'' and inserting ``multicountry or 
    multiyear''; and
        (4) by adding at the end the following:
        ``(2) Deadline for program announcements.--Before the beginning 
    of any fiscal year, the President shall, to the maximum extent 
    practicable--
            ``(A) make all determinations concerning program agreements 
        and resource requests for programs under this section; and
            ``(B) announce those determinations.
        ``(3) Report.--Not later than December 1 of each fiscal year, 
    the President shall submit to the Committee on Agriculture of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate a list of programs, 
    countries, and eligible commodities, and the total amount of funds 
    for transportation and administrative costs, approved to date for 
    the fiscal year under this section.''.
    (j) Effective and Termination Dates.--Subsection (k) of the Food 
for Progress Act of 1985 (7 U.S.C. 1736o(k)) is amended by striking 
``(k) This section'' and inserting ``(k) Effective and Termination 
Dates.--This section''.
    (k) Administrative Expenses.--Subsection (l) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(l)) is amended--
        (1) by striking ``(l)'' and inserting ``(l) Administrative 
    Expenses.--'';
        (2) in paragraph (1), by striking ``$10,000,000'' and inserting 
    ``$15,000,000'';
        (3) in paragraph (3), by striking ``local currencies'' and 
    inserting ``proceeds''; and
        (4) by adding at the end the following:
        ``(4) Humanitarian or development purposes.--The Secretary may 
    authorize the use of proceeds to pay the costs incurred by an 
    eligible entity under this section for--
            ``(A)(i) programs targeted at hunger and malnutrition; or
            ``(ii) development programs involving food security;
            ``(B) transportation, storage, and distribution of eligible 
        commodities provided under this section; and
            ``(C) administration, sales, monitoring, and technical 
        assistance.''.
    (l) Presidential Approval.--Subsection (m) of the Food for Progress 
Act of 1985 (7 U.S.C. 1736o(m)) is amended by striking ``(m) In 
carrying'' and inserting ``(m) Presidential Approval.--In carrying''.
    (m) Program Management.--The Food for Progress Act of 1985 is 
amended by striking subsection (n) (7 U.S.C. 1736o(n)) and inserting 
the following:
    ``(n) Program Management.--
        ``(1) In general.--The President shall ensure, to the maximum 
    extent practicable, that each eligible entity participating in 1 or 
    more programs under this section--
            ``(A) uses eligible commodities made available under this 
        section--
                ``(i) in an effective manner;
                ``(ii) in the areas of greatest need; and
                ``(iii) in a manner that promotes the purposes of this 
            section;
            ``(B) in using eligible commodities, assesses and takes 
        into account the needs of recipient countries and the target 
        populations of the recipient countries;
            ``(C) works with recipient countries, and indigenous 
        institutions or groups in recipient countries, to design and 
        carry out mutually acceptable programs authorized under this 
        section; and
            ``(D) monitors and reports on the distribution or sale of 
        eligible commodities provided under this section using methods 
        that, as determined by the President, facilitate accurate and 
        timely reporting.
        ``(2) Requirements.--
            ``(A) In general.--Not later than 270 days after the date 
        of enactment of this paragraph, the President shall review and, 
        as necessary, make changes in regulations and internal 
        procedures designed to streamline, improve, and clarify the 
        application, approval, and implementation processes pertaining 
        to agreements under this section.
            ``(B) Considerations.--In conducting the review, the 
        President shall consider--
                ``(i) revising procedures for submitting proposals;
                ``(ii) developing criteria for program approval that 
            separately address the objectives of the program;
                ``(iii) pre-screening organizations and proposals to 
            ensure that the minimum qualifications are met;
                ``(iv) implementing e-government initiatives and 
            otherwise improving the efficiency of the proposal 
            submission and approval processes;
                ``(v) upgrading information management systems;
                ``(vi) improving commodity and transportation 
            procurement processes; and
                ``(vii) ensuring that evaluation and monitoring methods 
            are sufficient.
            ``(C) Consultations.--Not later than 1 year after the date 
        of enactment of this paragraph, the President shall consult 
        with the Committee on Agriculture, and the Committee on 
        International Relations, of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate on changes made in regulations and procedures.
        ``(3) Reports.--Each eligible entity that enters into an 
    agreement under this section shall submit to the President, at such 
    time as the President may request, a report containing such 
    information as the President may request relating to the use of 
    eligible commodities and funds furnished to the eligible entity 
    under this section.''.

SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
              NUTRITION PROGRAM.

    (a) Definition of Agricultural Commodity.--In this section, the 
term ``agricultural commodity'' means an agricultural commodity, or a 
product of an agricultural commodity, that is produced in the United 
States.
    (b) Program.--Subject to subsection (l), the President may 
establish a program, to be known as ``McGovern-Dole International Food 
for Education and Child Nutrition Program'', requiring the procurement 
of agricultural commodities and the provision of financial and 
technical assistance to carry out--
        (1) preschool and school food for education programs in foreign 
    countries to improve food security, reduce the incidence of hunger, 
    and improve literacy and primary education, particularly with 
    respect to girls; and
        (2) maternal, infant, and child nutrition programs for pregnant 
    women, nursing mothers, infants, and children who are 5 years of 
    age or younger.
    (c) Eligible Commodities and Cost Items.--Notwithstanding any other 
provision of law--
        (1) any agricultural commodity is eligible to be provided under 
    this section;
        (2) as necessary to achieve the purposes of this section, funds 
    appropriated under this section may be used to pay--
            (A)(i) the cost of acquiring agricultural commodities;
            (ii) the costs associated with packaging, enrichment, 
        preservation, and fortification of agricultural commodities;
            (iii) the processing, transportation, handling, and other 
        incidental costs up to the time of the delivery of agricultural 
        commodities free on board vessels in United States ports;
            (iv) the vessel freight charges from United States ports or 
        designated Canadian transshipment ports, as determined by the 
        Secretary, to designated ports of entry abroad;
            (v) the costs associated with transporting agricultural 
        commodities from United States ports to designated points of 
        entry abroad in the case--
                (I) of landlocked countries;
                (II) of ports that cannot be used effectively because 
            of natural or other disturbances;
                (III) of the unavailability of carriers to a specific 
            country; or
                (IV) of substantial savings in costs or time that may 
            be effected by the utilization of points of entry other 
            than ports; and
            (vi) the charges for general average contributions arising 
        out of the ocean transport of agricultural commodities 
        transferred pursuant thereto;
            (B) all or any part of the internal transportation, 
        storage, and handling costs incurred in moving the eligible 
        commodity, if the President determines that--
                (i) payment of the costs is appropriate; and
                (ii) the recipient country is a low income, net food-
            importing country that--

                    (I) meets the poverty criteria established by the 
                International Bank for Reconstruction and Development 
                for Civil Works Preference; and
                    (II) has a national government that is committed to 
                or is working toward, through a national action plan, 
                the goals of the World Declaration on Education for All 
                convened in 1990 in Jomtien, Thailand, and the followup 
                Dakar Framework for Action of the World Education 
                Forum, convened in 2000;

            (C) the costs of activities conducted in the recipient 
        countries by a nonprofit voluntary organization, cooperative, 
        or intergovernmental agency or organization that would enhance 
        the effectiveness of the activities implemented by such 
        entities under this section; and
            (D) the costs of meeting the allowable administrative 
        expenses of private voluntary organizations, cooperatives, or 
        intergovernmental organizations that are implementing 
        activities under this section.
    (d) General Authorities.--The President shall designate 1 or more 
Federal agencies to--
        (1) implement the program established under this section;
        (2) ensure that the program established under this section is 
    consistent with the foreign policy and development assistance 
    objectives of the United States; and
        (3) consider, in determining whether a country should receive 
    assistance under this section, whether the government of the 
    country is taking concrete steps to improve the preschool and 
    school systems in the country.
    (e) Eligible Entities.--Assistance may be provided under this 
section to private voluntary organizations, cooperatives, 
intergovernmental organizations, governments of developing countries 
and their agencies, and other organizations.
    (f) Procedures.--
        (1) In general.--In carrying out subsection (b), the President 
    shall ensure that procedures are established that--
            (A) provide for the submission of proposals by eligible 
        entities, each of which may include 1 or more recipient 
        countries, for commodities and other assistance under this 
        section;
            (B) provide for eligible commodities and assistance on a 
        multiyear basis;
            (C) ensure that eligible entities demonstrate the 
        organizational capacity and the ability to develop, implement, 
        monitor, report on, and provide accountability for activities 
        conducted under this section;
            (D) provide for the expedited development, review, and 
        approval of proposals submitted in accordance with this 
        section;
            (E) ensure monitoring and reporting by eligible entities on 
        the use of commodities and other assistance provided under this 
        section; and
            (F) allow for the sale or barter of commodities by eligible 
        entities to acquire funds to implement activities that improve 
        the food security of women and children or otherwise enhance 
        the effectiveness of programs and activities authorized under 
        this section.
        (2) Priorities for program funding.--In carrying out paragraph 
    (1) with respect to criteria for determining the use of commodities 
    and other assistance provided for programs and activities 
    authorized under this section, the implementing agency may consider 
    the ability of eligible entities to--
            (A) identify and assess the needs of beneficiaries, 
        especially malnourished or undernourished mothers and their 
        children who are 5 years of age or younger, and school-age 
        children who are malnourished, undernourished, or do not 
        regularly attend school;
            (B)(i) in the case of preschool and school-age children, 
        target low-income areas where children's enrollment and 
        attendance in school is low or girls' enrollment and 
        participation in preschool or school is low, and incorporate 
        developmental objectives for improving literacy and primary 
        education, particularly with respect to girls; and
            (ii) in the case of programs to benefit mothers and 
        children who are 5 years of age or younger, coordinate 
        supplementary feeding and nutrition programs with existing or 
        newly-established maternal, infant, and children programs that 
        provide health-needs interventions, including maternal, 
        prenatal, and postnatal and newborn care;
            (C) involve indigenous institutions as well as local 
        communities and governments in the development and 
        implementation of the programs and activities to foster local 
        capacity building and leadership; and
            (D) carry out multiyear programs that foster local self-
        sufficiency and ensure the longevity of programs in the 
        recipient country .
    (g) Use of Food and Nutrition Service.--The Food and Nutrition 
Service of the Department of Agriculture may provide technical advice 
on the establishment of programs under subsection (b)(1) and on 
implementation of the programs in the field in recipient countries.
    (h) Multilateral Involvement.--
        (1) In general.--The President is urged to engage existing 
    international food aid coordinating mechanisms to ensure 
    multilateral commitments to, and participation in, programs similar 
    to programs supported under this section.
        (2) Reports.--The President shall annually submit to the 
    Committee on International Relations and the Committee on 
    Agriculture of the House of Representatives and the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate a report on the 
    commitments and activities of governments, including the United 
    States government, in the global effort to reduce child hunger and 
    increase school attendance.
    (i) Private Sector Involvement.--The President is urged to 
encourage the support and active involvement of the private sector, 
foundations, and other individuals and organizations in programs 
assisted under this section.
    (j) Graduation.--An agreement with an eligible organization under 
this section shall include provisions--
        (1) to--
            (A) sustain the benefits to the education, enrollment, and 
        attendance of children in schools in the targeted communities 
        when the provision of commodities and assistance to a recipient 
        country under a program under this section terminates; and
            (B) estimate the period of time required until the 
        recipient country or eligible organization is able to provide 
        sufficient assistance without additional assistance under this 
        section; or
        (2) to provide other long-term benefits to targeted populations 
    of the recipient country.
    (k) Requirement To Safeguard Local Production and Usual 
Marketing.--The requirement of section 403(a) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1733(a)) applies with 
respect to the availability of commodities under this section.
    (l) Funding.--
        (1) In general.--Of the funds of the Commodity Credit 
    Corporation, the President shall use $100,000,000 for fiscal year 
    2003 to carry out this section.
        (2) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    section for each of fiscal years 2004 through 2007.
        (3) Administrative expenses.--Funds made available to carry out 
    this section may be used to pay the administrative expenses of any 
    Federal agency implementing or assisting in the implementation of 
    this section.

                       Subtitle C--Miscellaneous

SEC. 3201. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.

    (a) Use of Currencies.--Section 416(b)(7)(D) of the Agricultural 
Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
        (1) in clauses (i) and (iii), by striking ``foreign currency'' 
    each place it appears;
        (2) in clause (ii)--
            (A) by striking ``Foreign currencies'' and inserting 
        ``Proceeds''; and
            (B) by striking ``foreign currency''; and
        (3) in clause (iv)--
            (A) by striking ``Foreign currency proceeds'' and inserting 
        ``Proceeds'';
            (B) by striking ``country of origin'' the second place it 
        appears and all that follows through ``as necessary to 
        expedite'' and inserting ``country of origin as necessary to 
        expedite'';
            (C) by striking ``; or'' and inserting a period; and
            (D) by striking subclause (II).
    (b) Implementation of Agreements.--Section 416(b) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)) (as amended by section 
3009(b)) is amended--
        (1) in paragraph (8), by striking ``(8)(A)'' and all that 
    follows through ``(B) The Secretary'' and inserting the following:
        ``(8) Administrative provisions.--
            ``(A) Expedited procedures.--To the maximum extent 
        practicable, expedited procedures shall be used in the 
        implementation of this subsection.
            ``(B) Estimate of commodities.--The Secretary shall publish 
        in the Federal Register, not later than October 31 of each 
        fiscal year, an estimate of the types and quantities of 
        commodities and products that will be available under this 
        section for the fiscal year.
            ``(C) Finalization of agreements.--The Secretary is 
        encouraged to finalize program agreements under this section 
        not later than December 31 of each fiscal year.
            ``(D) Regulations.--The Secretary''; and
        (2) by adding at the end the following:
        ``(11) Requirements.--
            ``(A) In general.--Not later than 270 days after the date 
        of enactment of this subparagraph, the Secretary shall review 
        and, as necessary, make changes in regulations and internal 
        procedures designed to streamline, improve, and clarify the 
        application, approval, and implementation processes pertaining 
        to agreements under this section.
            ``(B) Considerations.--In conducting the review, the 
        Secretary shall consider--
                ``(i) revising procedures for submitting proposals;
                ``(ii) developing criteria for program approval that 
            separately address the objectives of the program;
                ``(iii) pre-screening organizations and proposals to 
            ensure that the minimum qualifications are met;
                ``(iv) implementing e-government initiatives and 
            otherwise improving the efficiency of the proposal 
            submission and approval processes;
                ``(v) upgrading information management systems;
                ``(vi) improving commodity and transportation 
            procurement processes; and
                ``(vii) ensuring that evaluation and monitoring methods 
            are sufficient.
            ``(C) Consultations.--Not later than 1 year after the date 
        of enactment of this subparagraph, the Secretary shall consult 
        with the Committee on Agriculture, and the Committee on 
        International Relations, of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate on changes made in regulations and procedures under this 
        paragraph.''.

SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended by striking ``2002'' each place it appears in 
subsection (b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) 
and inserting ``2007''.

SEC. 3203. EMERGING MARKETS.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note) is amended in subsections (a) and 
(d)(1)(A)(i) by striking ``2002'' and inserting ``2007''.

SEC. 3204. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    The Food, Agriculture, Conservation, and Trade Act of 1990 is 
amended by inserting after section 1543 (7 U.S.C. 3293) the following:

``SEC. 1543A. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    ``(a) Establishment.--There is established in the Department the 
biotechnology and agricultural trade program.
    ``(b) Purpose.--The purpose of the program shall be to remove, 
resolve, or mitigate significant regulatory nontariff barriers to the 
export of United States agricultural commodities (as defined in section 
102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602)) into foreign 
markets through public and private sector projects funded by grants 
that address--
        ``(1) quick response intervention regarding nontariff barriers 
    to United States exports involving--
            ``(A) United States agricultural commodities produced 
        through biotechnology;
            ``(B) food safety;
            ``(C) disease; or
            ``(D) other sanitary or phytosanitary concerns; or
        ``(2) developing protocols as part of bilateral negotiations 
    with other countries on issues such as animal health, grain 
    quality, and genetically modified commodities.
    ``(c) Eligible Programs.--Depending on need, as determined by the 
Secretary, activities authorized under this section may be carried out 
through--
        ``(1) this section;
        ``(2) the emerging markets program under section 1542; or
        ``(3) the Cochran Fellowship Program under section 1543.
    ``(d) Funding.--There is authorized to be appropriated $6,000,000 
for each of fiscal years 2002 through 2007.''.

SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) Establishment.--The Secretary of Agriculture shall establish an 
export assistance program (referred to in this section as the 
``program'') to address unique barriers that prohibit or threaten the 
export of United States specialty crops.
    (b) Purpose.--The program shall provide direct assistance through 
public and private sector projects and technical assistance to remove, 
resolve, or mitigate sanitary and phytosanitary and related barriers to 
trade.
    (c) Priority.--The program shall address time sensitive and 
strategic market access projects based on--
        (1) trade effect on market retention, market access, and market 
    expansion; and
        (2) trade impact.
    (d) Funding.--For each of fiscal years 2002 through 2007, the 
Secretary shall make available $2,000,000 of the funds of, or an equal 
value of commodities owned by, the Commodity Credit Corporation.

SEC. 3206. GLOBAL MARKET STRATEGY.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, and biennially thereafter, the Secretary of 
Agriculture shall consult with the Committee on Agriculture, and the 
Committee on International Relations, of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
on the formulation and implementation of a global market strategy for 
the Department of Agriculture that, to the maximum extent practicable--
        (1) identifies opportunities for the growth of agricultural 
    exports to overseas markets;
        (2) ensures that the resources, programs, and policies of the 
    Department are coordinated with those of other agencies; and
        (3) remove barriers to agricultural trade in overseas markets.
    (b) Review.--The consultations under subsection (a) shall include a 
review of--
        (1) the strategic goals of the Department; and
        (2) the progress of the Department in implementing the 
    strategic goals through the global market strategy.

SEC. 3207. REPORT ON USE OF PERISHABLE COMMODITIES AND LIVE ANIMALS.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary 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 on 
international food aid programs of the United States that evaluates--
        (1) the implications of storage and transportation capacity and 
    funding for the use of perishable agricultural commodities and 
    semiperishable agricultural commodities; and
        (2) the feasibility of the transport of lambs and other live 
    animals under the program.

SEC. 3208. STUDY ON FEE FOR SERVICES.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Agriculture shall submit to the Committee 
on Agriculture, and the Committee on International Relations, of the 
House of Representatives and the Committee on Agriculture, Nutrition 
and Forestry of the Senate a report on the feasibility of instituting a 
program under which the Secretary would charge and retain a fee to 
cover the costs incurred by the Department of Agriculture, acting 
through the Foreign Agricultural Service or any successor agency, in 
providing persons with commercial services provided outside the United 
States.
    (b) Purpose of Program.--The purpose of a program described in 
subsection (a) would be to supplement and not replace any services 
currently offered overseas by the Foreign Agricultural Service.
    (c) Market Development Strategy.--A program under subsection (b) 
would be part of an overall market development strategy for a 
particular country or region.
    (d) Pilot Program.--A program under subsection (a) would be 
established on a pilot basis to ensure that the program does not 
disadvantage small- and medium-sized companies, including companies 
that have never engaged in exporting.

SEC. 3209. SENSE OF CONGRESS CONCERNING FOREIGN ASSISTANCE PROGRAMS.

    (a) Findings.--Congress finds that--
        (1) the international community faces a continuing epidemic of 
    ethnic, sectarian, and criminal violence;
        (2) poverty, hunger, political uncertainty, and social 
    instability are the principal causes of violence and conflict 
    around the world;
        (3) broad-based, equitable economic growth and agriculture 
    development facilitates political stability, food security, 
    democracy, and the rule of law;
        (4) democratic governments are more likely to advocate and 
    observe international laws, protect civil and human rights, pursue 
    free market economies, and avoid external conflicts;
        (5) the United States Agency for International Development has 
    provided critical democracy and governance assistance to a majority 
    of the nations that successfully made the transition to democratic 
    governments during the past 2 decades;
        (6) 43 of the top 50 consumer nations of American agricultural 
    products were once United States foreign aid recipients;
        (7) in the past 50 years, infant child death rates in the 
    developing world have been reduced by 50 percent, and health 
    conditions around the world have improved more during this period 
    than in any other period;
        (8) the United States Agency for International Development 
    child survival programs have significantly contributed to a 10 
    percent reduction in infant mortality rates worldwide in just the 
    past 8 years;
        (9) in providing assistance by the United States and other 
    donors in better seeds and teaching more efficient agricultural 
    techniques over the past 2 decades have helped make it possible to 
    feed an additional 1,000,000,000 people in the world;
        (10) despite this progress, approximately 1,200,000,000 people, 
    one-quarter of the world's population, live on less that $1 per 
    day, and approximately 3,000,000,000 people live on only $2 per 
    day;
        (11) 95 percent of new births occur in developing countries, 
    including the world's poorest countries; and
        (12) only \1/2\ percent of the Federal budget is dedicated to 
    international economic and humanitarian assistance.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) United States foreign assistance programs should play an 
    increased role in the global fight against terrorism to complement 
    the national security objectives of the United States;
        (2) the United States should lead coordinated international 
    efforts to provide increased financial assistance to countries with 
    impoverished and disadvantaged populations that are the breeding 
    grounds for terrorism; and
        (3) the United States Agency for International Development and 
    the Department of Agriculture should substantially increase 
    humanitarian, economic development, and agricultural assistance to 
    foster international peace and stability and the promotion of human 
    rights.

SEC. 3210. SENSE OF THE SENATE CONCERNING AGRICULTURAL TRADE.

    (a) Agriculture Trade Negotiating Objectives.--It is the sense of 
the Senate that the principal negotiating objective of the United 
States with respect to agricultural trade in all multilateral, 
regional, and bilateral negotiations is to obtain competitive 
opportunities for the export of United States agricultural commodities 
in foreign markets substantially equivalent to the competitive 
opportunities afforded foreign exports in United States markets and to 
achieve fairer and more open conditions of agricultural trade in bulk 
and value-added commodities by--
        (1) reducing or eliminating, by a date certain, tariffs or 
    other charges that decrease market opportunities for the export of 
    United States agricultural commodities, giving priority to United 
    States agricultural commodities that are subject to significantly 
    higher tariffs or subsidy regimes of major producing countries;
        (2) immediately eliminating all export subsidies on 
    agricultural commodities worldwide while maintaining bona fide food 
    aid and preserving United States agricultural market development 
    and export credit programs that allow the United States to compete 
    with other foreign export promotion efforts;
        (3) leveling the playing field for United States agricultural 
    producers by disciplining domestic supports such that no other 
    country can provide greater support, measured as a percentage of 
    total agricultural production value, than the United States does 
    while preserving existing green box category to support 
    conservation activities, family farms, and rural communities;
        (4) developing, strengthening, and clarifying rules and 
    effective dispute settlement mechanisms to eliminate practices that 
    unfairly decrease United States market access opportunities for 
    United States agricultural commodities or distort agricultural 
    markets to the detriment of the United States, including--
            (A) unfair or trade-distorting activities of state trading 
        enterprises and other administrative mechanisms, with emphasis 
        on--
                (i) requiring price transparency in the operation of 
            state trading enterprises and such other mechanisms; and
                (ii) ending discriminatory pricing practices for 
            agricultural commodities that amount to de facto export 
            subsidies so that the enterprises or other mechanisms do 
            not (except in cases of bona fide food aid) sell 
            agricultural commodities in foreign markets at prices below 
            domestic market prices or prices below the full costs of 
            acquiring and delivering agricultural commodities to the 
            foreign markets;
            (B) unjustified trade restrictions or commercial 
        requirements affecting new agricultural technologies, including 
        biotechnology;
            (C) unjustified sanitary or phytosanitary restrictions, 
        including restrictions that are not based on scientific 
        principles, in contravention of the Agreement on the 
        Application of Sanitary and Phytosanitary Measures (as 
        described in section 101(d)(3) of the Uruguay Round Agreements 
        Act (19 U.S.C. 3511(d)(3)));
            (D) other unjustified technical barriers to agricultural 
        trade; and
            (E) restrictive and nontransparent rules in the 
        administration of tariff rate quotas;
        (5) improving import relief mechanisms to recognize the unique 
    characteristics of perishable agricultural commodities;
        (6) taking into account whether a party to negotiations with 
    respect to trading in an agricultural commodity has--
            (A) failed to adhere to the provisions of an existing 
        bilateral trade agreement with the United States;
            (B) circumvented obligations under a multilateral trade 
        agreement to which the United States is a signatory; or
            (C) manipulated its currency value to the detriment of 
        United States agricultural producers or exporters; and
        (7) otherwise ensuring that countries that accede to the World 
    Trade Organization--
            (A) have made meaningful market liberalization commitments 
        in agriculture; and
            (B) make progress in fulfilling those commitments over 
        time.
    (b) Priority for Agriculture Trade.--It is the sense of the Senate 
that--
        (1) reaching a successful agreement on agriculture should be 
    the top priority of United States negotiators in World Trade 
    Organization talks; and
        (2) if the primary export competitors of the United States fail 
    to reduce their trade distorting domestic supports and eliminate 
    export subsidies in accordance with the negotiating objectives 
    expressed in this section, the United States should take steps to 
    increase the leverage of United States negotiators and level the 
    playing field for United States producers, within existing World 
    Trade Organization commitments.
    (c) Consultation With Congressional Committees.--It is the sense of 
the Senate that--
        (1) before the United States Trade Representative negotiates a 
    trade agreement that would reduce tariffs on agricultural 
    commodities or require a change in United States agricultural law, 
    the United States Trade Representative should consult with the 
    Committee on Agriculture and the Committee on Ways and Means of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry and the Committee on Finance of the Senate;
        (2) not less than 48 hours before initialing an agreement 
    relating to agricultural trade negotiated under the auspices of the 
    World Trade Organization, the United States Trade Representative 
    should consult closely with the committees referred to in paragraph 
    (1) regarding--
            (A) the details of the agreement;
            (B) the potential impact of the agreement on United States 
        agricultural producers; and
            (C) any changes in United States law necessary to implement 
        the agreement; and
        (3) any agreement or other understanding (whether verbal or in 
    writing) that relates to agricultural trade that is not disclosed 
    to Congress before legislation implementing a trade agreement is 
    introduced in either the Senate or the House of Representatives 
    should not be considered to be part of the agreement approved by 
    Congress and should have no force and effect under Unites States 
    law or in any dispute settlement body.

                      TITLE IV--NUTRITION PROGRAMS

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``Food Stamp Reauthorization Act of 
2002''.

                     Subtitle A--Food Stamp Program

SEC. 4101. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

    (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)(6)) is amended by adding at the end the following: ``and 
child support payments made by a household member to or for an 
individual who is not a member of the household if the household member 
is legally obligated to make the payments,''.
    (b) Simplified Procedure.--Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended--
        (1) in subsection (e), by striking paragraph (4) and inserting 
    the following:
        ``(4) Deduction for child support payments.--
            ``(A) In general.--In lieu of providing an exclusion for 
        legally obligated child support payments made by a household 
        member under subsection (d)(6), a State agency may elect to 
        provide a deduction for the amount of the payments.
            ``(B) Order of determining deductions.--A deduction under 
        this paragraph shall be determined before the computation of 
        the excess shelter expense deduction under paragraph (6).''; 
        and
        (2) by adding at the end the following:
    ``(n) State Options To Simplify Determination of Child Support 
Payments.--Regardless of whether a State agency elects to provide a 
deduction under subsection (e)(4), the Secretary shall establish 
simplified procedures to allow State agencies, at the option of the 
State agencies, to determine the amount of any legally obligated child 
support payments made, including procedures to allow the State agency 
to rely on information from the agency responsible for implementing the 
program under part D of title IV of the Social Security Act (42 U.S.C. 
651 et seq.) concerning payments made in prior months in lieu of 
obtaining current information from the households.''.

SEC. 4102. SIMPLIFIED DEFINITION OF INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
        (1) by striking ``and (15)'' and inserting ``(15)''; and
        (2) by inserting before the period at the end the following: 
    ``, (16) at the option of the State agency, any educational loans 
    on which payment is deferred, grants, scholarships, fellowships, 
    veterans' educational benefits, and the like (other than loans, 
    grants, scholarships, fellowships, veterans' educational benefits, 
    and the like excluded under paragraph (3)), to the extent that they 
    are required to be excluded under title XIX of the Social Security 
    Act (42 U.S.C. 1396 et seq.), (17) at the option of the State 
    agency, any State complementary assistance program payments that 
    are excluded for the purpose of determining eligibility for medical 
    assistance under section 1931 of the Social Security Act (42 U.S.C. 
    1396u-1), and (18) at the option of the State agency, any types of 
    income that the State agency does not consider when determining 
    eligibility for (A) cash assistance under a program funded under 
    part A of title IV of the Social Security Act (42 U.S.C. 601 et 
    seq.) or the amount of such assistance, or (B) medical assistance 
    under section 1931 of the Social Security Act (42 U.S.C. 1396u-1), 
    except that this paragraph does not authorize a State agency to 
    exclude wages or salaries, benefits under title I, II, IV, X, XIV, 
    or XVI of the Social Security Act (42 U.S.C. 301 et seq.), regular 
    payments from a government source (such as unemployment benefits 
    and general assistance), worker's compensation, child support 
    payments made to a household member by an individual who is legally 
    obligated to make the payments, or such other types of income the 
    consideration of which the Secretary determines by regulation to be 
    essential to equitable determinations of eligibility and benefit 
    levels''.

SEC. 4103. STANDARD DEDUCTION.

    Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is 
amended by striking paragraph (1) and inserting the following:
        ``(1) Standard deduction.--
            ``(A) In general.--
                ``(i) Deduction.--The Secretary shall allow a standard 
            deduction for each household in the 48 contiguous States 
            and the District of Columbia, Alaska, Hawaii, and the 
            Virgin Islands of the United States in an amount that is--

                    ``(I) equal to 8.31 percent of the income standard 
                of eligibility established under subsection (c)(1); but
                    ``(II) not more than 8.31 percent of the income 
                standard of eligibility established under subsection 
                (c)(1) for a household of 6 members.

                ``(ii) Minimum amount.--Notwithstanding clause (i), the 
            standard deduction for each household in the 48 contiguous 
            States and the District of Columbia, Alaska, Hawaii, and 
            the Virgin Islands of the United States shall be not less 
            than $134, $229, $189, and $118, respectively.
            ``(B) Guam.--
                ``(i) In general.--The Secretary shall allow a standard 
            deduction for each household in Guam in an amount that is--

                    ``(I) equal to 8.31 percent of twice the income 
                standard of eligibility established under subsection 
                (c)(1) for the 48 contiguous States and the District of 
                Columbia; but
                    ``(II) not more than 8.31 percent of twice the 
                income standard of eligibility established under 
                subsection (c)(1) for the 48 contiguous States and the 
                District of Columbia for a household of 6 members.

                ``(ii) Minimum amount.--Notwithstanding clause (i), the 
            standard deduction for each household in Guam shall be not 
            less than $269.''.

SEC. 4104. SIMPLIFIED UTILITY ALLOWANCE.

    Section 5(e)(7)(C)(iii) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)(7)(C)(iii)) is amended--
        (1) in subclause (I)(bb), by inserting ``(without regard to 
    subclause (III))'' after ``Secretary finds''; and
        (2) by adding at the end the following:

                    ``(III) Inapplicability of certain restrictions.--
                Clauses (ii)(II) and (ii)(III) shall not apply in the 
                case of a State agency that has made the use of a 
                standard utility allowance mandatory under subclause 
                (I).''.

SEC. 4105. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

    (a) In General.--Section 5(e)(7) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(7)) is amended by adding at the end the following:
            ``(D) Homeless households.--
                ``(i) Alternative deduction.--In lieu of the deduction 
            provided under subparagraph (A), a State agency may elect 
            to allow a household in which all members are homeless 
            individuals, but that is not receiving free shelter 
            throughout the month, to receive a deduction of $143 per 
            month.
                ``(ii) Ineligibility.--The State agency may make a 
            household with extremely low shelter costs ineligible for 
            the alternative deduction under clause (i).''.
    (b) Conforming Amendments.--Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended--
        (1) in subsection (e)--
            (A) by striking paragraph (5); and
            (B) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively; and
        (2) in subsection (k)(4)(B), by striking ``subsection (e)(7)'' 
    and inserting ``subsection (e)(6)''.

SEC. 4106. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

    Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) 
is amended by adding at the end the following:
            ``(C) Simplified determination of deductions.--
                ``(i) In general.--Except as provided in clause (ii), 
            for the purposes of subsection (e), a State agency may 
            elect to disregard until the next recertification of 
            eligibility under section 11(e)(4) 1 or more types of 
            changes in the circumstances of a household that affect the 
            amount of deductions the household may claim under 
            subsection (e).
                ``(ii) Changes that may not be disregarded.--Under 
            clause (i), a State agency may not disregard--

                    ``(I) any reported change of residence; or
                    ``(II) under standards prescribed by the Secretary, 
                any change in earned income.''.

SEC. 4107. SIMPLIFIED DEFINITION OF RESOURCES.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended--
        (1) in paragraph (1), by striking ``a member who is 60 years of 
    age or older'' and inserting ``an elderly or disabled member''; and
        (2) by adding at the end the following:
        ``(6) Exclusion of types of financial resources not considered 
    under certain other federal programs.--
            ``(A) In general.--Subject to subparagraph (B), a State 
        agency may, at the option of the State agency, exclude from 
        financial resources under this subsection any types of 
        financial resources that the State agency does not consider 
        when determining eligibility for--
                ``(i) cash assistance under a program funded under part 
            A of title IV of the Social Security Act (42 U.S.C. 601 et 
            seq.); or
                ``(ii) medical assistance under section 1931 of the 
            Social Security Act (42 U.S.C. 1396u-1).
            ``(B) Limitations.--Except to the extent that any of the 
        types of resources specified in clauses (i) through (iv) are 
        excluded under another paragraph of this subsection, 
        subparagraph (A) does not authorize a State agency to exclude--
                ``(i) cash;
                ``(ii) licensed vehicles;
                ``(iii) amounts in any account in a financial 
            institution that are readily available to the household; or
                ``(iv) any other similar type of resource the inclusion 
            in financial resources of which the Secretary determines by 
            regulation to be essential to equitable determinations of 
            eligibility under the food stamp program.''.

SEC. 4108. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

    (a) In General.--Section 5(h)(3)(B) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(h)(3)(B)) is amended--
        (1) in the first sentence, by inserting ``issuance methods 
    and'' after ``shall adjust''; and
        (2) in the second sentence, by inserting ``, any conditions 
    that make reliance on electronic benefit transfer systems described 
    in section 7(i) impracticable,'' after ``personnel''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4109. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

    Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)) 
is amended--
        (1) in subparagraph (B), by striking ``on a monthly basis''; 
    and
        (2) by adding at the end the following:
            ``(D) Frequency of reporting.--
                ``(i) In general.--Except as provided in subparagraphs 
            (A) and (C), a State agency may require households that 
            report on a periodic basis to submit reports--

                    ``(I) not less often than once each 6 months; but
                    ``(II) not more often than once each month.

                ``(ii) Reporting by households with excess income.--A 
            household required to report less often than once each 3 
            months shall, notwithstanding subparagraph (B), report in a 
            manner prescribed by the Secretary if the income of the 
            household for any month exceeds the income standard of 
            eligibility established under section 5(c)(2).''.

SEC. 4110. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)(2)) 
is amended--
        (1) by striking subparagraph (A); and
        (2) by redesignating subparagraphs (B) through (I) as 
    subparagraphs (A) through (H), respectively.

SEC. 4111. REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) Definition of EBT System.--In this section, the term ``EBT 
system'' means an electronic benefit transfer system used in issuance 
of benefits under the food stamp program under the Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.).
    (b) Report.--Not later than October 1, 2003, the Secretary 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--
        (1) describes the status of use by each State agency of EBT 
    systems;
        (2) specifies the number of vendors that have entered into a 
    contract for an EBT system with a State agency;
        (3)(A) specifies the number of State agencies that have entered 
    into an EBT-system contract with multiple EBT-system vendors; and
        (B) describes, for each State agency described in subparagraph 
    (A), how responsibilities are divided among the various vendors;
        (4) with respect to any State in which an EBT system is not 
    operational throughout the State as of October 1, 2002--
            (A) provides an explanation of the reasons why an EBT 
        system is not operational throughout the State;
            (B) describes how the reasons are being addressed; and
            (C) specifies the expected date of operation of an EBT 
        system throughout the State;
        (5) provides a description of--
            (A) the issues faced by any State agency that has awarded a 
        second EBT-system contract in the 2-year period preceding the 
        date of the report; and
            (B) the steps that the State agency has taken to address 
        those issues;
        (6) provides a description of--
            (A) the issues faced by any State agency that will award a 
        second EBT-system contract within the 2-year period beginning 
        on the date of the report; and
            (B) strategies that the State agency is considering to 
        address those issues;
        (7) describes initiatives being considered or taken by the 
    Department of Agriculture, food retailers, EBT-system vendors, and 
    client advocates to address any outstanding issues with respect to 
    EBT systems; and
        (8) examines areas of potential advances in electronic benefit 
    delivery in the 5- to 10-year period beginning on the date of the 
    report, including--
            (A) access to EBT systems at farmers' markets;
            (B) increased use of transaction data from EBT systems to 
        identify and prosecute fraud; and
            (C) fostering of increased competition among EBT-system 
        vendors to ensure cost containment and optimal service.

SEC. 4112. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN GROUP 
              FACILITIES.

    (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 
2017) is amended by adding at the end the following:
    ``(f) Alternative Procedures for Residents of Certain Group 
Facilities.--
        ``(1) In general.--
            ``(A) Applicability.--
                ``(i) In general.--Subject to clause (ii), at the 
            option of the State agency, allotments for residents of any 
            facility described in subparagraph (B), (C), (D), or (E) of 
            section 3(i)(5) (referred to in this subsection as a 
            `covered facility') may be determined and issued under this 
            paragraph in lieu of subsection (a).
                ``(ii) Limitation.--Unless the Secretary authorizes 
            implementation of this paragraph in all States under 
            paragraph (3), clause (i) shall apply only to residents of 
            covered facilities participating in a pilot project under 
            paragraph (2).
            ``(B) Amount of allotment.--The allotment for each eligible 
        resident described in subparagraph (A) shall be calculated in 
        accordance with standardized procedures established by the 
        Secretary that take into account the allotments typically 
        received by residents of covered facilities.
            ``(C) Issuance of allotment.--
                ``(i) In general.--The State agency shall issue an 
            allotment determined under this paragraph to a covered 
            facility as the authorized representative of the residents 
            of the covered facility.
                ``(ii) Adjustment.--The Secretary shall establish 
            procedures to ensure that a covered facility does not 
            receive a greater proportion of a resident's monthly 
            allotment than the proportion of the month during which the 
            resident lived in the covered facility.
            ``(D) Departures of residents of covered facilities.--
                ``(i) Notification.--Any covered facility that receives 
            an allotment for a resident under this paragraph shall--

                    ``(I) notify the State agency promptly on the 
                departure of the resident; and
                    ``(II) notify the resident, before the departure of 
                the resident, that the resident--

                        ``(aa) is eligible for continued benefits under 
                    the food stamp program; and
                        ``(bb) should contact the State agency 
                    concerning continuation of the benefits.
                ``(ii) Issuance to departed residents.--On receiving a 
            notification under clause (i)(I) concerning the departure 
            of a resident, the State agency--

                    ``(I) shall promptly issue the departed resident an 
                allotment for the days of the month after the departure 
                of the resident (calculated in a manner prescribed by 
                the Secretary) unless the departed resident reapplies 
                to participate in the food stamp program; and
                    ``(II) may issue an allotment for the month 
                following the month of the departure (but not any 
                subsequent month) based on this paragraph unless the 
                departed resident reapplies to participate in the food 
                stamp program.

                ``(iii) State option.--The State agency may elect not 
            to issue an allotment under clause (ii)(I) if the State 
            agency lacks sufficient information on the location of the 
            departed resident to provide the allotment.
                ``(iv) Effect of reapplication.--If the departed 
            resident reapplies to participate in the food stamp 
            program, the allotment of the departed resident shall be 
            determined without regard to this paragraph.
        ``(2) Pilot projects.--
            ``(A) In general.--Before the Secretary authorizes 
        implementation of paragraph (1) in all States, the Secretary 
        shall carry out, at the request of 1 or more State agencies and 
        in 1 or more areas of the United States, such number of pilot 
        projects as the Secretary determines to be sufficient to test 
        the feasibility of determining and issuing allotments to 
        residents of covered facilities under paragraph (1) in lieu of 
        subsection (a).
            ``(B) Project plan.--To be eligible to participate in a 
        pilot project under subparagraph (A), a State agency shall 
        submit to the Secretary for approval a project plan that 
        includes--
                ``(i) a specification of the covered facilities in the 
            State that will participate in the pilot project;
                ``(ii) a schedule for reports to be submitted to the 
            Secretary on the pilot project;
                ``(iii) procedures for standardizing allotment amounts 
            that takes into account the allotments typically received 
            by residents of covered facilities; and
                ``(iv) a commitment to carry out the pilot project in 
            compliance with the requirements of this subsection other 
            than paragraph (1)(B).
        ``(3) Authorization of implementation in all states.--
            ``(A) In general.--The Secretary shall--
                ``(i) determine whether to authorize implementation of 
            paragraph (1) in all States; and
                ``(ii) notify the Committee on Agriculture of the House 
            of Representatives and the Committee on Agriculture, 
            Nutrition, and Forestry of the Senate of the determination.
            ``(B) Determination not to authorize implementation in all 
        states.--
                ``(i) In general.--If the Secretary makes a finding 
            described in clause (ii), the Secretary--

                    ``(I) shall not authorize implementation of 
                paragraph (1) in all States; and
                    ``(II) shall terminate all pilot projects under 
                paragraph (2) within a reasonable period of time (as 
                determined by the Secretary).

                ``(ii) Finding.--The finding referred to in clause (i) 
            is that--

                    ``(I) an insufficient number of project plans that 
                the Secretary determines to be eligible for approval 
                are submitted by State agencies under paragraph (2)(B); 
                or
                    ``(II)(aa) a sufficient number of pilot projects 
                have been carried out under paragraph (2)(A); and
                    ``(bb) authorization of implementation of paragraph 
                (1) in all States is not in the best interest of the 
                food stamp program.''.

    (b) Conforming Amendments.--
        (1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 
    2012(i)) is amended--
            (A) by striking ``(i) `Household' means (1) an'' and 
        inserting the following:
    ``(i)(1) `Household' means--
        ``(A) an'';
            (B) in the first sentence, by striking ``others, or (2) a 
        group'' and inserting the following: ``others; or
        ``(B) a group'';
            (C) in the second sentence, by striking ``Spouses'' and 
        inserting the following:
    ``(2) Spouses'';
            (D) in the third sentence, by striking ``Notwithstanding'' 
        and inserting the following:
    ``(3) Notwithstanding'';
            (E) in paragraph (3) (as designated by subparagraph (D)), 
        by striking ``the preceding sentences'' and inserting 
        ``paragraphs (1) and (2)'';
            (F) in the fourth sentence, by striking ``In no event'' and 
        inserting the following:
    ``(4) In no event'';
            (G) in the fifth sentence, by striking ``For the purposes 
        of this subsection, residents'' and inserting the following:
    ``(5) For the purposes of this subsection, the following persons 
shall not be considered to be residents of institutions and shall be 
considered to be individual households:
        ``(A) Residents''; and
            (H) in paragraph (5) (as designated by subparagraph (G))--
                (i) by striking ``Act, or are individuals'' and 
            inserting the following: ``Act.
        ``(B) Individuals'';
                (ii) by striking ``such section, temporary'' and 
            inserting the following: ``that section.
        ``(C) Temporary'';
                (iii) by striking ``children, residents'' and inserting 
            the following: ``children.
        ``(D) Residents'';
                (iv) by striking ``coupons, and narcotics'' and 
            inserting the following: ``coupons.
        ``(E) Narcotics''; and
                (v) by striking ``shall not'' and all that follows and 
            inserting a period.
        (2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
    2014(a)) is amended by striking ``the third sentence of section 
    3(i)'' each place it appears and inserting ``section 3(i)(4)''.
        (3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
    2017(e)(1)) is amended by striking ``the last sentence of section 
    3(i)'' and inserting ``section 3(i)(5)''.
        (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act of 
    1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by striking 
    ``the last 2 sentences of section 3(i)'' and inserting ``paragraphs 
    (4) and (5) of section 3(i)''.

SEC. 4113. REDEMPTION OF BENEFITS THROUGH GROUP LIVING ARRANGEMENTS.

    (a) In General.--Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 
2019) is amended by inserting after the first sentence the following: 
``Notwithstanding the preceding sentence, a center, organization, 
institution, shelter, group living arrangement, or establishment 
described in that sentence may be authorized to redeem coupons through 
a financial institution described in that sentence if the center, 
organization, institution, shelter, group living arrangement, or 
establishment is equipped with 1 or more point-of-sale devices and is 
operating in an area in which an electronic benefit transfer system 
described in section 7(i) has been implemented.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4114. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE 
              INTERNET.

    (a) In General.--Section 11(e)(2)(B)(ii) of the Food Stamp Act of 
1977 (7 U.S.C. 2020(e)(2)(B)(ii)) is amended--
        (1) by inserting ``(I)'' after ``(ii)'';
        (2) in subclause (I) (as designated by paragraph (1)), by 
    adding ``and'' at the end; and
        (3) by adding at the end the following:
            ``(II) if the State agency maintains a website for the 
        State agency, shall make the application available on the 
        website in each language in which the State agency makes a 
        printed application available;''.
    (b) Effective Date.--The amendments made by this section take 
effect 18 months after the date of enactment of this Act.

SEC. 4115. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM WELFARE.

    (a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
2020) is amended by adding at the end the following:
    ``(s) Transitional Benefits Option.--
        ``(1) In general.--A State agency may provide transitional food 
    stamp benefits to a household that ceases to receive cash 
    assistance under a State program funded under part A of title IV of 
    the Social Security Act (42 U.S.C. 601 et seq.).
        ``(2) Transitional benefits period.--Under paragraph (1), a 
    household may receive transitional food stamp benefits for a period 
    of not more than 5 months after the date on which cash assistance 
    is terminated.
        ``(3) Amount of benefits.--During the transitional benefits 
    period under paragraph (2), a household shall receive an amount of 
    food stamp benefits equal to the allotment received in the month 
    immediately preceding the date on which cash assistance was 
    terminated, adjusted for the change in household income as a result 
    of--
            ``(A) the termination of cash assistance; and
            ``(B) at the option of the State agency, information from 
        another program in which the household participates.
        ``(4) Determination of future eligibility.--In the final month 
    of the transitional benefits period under paragraph (2), the State 
    agency may--
            ``(A) require the household to cooperate in a 
        recertification of eligibility; and
            ``(B) initiate a new certification period for the household 
        without regard to whether the preceding certification period 
        has expired.
        ``(5) Limitation.--A household shall not be eligible for 
    transitional benefits under this subsection if the household--
            ``(A) loses eligibility under section 6;
            ``(B) is sanctioned for a failure to perform an action 
        required by Federal, State, or local law relating to a cash 
        assistance program described in paragraph (1); or
            ``(C) is a member of any other category of households 
        designated by the State agency as ineligible for transitional 
        benefits.
        ``(6) Applications for recertification.--
            ``(A) In general.--A household receiving transitional 
        benefits under this subsection may apply for recertification at 
        any time during the transitional benefits period under 
        paragraph (2).
            ``(B) Determination of allotment.--If a household applies 
        for recertification under subparagraph (A), the allotment of 
        the household for all subsequent months shall be determined 
        without regard to this subsection.''.
    (b) Conforming Amendments.--
        (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
    2012(c)) is amended by adding at the end the following: ``The 
    limits specified in this subsection may be extended until the end 
    of any transitional benefit period established under section 
    11(s).''.
        (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
    2015(c)) is amended by striking ``No household'' and inserting 
    ``Except in a case in which a household is receiving transitional 
    benefits during the transitional benefits period under section 
    11(s), no household''.

SEC. 4116. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION 
              SYSTEMS AND IMPROVED ACCESS TO BENEFITS.

    (a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
2020) (as amended by section 4115(a)) is amended by adding at the end 
the following:
    ``(t) Grants for Simple Application and Eligibility Determination 
Systems and Improved Access to Benefits.--
        ``(1) In general.--For each of fiscal years 2003 through 2007, 
    the Secretary shall use not more than $5,000,000 of funds made 
    available under section 18(a)(1) to make grants to pay 100 percent 
    of the costs of eligible entities approved by the Secretary to 
    carry out projects to develop and implement--
            ``(A) simple food stamp application and eligibility 
        determination systems; or
            ``(B) measures to improve access to food stamp benefits by 
        eligible households.
        ``(2) Types of projects.--A project under paragraph (1) may 
    consist of--
            ``(A) coordinating application and eligibility 
        determination processes, including verification practices, 
        under the food stamp program and other Federal, State, and 
        local assistance programs;
            ``(B) establishing methods for applying for benefits and 
        determining eligibility that--
                ``(i) more extensively use--

                    ``(I) communications by telephone; and
                    ``(II) electronic alternatives such as the 
                Internet; or

                ``(ii) otherwise improve the administrative 
            infrastructure used in processing applications and 
            determining eligibility;
            ``(C) developing procedures, training materials, and other 
        resources aimed at reducing barriers to participation and 
        reaching eligible households;
            ``(D) improving methods for informing and enrolling 
        eligible households; or
            ``(E) carrying out such other activities as the Secretary 
        determines to be appropriate.
        ``(3) Limitation.--A grant under this subsection shall not be 
    made for the ongoing cost of carrying out any project.
        ``(4) Eligible entities.--To be eligible to receive a grant 
    under this subsection, an entity shall be--
            ``(A) a State agency administering the food stamp program;
            ``(B) a State or local government;
            ``(C) an agency providing health or welfare services;
            ``(D) a public health or educational entity; or
            ``(E) a private nonprofit entity such as a community-based 
        organization, food bank, or other emergency feeding 
        organization.
        ``(5) Selection of eligible entities.--The Secretary--
            ``(A) shall develop criteria for the selection of eligible 
        entities to receive grants under this subsection; and
            ``(B) may give preference to any eligible entity that 
        consists of a partnership between a governmental entity and a 
        nongovernmental entity.''.
    (b) Conforming Amendments.--Section 17 of the Food Stamp Act of 
1977 (7 U.S.C. 2026) is amended--
        (1) by striking subsection (i); and
        (2) by redesignating subsections (j) and (k) as subsections (i) 
    and (j), respectively.

SEC. 4117. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

    (a) In General.--Section 14(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2023(a)) is amended by striking paragraph (2) and inserting the 
following:
        ``(2) Delivery of notices.--A notice under paragraph (1) shall 
    be delivered by any form of delivery that the Secretary determines 
    will provide evidence of the delivery.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4118. REFORM OF QUALITY CONTROL SYSTEM.

    (a) In General.--Section 16(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)) is amended--
        (1) by striking ``(c)(1) The program'' and all that follows 
    through the end of paragraph (1) and inserting the following:
    ``(c) Quality Control System.--
        ``(1) In general.--
            ``(A) System.--In carrying out the food stamp program, the 
        Secretary shall carry out a system that enhances payment 
        accuracy and improves administration by establishing fiscal 
        incentives that require State agencies with high payment error 
        rates to share in the cost of payment error.
            ``(B) Adjustment of federal share of administrative costs 
        for fiscal years before fiscal year 2003.--
                ``(i) In general.--Subject to clause (ii), with respect 
            to any fiscal year before fiscal year 2003, the Secretary 
            shall adjust a State agency's federally funded share of 
            administrative costs under subsection (a), other than the 
            costs already shared in excess of 50 percent under the 
            proviso in the first sentence of subsection (a) or under 
            subsection (g), by increasing that share of all such 
            administrative costs by 1 percentage point to a maximum of 
            60 percent of all such administrative costs for each full 
            \1/10\ of a percentage point by which the payment error 
            rate is less than 6 percent.
                ``(ii) Limitation.--Only States with a rate of invalid 
            decisions in denying eligibility that is less than a 
            nationwide percentage that the Secretary determines to be 
            reasonable shall be entitled to the adjustment under clause 
            (i).
            ``(C) Establishment of liability amount for fiscal year 
        2003 and thereafter.--With respect to fiscal year 2004 and any 
        fiscal year thereafter for which the Secretary determines that, 
        for the second or subsequent consecutive fiscal year, a 95 
        percent statistical probability exists that the payment error 
        rate of a State agency exceeds 105 percent of the national 
        performance measure for payment error rates announced under 
        paragraph (6), the Secretary shall establish an amount for 
        which the State agency may be liable (referred to in this 
        paragraph as the `liability amount') that is equal to the 
        product obtained by multiplying--
                ``(i) the value of all allotments issued by the State 
            agency in the fiscal year;
                ``(ii) the difference between--

                    ``(I) the payment error rate of the State agency; 
                and
                    ``(II) 6 percent; and

                ``(iii) 10 percent.
            ``(D) Authority of secretary with respect to liability 
        amount.--With respect to the liability amount established for a 
        State agency under subparagraph (C) for any fiscal year, the 
        Secretary shall--
                ``(i)(I) waive the responsibility of the State agency 
            to pay all or any portion of the liability amount 
            established for the fiscal year (referred to in this 
            paragraph as the `waiver amount');
                ``(II) require that a portion, not to exceed 50 
            percent, of the liability amount established for the fiscal 
            year be used by the State agency for new investment, 
            approved by the Secretary, to improve administration by the 
            State agency of the food stamp program (referred to in this 
            paragraph as the `new investment amount'), which new 
            investment amount shall not be matched by Federal funds;
                ``(III) designate a portion, not to exceed 50 percent, 
            of the amount established for the fiscal year for payment 
            to the Secretary in accordance with subparagraph (E) 
            (referred to in this paragraph as the `at-risk amount'); or
                ``(IV) take any combination of the actions described in 
            subclauses (I) through (III); or
                ``(ii) make the determinations described in clause (i) 
            and enter into a settlement with the State agency, only 
            with respect to any waiver amount or new investment amount, 
            before the end of the fiscal year in which the liability 
            amount is determined under subparagraph (C).
            ``(E) Payment of at-risk amount for certain states.--
                ``(i) In general.--A State agency shall pay to the 
            Secretary the at-risk amount designated under subparagraph 
            (D)(i)(III) for any fiscal year in accordance with clause 
            (ii), if, with respect to the immediately following fiscal 
            year, a liability amount has been established for the State 
            agency under subparagraph (C).
                ``(ii) Method of payment of at-risk amount.--

                    ``(I) Remission to the secretary.--In the case of a 
                State agency required to pay an at-risk amount under 
                clause (i), as soon as practicable after completion of 
                all administrative and judicial reviews with respect to 
                that requirement to pay, the chief executive officer of 
                the State shall remit to the Secretary the at-risk 
                amount required to be paid.
                    ``(II) Alternative method of collection.--

                        ``(aa) In general.--If the chief executive 
                    officer of the State fails to make the payment 
                    under subclause (I) within a reasonable period of 
                    time determined by the Secretary, the Secretary may 
                    reduce any amount due to the State agency under any 
                    other provision of this section by the amount 
                    required to be paid under clause (i).
                        ``(bb) Accrual of interest.--During any period 
                    of time determined by the Secretary under item 
                    (aa), interest on the payment under subclause (I) 
                    shall not accrue under section 13(a)(2).
            ``(F) Use of portion of liability amount for new 
        investment.--
                ``(i) Reduction of other amounts due to state agency.--
            In the case of a State agency that fails to comply with a 
            requirement for new investment under subparagraph 
            (D)(i)(II) or clause (iii)(I), the Secretary may reduce any 
            amount due to the State agency under any other provision of 
            this section by the portion of the liability amount that 
            has not been used in accordance with that requirement.
                ``(ii) Effect of state agency's wholly prevailing on 
            appeal.--If a State agency begins required new investment 
            under subparagraph (D)(i)(II), the State agency appeals the 
            liability amount of the State agency, and the determination 
            by the Secretary of the liability amount is reduced to $0 
            on administrative or judicial review, the Secretary shall 
            pay to the State agency an amount equal to 50 percent of 
            the new investment amount that was included in the 
            liability amount subject to the appeal.
                ``(iii) Effect of secretary's wholly prevailing on 
            appeal.--If a State agency does not begin required new 
            investment under subparagraph (D)(i)(II), the State agency 
            appeals the liability amount of the State agency, and the 
            determination by the Secretary of the liability amount is 
            wholly upheld on administrative or judicial review, the 
            Secretary shall--

                    ``(I) require all or any portion of the new 
                investment amount to be used by the State agency for 
                new investment, approved by the Secretary, to improve 
                administration by the State agency of the food stamp 
                program, which amount shall not be matched by Federal 
                funds; and
                    ``(II) require payment of any remaining portion of 
                the new investment amount in accordance with 
                subparagraph (E)(ii).

                ``(iv) Effect of neither party's wholly prevailing on 
            appeal.--The Secretary shall promulgate regulations 
            regarding obligations of the Secretary and the State agency 
            in a case in which the State agency appeals the liability 
            amount of the State agency and neither the Secretary nor 
            the State agency wholly prevails.
            ``(G) Corrective action plans.--The Secretary shall foster 
        management improvements by the States by requiring State 
        agencies, other than State agencies with payment error rates of 
        less than 6 percent, to develop and implement corrective action 
        plans to reduce payment errors.'';
        (2) in paragraph (4), by striking ``(4)'' and all that follows 
    through the end of the first sentence and inserting the following:
        ``(4) Reporting requirements.--The Secretary may require a 
    State agency to report any factors that the Secretary considers 
    necessary to determine a State agency's payment error rate, 
    liability amount or new investment amount under paragraph (1), or 
    performance under the performance measures under subsection (d).'';
        (3) in paragraph (5)--
            (A) by striking ``(5)'' and all that follows through the 
        end of the second sentence and inserting the following:
        ``(5) Procedures.--To facilitate the implementation of this 
    subsection, each State agency shall expeditiously submit to the 
    Secretary data concerning the operations of the State agency in 
    each fiscal year sufficient for the Secretary to establish the 
    State agency's payment error rate, liability amount or new 
    investment amount under paragraph (1), or performance under the 
    performance measures under subsection (d).''; and
            (B) in the last sentence, by striking ``paragraph (1)(C)'' 
        and inserting ``paragraph (1)'';
        (4) in paragraph (6)--
            (A) by striking ``(6) At'' and inserting the following:
        ``(6) National performance measure for payment error rates.--
            ``(A) Announcement.--At'';
            (B) in subparagraph (A) (as designated by subparagraph 
        (A)), by striking ``and incentive payments or claims pursuant 
        to paragraphs (1)(A) and (1)(C)'';
            (C) in the first and third sentences, by striking 
        ``paragraph (5)'' each place it appears and inserting 
        ``paragraph (8)'';
            (D) by striking ``Where a State'' and inserting the 
        following:
            ``(B) Use of alternative measure of state error.--Where a 
        State'';
            (E) by striking ``The announced'' and inserting the 
        following:
            ``(C) Use of national performance measure.--The 
        announced'';
            (F) in subparagraph (C) (as designated by subparagraph 
        (E)), by striking ``the State share of the cost of payment 
        error under paragraph (1)(C)'' and inserting ``the liability 
        amount of a State under paragraph (1)(C)''; and
            (G) by adding at the end the following:
            ``(D) No administrative or judicial review.--The national 
        performance measure announced under this paragraph shall not be 
        subject to administrative or judicial review.'';
        (5) in paragraph (7)--
            (A) by striking ``(7) If the Secretary asserts a financial 
        claim against'' and inserting the following:
        ``(7) Administrative and judicial review.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), if the Secretary asserts a financial claim against or 
        establishes a liability amount with respect to'';
            (B) in subparagraph (A) (as designated by subparagraph 
        (A)), by striking ``paragraph (1)(C)'' and inserting 
        ``paragraph (1)''; and
            (C) by adding at the end the following:
            ``(B) Determination of payment error rate.--With respect to 
        any fiscal year, a determination of the payment error rate of a 
        State agency or a determination whether the payment error rate 
        exceeds 105 percent of the national performance measure for 
        payment error rates shall be subject to administrative or 
        judicial review only if the Secretary establishes a liability 
        amount with respect to the fiscal year under paragraph (1)(C).
            ``(C) Authority of secretary with respect to liability 
        amount.--An action by the Secretary under subparagraph (D) or 
        (F)(iii) of paragraph (1) shall not be subject to 
        administrative or judicial review.''; and
        (6) in paragraph (8)--
            (A) in subparagraph (A), by striking ``paragraph (1)(C)'' 
        and inserting ``paragraph (1)'';
            (B) in subparagraph (C)--
                (i) in clause (i), by striking ``payment claimed 
            against State agencies; and'' and inserting ``payment 
            claimed against State agencies or liability amount 
            established with respect to State agencies;'';
                (ii) in clause (ii), by striking ``claims.'' and 
            inserting ``claims or liability amounts; and''; and
                (iii) by adding at the end the following:
        ``(iii) provide a copy of the document providing notification 
    under clause (ii) to the chief executive officer and the 
    legislature of the State.''; and
            (C) in subparagraphs (D) and (H), by inserting ``or 
        liability amount'' after ``claim'' each place it appears.
    (b) Authority To Settle Claims Concerning At-Risk Amounts.--Section 
13(a) of the Food Stamp Act of 1977 (7 U.S.C. 2022(a)) is amended--
        (1) by striking ``(a)(1) The'' and inserting the following:
    ``(a) General Authority of the Secretary.--
        ``(1) Determination of claims.--Except in the case of an at-
    risk amount required under section 16(c)(1)(D)(i)(III), the'';
        (2) by striking the fourth sentence;
        (3) by striking ``To the extent'' and inserting the following:
        ``(2) Claims established under quality control system.--To the 
    extent'';
        (4) in paragraph (2) (as designated by paragraph (3)), by 
    striking ``section 16(c)(1)(C)'' and inserting ``section 
    16(c)(1)'';
        (5) by striking ``Any interest'' and inserting the following:
        ``(3) Computation of interest.--Any interest''; and
        (6) by striking ``(2) Each adult'' and inserting the following:
        ``(4) Joint and several liability of household members.--Each 
    adult''.
    (c) Crediting of Payments to Food Stamp Appropriations Account.--
Section 18(e) of the Food Stamp Act of 1977 (7 U.S.C. 2027(e)) is 
amended in the first sentence--
        (1) by striking ``11(g) and (h), and'' and inserting 
    ``subsections (g) and (h) of section 11,''; and
        (2) by inserting ``and section 16(c)(1),'' after ``section 
    13,''.
    (d) Conforming Amendments.--Section 22(h) of the Food Stamp Act of 
1977 (7 U.S.C. 2031(h)) is amended--
        (1) in the second sentence, by striking ``section 16(c)(1)(C)'' 
    and inserting ``section 16(c)(1)''; and
        (2) by striking the third sentence.
    (e) Applicability.--The amendments made by this section shall not 
apply with respect to any sanction, appeal, new investment agreement, 
or other action by the Secretary of Agriculture or a State agency that 
is based on a payment error rate calculated for any fiscal year before 
fiscal year 2003.

SEC. 4119. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE MEASURES.

    (a) In General.--Section 16(c)(8) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)(8)) is amended--
        (1) in subparagraph (B), by striking ``180 days after the end 
    of the fiscal year'' and inserting ``the first May 31 after the end 
    of the fiscal year referred to in subparagraph (A)''; and
        (2) in subparagraph (C), by striking ``30 days thereafter'' and 
    inserting ``the first June 30 after the end of the fiscal year 
    referred to in subparagraph (A)''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4120. BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED 
              PERFORMANCE.

    (a) In General.--Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
2025) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Bonuses for States That Demonstrate High or Most Improved 
Performance.--
        ``(1) Fiscal years 2003 and 2004.--
            ``(A) Guidance.--With respect to fiscal years 2003 and 
        2004, the Secretary shall establish, in guidance issued to 
        State agencies not later than October 1, 2002--
                ``(i) performance criteria relating to--

                    ``(I) actions taken to correct errors, reduce rates 
                of error, and improve eligibility determinations; and
                    ``(II) other indicators of effective administration 
                determined by the Secretary; and

                ``(ii) standards for high and most improved performance 
            to be used in awarding performance bonus payments under 
            subparagraph (B)(ii).
            ``(B) Performance bonus payments.--With respect to each of 
        fiscal years 2003 and 2004, the Secretary shall--
                ``(i) measure the performance of each State agency with 
            respect to the criteria established under subparagraph 
            (A)(i); and
                ``(ii) subject to paragraph (3), award performance 
            bonus payments in the following fiscal year, in a total 
            amount of $48,000,000 for each fiscal year, to State 
            agencies that meet standards for high or most improved 
            performance established by the Secretary under subparagraph 
            (A)(ii).
        ``(2) Fiscal years 2005 and thereafter.--
            ``(A) Regulations.--With respect to fiscal year 2005 and 
        each fiscal year thereafter, the Secretary shall--
                ``(i) establish, by regulation, performance criteria 
            relating to--

                    ``(I) actions taken to correct errors, reduce rates 
                of error, and improve eligibility determinations; and
                    ``(II) other indicators of effective administration 
                determined by the Secretary;

                ``(ii) establish, by regulation, standards for high and 
            most improved performance to be used in awarding 
            performance bonus payments under subparagraph (B)(ii); and
                ``(iii) before issuing proposed regulations to carry 
            out clauses (i) and (ii), solicit ideas for performance 
            criteria and standards for high and most improved 
            performance from State agencies and organizations that 
            represent State interests.
            ``(B) Performance bonus payments.--With respect to fiscal 
        year 2005 and each fiscal year thereafter, the Secretary 
        shall--
                ``(i) measure the performance of each State agency with 
            respect to the criteria established under subparagraph 
            (A)(i); and
                ``(ii) subject to paragraph (3), award performance 
            bonus payments in the following fiscal year, in a total 
            amount of $48,000,000 for each fiscal year, to State 
            agencies that meet standards for high or most improved 
            performance established by the Secretary under subparagraph 
            (A)(ii).
        ``(3) Prohibition on receipt of performance bonus payments.--A 
    State agency shall not be eligible for a performance bonus payment 
    with respect to any fiscal year for which the State agency has a 
    liability amount established under subsection (c)(1)(C).
        ``(4) Payments not subject to judicial review.--A determination 
    by the Secretary whether, and in what amount, to award a 
    performance bonus payment under this subsection shall not be 
    subject to administrative or judicial review.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4121. EMPLOYMENT AND TRAINING PROGRAM.

    (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2025(h)(1)) is amended--
        (1) in subparagraph (A), by striking clause (vii) and inserting 
    the following:
                ``(vii) for each of fiscal years 2002 through 2007, 
            $90,000,000.'';
        (2) by striking subparagraph (B) and inserting the following:
            ``(B) Allocation.--Funds made available under subparagraph 
        (A) shall be made available to and reallocated among State 
        agencies under a reasonable formula that--
                ``(i) is determined and adjusted by the Secretary; and
                ``(ii) takes into account the number of individuals who 
            are not exempt from the work requirement under section 
            6(o).''; and
        (3) by striking subparagraphs (E) through (G) and inserting the 
    following:
            ``(E) Additional allocations for states that ensure 
        availability of work opportunities.--
                ``(i) In general.--In addition to the allocations under 
            subparagraph (A), from funds made available under section 
            18(a)(1), the Secretary shall allocate not more than 
            $20,000,000 for each of fiscal years 2002 through 2007 to 
            reimburse a State agency that is eligible under clause (ii) 
            for the costs incurred in serving food stamp recipients 
            who--

                    ``(I) are not eligible for an exception under 
                section 6(o)(3); and
                    ``(II) are placed in and comply with a program 
                described in subparagraph (B) or (C) of section 
                6(o)(2).

                ``(ii) Eligibility.--To be eligible for an additional 
            allocation under clause (i), a State agency shall make and 
            comply with a commitment to offer a position in a program 
            described in subparagraph (B) or (C) of section 6(o)(2) to 
            each applicant or recipient who--

                    ``(I) is in the last month of the 3-month period 
                described in section 6(o)(2);
                    ``(II) is not eligible for an exception under 
                section 6(o)(3);
                    ``(III) is not eligible for a waiver under section 
                6(o)(4); and
                    ``(IV) is not exempt under section 6(o)(6).''.

    (b) Carryover Funds.--Notwithstanding any other provision of law, 
funds provided under section 16(h)(1)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2025(h)(1)(A)) for any fiscal year before fiscal year 2002 
shall be rescinded on the date of enactment of this Act, unless 
obligated by a State agency before that date.
    (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the Food 
Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is amended by striking 
``, except that the State agency may limit such reimbursement to each 
participant to $25 per month''.
    (d) Federal Reimbursement.--Section 16(h)(3) of the Food Stamp Act 
of 1977 (7 U.S.C. 2025(h)(3)) is amended by striking ``such total 
amount shall not exceed an amount representing $25 per participant per 
month for costs of transportation and other actual costs (other than 
dependent care costs) and'' and inserting ``the amount of the 
reimbursement for dependent care expenses shall not exceed''.
    (e) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4122. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS.

    (a) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is 
amended--
        (1) in the first sentence of subparagraph (A), by striking 
    ``2002'' and inserting ``2007''; and
        (2) in subparagraph (B)(ii), by striking ``2002'' and inserting 
    ``2007''.
    (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by 
striking ``2002'' and inserting ``2007''.
    (c) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the first 
sentence by striking ``1996 through 2002'' and inserting ``2003 through 
2007''.

SEC. 4123. EXPANDED GRANT AUTHORITY.

    (a) In General.--Section 17(a)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2026(a)(1)) is amended--
        (1) by striking ``, by way of making contracts with or grants 
    to public or private organizations or agencies,'' and inserting 
    ``enter into contracts with or make grants to public or private 
    organizations or agencies under this section to''; and
        (2) by adding at the end the following: ``The waiver authority 
    of the Secretary under subsection (b) shall extend to all contracts 
    and grants under this section.''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4124. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN 
              SAMOA.

    (a) Consolidated Funding.--Section 19 of the Food Stamp Act of 1977 
(7 U.S.C. 2028) is amended--
        (1) by striking the section heading and ``(a)(1)(A) From'' and 
    all that follows through ``(2) The'' and inserting the following:

``SEC. 19. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN 
              SAMOA.

    ``(a) Payments to Governmental Entities.--
        ``(1) Definition of governmental entity.--In this subsection, 
    the term `governmental entity' means--
            ``(A) the Commonwealth of Puerto Rico; and
            ``(B) American Samoa.
        ``(2) Block grants.--
            ``(A) Amount of block grants.--From the sums appropriated 
        under this Act, the Secretary shall, subject to this section, 
        pay to governmental entities to pay the expenditures for 
        nutrition assistance programs for needy persons as described in 
        subparagraphs (B) and (C)--
                ``(i) for fiscal year 2003, $1,401,000,000; and
                ``(ii) for each of fiscal years 2004 through 2007, the 
            amount specified in clause (i), as adjusted by the 
            percentage by which the thrifty food plan has been adjusted 
            under section 3(o)(4) between June 30, 2002, and June 30 of 
            the immediately preceding fiscal year.
            ``(B) Payments to commonwealth of puerto rico.--
                ``(i) In general.--For fiscal year 2003 and each fiscal 
            year thereafter, the Secretary shall use 99.6 percent of 
            the funds made available under subparagraph (A) for payment 
            to the Commonwealth of Puerto Rico to pay--

                    ``(I) 100 percent of the expenditures by the 
                Commonwealth for the fiscal year for the provision of 
                nutrition assistance included in the plan of the 
                Commonwealth approved under subsection (b); and
                    ``(II) 50 percent of the related administrative 
                expenses.

                ``(ii) Exception for expenditures for certain 
            systems.--Notwithstanding clause (i), the Commonwealth of 
            Puerto Rico may spend in fiscal year 2002 or 2003 not more 
            than $6,000,000 of the amount required to be paid to the 
            Commonwealth for fiscal year 2002 under this paragraph (as 
            in effect on the day before the date of enactment of this 
            clause) to pay 100 percent of the costs of--

                    ``(I) upgrading and modernizing the electronic data 
                processing system used to carry out nutrition 
                assistance programs for needy persons;
                    ``(II) implementing systems to simplify the 
                determination of eligibility to receive the nutrition 
                assistance; and
                    ``(III) operating systems to deliver the nutrition 
                assistance through electronic benefit transfers.

            ``(C) Payments to american samoa.--For fiscal year 2003 and 
        each fiscal year thereafter, the Secretary shall use 0.4 
        percent of the funds made available under subparagraph (A) for 
        payment to American Samoa to pay 100 percent of the 
        expenditures by American Samoa for a nutrition assistance 
        program extended under section 601(c) of Public Law 96-597 (48 
        U.S.C. 1469d(c)).
            ``(D) Carryover of funds.--For fiscal year 2002 and each 
        fiscal year thereafter, not more than 2 percent of the funds 
        made available under this paragraph for the fiscal year to each 
        governmental entity may be carried over to the following fiscal 
        year.
        ``(3) Time and manner of payments to commonwealth of puerto 
    rico.--The'';
        (2) in subsection (b), by striking ``subsection (a)(1)(A)'' 
    each place it appears and inserting ``subsection (a)(2)(B)''; and
        (3) in subsection (c), by striking ``subsection (a)(1)(A)'' 
    each place it appears and inserting ``subsection (a)(2)(A)''.
    (b) Conforming Amendment.--Section 24 of the Food Stamp Act of 1977 
(7 U.S.C. 2033) is repealed.
    (c) Applicability.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section apply beginning on October 1, 2002.
        (2) Exceptions.--Subparagraphs (B)(ii) and (D) of section 
    19(a)(2) of the Food Stamp Act of 1977 (as amended by subsection 
    (a)(1)) apply beginning on the date of enactment of this Act.
    (d) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4125. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    (a) In General.--Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 
2034) is amended--
        (1) in subsection (a)--
            (A) by striking ``(1)'' and inserting ``(1)(A)'';
            (B) by redesignating paragraphs (2) and (3) as 
        subparagraphs (B) and (C), respectively, of paragraph (1);
            (C) in paragraph (1)(C) (as redesignated by subparagraph 
        (B)), by striking the period at the end and inserting ``; or''; 
        and
            (D) by adding at the end the following:
        ``(2) meet specific State, local, or neighborhood food and 
    agricultural needs, including needs for--
            ``(A) infrastructure improvement and development;
            ``(B) planning for long-term solutions; or
            ``(C) the creation of innovative marketing activities that 
        mutually benefit agricultural producers and low-income 
        consumers.'';
        (2) in subsection (b)(2)(B)--
            (A) by striking ``$2,500,000'' and inserting 
        ``$5,000,000''; and
            (B) by striking ``2002'' and inserting ``2007'';
        (3) in subsection (d), by striking paragraph (4) and inserting 
    the following:
        ``(4) encourage long-term planning activities, and multisystem, 
    interagency approaches with multistakeholder collaborations, that 
    build the long-term capacity of communities to address the food and 
    agricultural problems of the communities, such as food policy 
    councils and food planning associations.''; and
        (4) by striking subsection (h) and inserting the following:
    ``(h) Innovative Programs for Addressing Common Community 
Problems.--
        ``(1) In general.--The Secretary shall offer to enter into a 
    contract with, or make a grant to, 1 nongovernmental organization 
    that meets the requirements of paragraph (2) to coordinate with 
    Federal agencies, States, political subdivisions, and 
    nongovernmental organizations (collectively referred to in this 
    subsection as `targeted entities') to gather information, and 
    recommend to the targeted entities, innovative programs for 
    addressing common community problems, including--
            ``(A) loss of farms and ranches;
            ``(B) rural poverty;
            ``(C) welfare dependency;
            ``(D) hunger;
            ``(E) the need for job training; and
            ``(F) the need for self-sufficiency by individuals and 
        communities.
        ``(2) Nongovernmental organization.--The nongovernmental 
    organization referred to in paragraph (1) shall--
            ``(A) be selected by the Secretary on a competitive basis;
            ``(B) be experienced in working with other targeted 
        entities and in organizing workshops that demonstrate programs 
        to other targeted entities;
            ``(C) be experienced in identifying programs that 
        effectively address community problems described in paragraph 
        (1) that can be implemented by other targeted entities;
            ``(D) be experienced in, and capable of, receiving 
        information from and communicating with other targeted entities 
        throughout the United States;
            ``(E) be experienced in operating a national information 
        clearinghouse that addresses 1 or more of the community 
        problems described in paragraph (1); and
            ``(F) as a condition of entering into the contract or 
        receiving the grant referred to in paragraph (1), agree--
                ``(i) to contribute in-kind resources toward 
            implementation of the contract or grant;
                ``(ii) to provide to other targeted entities 
            information and guidance on the innovative programs 
            referred to in paragraph (1); and
                ``(iii) to operate a national information clearinghouse 
            on innovative means for addressing community problems 
            described in paragraph (1) that--

                    ``(I) is easily usable by--

                        ``(aa) Federal, State, and local government 
                    agencies;
                        ``(bb) local community leaders;
                        ``(cc) nongovernmental organizations; and
                        ``(dd) the public; and

                    ``(II) includes information on approved community 
                food projects.

        ``(3) Audits; effective use of funds.--The Secretary shall 
    establish auditing procedures and otherwise ensure the effective 
    use of funds made available to carry out this subsection.
        ``(4) Funding.--Not later than 90 days after the date of 
    enactment of this paragraph, and on October 1 of each of fiscal 
    years 2003 through 2007, the Secretary shall allocate to carry out 
    this subsection $200,000 of the funds made available under 
    subsection (b), to remain available until expended.''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4126. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
              ASSISTANCE PROGRAM.

    (a) In General.--Section 27(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2036(a)) is amended--
        (1) by striking ``1997 through 2002'' and inserting ``2002 
    through 2007''; and
        (2) by striking ``$100,000,000'' and inserting 
    ``$140,000,000''.
    (b) Effective Date.--The amendments made by this section take 
effect on October 1, 2001.

                   Subtitle B--Commodity Distribution

SEC. 4201. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) Commodity Distribution Program.--Section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended in the first sentence by striking ``2002'' 
and inserting ``2007''.
    (b) Commodity Supplemental Food Program.--Section 5 of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) Grants Per Assigned Caseload Slot.--
        ``(1) In general.--In carrying out the program under section 4 
    (referred to in this section as the `commodity supplemental food 
    program'), for each of fiscal years 2003 through 2007, the 
    Secretary shall provide to each State agency from funds made 
    available to carry out that section (including any such funds 
    remaining available from the preceding fiscal year), a grant per 
    assigned caseload slot for administrative costs incurred by the 
    State agency and local agencies in the State in operating the 
    commodity supplemental food program.
        ``(2) Amount of grants.--
            ``(A) Fiscal year 2003.--For fiscal year 2003, the amount 
        of each grant per assigned caseload slot shall be equal to the 
        amount of the grant per assigned caseload slot for 
        administrative costs in 2001, adjusted by the percentage change 
        between--
                ``(i) the value of the State and local government price 
            index, as published by the Bureau of Economic Analysis of 
            the Department of Commerce, for the 12-month period ending 
            June 30, 2001; and
                ``(ii) the value of that index for the 12-month period 
            ending June 30, 2002.
            ``(B) Fiscal years 2004 through 2007.--For each of fiscal 
        years 2004 through 2007, the amount of each grant per assigned 
        caseload slot shall be equal to the amount of the grant per 
        assigned caseload slot for the preceding fiscal year, adjusted 
        by the percentage change between--
                ``(i) the value of the State and local government price 
            index, 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
                ``(ii) the value of that index for the 12-month period 
            ending June 30 of the preceding fiscal year.'';
        (2) in subsection (d)(2), by striking ``2002'' each place it 
    appears and inserting ``2007''; and
        (3) by striking subsection (l) and inserting the following:
    ``(l) Use of Approved Food Safety Technology.--
        ``(1) In general.--In acquiring commodities for distribution 
    through a program specified in paragraph (2), the Secretary shall 
    not prohibit the use of any technology to improve food safety 
    that--
            ``(A) has been approved by the Secretary; or
            ``(B) has been approved or is otherwise allowed by the 
        Secretary of Health and Human Services.
        ``(2) Programs.--A program referred to in paragraph (1) is a 
    program authorized under--
            ``(A) this Act;
            ``(B) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
            ``(C) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
        7501 et seq.);
            ``(D) the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.); or
            ``(E) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).''.
    (c) Additional Funding for Certain States.--
        (1) In general.--Not later than 30 days after the date of 
    enactment of this Act, of the funds of the Commodity Credit 
    Corporation, the Secretary of Agriculture shall make available an 
    amount equal to the amount that the Secretary of Agriculture 
    determines to be necessary to permit each State that began 
    administering the commodity supplemental food program under the 
    Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
    note; Public Law 93-86) in the 2000 caseload cycle to administer 
    the program, through the 2002 caseload cycle, at a caseload level 
    that is not less than the originally assigned caseload level of the 
    State.
        (2) Provision to states.--The Secretary shall provide to each 
    State described in paragraph (1) for the purpose described in that 
    paragraph the funds made available under that paragraph.
    (d) Effective Date.--The amendment made by subsection (b)(3) takes 
effect on the date of enactment of this Act.

SEC. 4202. COMMODITY DONATIONS.

    (a) In General.--The Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is 
amended--
        (1) by redesignating sections 17 and 18 as sections 18 and 19, 
    respectively; and
        (2) by inserting after section 16 the following:

``SEC. 17. COMMODITY DONATIONS.

    ``(a) In General.--Notwithstanding any other provision of law 
concerning commodity donations, any commodities acquired in the conduct 
of the operations of the Commodity Credit Corporation and any 
commodities acquired under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), to the extent that the commodities are in excess of the 
quantities of commodities that are essential to carry out other 
authorized activities of the Commodity Credit Corporation and the 
Secretary (including any quantity specifically reserved for a specific 
purpose), may be used for any program authorized to be carried out by 
the Secretary that involves the acquisition of commodities for use in a 
domestic feeding program, including any program conducted by the 
Secretary that provides commodities to individuals in cases of 
hardship.
    ``(b) Programs.--A program described in subsection (a) includes a 
program authorized by--
        ``(1) the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 
    et seq.);
        ``(2) the Richard B. Russell National School Lunch Act (42 
    U.S.C. 1751 et seq.);
        ``(3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
        ``(4) the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.); 
    or
        ``(5) such other laws as the Secretary determines to be 
    appropriate.''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4203. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
              PROJECTS.

    Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(2)(A)) is amended in the first sentence by striking 
``2002'' and inserting ``2007''.

SEC. 4204. EMERGENCY FOOD ASSISTANCE.

    Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7508(a)(1)) is amended in the first sentence--
        (1) by striking ``$50,000,000'' and inserting ``$60,000,000'';
        (2) by striking ``1991 through 2002'' and inserting ``2003 
    through 2007'';
        (3) by striking ``administrative'';
        (4) by inserting ``storage,'' after ``processing,''; and
        (5) by inserting ``, including commodities secured by gleaning 
    (as defined in section 111(a) of the Hunger Prevention Act of 1988 
    (7 U.S.C. 612c note; Public Law 100-435))'' after ``sources''.

            Subtitle C--Child Nutrition and Related Programs

SEC. 4301. COMMODITIES FOR SCHOOL LUNCH PROGRAM.

    (a) In General.--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 ``2001'' and inserting ``2003''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4302. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end 
the following:
        ``(7) Exclusion of certain military housing allowances.--For 
    each of fiscal years 2002 and 2003, the amount of a basic allowance 
    provided under section 403 of title 37, United States Code, on 
    behalf of a member of a uniformed service for housing that is 
    acquired or constructed under subchapter IV of chapter 169 of title 
    10, United States Code, or any related provision of law, shall not 
    be considered to be income for the purpose of determining the 
    eligibility of a child who is a member of the household of the 
    member of a uniformed service for free or reduced price lunches 
    under this Act.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4303. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758) is amended by adding at the end the following:
    ``(j) Purchases of Locally Produced Foods.--
        ``(1) In general.--The Secretary shall--
            ``(A) encourage institutions participating in the school 
        lunch program under this Act and the school breakfast program 
        established by section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773) to purchase, in addition to other food purchases, 
        locally produced foods for school meal programs, to the maximum 
        extent practicable and appropriate;
            ``(B) advise institutions participating in a program 
        described in subparagraph (A) of the policy described in that 
        subparagraph and post information concerning the policy on the 
        website maintained by the Secretary; and
            ``(C) in accordance with requirements established by the 
        Secretary, provide startup grants to not more than 200 
        institutions to defray the initial costs of equipment, 
        materials, and storage facilities, and similar costs, incurred 
        in carrying out the policy described in subparagraph (A).
        ``(2) Authorization of appropriations.--
            ``(A) In general.--There is authorized to be appropriated 
        to carry out this subsection $400,000 for each of fiscal years 
        2003 through 2007, to remain available until expended.
            ``(B) Limitation.--No amounts may be made available to 
        carry out this subsection unless specifically provided by an 
        appropriation Act.''.

SEC. 4304. APPLICABILITY OF BUY-AMERICAN REQUIREMENT TO PUERTO RICO.

    Section 12(n) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(n)) is amended by adding at the end the following:
        ``(4) Applicability to puerto rico.--Paragraph (2)(A) shall 
    apply to a school food authority in the Commonwealth of Puerto Rico 
    with respect to domestic commodities or products that are produced 
    in the Commonwealth of Puerto Rico in sufficient quantities to meet 
    the needs of meals provided under the school lunch program under 
    this Act or the school breakfast program under section 4 of the 
    Child Nutrition Act of 1966 (42 U.S.C. 1773).''.

SEC. 4305. FRUIT AND VEGETABLE PILOT PROGRAM.

    (a) In General.--Section 18 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1769) is amended by adding at the end the 
following:
    ``(g) Fruit and Vegetable Pilot Program.--
        ``(1) In general.--In the school year beginning July 2002, the 
    Secretary shall carry out a pilot program to make available to 
    students in 25 elementary or secondary schools in each of 4 States, 
    and in elementary or secondary schools on 1 Indian reservation, 
    free fresh and dried fruits and fresh vegetables throughout the 
    school day in 1 or more areas designated by the school.
        ``(2) Publicity.--A school that participates in the pilot 
    program shall widely publicize within the school the availability 
    of free fruits and vegetables under the pilot program.
        ``(3) Report.--Not later than May 1, 2003, the Secretary, 
    acting through the Administrator of the Economic Research Service, 
    shall report to the Committee on Education and the Workforce of the 
    House of Representatives and the Committee on Agriculture, 
    Nutrition, and Forestry of the Senate on the results of the pilot 
    program.
        ``(4) Funding.--The Secretary shall use not more than 
    $6,000,000 of funds made available under section 32 of the Act of 
    August 24, 1935 (7 U.S.C. 612c), to carry out this subsection 
    (other than paragraph (3)).''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 4306. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL SUPPLEMENTAL 
              NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.

    (a) In General.--Section 17(d)(2)(B)(i) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(d)(2)(B)(i)) is amended--
        (1) by striking ``basic allowance for housing'' and inserting 
    the following: ``basic allowance--
            ``(I) for housing'';
        (2) by striking ``and'' at the end and inserting ``or''; and
        (3) by adding at the end the following:
            ``(II) provided under section 403 of title 37, United 
        States Code, for housing that is acquired or constructed under 
        subchapter IV of chapter 169 of title 10, United States Code, 
        or any related provision of law; and''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 4307. WIC FARMERS' MARKET NUTRITION PROGRAM.

    (a) In General.--Section 17(m)(9) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(m)(9)) is amended--
        (1) by striking ``(9)(A) There'' and inserting the following:
        ``(9) Funding.--
            ``(A) In general.--
                ``(i) Authorization of appropriations.--There''; and
        (2) in subparagraph (A), by adding at the end the following:
                ``(ii) Mandatory funding.--Not later than 30 days after 
            the date of enactment of the Food Stamp Reauthorization Act 
            of 2002, of the funds of the Commodity Credit Corporation, 
            the Secretary shall make available to carry out this 
            subsection $15,000,000, to remain available until 
            expended.''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

                       Subtitle D--Miscellaneous

SEC. 4401. PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.

    (a) Restoration of Benefits to Disabled Aliens.--Section 
402(a)(2)(F) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(F)) is amended by 
striking ``(i) was'' and all that follows through ``(II) in the case'' 
and inserting the following:
                ``(i) in the case of the specified Federal program 
            described in paragraph (3)(A)--

                    ``(I) was lawfully residing in the United States on 
                August 22, 1996; and
                    ``(II) is blind or disabled (as defined in 
                paragraph (2) or (3) of section 1614(a) of the Social 
                Security Act (42 U.S.C. 1382c(a))); and

                ``(ii) in the case''.
    (b) Restoration of Benefits to All Qualified Alien Children.--
        (1) In general.--Section 402(a)(2)(J) of the Personal 
    Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
    U.S.C. 1612(a)(2)(J)) is amended by striking ``who'' and all that 
    follows through ``is under'' and inserting ``who is under''.
        (2) Conforming amendments.--
            (A) Section 403(c)(2) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1613(c)(2)) is amended by adding at the end the following:
            ``(L) Assistance or benefits provided to individuals under 
        the age of 18 under the Food Stamp Act of 1977 (7 U.S.C. 2011 
        et seq.).''.
            (B) Section 421(d) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(d)) is 
        amended by adding at the end the following:
        ``(3) This section shall not apply to assistance or benefits 
    under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to the 
    extent that a qualified alien is eligible under section 
    402(a)(2)(J).''.
            (C) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 
        U.S.C. 2014(i)(2)(E)) is amended by inserting before the period 
        at the end the following: ``, or to any alien who is under 18 
        years of age''.
        (3) Effective date.--The amendments made by this subsection 
    take effect on October 1, 2003.
    (c) Food Stamp Exception for Certain Qualified Aliens.--
        (1) In general.--Section 402(a)(2) of the Personal 
    Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
    U.S.C. 1612(a)(2)) is amended by adding at the end the following:
            ``(L) Food stamp exception for certain qualified aliens.--
        With respect to eligibility for benefits for the specified 
        Federal program described in paragraph (3)(B), paragraph (1) 
        shall not apply to any qualified alien who has resided in the 
        United States with a status within the meaning of the term 
        `qualified alien' for a period of 5 years or more beginning on 
        the date of the alien's entry into the United States.''.
        (2) Effective date.--The amendment made by paragraph (1) takes 
    effect on April 1, 2003.

SEC. 4402. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall use 
$5,000,000 for fiscal year 2002, and $15,000,000 for each of fiscal 
years 2003 through 2007, of the funds available to the Commodity Credit 
Corporation to carry out and expand a seniors farmers' market nutrition 
program.
    (b) Program Purposes.--The purposes of the seniors farmers' market 
nutrition program are--
        (1) to provide resources in the form of fresh, nutritious, 
    unprepared, locally grown fruits, vegetables, and herbs from 
    farmers' markets, roadside stands, and community supported 
    agriculture programs to low-income seniors;
        (2) to increase the domestic consumption of agricultural 
    commodities by expanding or aiding in the expansion of domestic 
    farmers' markets, roadside stands, and community supported 
    agriculture programs; and
        (3) to develop or aid in the development of new and additional 
    farmers' markets, roadside stands, and community supported 
    agriculture programs.
    (c) Regulations.--The Secretary may issue such regulations as the 
Secretary considers necessary to carry out the seniors farmers' market 
nutrition program.

SEC. 4403. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    (a) Establishment.--The Secretary of Agriculture may establish, in 
not more than 5 States, for a period not to exceed 4 years for each 
participating State, a pilot program to increase the domestic 
consumption of fresh fruits and vegetables.
    (b) Purpose.--
        (1) In general.--Subject to paragraph (2), the purpose of the 
    program shall be to provide funds to States solely for the purpose 
    of assisting eligible public and private sector entities with cost-
    share assistance to carry out demonstration projects--
            (A) to increase fruit and vegetable consumption; and
            (B) to convey related health promotion messages.
        (2) Limitation.--Funds made available to a State under the 
    program shall not be used to disparage any agricultural commodity.
    (c) Selection of States.--
        (1) In general.--In selecting States to participate in the 
    program, the Secretary shall take into consideration, with respect 
    to projects and activities proposed to be carried out under the 
    program--
            (A) experience in carrying out similar projects or 
        activities;
            (B) innovative approaches; and
            (C) the ability of the State to promote and track increases 
        in levels of fruit and vegetable consumption.
        (2) Enhancement of existing state programs.--The Secretary may 
    use the pilot program to enhance existing State programs that are 
    consistent with the purpose of the pilot program specified in 
    subsection (b).
    (d) Eligible Public and Private Sector Entities.--
        (1) In general.--A participating State shall establish 
    eligibility criteria under which the State may select public and 
    private sector entities to carry out demonstration projects under 
    the program.
        (2) Limitation.--No funds made available to States under the 
    program shall be provided by a State to any foreign for-profit 
    corporation.
    (e) Federal Share.--The Federal share of the cost of any project or 
activity carried out using funds provided under this section shall be 
50 percent.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2002 through 2007.

SEC. 4404. HUNGER FELLOWSHIP PROGRAM.

    (a) Short Title; Findings.--
        (1) Short title.--This section may be cited as the 
    ``Congressional Hunger Fellows Act of 2002''.
        (2) Findings.--The Congress finds as follows:
            (A) There is a critical need for compassionate individuals 
        who are committed to assisting people who suffer from hunger as 
        well as a need for such individuals to initiate and administer 
        solutions to the hunger problem.
            (B) Bill Emerson, the distinguished late Representative 
        from the 8th District of Missouri, demonstrated his commitment 
        to solving the problem of hunger in a bipartisan manner, his 
        commitment to public service, and his great affection for the 
        institution and the ideals of the United States Congress.
            (C) George T. (Mickey) Leland, the distinguished late 
        Representative from the 18th District of Texas, demonstrated 
        his compassion for those in need, his high regard for public 
        service, and his lively exercise of political talents.
            (D) The special concern that Mr. Emerson and Mr. Leland 
        demonstrated during their lives for the hungry and poor was an 
        inspiration for others to work toward the goals of equality and 
        justice for all.
            (E) These two outstanding leaders maintained a special bond 
        of friendship regardless of political affiliation and worked 
        together to encourage future leaders to recognize and provide 
        service to others, and therefore it is especially appropriate 
        to honor the memory of Mr. Emerson and Mr. Leland by creating a 
        fellowship program to develop and train the future leaders of 
        the United States to pursue careers in humanitarian service.
    (b) Establishment.--There is established as an independent entity 
of the legislative branch of the United States Government the 
Congressional Hunger Fellows Program (hereinafter in this section 
referred to as the ``Program'').
    (c) Board of Trustees.--
        (1) In general.--The Program shall be subject to the 
    supervision and direction of a Board of Trustees.
        (2) Members of the board of trustees.--
            (A) Appointment.--The Board shall be composed of 6 voting 
        members appointed under clause (i) and one nonvoting ex officio 
        member designated in clause (ii) as follows:
                (i) Voting members.--(I) The Speaker of the House of 
            Representatives shall appoint two members.
                (II) The minority leader of the House of 
            Representatives shall appoint one member.
                (III) The majority leader of the Senate shall appoint 
            two members.
                (IV) The minority leader of the Senate shall appoint 
            one member.
                (ii) Nonvoting member.--The Executive Director of the 
            program shall serve as a nonvoting ex officio member of the 
            Board.
            (B) Terms.--Members of the Board shall serve a term of 4 
        years.
            (C) Vacancy.--
                (i) Authority of board.--A vacancy in the membership of 
            the Board does not affect the power of the remaining 
            members to carry out this section.
                (ii) Appointment of successors.--A vacancy in the 
            membership of the Board shall be filled in the same manner 
            in which the original appointment was made.
                (iii) Incomplete term.--If a member of the Board does 
            not serve the full term applicable to the member, the 
            individual appointed to fill the resulting vacancy shall be 
            appointed for the remainder of the term of the predecessor 
            of the individual.
            (D) Chairperson.--As the first order of business of the 
        first meeting of the Board, the members shall elect a 
        Chairperson.
            (E) Compensation.--
                (i) In general.--Subject to clause (ii), members of the 
            Board may not receive compensation for service on the 
            Board.
                (ii) Travel.--Members of the Board may be reimbursed 
            for travel, subsistence, and other necessary expenses 
            incurred in carrying out the duties of the program.
        (3) Duties.--
            (A) Bylaws.--
                (i) Establishment.--The Board shall establish such 
            bylaws and other regulations as may be appropriate to 
            enable the Board to carry out this section, including the 
            duties described in this paragraph.
                (ii) Contents.--Such bylaws and other regulations shall 
            include provisions--

                    (I) for appropriate fiscal control, funds 
                accountability, and operating principles;
                    (II) to prevent any conflict of interest, or the 
                appearance of any conflict of interest, in the 
                procurement and employment actions taken by the Board 
                or by any officer or employee of the Board and in the 
                selection and placement of individuals in the 
                fellowships developed under the program;
                    (III) for the resolution of a tie vote of the 
                members of the Board; and
                    (IV) for authorization of travel for members of the 
                Board.

                (iii) Transmittal to congress.--Not later than 90 days 
            after the date of the first meeting of the Board, the 
            Chairperson of the Board shall transmit to the appropriate 
            congressional committees a copy of such bylaws.
            (B) Budget.--For each fiscal year the program is in 
        operation, the Board shall determine a budget for the program 
        for that fiscal year. All spending by the program shall be 
        pursuant to such budget unless a change is approved by the 
        Board.
            (C) Process for selection and placement of fellows.--The 
        Board shall review and approve the process established by the 
        Executive Director for the selection and placement of 
        individuals in the fellowships developed under the program.
            (D) Allocation of funds to fellowships.--The Board of 
        Trustees shall determine the priority of the programs to be 
        carried out under this section and the amount of funds to be 
        allocated for the Emerson and Leland fellowships.
    (d) Purposes; Authority of Program.--
        (1) Purposes.--The purposes of the program are--
            (A) to encourage future leaders of the United States to 
        pursue careers in humanitarian service, to recognize the needs 
        of people who are hungry and poor, and to provide assistance 
        and compassion for those in need;
            (B) to increase awareness of the importance of public 
        service; and
            (C) to provide training and development opportunities for 
        such leaders through placement in programs operated by 
        appropriate organizations or entities.
        (2) Authority.--The program is authorized to develop such 
    fellowships to carry out the purposes of this section, including 
    the fellowships described in paragraph (3).
        (3) Fellowships.--
            (A) In general.--The program shall establish and carry out 
        the Bill Emerson Hunger Fellowship and the Mickey Leland Hunger 
        Fellowship.
            (B) Curriculum.--
                (i) In general.--The fellowships established under 
            subparagraph (A) shall provide experience and training to 
            develop the skills and understanding necessary to improve 
            the humanitarian conditions and the lives of individuals 
            who suffer from hunger, including--

                    (I) training in direct service to the hungry in 
                conjunction with community-based organizations through 
                a program of field placement; and
                    (II) experience in policy development through 
                placement in a governmental entity or nonprofit 
                organization.

                (ii) Focus of bill emerson hunger fellowship.--The Bill 
            Emerson Hunger Fellowship shall address hunger and other 
            humanitarian needs in the United States.
                (iii) Focus of mickey leland hunger fellowship.--The 
            Mickey Leland Hunger Fellowship shall address international 
            hunger and other humanitarian needs.
                (iv) Workplan.--To carry out clause (i) and to assist 
            in the evaluation of the fellowships under paragraph (4), 
            the program shall, for each fellow, approve a work plan 
            that identifies the target objectives for the fellow in the 
            fellowship, including specific duties and responsibilities 
            related to those objectives.
            (C) Period of fellowship.--
                (i) Emerson fellow.--A Bill Emerson Hunger Fellowship 
            awarded under this paragraph shall be for no more than 1 
            year.
                (ii) Leland fellow.--A Mickey Leland Hunger Fellowship 
            awarded under this paragraph shall be for no more than 2 
            years. Not less than 1 year of the fellowship shall be 
            dedicated to fulfilling the requirement of subparagraph 
            (B)(i)(I).
            (D) Selection of fellows.--
                (i) In general.--A fellowship shall be awarded pursuant 
            to a nationwide competition established by the program.
                (ii) Qualification.--A successful applicant shall be an 
            individual who has demonstrated--

                    (I) an intent to pursue a career in humanitarian 
                service and outstanding potential for such a career;
                    (II) leadership potential or actual leadership 
                experience;
                    (III) diverse life experience;
                    (IV) proficient writing and speaking skills;
                    (V) an ability to live in poor or diverse 
                communities; and
                    (VI) such other attributes as determined to be 
                appropriate by the Board.

                (iii) Amount of award.--

                    (I) In general.--Each individual awarded a 
                fellowship under this paragraph shall receive a living 
                allowance and, subject to subclause (II), an end-of-
                service award as determined by the program.
                    (II) Requirement for successful completion of 
                fellowship.--Each individual awarded a fellowship under 
                this paragraph shall be entitled to receive an end-of-
                service award at an appropriate rate for each month of 
                satisfactory service as determined by the Executive 
                Director.

                (iv) Recognition of fellowship award.--

                    (I) Emerson fellow.--An individual awarded a 
                fellowship from the Bill Emerson Hunger Fellowship 
                shall be known as an ``Emerson Fellow''.
                    (II) Leland fellow.--An individual awarded a 
                fellowship from the Mickey Leland Hunger Fellowship 
                shall be known as a ``Leland Fellow''.

        (4) Evaluation.--The program shall conduct periodic evaluations 
    of the Bill Emerson and Mickey Leland Hunger Fellowships. Such 
    evaluations shall include the following:
            (A) An assessment of the successful completion of the work 
        plan of the fellow.
            (B) An assessment of the impact of the fellowship on the 
        fellows.
            (C) An assessment of the accomplishment of the purposes of 
        the program.
            (D) An assessment of the impact of the fellow on the 
        community.
    (e) Trust Fund.--
        (1) Establishment.--There is established the Congressional 
    Hunger Fellows Trust Fund (hereinafter in this section referred to 
    as the ``Fund'') in the Treasury of the United States, consisting 
    of amounts appropriated to the Fund under subsection (i), amounts 
    credited to it under paragraph (3), and amounts received under 
    subsection (g)(3)(A).
        (2) Investment of funds.--The Secretary of the Treasury shall 
    invest the full amount of the Fund. Each investment shall be made 
    in an interest bearing obligation of the United States or an 
    obligation guaranteed as to principal and interest by the United 
    States that, as determined by the Secretary in consultation with 
    the Board, has a maturity suitable for the Fund.
        (3) Return on investment.--Except as provided in subsection 
    (f)(2), the Secretary of the Treasury shall credit to the Fund the 
    interest on, and the proceeds from the sale or redemption of, 
    obligations held in the Fund.
    (f) Expenditures; Audits.--
        (1) In general.--The Secretary of the Treasury shall transfer 
    to the program from the amounts described in subsection (e)(3) and 
    subsection (g)(3)(A) such sums as the Board determines are 
    necessary to enable the program to carry out the provisions of this 
    section.
        (2) Limitation.--The Secretary may not transfer to the program 
    the amounts appropriated to the Fund under subsection (i).
        (3) Use of funds.--Funds transferred to the program under 
    paragraph (1) shall be used for the following purposes:
            (A) Stipends for fellows.--To provide for a living 
        allowance for the fellows.
            (B) Travel of fellows.--To defray the costs of 
        transportation of the fellows to the fellowship placement 
        sites.
            (C) Insurance.--To defray the costs of appropriate 
        insurance of the fellows, the program, and the Board.
            (D) Training of fellows.--To defray the costs of preservice 
        and midservice education and training of fellows.
            (E) Support staff.--Staff described in subsection (g).
            (F) Awards.--End-of-service awards under subsection 
        (d)(3)(D)(iii)(II).
            (G) Additional approved uses.--For such other purposes that 
        the Board determines appropriate to carry out the program.
        (4) Audit by gao.--
            (A) In general.--The Comptroller General of the United 
        States shall conduct an annual audit of the accounts of the 
        program.
            (B) Books.--The program shall make available to the 
        Comptroller General all books, accounts, financial records 
        (including records of salaries of the Executive Director and 
        other personnel), reports, files, and all other papers, things, 
        or property belonging to or in use by the program and necessary 
        to facilitate such audit.
            (C) Report to congress.--The Comptroller General shall 
        submit a copy of the results of each such audit to the 
        appropriate congressional committees.
    (g) Staff; Powers of Program.--
        (1) Executive director.--
            (A) In general.--The Board shall appoint an Executive 
        Director of the program who shall administer the program. The 
        Executive Director shall carry out such other functions 
        consistent with the provisions of this section as the Board 
        shall prescribe.
            (B) Restriction.--The Executive Director may not serve as 
        Chairperson of the Board.
            (C) Compensation.--The Executive Director shall be paid at 
        a rate not to exceed the rate of basic pay payable for level V 
        of the Executive Schedule under section 5316 of title 5, United 
        States Code.
        (2) Staff.--
            (A) In general.--With the approval of a majority of the 
        Board, the Executive Director may appoint and fix the pay of 
        additional personnel as the Executive Director considers 
        necessary and appropriate to carry out the functions of the 
        provisions of this section.
            (B) Compensation.--An individual appointed under 
        subparagraph (A) shall be paid at a rate not to exceed the rate 
        of basic pay payable for level GS-15 of the General Schedule.
        (3) Powers.--In order to carry out the provisions of this 
    section, the program may perform the following functions:
            (A) Gifts.--The program may solicit, accept, use, and 
        dispose of gifts, bequests, or devises of services or property, 
        both real and personal, for the purpose of aiding or 
        facilitating the work of the program. Gifts, bequests, or 
        devises of money and proceeds from sales of other property 
        received as gifts, bequests, or devises shall be deposited in 
        the Fund and shall be available for disbursement upon order of 
        the Board.
            (B) Experts and consultants.--The program may procure 
        temporary and intermittent services under section 3109 of title 
        5, United States Code, but at rates for individuals not to 
        exceed the daily equivalent of the maximum annual rate of basic 
        pay payable for GS-15 of the General Schedule.
            (C) Contract authority.--The program may contract, with the 
        approval of a majority of the members of the Board, with and 
        compensate Government and private agencies or persons without 
        regard to section 3709 of the Revised Statutes (41 U.S.C. 5).
            (D) Other necessary expenditures.--The program shall make 
        such other expenditures which the program considers necessary 
        to carry out the provisions of this section, but excluding 
        project development.
    (h) Report.--Not later than December 31 of each year, the Board 
shall submit to the appropriate congressional committees a report on 
the activities of the program carried out during the previous fiscal 
year, and shall include the following:
        (1) An analysis of the evaluations conducted under subsection 
    (d)(4) (relating to evaluations of the Emerson and Leland 
    fellowships and accomplishment of the program purposes) during that 
    fiscal year.
        (2) A statement of the total amount of funds attributable to 
    gifts received by the program in that fiscal year (as authorized 
    under subsection (g)(3)(A)), and the total amount of such funds 
    that were expended to carry out the program that fiscal year.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated $18,000,000 to carry out the provisions of this section.
    (j) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
        (1) the Committee on Agriculture and the Committee on 
    International Relations of the House of Representatives; and
        (2) the Committee on Agriculture, Nutrition, and Forestry and 
    the Committee on Foreign Relations of the Senate.

SEC. 4405. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this title, the amendments made by 
this title take effect on October 1, 2002.

                            TITLE V--CREDIT
                    Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

    Section 302(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922(b)(1)) is amended by striking ``operated'' and 
inserting ``participated in the business operations of''.

SEC. 5002. FINANCING OF BRIDGE LOANS.

    Section 303(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1923(a)(1)) is amended--
        (1) in subparagraph (C), by striking ``or'' at the end;
        (2) in subparagraph (D), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following:
            ``(E) refinancing a temporary bridge loan made by a 
        commercial or cooperative lender to a farmer or rancher for the 
        acquisition of land for a farm or ranch, if--
                ``(i) the Secretary approved an application for a 
            direct farm ownership loan to the farmer or rancher for 
            acquisition of the land; and
                ``(ii) funds for direct farm ownership loans under 
            section 346(b) were not available at the time at which the 
            application was approved.''.

SEC. 5003. AMOUNT OF GUARANTEE OF LOANS FOR FARM OPERATIONS ON TRIBAL 
              LANDS.

    Section 309(h) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1929(h)) is amended--
        (1) in paragraph (4), by striking ``paragraphs (5) and (6)'' 
    and inserting ``paragraphs (5), (6), and (7)''; and
        (2) by adding at the end the following:
        ``(7) Amount of guarantee of loans for farm operations on 
    tribal lands.--In the case of an operating loan made to a farmer or 
    rancher whose farm or ranch land is subject to the jurisdiction of 
    an Indian tribe and whose loan is secured by 1 or more security 
    instruments that are subject to the jurisdiction of an Indian 
    tribe, the Secretary shall guarantee 95 percent of the loan.''.

SEC. 5004. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR 
              RANCHER PROGRAMS.

    Section 309 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929) is amended by adding at the end the following:
    ``(j) Guarantee of Loans Made Under State Beginning Farmer or 
Rancher Programs.--The Secretary may guarantee under this title a loan 
made under a State beginning farmer or rancher program, including a 
loan financed by the net proceeds of a qualified small issue 
agricultural bond for land or property described in section 
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.''.

SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1935) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking ``30 percent'' and 
        inserting ``40 percent''; and
            (B) in paragraph (3), by striking ``10 years'' and 
        inserting ``15 years''; and
        (2) in subsection (c)(3)(B), by striking ``10-year'' and 
    inserting ``15-year''.

SEC. 5006. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    Subtitle A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1922 et seq.) is amended by adding at the end the following:

``SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--If the Secretary makes a determination that the 
risk is comparable under subsection (b), the Secretary shall carry out 
a pilot program in not fewer than 5 States, as determined by the 
Secretary, to guarantee up to 5 loans per State in each of fiscal years 
2003 through 2007 made by a private seller of a farm or ranch to a 
qualified beginning farmer or rancher on a contract land sale basis, if 
the loan meets applicable underwriting criteria and a commercial 
lending institution agrees to serve as escrow agent.
    ``(b) Date of Commencement of Program.--Not later than October 1, 
2002, the Secretary shall make a determination on whether guarantees of 
contract land sales present a risk that is comparable with the risk 
presented in the case of guarantees to commercial lenders.''.

                      Subtitle B--Operating Loans

SEC. 5101. DIRECT LOANS.

    Section 311(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1941(c)) is amended--
        (1) in paragraph (1)--
            (A) in the matter that precedes subparagraph (A), by 
        striking ``paragraph (3)'' and inserting ``paragraphs (3) and 
        (4)''; and
            (B) in subparagraph (A), by striking ``who has not'' and 
        all that follows through ``5 years''; and
        (2) by adding at the end the following:
        ``(4) Waivers.--
            ``(A) Farm and ranch operations on tribal lands.--The 
        Secretary shall waive the limitation under paragraph (1)(C) or 
        (3) for a direct loan made under this subtitle to a farmer or 
        rancher whose farm or ranch land is subject to the jurisdiction 
        of an Indian tribe and whose loan is secured by 1 or more 
        security instruments that are subject to the jurisdiction of an 
        Indian tribe if the Secretary determines that commercial credit 
        is not generally available for such farm or ranch operations.
            ``(B) Other farm and ranch operations.--On a case-by-case 
        determination not subject to administrative appeal, the 
        Secretary may grant a borrower a waiver, 1 time only for a 
        period of 2 years, of the limitation under paragraph (1)(C) or 
        (3) for a direct operating loan if the borrower demonstrates to 
        the satisfaction of the Secretary that--
                ``(i) the borrower has a viable farm or ranch 
            operation;
                ``(ii) the borrower applied for commercial credit from 
            at least 2 commercial lenders;
                ``(iii) the borrower was unable to obtain a commercial 
            loan (including a loan guaranteed by the Secretary); and
                ``(iv) the borrower successfully has completed, or will 
            complete within 1 year, borrower training under section 359 
            (from which requirement the Secretary shall not grant a 
            waiver under section 359(f)).''.

SEC. 5102. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
              ELIGIBLE FOR GUARANTEED ASSISTANCE.

    During the period beginning January 1, 2002, and ending December 
31, 2006, section 319(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1949(b)) shall have no force or effect.

                      Subtitle C--Emergency Loans

SEC. 5201. EMERGENCY LOANS IN RESPONSE TO AN EMERGENCY RESULTING FROM 
              QUARANTINES.

    (a) Loan Authority.--Section 321(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961(a)) is amended--
        (1) in each of the 1st and 3rd sentences, by striking ``a 
    natural disaster in the United States or by'' and inserting ``a 
    quarantine imposed by the Secretary under the Plant Protection Act 
    or the animal quarantine laws (as defined in section 2509 of the 
    Food, Agriculture, Conservation, and Trade Act of 1990), a natural 
    disaster in the United States, or''; and
        (2) in the 4th sentence--
            (A) by striking ``a natural disaster'' and inserting ``such 
        a quarantine or natural disaster''; and
            (B) by striking ``by such natural disaster'' and inserting 
        ``by such quarantine or natural disaster''.
    (b) Conforming Amendment.--Section 323 of such Act (7 U.S.C. 1963) 
is amended by inserting ``quarantine,'' before ``natural disaster''.

                 Subtitle D--Administrative Provisions

SEC. 5301. EVALUATIONS OF DIRECT AND GUARANTEED LOAN PROGRAMS.

    (a) Studies.--The Secretary of Agriculture shall conduct 2 studies 
of the direct and guaranteed loan progams under sections 302 and 311 of 
the Consolidated Farm and Rural Development Act, each of which shall 
include an examination of the number, average principal amount, and 
delinquency and default rates of loans provided or guaranteed during 
the period covered by the study.
    (b) Periods Covered.--
        (1) First study.--One study under subsection (a) shall cover 
    the 1-year period that begins 1 year after the date of the 
    enactment of this section.
        (2) Second study.--One study under subsection (a) shall cover 
    the 1-year period that begins 3 years after such date of enactment.
    (c) Reports to the Congress.--At the end of the period covered by 
each study under this section, the Secretary of Agriculture shall 
submit to the Congress a report that contains an evaluation of the 
results of the study, including an analysis of the effectiveness of 
loan programs referred to in subsection (a) in meeting the credit needs 
of agricultural producers in an efficient and fiscally responsible 
manner.

SEC. 5302. ELIGIBILITY OF TRUSTS AND LIMITED LIABILITY COMPANIES FOR 
              FARM OWNERSHIP LOANS, FARM OPERATING LOANS, AND EMERGENCY 
              LOANS.

    (a) In General.--Sections 302(a), 311(a), and 321(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 1941(a), 
and 1961(a)) are each amended by striking ``and joint operations'' each 
place it appears and inserting ``joint operations, trusts, and limited 
liability companies''.
    (b) Conforming Amendment.--Section 321(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking 
``or joint operations'' each place it appears and inserting ``joint 
operations, trusts, or limited liability companies''.

SEC. 5303. DEBT SETTLEMENT.

    Section 331(b)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981(b)(4)) is amended--
        (1) by striking ``The Secretary may release'' and inserting 
    ``After consultation with a local or area county committee, the 
    Secretary may release''; and
        (2) by striking ``carried out--'' and all that follows through 
    ``(B) after'' and inserting ``carried out after''.

SEC. 5304. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE 
              COLLECTION AGENCIES.

    (a) In General.--Section 331 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981) is amended by striking subsections (d) 
and (e).
    (b) Application.--The amendment made by subsection (a) shall not 
apply to a contract entered into before the effective date of this Act.

SEC. 5305. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.

    Section 331B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981b) is amended--
        (1) by striking ``lower of (1) the'' and inserting the 
    following: ``lowest of--
        ``(1) the''; and
        (2) by striking ``original loan or (2) the'' and inserting the 
    following: ``original loan;
        ``(2) the rate being charged by the Secretary for loans, other 
    than guaranteed loans, of the same type at the time at which the 
    borrower applies for a deferral, consolidation, rescheduling, or 
    reamortization; or
        ``(3) the''.

SEC. 5306. ELIMINATION OF REQUIREMENT THAT SECRETARY REQUIRE COUNTY 
              COMMITTEES TO CERTIFY IN WRITING THAT CERTAIN LOAN 
              REVIEWS HAVE BEEN CONDUCTED.

    Section 333(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1983(2)) is amended to read as follows:
        ``(2) except with respect to a loan under section 306, 310B, or 
    314--
            ``(A) an annual review of the credit history and business 
        operation of the borrower; and
            ``(B) an annual review of the continued eligibility of the 
        borrower for the loan;''.

SEC. 5307. SIMPLIFIED LOAN GUARANTEE APPLICATION AVAILABLE FOR LOANS OF 
              GREATER AMOUNTS.

    Section 333A(g)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a(g)(1)) is amended by striking ``$50,000'' and 
inserting ``$125,000''.

SEC. 5308. INVENTORY PROPERTY.

    Section 335(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1985(c)) is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (B)--
                (i) in clause (i), by striking ``75 days'' and 
            inserting ``135 days''; and
                (ii) by adding at the end the following:
                ``(iv) Combining and dividing of property.--To the 
            maximum extent practicable, the Secretary shall maximize 
            the opportunity for beginning farmers and ranchers to 
            purchase real property acquired by the Secretary under this 
            title by combining or dividing inventory parcels of the 
            property in such manner as the Secretary determines to be 
            appropriate.''; and
            (B) in subparagraph (C)--
                (i) by striking ``75 days'' and inserting ``135 days''; 
            and
                (ii) by striking ``75-day period'' and inserting ``135-
            day period''; and
        (2) by striking paragraph (2) and inserting the following:
        ``(2) Previous lease.--In the case of real property acquired 
    before April 4, 1996, that the Secretary leased before April 4, 
    1996, not later than 60 days after the lease expires, the Secretary 
    shall offer to sell the property in accordance with paragraph 
    (1).''.

SEC. 5309. ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED 
              LENDERS PROGRAMS.

    Section 339 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1989) is amended by adding at the end the following:
    ``(e) Administration of Certified Lenders and Preferred Certified 
Lenders Programs.--The Secretary may administer the loan guarantee 
programs under subsections (c) and (d) through central offices 
established in States or in multi-State areas.''.

SEC. 5310. DEFINITIONS.

    (a) Qualified Beginning Farmer or Rancher.--Section 343(a)(11)(F) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1991(a)(11)(F)) is amended by striking ``25 percent'' and inserting 
``30 percent''.
    (b) Debt Forgiveness.--Section 343(a)(12)(B) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to 
read as follows:
            ``(B) Exceptions.--The term `debt forgiveness' does not 
        include--
                ``(i) consolidation, rescheduling, reamortization, or 
            deferral of a loan; or
                ``(ii) any write-down provided as part of a resolution 
            of a discrimination complaint against the Secretary.''.

SEC. 5311. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(1)) is amended to read as follows:
        ``(1) In general.--The Secretary may make or guarantee loans 
    under subtitles A and B from the Agricultural Credit Insurance Fund 
    provided for in section 309 for not more than $3,796,000,000 for 
    each of fiscal years 2003 through 2007, of which, for each fiscal 
    year--
            ``(A) $770,000,000 shall be for direct loans, of which--
                ``(i) $205,000,000 shall be for farm ownership loans 
            under subtitle A; and
                ``(ii) $565,000,000 shall be for operating loans under 
            subtitle B; and
            ``(B) $3,026,000,000 shall be for guaranteed loans, of 
        which--
                ``(i) $1,000,000,000 shall be for guarantees of farm 
            ownership loans under subtitle A; and
                ``(ii) $2,026,000,000 shall be for guarantees of 
            operating loans under subtitle B.''.

SEC. 5312. RESERVATION OF FUNDS FOR DIRECT OPERATING LOANS FOR 
              BEGINNING FARMERS AND RANCHERS.

    Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by 
striking ``2000 through 2002'' and inserting ``2003 through 2007''.

SEC. 5313. INTEREST RATE REDUCTION PROGRAM.

    Section 351 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1999) is amended--
        (1) in subsection (a)--
            (A) by striking ``Program.--'' and all that follows through 
        ``The Secretary'' and inserting ``Program.--The Secretary''; 
        and
            (B) by striking paragraph (2); and
        (2) in subsection (e), by striking paragraph (2) and inserting 
    the following:
        ``(2) Maximum amount of funds.--
            ``(A) In general.--The total amount of funds used by the 
        Secretary to carry out this section for a fiscal year shall not 
        exceed $750,000,000.
            ``(B) Beginning farmers and ranchers.--
                ``(i) In general.--The Secretary shall reserve not less 
            than 15 percent of the funds used by the Secretary under 
            subparagraph (A) to make payments for guaranteed loans made 
            to beginning farmers and ranchers.
                ``(ii) Duration of reservation of funds.--Funds 
            reserved for beginning farmers or ranchers under clause (i) 
            for a fiscal year shall be reserved only until March 1 of 
            the fiscal year.''.

SEC. 5314. REAMORTIZATION OF RECAPTURE PAYMENTS.

    Section 353(e)(7) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2001(e)(7)) is amended by adding at the end the 
following:
            ``(D) Reamortization.--
                ``(i) In general.--The Secretary may modify the 
            amortization of a recapture payment referred to in 
            subparagraph (A) of this paragraph on which a payment has 
            become delinquent by using loan service tools under section 
            343(b)(3) if--

                    ``(I) the default is due to circumstances beyond 
                the control of the borrower; and
                    ``(II) the borrower acted in good faith (as 
                determined by the Secretary) in attempting to repay the 
                recapture amount.

                ``(ii) Limitations.--

                    ``(I) Term of reamortization.--The term of a 
                reamortization under this subparagraph may not exceed 
                25 years from the date of the original amortization 
                agreement.
                    ``(II) No reduction or principal or unpaid interest 
                due.--A reamortization of a recapture payment under 
                this subparagraph may not provide for reducing the 
                outstanding principal or unpaid interest due on the 
                recapture payment.

SEC. 5315. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED 
              FARMERS AND RANCHERS.

    The last sentence of section 355(c)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(c)(2)) is amended to read as 
follows: ``Any funds reserved and allocated under this paragraph but 
not used within a State shall, to the extent necessary to satisfy 
pending applications under this title, be available for use by socially 
disadvantaged farmers and ranchers in other States, as determined by 
the Secretary, and any remaining funds shall be reallocated within the 
State.''.

SEC. 5316. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT.

    Section 359 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006a) is amended by striking subsection (f) and inserting the 
following:
    ``(f) Waivers.--
        ``(1) In general.--The Secretary may waive the requirements of 
    this section for an individual borrower if the Secretary determines 
    that the borrower demonstrates adequate knowledge in areas 
    described in this section.
        ``(2) Criteria.--The Secretary shall establish criteria 
    providing for the application of paragraph (1) consistently in all 
    counties nationwide.''.

SEC. 5317. TIMING OF LOAN ASSESSMENTS.

    Section 360(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2006b(a)) is amended by striking ``After an applicant is 
determined eligible for assistance under this title by the appropriate 
county committee established pursuant to section 332, the'' and 
inserting ``The''.

SEC. 5318. ANNUAL REVIEW OF BORROWERS.

    Section 360(d)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006b(d)(1)) is amended by striking ``biannual'' and 
inserting ``annual''.

SEC. 5319. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

    Section 373(b)(2)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008h(b)(2)(A)) is amended--
        (1) in clause (i), by striking ``or'';
        (2) in clause (ii), by striking the period and inserting ``; 
    or''; and
        (3) by adding at the end the following:
                ``(iii) received debt forgiveness on not more than 1 
            occasion resulting directly and primarily from a major 
            disaster or emergency designated by the President on or 
            after April 4, 1996, under the Robert T. Stafford Disaster 
            Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
            seq.).''.

SEC. 5320. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, 
              OR AREA COMMITTEES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008j) is amended by adding at the end the following:

``SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, 
              COUNTY, OR AREA COMMITTEES.

    ``The Secretary shall use personnel of a State, county or area 
committee established under section 8(b)(5) of the Soil Conservation 
and Domestic Allotment Act (16 U.S.C 590h(b)(5)) to make and service 
loans under this title to the extent the personnel have been trained to 
do so.''.

SEC. 5321. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE 
              FOR LOANS AND LOAN GUARANTEES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008j) is further amended by adding at the end the 
following:

``SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA 
              COMMITTEE FOR LOANS AND LOAN GUARANTEES.

    ``(a) In General.--The Secretary shall not prohibit an employee of 
a State, county or area committee established under section 8(b)(5) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) 
or an employee of the Department of Agriculture from obtaining a loan 
or loan guarantee under subtitle A, B or C of this title.
    ``(b) Approvals.--
        ``(1) County or area office.--In the case of a loan application 
    from an employee in a county or area office, the Farm Service 
    Agency State office shall be responsible for reviewing and 
    approving the application.
        ``(2) State office.--In the case of a loan application from an 
    employee of a State office, the Farm Service Agency national office 
    shall be responsible for reviewing and approving the 
    application.''.

                        Subtitle E--Farm Credit

SEC. 5401. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

    (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm Credit 
Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
        (1) by striking clause (iii); and
        (2) by redesignating clause (iv) as clause (iii).
    (b) Other System Banks; Associations.--Section 4.18A of the Farm 
Credit Act of 1971 (12 U.S.C. 2206a) is amended--
        (1) in subsection (a)(1), by striking ``3.1(11)(B)(iv)'' and 
    inserting ``3.1(11)(B)(iii)''; and
        (2) by striking subsection (c).

SEC. 5402. BANKS FOR COOPERATIVES.

    Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b)) 
is amended--
        (1) in paragraphs (1) and (2)(A)(i), by striking ``farm 
    supplies'' each place it appears and inserting ``agricultural 
    supplies''; and
        (2) by adding at the end the following:
        ``(4) Definition of agricultural supply.--In this subsection, 
    the term `agricultural supply' includes--
            ``(A) a farm supply; and
            ``(B)(i) agriculture-related processing equipment;
            ``(ii) agriculture-related machinery; and
            ``(iii) other capital goods related to the storage or 
        handling of agricultural commodities or products.''.

SEC. 5403. INSURANCE CORPORATION PREMIUMS.

    (a) Reduction in Premiums for GSE-Guaranteed Loans.--
        (1) In general.--Section 5.55 of the Farm Credit Act of 1971 
    (12 U.S.C. 2277a-4) is amended--
            (A) in subsection (a)--
                (i) in paragraph (1)--

                    (I) in subparagraph (A), by striking ``government-
                guaranteed loans provided for in subparagraph (C)'' and 
                inserting ``loans provided for in subparagraphs (C) and 
                (D)'';
                    (II) in subparagraph (B), by striking ``and'' at 
                the end;
                    (III) in subparagraph (C), by striking the period 
                at the end and inserting ``; and''; and
                    (IV) by adding at the end the following:

            ``(D) the annual average principal outstanding for such 
        year on the guaranteed portions of Government Sponsored 
        Enterprise-guaranteed loans made by the bank that are in 
        accrual status, multiplied by a factor, not to exceed 0.0015, 
        determined by the Corporation at the sole discretion of the 
        Corporation.''; and
                (ii) by adding at the end the following:
        ``(4) Definition of government sponsored enterprise-guaranteed 
    loan.--In this section and sections 1.12(b) and 5.56(a), the term 
    `Government Sponsored Enterprise-guaranteed loan' means a loan or 
    credit, or portion of a loan or credit, that is guaranteed by an 
    entity that is chartered by Congress to serve a public purpose and 
    the debt obligations of which are not explicitly guaranteed by the 
    United States, including the Federal National Mortgage Association, 
    the Federal Home Loan Mortgage Corporation, the Federal Home Loan 
    Bank System, and the Federal Agricultural Mortgage Corporation, but 
    not including any other institution of the Farm Credit System.''; 
    and
            (B) in subsection (e)(4)(B), by striking ``government-
        guaranteed loans described in subsection (a)(1)(C)'' and 
        inserting ``loans described in subparagraph (C) or (D) of 
        subsection (a)(1)''.
        (2) Conforming amendments.--
            (A) Section 1.12(b) of the Farm Credit Act of 1971 (12 
        U.S.C. 2020(b)) is amended--
                (i) in paragraph (1), by inserting ``and Government 
            Sponsored Enterprise-guaranteed loans (as defined in 
            section 5.55(a)(4)) provided for in paragraph (4)'' after 
            ``government-guaranteed loans (as defined in section 
            5.55(a)(3)) provided for in paragraph (3)'';
                (ii) in paragraph (2), by striking ``and'' at the end;
                (iii) in paragraph (3), by striking the period at the 
            end and inserting ``; and''; and
                (iv) by adding at the end the following:
        ``(4) the annual average principal outstanding for such year on 
    the guaranteed portions of Government Sponsored Enterprise-
    guaranteed loans (as so defined) made by the association, or by the 
    other financing institution and funded by or discounted with the 
    Farm Credit Bank, that are in accrual status, multiplied by a 
    factor, not to exceed 0.0015, determined by the Corporation for the 
    purpose of setting the premium for such guaranteed portions of 
    loans under section 5.55(a)(1)(D).''.
            (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2277a-5(a)) is amended--
                (i) in paragraph (1), by inserting ``and Government 
            Sponsored Enterprise-guaranteed loans (as defined in 
            section 5.55(a)(4))'' after ``government-guaranteed 
            loans'';
                (ii) by redesignating paragraphs (4) and (5) as 
            paragraphs (5) and (6), respectively; and
                (iii) by inserting after paragraph (3) the following:
        ``(4) the annual average principal outstanding on the 
    guaranteed portions of Government Sponsored Enterprise-guaranteed 
    loans (as defined in section 5.55(a)(4)) that are in accrual 
    status;''.
    (b) Applicability.--The amendments made by this section shall apply 
with respect to determinations of premiums for calendar year 2002 and 
for any succeeding calendar year, and to certified statements with 
respect to such premiums.

                     Subtitle F--General Provisions

SEC. 5501. TECHNICAL AMENDMENTS.

    (a) Section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)) is amended by striking ``Disaster Relief and 
Emergency Assistance Act'' each place it appears and inserting ``Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.)''.
    (b) Section 336(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1986(b)) is amended in the second sentence by striking 
``provided for in section 332 of this title''.
    (c) Section 359(c)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking 
``established pursuant to section 332,''.

                      TITLE VI--RURAL DEVELOPMENT
        Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. ELIGIBILITY OF RURAL EMPOWERMENT ZONES AND RURAL ENTERPRISE 
              COMMUNITIES FOR DIRECT AND GUARANTEED LOANS FOR ESSENTIAL 
              COMMUNITY FACILITIES.

    Section 306(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(1)) is amended by inserting after the first 
sentence the following: ``The Secretary may also make or insure loans 
to communities that have been designated as rural empowerment zones or 
rural enterprise communities pursuant to part I of subchapter U of 
chapter 1 of the Internal Revenue Code of 1986, or as rural enterprise 
communities pursuant to section 766 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681, 2681-37), 
to provide for the installation or improvement of essential community 
facilities including necessary related equipment, and to furnish 
financial assistance or other aid in planning projects for such 
purposes.''.

SEC. 6002. WATER OR WASTE DISPOSAL GRANTS.

    Section 306(a)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(2)) is amended--
        (1) by striking ``(2) The'' and inserting the following:
        ``(2) Water, waste disposal, and wastewater facility grants.--
            ``(A) Authority.--
                ``(i) In general.--The'';
        (2) by striking ``aggregating not to exceed $590,000,000 in any 
    fiscal year'';
        (3) by striking ``The amount'' and inserting the following:
                ``(ii) Amount.--The amount'';
        (4) by striking ``paragraph'' and inserting ``subparagraph'';
        (5) by striking ``The Secretary shall'' and inserting the 
    following:
                ``(iii) Grant rate.--The Secretary shall''; and
        (6) by adding at the end the following:
            ``(B) Revolving funds for financing water and wastewater 
        projects.--
                ``(i) In general.--The Secretary may make grants to 
            qualified private, nonprofit entities to capitalize 
            revolving funds for the purpose of providing financing to 
            eligible entities for--

                    ``(I) predevelopment costs associated with proposed 
                water and wastewater projects or with existing water 
                and wastewater systems; and
                    ``(II) short-term costs incurred for replacement 
                equipment, small-scale extension services, or other 
                small capital projects that are not part of the regular 
                operations and maintenance activities of existing water 
                and wastewater systems.

                ``(ii) Eligible entities.--To be eligible to obtain 
            financing from a revolving fund under clause (i), an 
            eligible entity must be eligible to obtain a loan, loan 
            guarantee, or grant under paragraph (1) or this paragraph.
                ``(iii) Maximum amount of financing.--The amount of 
            financing made to an eligible entity under this 
            subparagraph shall not exceed--

                    ``(I) $100,000 for costs described in clause 
                (i)(I); and
                    ``(II) $100,000 for costs described in clause 
                (i)(II).

                ``(iv) Term.--The term of financing provided to an 
            eligible entity under this subparagraph shall not exceed 10 
            years.
                ``(v) Administration.--The Secretary shall limit the 
            amount of grant funds that may be used by a grant recipient 
            for administrative costs incurred under this subparagraph.
                ``(vi) Annual report.--A nonprofit entity receiving a 
            grant under this subparagraph shall submit to the Secretary 
            an annual report that describes the number and size of 
            communities served and the type of financing provided.
                ``(vii) Authorization of appropriations.--There are 
            authorized to be appropriated to carry out this 
            subparagraph $30,000,000 for each of fiscal years 2002 
            through 2007.''.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended--
        (1) by striking ``$7,500,000'' and inserting ``$15,000,000''; 
    and
        (2) by striking ``2002'' and inserting ``2007''.

SEC. 6004. CHILD DAY CARE FACILITIES.

    Section 306(a)(19) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end the 
following:
            ``(C) Reservation of funds for child day care facilities.--
                ``(i) In general.--For each fiscal year, not less than 
            10 percent of the funds made available to carry out this 
            paragraph shall be reserved for grants to pay the Federal 
            share of the cost of developing and constructing day care 
            facilities for children in rural areas.
                ``(ii) Release.--Funds reserved under clause (i) for a 
            fiscal year shall be reserved only until April 1 of the 
            fiscal year.''.

SEC. 6005. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
        ``(22) Rural water and wastewater circuit rider program.--
            ``(A) In general.--The Secretary shall establish a national 
        rural water and wastewater circuit rider program that is based 
        on the rural water circuit rider program of the National Rural 
        Water Association that (as of the date of enactment of this 
        paragraph) receives funding from the Secretary, acting through 
        the Rural Utilities Service.
            ``(B) Relationship to existing program.--The program 
        established under subparagraph (A) shall not affect the 
        authority of the Secretary to carry out the circuit rider 
        program for which funds are made available under the heading 
        ``rural community advancement program'' in title III of the 
        Agriculture, Rural Development, Food and Drug Administration, 
        and Related Agencies Appropriations Act, 2002 (115 Stat. 719).
            ``(C) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this paragraph $15,000,000 for 
        fiscal year 2003 and each fiscal year thereafter.''.

SEC. 6006. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 6005) is amended by adding at 
the end the following:
        ``(23) Multijurisdictional regional planning organizations.--
            ``(A) Grants.--The Secretary shall provide grants to 
        multijurisdictional regional planning and development 
        organizations to pay the Federal share of the cost of providing 
        assistance to local governments to improve the infrastructure, 
        services, and business development capabilities of local 
        governments and local economic development organizations.
            ``(B) Priority.--In determining which organizations will 
        receive a grant under this paragraph, the Secretary shall give 
        priority to an organization that--
                ``(i) serves a rural area that, during the most recent 
            5-year period--

                    ``(I) had a net out-migration of inhabitants, or 
                other population loss, from the rural area that equals 
                or exceeds 5 percent of the population of the rural 
                area; or
                    ``(II) had a median household income that is less 
                than the nonmetropolitan median household income of the 
                applicable State; and

                ``(ii) has a history of providing substantive 
            assistance to local governments and economic development 
            organizations.
            ``(C) Federal share.--A grant provided under this paragraph 
        shall be for not more than 75 percent of the cost of providing 
        assistance described in subparagraph (A).
            ``(D) Maximum amount of grants.--The amount of a grant 
        provided to an organization under this paragraph shall not 
        exceed $100,000.
            ``(E) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this paragraph $30,000,000 for 
        each of fiscal years 2003 through 2007.''.

SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS.

    (a) Loan Guarantees for Water, Wastewater, and Essential Community 
Facilities Loans.--Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1925(a)) (as amended by section 6006) is 
amended by adding at the end the following:
        ``(24) Loan guarantees for water, wastewater, and essential 
    community facilities loans.--
            ``(A) In general.--The Secretary may guarantee a loan made 
        to finance a community facility or water or waste facility 
        project in a rural area, including a loan financed by the net 
        proceeds of a bond described in section 142(a) of the Internal 
        Revenue Code of 1986.
            ``(B) Requirements.--To be eligible for a loan guarantee 
        under subparagraph (A), an individual or entity offering to 
        purchase the loan shall demonstrate to the Secretary that the 
        person has--
                ``(i) the capabilities and resources necessary to 
            service the loan in a manner that ensures the continued 
            performance of the loan, as determined by the Secretary; 
            and
                ``(ii) the ability to generate capital to provide 
            borrowers of the loan with the additional credit necessary 
            to properly service the loan.''.
    (b) Loan Guarantees for Certain Loans.--Section 310B of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended 
by adding at the end the following:
    ``(h) Loan Guarantees for Certain Loans.--The Secretary may 
guarantee loans made under subsection (a) to finance the issuance of 
bonds for the projects described in section 306(a)(24).''.

SEC. 6008. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
              FACILITIES.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 6007(a)) is amended by adding 
at the end the following:
        ``(25) Tribal college and university essential community 
    facilities.--
            ``(A) In general.--The Secretary may make grants to tribal 
        colleges and universities (as defined in section 316 of the 
        Higher Education Act of 1965 (20 U.S.C. 1059c)) to provide the 
        Federal share of the cost of developing specific tribal college 
        or university essential community facilities in rural areas.
            ``(B) Federal share.--
                ``(i) In general.--Except as provided in clauses (ii) 
            and (iii), the Secretary shall, by regulation, establish 
            the maximum percentage of the cost of the facility that may 
            be covered by a grant under this paragraph.
                ``(ii) Maximum amount.--The amount of a grant provided 
            under this paragraph for a facility shall not exceed 75 
            percent of the cost of developing the facility.
                ``(iii) Graduated scale.--The Secretary shall provide 
            for a graduated scale of the percentages of the cost 
            covered by a grant made under this paragraph that provides 
            higher percentages for facilities in communities that have 
            lower community population and income levels, as determined 
            by the Secretary.
            ``(C) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this paragraph $10,000,000 for 
        each of fiscal years 2003 through 2007.''.

SEC. 6009. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
              PROGRAM.

    Section 306A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926a) is amended--
        (1) in the section heading, by inserting ``and imminent'' after 
    ``emergency'';
        (2) in subsection (a)--
            (A) in paragraph (1), by inserting ``, or when such a 
        decline is imminent'' before the semicolon at the end; and
            (B) in paragraph (2)--
                (i) in subparagraph (A), by striking ``acute'' and 
            inserting ``acute, or imminent,''; and
                (ii) in subparagraph (B), by striking ``decline'' and 
            inserting ``decline, or imminent decline,'';
        (3) in subsection (c)(2), by striking ``occurred'' and 
    inserting ``occurred, or will occur,'';
        (4) in subsection (d), by striking paragraph (1) and inserting 
    the following:
        ``(1) In general.--Grants made under this section may be used--
            ``(A) for waterline extensions from existing systems, 
        laying of new waterlines, repairs, significant maintenance, 
        digging of new wells, equipment replacement, and hook and tap 
        fees;
            ``(B) for any other appropriate purpose associated with 
        developing sources of, treating, storing, or distributing 
        water;
            ``(C) to assist communities in complying with the 
        requirements of the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C. 
        300f et seq.); and
            ``(D) to provide potable water to communities through other 
        means.'';
        (5) in subsection (f)(2), by striking ``$75,000'' and inserting 
    ``$150,000'';
        (6) in subsection (h)--
            (A) in the second sentence of paragraph (1), by striking 
        ``decline'' and inserting ``decline, or imminent decline,''; 
        and
            (B) by striking paragraph (2) and inserting the following:
        ``(2) Timing of review of applications.--
            ``(A) Simplified application.--The application process 
        developed by the Secretary under paragraph (1) shall include a 
        simplified application form that will permit expedited 
        consideration of an application for a grant filed under this 
        section.
            ``(B) Priority review.--In processing applications for any 
        water or waste grant or loan authorized under this title, the 
        Secretary shall afford priority processing to an application 
        for a grant under this section to the extent funds will be 
        available for an award on the application at the conclusion of 
        priority processing.
            ``(C) Timing.--The Secretary shall, to the maximum extent 
        practicable, review and act on an application under this 
        section within 60 days after the date on which the application 
        is submitted to the Secretary.''; and
        (7) by striking subsection (i) and inserting the following:
    ``(i) Funding.--
        ``(1) Reservation.--
            ``(A) In general.--For each fiscal year, not less than 3 
        nor more than 5 percent of the total amount made available to 
        carry out section 306(a)(2) for the fiscal year shall be 
        reserved for grants under this section.
            ``(B) Release.--Funds reserved under subparagraph (A) for a 
        fiscal year shall be reserved only until July 1 of the fiscal 
        year.
        ``(2) Authorization of appropriations.--In addition to funds 
    made available under paragraph (1), there is authorized to be 
    appropriated to carry out this section $35,000,000 for each of 
    fiscal years 2003 through 2007.''.

SEC. 6010. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN TRIBES.

    Section 306C of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926c) is amended by striking subsection (e) and inserting the 
following:
    ``(e) Authorization of Appropriations.--
        ``(1) In general.--Subject to paragraph (2), there are 
    authorized to be appropriated--
            ``(A) for grants under this section, $30,000,000 for each 
        fiscal year;
            ``(B) for loans under this section, $30,000,000 for each 
        fiscal year; and
            ``(C) in addition to grants provided under subparagraph 
        (A), for grants under this section to benefit Indian tribes (as 
        defined in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b)), $20,000,000 for 
        each fiscal year.
        ``(2) Exception.--An entity eligible to receive funding through 
    a grant made under section 306D shall not be eligible for a grant 
    from funds made available under paragraph (1)(C).''.

SEC. 6011. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
              ALASKA.

    Section 306D(d)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926d(d)(1)) is amended by striking ``and 2002'' and 
inserting ``through 2007''.

SEC. 6012. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    (a) In General.--The Consolidated Farm and Rural Development Act is 
amended by inserting after section 306D (7 U.S.C. 1926d) the following:

``SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    ``(a) Definition of Eligible Individual.--In this section, the term 
`eligible individual' means an individual who is a member of a 
household the members of which have a combined income (for the most 
recent 12-month period for which the information is available) that is 
not more than 100 percent of the median nonmetropolitan household 
income for the State or territory in which the individual resides, 
according to the most recent decennial census of the United States.
    ``(b) Grants.--
        ``(1) In general.--The Secretary may make grants to private 
    nonprofit organizations for the purpose of providing loans to 
    eligible individuals for the construction, refurbishing, and 
    servicing of individual household water well systems in rural areas 
    that are or will be owned by the eligible individuals.
        ``(2) Terms of loans.--A loan made with grant funds under this 
    section--
            ``(A) shall have an interest rate of 1 percent;
            ``(B) shall have a term not to exceed 20 years; and
            ``(C) shall not exceed $8,000 for each water well system 
        described in paragraph (1).
        ``(3) Administrative expenses.--A recipient of a grant made 
    under this section may use grant funds to pay administrative 
    expenses associated with providing the assistance described in 
    paragraph (1), as determined by the Secretary.
    ``(c) Priority in Awarding Grants.--In awarding grants under this 
section, the Secretary shall give priority to an applicant that has 
substantial expertise and experience in promoting the safe and 
productive use of individually-owned household water well systems and 
ground water.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2003 through 2007.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2002.

SEC. 6013. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.

    Section 310B(a)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(a)(3)) is amended by inserting ``and other renewable 
energy systems (including wind energy systems and anaerobic digestors 
for the purpose of energy generation)'' after ``solar energy systems''.

SEC. 6014. RURAL BUSINESS ENTERPRISE GRANTS.

    Section 310B(c)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(c)(1)) is amended--
        (1) by striking ``(1) In General.--The Secretary'' and 
    inserting the following:
        ``(1) Grants.--
            ``(A) In general.--The Secretary''; and
        (2) by adding at the end the following:
            ``(B) Small and emerging private business enterprises.--
                ``(i) In general.--For the purpose of subparagraph (A), 
            a small and emerging private business enterprise shall 
            include (regardless of the number of employees or operating 
            capital of the enterprise) an eligible nonprofit entity, or 
            other tax-exempt organization, with a principal office in 
            an area that is located--

                    ``(I) on land of an existing or former Native 
                American reservation; and
                    ``(II) in a city, town, or unincorporated area that 
                has a population of not more than 5,000 inhabitants.

                ``(ii) Use of grant.--An eligible nonprofit entity, or 
            other tax exempt organization, described in clause (i) may 
            use assistance provided under this paragraph to create, 
            expand, or operate value-added processing in an area 
            described in clause (i) in connection with production 
            agriculture.
                ``(iii) Priority.--In making grants under this 
            paragraph, the Secretary shall give priority to grants that 
            will be used to provide assistance to eligible nonprofit 
            entities and other tax exempt organizations described in 
            clause (i).''.

SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    Section 310B(e) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(e)) is amended--
        (1) in paragraph (5)(F), before the period at the end the 
    following: ``, except that the Secretary shall not require non-
    Federal financial support in an amount that is greater than 5 
    percent in the case of a 1994 institution (as defined in section 
    532 of the Equity in Educational Land-Grant Status Act of 1994 (7 
    U.S.C. 301 note; Public Law 103-382))''; and
        (2) in paragraph (9), by striking ``2002'' and inserting 
    ``2007''.

SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(f)) is amended by adding at the end the following:
        ``(3) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection $5,000,000 for each of 
    fiscal years 2002 through 2007.''.

SEC. 6017. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by striking subsection (g) and inserting the 
following:
    ``(g) Business and Industry Direct and Guaranteed Loans.--
        ``(1) Definition of business and industry loan.--In this 
    subsection, the term `business and industry loan' means a business 
    and industry direct or guaranteed loan that is made or guaranteed 
    by the Secretary under subsection (a)(1).
        ``(2) Loan guarantees for the purchase of cooperative stock.--
            ``(A) In general.--The Secretary may guarantee a business 
        and industry loan to individual farmers or ranchers for the 
        purpose of purchasing capital stock of a farmer or rancher 
        cooperative established for the purpose of processing an 
        agricultural commodity.
            ``(B) Processing contracts during initial period.--A 
        cooperative described in subparagraph (A) for which a farmer or 
        rancher receives a guarantee to purchase stock under 
        subparagraph (A) may contract for services to process 
        agricultural commodities, or otherwise process value-added 
        agricultural products, during the 5-year period beginning on 
        the date of the startup of the cooperative in order to provide 
        adequate time for the planning and construction of the 
        processing facility of the cooperative.
            ``(C) Financial information.--Financial information 
        required by the Secretary from a farmer or rancher as a 
        condition of making a business and industry loan guarantee 
        under this paragraph shall be provided in the manner generally 
        required by commercial agricultural lenders in the area.
        ``(3) Loans to cooperatives.--
            ``(A) In general.--The Secretary may make or guarantee a 
        business and industry loan to a cooperative organization that 
        is headquartered in a metropolitan area if the loan is used for 
        a project or venture described in subsection (a) that is 
        located in a rural area or a loan guarantee that meets the 
        requirements of paragraph (6).
            ``(B) Refinancing.--A cooperative organization that is 
        eligible for a business and industry loan shall be eligible to 
        refinance an existing business and industry loan with a lender 
        if--
                ``(i) the cooperative organization--

                    ``(I) is current and performing with respect to the 
                existing loan; and
                    ``(II) is not, and has not been, in payment 
                default, or the collateral of which has not been 
                converted, with respect to the existing loan; and

                ``(ii) there is adequate security or full collateral 
            for the refinanced loan.
        ``(4) Loan appraisals.--The Secretary may require that any 
    appraisal made in connection with a business and industry loan be 
    conducted by a specialized appraiser that uses standards that are 
    similar to standards used for similar purposes in the private 
    sector, as determined by the Secretary.
        ``(5) Fees.--The Secretary may assess a 1-time fee for any 
    guaranteed business and industry loan in an amount that does not 
    exceed 2 percent of the guaranteed principal portion of the loan.
        ``(6) Loan guarantees in nonrural areas.--
            ``(A) In general.--The Secretary may guarantee a business 
        and industry loan to a cooperative organization for a facility 
        that is not located in a rural area if--
                ``(i) the primary purpose of the loan guarantee is for 
            a facility to provide value-added processing for 
            agricultural producers that are located within 80 miles of 
            the facility;
                ``(ii) the applicant demonstrates to the Secretary that 
            the primary benefit of the loan guarantee will be to 
            provide employment for residents of a rural area; and
                ``(iii) the total amount of business and industry loans 
            guaranteed for a fiscal year under this paragraph does not 
            exceed 10 percent of the business and industry loans 
            guaranteed for the fiscal year under subsection (a)(1).
            ``(B) Principal amounts.--The principal amount of a 
        business and industry loan guaranteed under this paragraph may 
        not exceed $25,000,000.
        ``(7) Intangible assets.--In determining whether a cooperative 
    organization is eligible for a guaranteed business and industry 
    loan, the Secretary may consider the market value of a properly 
    appraised brand name, patent, or trademark of the cooperative.
        ``(8) Limitations on loan guarantees for cooperative 
    organizations.--
            ``(A) Principal amount.--
                ``(i) In general.--Subject to clause (ii), the 
            principal amount of a business and industry loan made to a 
            cooperative organization and guaranteed under this 
            subsection shall not exceed $40,000,000.
                ``(ii) Use.--To be eligible for a guarantee under this 
            subsection for a business and industry loan made to a 
            cooperative organization, the principal amount of the any 
            such loan in excess of $25,000,000 shall be used to carry 
            out a project--

                    ``(I) in a rural area; and
                    ``(II) that provides for the value-added processing 
                of agricultural commodities.

            ``(B) Applications.--If a cooperative organization submits 
        an application for a guarantee under this subsection of a 
        business and industry loan with a principal amount that is in 
        excess of $25,000,000, the Secretary--
                ``(i) shall review and, if appropriate, approve the 
            application; and
                ``(ii) may not delegate the approval authority.
            ``(C) Maximum amount.--The total amount of business and 
        industry loans made to cooperative organizations and guaranteed 
        for a fiscal year under this subsection with principal amounts 
        that are in excess of $25,000,000 may not exceed 10 percent of 
        the business and industry loans guaranteed for the fiscal year 
        under subsection (a)(1).''.

SEC. 6018. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
              PURPOSES.

    Subtitle A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) (as amended by section 5006) is amended by adding 
at the end the following:

``SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
              PURPOSES.

    ``If, after making a loan or a grant described in section 381E(d), 
the Secretary determines that the circumstances under which the loan or 
grant was made have sufficiently changed to make the project or 
activity for which the loan or grant was made available no longer 
appropriate, the Secretary may allow the loan borrower or grant 
recipient to use property (real and personal) purchased or improved 
with the loan or grant funds, or proceeds from the sale of property 
(real and personal) purchased with such funds, for another project or 
activity that (as determined by the Secretary)--
        ``(1) will be carried out in the same area as the original 
    project or activity;
        ``(2) meets the criteria for a loan or a grant described in 
    section 381E(d); and
        ``(3) satisfies such additional requirements as are established 
    by the Secretary.''.

SEC. 6019. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

    Section 333A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983a) (as amended by section 5307) is amended by striking 
subsection (g) and inserting the following:
    ``(g) Simplified Application Forms for Loan Guarantees.--
        ``(1) In general.--The Secretary shall provide to lenders a 
    short, simplified application form for guarantees under this title 
    of--
            ``(A) farmer program loans the principal amount of which is 
        $125,000 or less; and
            ``(B) business and industry guaranteed loans under section 
        310B(a)(1) the principal amount of which is--
                ``(i) in the case of a loan guarantee made during 
            fiscal year 2002 or 2003, $400,000 or less; and
                ``(ii) in the case of a loan guarantee made during any 
            subsequent fiscal year--

                    ``(I) $400,000 or less; or
                    ``(II) if the Secretary determines that there is 
                not a significant increased risk of a default on the 
                loan, $600,000 or less.

        ``(2) Water and waste disposal grants and loans.--The Secretary 
    shall develop an application process that accelerates, to the 
    maximum extent practicable, the processing of applications for 
    water and waste disposal grants or direct or guaranteed loans under 
    paragraph (1) or (2) of section 306(a) the grant award amount or 
    principal loan amount, respectively, of which is $300,000 or less.
        ``(3) Administration.--In developing an application under this 
    subsection, the Secretary shall--
            ``(A) consult with commercial and cooperative lenders; and
            ``(B) ensure that--
                ``(i) the form can be completed manually or 
            electronically, at the option of the lender;
                ``(ii) the form minimizes the documentation required to 
            accompany the form;
                ``(iii) the cost of completing and processing the form 
            is minimal; and
                ``(iv) the form can be completed and processed in an 
            expeditious manner.''.

SEC. 6020. DEFINITION OF RURAL AND RURAL AREA.

    (a) In General.--Section 343(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)) is amended by adding at the end the 
following:
        ``(13) Rural and rural area.--
            ``(A) In general.--Except as otherwise provided in this 
        paragraph, the terms `rural' and `rural area' mean any area 
        other than--
                ``(i) a city or town that has a population of greater 
            than 50,000 inhabitants; and
                ``(ii) the urbanized area contiguous and adjacent to 
            such a city or town.
            ``(B) Water and waste disposal grants and direct and 
        guaranteed loans.--For the purpose of water and waste disposal 
        grants and direct and guaranteed loans provided under 
        paragraphs (1), (2), and (24) of section 306(a), the terms 
        `rural' and `rural area' mean a city, town, or unincorporated 
        area that has a population of no more than 10,000 inhabitants.
            ``(C) Community facility loans and grants.--For the purpose 
        of community facility direct and guaranteed loans and grants 
        under paragraphs (1), (19), (20), (21), and (24) of section 
        306(a), the terms `rural' and `rural area' mean a city, town, 
        or unincorporated area that has a population of not more than 
        20,000 inhabitants.
            ``(D) Multijurisdictional regional planning organizations; 
        national rural development partnership.--In sections 306(a)(23) 
        and 378, the term `rural area' means--
                ``(i) all the territory of a State that is not within 
            the boundary of any standard metropolitan statistical area; 
            and
                ``(ii) all territory within any standard metropolitan 
            statistical area within a census tract having a population 
            density of less than 20 persons per square mile, as 
            determined by the Secretary according to the most recent 
            census of the United States as of any date.
            ``(E) Rural business investment program.--In subtitle H, 
        the term `rural area' means an area that is located--
                ``(i) outside a standard metropolitan statistical area; 
            or
                ``(ii) within a community that has a population of 
            50,000 inhabitants or less.''.
    (b) Conforming Amendments.--
        (1) Section 306(a) of the Consolidated Farm and Rural 
    Development Act (7 U.S.C. 1926(a)) is amended by striking paragraph 
    (7).
        (2) Section 381A of the Consolidated Farm and Rural Development 
    Act (7 U.S.C. 2009) is amended--
            (A) by striking paragraph (1); and
            (B) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
        (3) Section 735 of the Agriculture, Rural Development, Food and 
    Drug Administration, and Related Agencies Appropriations Act, 1999 
    (112 Stat. 2681-29) is repealed.

SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 5321) is amended by adding 
at the end the following:

``SEC. 378. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ``(a) Definitions.--In this section:
        ``(1) Agency with rural responsibilities.--The term `agency 
    with rural responsibilities' means any executive agency (as defined 
    in section 105 of title 5, United States Code) that implements a 
    Federal law, or administers a program, targeted at or having a 
    significant impact on rural areas.
        ``(2) Coordinating committee.--The term `Coordinating 
    Committee' means the National Rural Development Coordinating 
    Committee established by subsection (c).
        ``(3) Partnership.--The term `Partnership' means the National 
    Rural Development Partnership continued by subsection (b).
        ``(4) State rural development council.--The term `State rural 
    development council' means a State rural development council that 
    meets the requirements of subsection (d).
    ``(b) Partnership.--
        ``(1) In general.--The Secretary shall continue the National 
    Rural Development Partnership composed of--
            ``(A) the Coordinating Committee; and
            ``(B) State rural development councils.
        ``(2) Purposes.--The purposes of the Partnership are to empower 
    and build the capacity of States and rural communities to design 
    flexible and innovative responses to their own special rural 
    development needs, with local determinations of progress and 
    selection of projects and activities.
        ``(3) Governing panel.--
            ``(A) In general.--A panel consisting of representatives of 
        the Coordinating Committee and State rural development councils 
        shall be established to lead and coordinate the strategic 
        operation, policies, and practices of the Partnership.
            ``(B) Annual reports.--In conjunction with the Coordinating 
        Committee and State rural development councils, the panel shall 
        prepare and submit to Congress an annual report on the 
        activities of the Partnership.
        ``(4) Role of federal government.--The role of the Federal 
    Government in the Partnership may be that of a partner and 
    facilitator, with Federal agencies authorized--
            ``(A) to cooperate with States to implement the 
        Partnership;
            ``(B) to provide States with the technical and 
        administrative support necessary to plan and implement tailored 
        rural development strategies to meet local needs;
            ``(C) to ensure that the head of each agency with rural 
        responsibilities designates a senior-level agency official to 
        represent the agency on the Coordinating Committee and directs 
        appropriate field staff to participate fully with the State 
        rural development council within the jurisdiction of the field 
        staff; and
            ``(D) to enter into cooperative agreements with, and to 
        provide grants and other assistance to, the Coordinating 
        Committee and State rural development councils.
    ``(c) National Rural Development Coordinating Committee.--
        ``(1) Establishment.--The Secretary shall establish a National 
    Rural Development Coordinating Committee within the Department of 
    Agriculture.
        ``(2) Composition.--The Coordinating Committee shall be 
    composed of--
            ``(A) 1 representative of each agency with rural 
        responsibilities; and
            ``(B) representatives, approved by the Secretary, of--
                ``(i) national associations of State, regional, local, 
            and tribal governments and intergovernmental and 
            multijurisdictional agencies and organizations;
                ``(ii) national public interest groups;
                ``(iii) other national nonprofit organizations that 
            elect to participate in the activities of the Coordinating 
            Committee; and
                ``(iv) the private sector.
        ``(3) Duties.--The Coordinating Committee shall--
            ``(A) support the work of the State rural development 
        councils;
            ``(B) facilitate coordination of rural development 
        policies, programs, and activities among Federal agencies and 
        with those of State, local, and tribal governments, the private 
        sector, and nonprofit organizations;
            ``(C) review and comment on policies, regulations, and 
        proposed legislation that affect or would affect rural areas 
        and gather and provide related information;
            ``(D) develop and facilitate strategies to reduce or 
        eliminate administrative and regulatory impediments; and
            ``(E) require each State rural development council 
        receiving funds under this section to submit an annual report 
        on the use of the funds, including a description of strategic 
        plans, goals, performance measures, and outcomes for the State 
        rural development council of the State.
        ``(4) Federal participation in coordinating committee.--
            ``(A) In general.--A Federal employee shall fully 
        participate in the governance and operations of the 
        Coordinating Committee, including activities related to grants, 
        contracts, and other agreements, in accordance with this 
        section.
            ``(B) Conflicts.--Participation by a Federal employee in 
        the Coordinating Committee in accordance with this paragraph 
        shall not constitute a violation of section 205 or 208 of title 
        18, United States Code.
        ``(5) Administrative support.--The Secretary may provide such 
    administrative support for the Coordinating Committee as the 
    Secretary determines is necessary to carry out the duties of the 
    Coordinating Committee.
        ``(6) Procedures.--The Secretary may prescribe such 
    regulations, bylaws, or other procedures as are necessary for the 
    operation of the Coordinating Committee.
    ``(d) State Rural Development Councils.--
        ``(1) Establishment.--Notwithstanding chapter 63 of title 31, 
    United States Code, each State may elect to participate in the 
    Partnership by entering into an agreement with the Secretary to 
    recognize a State rural development council.
        ``(2) Composition.--A State rural development council shall--
            ``(A) be composed of representatives of Federal, State, 
        local, and tribal governments, nonprofit organizations, 
        regional organizations, the private sector, and other entities 
        committed to rural advancement; and
            ``(B) have a nonpartisan and nondiscriminatory membership 
        that--
                ``(i) is broad and representative of the economic, 
            social, and political diversity of the State; and
                ``(ii) shall be responsible for the governance and 
            operations of the State rural development council.
        ``(3) Duties.--A State rural development council shall--
            ``(A) facilitate collaboration among Federal, State, local, 
        and tribal governments and the private and nonprofit sectors in 
        the planning and implementation of programs and policies that 
        have an impact on rural areas of the State;
            ``(B) monitor, report, and comment on policies and programs 
        that address, or fail to address, the needs of the rural areas 
        of the State;
            ``(C) as part of the Partnership, in conjunction with the 
        Coordinating Committee, facilitate the development of 
        strategies to reduce or eliminate conflicting or duplicative 
        administrative or regulatory requirements of Federal, State, 
        local, and tribal governments; and
            ``(D)(i) provide to the Coordinating Committee an annual 
        plan with goals and performance measures; and
            ``(ii) submit to the Coordinating Committee an annual 
        report on the progress of the State rural development council 
        in meeting the goals and measures.
        ``(4) Federal participation in state rural development 
    councils.--
            ``(A) In general.--A State Director for Rural Development 
        of the Department of Agriculture, other employees of the 
        Department, and employees of other Federal agencies with rural 
        responsibilities shall fully participate as voting members in 
        the governance and operations of State rural development 
        councils (including activities related to grants, contracts, 
        and other agreements in accordance with this section) on an 
        equal basis with other members of the State rural development 
        councils.
            ``(B) Conflicts.--Participation by a Federal employee in a 
        State rural development council in accordance with this 
        paragraph shall not constitute a violation of section 205 or 
        208 of title 18, United States Code.
    ``(e) Administrative Support of the Partnership.--
        ``(1) Detail of employees.--
            ``(A) In general.--In order to provide experience in 
        intergovernmental collaboration, the head of an agency with 
        rural responsibilities that elects to participate in the 
        Partnership may, and is encouraged to, detail to the Secretary 
        for the support of the Partnership 1 or more employees of the 
        agency with rural responsibilities without reimbursement for a 
        period of up to 1 year.
            ``(B) Civil service status.--The detail shall be without 
        interruption or loss of civil service status or privilege.
        ``(2) Additional support.--The Secretary may provide for any 
    additional support staff to the Partnership as the Secretary 
    determines to be necessary to carry out the duties of the 
    Partnership.
        ``(3) Intermediaries.--The Secretary may enter into a contract 
    with a qualified intermediary under which the intermediary shall be 
    responsible for providing administrative and technical assistance 
    to a State rural development council, including administering the 
    financial assistance available to the State rural development 
    council.
    ``(f) Matching Requirements for State Rural Development Councils.--
        ``(1) In general.--Except as provided in paragraph (2), a State 
    rural development council shall provide matching funds, or in-kind 
    goods or services, to support the activities of the State rural 
    development council in an amount that is not less than 33 percent 
    of the amount of Federal funds received from a Federal agency under 
    subsection (g)(2).
        ``(2) Exceptions to matching requirement for certain federal 
    funds.--Paragraph (1) shall not apply to funds, grants, funds 
    provided under contracts or cooperative agreements, gifts, 
    contributions, or technical assistance received by a State rural 
    development council from a Federal agency that are used--
            ``(A) to support 1 or more specific program or project 
        activities; or
            ``(B) to reimburse the State rural development council for 
        services provided to the Federal agency providing the funds, 
        grants, funds provided under contracts or cooperative 
        agreements, gifts, contributions, or technical assistance.
        ``(3) Department's share.--The Secretary shall develop a plan 
    to decrease, over time, the share of the Department of Agriculture 
    of the cost of the core operations of State rural development 
    councils.
    ``(g) Funding.--
        ``(1) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this section $10,000,000 for each of 
    fiscal years 2003 through 2007.
        ``(2) Federal agencies.--
            ``(A) In general.--Notwithstanding any other provision of 
        law limiting the ability of an agency, along with other 
        agencies, to provide funds to the Coordinating Committee or a 
        State rural development council in order to carry out the 
        purposes of this section, a Federal agency may make grants, 
        gifts, or contributions to, provide technical assistance to, or 
        enter into contracts or cooperative agreements with, the 
        Coordinating Committee or a State rural development council.
            ``(B) Assistance.--Federal agencies are encouraged to use 
        funds made available for programs that have an impact on rural 
        areas to provide assistance to, and enter into contracts with, 
        the Coordinating Committee or a State rural development 
        council, as described in subparagraph (A).
        ``(3) Contributions.--The Coordinating Committee and a State 
    rural development council may accept private contributions.
    ``(h) Termination.--The authority provided under this section shall 
terminate on the date that is 5 years after the date of enactment of 
this section.''.

SEC. 6022. RURAL TELEWORK.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6021) is amended by adding 
at the end the following:

``SEC. 379. RURAL TELEWORK.

    ``(a) Definitions.--In this section:
        ``(1) Eligible organization.--The term `eligible organization' 
    means a nonprofit entity, an educational institution, an Indian 
    tribe (as defined in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b)), or any other 
    organization, in a rural area (except for the institute), that 
    meets the requirements of this section and such other requirements 
    as are established by the Secretary.
        ``(2) Institute.--The term `institute' means a rural telework 
    institute established using a grant under subsection (b).
        ``(3) Telework.--The term `telework' means the use of 
    telecommunications to perform work functions at a rural work center 
    located outside the place of business of an employer.
    ``(b) Rural Telework Institute.--
        ``(1) In general.--The Secretary shall make 1 or more grants to 
    an eligible organization to pay the Federal share of the cost of 
    establishing and operating a national rural telework institute to 
    carry out projects described in paragraph (2).
        ``(2) Projects.--The institute shall use grant funds received 
    under this subsection to carry out a 5-year project--
            ``(A) to serve as a clearinghouse for telework research and 
        development;
            ``(B) to conduct outreach to rural communities and rural 
        workers;
            ``(C) to develop and share best practices in rural telework 
        throughout the United States;
            ``(D) to develop innovative, market-driven telework 
        projects and joint ventures with the private sector that employ 
        workers in rural areas in jobs that promote economic self-
        sufficiency;
            ``(E) to share information about the design and 
        implementation of telework arrangements;
            ``(F) to support private sector businesses that are 
        transitioning to telework;
            ``(G) to support and assist telework projects and 
        individuals at the State and local level; and
            ``(H) to perform such other functions as the Secretary 
        considers appropriate.
        ``(3) Non-federal share.--
            ``(A) In general.--As a condition of receiving a grant 
        under this subsection, an eligible organization shall agree to 
        obtain, after the application of the eligible organization has 
        been approved and notice of award has been issued, 
        contributions from non-Federal sources that are equal to--
                ``(i) during each of the first, second, and third years 
            of a project, 30 percent of the amount of the grant; and
                ``(ii) during each of the fourth and fifth years of the 
            project, 50 percent of the amount of the grant.
            ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
        Indian tribe may use any Federal funds made available to the 
        Indian tribe for self-governance to pay the non-Federal 
        contributions required under subparagraph (A).
            ``(C) Form.--The non-Federal contributions required under 
        subparagraph (A) may be in the form of in-kind contributions, 
        including office equipment, office space, computer software, 
        consultant services, computer networking equipment, and related 
        services.
    ``(c) Telework Grants.--
        ``(1) In general.--Subject to paragraphs (2) through (5), the 
    Secretary shall make grants to eligible organizations to pay the 
    Federal share of the cost of--
            ``(A) obtaining equipment and facilities to establish or 
        expand telework locations in rural areas; and
            ``(B) operating telework locations in rural areas.
        ``(2) Applications.--To be eligible to receive a grant under 
    this subsection, an eligible organization shall submit to the 
    Secretary, and receive the approval of the Secretary of, an 
    application for the grant that demonstrates that the eligible 
    organization has adequate resources and capabilities to establish 
    or expand a telework location in a rural area.
        ``(3) Non-federal share.--
            ``(A) In general.--As a condition of receiving a grant 
        under this subsection, an eligible organization shall agree to 
        obtain, after the application of the eligible organization has 
        been approved and notice of award has been issued, 
        contributions from non-Federal sources that are equal to 50 
        percent of the amount of the grant.
            ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
        Indian tribe may use Federal funds made available to the tribe 
        for self-governance to pay the non-Federal contributions 
        required under subparagraph (A).
            ``(C) Sources.--The non-Federal contributions required 
        under subparagraph (A)--
                ``(i) may be in the form of in-kind contributions, 
            including office equipment, office space, computer 
            software, consultant services, computer networking 
            equipment, and related services; and
                ``(ii) may not be made from funds made available for 
            community development block grants under title I of the 
            Housing and Community Development Act of 1974 (42 U.S.C. 
            5301 et seq.).
        ``(4) Duration.--The Secretary may not provide a grant under 
    this subsection to expand or operate a telework location in a rural 
    area after the date that is 3 years after the establishment of the 
    telework location.
        ``(5) Amount.--The amount of a grant provided to an eligible 
    organization under this subsection shall be not less than 
    $1,000,000 and not more than $2,000,000.
    ``(d) Applicability of Certain Federal Law.--An eligible 
organization that receives funds under this section shall be subject to 
the provisions of Federal law (including regulations) administered by 
the Secretary of Labor or the Equal Employment Opportunity Commission 
that govern the responsibilities of employers to employees.
    ``(e) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall promulgate regulations 
to carry out this section.
    ``(f) Authorization of Appropriation.--There is authorized to be 
appropriated to carry out this section $30,000,000 for each of fiscal 
years 2002 through 2007, of which $5,000,000 shall be provided to 
establish and support an institute under subsection (b).''.

SEC. 6023. HISTORIC BARN PRESERVATION.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6022) is amended by adding 
at the end the following:

``SEC. 379A. HISTORIC BARN PRESERVATION.

    ``(a) Definitions.--In this section:
        ``(1) Barn.--The term `barn' means a building (other than a 
    dwelling) on a farm, ranch, or other agricultural operation for--
            ``(A) housing animals;
            ``(B) storing or processing crops;
            ``(C) storing and maintaining agricultural equipment; or
            ``(D) serving an essential or useful purpose related to 
        agricultural activities conducted on the adjacent land.
        ``(2) Eligible applicant.--The term `eligible applicant' 
    means--
            ``(A) a State department of agriculture (or a designee);
            ``(B) a national or State nonprofit organization that--
                ``(i) is described in section 501(c)(3) of the Internal 
            Revenue Code of 1986 and exempt from taxation under section 
            501(a) of such Code; and
                ``(ii) has experience or expertise, as determined by 
            the Secretary, in the identification, evaluation, 
            rehabilitation, preservation, or protection of historic 
            barns; and
            ``(C) a State historic preservation office.
        ``(3) Historic barn.--The term `historic barn' means a barn 
    that--
            ``(A) is at least 50 years old;
            ``(B) retains sufficient integrity of design, materials, 
        and construction to clearly identify the barn as an 
        agricultural building; and
            ``(C) meets the criteria for listing on National, State, or 
        local registers or inventories of historic structures.
        ``(4) Secretary.--The term `Secretary' means the Secretary, 
    acting through the Under Secretary of Rural Development.
    ``(b) Program.--The Secretary shall establish a historic barn 
preservation program--
        ``(1) to assist States in developing a list of historic barns;
        ``(2) to collect and disseminate information on historic barns;
        ``(3) to foster educational programs relating to the history, 
    construction techniques, rehabilitation, and contribution to 
    society of historic barns; and
        ``(4) to sponsor and conduct research on--
            ``(A) the history of barns; and
            ``(B) best practices to protect and rehabilitate historic 
        barns from the effects of decay, fire, arson, and natural 
        disasters.
    ``(c) Grants.--
        ``(1) In general.--The Secretary may make grants to, or enter 
    into contracts or cooperative agreements with, eligible applicants 
    to carry out an eligible project under paragraph (2).
        ``(2) Eligible projects.--A grant under this subsection may be 
    made to an eligible applicant for a project--
            ``(A) to rehabilitate or repair a historic barn;
            ``(B) to preserve a historic barn through--
                ``(i) the installation of a fire protection system, 
            including fireproofing or fire detection system and 
            sprinklers; and
                ``(ii) the installation of a system to prevent 
            vandalism; and
            ``(C) to identify, document, and conduct research on a 
        historic barn to develop and evaluate appropriate techniques or 
        best practices for protecting historic barns.
        ``(3) Requirements.--An eligible applicant that receives a 
    grant for a project under this subsection shall comply with any 
    standards established by the Secretary of the Interior for historic 
    preservation projects.
        ``(4) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    section for each of fiscal years 2002 through 2007.''.

SEC. 6024. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6023)) is amended by adding 
at the end the following:

``SEC. 379B. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    ``(a) In General.--The Secretary, acting through the Administrator 
of the Rural Utilities Service, may make grants to public and nonprofit 
entities, and borrowers of loans made by the Rural Utilities Service, 
for the Federal share of the cost of acquiring radio transmitters to 
increase coverage of rural areas by the all hazards weather radio 
broadcast system of the National Oceanic and Atmospheric 
Administration.
    ``(b) Eligibility.--To be eligible for a grant under this section, 
an applicant shall provide to the Secretary--
        ``(1) a binding commitment from a tower owner to place the 
    transmitter on a tower; and
        ``(2) a description of how the tower placement will increase 
    coverage of a rural area by the all hazards weather radio broadcast 
    system of the National Oceanic and Atmospheric Administration.
    ``(c) Federal Share.--A grant provided under this section shall be 
not more than 75 percent of the total cost of acquiring a radio 
transmitter, as described in subsection (a).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.''.

SEC. 6025. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO 
              TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR 
              HIGHER VALUE CROPS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6024) is amended by adding 
at the end the following:

``SEC. 379C. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO 
              TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR 
              HIGHER VALUE CROPS.

    ``(a) In General.--The Secretary shall make grants to nonprofit 
organizations, or to a consortium of nonprofit organizations, 
agribusinesses, State and local governments, agricultural labor 
organizations, farmer or rancher cooperatives, and community-based 
organizations with the capacity to train farm workers.
    ``(b) Use of Funds.--An entity to which a grant is made under this 
section shall use the grant to train farm workers to use new 
technologies and develop specialized skills for agricultural 
development.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2002 through 2007.''.

SEC. 6026. RURAL COMMUNITY ADVANCEMENT PROGRAM.

    (a) National Reserve Program.--Section 381E of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009d) is amended--
        (1) in subsection (b)--
            (A) by striking paragraph (4); and
            (B) by redesignating paragraph (5) as paragraph (4);
        (2) by striking subsection (e);
        (3) by redesignating subsections (f) through (h) as subsections 
    (e) through (g), respectively; and
        (4) in subsection (g) (as so redesignated), by striking 
    ``subsection (g) of this section'' and inserting ``subsection 
    (f)''.
    (b) Rural Venture Capital Demonstration Program.--Section 381O of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009n) is 
repealed.
    (c) Conforming Amendments.--Section 381G of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009f(a)) is amended--
        (1) in subsection (a), by striking ``section 381E(g)'' each 
    place it appears and inserting ``section 381E(f)''; and
        (2) in subsection (b)(1), by striking ``section 381E(h)'' and 
    inserting ``section 381E(g)''.

SEC. 6027. DELTA REGIONAL AUTHORITY.

    (a) Voting.--Section 382B(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009aa-1(c)) is amended by striking paragraph 
(1) and inserting the following:
        ``(1) In general.--
            ``(A) Temporary method.--During the period beginning on the 
        date of enactment of this subparagraph and ending on December 
        31, 2004, a decision by the Authority shall require the 
        affirmative vote of the Federal cochairperson and a majority of 
        the State members (not including any member representing a 
        State that is delinquent under subsection (g)(2)(C)) to be 
        effective.
            ``(B) Permanent method.--Effective beginning on January 1, 
        2005, a decision by the Authority shall require a majority vote 
        of the Authority (not including any member representing a State 
        that is delinquent under subsection (g)(2)(C)) to be 
        effective.''.
    (b) Authority to Issue Regulations.--Section 382B(e)(4) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-1(e)(4)) 
is amended by striking ``and rules'' and inserting ``, rules, and 
regulations''.
    (c) Economic and Community Development Grants.--Section 382C(b) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-2(b)) 
is amended by striking paragraph (3).
    (d) Supplements to Federal Grant Programs.--Section 382D of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-3) is 
amended to read as follows:

``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
        ``(1) the States or communities lack the economic resources to 
    provide the required matching share; or
        ``(2) there are insufficient funds available under the 
    applicable Federal law authorizing the Federal grant program to 
    meet pressing needs of the region.
    ``(b) Federal Grant Program Funding.--Notwithstanding any provision 
of law limiting the Federal share, the areas eligible for assistance, 
or the authorizations of appropriations of any Federal grant program, 
and in accordance with subsection (c), the Authority, with the approval 
of the Federal cochairperson and with respect to a project to be 
carried out in the region--
        ``(1) may increase the Federal share of the costs of a project 
    under the Federal grant program to not more than 90 percent (except 
    as provided in section 382F(b)); and
        ``(2) shall use amounts made available to carry out this 
    subtitle to pay the increased Federal share.
    ``(c) Certifications.--
        ``(1) In general.--In the case of any project for which all or 
    any portion of the basic Federal share of the costs of the project 
    is proposed to be paid under this section, no Federal contribution 
    shall be made until the Federal official administering the Federal 
    law that authorizes the Federal grant program certifies that the 
    project--
            ``(A) meets (except as provided in subsection (b)) the 
        applicable requirements of the applicable Federal grant 
        program; and
            ``(B) could be approved for Federal contribution under the 
        Federal grant program if funds were available under the law for 
        the project.
        ``(2) Certification by authority.--
            ``(A) In general.--The certifications and determinations 
        required to be made by the Authority for approval of projects 
        under this Act in accordance with section 382I--
                ``(i) shall be controlling; and
                ``(ii) shall be accepted by the Federal agencies.
            ``(B) Acceptance by federal cochairperson.--In the case of 
        any project described in paragraph (1), any finding, report, 
        certification, or documentation required to be submitted with 
        respect to the project to the head of the department, agency, 
        or instrumentality of the Federal Government responsible for 
        the administration of the Federal grant program under which the 
        project is carried out shall be accepted by the Federal 
        cochairperson.''.
    (e) Grants to Local Development Agencies.--Section 382E(b)(1) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
4(b)(1)) is amended by striking ``may'' and inserting ``shall''.
    (f) Approval of Development Plans and Projects.--Section 382I of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-8) is 
amended--
        (1) in subsection (a), by inserting ``and approved'' after 
    ``reviewed''; and
        (2) in subsection (d), by striking ``Votes for Decisions.--'' 
    and inserting ``Approval of Grant Applications.--''.
    (g) Authorization of Appropriations.--Section 382M(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is 
amended by striking ``2002'' and inserting ``2007''.
    (h) Termination of Authority.--Section 382N of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009aa-13) is amended by 
striking ``2002'' and inserting ``2007''.
    (i) Delta Region Agricultural Economic Development.--Subtitle D of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et seq.) 
(as amended by section 6025) is amended by adding at the end the 
following:

``SEC. 379D. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants to assist in the 
development of state-of-the-art technology in animal nutrition 
(including research and development of the technology) and value-added 
manufacturing to promote an economic platform for the Delta region (as 
defined in section 382A) to relieve severe economic conditions.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $7,000,000 for each of fiscal 
years 2002 through 2007.''.
    (j) Definition of Lower Mississippi.--Section 4(2)(I) of the Delta 
Development Act (42 U.S.C. 3121 note; Public Law 100-460) is amended by 
inserting ``Butler, Conecuh, Escambia, Monroe,'' after ``Russell,''.

SEC. 6028. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

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

         ``Subtitle G--Northern Great Plains Regional Authority

``SEC. 383A. DEFINITIONS.

    ``In this subtitle:
        ``(1) Authority.--The term `Authority' means the Northern Great 
    Plains Regional Authority established by section 383B.
        ``(2) Federal grant program.--The term `Federal grant program' 
    means a Federal grant program to provide assistance in--
            ``(A) implementing the recommendations of the Northern 
        Great Plains Rural Development Commission established by the 
        Northern Great Plains Rural Development Act (7 U.S.C. 2661 
        note; Public Law 103-318);
            ``(B) acquiring or developing land;
            ``(C) constructing or equipping a highway, road, bridge, or 
        facility;
            ``(D) carrying out other economic development activities; 
        or
            ``(E) conducting research activities related to the 
        activities described in subparagraphs (A) through (D).
        ``(3) Indian tribe.--The term `Indian tribe' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
        ``(4) Region.--The term `region' means the States of Iowa, 
    Minnesota, Nebraska, North Dakota, and South Dakota.

``SEC. 383B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    ``(a) Establishment.--
        ``(1) In general.--There is established the Northern Great 
    Plains Regional Authority.
        ``(2) Composition.--The Authority shall be composed of--
            ``(A) a Federal member, to be appointed by the President, 
        by and with the advice and consent of the Senate;
            ``(B) the Governor (or a designee of the Governor) of each 
        State in the region that elects to participate in the 
        Authority; and
            ``(C) a member of an Indian tribe, who shall be a 
        chairperson of an Indian tribe in the region or a designee of 
        such a chairperson, to be appointed by the President, by and 
        with the advice and consent of the Senate.
        ``(3) Cochairpersons.--The Authority shall be headed by--
            ``(A) the Federal member, who shall serve--
                ``(i) as the Federal cochairperson; and
                ``(ii) as a liaison between the Federal Government and 
            the Authority;
            ``(B) a State cochairperson, who--
                ``(i) shall be a Governor of a participating State in 
            the region; and
                ``(ii) shall be elected by the State members for a term 
            of not less than 1 year; and
            ``(C) the member of an Indian tribe, who shall serve--
                ``(i) as the tribal cochairperson; and
                ``(ii) as a liaison between the governments of Indian 
            tribes in the region and the Authority.
    ``(b) Alternate Members.--
        ``(1) Alternate federal cochairperson.--The President shall 
    appoint an alternate Federal cochairperson.
        ``(2) State alternates.--
            ``(A) In general.--The State member of a participating 
        State may have a single alternate, who shall be--
                ``(i) a resident of that State; and
                ``(ii) appointed by the Governor of the State.
            ``(B) Quorum.--A State alternate member shall not be 
        counted toward the establishment of a quorum of the members of 
        the Authority in any case in which a quorum of the State 
        members is required to be present.
        ``(3) Alternate tribal cochairperson.--The President shall 
    appoint an alternate tribal cochairperson, by and with the advice 
    and consent of the Senate.
        ``(4) Delegation of power.--No power or responsibility of the 
    Authority specified in paragraphs (2) and (3) of subsection (c), 
    and no voting right of any member of the Authority, shall be 
    delegated to any person who is not--
            ``(A) a member of the Authority; or
            ``(B) entitled to vote in Authority meetings.
    ``(c) Voting.--
        ``(1) In general.--A decision by the Authority shall require a 
    majority vote of the Authority (not including any member 
    representing a State that is delinquent under subsection (g)(2)(D)) 
    to be effective.
        ``(2) Quorum.--A quorum of State members shall be required to 
    be present for the Authority to make any policy decision, 
    including--
            ``(A) a modification or revision of an Authority policy 
        decision;
            ``(B) approval of a State or regional development plan; and
            ``(C) any allocation of funds among the States.
        ``(3) Project and grant proposals.--The approval of project and 
    grant proposals shall be--
            ``(A) a responsibility of the Authority; and
            ``(B) conducted in accordance with section 383I.
        ``(4) Voting by alternate members.--An alternate member shall 
    vote in the case of the absence, death, disability, removal, or 
    resignation of the Federal, State, or Indian tribe member for whom 
    the alternate member is an alternate.
    ``(d) Duties.--The Authority shall--
        ``(1) develop, on a continuing basis, comprehensive and 
    coordinated plans and programs to establish priorities and approve 
    grants for the economic development of the region, giving due 
    consideration to other Federal, State, tribal, and local planning 
    and development activities in the region;
        ``(2) not later than 220 days after the date of enactment of 
    this subtitle, establish priorities in a development plan for the 
    region (including 5-year regional outcome targets);
        ``(3) assess the needs and assets of the region based on 
    available research, demonstrations, investigations, assessments, 
    and evaluations of the region prepared by Federal, State, tribal, 
    and local agencies, universities, local development districts, and 
    other nonprofit groups;
        ``(4) formulate and recommend to the Governors and legislatures 
    of States that participate in the Authority forms of interstate 
    cooperation;
        ``(5) work with State, tribal, and local agencies in developing 
    appropriate model legislation;
        ``(6)(A) enhance the capacity of, and provide support for, 
    local development districts in the region; or
        ``(B) if no local development district exists in an area in a 
    participating State in the region, foster the creation of a local 
    development district;
        ``(7) encourage private investment in industrial, commercial, 
    and other economic development projects in the region; and
        ``(8) cooperate with and assist State governments with economic 
    development programs of participating States.
    ``(e) Administration.--In carrying out subsection (d), the 
Authority may--
        ``(1) hold such hearings, sit and act at such times and places, 
    take such testimony, receive such evidence, and print or otherwise 
    reproduce and distribute a description of the proceedings and 
    reports on actions by the Authority as the Authority considers 
    appropriate;
        ``(2) authorize, through the Federal, State, or tribal 
    cochairperson or any other member of the Authority designated by 
    the Authority, the administration of oaths if the Authority 
    determines that testimony should be taken or evidence received 
    under oath;
        ``(3) request from any Federal, State, tribal, or local agency 
    such information as may be available to or procurable by the agency 
    that may be of use to the Authority in carrying out the duties of 
    the Authority;
        ``(4) adopt, amend, and repeal bylaws and rules governing the 
    conduct of business and the performance of duties of the Authority;
        ``(5) request the head of any Federal agency to detail to the 
    Authority such personnel as the Authority requires to carry out 
    duties of the Authority, each such detail to be without loss of 
    seniority, pay, or other employee status;
        ``(6) request the head of any State agency, tribal government, 
    or local government to detail to the Authority such personnel as 
    the Authority requires to carry out duties of the Authority, each 
    such detail to be without loss of seniority, pay, or other employee 
    status;
        ``(7) provide for coverage of Authority employees in a suitable 
    retirement and employee benefit system by--
            ``(A) making arrangements or entering into contracts with 
        any participating State government or tribal government; or
            ``(B) otherwise providing retirement and other employee 
        benefit coverage;
        ``(8) accept, use, and dispose of gifts or donations of 
    services or real, personal, tangible, or intangible property;
        ``(9) enter into and perform such contracts, leases, 
    cooperative agreements, or other transactions as are necessary to 
    carry out Authority duties, including any contracts, leases, or 
    cooperative agreements with--
            ``(A) any department, agency, or instrumentality of the 
        United States;
            ``(B) any State (including a political subdivision, agency, 
        or instrumentality of the State);
            ``(C) any Indian tribe in the region; or
            ``(D) any person, firm, association, or corporation; and
        ``(10) establish and maintain a central office and field 
    offices at such locations as the Authority may select.
    ``(f) Federal Agency Cooperation.--A Federal agency shall--
        ``(1) cooperate with the Authority; and
        ``(2) provide, on request of the Federal cochairperson, 
    appropriate assistance in carrying out this subtitle, in accordance 
    with applicable Federal laws (including regulations).
    ``(g) Administrative Expenses.--
        ``(1) Federal share.--The Federal share of the administrative 
    expenses of the Authority shall be--
            ``(A) for fiscal year 2002, 100 percent;
            ``(B) for fiscal year 2003, 75 percent; and
            ``(C) for fiscal year 2004 and each fiscal year thereafter, 
        50 percent.
        ``(2) Non-federal share.--
            ``(A) In general.--The non-Federal share of the 
        administrative expenses of the Authority shall be paid by non-
        Federal sources in the States that participate in the 
        Authority.
            ``(B) Share paid by each state.--The share of 
        administrative expenses of the Authority to be paid by non-
        Federal sources in each State shall be determined by the 
        Authority.
            ``(C) No federal participation.--The Federal cochairperson 
        shall not participate or vote in any decision under 
        subparagraph (B).
            ``(D) Delinquent states.--If a State is delinquent in 
        payment of the State's share of administrative expenses of the 
        Authority under this subsection--
                ``(i) no assistance under this subtitle shall be 
            provided to the State (including assistance to a political 
            subdivision or a resident of the State); and
                ``(ii) no member of the Authority from the State shall 
            participate or vote in any action by the Authority.
    ``(h) Compensation.--
        ``(1) Federal and tribal cochairpersons.--The Federal 
    cochairperson and the tribal cochairperson shall be compensated by 
    the Federal Government at the annual rate of basic pay prescribed 
    for level III of the Executive Schedule in subchapter II of chapter 
    53 of title 5, United States Code.
        ``(2) Alternate federal and tribal cochairpersons.--The 
    alternate Federal cochairperson and the alternate tribal 
    cochairperson--
            ``(A) shall be compensated by the Federal Government at the 
        annual rate of basic pay prescribed for level V of the 
        Executive Schedule described in paragraph (1); and
            ``(B) when not actively serving as an alternate, shall 
        perform such functions and duties as are delegated by the 
        Federal cochairperson or the tribal cochairperson, 
        respectively.
        ``(3) State members and alternates.--
            ``(A) In general.--A State shall compensate each member and 
        alternate representing the State on the Authority at the rate 
        established by State law.
            ``(B) No additional compensation.--No State member or 
        alternate member shall receive any salary, or any contribution 
        to or supplementation of salary from any source other than the 
        State for services provided by the member or alternate member 
        to the Authority.
        ``(4) Detailed employees.--
            ``(A) In general.--No person detailed to serve the 
        Authority under subsection (e)(6) shall receive any salary or 
        any contribution to or supplementation of salary for services 
        provided to the Authority from--
                ``(i) any source other than the State, tribal, local, 
            or intergovernmental agency from which the person was 
            detailed; or
                ``(ii) the Authority.
            ``(B) Violation.--Any person that violates this paragraph 
        shall be fined not more than $5,000, imprisoned not more than 1 
        year, or both.
            ``(C) Applicable law.--The Federal cochairperson, the 
        alternate Federal cochairperson, and any Federal officer or 
        employee detailed to duty on the Authority under subsection 
        (e)(5) shall not be subject to subparagraph (A), but shall 
        remain subject to sections 202 through 209 of title 18, United 
        States Code.
        ``(5) Additional personnel.--
            ``(A) Compensation.--
                ``(i) In general.--The Authority may appoint and fix 
            the compensation of an executive director and such other 
            personnel as are necessary to enable the Authority to carry 
            out the duties of the Authority.
                ``(ii) Exception.--Compensation under clause (i) shall 
            not exceed the maximum rate for the Senior Executive 
            Service under section 5382 of title 5, United States Code, 
            including any applicable locality-based comparability 
            payment that may be authorized under section 5304(h)(2)(C) 
            of that title.
            ``(B) Executive director.--The executive director shall be 
        responsible for--
                ``(i) the carrying out of the administrative duties of 
            the Authority;
                ``(ii) direction of the Authority staff; and
                ``(iii) such other duties as the Authority may assign.
            ``(C) No federal employee status.--No member, alternate, 
        officer, or employee of the Authority (except the Federal 
        cochairperson of the Authority, the alternate and staff for the 
        Federal cochairperson, and any Federal employee detailed to the 
        Authority under subsection (e)(5)) shall be considered to be a 
        Federal employee for any purpose.
    ``(i) Conflicts of Interest.--
        ``(1) In general.--Except as provided under paragraph (2), no 
    State member, Indian tribe member, State alternate, officer, or 
    employee of the Authority shall participate personally and 
    substantially as a member, alternate, officer, or employee of the 
    Authority, through decision, approval, disapproval, recommendation, 
    the rendering of advice, investigation, or otherwise, in any 
    proceeding, application, request for a ruling or other 
    determination, contract, claim, controversy, or other matter in 
    which, to knowledge of the member, alternate, officer, or 
    employee--
            ``(A) the member, alternate, officer, or employee;
            ``(B) the spouse, minor child, partner, or organization 
        (other than a State or political subdivision of the State or 
        the Indian tribe) of the member, alternate, officer, or 
        employee, in which the member, alternate, officer, or employee 
        is serving as officer, director, trustee, partner, or employee; 
        or
            ``(C) any person or organization with whom the member, 
        alternate, officer, or employee is negotiating or has any 
        arrangement concerning prospective employment;
    has a financial interest.
        ``(2) Disclosure.--Paragraph (1) shall not apply if the State 
    member, Indian tribe member, alternate, officer, or employee--
            ``(A) immediately advises the Authority of the nature and 
        circumstances of the proceeding, application, request for a 
        ruling or other determination, contract, claim, controversy, or 
        other particular matter presenting a potential conflict of 
        interest;
            ``(B) makes full disclosure of the financial interest; and
            ``(C) before the proceeding concerning the matter 
        presenting the conflict of interest, receives a written 
        determination by the Authority that the interest is not so 
        substantial as to be likely to affect the integrity of the 
        services that the Authority may expect from the State member, 
        Indian tribe member, alternate, officer, or employee.
        ``(3) Violation.--Any person that violates this subsection 
    shall be fined not more than $10,000, imprisoned not more than 2 
    years, or both.
    ``(j) Validity of Contracts, Loans, and Grants.--The Authority may 
declare void any contract, loan, or grant of or by the Authority in 
relation to which the Authority determines that there has been a 
violation of any provision under subsection (h)(4) or subsection (i) of 
this subtitle, or sections 202 through 209 of title 18, United States 
Code.

``SEC. 383C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    ``(a) In General.--The Authority may approve grants to States, 
Indian tribes, local governments, and public and nonprofit 
organizations for projects, approved in accordance with section 383I--
        ``(1) to develop the transportation and telecommunication 
    infrastructure of the region for the purpose of facilitating 
    economic development in the region (except that grants for this 
    purpose may be made only to States, Indian tribes, local 
    governments, and nonprofit organizations);
        ``(2) to assist the region in obtaining the job training, 
    employment-related education, and business development (with an 
    emphasis on entrepreneurship) that are needed to build and maintain 
    strong local economies;
        ``(3) to provide assistance to severely distressed and 
    underdeveloped areas that lack financial resources for improving 
    basic public services;
        ``(4) to provide assistance to severely distressed and 
    underdeveloped areas that lack financial resources for equipping 
    industrial parks and related facilities; and
        ``(5) to otherwise achieve the purposes of this subtitle.
    ``(b) Funding.--
        ``(1) In general.--Funds for grants under subsection (a) may be 
    provided--
            ``(A) entirely from appropriations to carry out this 
        section;
            ``(B) in combination with funds available under another 
        Federal grant program; or
            ``(C) from any other source.
        ``(2) Priority of funding.--To best build the foundations for 
    long-term economic development and to complement other Federal, 
    State, and tribal resources in the region, Federal funds available 
    under this subtitle shall be focused on the activities in the 
    following order or priority:
            ``(A) Basic public infrastructure in distressed counties 
        and isolated areas of distress.
            ``(B) Transportation and telecommunication infrastructure 
        for the purpose of facilitating economic development in the 
        region.
            ``(C) Business development, with emphasis on 
        entrepreneurship.
            ``(D) Job training or employment-related education, with 
        emphasis on use of existing public educational institutions 
        located in the region.

``SEC. 383D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
        ``(1) they lack the economic resources to provide the required 
    matching share; or
        ``(2) there are insufficient funds available under the 
    applicable Federal law authorizing the Federal grant program to 
    meet pressing needs of the region.
    ``(b) Federal Grant Program Funding.--Notwithstanding any provision 
of law limiting the Federal share, the areas eligible for assistance, 
or the authorizations of appropriations, under any Federal grant 
program, and in accordance with subsection (c), the Authority, with the 
approval of the Federal cochairperson and with respect to a project to 
be carried out in the region--
        ``(1) may increase the Federal share of the costs of a project 
    under any Federal grant program to not more than 90 percent (except 
    as provided in section 383F(b)); and
        ``(2) shall use amounts made available to carry out this 
    subtitle to pay the increased Federal share.
    ``(c) Certifications.--
        ``(1) In general.--In the case of any project for which all or 
    any portion of the basic Federal share of the costs of the project 
    is proposed to be paid under this section, no Federal contribution 
    shall be made until the Federal official administering the Federal 
    law that authorizes the Federal grant program certifies that the 
    project--
            ``(A) meets (except as provided in subsection (b)) the 
        applicable requirements of the applicable Federal grant 
        program; and
            ``(B) could be approved for Federal contribution under the 
        Federal grant program if funds were available under the law for 
        the project.
        ``(2) Certification by authority.--
            ``(A) In general.--The certifications and determinations 
        required to be made by the Authority for approval of projects 
        under this Act in accordance with section 383I--
                ``(i) shall be controlling; and
                ``(ii) shall be accepted by the Federal agencies.
            ``(B) Acceptance by federal cochairperson.--In the case of 
        any project described in paragraph (1), any finding, report, 
        certification, or documentation required to be submitted with 
        respect to the project to the head of the department, agency, 
        or instrumentality of the Federal Government responsible for 
        the administration of the Federal grant program under which the 
        project is carried out shall be accepted by the Federal 
        cochairperson.

``SEC. 383E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN 
              GREAT PLAINS INC.

    ``(a) Definition of Local Development District.--In this section, 
the term `local development district' means an entity--
        ``(1) that--
            ``(A) is a planning district in existence on the date of 
        enactment of this subtitle that is recognized by the Economic 
        Development Administration of the Department of Commerce; or
            ``(B) is--
                ``(i) organized and operated in a manner that ensures 
            broad-based community participation and an effective 
            opportunity for other nonprofit groups to contribute to the 
            development and implementation of programs in the region;
                ``(ii) governed by a policy board with at least a 
            simple majority of members consisting of--

                    ``(I) elected officials or employees of a general 
                purpose unit of local government who have been 
                appointed to represent the government; or
                    ``(II) individuals appointed by the general purpose 
                unit of local government to represent the government;

                ``(iii) certified to the Authority as having a charter 
            or authority that includes the economic development of 
            counties or parts of counties or other political 
            subdivisions within the region--

                    ``(I) by the Governor of each State in which the 
                entity is located; or
                    ``(II) by the State officer designated by the 
                appropriate State law to make the certification; and

                ``(iv)(I) a nonprofit incorporated body organized or 
            chartered under the law of the State in which the entity is 
            located;
                ``(II) a nonprofit agency or instrumentality of a State 
            or local government;
                ``(III) a public organization established before the 
            date of enactment of this subtitle under State law for 
            creation of multi-jurisdictional, area-wide planning 
            organizations; or
                ``(IV) a nonprofit association or combination of 
            bodies, agencies, and instrumentalities described in 
            subclauses (I) through (III); and
        ``(2) that has not, as certified by the Federal cochairperson--
            ``(A) inappropriately used Federal grant funds from any 
        Federal source; or
            ``(B) appointed an officer who, during the period in which 
        another entity inappropriately used Federal grant funds from 
        any Federal source, was an officer of the other entity.
    ``(b) Grants to Local Development Districts.--
        ``(1) In general.--The Authority may make grants for 
    administrative expenses under this section.
        ``(2) Conditions for grants.--
            ``(A) Maximum amount.--The amount of any grant awarded 
        under paragraph (1) shall not exceed 80 percent of the 
        administrative expenses of the local development district 
        receiving the grant.
            ``(B) Maximum period.--No grant described in paragraph (1) 
        shall be awarded to a State agency certified as a local 
        development district for a period greater than 3 years.
            ``(C) Local share.--The contributions of a local 
        development district for administrative expenses may be in cash 
        or in kind, fairly evaluated, including space, equipment, and 
        services.
    ``(c) Duties of Local Development Districts.--A local development 
district shall--
        ``(1) operate as a lead organization serving multicounty areas 
    in the region at the local level; and
        ``(2) serve as a liaison between State, tribal, and local 
    governments, nonprofit organizations (including community-based 
    groups and educational institutions), the business community, and 
    citizens that--
            ``(A) are involved in multijurisdictional planning;
            ``(B) provide technical assistance to local jurisdictions 
        and potential grantees; and
            ``(C) provide leadership and civic development assistance.
    ``(d) Northern Great Plains Inc.--Northern Great Plains Inc., a 
nonprofit corporation incorporated in the State of Minnesota to 
implement the recommendations of the Northern Great Plains Rural 
Development Commission established by the Northern Great Plains Rural 
Development Act (7 U.S.C. 2661 note; Public Law 103-318)--
        ``(1) shall serve as an independent, primary resource for the 
    Authority on issues of concern to the region;
        ``(2) shall advise the Authority on development of 
    international trade;
        ``(3) may provide research, education, training, and other 
    support to the Authority; and
        ``(4) may carry out other activities on its own behalf or on 
    behalf of other entities.

``SEC. 383F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this subtitle, and annually thereafter, the Authority, in 
accordance with such criteria as the Authority may establish, shall 
designate--
        ``(1) as distressed counties, counties in the region that are 
    the most severely and persistently distressed and underdeveloped 
    and have high rates of poverty, unemployment, or outmigration;
        ``(2) as nondistressed counties, counties in the region that 
    are not designated as distressed counties under paragraph (1); and
        ``(3) as isolated areas of distress, areas located in 
    nondistressed counties (as designated under paragraph (2)) that 
    have high rates of poverty, unemployment, or outmigration.
    ``(b) Distressed Counties.--
        ``(1) In general.--The Authority shall allocate at least 75 
    percent of the appropriations made available under section 383M for 
    programs and projects designed to serve the needs of distressed 
    counties and isolated areas of distress in the region.
        ``(2) Funding limitations.--The funding limitations under 
    section 383D(b) shall not apply to a project to provide 
    transportation or telecommunication or basic public services to 
    residents of 1 or more distressed counties or isolated areas of 
    distress in the region.
    ``(c) Nondistressed Counties.--
        ``(1) In general.--Except as provided in paragraph (2), no 
    funds shall be provided under this subtitle for a project located 
    in a county designated as a nondistressed county under subsection 
    (a)(2).
        ``(2) Exceptions.--
            ``(A) In general.--The funding prohibition under paragraph 
        (1) shall not apply to grants to fund the administrative 
        expenses of local development districts under section 383E(b).
            ``(B) Multicounty projects.--The Authority may waive the 
        application of the funding prohibition under paragraph (1) to--
                ``(i) a multicounty project that includes participation 
            by a nondistressed county; or
                ``(ii) any other type of project;
        if the Authority determines that the project could bring 
        significant benefits to areas of the region outside a 
        nondistressed county.
            ``(C) Isolated areas of distress.--For a designation of an 
        isolated area of distress for assistance to be effective, the 
        designation shall be supported--
                ``(i) by the most recent Federal data available; or
                ``(ii) if no recent Federal data are available, by the 
            most recent data available through the government of the 
            State in which the isolated area of distress is located.
    ``(d) Transportation, Telecommunication, and Basic Public 
Infrastructure.--The Authority shall allocate at least 50 percent of 
any funds made available under section 383M for transportation, 
telecommunication, and basic public infrastructure projects authorized 
under paragraphs (1) and (3) of section 383C(a).

``SEC. 383G. DEVELOPMENT PLANNING PROCESS.

    ``(a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the State 
member.
    ``(b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
383B(d)(2).
    ``(c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State may--
        ``(1) consult with--
            ``(A) local development districts; and
            ``(B) local units of government; and
        ``(2) take into consideration the goals, objectives, 
    priorities, and recommendations of the entities described in 
    paragraph (1).
    ``(d) Public Participation.--
        ``(1) In general.--The Authority and applicable State and local 
    development districts shall encourage and assist, to the maximum 
    extent practicable, public participation in the development, 
    revision, and implementation of all plans and programs under this 
    subtitle.
        ``(2) Regulations.--The Authority shall develop guidelines for 
    providing public participation described in paragraph (1), 
    including public hearings.

``SEC. 383H. PROGRAM DEVELOPMENT CRITERIA.

    ``(a) In General.--In considering programs and projects to be 
provided assistance under this subtitle, and in establishing a priority 
ranking of the requests for assistance provided to the Authority, the 
Authority shall follow procedures that ensure, to the maximum extent 
practicable, consideration of--
        ``(1) the relationship of the project or class of projects to 
    overall regional development;
        ``(2) the per capita income and poverty and unemployment and 
    outmigration rates in an area;
        ``(3) the financial resources available to the applicants for 
    assistance seeking to carry out the project, with emphasis on 
    ensuring that projects are adequately financed to maximize the 
    probability of successful economic development;
        ``(4) the importance of the project or class of projects in 
    relation to other projects or classes of projects that may be in 
    competition for the same funds;
        ``(5) the prospects that the project for which assistance is 
    sought will improve, on a continuing rather than a temporary basis, 
    the opportunities for employment, the average level of income, or 
    the economic development of the area to be served by the project; 
    and
        ``(6) the extent to which the project design provides for 
    detailed outcome measurements by which grant expenditures and the 
    results of the expenditures may be evaluated.
    ``(b) No Relocation Assistance.--No financial assistance authorized 
by this subtitle shall be used to assist a person or entity in 
relocating from one area to another, except that financial assistance 
may be used as otherwise authorized by this title to attract businesses 
from outside the region to the region.
    ``(c) Maintenance of Effort.--Funds may be provided for a program 
or project in a State under this subtitle only if the Authority 
determines that the level of Federal or State financial assistance 
provided under a law other than this subtitle, for the same type of 
program or project in the same area of the State within the region, 
will not be reduced as a result of funds made available by this 
subtitle.

``SEC. 383I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    ``(a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
subtitle shall be reviewed by the Authority.
    ``(b) Evaluation by State Member.--An application for a grant or 
any other assistance for a project under this subtitle shall be made 
through and evaluated for approval by the State member of the Authority 
representing the applicant.
    ``(c) Certification.--An application for a grant or other 
assistance for a project shall be approved only on certification by the 
State member that the application for the project--
        ``(1) describes ways in which the project complies with any 
    applicable State development plan;
        ``(2) meets applicable criteria under section 383H;
        ``(3) provides adequate assurance that the proposed project 
    will be properly administered, operated, and maintained; and
        ``(4) otherwise meets the requirements of this subtitle.
    ``(d) Votes for Decisions.--On certification by a State member of 
the Authority of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Authority under section 383B(c) shall be required for approval of the 
application.

``SEC. 383J. CONSENT OF STATES.

    ``Nothing in this subtitle requires any State to engage in or 
accept any program under this subtitle without the consent of the 
State.

``SEC. 383K. RECORDS.

    ``(a) Records of the Authority.--
        ``(1) In general.--The Authority shall maintain accurate and 
    complete records of all transactions and activities of the 
    Authority.
        ``(2) Availability.--All records of the Authority shall be 
    available for audit and examination by the Comptroller General of 
    the United States and the Inspector General of the Department of 
    Agriculture (including authorized representatives of the 
    Comptroller General and the Inspector General of the Department of 
    Agriculture).
    ``(b) Records of Recipients of Federal Assistance.--
        ``(1) In general.--A recipient of Federal funds under this 
    subtitle shall, as required by the Authority, maintain accurate and 
    complete records of transactions and activities financed with 
    Federal funds and report to the Authority on the transactions and 
    activities to the Authority.
        ``(2) Availability.--All records required under paragraph (1) 
    shall be available for audit by the Comptroller General of the 
    United States, the Inspector General of the Department of 
    Agriculture, and the Authority (including authorized 
    representatives of the Comptroller General, the Inspector General 
    of the Department of Agriculture, and the Authority).
    ``(c) Annual Audit.--The Inspector General of the Department of 
Agriculture shall audit the activities, transactions, and records of 
the Authority on an annual basis.

``SEC. 383L. ANNUAL REPORT.

    ``Not later than 180 days after the end of each fiscal year, the 
Authority shall submit to the President and to Congress a report 
describing the activities carried out under this subtitle.

``SEC. 383M. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Authority to carry out this subtitle $30,000,000 for each of fiscal 
years 2002 through 2007, to remain available until expended.
    ``(b) Administrative Expenses.--Not more than 5 percent of the 
amount appropriated under subsection (a) for a fiscal year shall be 
used for administrative expenses of the Authority.
    ``(c) Minimum State Share of Grants.--Notwithstanding any other 
provision of this subtitle, for any fiscal year, the aggregate amount 
of grants received by a State and all persons or entities in the State 
under this subtitle shall be not less than \1/3\ of the product 
obtained by multiplying--
        ``(1) the aggregate amount of grants under this subtitle for 
    the fiscal year; and
        ``(2) the ratio that--
            ``(A) the population of the State (as determined by the 
        Secretary of Commerce based on the most recent decennial census 
        for which data are available); bears to
            ``(B) the population of the region (as so determined).

``SEC. 383N. TERMINATION OF AUTHORITY.

    ``The authority provided by this subtitle terminates effective 
October 1, 2007.''.

SEC. 6029. RURAL BUSINESS INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended by 
section 6028) is amended by adding at the end the following:

            ``Subtitle H--Rural Business Investment Program

``SEC. 384A. DEFINITIONS.

    ``In this subtitle:
        ``(1) Articles.--The term `articles' means articles of 
    incorporation for an incorporated body or the functional equivalent 
    or other similar documents specified by the Secretary for other 
    business entities.
        ``(2) Developmental venture capital.--The term `developmental 
    venture capital' means capital in the form of equity capital 
    investments in rural business investment companies with an 
    objective of fostering economic development in rural areas.
        ``(3) Employee welfare benefit plan; pension plan.--
            ``(A) In general.--The terms `employee welfare benefit 
        plan' and `pension plan' have the meanings given the terms in 
        section 3 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002).
            ``(B) Inclusions.--The terms `employee welfare benefit 
        plan' and `pension plan' include--
                ``(i) public and private pension or retirement plans 
            subject to this subtitle; and
                ``(ii) similar plans not covered by this subtitle that 
            have been established, and that are maintained, by the 
            Federal Government or any State (including by a political 
            subdivision, agency, or instrumentality of the Federal 
            Government or a State) for the benefit of employees.
        ``(4) Equity capital.--The term `equity capital' means common 
    or preferred stock or a similar instrument, including subordinated 
    debt with equity features.
        ``(5) Leverage.--The term `leverage' includes--
            ``(A) debentures purchased or guaranteed by the Secretary;
            ``(B) participating securities purchased or guaranteed by 
        the Secretary; and
            ``(C) preferred securities outstanding as of the date of 
        enactment of this subtitle.
        ``(6) License.--The term `license' means a license issued by 
    the Secretary as provided in section 384D(e).
        ``(7) Limited liability company.--The term `limited liability 
    company' means a business entity that is organized and operating in 
    accordance with a State limited liability company law approved by 
    the Secretary.
        ``(8) Member.--The term `member' means, with respect to a rural 
    business investment company that is a limited liability company, a 
    holder of an ownership interest or a person otherwise admitted to 
    membership in the limited liability company.
        ``(9) Operational assistance.--The term `operational 
    assistance' means management, marketing, and other technical 
    assistance that assists a rural business concern with business 
    development.
        ``(10) Participation agreement.--The term `participation 
    agreement' means an agreement, between the Secretary and a rural 
    business investment company granted final approval under section 
    384D(e), that requires the rural business investment company to 
    make investments in smaller enterprises in rural areas.
        ``(11) Private capital.--
            ``(A) In general.--The term `private capital' means the 
        total of--
                ``(i)(I) the paid-in capital and paid-in surplus of a 
            corporate rural business investment company;
                ``(II) the contributed capital of the partners of a 
            partnership rural business investment company; or
                ``(III) the equity investment of the members of a 
            limited liability company rural business investment 
            company; and
                ``(ii) unfunded binding commitments from investors that 
            meet criteria established by the Secretary to contribute 
            capital to the rural business investment company, except 
            that--

                    ``(I) unfunded commitments may be counted as 
                private capital for purposes of approval by the 
                Secretary of any request for leverage; but
                    ``(II) leverage shall not be funded based on the 
                commitments.

            ``(B) Exclusions.--The term `private capital' does not 
        include--
                ``(i) any funds borrowed by a rural business investment 
            company from any source;
                ``(ii) any funds obtained through the issuance of 
            leverage; or
                ``(iii) any funds obtained directly or indirectly from 
            the Federal Government or any State (including by a 
            political subdivision, agency, or instrumentality of the 
            Federal Government or a State), except for--

                    ``(I) funds obtained from the business revenues 
                (excluding any governmental appropriation) of any 
                federally chartered or government-sponsored enterprise 
                established prior to the date of enactment of this 
                subtitle;
                    ``(II) funds invested by an employee welfare 
                benefit plan or pension plan; and
                    ``(III) any qualified nonprivate funds (if the 
                investors of the qualified nonprivate funds do not 
                control, directly or indirectly, the management, board 
                of directors, general partners, or members of the rural 
                business investment company).

        ``(12) Qualified nonprivate funds.--The term `qualified 
    nonprivate funds' means any--
            ``(A) funds directly or indirectly invested in any 
        applicant or rural business investment company on or before the 
        date of enactment of this subtitle, by any Federal agency, 
        other than the Department of Agriculture, under a provision of 
        law explicitly mandating the inclusion of those funds in the 
        definition of the term `private capital'; and
            ``(B) funds invested in any applicant or rural business 
        investment company by 1 or more entities of any State 
        (including by a political subdivision, agency, or 
        instrumentality of the State and including any guarantee 
        extended by those entities) in an aggregate amount that does 
        not exceed 33 percent of the private capital of the applicant 
        or rural business investment company.
        ``(13) Rural business concern.--The term `rural business 
    concern' means--
            ``(A) a public, private, or cooperative for-profit or 
        nonprofit organization;
            ``(B) a for-profit or nonprofit business controlled by an 
        Indian tribe on a Federal or State reservation or other 
        federally recognized Indian tribal group; or
            ``(C) any other person or entity;
    that primarily operates in a rural area, as determined by the 
    Secretary.
        ``(14) Rural business investment company.--The term `rural 
    business investment company' means a company that--
            ``(A) has been granted final approval by the Secretary 
        under section 384D(e); and
            ``(B) has entered into a participation agreement with the 
        Secretary.
        ``(15) Smaller enterprise.--The term `smaller enterprise' means 
    any rural business concern that, together with its affiliates--
            ``(A) has--
                ``(i) a net financial worth of not more than 
            $6,000,000, as of the date on which assistance is provided 
            under this subtitle to the rural business concern; and
                ``(ii) an average net income for the 2-year period 
            preceding the date on which assistance is provided under 
            this subtitle to the rural business concern, of not more 
            than $2,000,000, after Federal income taxes (excluding any 
            carryover losses), except that, for purposes of this 
            clause, if the rural business concern is not required by 
            law to pay Federal income taxes at the enterprise level, 
            but is required to pass income through to the shareholders, 
            partners, beneficiaries, or other equitable owners of the 
            business concern, the net income of the business concern 
            shall be determined by allowing a deduction in an amount 
            equal to the total of--

                    ``(I) if the rural business concern is not required 
                by law to pay State (and local, if any) income taxes at 
                the enterprise level, the net income (determined 
                without regard to this clause), multiplied by the 
                marginal State income tax rate (or by the combined 
                State and local income tax rates, as applicable) that 
                would have applied if the business concern were a 
                corporation; and
                    ``(II) the net income (so determined) less any 
                deduction for State (and local) income taxes calculated 
                under subclause (I), multiplied by the marginal Federal 
                income tax rate that would have applied if the rural 
                business concern were a corporation; or

            ``(B) satisfies the standard industrial classification size 
        standards established by the Administrator of the Small 
        Business Administration for the industry in which the rural 
        business concern is primarily engaged.

``SEC. 384B. PURPOSES.

    ``The purposes of the Rural Business Investment Program established 
under this subtitle are--
        ``(1) to promote economic development and the creation of 
    wealth and job opportunities in rural areas and among individuals 
    living in those areas by encouraging developmental venture capital 
    investments in smaller enterprises primarily located in rural 
    areas; and
        ``(2) to establish a developmental venture capital program, 
    with the mission of addressing the unmet equity investment needs of 
    small enterprises located in rural areas, by authorizing the 
    Secretary--
            ``(A) to enter into participation agreements with rural 
        business investment companies;
            ``(B) to guarantee debentures of rural business investment 
        companies to enable each rural business investment company to 
        make developmental venture capital investments in smaller 
        enterprises in rural areas; and
            ``(C) to make grants to rural business investment 
        companies, and to other entities, for the purpose of providing 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by rural business investment 
        companies.

``SEC. 384C. ESTABLISHMENT.

    ``In accordance with this subtitle, the Secretary shall establish a 
Rural Business Investment Program, under which the Secretary may--
        ``(1) enter into participation agreements with companies 
    granted final approval under section 384D(e) for the purposes set 
    forth in section 384B;
        ``(2) guarantee the debentures issued by rural business 
    investment companies as provided in section 384E; and
        ``(3) make grants to rural business investment companies, and 
    to other entities, under section 384H.

``SEC. 384D. SELECTION OF RURAL BUSINESS INVESTMENT COMPANIES.

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a rural business investment company, in the program 
established under this subtitle if--
        ``(1) the company is a newly formed for-profit entity or a 
    newly formed for-profit subsidiary of such an entity;
        ``(2) the company has a management team with experience in 
    community development financing or relevant venture capital 
    financing; and
        ``(3) the company will invest in enterprises that will create 
    wealth and job opportunities in rural areas, with an emphasis on 
    smaller enterprises.
    ``(b) Application.--To participate, as a rural business investment 
company, in the program established under this subtitle, a company 
meeting the eligibility requirements of subsection (a) shall submit an 
application to the Secretary that includes--
        ``(1) a business plan describing how the company intends to 
    make successful developmental venture capital investments in 
    identified rural areas;
        ``(2) information regarding the community development finance 
    or relevant venture capital qualifications and general reputation 
    of the management of the company;
        ``(3) a description of how the company intends to work with 
    community-based organizations and local entities (including local 
    economic development companies, local lenders, and local investors) 
    and to seek to address the unmet equity capital needs of the 
    communities served;
        ``(4) a proposal describing how the company intends to use the 
    grant funds provided under this subtitle to provide operational 
    assistance to smaller enterprises financed by the company, 
    including information regarding whether the company intends to use 
    licensed professionals, as necessary, on the staff of the company 
    or from an outside entity;
        ``(5) with respect to binding commitments to be made to the 
    company under this subtitle, an estimate of the ratio of cash to 
    in-kind contributions;
        ``(6) a description of the criteria to be used to evaluate 
    whether and to what extent the company meets the purposes of the 
    program established under this subtitle;
        ``(7) information regarding the management and financial 
    strength of any parent firm, affiliated firm, or any other firm 
    essential to the success of the business plan of the company; and
        ``(8) such other information as the Secretary may require.
    ``(c) Status.--Not later than 90 days after the initial receipt by 
the Secretary of an application under this section, the Secretary shall 
provide to the applicant a written report describing the status of the 
application and any requirements remaining for completion of the 
application.
    ``(d) Matters Considered.--In reviewing and processing any 
application under this section, the Secretary--
        ``(1) shall determine whether--
            ``(A) the applicant meets the requirements of subsection 
        (e); and
            ``(B) the management of the applicant is qualified and has 
        the knowledge, experience, and capability necessary to comply 
        with this subtitle;
        ``(2) shall take into consideration--
            ``(A) the need for and availability of financing for rural 
        business concerns in the geographic area in which the applicant 
        is to commence business;
            ``(B) the general business reputation of the owners and 
        management of the applicant; and
            ``(C) the probability of successful operations of the 
        applicant, including adequate profitability and financial 
        soundness; and
        ``(3) shall not take into consideration any projected shortage 
    or unavailability of grant funds or leverage.
    ``(e) Approval; License.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary may approve an applicant to operate as a rural business 
    investment company under this subtitle and license the applicant as 
    a rural business investment company, if--
            ``(A) the Secretary determines that the application 
        satisfies the requirements of subsection (b);
            ``(B) the area in which the rural business investment 
        company is to conduct its operations, and establishment of 
        branch offices or agencies (if authorized by the articles), are 
        approved by the Secretary; and
            ``(C) the applicant enters into a participation agreement 
        with the Secretary.
        ``(2) Capital requirements.--
            ``(A) In general.--Notwithstanding any other provision of 
        this subtitle, the Secretary may approve an applicant to 
        operate as a rural business investment company under this 
        subtitle and designate the applicant as a rural business 
        investment company, if the Secretary determines that the 
        applicant--
                ``(i) has private capital of more than $2,500,000;
                ``(ii) would otherwise be approved under this subtitle, 
            except that the applicant does not satisfy the requirements 
            of section 384I(c); and
                ``(iii) has a viable business plan that--

                    ``(I) reasonably projects profitable operations; 
                and
                    ``(II) has a reasonable timetable for achieving a 
                level of private capital that satisfies the 
                requirements of section 384I(c).

            ``(B) Leverage.--An applicant approved under subparagraph 
        (A) shall not be eligible to receive leverage under this 
        subtitle until the applicant satisfies the requirements of 
        section 384I(c).
            ``(C) Grants.--An applicant approved under subparagraph (A) 
        shall be eligible for grants under section 384H in proportion 
        to the private capital of the applicant, as determined by the 
        Secretary.

``SEC. 384E. DEBENTURES.

    ``(a) In General.--The Secretary may guarantee the timely payment 
of principal and interest, as scheduled, on debentures issued by any 
rural business investment company.
    ``(b) Terms and Conditions.--The Secretary may make guarantees 
under this section on such terms and conditions as the Secretary 
considers appropriate, except that the term of any debenture guaranteed 
under this section shall not exceed 15 years.
    ``(c) Full Faith and Credit of the United States.--Section 381H(i) 
shall apply to any guarantee under this section.
    ``(d) Maximum Guarantee.--Under this section, the Secretary may--
        ``(1) guarantee the debentures issued by a rural business 
    investment company only to the extent that the total face amount of 
    outstanding guaranteed debentures of the rural business investment 
    company does not exceed the lesser of--
            ``(A) 300 percent of the private capital of the rural 
        business investment company; or
            ``(B) $105,000,000; and
        ``(2) provide for the use of discounted debentures.

``SEC. 384F. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) Issuance.--The Secretary may issue trust certificates 
representing ownership of all or a fractional part of debentures issued 
by a rural business investment company and guaranteed by the Secretary 
under this subtitle, if the certificates are based on and backed by a 
trust or pool approved by the Secretary and composed solely of 
guaranteed debentures.
    ``(b) Guarantee.--
        ``(1) In general.--The Secretary may, under such terms and 
    conditions as the Secretary considers appropriate, guarantee the 
    timely payment of the principal of and interest on trust 
    certificates issued by the Secretary or agents of the Secretary for 
    purposes of this section.
        ``(2) Limitation.--Each guarantee under this subsection shall 
    be limited to the extent of principal and interest on the 
    guaranteed debentures that compose the trust or pool.
        ``(3) Prepayment or default.--
            ``(A) In general.--In the event a debenture in a trust or 
        pool is prepaid, or in the event of default of such a 
        debenture, the guarantee of timely payment of principal and 
        interest on the trust certificates shall be reduced in 
        proportion to the amount of principal and interest the prepaid 
        debenture represents in the trust or pool.
            ``(B) Interest.--Interest on prepaid or defaulted 
        debentures shall accrue and be guaranteed by the Secretary only 
        through the date of payment of the guarantee.
            ``(C) Redemption.--At any time during its term, a trust 
        certificate may be called for redemption due to prepayment or 
        default of all debentures.
    ``(c) Full Faith and Credit of the United States.--Section 381H(i) 
shall apply to any guarantee of a trust certificate issued by the 
Secretary under this section.
    ``(d) Subrogation and Ownership Rights.--
        ``(1) Subrogation.--If the Secretary pays a claim under a 
    guarantee issued under this section, the claim shall be subrogated 
    fully to the rights satisfied by the payment.
        ``(2) Ownership rights.--No Federal, State, or local law shall 
    preclude or limit the exercise by the Secretary of the ownership 
    rights of the Secretary in a debenture residing in a trust or pool 
    against which 1 or more trust certificates are issued under this 
    section.
    ``(e) Management and Administration.--
        ``(1) Registration.--The Secretary shall provide for a central 
    registration of all trust certificates issued under this section.
        ``(2) Creation of pools.--The Secretary may--
            ``(A) maintain such commercial bank accounts or investments 
        in obligations of the United States as may be necessary to 
        facilitate the creation of trusts or pools backed by debentures 
        guaranteed under this subtitle; and
            ``(B) issue trust certificates to facilitate the creation 
        of those trusts or pools.
        ``(3) Fidelity bond or insurance requirement.--Any agent 
    performing functions on behalf of the Secretary under this 
    paragraph shall provide a fidelity bond or insurance in such amount 
    as the Secretary considers to be necessary to fully protect the 
    interests of the United States.
        ``(4) Regulation of brokers and dealers.--The Secretary may 
    regulate brokers and dealers in trust certificates issued under 
    this section.
        ``(5) Electronic registration.--Nothing in this subsection 
    prohibits the use of a book-entry or other electronic form of 
    registration for trust certificates issued under this section.

``SEC. 384G. FEES.

    ``(a) In General.--The Secretary may charge such fees as the 
Secretary considers appropriate with respect to any guarantee or grant 
issued under this subtitle.
    ``(b) Trust Certificate.--Notwithstanding subsection (a), the 
Secretary shall not collect a fee for any guarantee of a trust 
certificate under section 384F, except that any agent of the Secretary 
may collect a fee approved by the Secretary for the functions described 
in section 384F(e)(2).
    ``(c) License.--
        ``(1) In general.--The Secretary may prescribe fees to be paid 
    by each applicant for a license to operate as a rural business 
    investment company under this subtitle.
        ``(2) Use of amounts.--Fees collected under this subsection--
            ``(A) shall be deposited in the account for salaries and 
        expenses of the Secretary; and
            ``(B) are authorized to be appropriated solely to cover the 
        costs of licensing examinations.

``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--In accordance with this section, the Secretary 
may make grants to rural business investment companies and to other 
entities, as authorized by this subtitle, to provide operational 
assistance to smaller enterprises financed, or expected to be financed, 
by the entities.
    ``(b) Terms.--Grants made under this section shall be made over a 
multiyear period (not to exceed 10 years) under such terms as the 
Secretary may require.
    ``(c) Use of Funds.--The proceeds of a grant made under this 
section may be used by the rural business investment company receiving 
the grant only to provide operational assistance in connection with an 
equity or prospective equity investment in a business located in a 
rural area.
    ``(d) Submission of Plans.--A rural business investment company 
shall be eligible for a grant under this section only if the rural 
business investment company submits to the Secretary, in such form and 
manner as the Secretary may require, a plan for use of the grant.
    ``(e) Grant Amount.--
        ``(1) Rural business investment companies.--The amount of a 
    grant made under this section to a rural business investment 
    company shall be equal to the lesser of--
            ``(A) 10 percent of the private capital raised by the rural 
        business investment company; or
            ``(B) $1,000,000.
        ``(2) Other entities.--The amount of a grant made under this 
    section to any entity other than a rural business investment 
    company shall be equal to the resources (in cash or in kind) raised 
    by the entity in accordance with the requirements applicable to 
    rural business investment companies under this subtitle.

``SEC. 384I. RURAL BUSINESS INVESTMENT COMPANIES.

    ``(a) Organization.--For the purpose of this subtitle, a rural 
business investment company shall--
        ``(1) be an incorporated body, a limited liability company, or 
    a limited partnership organized and chartered or otherwise existing 
    under State law solely for the purpose of performing the functions 
    and conducting the activities authorized by this subtitle;
        ``(2)(A) if incorporated, have succession for a period of not 
    less than 30 years unless earlier dissolved by the shareholders of 
    the rural business investment company; and
        ``(B) if a limited partnership or a limited liability company, 
    have succession for a period of not less than 10 years; and
        ``(3) possess the powers reasonably necessary to perform the 
    functions and conduct the activities.
    ``(b) Articles.--The articles of any rural business investment 
company--
        ``(1) shall specify in general terms--
            ``(A) the purposes for which the rural business investment 
        company is formed;
            ``(B) the name of the rural business investment company;
            ``(C) the area or areas in which the operations of the 
        rural business investment company are to be carried out;
            ``(D) the place where the principal office of the rural 
        business investment company is to be located; and
            ``(E) the amount and classes of the shares of capital stock 
        of the rural business investment company;
        ``(2) may contain any other provisions consistent with this 
    subtitle that the rural business investment company may determine 
    appropriate to adopt for the regulation of the business of the 
    rural business investment company and the conduct of the affairs of 
    the rural business investment company; and
        ``(3) shall be subject to the approval of the Secretary.
    ``(c) Capital Requirements.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    private capital of each rural business investment company shall be 
    not less than--
            ``(A) $5,000,000; or
            ``(B) $10,000,000, with respect to each rural business 
        investment company authorized or seeking authority to issue 
        participating securities to be purchased or guaranteed by the 
        Secretary under this subtitle.
        ``(2) Exception.--The Secretary may, in the discretion of the 
    Secretary and based on a showing of special circumstances and good 
    cause, permit the private capital of a rural business investment 
    company described in paragraph (1)(B) to be less than $10,000,000, 
    but not less than $5,000,000, if the Secretary determines that the 
    action would not create or otherwise contribute to an unreasonable 
    risk of default or loss to the Federal Government.
        ``(3) Adequacy.--In addition to the requirements of paragraph 
    (1), the Secretary shall--
            ``(A) determine whether the private capital of each rural 
        business investment company is adequate to ensure a reasonable 
        prospect that the rural business investment company will be 
        operated soundly and profitably, and managed actively and 
        prudently in accordance with the articles of the rural business 
        investment company;
            ``(B) determine that the rural business investment company 
        will be able to comply with the requirements of this subtitle;
            ``(C) require that at least 75 percent of the capital of 
        each rural business investment company is invested in rural 
        business concerns and not more than 10 percent of the 
        investments shall be made in an area containing a city of over 
        150,000 in the last decennial census and the Census Bureau 
        defined urbanized area containing or adjacent to that city;
            ``(D) ensure that the rural business investment company is 
        designed primarily to meet equity capital needs of the 
        businesses in which the rural business investment company 
        invests and not to compete with traditional small business 
        financing by commercial lenders; and
            ``(E) require that the rural business investment company 
        makes short-term non-equity investments of less than 5 years 
        only to the extent necessary to preserve an existing 
        investment.
      ``(d) Diversification of Ownership.--The Secretary shall ensure 
that the management of each rural business investment company licensed 
after the date of enactment of this subtitle is sufficiently 
diversified from and unaffiliated with the ownership of the rural 
business investment company so as to ensure independence and 
objectivity in the financial management and oversight of the 
investments and operations of the rural business investment company.

``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

    ``(a) In General.--Except as otherwise provided in this section and 
notwithstanding any other provision of law, the following banks, 
associations, and institutions are eligible both to establish and 
invest in any rural business investment company or in any entity 
established to invest solely in rural business investment companies:
        ``(1) Any bank or savings association the deposits of which are 
    insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et 
    seq.).
        ``(2) Any Farm Credit System institution described in section 
    1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
    ``(b) Limitation.--No bank, association, or institution described 
in subsection (a) may make investments described in subsection (a) that 
are greater than 5 percent of the capital and surplus of the bank, 
association, or institution.
    ``(c) Limitation on Rural Business Investment Companies Controlled 
by Farm Credit System Institutions.--If a Farm Credit System 
institution described in section 1.2(a) of the Farm Credit Act of 1971 
(12 U.S.C. 2002(a)) holds more than 15 percent of the shares of a rural 
business investment company, either alone or in conjunction with other 
System institutions (or affiliates), the rural business investment 
company shall not provide equity investments in, or provide other 
financial assistance to, entities that are not otherwise eligible to 
receive financing from the Farm Credit System under that Act (12 U.S.C. 
2001 et seq.).

``SEC. 384K. REPORTING REQUIREMENTS.

    ``(a) Rural Business Investment Companies.--Each rural business 
investment company that participates in the program established under 
this subtitle shall provide to the Secretary such information as the 
Secretary may require, including--
        ``(1) information relating to the measurement criteria that the 
    rural business investment company proposed in the program 
    application of the rural business investment company; and
        ``(2) in each case in which the rural business investment 
    company under this subtitle makes an investment in, or a loan or 
    grant to, a business that is not located in a rural area, a report 
    on the number and percentage of employees of the business who 
    reside in those areas.
    ``(b) Public Reports.--
        ``(1) In general.--The Secretary shall prepare and make 
    available to the public an annual report on the program established 
    under this subtitle, including detailed information on--
            ``(A) the number of rural business investment companies 
        licensed by the Secretary during the previous fiscal year;
            ``(B) the aggregate amount of leverage that rural business 
        investment companies have received from the Federal Government 
        during the previous fiscal year;
            ``(C) the aggregate number of each type of leveraged 
        instruments used by rural business investment companies during 
        the previous fiscal year and how each number compares to 
        previous fiscal years;
            ``(D) the number of rural business investment company 
        licenses surrendered and the number of rural business 
        investment companies placed in liquidation during the previous 
        fiscal year, identifying the amount of leverage each rural 
        business investment company has received from the Federal 
        Government and the type of leverage instruments each rural 
        business investment company has used;
            ``(E) the amount of losses sustained by the Federal 
        Government as a result of operations under this subtitle during 
        the previous fiscal year and an estimate of the total losses 
        that the Federal Government can reasonably expect to incur as a 
        result of the operations during the current fiscal year;
            ``(F) actions taken by the Secretary to maximize recoupment 
        of funds of the Federal Government expended to implement and 
        administer the Rural Business Investment Program under this 
        subtitle during the previous fiscal year and to ensure 
        compliance with the requirements of this subtitle (including 
        regulations);
            ``(G) the amount of Federal Government leverage that each 
        licensee received in the previous fiscal year and the types of 
        leverage instruments each licensee used;
            ``(H) for each type of financing instrument, the sizes, 
        types of geographic locations, and other characteristics of the 
        small business investment companies using the instrument during 
        the previous fiscal year, including the extent to which the 
        investment companies have used the leverage from each 
        instrument to make loans or equity investments in rural areas; 
        and
            ``(I) the actions of the Secretary to carry out this 
        subtitle.
        ``(2) Prohibition.--In compiling the report required under 
    paragraph (1), the Secretary may not--
            ``(A) compile the report in a manner that permits 
        identification of any particular type of investment by an 
        individual rural business investment company or small business 
        concern in which a rural business investment company invests; 
        and
            ``(B) may not release any information that is prohibited 
        under section 1905 of title 18, United States Code.

``SEC. 384L. EXAMINATIONS.

    ``(a) In General.--Each rural business investment company that 
participates in the program established under this subtitle shall be 
subject to examinations made at the direction of the Secretary in 
accordance with this section.
    ``(b) Assistance of Private Sector Entities.--An examination under 
this section may be conducted with the assistance of a private sector 
entity that has the qualifications and the expertise necessary to 
conduct such an examination.
    ``(c) Costs.--
        ``(1) In general.--The Secretary may assess the cost of an 
    examination under this section, including compensation of the 
    examiners, against the rural business investment company examined.
        ``(2) Payment.--Any rural business investment company against 
    which the Secretary assesses costs under this paragraph shall pay 
    the costs.
    ``(d) Deposit of Funds.--Funds collected under this section shall--
        ``(1) be deposited in the account that incurred the costs for 
    carrying out this section;
        ``(2) be made available to the Secretary to carry out this 
    section, without further appropriation; and
        ``(3) remain available until expended.

``SEC. 384M. INJUNCTIONS AND OTHER ORDERS.

    ``(a) In General.--
        ``(1) Application by secretary.--Whenever, in the judgment of 
    the Secretary, a rural business investment company or any other 
    person has engaged or is about to engage in any act or practice 
    that constitutes or will constitute a violation of a provision of 
    this subtitle (including any rule, regulation, order, or 
    participation agreement under this subtitle), the Secretary may 
    apply to the appropriate district court of the United States for an 
    order enjoining the act or practice, or for an order enforcing 
    compliance with the provision, rule, regulation, order, or 
    participation agreement.
        ``(2) Jurisdiction; relief.--The court shall have jurisdiction 
    over the action and, on a showing by the Secretary that the rural 
    business investment company or other person has engaged or is about 
    to engage in an act or practice described in paragraph (1), a 
    permanent or temporary injunction, restraining order, or other 
    order, shall be granted without bond.
    ``(b) Jurisdiction.--
        ``(1) In general.--In any proceeding under subsection (a), the 
    court as a court of equity may, to such extent as the court 
    considers necessary, take exclusive jurisdiction over the rural 
    business investment company and the assets of the rural business 
    investment company, wherever located.
        ``(2) Trustee or receiver.--The court shall have jurisdiction 
    in any proceeding described in paragraph (1) to appoint a trustee 
    or receiver to hold or administer the assets.
    ``(c) Secretary As Trustee or Receiver.--
        ``(1) Authority.--The Secretary may act as trustee or receiver 
    of a rural business investment company.
        ``(2) Appointment.--On the request of the Secretary, the court 
    shall appoint the Secretary to act as a trustee or receiver of a 
    rural business investment company unless the court considers the 
    appointment inequitable or otherwise inappropriate by reason of any 
    special circumstances involved.

``SEC. 384N. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

    ``(a) In General.--With respect to any rural business investment 
company that violates or fails to comply with this subtitle (including 
any rule, regulation, order, or participation agreement under this 
subtitle), the Secretary may, in accordance with this section--
        ``(1) void the participation agreement between the Secretary 
    and the rural business investment company; and
        ``(2) cause the rural business investment company to forfeit 
    all of the rights and privileges derived by the rural business 
    investment company under this subtitle.
    ``(b) Adjudication of Noncompliance.--
        ``(1) In general.--Before the Secretary may cause a rural 
    business investment company to forfeit rights or privileges under 
    subsection (a), a court of the United States of competent 
    jurisdiction must find that the rural business investment company 
    committed a violation, or failed to comply, in a cause of action 
    brought for that purpose in the district, territory, or other place 
    subject to the jurisdiction of the United States, in which the 
    principal office of the rural business investment company is 
    located.
        ``(2) Parties authorized to file causes of action.--Each cause 
    of action brought by the United States under this subsection shall 
    be brought by the Secretary or by the Attorney General.

``SEC. 384O. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.

    ``(a) Parties Deemed To Commit a Violation.--Whenever any rural 
business investment company violates this subtitle (including any rule, 
regulation, order, or participation agreement under this subtitle), by 
reason of the failure of the rural business investment company to 
comply with this subtitle or by reason of its engaging in any act or 
practice that constitutes or will constitute a violation of this 
subtitle, the violation shall also be deemed to be a violation and an 
unlawful act committed by any person that, directly or indirectly, 
authorizes, orders, participates in, causes, brings about, counsels, 
aids, or abets in the commission of any acts, practices, or 
transactions that constitute or will constitute, in whole or in part, 
the violation.
    ``(b) Fiduciary Duties.--It shall be unlawful for any officer, 
director, employee, agent, or other participant in the management or 
conduct of the affairs of a rural business investment company to engage 
in any act or practice, or to omit any act or practice, in breach of 
the fiduciary duty of the officer, director, employee, agent, or 
participant if, as a result of the act or practice, the rural business 
investment company suffers or is in imminent danger of suffering 
financial loss or other damage.
    ``(c) Unlawful Acts.--Except with the written consent of the 
Secretary, it shall be unlawful--
        ``(1) for any person to take office as an officer, director, or 
    employee of any rural business investment company, or to become an 
    agent or participant in the conduct of the affairs or management of 
    a rural business investment company, if the person--
            ``(A) has been convicted of a felony, or any other criminal 
        offense involving dishonesty or breach of trust; or
            ``(B) has been found liable in a civil action for damages, 
        or has been permanently or temporarily enjoined by an order, 
        judgment, or decree of a court of competent jurisdiction, by 
        reason of any act or practice involving fraud or breach of 
        trust; and
        ``(2) for any person to continue to serve in any of the 
    capacities described in paragraph (1), if--
            ``(A) the person is convicted of a felony or any other 
        criminal offense involving dishonesty or breach of trust; or
            ``(B) the person is found liable in a civil action for 
        damages, or is permanently or temporarily enjoined by an order, 
        judgment, or decree of a court of competent jurisdiction, by 
        reason of any act or practice involving fraud or breach of 
        trust.

``SEC. 384P. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

    ``Using the procedures established by the Secretary for removing or 
suspending a director or an officer of a rural business investment 
company, the Secretary may remove or suspend any director or officer of 
any rural business investment company.

``SEC. 384Q. CONTRACTING OF FUNCTIONS.

    ``(a) In General.--Notwithstanding any other provision of law, to 
carry out the day-to-day management and operation of the program 
authorized by this subtitle on behalf of the Secretary, the Secretary 
shall enter into an interagency agreement under section 1535 of title 
31, United States Code, with another Federal agency that has 
considerable expertise in operating a program under which capital is 
provided for equity investments in private sector companies.
    ``(b) Funding.--The costs incurred by a Federal agency entering 
into an agreement under subsection (a) shall be reimbursed in 
accordance with section 1535 of title 31, United States Code, from 
amounts made available under section 384S(a)(2).

``SEC. 384R. REGULATIONS.

    ``The Secretary may promulgate such regulations as the Secretary 
considers necessary to carry out this subtitle.

``SEC. 384S. FUNDING.

    ``(a) In General.--Notwithstanding any other provision of law, of 
the funds of the Commodity Credit Corporation, the Secretary shall make 
available--
        ``(1) such sums as may be necessary for the cost of 
    guaranteeing $280,000,000 of debentures under this subtitle; and
        ``(2) $44,000,000 to make grants under this subtitle.
    ``(b) Availability of Funds.--Funds transferred under subsection 
(a) shall remain available until expended.''.

SEC. 6030. RURAL STRATEGIC INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended by 
section 6029) is amended by adding at the end the following:

            ``Subtitle I--Rural Strategic Investment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to establish a rural strategic 
investment program--
        ``(1) to provide rural communities with flexible resources to 
    develop comprehensive, collaborative, and locally-based strategic 
    planning processes; and
        ``(2) to implement innovative community and economic 
    development strategies that optimize regional competitive 
    advantages.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
        ``(1) Benchmark.--The term `benchmark' means an annual set of 
    strategies and goals of a Regional Board established for the 
    purpose of measuring performance in meeting the regional plan of 
    the Regional Board.
        ``(2) Conference.--The term ``Conference'' means the National 
    Conference on Rural America conducted under section 385H.
        ``(3) Eligible area.--
            ``(A) In general.--The term `eligible area' means a 
        nonmetropolitan county (as defined by the Secretary) that has a 
        population of 50,000 inhabitants or less.
            ``(B) Inclusion.--
                ``(i) In general.--Subject to clause (ii), the term 
            `eligible area' includes an unincorporated or other area of 
            a county that has a population of more than 50,000 
            inhabitants if the unincorporated area or other area is 
            adjacent to an eligible rural area described in 
            subparagraph (A).
                ``(ii) Participation.--An area described in clause (i) 
            may be represented on a Regional Board.
            ``(C) Exclusion.--The term `eligible area' does not include 
        any area designated by the Secretary as a rural empowerment 
        zone or rural enterprise community.
        ``(4) Innovation grant.--The term `innovation grant' means an 
    innovation grant made by the National Board to a Regional Board 
    under section 385G.
        ``(5) National board.--The term `National Board' means the 
    National Board on Rural America established under section 385D(a).
        ``(6) National plan.--The term `national plan' means a national 
    strategic investment plan of the National Board developed under 
    section 385D(d)(3).
        ``(7) Planning grant.--The term `planning grant' means a 
    regional strategic investment planning grant made by the National 
    Board to a Regional Board under section 385F.
        ``(8) Program.--The term `program' means the rural strategic 
    investment program established under this subtitle.
        ``(9) Region.--The term `region' means the eligible areas 
    that--
            ``(A) are under the jurisdiction of a Regional Board; and
            ``(B) meet criteria established by the National Board not 
        later than 1 year after the date of enactment of this subtitle.
        ``(10) Regional board.--The term `Regional Board' means a 
    Regional Investment Board certified under section 385C(a).
        ``(11) Regional plan.--The term `regional plan' means a 
    regional strategic investment plan of a Regional Board developed 
    under section 385C(b)(3)(B).

``SEC. 385C. REGIONAL INVESTMENT BOARDS.

    ``(a) In General.--The National Board may certify a group 
representing the interests described in subsection (b)(2)(A) as a 
Regional Investment Board created to develop and implement a regional 
strategic investment plan for grants made under this subtitle to 
promote investment in eligible areas.
    ``(b) Requirements for Certification.--
        ``(1) In general.--A Regional Board shall meet the requirements 
    of this subsection for certification.
        ``(2) Composition.--
            ``(A) In general.--A Regional Board shall be composed of 
        residents of the region that broadly represent diverse public, 
        nonprofit, and private sector interests in investment in the 
        region, including (to the maximum extent practicable) 
        representatives of--
                ``(i) units of local government (including 
            multijurisdictional units of local government);
                ``(ii) in the case of regions with Indian populations, 
            Indian tribes (as defined in section 4 of the Indian Self-
            Determination and Education Assistance Act (25 U.S.C. 
            450b));
                ``(iii) private nonprofit community-based development 
            organizations;
                ``(iv) regional development organizations;
                ``(v) private business organizations;
                ``(vi) other entities and organizations, as determined 
            by the Regional Board; and
                ``(vii) consortia of entities and organizations 
            described in clauses (i) through (vii).
            ``(B) Local public-private representation.--Of the members 
        of a Regional Board, to the maximum extent practicable--
                ``(i) \1/2\ of the members shall be representatives of 
            units of local government and Indian tribes described in 
            subparagraph (A); and
                ``(ii) \1/2\ of the members shall be representatives of 
            nonprofit, regional, private, and other entities and 
            organizations described in subparagraph (A).
            ``(C) Ex-officio members.--
                ``(i) In general.--An officer or employee of a Federal 
            or State agency may serve as an ex-officio, non-voting 
            member of a Regional Board representing the agency.
                ``(ii) Conflicts.--Participation by a Federal officer 
            or employee in activities of the Regional Board shall not 
            constitute a violation of section 205 or 208 of title 18, 
            United States Code.
            ``(D) Certification.--To be certified by the National 
        Board, a Regional Board shall demonstrate to the National Board 
        that the Regional Board is broadly representative of the 
        interests described in subparagraph (A).
            ``(E) Appeals.--
                ``(i) In general.--Prior to certification of the 
            Regional Board by the National Board, representatives of 
            interests described in subparagraph (A) that participated 
            in the development of a Regional Board may appeal the 
            composition of the Regional Board to the National Board on 
            the ground that--

                    ``(I) the composition of the Regional Board does 
                not adequately reflect the purposes of the program; or
                    ``(II) the selection process for the Regional Board 
                unfairly disadvantaged those interests.

                ``(ii) Action by national board.--The National Board 
            shall act on any appeal of the composition of a Regional 
            Board before taking action on the certification of the 
            Regional Board.
        ``(3) Duties and purpose.--The organizational documents of the 
    proposed Regional Board shall demonstrate that, on certification, 
    the Regional Board shall--
            ``(A) create a collaborative, inclusive public-private 
        planning process;
            ``(B) develop, and submit to the National Board for 
        approval, a regional strategic investment plan that meets the 
        requirements of section 385F, with benchmarks, to promote 
        investment in eligible areas through the use of grants made 
        available under this subtitle;
            ``(C) implement the approved regional plan;
            ``(D) provide annual reports to the Secretary and the 
        National Board on progress made in achieving the benchmarks of 
        the regional plan, including an annual financial statement; and
            ``(E) select a non-Federal organization (such as a regional 
        development organization) in the local area served by the 
        Regional Board that has previous experience in the management 
        of Federal funds to serve as fiscal manager of any funds of the 
        Regional Board.

``SEC. 385D. NATIONAL BOARD ON RURAL AMERICA.

    ``(a) Establishment.--
        ``(1) In general.--The Secretary shall establish a National 
    Board on Rural America to carry out the rural strategic investment 
    program established under this subtitle.
        ``(2) Supervision and direction.--Except as otherwise provided 
    in this subtitle, the National Board shall be subject to the 
    general supervision and direction of the Secretary.
    ``(b) Composition.--
        ``(1) In general.--
            ``(A) Appointment.--In addition to the Secretary or the 
        designee of the Secretary, the National Board shall consist of 
        14 members appointed by the Secretary from among--
                ``(i) representatives of nationally recognized 
            entrepreneurship organizations;
                ``(ii) representatives of regional planning and 
            development organizations;
                ``(iii) representatives of community-based 
            organizations;
                ``(iv) elected members of county governments;
                ``(v) elected members of State legislatures;
                ``(vi) representatives of the rural philanthropic 
            community; and
                ``(vii) representatives of Indian tribes (as defined in 
            section 4 of the Indian Self-Determination and Education 
            Assistance Act (25 U.S.C. 450b)).
            ``(B) Recommendations.--In appointing the members of the 
        National Board under subparagraph (A), the Secretary shall 
        consider recommendations made by--
                ``(i) the chairman and ranking member of each of the 
            Committee on Agriculture of the House of Representatives 
            and the Committee on Agriculture, Nutrition, and Forestry 
            of the Senate;
                ``(ii) the Majority Leader of the Senate; and
                ``(iii) the Speaker of the House of Representatives.
        ``(3) Term of office.--
            ``(A) In general.--Subject to subparagraph (B), the term of 
        office of a member of the National Board appointed under 
        paragraph (1)(A) shall be 4 years.
            ``(B) Staggered initial terms.--Of the initial members of 
        the National Board appointed under paragraph (1)(A), the term 
        of office of--
                ``(i) 5 members shall be 4 years;
                ``(ii) 5 members shall be 3 years; and
                ``(iii) 4 members shall be 2 years.
        ``(4) Initial appointments.--Not later than 90 days after the 
    date of enactment of this subtitle, the Secretary shall appoint the 
    initial members of the National Board under paragraph (1)(A).
        ``(5) Ex-officio members.--
            ``(A) Special assistant to the president for rural 
        policy.--If appointed by the President under section 6406(1) of 
        the Farm Security and Rural Investment Act of 2002, the Special 
        Assistant to the President for Rural Policy shall serve as an 
        ex-officio, non-voting member of the National Board.
            ``(B) Other members.--In consultation with the chairman and 
        ranking member of each of the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, the Secretary may 
        appoint not more than 3 other officers or employees of the 
        Executive Branch to serve as ex-officio, non-voting members of 
        the National Board.
        ``(6) Vacancies.--A vacancy on the National Board shall be 
    filled in the same manner as the original appointment.
        ``(7) Compensation.--A member of the National Board shall 
    receive no compensation for service on the National Board, but 
    shall be reimbursed for travel and other expenses incurred in 
    carrying out the duties of the member of the National Board in 
    accordance with section 5702 and 5703 of title 5, United States 
    Code.
        ``(8) Chairperson.--The National Board shall select a 
    chairperson from among the members of the National Board.
        ``(9) Meetings.--
            ``(A) Time and place.--The National Board shall meet at the 
        call of the chairperson.
            ``(B) Quorum.--A quorum of the National Board shall consist 
        of a majority of the members.
            ``(C) Majority vote.--A decision of the National Board 
        shall be made by majority vote.
        ``(10) Federal status.--For purposes of Federal law, a member 
    of the National Board shall be considered a special Government 
    employee (as defined in section 202(a) of title 18, United States 
    Code).
        ``(11) Conflict of interest.--
            ``(A) In general.--Except as provided in subparagraph (C), 
        no member of the National Board shall vote on any matter 
        respecting any application for a grant or other particular 
        matter pending before the National Board in which, to the 
        knowledge of the member, the member, spouse, or child of the 
        member, partner, or organization in which the member is serving 
        as officer, director, trustee, partner, or employee, or any 
        person or organization with whom the member is negotiating or 
        has any arrangement concerning prospective employment, has a 
        financial interest.
            ``(B) Violations.--A violation of subparagraph (A) by a 
        member of the National Board shall be cause for removal of the 
        member, but shall not impair or otherwise affect the validity 
        of any otherwise lawful action by the National Board in which 
        the member participated.
            ``(C) Exception.--Subparagraph (A) shall not apply to the 
        extent a member of the National Board advises the National 
        Board of the nature of the particular matter in which the 
        member proposes to participate, if--
                ``(i) the member makes a full disclosure of the 
            financial interest; and
                ``(ii) prior to any participation by the member, the 
            National Board determines, by majority vote of the other 
            members of the National Board, that the financial interest 
            is too remote or too inconsequential to affect the 
            integrity of the services of the member to the National 
            Board in that matter.
    ``(c) Administrative Support.--The Secretary, on a reimbursable 
basis, may provide such administrative support to the National Board as 
the Secretary determines is necessary to carry out the duties of the 
National Board.
    ``(d) Duties.--The National Board shall--
        ``(1) certify Regional Boards in accordance with section 385C, 
    with the initial certification of Regional Boards occurring not 
    later than 540 days after the date of enactment of this subtitle;
        ``(2) approve, negotiate, or disapprove each regional plan that 
    is submitted by a Regional Board to the National Board under 
    section 385C;
        ``(3) develop, and submit to the Secretary for approval, a 
    national strategic investment plan;
        ``(4) use the amount received from the Secretary under section 
    385E to make planning grants and innovation grants to Regional 
    Boards and to otherwise carry out the program;
        ``(5) provide leadership and advice to Regional Boards on 
    issues, best practices, and emerging trends relating to rural 
    development;
        ``(6) evaluate the progress of each Regional Board in achieving 
    the benchmarks of the regional plan using annual reports submitted 
    under section 385C(b)(3)(D) and any other information that is 
    available to the Regional Board; and
        ``(7) submit an annual report on the performance of Regional 
    Boards and the program to--
            ``(A) the Committee on Agriculture of the House of 
        Representatives;
            ``(B) the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate; and
            ``(C) the Secretary.

``SEC. 385E. RURAL STRATEGIC INVESTMENT PROGRAM.

    ``(a) In General.--If the Secretary approves a national strategic 
investment plan submitted by the National Board, of the funds of the 
Commodity Credit Corporation, the Secretary shall transfer to the 
National Board $100,000,000, to remain available until expended, for 
the Board to use to make planning grants and innovation grants to 
Regional Boards and to otherwise carry out this subtitle.
    ``(b) Use by National Board.--Of the amount transferred by the 
Secretary to the National Board under subsection (a), the National 
Board shall use--
        ``(1) not less than $8,000,000 to make planning grants to 
    Regional Boards under section 385F;
        ``(2) not less than $87,000,000 to make innovation grants to 
    Regional Boards under section 385G; and
        ``(3) the remainder of the funds to carry out section 385H and 
    administer this subtitle (other than section 385H).

``SEC. 385F. REGIONAL STRATEGIC INVESTMENT PLANNING GRANTS.

    ``(a) In General.--The National Board shall use amounts made 
available under section 385E(b)(1) to make not fewer than 80 planning 
grants, on a competitive basis, to applicant Regional Boards to 
develop, maintain, evaluate, and report progress on regional strategic 
investment plans in accordance with section 385C and this section.
    ``(b) Regional Plans.--A regional plan for a region covered by a 
Regional Board shall, to the maximum extent practicable, cover--
        ``(1) basic infrastructure needs of the region;
        ``(2) basic services within the region;
        ``(3) opportunities for economic diversification and innovation 
    within the region, with particular attention to entrepreneurial 
    support and innovation;
        ``(4) the current and future human resource capacity of the 
    region;
        ``(5) access to market-based financing and venture and equity 
    capital in the region;
        ``(6) the development of innovative public and private 
    collaborations for investments in the region; and
        ``(7) other appropriate matters, as determined by the National 
    Board and the Secretary.
    ``(c) Preferences.--In awarding planning grants, the National Board 
shall give a preference to planning grants that will be used to address 
community capacity building and community sustainability.
    ``(d) Amount.--The total amount of a planning grant made to a 
Regional Board shall not exceed $100,000.
    ``(e) Cost Sharing.--
        ``(1) In general.--Subject to paragraphs (2) and (3), the share 
    of the costs of developing, maintaining, evaluating, and reporting 
    on a regional plan funded by a grant under this section shall not 
    exceed 50 percent.
        ``(2) Form.--
            ``(A) In general. Except as provided in subparagraph (B), a 
        Regional Board shall pay the grantee share of the costs 
        described in paragraph (1) in the form of cash, services, 
        materials, or other in-kind contributions.
            ``(B) Limitation.--A grantee shall not pay more than 50 
        percent of the grantee share in the form of services, 
        materials, or other in-kind contributions.
        ``(3) Increased share.--The National Board may increase the 
    share of the costs covered by a planning grant made to a Regional 
    Board under this section if a limited ability of the Regional Board 
    to pay would otherwise create a barrier to full participation in 
    the program.

``SEC. 385G. INNOVATION GRANTS.

    ``(a) In General.--The National Board shall use amounts made 
available under section 385E(b)(2) to make innovation grants, on a 
competitive basis, to Regional Boards to implement projects that are 
identified in the regional plans of the Regional Boards.
    ``(b) Eligibility.--
        ``(1) In general.--For a Regional Board to be eligible to 
    receive an innovation grant, the National Board shall determine 
    that--
            ``(A) the regional plan of a Regional Board meets the 
        requirements of this subtitle;
            ``(B) the management and organizational structure of the 
        Regional Board is sufficient to oversee grant projects;
            ``(C) the Regional Board will be able to provide the 
        grantee share required under this section; and
            ``(D) the Regional Board agrees to achieve, to the maximum 
        extent practicable, the performance-based benchmarks of the 
        regional plan.
        ``(2) Relationship to planning grants.--A Regional Board that 
    meets the requirements of paragraph (1) shall be eligible to 
    receive an innovation grant, regardless of whether the Regional 
    Board receives a planning grant.
    ``(c) Selection.--Subject to subsection (d), of the applications 
submitted by Regional Boards for innovation grants, the National Board 
shall, to the maximum extent practicable, select not fewer than 30 
regional boards to receive innovation grants.
    ``(d) Preferences.--In awarding innovation grants, the National 
Board shall give a preference (in order of priority) to Regional Boards 
that--
        ``(1) exhibit collaborative innovation and entrepreneurship, 
    particularly within a public-private partnership;
        ``(2) represent a broad coalition of interests described in 
    section 385C(b)(2)(A);
        ``(3) demonstrate a plan to leverage public (Federal and non-
    federal) and private funds and existing assets, including natural 
    assets and public infrastructure;
        ``(4) address gaps in existing basic services within a region;
        ``(5) address economic diversification, including agricultural 
    and non-agriculturally based economies, within a regional 
    framework;
        ``(6) demonstrate a plan to achieve multijurisdictional 
    regional planning and development, with particular evidence of 
    economic development successes within diverse stakeholder 
    frameworks; or
        ``(7) meet other community development needs identified by a 
    Regional Board.
    ``(e) Uses.--
        ``(1) Leverage.--A Regional Board shall prioritize projects, in 
    part, on the degree to which the Regional Board is able to leverage 
    additional funds for the implementation of the projects.
        ``(2) Purposes.--A Regional Board may use an innovation grant 
    provided for a region--
            ``(A) to support the development of critical infrastructure 
        necessary to facilitate economic development in the region;
            ``(B) to provide assistance to entities within the region 
        that provide basic public services;
            ``(C) to assist with job training, workforce development, 
        or other needs related to the development and maintenance of 
        strong local and regional economies;
            ``(D) to assist in the development of unique new 
        collaborations that link public, private, and philanthropic 
        resources to achieve collaboratively designed regional 
        advancement; and
            ``(E) to provide support to business investment.
        ``(3) Other department programs.--A Regional Board may not use 
    an innovation grant provided for a region for any purpose for which 
    funding may be obtained under any other rural development program 
    of the Department of Agriculture unless--
            ``(A) the Regional Board--
                ``(i) has submitted an application for the funding 
            under the other program; and
                ``(ii) withdraws the application; and
            ``(B) the National Board approves use of the innovation 
        grant for that purpose.
        ``(4) Operating expenses.--A Regional Board may use for 
    administrative costs in carrying out programs and activities 
    related to the grant the greater of--
            ``(A) $100,000; or
            ``(B) 5 percent of the amount of an innovation grant 
        provided.
    ``(f) Amount.--
        ``(1) In general.--The amount of an innovation grant made to a 
    Regional Board shall not exceed $3,000,000.
        ``(2) Availability.--The amount of an innovation grant made to 
    a Regional Board shall remain available until expended.
    ``(g) Cost Sharing.--
        ``(1) In general.--Subject to paragraphs (2) and (3), the share 
    of the costs of projects covered by an innovation grant made to a 
    Regional Board under this section shall not exceed 75 percent, as 
    determined by the National Board.
        ``(2) Form.--A Regional Board may pay the grantee share of the 
    costs of projects covered by an innovation grant in the form of 
    cash or services, materials, or other in-kind contributions.
        ``(3) Waiver of grantee share.--The National Board may waive 
    the grantee share of the costs of projects covered by an innovation 
    grant made to a Regional Board under this section if the National 
    Board determines that such a waiver is appropriate.
        ``(4) Other federal programs.--For the purpose of determining 
    grantee share requirements for any other Federal programs, funds 
    provided for innovation grants shall be considered to be non-
    Federal funds.
    ``(h) Negotiation.--The National Board may--
        ``(1) negotiate with a Regional Board on the substance, size, 
    and scope of a regional plan; and
        ``(2) approve an innovation grant for an amount that is lower 
    than the amount requested by the Regional Board.
    ``(i) Noncompliance.--If a Regional Board fails to comply with the 
requirements of this section, the National Board may take such actions 
as are necessary to obtain reimbursement of unused grant funds.
    ``(j) Other Uses.--The National Board may use not more than 5 
percent of the amounts made available for innovation grants--
        ``(1) to provide assistance to interests described in section 
    385C(b)(2)(A) to obtain certification of a Regional Board;
        ``(2) to provide assistance for emergent innovative 
    opportunities that are not covered by existing regional plans;
        ``(3) to provide technical assistance, research, organizational 
    support, and other capacity building infrastructure to support 
    existing Regional Boards;
        ``(4) to provide assistance for other entrepreneurial 
    opportunities to advance the goals of the program; or
        ``(5) to advance a more integrative rural policy framework for 
    the United States.
    ``(k) Transfers.--To ensure maximum use of funds provided under 
this subtitle, the National Board may transfer not more than 10 percent 
of the amount of funds made available between planning grants and 
innovation grants.

``SEC. 385H. NATIONAL CONFERENCE ON RURAL AMERICA.

    ``(a) In General.--The President shall call and conduct a National 
Conference on Rural America, which shall be held not earlier than 
November 1, 2002, and not later than October 30, 2004.
    ``(b) Purpose.--The purpose of the Conference shall be to bring 
together the resources of governmental agencies and the private and 
nonprofit sectors to develop--
        ``(1) policy recommendations and integrative strategies for 
    addressing the unique challenges facing rural areas of the United 
    States; and
        ``(2) an implementation plan, with outcome-based measurements, 
    for addressing the challenges.
    ``(c) Composition.--
        ``(1) In general.--The Conference shall be comprised of--
            ``(A) representatives of organizations devoted to rural 
        development;
            ``(B) Members of Congress, including the chairman and 
        ranking member of each of the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate;
            ``(C) representatives of the Department of Agriculture and 
        other Federal agencies;
            ``(D) State, local, and tribal elected officials and 
        representatives;
            ``(E) representatives of colleges and universities, State 
        and tribal extension services, and State rural development 
        councils; and
            ``(F) individuals with specialized knowledge of and 
        expertise in rural and community development, cooperative 
        business, agricultural credit, venture capital, health care, 
        and rural demography.
        ``(2) Selection.--Of the participants in the Conference 
    described in paragraph (1)--
            ``(A) \1/3\ of the members shall be selected by the 
        President;
            ``(B) \1/3\ of the members shall be selected by the 
        Chairman and the ranking member of the Committee on Agriculture 
        of the House of Representatives; and
            ``(C) \1/3\ of the members shall be selected by the 
        Chairman and the ranking member of the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.
        ``(3) Representation.--In selecting the participants of the 
    Conference, the President and the Chairman of each Committee 
    referred to in paragraph (2) shall ensure, to the maximum extent 
    practicable, that the participants are representative of the 
    ethnic, racial, and linguistic diversity of rural areas of the 
    United States.
    ``(d) Report.--
        ``(1) Report to president.--Not later than 120 days after the 
    termination of the Conference, the Conference shall submit to the 
    President a report that contains the findings and recommendations 
    of the Conference, including findings and recommendations to 
    address needs related to--
            ``(A) telecommunications;
            ``(B) rural health issues;
            ``(C) transportation;
            ``(D) opportunities for economic diversification and 
        innovation within rural America, with particular attention to 
        entrepreneurial support and innovation;
            ``(E) the current and future human resource capacity of 
        rural America;
            ``(F) access to market-based financing and venture and 
        equity capital in rural America; and
            ``(G) the development of innovative public and private 
        collaborations for investments in rural America.
        ``(2) Report made public and to congress.--Not later than 90 
    days after receipt by the President, the President shall--
            ``(A) make the report public; and
            ``(B) transmit to the Committee on Agriculture of the House 
        of Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a copy of the report and a statement 
        of the President containing recommendations for implementing 
        the report.
        ``(3) Publication and distribution.--
            ``(A) In general.--The Conference shall publish and 
        distribute the report described in paragraph (1).
            ``(B) Mandatory distribution.--The Conference shall provide 
        a copy of a report published under subparagraph (A), at no 
        cost, to--
                ``(i) each Federal depository library; and
                ``(ii) on request, each State, tribal, and local 
            elected official in a rural area of the United States.
    ``(e) Funding.--Not later than 180 days after the establishment of 
the National Board, the National Board shall transfer not more than 
$2,000,000 to the Office of the President to carry out this section, to 
remain available until expended.''.

SEC. 6031. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
              APPLICATIONS.

    (a) Definition of Application.--In this section, the term 
``application'' does not include an application for a loan or grant 
that, as of the date of enactment of this Act, is in the preapplication 
phase of consideration under regulations of the Secretary of 
Agriculture in effect on the date of enactment of this Act.
    (b) Use of Funds.--Subject to subsection (c), the Secretary of 
Agriculture shall use funds made available under subsection (d) to 
provide funds for applications that are pending on the date of 
enactment of this Act for--
        (1) water or waste disposal grants or direct loans under 
    paragraph (1) or (2) of section 306(a) of the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1926(a)); and
        (2) emergency community water assistance grants under section 
    306A of that Act (7 U.S.C. 1926a).
    (c) Limitations.--
        (1) Appropriated amounts.--Funds made available under this 
    section shall be available to the Secretary to provide funds for 
    applications for loans and grants described in subsection (b) that 
    are pending on the date of enactment of this Act only to the extent 
    that funds for the loans and grants appropriated in the annual 
    appropriations Act for fiscal year 2002 have been exhausted.
        (2) Program requirements.--The Secretary may use funds made 
    available under this section to provide funds for a pending 
    application for a loan or grant described in subsection (b) only if 
    the Secretary processes, reviews, and approves the application in 
    accordance with regulations in effect on the date of enactment of 
    this Act.
        (3) Priority.--In providing funding under this section for 
    pending applications for loans or grants described in subsection 
    (b), the Secretary shall provide funding in the following order of 
    priority (until funds made available under this section are 
    exhausted):
            (A) Pending applications for water systems.
            (B) Pending applications for waste disposal systems.
    (d) Funding.--Notwithstanding any other provision of law, of the 
funds of the Commodity Credit Corporation, the Secretary shall use 
$360,000,000 to carry out this section, to remain available until 
expended.

             Subtitle B--Rural Electrification Act of 1936

SEC. 6101. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

    (a) In General.--The Rural Electrification Act of 1936 is amended 
by inserting after section 313 (7 U.S.C. 940c) the following:

``SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION 
              OR TELEPHONE PURPOSES.

    ``(a) In General.--Subject to subsection (b), the Secretary shall 
guarantee payments on bonds or notes issued by cooperative or other 
lenders organized on a not-for-profit basis if the proceeds of the 
bonds or notes are used to make loans for any electrification or 
telephone purpose eligible for assistance under this Act, including 
section 4 or 201 or to refinance bonds or notes issued for such 
purposes.
    ``(b) Limitations.--
        ``(1) Outstanding loans.--A lender shall not receive a 
    guarantee under this section for a bond or note if, at the time of 
    the guarantee, the total principal amount of such guaranteed bonds 
    or notes outstanding of the lender would exceed the principal 
    amount of outstanding loans of the lender for electrification or 
    telephone purposes that have been made concurrently with loans 
    approved for such purposes under this Act.
        ``(2) Generation of electricity.--The Secretary shall not 
    guarantee payment on a bond or note issued by a lender, the 
    proceeds of which are used for the generation of electricity.
        ``(3) Qualifications.--The Secretary may deny the request of a 
    lender for the guarantee of a bond or note under this section if 
    the Secretary determines that--
            ``(A) the lender does not have appropriate expertise or 
        experience or is otherwise not qualified to make loans for 
        electrification or telephone purposes;
            ``(B) the bond or note issued by the lender would not be 
        investment grade quality without a guarantee; or
            ``(C) the lender has not provided to the Secretary a list 
        of loan amounts approved by the lender that the lender 
        certifies are for eligible purposes described in subsection 
        (a).
        ``(4) Interest rate reduction.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        a lender may not use any amount obtained from the reduction in 
        funding costs as a result of the guarantee of a bond or note 
        under this section to reduce the interest rate on a new or 
        outstanding loan.
            ``(B) Concurrent loans.--A lender may use any amount 
        described in subparagraph (A) to reduce the interest rate on a 
        loan if the loan is--
                ``(i) made by the lender for electrification or 
            telephone projects that are eligible for assistance under 
            this Act; and
                ``(ii) made concurrently with a loan approved by the 
            Secretary under this Act for such a project, as provided in 
            section 307.
    ``(c) Fees.--
        ``(1) In general.--A lender that receives a guarantee issued 
    under this section on a bond or note shall pay a fee to the 
    Secretary.
        ``(2) Amount.--The amount of an annual fee paid for the 
    guarantee of a bond or note under this section shall be equal to 30 
    basis points of the amount of the unpaid principal of the bond or 
    note guaranteed under this section.
        ``(3) Payment.--A lender shall pay the fees required under this 
    subsection on a semiannual basis.
        ``(4) Rural economic development subaccount.--Subject to 
    subsection (e)(2), fees collected under this subsection shall be--
            ``(A) deposited into the rural economic development 
        subaccount maintained under section 313(b)(2)(A), to remain 
        available until expended; and
            ``(B) used for the purposes described in section 
        313(b)(2)(B).
    ``(d) Guarantees.--
        ``(1) In general.--A guarantee issued under this section 
    shall--
            ``(A) be for the full amount of a bond or note, including 
        the amount of principal, interest, and call premiums;
            ``(B) be fully assignable and transferable; and
            ``(C) represent the full faith and credit of the United 
        States.
        ``(2) Limitation.--To ensure that the Secretary has the 
    resources necessary to properly examine the proposed guarantees, 
    the Secretary may limit the number of guarantees issued under this 
    section to 5 per year.
        ``(3) Department opinion.--On the timely request of a lender, 
    the General Counsel of the Department of Agriculture shall provide 
    the Secretary with an opinion regarding the validity and authority 
    of a guarantee issued to the lender under this section.
    ``(e) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated such 
    sums as are necessary to carry out this section.
        ``(2) Fees.--To the extent that the amount of funds 
    appropriated for a fiscal year under paragraph (1) are not 
    sufficient to carry out this section, the Secretary may use up to 
    \1/3\ of the fees collected under subsection (c) for the cost of 
    providing guarantees of bonds and notes under this section before 
    depositing the remainder of the fees into the rural economic 
    development subaccount maintained under section 313(b)(2)(A).
    ``(f) Termination.--The authority provided under this section shall 
terminate on September 30, 2007.''.
    (b) Administration.--
        (1) Regulations.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary of Agriculture shall 
    promulgate regulations to carry out the amendments made by this 
    section.
        (2) Implementation.--Not later than 240 days after the date of 
    enactment of this Act, the Secretary shall implement the amendment 
    made by this section.

SEC. 6102. EXPANSION OF 911 ACCESS.

    Title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et 
seq.) is amended by adding at the end the following:

``SEC. 315. EXPANSION OF 911 ACCESS.

    ``(a) In General.--Subject to such terms and conditions as the 
Secretary may prescribe, the Secretary may make telephone loans under 
this title to borrowers of loans made by the Rural Utilities Service, 
State or local governments, Indian tribes (as defined in section 4 of 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b)), or other public entities for facilities and equipment to expand 
or improve 911 access and integrated emergency communications systems 
in rural areas.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.''.

SEC. 6103. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL AREAS.

    (a) In General.--The Rural Electrification Act of 1936 (7 U.S.C. 
901 et seq.) is amended by adding at the end the following:

                   ``TITLE VI--RURAL BROADBAND ACCESS

``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    ``(a) Purpose.--The purpose of this section is to provide loans and 
loan guarantees to provide funds for the costs of the construction, 
improvement, and acquisition of facilities and equipment for broadband 
service in eligible rural communities.
    ``(b) Definitions.--In this section:
        ``(1) Broadband service.--The term `broadband service' means 
    any technology identified by the Secretary as having the capacity 
    to transmit data to enable a subscriber to the service to originate 
    and receive high-quality voice, data, graphics, and video.
        ``(2) Eligible rural community.--The term `eligible rural 
    community' means any incorporated or unincorporated place that--
            ``(A) has not more than 20,000 inhabitants, based on the 
        most recent available population statistics of the Bureau of 
        the Census; and
            ``(B) is not located in an area designated as a standard 
        metropolitan statistical area.
    ``(c) Loans and Loan Guarantees.--
        ``(1) In general.--The Secretary shall make or guarantee loans 
    to eligible entities described in subsection (d) to provide funds 
    for the construction, improvement, or acquisition of facilities and 
    equipment for the provision of broadband service in eligible rural 
    communities.
        ``(2) Priority.--In making or guaranteeing loans under 
    paragraph (1), the Secretary shall give priority to eligible rural 
    communities in which broadband service is not available to 
    residential customers.
    ``(d) Eligible Entities.--
        ``(1) In general.--To be eligible to obtain a loan or loan 
    guarantee under this section, an entity shall--
            ``(A) have the ability to furnish, improve, or extend a 
        broadband service to an eligible rural community; and
            ``(B) submit to the Secretary a proposal for a project that 
        meets the requirements of this section.
        ``(2) State and local governments.--A State or local government 
    (including any agency, subdivision, or instrumentality thereof 
    (including consortia thereof)) shall be eligible for a loan or loan 
    guarantee under this section to provide broadband services to an 
    eligible rural community only if, not later than 90 days after the 
    Administrator has promulgated regulations to carry out this 
    section, no other eligible entity is already offering, or has 
    committed to offer, broadband services to the eligible rural 
    community.
        ``(3) Subscriber lines.--An entity shall not be eligible to 
    obtain a loan or loan guarantee under this section if the entity 
    serves more than 2 percent of the telephone subscriber lines 
    installed in the aggregate in the United States.
    ``(e) Broadband Service.--The Secretary shall, from time to time as 
advances in technology warrant, review and recommend modifications of 
rate-of-data transmission criteria for purposes of the identification 
of broadband service technologies under subsection (b)(1).
    ``(f) Technological Neutrality.--For purposes of determining 
whether or not to make a loan or loan guarantee for a project under 
this section, the Secretary shall use criteria that are technologically 
neutral.
    ``(g) Terms and Conditions for Loans and Loan Guarantees.--
Notwithstanding any other provision of law, a loan or loan guarantee 
under subsection (c) shall--
        ``(1) bear interest at an annual rate of, as determined by the 
    Secretary--
            ``(A) in the case of a direct loan--
                ``(i) the cost of borrowing to the Department of the 
            Treasury for obligations of comparable maturity; or
                ``(ii) 4 percent; and
            ``(B) in the case of a guaranteed loan, the current 
        applicable market rate for a loan of comparable maturity; and
        ``(2) have a term not to exceed the useful life of the assets 
    constructed, improved, or acquired with the proceeds of the loan or 
    extension of credit.
    ``(h) Use of Loan Proceeds to Refinance Loans for Deployment of 
Broadband Service.--Notwithstanding any other provision of this Act, 
the proceeds of any loan made or guaranteed by the Secretary under this 
Act may be used by the recipient of the loan for the purpose of 
refinancing an outstanding obligation of the recipient on another 
telecommunications loan made under this Act if the use of the proceeds 
for that purpose will further the construction, improvement, or 
acquisition of facilities and equipment for the provision of broadband 
service in eligible rural communities.
    ``(i) Reports.--Not later than 1 year after the date of enactment 
of this section, and biennially thereafter, the Administrator shall 
submit to Congress a report that--
        ``(1) describes how the Administrator determines under 
    subsection (a)(1) that a service enables a subscriber to originate 
    and receive high-quality voice, data, graphics, and video; and
        ``(2) provides a detailed list of services that have been 
    granted assistance under this section.
    ``(j) Funding.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    of the funds of the Commodity Credit Corporation, the Secretary 
    shall make available to carry out this section--
            ``(A) $20,000,000 for each of fiscal years 2002 through 
        2005, to remain available until expended; and
            ``(B) $10,000,000 for each of fiscal years 2006 and 2007, 
        to remain available until expended.
        ``(2) Television funds.--
            ``(A) In general.--The Secretary shall be entitled to 
        receive, shall accept, and shall use to carry out this section, 
        without further appropriation any funds made available under 
        section 1011(a)(2)(B) of the Launching Our Communities' Access 
        to Local Television Act of 2000 (47 U.S.C. 1109(a)(2)(B)).
            ``(B) Use of television funds.--The Secretary shall use any 
        funds received under subparagraph (A) in equal amounts for each 
        remaining fiscal year on receipt of the funds (including the 
        fiscal year of receipt) through fiscal year 2007.
        ``(3) Authorization of appropriations.--In addition to funds 
    otherwise made available under this subsection, there are 
    authorized to be appropriated such sums as necessary to carry out 
    this section for each of fiscal years 2003 through 2007.
        ``(4) Allocation of funds.--
            ``(A) In general.--From amounts made available for each 
        fiscal year under this subsection, the Secretary shall--
                ``(i) establish a national reserve for loans and loan 
            guarantees to eligible entities in States under this 
            section; and
                ``(ii) allocate amounts in the reserve to each State 
            for each fiscal year for loans and loan guarantees to 
            eligible entities in the State.
            ``(B) Amount.--The amount of an allocation made to a State 
        for a fiscal year under subparagraph (A) shall bear the same 
        ratio to the amount of allocations made for all States for the 
        fiscal year as the number of communities with a population of 
        2,500 inhabitants or less in the State bears to the number of 
        communities with a population of 2,500 inhabitants or less in 
        all States, as determined on the basis of the latest available 
        census.
            ``(C) Unobligated amounts.--Any amounts in the reserve 
        established for a State for a fiscal year under subparagraph 
        (B) that are not obligated by April 1 of the fiscal year shall 
        be available to the Secretary to make loans and loan guarantees 
        under this section to eligible entities in any State, as 
        determined by the Secretary.
    ``(k) Termination of Authority.--No loan or loan guarantee may be 
made under this section after September 30, 2007.''.
    (b) Regulations.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary of Agriculture shall 
    promulgate such regulations as are necessary to implement the 
    amendment made by subsection (a).
        (2) Procedure.--The promulgation of the regulations shall be 
    made without regard to--
            (A) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (B) 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
            (C) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
        (3) Congressional review of agency rulemaking.--In carrying out 
    this subsection, the Secretary shall use the authority provided 
    under section 808 of title 5, United States Code.

   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 6201. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              CORPORATION.

    (a) Repeal of Corporation Authorization.--Subtitle G of title XVI 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5901 et seq.) is repealed.
    (b) Disposition of Assets.--On the date of enactment of this Act--
        (1) the assets, both tangible and intangible, of the 
    Alternative Agricultural Research and Commercialization Corporation 
    (referred to in this section as the ``Corporation''), including the 
    funds in the Alternative Agricultural Research and 
    Commercialization Revolving Fund as of the date of enactment of 
    this Act, are transferred to the Secretary of Agriculture; and
        (2) notwithstanding the Federal Property and Administrative 
    Services Act of 1949 (40 U.S.C. 471 et seq.) and any other law that 
    prescribes procedures for procurement, use, and disposal of 
    property by a Federal agency, the Secretary shall have authority to 
    manage and dispose of the assets transferred under paragraph (1) in 
    a manner that, to the maximum extent practicable, provides the best 
    value to the Federal Government.
    (c) Use of Assets.--
        (1) In general.--Funds transferred under subsection (b), and 
    any income from assets or proceeds from the sale of assets 
    transferred under subsection (b), shall be deposited in an account 
    in the Treasury, and shall remain available to the Secretary until 
    expended, without further appropriation, to pay--
            (A) any claims against, or obligations of, the Corporation; 
        and
            (B) the costs incurred by the Secretary in carrying out 
        this section.
        (2) Final disposition.--On final disposition of all assets 
    transferred under subsection (b), any funds remaining in the 
    account described in paragraph (1) shall be transferred into 
    miscellaneous receipts in the Treasury.
    (d) Conforming Amendments.--
        (1) Section 5315 of title 5, United States Code, is amended by 
    striking ``Executive Director of the Alternative Agricultural 
    Research and Commercialization Corporation''.
        (2) Section 730 of the Federal Agriculture Improvement and 
    Reform Act of 1996 (7 U.S.C. 5902 note; Public Law 104-127) is 
    repealed.
        (3) Section 211(b) of the Department of Agriculture 
    Reorganization Act of 1994 (7 U.S.C. 6911(b)) is amended by 
    striking paragraph (5).
        (4) Section 404(d) of the Agricultural Research, Extension, and 
    Education Reform Act of 1998 (7 U.S.C. 7624(d)) is amended--
            (A) by striking paragraph (2); and
            (B) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively.
        (5) The Herger-Feinstein Quincy Library Group Forest Recovery 
    Act (16 U.S.C. 2104; Public Law 105-277; 112 Stat. 2681-305) is 
    amended by striking subsection (m).
        (6) Section 9101(3) of title 31, United States Code, is amended 
    by striking subparagraph (Q).

SEC. 6202. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    Subtitle H of title XVI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 is amended by inserting after section 1669 (7 U.S.C. 
5922) the following:

``SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    ``(a) Definitions.--In this section:
        ``(1) Development center.--The term `development center' 
    means--
            ``(A) the North Central Regional Center for Rural 
        Development;
            ``(B) the Northeast Regional Center for Rural Development 
        or its designee;
            ``(C) the Southern Rural Development Center; and
            ``(D) the Western Rural Development Center or its designee.
        ``(2) Extension program.--The term `extension program' means 
    the rural electronic commerce extension program established under 
    subsection (b).
        ``(3) Microenterprise.--The term `microenterprise' means a 
    commercial enterprise that has 5 or fewer employees, 1 or more of 
    whom own the enterprise.
        ``(4) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture, acting through the Administrator of the Cooperative 
    State Research, Education, and Extension Service.
        ``(5) Small business.--The term `small business' has the 
    meaning given the term `small-business concern' by section 3(a) of 
    the Small Business Act (15 U.S.C. 632(a)).
    ``(b) Establishment.--The Secretary shall establish a rural 
electronic commerce extension program to expand and enhance electronic 
commerce practices and technology to be used by small businesses and 
microenterprises in rural areas.
    ``(c) Grants.--
        ``(1) In general.--The Secretary shall carry out the program 
    established under subsection (b) by making--
            ``(A) grants to each of the development centers; and
            ``(B) competitive grants to land-grant colleges and 
        universities (or consortia of land-grant colleges and 
        universities) and to colleges and universities (including 
        community colleges) with agricultural or rural development 
        programs--
                ``(i) to develop and facilitate innovative rural 
            electronic commerce business strategies; and
                ``(ii) to assist small businesses and microenterprises 
            in identifying, adapting, implementing, and using 
            electronic commerce business practices and technologies.
        ``(2) Eligibility.--The selection criteria established for 
    grants awarded under paragraph (1)(B) shall include--
            ``(A) the ability of an applicant to provide training and 
        education on best practices, technology transfer, adoption, and 
        use of electronic commerce in rural communities by small 
        businesses and microenterprises;
            ``(B) the extent and geographic diversity of the area 
        served by the proposed project or activity under the extension 
        program;
            ``(C) in the case of a land-grant college or university, 
        the extent of participation of the land-grant college or 
        university in the extension program (including any economic 
        benefits that would result from that participation);
            ``(D) the percentage of funding and in-kind commitments 
        from non-Federal sources that would be needed by and available 
        for a proposed project or activity under the extension program; 
        and
            ``(E) the extent of participation of low-income and 
        minority businesses or microenterprises in a proposed project 
        or activity under the extension program.
        ``(3) Non-federal share.--
            ``(A) In general.--As a condition of the receipt of funds 
        under this section, a development center or grant applicant 
        shall agree to obtain from non-Federal sources (including 
        State, local, nonprofit, or private sector sources) 
        contributions of an amount equal to 50 percent of the grant 
        amount.
            ``(B) Form.--The non-Federal share required under 
        subparagraph (A) may be provided in the form of in-kind 
        contributions.
            ``(C) Exception.--The non-Federal share required under 
        subparagraph (A) may be reduced to 25 percent if the grant 
        recipient serves low-income or minority-owned businesses or 
        microenterprises, as determined by the Secretary.
    ``(d) Report.--Not later than 2 years after the date of enactment 
of this section, 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 
describes--
        ``(1) the policies, practices, and procedures used to assist 
    rural communities in efforts to adopt and use electronic commerce 
    techniques; and
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2002 through 2007, of which not less than \1/3\ of the amount 
made available for each fiscal year shall be used to carry out 
activities under subsection (c)(1)(A).''.

SEC. 6203. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) In General.--Section 2335A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is amended by 
striking ``2002'' and inserting ``2007''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``1997'' and inserting 
``2007''.

            Subtitle D--SEARCH Grants for Small Communities

SEC. 6301. DEFINITIONS.

    In this subtitle:
        (1) Council.--The term ``council'' means an independent 
    citizens' council established by a State rural development director 
    under section 6302(c).
        (2) Environmental project.--
            (A) In general.--The term ``environmental project'' means a 
        project that--
                (i) improves environmental quality; and
                (ii) is necessary to comply with an applicable 
            environmental law (including a regulation).
            (B) Inclusion.--The term ``environmental project'' includes 
        an initial feasibility study of a project.
        (3) Region.--The term ``region'' means a geographic area of a 
    State, as determined by the State rural development director, in 
    coordination with the environmental protection director of the 
    State.
        (4) SEARCH grant.--The term ``SEARCH grant'' means a grant 
    awarded under section 6302(f).
        (5) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (6) Small community.--The term ``small community'' means an 
    incorporated or unincorporated rural community with a population of 
    2,500 inhabitants or less.
        (7) State.--The term ``State'' has the meaning given the term 
    in section 381A of the Consolidated Farm and Rural Development Act 
    (7 U.S.C. 2009).

SEC. 6302. SEARCH GRANT PROGRAM.

    (a) In General.--The Secretary, in coordination with the 
Administrator of the Environmental Protection Agency, may establish the 
SEARCH grant program.
    (b) Allocation to State Rural Development Directors.--
        (1) In general.--Subject to paragraph (2) and section 
    6304(a)(2), not later than 60 days after the date on which the 
    Director of the Office of Management and Budget apportions any 
    amounts made available under this subtitle for any of fiscal years 
    2002 through 2007, the Secretary, on request of a State rural 
    development director (in coordination with the environmental 
    protection director of the State), shall allocate to the State 
    rural development director an amount not to exceed $1,000,000, to 
    be used by the State rural development director to award SEARCH 
    grants under subsection (d).
        (2) Grants to states.--The total amount of funds allocated to 
    State rural development directors in all States other than Alaska, 
    Hawaii, or the 48 contiguous States for a fiscal year under this 
    subsection shall not exceed $1,000,000.
    (c) Independent Citizens' Council.--
        (1) Establishment.--The State rural development director of a 
    State shall establish an independent citizens' council to carry out 
    the duties described in this section.
        (2) Composition.--
            (A) In general.--A council shall be composed of 9 members, 
        appointed by the State rural development director, in 
        coordination with the environmental protection director of the 
        State.
            (B) Representation; residence.--Each member of a council 
        shall--
                (i) represent an individual region of the State, as 
            determined by the State rural development director; and
                (ii) reside in a small community in the State.
    (d) Eligibility.--A SEARCH grant shall be awarded under this 
section only to a small community for 1 or more environmental projects 
for which the small community--
        (1) needs funds to carry out initial feasibility or 
    environmental studies as required by Federal or State law before 
    applying to traditional funding sources; and
        (2) demonstrates that the small community has been unable to 
    obtain sufficient funding from traditional funding sources.
    (e) Applications.--To be eligible to receive a SEARCH grant, a 
small community in a State shall submit to the State rural development 
director of the State an application that includes--
        (1) a description of the proposed environmental project 
    (including an explanation of how the project would assist the small 
    community in complying with a Federal or State environmental law 
    (including a regulation);
        (2) an explanation of why the project is important to the small 
    community;
        (3) a description of all actions taken with respect to the 
    project as of the date of the application, including any attempt to 
    secure funding; and
        (4) a description of demonstrated need for funding for the 
    project.
    (f) Awards.--
        (1) In general.--Not later than May 1 of each fiscal year, a 
    State rural development director, in coordination with the council 
    and the environmental protection director of the State, shall--
            (A) review all applications received by the State rural 
        development director under subsection (e); and
            (B) award SEARCH grants to small communities based on--
                (i) an evaluation of whether the proposed project meets 
            the eligibility criteria under subsection (d); and
                (ii) the content of the application.
        (2) Administration.--In awarding a SEARCH grant, a State rural 
    development director--
            (A) shall award the funds for any recommended environmental 
        project in a timely and expeditious manner; and
            (B) shall not award a SEARCH grant to a grantee or project 
        in violation of any Federal or State law (including a 
        regulation).
        (3) Matching requirement.--A small community that receives a 
    SEARCH grant under this section may be required to provide matching 
    funds.
    (g) Unexpended Funds.--
        (1) In general.--If, for any fiscal year, any unexpended funds 
    remain after SEARCH grants are awarded by a State rural development 
    director under subsection (f), the State rural development 
    director, in coordination with the environmental protection 
    director of the State, may repeat the application and review 
    process so that any remaining funds are recommended for award, and 
    awarded, not later than July 30 of the fiscal year.
        (2) Retention of funds.--
            (A) In general.--Any unexpended funds that are not awarded 
        under subsection (f) or paragraph (1) shall be retained by the 
        State rural development director for award during the following 
        fiscal year.
            (B) Limitation.--A State SEARCH account that accumulates a 
        balance of unexpended funds described in subparagraph (A) in 
        excess of $2,000,000 shall be ineligible to receive additional 
        funds for SEARCH grants until such time as the State rural 
        development director awards grants in the amount of the excess.

SEC. 6303. REPORT.

    Not later than 30 days after the end of the first fiscal year for 
which SEARCH grants are awarded, and annually thereafter, the Secretary 
shall submit to the Committee on Energy and Commerce and the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
        (1) describes the number of SEARCH grants awarded during the 
    fiscal year;
        (2) identifies each small community that received a SEARCH 
    grant during the fiscal year;
        (3) describes the project or purpose for which each SEARCH 
    grant was awarded, including a statement of the benefit to public 
    health or the environment of the environmental project receiving 
    the grant funds; and
        (4) describes the status of each project or portion of a 
    project for which a SEARCH grant was awarded, including a project 
    or portion of a project for which a SEARCH grant was awarded for 
    any previous fiscal year.

SEC. 6304. FUNDING.

    (a) Allocation to State Rural Development Directors.--
        (1) Authorization of appropriations.--There is authorized to be 
    appropriated to carry out section 6302(b) $51,000,000 for each of 
    fiscal years 2002 through 2007, of which not to exceed $1,000,000 
    shall be used to make grants under section 6302(b)(2).
        (2) Actual appropriation.--If funds to carry out section 
    6302(b) are made available for a fiscal year in an amount that is 
    less than the amount authorized under paragraph (1) for the fiscal 
    year, the Secretary shall divide the appropriated funds for the 
    fiscal year equally among the 50 States.
    (b) Other Expenses.--There are authorized to be appropriated such 
sums as are necessary to carry out this subtitle (other than section 
6302(b)).

                       Subtitle E--Miscellaneous

SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    (a) In General.--Section 231 of the Agricultural Risk Protection 
Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended--
        (1) by redesignating subsections (b) through (d) as subsections 
    (c) through (e), respectively;
        (2) by striking subsection (a) and inserting the following:
    ``(a) Definition of Value-Added Agricultural Product.--
        ``(1) In general.--The term `value-added agricultural product' 
    means any agricultural commodity or product that--
            ``(A)(i) has undergone a change in physical state;
            ``(ii) was produced in a manner that enhances the value of 
        the agricultural commodity or product, as demonstrated through 
        a business plan that shows the enhanced value, as determined by 
        the Secretary; or
            ``(iii) is physically segregated in a manner that results 
        in the enhancement of the value of the agricultural commodity 
        or product; and
            ``(B) as a result of the change in physical state or the 
        manner in which the agricultural commodity or product was 
        produced or segregated--
                ``(i) the customer base for the agricultural commodity 
            or product has been expanded; and
                ``(ii) a greater portion of the revenue derived from 
            the marketing, processing, or physical segregation of the 
            agricultural commodity or product is available to the 
            producer of the commodity or product.
        ``(2) Inclusion.--The term `value-added agricultural product' 
    includes farm- or ranch-based renewable energy.
    ``(b) Grant Program.--
        ``(1) In general.--From amounts made available under paragraph 
    (4), the Secretary shall award competitive grants--
            ``(A) to an eligible independent producer (as determined by 
        the Secretary) of a value-added agricultural product to assist 
        the producer--
                ``(i) in developing a business plan for viable 
            marketing opportunities for the value-added agricultural 
            product; or
                ``(ii) in developing strategies that are intended to 
            create marketing opportunities for the producer; and
            ``(B) to an eligible agricultural producer group, farmer or 
        rancher cooperative, or majority-controlled producer-based 
        business venture (as determined by the Secretary) to assist the 
        entity--
                ``(i) in developing a business plan for viable 
            marketing opportunities in emerging markets for a value-
            added agricultural product; or
                ``(ii) in developing strategies that are intended to 
            create marketing opportunities in emerging markets for the 
            value-added agricultural product.
        ``(2) Amount of grant.--
            ``(A) In general.--The total amount provided under this 
        subsection to a grant recipient shall not exceed $500,000.
            ``(B) Majority-controlled producer-based business 
        ventures.--The amount of grants provided to majority-controlled 
        producer-based business ventures under paragraph (1)(B) for a 
        fiscal year may not exceed 10 percent of the amount of funds 
        that are used to make grants for the fiscal year under this 
        subsection.
        ``(3) Grantee strategies.--A grantee 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 product; or
            ``(B) to provide capital to establish alliances or business 
        ventures that allow the producer of the value-added 
        agricultural product to better compete in domestic or 
        international markets.
        ``(4) Funding.--Not later than 30 days after the date of 
    enactment of this paragraph, on October 1, 2002, and on each 
    October 1 thereafter through October 1, 2006, of the funds of the 
    Commodity Credit Corporation, the Secretary shall make available to 
    carry out this subsection $40,000,000, to remain available until 
    expended.'';
        (3) in subsection (c)(1) (as redesignated by paragraph (1))--
            (A) by striking ``subsection (a)(2)'' and inserting 
        ``subsection (b)(2)'';
            (B) by striking ``$5,000,000'' and inserting ``5 percent''; 
        and
            (C) by striking ``subsection (a)'' and inserting 
        ``subsection (b)''; and
        (4) in subsection (d) (as redesignated by paragraph (1)), by 
    striking ``subsections (a) and (b)'' and inserting ``subsections 
    (b) and (c)''.
    (b) Applicability.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by subsection (a) apply beginning on October 1, 
    2002.
        (2) Funding.--Funds made available under section 
    231(b)(4)(A)(i) of the Agricultural Risk Protection Act of 2000 (as 
    amended by subsection (a)(2)) shall be made available not later 
    than 30 days after the date of enactment of this Act.

SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    (a) Purpose.--The purpose of this section is to direct the 
Secretary of Agriculture to establish a demonstration program under 
which agricultural producers are provided--
        (1) technical assistance, consisting of engineering services, 
    applied research, scale production, and similar services, to enable 
    the agricultural producers to establish businesses to produce 
    value-added agricultural commodities or products;
        (2) assistance in marketing, market development, and business 
    planning; and
        (3) organizational, outreach, and development assistance to 
    increase the viability, growth, and sustainability of businesses 
    that produce value-added agricultural commodities or products.
    (b) Definitions.--In this section:
        (1) Program.--The term ``Program'' means the Agriculture 
    Innovation Center Demonstration Program established under 
    subsection (c).
        (2) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
    (c) Establishment of Program.--The Secretary shall establish a 
demonstration program, to be known as the ``Agriculture Innovation 
Center Demonstration Program'' under which the Secretary shall--
        (1) make grants to assist eligible entities in establishing 
    Agriculture Innovation Centers to enable agricultural producers to 
    obtain the assistance described in subsection (a); and
        (2) provide assistance to eligible entities in establishing 
    Agriculture Innovation Centers through the research and technical 
    services of the Department of Agriculture.
    (d) Eligibility Requirements.--
        (1) In general.--An entity shall be eligible for a grant and 
    assistance described in subsection (c) to establish an Agriculture 
    Innovation Center if--
            (A) the entity--
                (i) has provided services similar to the services 
            described in subsection (a); or
                (ii) demonstrates the capability of providing such 
            services;
            (B) the application of the entity for the grant and 
        assistance includes a plan, in accordance with regulations 
        promulgated by the Secretary, that outlines--
                (i) the support for the entity in the agricultural 
            community;
                (ii) the technical and other expertise of the entity; 
            and
                (iii) the goals of the entity for increasing and 
            improving the ability of local agricultural producers to 
            develop markets and processes for value-added agricultural 
            commodities or products;
            (C) the entity demonstrates that adequate resources (in 
        cash or in kind) are available, or have been committed to be 
        made available, to the entity, to increase and improve the 
        ability of local agricultural producers to develop markets and 
        processes for value-added agricultural commodities or products; 
        and
            (D) the Agriculture Innovation Center of the entity has a 
        board of directors established in accordance with paragraph 
        (2).
        (2) Board of directors.--Each Agriculture Innovation Center of 
    an eligible entity shall have a board of directors composed of 
    representatives of each of the following groups:
            (A) The 2 general agricultural organizations with the 
        greatest number of members in the State in which the eligible 
        entity is located.
            (B) The department of agriculture, or similar State 
        department or agency, of the State in which the eligible entity 
        is located.
            (C) Entities representing the 4 highest grossing 
        commodities produced in the State, determined on the basis of 
        annual gross cash sales.
    (e) Grants and Assistance.--
        (1) In general.--Subject to subsection (i), under the Program, 
    the Secretary shall make, on a competitive basis, annual grants to 
    eligible entities.
        (2) Maximum amount of grants.--A grant under paragraph (1) 
    shall be in an amount that does not exceed the lesser of--
            (A) $1,000,000; or
            (B) twice the dollar amount of the resources (in cash or in 
        kind) that the eligible entity demonstrates are available, or 
        have been committed to be made available, to the eligible 
        entity in accordance with subsection (d)(1)(C).
        (3) Maximum number of grants.--
            (A) First fiscal year of program.--In the first fiscal year 
        of the Program, the Secretary shall make grants to not more 
        than 5 eligible entities.
            (B) Second fiscal year of program.--In the second fiscal 
        year of the Program, the Secretary may make grants to--
                (i) the eligible entities to which grants were made 
            under subparagraph (A); and
                (ii) not more than 10 additional eligible entities.
        (4) State limitation.--
            (A) In general.--Subject to subparagraph (B), in the first 
        3 fiscal years of the Program, the Secretary shall not make a 
        grant under the Program to more than 1 entity in any 1 State.
            (B) Collaboration.--Nothing in subparagraph (A) precludes a 
        recipient of a grant under the Program from collaborating with 
        any other institution with respect to activities conducted 
        using the grant.
    (f) Use of Funds.--An eligible entity to which a grant is made 
under the Program may use the grant only for the following purposes 
(but only to the extent that the use is not described in section 231(d) 
of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; 
Public Law 106-224)):
        (1) Applied research.
        (2) Consulting services.
        (3) Hiring of employees, at the discretion of the board of 
    directors of the Agriculture Innovation Center of the eligible 
    entity.
        (4) The making of matching grants, each of which shall be in an 
    amount not to exceed $5,000, to agricultural producers, except that 
    the aggregate amount of all such matching grants made by the 
    eligible entity shall be not more than $50,000.
        (5) Legal services.
        (6) Any other related cost, as determined by the Secretary.
    (g) Research on Effects on the Agricultural Sector.--
        (1) In general.--Of the amount made available under subsection 
    (i) for each fiscal year, the Secretary shall use $300,000 to 
    support research at a university concerning the effects of projects 
    for value-added agricultural commodities or products on 
    agricultural producers and the commodity markets.
        (2) Research elements.--Research under paragraph (1) shall 
    systematically examine, using linked, long-term, global projections 
    of the agricultural sector, the potential effects of projects 
    described in subparagraph (A) on--
            (A) demand for agricultural commodities;
            (B) market prices;
            (C) farm income; and
            (D) Federal outlays on commodity programs.
    (h) Report to Congress.--
        (1) In general.--Not later than 3 years after the date on which 
    the last of the first 10 grants is made under the Program, 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 on--
            (A) the effectiveness of the Program in improving and 
        expanding the production of value-added agricultural 
        commodities or products; and
            (B) the effects of the Program on the economic viability of 
        agricultural producers.
        (2) Required elements.--The report under paragraph (1) shall--
            (A) include a description of the best practices and 
        innovations found at each of the Agriculture Innovation Centers 
        established under the Program; and
            (B) specify the number and type of activities assisted, and 
        the type of assistance provided, under the Program.
    (i) Funding.--Of the amount made available under section 231(a)(1) 
of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; 
Public Law 106-224) for each fiscal year, the Secretary shall use to 
carry out this section--
        (1) not less than $3,000,000 for fiscal year 2002; and
        (2) not less than $6,000,000 for each of fiscal years 2003 and 
    2004.

SEC. 6403. FUND FOR RURAL AMERICA.

    (a) In General.--Section 793 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 2204f) is repealed.
    (b) Conforming Amendment.--Section 2(b)(8)(B) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(8)(B)) is 
amended in the second sentence by striking ``smaller college or 
university (as described in section 793(c)(2)(ii) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
2204f(c)(2)(ii))'' and inserting ``college, university, or research 
foundation maintained by a college or university that ranks in the 
lowest \1/3\ of such colleges, universities, and research foundations 
on the basis of Federal research funds received''.

SEC. 6404. RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN GUARANTEES.

    (a) In General.--Section 1011(a) of the Launching Our Communities' 
Access to Local Television Act of 2000 (47 U.S.C. 1109(a)) is amended--
        (1) by striking ``For'' and inserting the following:
        ``(1) Authorization of appropriations.--For''; and
        (2) by adding at the end the following:
        ``(2) Commodity credit corporation funds.--
            ``(A) In general.--Notwithstanding any other provision of 
        law, subject to subparagraph (B), in addition to amounts made 
        available under paragraph (1), of the funds of the Commodity 
        Credit Corporation, the Secretary of Agriculture shall make 
        available for loan guarantees to carry out this title 
        $80,000,000 for the period beginning on the date of enactment 
        of this paragraph and ending on December 31, 2006, to remain 
        available until expended.
            ``(B) Broadband loans and loan guarantees.--
                ``(i) In general.--Amounts made available under 
            subparagraph (A) that are not obligated as of the release 
            date described in clause (ii) shall be available to the 
            Secretary to make loans and loan guarantees under section 
            601 of the Rural Electrification Act of 1936.
                ``(ii) Release date.--For purposes of clause (i), the 
            release date is the date that is the earlier of--

                    ``(I) the date the Secretary determines that at 
                least 75 percent of the designated market areas (as 
                defined in section 122(j) of title 17, United States 
                Code) not in the top 40 designated market areas 
                described in section 1004(e)(1)(C)(i) of the Launching 
                Our Communities' Access to Local Television Act of 2000 
                (47 U.S.C. 1103(e)(1)(C)(i)) have access to local 
                television broadcast signals for virtually all 
                households (as determined by the Secretary); or
                    ``(II) December 31, 2006.

            ``(C) Advanced appropriations.--Subsections (c) and 
        (h)(1)(B) of section 1004 and section 1005(n)(3)(B) shall not 
        apply to amounts made available under this paragraph.''.
    (b) Technical and Conforming Amendments.--
        (1) Approval of loan guarantees.--Section 1004 of the Launching 
    Our Communities' Access to Local Television Act of 2000 (47 U.S.C. 
    1103) is amended--
            (A) in subsection (b)(1)--
                (i) by striking ``section 5'' and inserting ``section 
            1005''; and
                (ii) by striking ``section 11'' and inserting ``section 
            1011'';
            (B) in subsection (d)(1), by striking ``section 3'' and 
        inserting ``section 1003''; and
            (C) in the first sentence of subsection (h)(2)(D), by 
        striking ``section 5'' and inserting ``section 1005''.
        (2) Administration of loan guarantees.--Section 1005 of the 
    Launching Our Communities' Access to Local Television Act of 2000 
    (47 U.S.C. 1104) is amended--
            (A) in subsection (a), by striking ``sections 3 and 4'' and 
        inserting ``sections 1003 and 1004'';
            (B) in subsection (b)--
                (i) in paragraph (1)(D), by striking ``section 
            6(a)(2)'' and inserting ``section 1006(a)(2)''; and
                (ii) in paragraph (3), by striking ``section 
            4(d)(3)(B)(iii)'' and inserting ``section 
            1004(d)(3)(B)(iii)''; and
            (C) in subsection (e)(3), by striking ``section 4(g)'' and 
        inserting ``section 1004(g)''.

SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT PROGRAM.

    (a) In General.--The Secretary of Agriculture may make grants to 
units of general local government and Indian tribes (as defined in 
section 4 of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450b)) to pay the cost of training firefighters and 
emergency medical personnel in firefighting, emergency medical 
practices, and responding to hazardous materials and bioagents in rural 
areas.
    (b) Use of Funds.--
        (1) Scholarships.--
            (A) In general.--Not less than 60 percent of the amounts 
        made available for competitively-awarded grants under this 
        section shall be used to provide grants to fund partial 
        scholarships for training of individuals at training centers 
        approved by the Secretary.
            (B) Priority.--In awarding grants under this paragraph, the 
        Secretary shall give priority to grant applicants that provide 
        for training within the region (or locality) of the applicant.
        (2) Grants for training centers.--
            (A) In general.--A grant under subsection (a) may be used 
        to provide financial assistance to State and regional centers 
        that provide training for firefighters and emergency medical 
        personnel for improvements to the training facility, equipment, 
        curricula, and personnel.
            (B) Limitation.--Not more than $750,000 shall be provided 
        to any single training center for any fiscal year under this 
        paragraph.
    (c) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section $10,000,000 
for each of fiscal years 2003 through 2007, to remain available until 
expended.

SEC. 6406. SENSE OF CONGRESS ON RURAL POLICY COORDINATION.

    It is the sense of Congress that the President should--
        (1) appoint a Special Assistant to the President for Rural 
    Policy;
        (2) designate within each Federal agency with jurisdiction over 
    rural programs or activities 1 or more senior officers or employees 
    to provide rural policy leadership for the agency; and
        (3) create an intergovernmental rural policy working group 
    comprised of--
            (A) the Special Assistant to the President for Rural 
        Policy, who should serve as Chairperson; and
            (B) the senior officers and employees designated under 
        paragraph (2).

                TITLE VII--RESEARCH AND RELATED MATTERS
                         Subtitle A--Extensions

SEC. 7101. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7102. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    Section 1417 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
        (1) in subsection (a)--
            (A) by striking ``and'' after ``economics,''; and
            (B) by inserting ``, and rural economic, community, and 
        business development'' before the period;
        (2) in subsection (b)--
            (A) in paragraph (1), by inserting ``, or in rural 
        economic, community, and business development'' before the 
        semicolon;
            (B) in paragraph (2), by inserting ``, or in rural 
        economic, community, and business development'' before the 
        semicolon;
            (C) in paragraph (3), by inserting ``, or teaching programs 
        emphasizing rural economic, community, and business 
        development'' before the semicolon;
            (D) in paragraph (4), by inserting ``, or programs 
        emphasizing rural economic, community, and business 
        development,'' after ``programs''; and
            (E) in paragraph (5), by inserting ``, or professionals in 
        rural economic, community, and business development'' before 
        the semicolon;
        (3) in subsection (d)--
            (A) in paragraph (1), by inserting ``, or in rural 
        economic, community, and business development,'' after 
        ``sciences''; and
            (B) in paragraph (2), by inserting ``, or in the rural 
        economic, community, and business development workforce,'' 
        after ``workforce''; and
        (4) in subsection (l), by striking ``2002'' and inserting 
    ``2007''.

SEC. 7103. POLICY RESEARCH CENTERS.

    Section 1419A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7104. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7105. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
              RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7106. NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is 
amended by striking ``2002'' and inserting ``2007''.

SEC. 7107. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7108. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
              PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
              AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
              UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``$15,000,000 for each of fiscal years 1996 through 2002'' and 
inserting ``$25,000,000 for each of fiscal years 2002 through 2007''.

SEC. 7110. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

    (a) Authorization.--Section 1448 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
is amended by striking ``2002'' each place it appears in subsections 
(a)(1) and (f) and inserting ``2007''.
    (b) Redesignation.--Section 1448 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
is amended--
        (1) in the section heading, by striking ``centennial'' and 
    inserting ``virtual''; and
        (2) by striking ``centennial'' each place it appears and 
    inserting ``virtual''.

SEC. 7111. HISPANIC-SERVING INSTITUTIONS.

    Section 1455(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
              AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7113. UNIVERSITY RESEARCH.

    Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended--
        (1) in subsection (a), by striking ``$850,000,000 for each of 
    the fiscal years 1991 through 2002'' and inserting ``such sums as 
    may be necessary for each of fiscal years 1991 through 2007''; and
        (2) in subsection (b), by striking ``$310,000,000 for each of 
    the fiscal years 1991 through 2002'' and inserting ``such sums as 
    may be necessary for each of fiscal years 1991 through 2007''.

SEC. 7114. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``$420,000,000 for fiscal year 1991, $430,000,000 for fiscal year 1992, 
$440,000,000 for fiscal year 1993, $450,000,000 for fiscal year 1994, 
and $460,000,000 for each of fiscal years 1995 through 2002'' and 
inserting ``such sums as may be necessary for each of fiscal years 1991 
through 2007''.

SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7116. AQUACULTURE RESEARCH FACILITIES.

    The first sentence of section 1477 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
amended by striking ``2002'' and inserting ``2007''.

SEC. 7117. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7118. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7119. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2002'' and 
inserting ``2007.

SEC. 7120. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925a(g)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7121. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7122. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2002'' 
and inserting ``2007''.

SEC. 7123. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
              RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7124. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is 
amended by striking ``2001'' and inserting ``2007''.
    (b) Authorization of Appropriations.--Section 404(h) of such Act (7 
U.S.C. 7624(h)) is amended by striking ``2002'' and inserting ``2007''.

SEC. 7125. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
              GRANTS PROGRAM.

    Section 406 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7626) is amended--
        (1) by redesignating subsection (e) as subsection (f);
        (2) by inserting after subsection (d) the following:
    ``(e) Term of Grant.--A grant under this section shall have a term 
of not more than 5 years.''; and
        (3) in subsection (f) (as so redesignated), by striking 
    ``2002'' and inserting ``2007''.

SEC. 7126. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (f) Institutional Capacity Building Grants.--Section 535 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended--
        (1) in subsection (b)(1), by striking ``2002'' and inserting 
    ``2007''; and
        (2) in subsection (c), by striking ``$1,700,000 for each of 
    fiscal years 1996 through 2002'' and inserting ``such sums as are 
    necessary for each of fiscal years 2002 through 2007''.

SEC. 7127. 1994 INSTITUTION RESEARCH GRANTS.

    Section 536(c) of the Equity in Educational Land-Grant Status Act 
of 1994 (7 U.S.C. 301 note) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7128. ENDOWMENT FOR 1994 INSTITUTIONS.

    The first sentence of section 533(b) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
striking ``$4,600,000'' and all that follows through the period and 
inserting ``such sums as are necessary to carry out this section for 
each of fiscal years 1996 through 2007.''.

SEC. 7129. PRECISION AGRICULTURE.

    Section 403(i) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7130. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7131. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, 
              AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA 
              INDICA.

    Section 408(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
        (1) by striking ``$5,200,000'' and inserting ``such sums as may 
    be necessary''; and
        (2) by striking ``2002'' and inserting ``2007''.

SEC. 7132. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7133. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

    Section 1408(h) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7134. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
              AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES 
              AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7135. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2002'' and inserting ``2007''.

SEC. 7136. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS 
              NATIONAL RESEARCH INITIATIVE.

    Section 2(b)(10) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7137. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended by striking ``2002'' and inserting ``2007''.

SEC. 7138. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``2002'' and inserting ``2007''.

SEC. 7139. AQUACULTURE.

    Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) 
is amended by striking ``2002'' each place it appears and inserting 
``2007''.

                       Subtitle B--Modifications

SEC. 7201. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Authorization of Appropriations.--Section 534(a)(1)(A) of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
is amended by striking ``$50,000'' and inserting ``$100,000''.
    (b) Change of Indian Student Count Formula.--Section 533(c)(4)(A) 
of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
301 note; Public Law 103-382) is amended by striking ``(as defined in 
section 390(3) of the Carl D. Perkins Vocational and Applied Technology 
Education Act, as such section was in effect on the day preceding the 
date of enactment of the Carl. D. Perkins Vocational and Applied 
Technology Education Amendments of 1998 (Oct. 31, 1998)) for each 1994 
Institution for the fiscal year'' and inserting ``(as defined in 
section 2(a) of the Tribally Controlled College or University 
Assistance Act of 1978 (25 U.S.C. 1801(a)))''.
    (c) Accreditation Requirement for Research Grants.--Section 
533(a)(3) of the Equity in Educational Land-Grant Status Act of 1994 (7 
U.S.C. 301 note; Public Law 103-382) is amended by striking ``sections 
534 and 535'' and inserting ``sections 534, 535, and 536''.
    (d) Technical Amendment To Reflect Name Changes.--Section 532 of 
the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
note; Public Law 103-382) is amended by striking paragraphs (1) through 
(30) and inserting the following:
        ``(1) Bay Mills Community College.
        ``(2) Blackfeet Community College.
        ``(3) Cankdeska Cikana Community College.
        ``(4) College of Menominee Nation.
        ``(5) Crownpoint Institute of Technology.
        ``(6) D-Q University.
        ``(7) Dine College.
        ``(8) Chief Dull Knife Memorial College.
        ``(9) Fond du Lac Tribal and Community College.
        ``(10) Fort Belknap College.
        ``(11) Fort Berthold Community College.
        ``(12) Fort Peck Community College.
        ``(13) Haskell Indian Nations University.
        ``(14) Institute of American Indian and Alaska Native Culture 
    and Arts Development.
        ``(15) Lac Courte Oreilles Ojibwa Community College.
        ``(16) Leech Lake Tribal College.
        ``(17) Little Big Horn College.
        ``(18) Little Priest Tribal College.
        ``(19) Nebraska Indian Community College.
        ``(20) Northwest Indian College.
        ``(21) Oglala Lakota College.
        ``(22) Salish Kootenai College.
        ``(23) Sinte Gleska University.
        ``(24) Sisseton Wahpeton Community College.
        ``(25) Si Tanka/Huron University.
        ``(26) Sitting Bull College.
        ``(27) Southwestern Indian Polytechnic Institute.
        ``(28) Stone Child College.
        ``(29) Turtle Mountain Community College.
        ``(30) United Tribes Technical College.
        ``(31) White Earth Tribal and Community College.''.
    (e) Report Recommending Criteria for Additional Eligible 
Entities.--Not later than 1 year after the date of enactment of this 
Act, the Secretary of Agriculture shall submit a report containing 
recommended criteria for designating additional 1994 Institutions to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate.

SEC. 7202. CARRYOVER FOR EXPERIMENT STATIONS.

    Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is amended by 
striking subsection (c) and inserting the following:
    ``(c) Carryover.--
        ``(1) In general.--The balance of any annual funds provided 
    under this Act to a State agricultural experiment station for a 
    fiscal year that remains unexpended at the end of the fiscal year 
    may be carried over for use during the following fiscal year.
        ``(2) Failure to expend full allotment.--
            ``(A) In general.--If any unexpended balance carried over 
        by a State is not expended by the end of the second fiscal 
        year, an amount equal to the unexpended balance shall be 
        deducted from the next succeeding annual allotment to the 
        State.
            ``(B) Redistribution.--Federal funds that are deducted 
        under subparagraph (A) for a fiscal year shall be redistributed 
        by the Secretary in accordance with the formula set forth in 
        section 3(c) to those States for which no deduction under 
        subparagraph (A) has been taken for that fiscal year.''.

SEC. 7203. AUTHORIZATION PERCENTAGES FOR RESEARCH AND EXTENSION FORMULA 
              FUNDS.

    (a) Extension.--Section 1444(a) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) 
is amended--
        (1) by striking ``(a) There'' and inserting the following:
    ``(a) Authorization of Appropriations.--
        ``(1) In general.--There'';
        (2) by striking the second sentence; and
        (3) in the third sentence, by striking ``Beginning'' through 
    ``6 per centum'' and inserting the following:
        ``(2) Minimum amount.--Beginning with fiscal year 2003, there 
    shall be appropriated under this section for each fiscal year an 
    amount that is not less than 15 percent'';
        (3) by striking ``Funds appropriated'' and inserting the 
    following:
        ``(3) Uses.--Funds appropriated''; and
        (4) by striking ``No more'' and inserting the following:
        ``(4) Carryover.--No more''.
    (b) Research.--Section 1445(a) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)) 
is amended--
        (1) by striking ``(a) There'' and inserting the following:
    ``(a) Authorization of Appropriations.--
        ``(1) In general.--There'';
        (2) by striking the second sentence and inserting the 
    following:
        ``(2) Minimum amount.--Beginning with fiscal year 2003, there 
    shall be appropriated under this section for each fiscal year an 
    amount that is not less than 25 percent of the total appropriations 
    for the fiscal year under section 3 of the Hatch Act of 1887 (7 
    U.S.C. 361c).'';
        (3) by striking ``Funds appropriated'' and inserting the 
    following:
        ``(3) Uses.--Funds appropriated'';
        (4) by striking ``The eligible'' and inserting the following:
        ``(4) Coordination.--The eligible''; and
        (5) by striking ``No more'' and inserting the following:
        ``(5) Carryover.--No more''.

SEC. 7204. CARRYOVER FOR ELIGIBLE INSTITUTIONS.

    Section 1445(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)) (as amended by 
section 7203 of this Act) is further amended by striking paragraph (5) 
and inserting the following:
        ``(5) Carryover.--
            ``(A) In general.--The balance of any annual funds provided 
        to an eligible institution for a fiscal year under this section 
        that remains unexpended at the end of the fiscal year may be 
        carried over for use during the following fiscal year.
            ``(B) Failure to expend full amount.--
                ``(i) In general.--If any unexpended balance carried 
            over by an eligible institution is not expended by the end 
            of the second fiscal year, an amount equal to the 
            unexpended balance shall be deducted from the next 
            succeeding annual allotment to the eligible institution.
                ``(ii) Redistribution.--Federal funds that are deducted 
            under clause (i) for a fiscal year shall be redistributed 
            by the Secretary in accordance with the formula set forth 
            in subsection (b)(2)(B) to those eligible institutions for 
            which no deduction under clause (i) has been taken for that 
            fiscal year.''.

SEC. 7205. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

    (a) Funding.--Section 401(b) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)) is 
amended--
        (1) in paragraph (1), by striking ``2002'' and inserting 
    ``2001''; and
        (2) by adding at the end the following:
        ``(3) Other funding.--Out of funds in the Commodity Credit 
    Corporation, the Secretary shall transfer to the Account--
            ``(A) on October 1, 2003, $120,000,000;
            ``(B) on October 1, 2004, $140,000,000;
            ``(C) on October 1, 2005, $160,000,000; and
            ``(D) on October 1, 2006, and each October 1 thereafter, 
        $200,000,000.''.
        (2) by amending subsection (c)(1) to read as follows:
        ``(1) Critical emerging agricultural and rural issues.--The 
    Secretary shall use the funds in the Account for research, 
    extension, and education grants (referred to in this section as 
    `grants') to address critical emerging agricultural and rural 
    issues related to--
            ``(A) future food production;
            ``(B) environmental quality and natural resource 
        management;
            ``(C) farm income; or
            ``(D) rural economic and business and community development 
        policy.''; and
        (3) in subsection (e)(1), by striking ``small and mid-sized'' 
    and inserting ``small, mid-sized, and minority-serving''.

SEC. 7206. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.

    Section 406(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by inserting 
``and 1994 Institutions'' before ``on a competitive basis''.

SEC. 7207. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT 
              OF 1998.

    (a) Precision Agriculture.--Section 403 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) 
is amended--
        (1) in subsection (a)--
            (A) in paragraph (3)--
                (i) in subparagraph (A), inserting ``, horticultural,'' 
            following ``agronomic'' the second place it appears; and
                (ii) in subparagraph (C), by striking ``or'' at the 
            end;
                (iii) in subparagraph (D), by striking the period at 
            the end and inserting ``; or''; and
                (iv) by adding at the end the following:
            ``(E) using such information to enable intelligent 
        mechanized harvesting and sorting systems for horticultural 
        crops.'';
            (B) in paragraph (4)--
                (i) in subparagraph (C), by striking ``or'' at the end;
                (ii) in subparagraph (D), by striking the period at the 
            end and inserting ``; or''; and
                (iii) by adding at the end the following:
            ``(E) robotic and other intelligent machines for use in 
        horticultural cropping systems.''; and
            (C) in paragraph (5)(F), by inserting ``(including improved 
        use of energy inputs)'' after ``farm production efficiencies'';
        (2) in subsection (c)(2)--
            (A) by inserting ``or horticultural'' after ``agronomic''; 
        and
            (B) by striking ``and meteorological variability'' and 
        inserting ``product variability, and meteorological 
        variability'';
        (3) in subsection (d)--
            (A) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (B) by inserting after paragraph (3) the following:
        ``(4) Improve farm energy use efficiencies.''.
    (b) Thomas Jefferson Initiative for Crop Diversification.--Section 
405(a) of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7625(a)) is amended by striking ``and marketing'' 
and inserting ``, marketing, and efficient use''.
    (c) Coordinated Program of Research, Extension, and Education To 
Improve Viability of Small- and Medium-Size Dairy, Livestock, and 
Poultry Operations.--Section 407(b)(3) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is 
amended by inserting ``(including improved use of energy inputs)'' 
after ``poultry systems that increase efficiencies''.
    (d) Support for Research Regarding Diseases of Wheat, Triticale, 
and Barley Caused by Fusarium Graminearum or By Tilletia Indica.--
        (1) Research grant authorized.--Section 408(a) of the 
    Agricultural Research, Extension, and Education Reform Act of 1998 
    (7 U.S.C. 7628(a)) is amended to read as follows:
    ``(a) Research Grant Authorized.--The Secretary of Agriculture may 
make grants to consortia of land-grant colleges and universities to 
enhance the ability of the consortia to carry out multi-State research 
projects aimed at understanding and combating diseases of wheat, 
triticale, and barley caused by Fusarium graminearum and related fungi 
(referred to in this section as `wheat scab') or by Tilletia indica and 
related fungi (referred to in this section as `Karnal bunt').''.
        (2) Research components.--Section 408(b) of such Act (7 U.S.C. 
    7628(b)) is amended--
            (A) in paragraph (1), by inserting ``or of Karnal bunt,'' 
        after ``epidemiology of wheat scab'';
            (B) in paragraph (1), by inserting ``, triticale,'' after 
        ``occurring in wheat'';
            (C) in paragraph (2), by inserting ``or Karnal bunt'' after 
        ``wheat scab'';
            (D) in paragraph (3)(A), by striking ``and barley for the 
        presence of'' and inserting ``, triticale, and barley for the 
        presence of Karnal bunt or of'';
            (E) in paragraph (3)(B), by striking ``and barley infected 
        with wheat scab'' and inserting ``, triticale, and barley 
        infected with wheat scab or with Karnal bunt'';
            (F) in paragraph (3)(C), by inserting ``wheat scab'' after 
        ``to render'';
            (G) in paragraph (4), by striking ``and barley to wheat 
        scab'' and inserting ``, triticale, and barley to wheat scab 
        and to Karnal bunt''; and
            (H) in paragraph (5)--
                (i) by inserting ``and Karnal bunt'' after ``wheat 
            scab''; and
                (ii) by inserting ``, triticale,'' after ``resistant 
            wheat''.
        (3) Communications networks.--Section 408(c) of such Act (7 
    U.S.C. 7628(c)) is amended by inserting ``or Karnal bunt'' after 
    ``wheat scab''.
        (4) Technical amendments.--(A) The section heading for section 
    408 of such Act is amended by striking ``and barley caused by 
    fusarium graminearum'' and inserting ``, triticale, and barley 
    caused by fusarium graminearum or by tilletia indica''.
        (B) The table of sections for such Act is amended by striking 
    ``and barley caused by fusarium graminearum'' in the item relating 
    to section 408 and inserting ``, triticale, and barley caused by 
    Fusarium graminearum or by Tilletia indica''.
    (e) Program to Control Johne's Disease.--Title IV of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7621 et seq.) is amended by adding at the end the following new 
section:

``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    ``(a) Establishment.--The Secretary of Agriculture, in coordination 
with State veterinarians and other appropriate State animal health 
professionals, may establish a program to conduct research, testing, 
and evaluation of programs for the control and management of Johne's 
disease in livestock.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section for each of fiscal years 2003 through 2007.''.

SEC. 7208. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.

    (a) Agricultural Genome Initiative.--Section 1671(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is 
amended--
        (1) in paragraph (3), by inserting ``pathogens and'' before 
    ``diseases causing economic hardship'';
        (2) in paragraph (6), by striking ``and'' at the end;
        (3) by redesignating paragraph (7) as paragraph (8); and
        (4) by inserting after paragraph (6) the following new 
    paragraph:
        ``(7) reducing the economic impact of plant pathogens on 
    commercially important crop plants; and''.
    (b) High-Priority Research and Extension Initiatives.--Section 
1672(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 5925) is amended by adding at the end the following new 
paragraphs:
        ``(25) Genetically modified agriculture products (gmap) 
    research.--Research grants may be made under this section for the 
    purposes of providing unbiased, science-based evaluation of the 
    risks and benefits to the public and the environment of specific 
    genetically modified plant and animal products. Grants may be used 
    to form interdisciplinary teams to review and conduct research on 
    scientific, social, economic, and ethical issues during the review 
    process, to answer questions raised by the release of new 
    genetically modified agriculture products, to conduct fundamental 
    studies on the health and environmental safety of genetically 
    modified agriculture products (including quantitative risk 
    assessment, the effect of specific genetically modified agriculture 
    products on human health, and gene flow studies), to communicate 
    the risk of genetically modified agriculture products through 
    extension and education programs, and to engage the public and 
    industry in relevant issues.
        ``(26) Wind erosion research and extension.--Research and 
    extension grants may be made under this section for the purpose of 
    validating wind erosion models.
        ``(27) Crop loss research and extension.--Research and 
    extension grants may be made under this section for the purpose of 
    validating crop loss models.
        ``(28) Land use management research and extension.--Research 
    and extension grants may be made under this section for the 
    purposes of evaluating the environmental benefits of land use 
    management tools such as those provided in the Farmland Protection 
    Program.
        ``(29) Water and air quality research and extension.--Research 
    and extension grants may be made under this section for the purpose 
    of better understanding agricultural impacts to air and water 
    quality and means to address them.
        ``(30) Revenue and insurance tools research and extension.--
    Research and extension grants may be made under this section for 
    the purposes of better understanding the impact of revenue and 
    insurance tools on farm income.
        ``(31) Agrotourism research and extension.--Research and 
    extension grants may be made under this section for the purpose of 
    better understanding the economic, environmental, and food systems 
    impacts of agrotourism.
        ``(32) Harvesting productivity for fruits and vegetables.--
    Research and extension grants may be made under this section for 
    the purpose of improving harvesting productivity for fruits and 
    vegetables (including citrus), including the development of 
    mechanical harvesting technologies and effective, economical, and 
    safe abscission compounds.
        ``(33) Nitrogen-fixation by plants.--Research and extension 
    grants may be made under this section for the purpose of enhancing 
    the nitrogen-fixing ability and efficiency of legumes, developing 
    new varieties of legumes that fix nitrogen more efficiently, and 
    developing new varieties of other commercially important crops that 
    potentially are able to fix nitrogen.
        ``(34) Agricultural marketing.--Extension grants may be made 
    under this section for the purpose of providing education 
    materials, information, and outreach programs regarding commodity 
    and livestock marketing strategies for agricultural producers and 
    for cooperatives and other marketers of any agricultural commodity, 
    including livestock.
        ``(35) Environment and private lands research and extension.--
    Research and extension grants may be made under this section for 
    the purpose of researching the use of computer models to aid in 
    assessment of best management practices on a watershed basis, 
    working with government, industry, and private landowners to help 
    craft industry-led solutions to identified environmental issues, 
    researching and monitoring water, air, or soil environmental 
    quality to aid in the development of new approaches to local 
    environmental concerns, and working with local, State, and federal 
    officials to help craft effective environmental solutions that 
    respect private property rights and agricultural production 
    realities.
        ``(36) Livestock disease research and extension.--Research and 
    extension grants may be made under this section for the purpose of 
    identifying possible livestock disease threats, educating the 
    public regarding livestock disease threats, training persons to 
    deal with such threats, and conducting related research.
        ``(37) Plant gene expression.--Research grants may be made 
    under this section for the purpose of plant gene expression 
    research to accelerate the application of basic plant genomic 
    science to the development and testing of new varieties of enhanced 
    food crops, crops that can be used as renewable energy sources, and 
    other alternative uses of agricultural crops.
        ``(38) Animal infectious diseases research.--Research and 
    extension grants may be made under this section for the purpose of 
    developing prevention and control methodologies for animal 
    infectious diseases (including evaluation under field conditions in 
    countries in which an animal disease occurs) such as laboratory 
    tests for quicker detection of infected animals and presence of 
    disease, prevention strategies (including vaccination programs), 
    and rapid diagnostic techniques for animal disease agents 
    considered to be risks for agricultural bioterrorism attack.
        ``(39) Program to combat childhood obesity.--Research and 
    extension grants may be made under this section to institutions of 
    higher education with demonstrated capacity in basic and clinical 
    obesity research, nutrition research, and community health 
    education research to develop and evaluate community-wide 
    strategies that catalyze partnerships between families and health 
    care, education, recreation, mass media, and other community 
    resources to reduce the incidence of childhood obesity.
        ``(40) Integrated pest management.--Research and extension 
    grants may be made under this section to coordinate and improve 
    research, education, and outreach on, and implementation on farms 
    of, integrated pest management.
        ``(41) Beef cattle genetics.--Research and extension grants for 
    beef cattle genetics evaluation research may be made under this 
    section to consortia of institutions of higher education that have 
    expertise in beef cattle genetic evaluation research and technology 
    and that have been actively involved for at least 20 years in the 
    estimation and prediction of progeny differences for publication 
    and use by seed stock producer breed associations.
        ``(42) Dairy pipeline cleaner.--Research and extension grants 
    may be made under this section for the purpose of preventing and 
    eliminating the dangers of dairy pipeline cleaner, including 
    development of safer packaging and transfer mechanisms, outlining 
    accident causes and potential prevention measures, and other means 
    of improving efforts to prevent ingestion of dairy pipeline 
    cleaner.
        ``(43) Development of publicly held plants and animal 
    varieties.--Research and extension grants may be made under this 
    section for the purpose of development of publicly held plants and 
    animal varieties (including germplasm for identity-preserved 
    markets) and genetic resource conservation activities.
        ``(44) Sugarcane genetics.--Research grants may be made under 
    this section for the purpose of maintaining acceptable yields under 
    reduced production inputs, implementing marker-assisted breeding 
    strategies and other basic plant genomic technologies to screen for 
    improved plant resistance to diseases, weeds, and insects toward 
    minimizing pesticide use, enhancing food, fiber and energy 
    production, and developing varieties for maximum performance under 
    prevailing conditions, including management for improved soil and 
    water conservation.''.
    (c) Assistive Technology Program for Farmers With Disabilities.--
Section 1680(a) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5933(a)) is amended by adding at the end the 
following new paragraph:
        ``(6) Consideration for grants for new programs.--For each 
    fiscal year that amounts are made available for grants under this 
    subsection, the Secretary may make grants in a manner that ensures 
    that eligible entities who apply for grants, but have not 
    previously received a grant under this subsection, are given full 
    consideration.''.

SEC. 7209. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT OF 1977.

    (a) National Agricultural Research, Extension, Education, and 
Economic Advisory Board.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
amended--
        (1) in subsection (b)(1), by striking ``30 members'' and 
    inserting ``31 members'';
        (2) in subsection (b)(3)--
            (A) by redesignating subparagraphs (R) through (DD) as 
        subparagraphs (S) through (EE), respectively; and
            (B) by inserting after subparagraph (Q) the following new 
        subparagraph:
            ``(R) 1 member representing a non-land grant college or 
        university with a historic commitment to research in the food 
        and agricultural sciences.'';
        (3) in subsection (c)(1), by striking ``and land-grant colleges 
    and universities'' and inserting ``, land-grant colleges and 
    universities, and the Committee on Agriculture of the House of 
    Representatives, the Committee on Agriculture, Nutrition, and 
    Forestry of the Senate, the Subcommittee on Agriculture, Rural 
    Development, Food and Drug Administration and Related Agencies of 
    the Committee on Appropriations of the House of Representatives, 
    and the Subcommittee on Agriculture, Rural Development and Related 
    Agencies of the Committee on Appropriations of the Senate''; and
        (4) in subsection (d)(1), inserting ``consult with any 
    appropriate agencies of the Department of Agriculture and'' after 
    ``the Advisory Board shall''.
    (b) Grants for Research on Production and Marketing of Alcohols and 
Industrial Hydrocarbons from Agricultural Commodities and Forest 
Products.--Section 1419 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is amended--
        (1) in subsection (a)(2), by inserting ``and animal fats and 
    oils'' after ``industrial oilseed crops''; and
        (2) in subsection (a)(4), by inserting ``or triglycerides'' 
    after ``other industrial hydrocarbons''.
    (c) FAS Overseas Intern Program.--Section 1458(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3291(a)) is amended--
        (1) by striking ``and'' at the end of paragraph (8);
        (2) by striking the period at the end of paragraph (9) and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(10) establish a program, to be coordinated by the 
    Cooperative State Research, Education, and Extension Service and 
    the Foreign Agricultural Service, to place interns from United 
    States colleges and universities at Foreign Agricultural Service 
    field offices overseas.''.
    (d) Rangeland Research Grants.--Section 1480 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3333) is amended to read as follows:

``SEC. 1480. RANGELAND RESEARCH GRANTS.

    ``(a) In General.--The Secretary may make grants to--
        ``(1) land-grant colleges and universities, State agricultural 
    experiment stations, and colleges, universities, and Federal 
    laboratories having a demonstrable capacity in rangeland research, 
    as determined by the Secretary, to carry out rangeland research; 
    and
        ``(2) the Joe Skeen Institute for Rangeland Restoration for the 
    purposes of facilitating and expanding ongoing State-Federal range 
    management, animal husbandry, and agricultural research, education, 
    and extension programs to meet the targeted, emerging, and future 
    needs of western United States rangelands and associated natural 
    resources.
    ``(b) Matching Requirements.--
        ``(1) In general.--Except as provided in paragraph (2), this 
    grant program shall be based on a matching formula of 50 percent 
    Federal and 50 percent non-Federal funding.
        ``(2) Exception.--Paragraph (1) shall not apply to a grant to a 
    Federal laboratory or a grant under subsection (a)(2).''.

SEC. 7210. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    Section 1668 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5921) is amended to read as follows:

``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    ``(a) Purpose.--It is the purpose of this section--
        ``(1) to authorize and support environmental assessment 
    research to help identify and analyze environmental effects of 
    biotechnology; and
        ``(2) to authorize research to help regulators develop long-
    term policies concerning the introduction of such technology.
    ``(b) Grant Program.--The Secretary of Agriculture shall establish 
a grant program within the Cooperative State Research, Education, and 
Extension Service and the Agricultural Research Service to provide the 
necessary funding for environmental assessment research concerning the 
introduction of genetically engineered animals, plants, and 
microorganisms into the environment.
    ``(c) Research Priorities.-- The following types of research shall 
be given priority for funding:
        ``(1) Research designed to identify and develop appropriate 
    management practices to minimize physical and biological risks 
    associated with genetically engineered animals, plants, and 
    microorganisms.
        ``(2) Research designed to develop methods to monitor the 
    dispersal of genetically engineered animals, plants, and 
    microorganisms.
        ``(3) Research designed to further existing knowledge with 
    respect to the characteristics, rates, and methods of gene transfer 
    that may occur between genetically engineered animals, plants, and 
    microorganisms and related wild and agricultural organisms.
        ``(4) Environmental assessment research designed to provide 
    analysis which compares the relative impacts of animals, plants, 
    and microorganisms modified through genetic engineering to other 
    types of production systems.
        ``(5) Other areas of research designed to further the purposes 
    of this section.
    ``(d) Eligibility Requirements.--Grants under this section shall 
be--
        ``(1) made on the basis of the quality of the proposed research 
    project; and
        ``(2) available to any public or private research or 
    educational institution or organization.
    ``(e) Consultation.-- In considering specific areas of research for 
funding under this section, the Secretary of Agriculture shall consult 
with the Administrator of the Animal and Plant Health Inspection 
Service and the National Agricultural Research, Extension, Education, 
and Economics Advisory Board.
    ``(f) Program Coordination.-- The Secretary of Agriculture shall 
coordinate research funded under this section with the Office of 
Research and Development of the Environmental Protection Agency in 
order to avoid duplication of research activities.
    ``(g) Authorization of Appropriations.--
        ``(1) In general.-- There are authorized to be appropriated 
    such sums as necessary to carry out this section.
        ``(2) Withholdings from biotechnology outlays.--The Secretary 
    of Agriculture shall withhold from outlays of the Department of 
    Agriculture for research on biotechnology, as defined and 
    determined by the Secretary, at least 2 percent of such amount for 
    the purpose of making grants under this section for research on 
    biotechnology risk assessment.
        ``(3) Application of Funds.--Funds made available under this 
    subsection shall be applied, to the maximum extent practicable, to 
    risk assessment research on all categories identified in subsection 
    (c).''.

SEC. 7211. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

    Section 2(b)(2) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i(b)(2)) is amended by striking ``in--
'' and inserting the following: ``in the areas described in 
subparagraphs (A) through (F). Such needs shall be determined by the 
Secretary, in consultation with the National Agricultural Research, 
Extension, Education, and Economics Advisory Board, not later than July 
1 of each fiscal year for the purposes of the following fiscal year.''.

SEC. 7212. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--
        (1) by amending subsection (c) to read as follows:
    ``(c) Matching Formula.--Notwithstanding any other provision of 
this subtitle, for each of fiscal years 2003 through 2007, the State 
shall provide matching funds from non-Federal sources. Such matching 
funds shall be for an amount equal to not less than--
        ``(1) 60 percent of the formula funds to be distributed to the 
    eligible institution for fiscal year 2003;
        ``(2) 70 percent of the formula funds to be distributed to the 
    eligible institution for fiscal year 2004;
        ``(3) 80 percent of the formula funds to be distributed to the 
    eligible institution for fiscal year 2005;
        ``(4) 90 percent of the formula funds to be distributed to the 
    eligible institution for fiscal year 2006; and
        ``(5) 100 percent of the formula funds to be distributed to the 
    eligible institution for fiscal year 2007 and each fiscal year 
    thereafter.''; and
        (2) by amending subsection (d) to read as follows:
    ``(d) Waiver Authority.--Notwithstanding subsection (f), the 
Secretary may waive the matching funds requirement under subsection (c) 
above the 50 percent level for any fiscal year for an eligible 
institution of a State if the Secretary determines that the State will 
be unlikely to satisfy the matching requirement.''.

SEC. 7213. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION FORMULA 
              FUNDS FOR INSULAR AREA LAND-GRANT INSTITUTIONS.

    (a) Experiment Stations.--Section 3(d) of the Hatch Act of 1887 (7 
U.S.C. 361c(d)) is amended by striking paragraph (4) and inserting the 
following:
        ``(4) Exception for insular areas.--
            ``(A) In general.--Effective beginning for fiscal year 
        2003, in lieu of the matching funds requirement of paragraph 
        (1), the insular areas of the Commonwealth of Puerto Rico, 
        Guam, and the Virgin Islands of the United States shall provide 
        matching funds from non-Federal sources in an amount equal to 
        not less than 50 percent of the formula funds distributed by 
        the Secretary to each of the insular areas, respectively, under 
        this section.
            ``(B) Waivers.--The Secretary may waive the matching fund 
        requirement of subparagraph (A) for any fiscal year if the 
        Secretary determines that the government of the insular area 
        will be unlikely to meet the matching requirement for the 
        fiscal year.''.
    (b) Cooperative Agricultural Extension.--Section 3(e) of the Smith-
Lever Act (7 U.S.C. 343(e)) is amended by striking paragraph (4) and 
inserting the following:
        ``(4) Exception for insular areas.--
            ``(A) In general.--Effective beginning for fiscal year 
        2003, in lieu of the matching funds requirement of paragraph 
        (1), the insular areas of the Commonwealth of Puerto Rico, 
        Guam, and the Virgin Islands of the United States shall provide 
        matching funds from non-Federal sources in an amount equal to 
        not less than 50 percent of the formula funds distributed by 
        the Secretary to each of the insular areas, respectively, under 
        this section.
            ``(B) Waivers.--The Secretary may waive the matching fund 
        requirement of subparagraph (A) for any fiscal year if the 
        Secretary determines that the government of the insular area 
        will be unlikely to meet the matching requirement for the 
        fiscal year.''.

SEC. 7214. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

    Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is 
amended to read as follows:
        ``(3) Food and agricultural sciences.--The term `food and 
    agricultural sciences' has the meaning given that term in section 
    1404(8) of the National Agricultural Research, Extension, and 
    Teaching Policy Act of 1977 (7 U.S.C. 3103(8)).''.

SEC. 7215. FEDERAL EXTENSION SERVICE.

    Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) is 
amended--
        (1) by striking ``$5,000,000'' and inserting ``such sums as are 
    necessary''; and
        (2) by adding after the first sentence the following new 
    sentence: ``The balance of any annual funds provided under the 
    preceding sentence for a fiscal year that remains unexpended at the 
    end of that fiscal year shall remain available without fiscal year 
    limitation.''.

SEC. 7216. POLICY RESEARCH CENTERS.

    Section 1419A(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155(c)(3)) is 
amended by striking ``collect and analyze'' and inserting ``collect, 
analyze, and disseminate''.

SEC. 7217. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1469 (7 U.S.C. 3315) 
the following:

``SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    ``Except as otherwise provided by law, funds made available to the 
Secretary to carry out a competitive agricultural research, education, 
or extension grant program under this or any other Act shall be 
available for obligation for a 2-year period beginning on October 1 of 
the fiscal year for which the funds are made available.''.

SEC. 7218. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925b) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by inserting ``, breeding,'' after 
        ``production'';
            (B) in paragraph (2), by striking ``and'' at the end;
            (C) in paragraph (3), by striking the period at the end and 
        inserting a semicolon; and
            (D) by adding at the end the following:
        ``(4) determining desirable traits for organic commodities;
        ``(5) identifying marketing and policy constraints on the 
    expansion of organic agriculture; and
        ``(6) conducting advanced on-farm research and development that 
    emphasizes observation of, experimentation with, and innovation for 
    working organic farms, including research relating to production 
    and marketing and to socioeconomic conditions.''; and
        (2) by amending subsection (e) to read as follows:
    ``(e) Funding.--On October 1, 2003, and each October 1 thereafter 
through October 1, 2007, out of any funds in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall transfer $3,000,000 
to the Secretary of Agriculture for this section.''.

SEC. 7219. SENIOR SCIENTIFIC RESEARCH SERVICE.

    Subtitle B of title VI of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by 
adding at the end the following:

``SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.

    ``(a) In General.--There is established in the Department of 
Agriculture the Senior Scientific Research Service (referred to in this 
section as the `Service').
    ``(b) Members.--
        ``(1) In general.--Subject to paragraphs (2) through (4), the 
    Secretary shall appoint the members of the Service.
        ``(2) Qualifications.--To be eligible for appointment to the 
    Service, an individual shall--
            ``(A) have conducted outstanding research in the field of 
        agriculture or forestry;
            ``(B) have earned a doctoral level degree at an institution 
        of higher education (as defined in section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001)); and
            ``(C) meet qualification standards prescribed by the 
        Director of the Office of Personnel Management for appointment 
        to a position at level GS-15 of the General Schedule.
        ``(3) Number.--Not more than 100 individuals may serve as 
    members of the Service at any 1 time.
        ``(4) Other requirements.--
            ``(A) In general.--Subject to subparagraph (B) and 
        subsection (d)(2), the Secretary may appoint and employ a 
        member of the Service without regard to--
                ``(i) the provisions of title 5, United States Code, 
            governing appointments in the competitive service;
                ``(ii) the provisions of subchapter I of chapter 35 of 
            title 5, United States Code, relating to retention 
            preference;
                ``(iii) the provisions of chapter 43 of title 5, United 
            States Code, relating to performance appraisal and 
            performance actions;
                ``(iv) the provisions of chapter 51 and subchapter III 
            of chapter 53 of title 5, United States Code, relating to 
            classification and General Schedule pay rates; and
                ``(v) the provisions of chapter 75 of title 5, United 
            States Code, relating to adverse actions.
            ``(B) Exception.--A member of the Service appointed and 
        employed by the Secretary under subparagraph (A) shall have the 
        same right of appeal to the Merit Systems Protection Board and 
        the same right to file a complaint with the Office of Special 
        Counsel as an employee appointed to a position at level GS-15 
        of the General Schedule.
    ``(c) Performance Appraisal System.--The Secretary shall develop a 
performance appraisal system for members of the Service that is 
designed to--
        ``(1) provide for the systematic appraisal of the employment 
    performance of the members; and
        ``(2) encourage excellence in employment performance by the 
    members.
    ``(d) Compensation.--
        ``(1) In general.--Subject to paragraph (2), the Secretary 
    shall determine the compensation of members of the Service.
        ``(2) Limitations.--The rate of pay for a member of the Service 
    shall--
            ``(A) not be less than the minimum rate payable for a 
        position at level GS-15 of the General Schedule; and
            ``(B) not be more than the rate payable for a position at 
        level I of the Executive Schedule, unless the rate is approved 
        by the President under section 5377(d)(2) of title 5, United 
        States Code.
    ``(e) Retirement Contributions.--
        ``(1) In general.--On the request of a member of the Service 
    who was an employee of an institution of higher education (as 
    defined in section 101 of the Higher Education Act of 1965 (20 
    U.S.C. 1001)) immediately prior to appointment as a member of the 
    Service and who retains the right to continue to make contributions 
    to the retirement system of the institution, the Secretary may 
    contribute an amount not to exceed 10 percent of the basic pay of 
    the member to the retirement system of the institution on behalf of 
    the member.
        ``(2) Federal retirement system.--
            ``(A) In general.--Subject to subparagraph (B), a member 
        for whom a contribution is made under paragraph (1) shall not, 
        as a result of serving as a member of the Service, be covered 
        by, or earn service credit under, chapter 83 or 84 of title 5, 
        United States Code.
            ``(B) Annual leave.--Service of a member of the Service 
        described in subparagraph (A) shall be creditable for 
        determining years of service under section 6303(a) of title 5, 
        United States Code.
    ``(f) Involuntary Separation.--
        ``(1) In general.--Subject to paragraph (2) and notwithstanding 
    the provisions of title 5, United States Code, governing 
    appointment in the competitive service, in the case of an 
    individual who is separated from the Service involuntarily and 
    without cause--
            ``(A) the Secretary may appoint the individual to a 
        position in the competitive civil service at level GS-15 of the 
        General Schedule; and
            ``(B) the appointment shall be a career appointment.
        ``(2) Excepted civil service.--In the case of an individual 
    described in paragraph (1) who immediately prior to appointment as 
    a member of the Service was not a career appointee in the civil 
    service or the Senior Executive Service, the appointment of the 
    individual under paragraph (1)--
            ``(A) shall be to the excepted civil service; and
            ``(B) may not exceed a period of 2 years.''.

SEC. 7220. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

    (a) Termination.--Not later than January 31, 2003, the Secretary of 
Agriculture shall terminate each appointment listed as an excepted 
position under schedule A of the General Schedule made by the Secretary 
to the Federal civil service of an individual who holds dual government 
appointments, and who carries out agricultural extension work in a 
program at a college or university eligible to receive funds, under--
        (1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
        (2) section 1444 of the National Agricultural Research, 
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221); or
        (3) section 208(e) of the District of Columbia Public 
    Postsecondary Education Reorganization Act (88 Stat. 1428).
    (b) Continuation of Certain Federal Benefits.--
        (1) In general.--Notwithstanding title 5, United States Code, 
    and subject to paragraph (2), an individual described in subsection 
    (a), during the period the individual is employed in an 
    agricultural extension program described in subsection (a) without 
    a break in service, shall continue to--
            (A) be eligible to participate, to the same extent that the 
        individual was eligible to participate (on the day before the 
        date of enactment of this Act), in--
                (i) the Federal Employee Health Benefits Program;
                (ii) the Federal Employee Group Life Insurance Program;
                (iii) the Civil Service Retirement System;
                (iv) the Federal Employee Retirement System;
                (v) the Thrift Savings Plan; and
                (vi) the Federal Long Term Care Insurance Program; and
            (B) receive Federal Civil Service employment credit to the 
        same extent that the individual was receiving such credit on 
        the day before the date of enactment of this Act.
        (2) Limitations.--An individual may continue to be eligible for 
    the benefits described in paragraph (1) if--
            (A) in the case of an individual who remains employed in 
        the agricultural extension program described in subsection (a) 
        on the date of enactment of this Act, the employing college or 
        university continues to fulfill the administrative and 
        financial responsibilities (including making agency 
        contributions) associated with providing those benefits, as 
        determined by the Secretary of Agriculture; and
            (B) in the case of an individual who changes employment to 
        a second college or university described in subsection (a)--
                (i) the individual continues to work in an agricultural 
            extension program described in subsection (a), as 
            determined by the Secretary of Agriculture;
                (ii) the second college or university--

                    (I) fulfills the administrative and financial 
                responsibilities (including making agency 
                contributions) associated with providing those 
                benefits, as determined by the Secretary of 
                Agriculture; and
                    (II) within 1 year before the date of the 
                employment of the individual, had employed a different 
                individual described in subsection (a) who had 
                performed the same duties of employment; and

                (iii) the individual was eligible for those benefits on 
            the day before the date of enactment of this Act.

SEC. 7221. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

    (a) Biosecurity.--The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
adding at the end the following:

                       ``Subtitle N--Biosecurity

``SEC. 1484. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND 
              RESPONSE.

    ``(a) Authorization of Appropriations.--In addition to amounts for 
agricultural research, extension, and education under this Act, there 
are authorized to be appropriated for agricultural research, education, 
and extension activities for biosecurity planning and response such 
sums as are necessary for each of fiscal years 2002 through 2007.
    ``(b) Use of Funds.--Using any authority available to the 
Secretary, the Secretary shall use funds made available under this 
section to carry out agricultural research, education, and extension 
activities (including through competitive grants) for the following:
        ``(1) To reduce the vulnerability of the United States food and 
    agricultural system to chemical or biological attack.
        ``(2) To continue partnerships with institutions of higher 
    education and other institutions to help form stable, long-term 
    programs to enhance the biosecurity of the United States, including 
    the coordination of the development, implementation, and 
    enhancement of diverse capabilities for addressing threats to the 
    Nation's agricultural economy and food supply with special emphasis 
    on planning, training, outreach, and research activities related to 
    vulnerability analyses, incident response, and detection and 
    prevention technologies.
        ``(3) To make competitive grants to universities and qualified 
    research institutions for research on counterbioterrorism.
        ``(4) To counter or otherwise respond to chemical or biological 
    attack.

``SEC. 1485. AGRICULTURE RESEARCH FACILITY EXPANSION AND SECURITY 
              UPGRADES.

    ``(a) In General.--To enhance the security of agriculture in the 
United States against threats posed by bioterrorism, the Secretary 
shall make expansion or security upgrade grants on a competitive basis 
to colleges and universities (as defined in section 1404(4)).
    ``(b) Limitation on Grants.--Grants to a recipient under this 
section shall not exceed $10,000,000 in any fiscal year.
    ``(c) Requirements for Grants.--The Secretary shall make a grant 
under this section only if the grant applicant provides satisfactory 
assurances to the Secretary that--
        ``(1) sufficient funds are available to pay the non-Federal 
    share of the cost of the proposed expansion or security upgrades; 
    and
        ``(2) the proposed expansion or security upgrades meet such 
    reasonable qualifications as may be established by the Secretary 
    with respect to biosafety and biosecurity requirements necessary to 
    protect facility staff, members of the public, and the food supply.
    ``(d) Additional Requirements for Grants for Facility Expansion.--
The Secretary shall make a grant under this section for the expansion, 
renovation, remodeling, or alteration (collectively referred to in this 
section as ``expansion'') of a facility only if the grant applicant 
provides such assurances as the Secretary determines to be satisfactory 
to ensure the following:
        ``(1) For not less than 20 years after the grant is awarded, 
    the facility shall be used for the purposes of the research for 
    which the facility was expanded, as described in the grant 
    application.
        ``(2) Sufficient funds will be available, as of the date of 
    completion of the expansion, for the effective use of the facility 
    for the purposes of the research for which the facility was 
    expanded.
        ``(3) The proposed expansion--
            ``(A) will increase the capability of the applicant to 
        conduct research for which the facility was expanded; or
            ``(B) is necessary to improve the quality of the research 
        of the applicant.
    ``(e) Amount of Grant.--The amount of a grant awarded under this 
section shall be determined by the Secretary.
    ``(f) Federal Share.--The Federal share of the cost of any 
expansion or security upgrade carried out using funds from a grant 
provided under this section shall not exceed 50 percent.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each fiscal year.''.
    (b) Sense of Congress on Increasing Capacity for Research on 
Biosecurity and Animal and Plant Health Diseases.--It is the sense of 
Congress that funding for the Agricultural Research Service, the Animal 
and Plant Health Inspection Service, and other agencies of the 
Department of Agriculture with responsibilities for biosecurity should 
be increased as necessary to improve the capacity of the agencies to 
conduct research and analysis of, and respond to, bioterrorism and 
animal and plant diseases.

SEC. 7222. INDIRECT COSTS FOR SMALL BUSINESS INNOVATION RESEARCH 
              GRANTS.

    Section 1462 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3310) is amended--
        (1) by inserting ``(a) In General.--'' before ``Except''; and
        (2) by adding at the end the following:
    ``(b) Exception.--Subsection (a) shall not apply to a grant awarded 
competitively under section 9 of the Small Business Act (15 U.S.C. 
638).''.

SEC. 7223. CARBON CYCLE RESEARCH.

    Section 221 of the Agricultural Risk Protection Act of 2000 (Public 
Law 106-224; 114 Stat. 407), as amended by section 9009 of this Act, is 
amended--
        (1) in subsection (a), by striking ``Of the amount'' and all 
    that follows through ``to provide'' and inserting ``To the extent 
    funds are made available for this purpose, the Secretary shall 
    provide'';
        (2) in subsection (f), by striking ``under subsection (a)'' and 
    inserting ``for this section''; and
        (3) by adding at the end the following new subsection:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 2002 through 2007 such sums as may be 
necessary to carry out this section.''.

        Subtitle C--Repeal of Certain Activities and Authorities

SEC. 7301. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL 
              CONFERENCE.

    (a) Repeal.--Subsections (b) and (c) of section 615 of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7654(b) and (c)) are repealed.
    (b) Conforming Amendments.--
        (1) Generally.--Section 615 of such Act is amended--
            (A) in the section heading, by striking ``and national 
        conference'';
            (B) by striking ``(a) Food Safety Research Information 
        Office.--'';
            (C) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c), respectively, and moving the 
        margins 2 ems to the left;
            (D) in subsection (b) (as so redesignated), by 
        redesignating subparagraphs (A) and (B) as paragraphs (1) and 
        (2), respectively, and moving the margins 2 ems to the left; 
        and
            (E) in subsection (c) (as so redesignated), by striking 
        ``this subsection'' and inserting ``this section''.
        (2) Table of sections.--The table of sections for such Act is 
    amended by striking ``and National Conference'' in the item 
    relating to section 615.

SEC. 7302. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH, 
              AND INFORMATION ACT OF 1994.

    Section 617 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (Public Law 105-185; 112 Stat. 607) is repealed.

SEC. 7303. MARKET EXPANSION RESEARCH.

    Section 1436 of the Food Security Act of 1985 (7 U.S.C. 1632) is 
repealed.

SEC. 7304. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

    (a) Repeal.--Section 1639 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5853) is repealed.
    (b) Conforming Amendment.--Section 1640(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5854(b)) is 
amended by striking ``take into'' and all that follows through 
``Weather and''.

SEC. 7305. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

    Section 1420 of the National Agricultural Research, Extension and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1551) is repealed.

SEC. 7306. PESTICIDE RESISTANCE STUDY.

    Section 1437 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1558) is repealed.

SEC. 7307. EXPANSION OF EDUCATION STUDY.

    Section 1438 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1559) is repealed.

SEC. 7308. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
              RESEARCH FACILITIES.

    (a) Repeal.--Section 4 of the Research Facilities Act (7 U.S.C. 
390b) is repealed.
    (b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 390) is 
amended by striking paragraph (5).

                      Subtitle D--New Authorities

SEC. 7401. SUBTITLE DEFINITIONS.

    In this subtitle:
        (1) Department.--The term ``Department'' means the Department 
    of Agriculture.
        (2) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.

SEC. 7402. RESEARCH EQUIPMENT GRANTS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1462 (7 U.S.C. 3310) 
the following:

``SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

    ``(a) In General.--The Secretary may make competitive grants for 
the acquisition of special purpose scientific research equipment for 
use in the food and agricultural sciences programs of eligible 
institutions described in subsection (b).
    ``(b) Eligible Institutions.--The Secretary may make a grant under 
this section to--
        ``(1) a college or university; or
        ``(2) a State cooperative institution.
    ``(c) Maximum Amount.--The amount of a grant made to an eligible 
institution under this section may not exceed $500,000.
    ``(d) Prohibition on Charge of Equipment as Indirect Costs.--The 
cost of acquisition or depreciation of equipment purchased with a grant 
under this section shall not be--
        ``(1) charged as an indirect cost against another Federal 
    grant; or
        ``(2) included as part of the indirect cost pool for purposes 
    of calculating the indirect cost rate of an eligible institution.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2002 through 2007.''.

SEC. 7403. JOINT REQUESTS FOR PROPOSALS.

    (a) Purposes.--The purposes of this section are--
        (1) to reduce the duplication of administrative functions 
    relating to grant awards and administration among Federal agencies 
    conducting similar types of research, education, and extension 
    programs;
        (2) to maximize the use of peer review resources in research, 
    education, and extension programs; and
        (3) to reduce the burden on potential recipients that may offer 
    similar proposals to receive competitive grants under different 
    Federal programs in overlapping subject areas.
    (b) Authority.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1473A 
(7 U.S.C. 3319a) the following:

``SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.

    ``(a) In General.--In carrying out any competitive agricultural 
research, education, or extension grant program authorized under this 
or any other Act, the Secretary may cooperate with 1 or more other 
Federal agencies (including the National Science Foundation) in issuing 
joint requests for proposals, awarding grants, and administering 
grants, for similar or related research, education, or extension 
projects or activities.
    ``(b) Administration.--
        ``(1) Secretary.--The Secretary may delegate authority to issue 
    requests for proposals, make grant awards, or administer grants, in 
    whole or in part, to a cooperating Federal agency.
        ``(2) Cooperating federal agency.--The cooperating Federal 
    agency may delegate to the Secretary authority to issue requests 
    for proposals, make grant awards, or administer grants, in whole or 
    in part.
    ``(c) Regulations.--The Secretary and a cooperating Federal agency 
may agree to make applicable to recipients of grants--
        ``(1) the post-award grant administration regulations 
    applicable to recipients of grants from the Secretary; or
        ``(2) the post-award grant administration regulations 
    applicable to recipients of grants from the cooperating Federal 
    agency.
    ``(d) Joint Peer Review Panels.--Subject to section 1413B, the 
Secretary and a cooperating Federal agency may establish joint peer 
review panels for the purpose of evaluating grant proposals.''.

SEC. 7404. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall establish a task force to--
        (1) conduct a review of the Agricultural Research Service; and
        (2) evaluate the merits of establishing one or more National 
    Institutes focused on disciplines important to the progress of food 
    and agricultural science.
    (b) Membership.--
        (1) In general.--The Task Force shall consist of 8 members, 
    appointed by the Secretary, that--
            (A) have a broad-based background in plant, animal, and 
        agricultural sciences research, food, nutrition, biotechnology, 
        crop production methods, environmental science, or related 
        disciplines; and
            (B) are familiar with the role and infrastructure used to 
        conduct Federal and private research, including--
                (i) the Agricultural Research Service;
                (ii) the National Institutes of Health;
                (iii) the National Science Foundation;
                (iv) the National Aeronautics and Space Administration;
                (v) the Department of Energy laboratory system; or
                (vi) the Cooperative State Research, Education, and 
            Extension Service.
        (2) Private sector.--Of the members appointed under paragraph 
    (1), the Secretary shall appoint at least 6 members that are 
    members of the private sector or come from institutions of higher 
    education.
        (3) Plant and agricultural sciences research.--Of the members 
    appointed under paragraph (1), the Secretary shall appoint at least 
    3 members that have an extensive background and preeminence in the 
    field of plant, animal, and agricultural sciences research.
        (4) Chairperson.--Of the members appointed under paragraph (1), 
    the Secretary shall designate a Chairperson that has significant 
    leadership experience in educational and research institutions and 
    indepth knowledge of the research enterprises of the United States.
        (5) Consultation.--Before appointing members of the Task Force 
    under this subsection, the Secretary shall consult with the 
    National Academy of Sciences and the Office of Science and 
    Technology Policy.
    (c) Duties.--The Task Force shall--
        (1) conduct a review of the purpose, efficiency, effectiveness, 
    and impact on agricultural research of the Agricultural Research 
    Service;
        (2) conduct a review and evaluation of the merits of 
    establishing one or more National Institutes (such as National 
    Institutes for Plant and Agricultural Sciences) focused on 
    disciplines important to the progress of food and agricultural 
    sciences, and, if establishment of one or more National Institutes 
    is recommended, provide further recommendations to the Secretary, 
    including the structure for establishing each Institute, the 
    multistate area location of each Institute, and the amount of 
    funding necessary to establish each Institute; and
        (3) submit the reports required by subsection (d).
    (d) Reports.--Not later than 12 months after the date of enactment 
of this Act, the Task Force shall submit to the Committee on 
Agriculture of the House of Representatives, the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, and the Secretary--
        (1) a report on the review and evaluation required under 
    subsection (c)(1); and
        (2) a report on the review and evaluation required under 
    subsection (c)(2).
    (e) Funding.--The Secretary shall use to carry out this section not 
more than 0.1 percent of the amount of appropriations available to the 
Agricultural Research Service for fiscal year 2003.

SEC. 7405. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    (a) Definition of Beginning Farmer or Rancher.--In this section, 
the term ``beginning farmer or rancher'' means a person that--
        (1)(A) has not operated a farm or ranch; or
        (B) has operated a farm or ranch for not more than 10 years; 
    and
        (2) meets such other criteria as the Secretary may establish.
    (b) Program.--The Secretary shall establish a beginning farmer and 
rancher development program to provide training, education, outreach, 
and technical assistance initiatives for beginning farmers or ranchers.
    (c) Grants.--
        (1) In general.--In carrying out this section, the Secretary 
    shall make competitive grants to support new and established local 
    and regional training, education, outreach, and technical 
    assistance initiatives for beginning farmers or ranchers, including 
    programs and services (as appropriate) relating to--
            (A) mentoring, apprenticeships, and internships;
            (B) resources and referral;
            (C) assisting beginning farmers or ranchers in acquiring 
        land from retiring farmers and ranchers;
            (D) innovative farm and ranch transfer strategies;
            (E) entrepreneurship and business training;
            (F) model land leasing contracts;
            (G) financial management training;
            (H) whole farm planning;
            (I) conservation assistance;
            (J) risk management education;
            (K) diversification and marketing strategies;
            (L) curriculum development;
            (M) understanding the impact of concentration and 
        globalization;
            (N) basic livestock and crop farming practices;
            (O) the acquisition and management of agricultural credit;
            (P) environmental compliance;
            (Q) information processing; and
            (R) other similar subject areas of use to beginning farmers 
        or ranchers.
        (2) Eligibility.--To be eligible to receive a grant under this 
    subsection, the recipient shall be a collaborative State, tribal, 
    local, or regionally-based network or partnership of public or 
    private entities, which may include--
            (A) a State cooperative extension service;
            (B) a Federal, State, or tribal agency;
            (C) a community-based and nongovernmental organization;
            (D) a college or university (including an institution 
        awarding an associate's degree) or foundation maintained by a 
        college or university; or
            (E) any other appropriate partner, as determined by the 
        Secretary.
        (3) Term of grant.--The term of a grant under this subsection 
    shall not exceed 3 years.
        (4) Matching requirement.--To be eligible to receive a grant 
    under this subsection, a recipient shall provide a match in the 
    form of cash or in-kind contributions in an amount equal to 25 
    percent of the funds provided by the grant.
        (5) Set-aside.--Not less than 25 percent of funds used to carry 
    out this subsection for a fiscal year shall be used to support 
    programs and services that address the needs of--
            (A) limited resource beginning farmers or ranchers (as 
        defined by the Secretary);
            (B) socially disadvantaged beginning farmers or ranchers 
        (as defined in section 355(e) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2003(e)); and
            (C) farmworkers desiring to become farmers or ranchers.
        (6) Prohibition.--A grant made under this subsection may not be 
    used for the planning, repair, rehabilitation, acquisition, or 
    construction of a building or facility.
        (7) Administrative costs.--The Secretary shall use not more 
    than 4 percent of the funds made available to carry out this 
    subsection for administrative costs incurred by the Secretary in 
    carrying out this section.
    (d) Education Teams.--
        (1) In general.--In carrying out this section, the Secretary 
    shall establish beginning farmer and rancher education teams to 
    develop curricula and conduct educational programs and workshops 
    for beginning farmers or ranchers in diverse geographical areas of 
    the United States.
        (2) Curriculum.--In promoting the development of curricula, the 
    Secretary shall, to the maximum extent practicable, include modules 
    tailored to specific audiences of beginning farmers or ranchers, 
    based on crop or regional diversity.
        (3) Composition.--In establishing an education team for a 
    specific program or workshop, the Secretary shall, to the maximum 
    extent practicable--
            (A) obtain the short-term services of specialists with 
        knowledge and expertise in programs serving beginning farmers 
        or ranchers; and
            (B) use officers and employees of the Department with 
        direct experience in programs of the Department that may be 
        taught as part of the curriculum for the program or workshop.
        (4) Cooperation.--
            (A) In general.--In carrying out this subsection, the 
        Secretary shall cooperate, to the maximum extent practicable, 
        with--
                (i) State cooperative extension services;
                (ii) Federal and State agencies;
                (iii) community-based and nongovernmental 
            organizations;
                (iv) colleges and universities (including an 
            institution awarding an associate's degree) or foundations 
            maintained by a college or university; and
                (v) other appropriate partners, as determined by the 
            Secretary.
            (B) Cooperative agreement.--Notwithstanding chapter 63 of 
        title 31, United States Code, the Secretary may enter into a 
        cooperative agreement to reflect the terms of any cooperation 
        under subparagraph (A).
    (e) Curriculum and Training Clearinghouse.--The Secretary shall 
establish an online clearinghouse that makes available to beginning 
farmers or ranchers education curricula and training materials and 
programs, which may include online courses for direct use by beginning 
farmers or ranchers.
    (f) Stakeholder Input.--In carrying out this section, the Secretary 
shall seek stakeholder input from--
        (1) beginning farmers and ranchers;
        (2) national, State, tribal, and local organizations and other 
    persons with expertise in operating beginning farmer and rancher 
    programs; and
        (3) the Advisory Committee on Beginning Farmers and Ranchers 
    established under section 5 of the Agricultural Credit Improvement 
    Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554).
    (g) Participation by Other Farmers and Ranchers.--Nothing in this 
section prohibits the Secretary from allowing farmers and ranchers who 
are not beginning farmers or ranchers from participating in programs 
authorized under this section to the extent that the Secretary 
determines that such participation is appropriate and will not detract 
from the primary purpose of educating beginning farmers and ranchers.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2002 through 2007.

SEC. 7406. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
              AGRICULTURAL RESEARCH.

    It is the sense of Congress that--
        (1) Federal funding for food and agricultural research has been 
    essentially constant for 2 decades, putting at risk the scientific 
    base on which food and agricultural advances have been made;
        (2) the resulting increase in the relative proportion of 
    private sector, industry investments in food and agricultural 
    research has led to questions about the independence and 
    objectivity of research and outreach conducted by the Federal and 
    university research sectors; and
        (3) funding for food and agricultural research should be at 
    least doubled over the next 5 fiscal years--
            (A) to restore the balance between public and private 
        sector funding for food and agricultural research; and
            (B) to maintain the scientific base on which food and 
        agricultural advances are made.

SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    The Secretary shall ensure that segregated data on the production 
and marketing of organic agricultural products is included in the 
ongoing baseline of data collection regarding agricultural production 
and marketing.

SEC. 7408. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

    The Secretary, acting through the Agricultural Research Service 
(including the National Agricultural Library) and the Economic Research 
Service, shall facilitate access by research and extension 
professionals, farmers, and other interested persons in the United 
States to, and the use by those persons of, organic research conducted 
outside the United States.

SEC. 7409. REPORT ON PRODUCERS AND HANDLERS OF ORGANIC AGRICULTURAL 
              PRODUCTS.

    Not later than 1 year after funds are made available to carry out 
this section, the Secretary shall submit to Congress a report that--
        (1) describes--
            (A) the extent to which producers and handlers of organic 
        agricultural products are contributing to research and 
        promotion programs of the Department;
            (B) the extent to which producers and handlers of organic 
        agricultural products are surveyed for ideas for research and 
        promotion;
            (C) ways in which the programs reflect the contributions 
        made by producers and handlers of organic agricultural products 
        and directly benefit the producers and handlers; and
            (D) the implementation of initiatives that directly benefit 
        organic producers and handlers; and
        (2) evaluates industry and other proposals for improving the 
    treatment of certified organic agricultural products under Federal 
    marketing orders, including proposals to target additional 
    resources for research and promotion of organic products and to 
    differentiate between certified organic and other products in new 
    or existing volume limitations or other orderly marketing 
    requirements.

SEC. 7410. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.

    It is the sense of Congress that, not later than 1 year after the 
date of enactment of this Act, the Secretary should--
        (1) review the recommendations of the Committee on Genetically 
    Modified Pest-Protected Plants of the Board on Agriculture and 
    Natural Resources of the National Research Council made during 2000 
    and the Committee on Environmental Impacts Associated with 
    Commercialization of Transgenic Plants made during 2002, concerning 
    food safety, ecological research, monitoring needs for transgenic 
    crops with plant incorporated protectants, and the environmental 
    effects of transgenic plants; and
        (2) 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 actions taken to 
    implement those recommendations by agencies within the Department, 
    including agencies that develop or implement programs or objectives 
    relating to marketing, regulation, food safety, research, 
    education, or economics.

SEC. 7411. STUDY OF NUTRIENT BANKING.

    (a) In General.--The Secretary may conduct a study to evaluate 
nutrient banking for the purpose of enhancing the health and viability 
of watersheds in areas with large concentrations of animal producing 
units.
    (b) Components.--In conducting any study under subsection (a), the 
Secretary shall evaluate the costs, needs, and means by which litter 
may be collected and distributed outside the applicable watershed to 
reduce potential point source and nonpoint source phosphorous 
pollution.
    (c) Report.--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 
describes the results of any study conducted under subsection (a).

SEC. 7412. GRANTS FOR YOUTH ORGANIZATIONS.

    Title IV of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as amended by section 
7206(e)) is amended by adding at the end the following:

``SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.

    ``(a) In General.--The Secretary, acting through the Administrator 
of the Cooperative State Research, Education, and Extension Service, 
shall make grants to the Girl Scouts of the United States of America, 
the Boy Scouts of America, the National 4-H Council, and the National 
FFA Organization to establish pilot projects to expand the programs 
carried out by the organizations in rural areas and small towns 
(including, with respect to the National 4-H Council, activities 
provided for in Public Law 107-19 (115 Stat. 153)).
    ``(b) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available $8,000,000 for fiscal year 2002, 
which shall remain available until expended.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2003 through 2007.''.

                       Subtitle E--Miscellaneous

SEC. 7501. RESIDENT INSTRUCTION AND DISTANCE EDUCATION AT INSTITUTIONS 
              OF HIGHER EDUCATION IN UNITED STATES INSULAR AREAS.

    (a) Purpose.--It is the purpose of this subtitle to promote and 
strengthen higher education in the food and agricultural sciences at 
institutions of higher education (as defined in section 101(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1001(a))) that have 
demonstrable capacity to carry out teaching and extension programs in 
food and agricultural sciences and that are located in the insular 
areas of the Commonwealth of Puerto Rico, the Virgin Islands of the 
United States, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Federated States of Micronesia, the Republic of 
the Marshall Islands, or the Republic of Palau by formulating and 
administering programs to enhance teaching programs in agriculture, 
natural resources, forestry, veterinary medicine, home economics, and 
disciplines closely allied to the food and agriculture production and 
delivery systems.

SEC. 7502. DEFINITIONS.

    (a) In General.--Section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
amended--
        (1) by redesignating paragraphs (10) through (17) as paragraphs 
    (11) through (18), respectively;
        (2) by inserting after paragraph (9) the following:
        ``(10) Insular area.--The term `insular area' means--
            ``(A) the Commonwealth of Puerto Rico;
            ``(B) Guam;
            ``(C) American Samoa;
            ``(D) the Commonwealth of the Northern Mariana Islands;
            ``(E) the Federated States of Micronesia;
            ``(F) the Republic of the Marshall Islands;
            ``(G) the Republic of Palau; and
            ``(H) the Virgin Islands of the United States.''; and
        (3) by striking paragraph (13) (as so redesignated) and 
    inserting the following:
        ``(13) State.--The term `State' means--
            ``(A) a State;
            ``(B) the District of Columbia; and
            ``(C) any insular area.''.
    (b) Effect of amendments.--The amendments made by subsection (a) 
shall not affect any basis for distribution of funds by formula (in 
effect on the date of enactment of this Act) to--
        (1) the Federated States of Micronesia;
        (2) the Republic of the Marshall Islands; or
        (3) the Republic of Palau.

SEC. 7503. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM 
              FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at the end the 
following:

    ``Subtitle O--Institutions of Higher Education in Insular Areas

``SEC. 1489. DEFINITION.

    ``For the purposes of this subtitle, the term `eligible 
institution' means an institution of higher education (as defined in 
section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) 
in an insular area that has demonstrable capacity to carry out teaching 
and extension programs in the food and agricultural sciences.

``SEC. 1490. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

    ``(a) In General.--The Secretary may make competitive or 
noncompetitive grants to eligible institutions in insular areas to 
strengthen the capacity of such institutions to carry out distance food 
and agricultural education programs using digital network technologies.
    ``(b) Use.--Grants made under this section shall be used--
        ``(1) to acquire the equipment, instrumentation, networking 
    capability, hardware and software, digital network technology, and 
    infrastructure necessary to teach students and teachers about 
    technology in the classroom;
        ``(2) to develop and provide educational services (including 
    faculty development) to prepare students or faculty seeking a 
    degree or certificate that is approved by the State or a regional 
    accrediting body recognized by the Secretary of Education;
        ``(3) to provide teacher education, library and media 
    specialist training, and preschool and teacher aid certification to 
    individuals who seek to acquire or enhance technology skills in 
    order to use technology in the classroom or instructional process;
        ``(4) to implement a joint project to provide education 
    regarding technology in the classroom with a local educational 
    agency, community-based organization, national nonprofit 
    organization, or business; or
        ``(5) to provide leadership development to administrators, 
    board members, and faculty of eligible institutions with 
    institutional responsibility for technology education.
    ``(c) Limitation on Use of Grant Funds.--Funds provided under this 
section shall not be used for the planning, acquisition, construction, 
rehabilitation, or repair of a building or facility.
    ``(d) Administration of program.--The Secretary may carry out this 
section in a manner that recognizes the different needs and 
opportunities for eligible institutions in the Atlantic and Pacific 
Oceans.
    ``(e) Matching requirement.--
        ``(1) In general.--The Secretary may establish a requirement 
    that an eligible institution receiving a grant under this section 
    shall provide matching funds from non-Federal sources in an amount 
    equal to not less than 50 percent of the grant.
        ``(2) Waivers.--If the Secretary establishes a matching 
    requirement under paragraph (1), the Secretary shall retain an 
    option to waive the requirement for an eligible institution for any 
    fiscal year if the Secretary determines that the institution will 
    be unlikely to meet the matching requirement for the fiscal year.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2002 through 2007.

``SEC. 1491. RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.

    ``(a) In General.--The Secretary of Agriculture shall make 
competitive grants to eligible institutions to--
        ``(1) strengthen institutional educational capacities, 
    including libraries, curriculum, faculty, scientific 
    instrumentation, instruction delivery systems, and student 
    recruitment and retention, in order to respond to identified State, 
    regional, national, or international education needs in the food 
    and agricultural sciences;
        ``(2) attract and support undergraduate and graduate students 
    in order to educate them in identified areas of national need in 
    the food and agriculture sciences;
        ``(3) facilitate cooperative initiatives between two or more 
    insular area eligible institutions, or between those institutions 
    and units of State Government or organizations in the private 
    sector, to maximize the development and use of resources such as 
    faculty, facilities, and equipment to improve food and agricultural 
    sciences teaching programs; and
        ``(4) conduct undergraduate scholarship programs to assist in 
    meeting national needs for training food and agricultural 
    scientists.
    ``(b) Grant Requirements.--
        ``(1) The Secretary of Agriculture shall ensure that each 
    eligible institution, prior to receiving grant funds under 
    subsection (a), shall have a significant demonstrable commitment to 
    higher education programs in the food and agricultural sciences and 
    to each specific subject area for which grant funds under this 
    section are to be used.
        ``(2) The Secretary of Agriculture may require that any grant 
    awarded under this section contain provisions that require funds to 
    be targeted to meet the needs identified in section 1402.
    ``(e) Authorization of appropriations.--There are authorized to be 
appropriated such sums as are necessary for each of the fiscal years 
2002 through 2007 to carry out this section.''.

SEC. 7504. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
              AUTHORITIES.

    (a) Review of Payment of Compensation.--Section 415(e) of the Plant 
Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the 
final period the following: ``or a review of longer than 60 days by any 
officer or employee of the Federal Government other than the Secretary 
or the designee of the Secretary''.
    (b) Review of Certain Decisions.--Section 442 of the Plant 
Protection Act (7 U.S.C. 7772) is amended by adding at the end the 
following new subsection:
    ``(c) Secretarial Discretion.--The action of any officer, employee, 
or agent of the Secretary in carrying out this Act, including 
determining the amount of and making any payment authorized to be made 
under this title, shall not be subject to a review of longer than 60 
days by any officer or employee of the Federal Government other than 
the Secretary or the designee of the Secretary.''.
    (c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 7701 et 
seq.) is amended by inserting after section 418 the following new 
section:

``SEC. 419. METHYL BROMIDE.

    ``(a) In General.--The Secretary, upon request of State, local, or 
tribal authorities, shall determine whether methyl bromide treatments 
or applications required by State, local, or tribal authorities to 
prevent the introduction, establishment, or spread of plant pests 
(including diseases) or noxious weeds should be authorized as an 
official control or official requirement. The Secretary shall not 
authorize such treatments or applications unless the Secretary finds 
there is no other registered, effective, and economically feasible 
alternative available.
    ``(b) Methyl Bromide Alternative.--The Secretary, in consultation 
with State, local and tribal authorities, shall establish a program to 
identify alternatives to methyl bromide for treatment and control of 
plant pests and weeds. For uses where no registered, effective, 
economically feasible alternatives available can currently be 
identified, the Secretary shall initiate research programs to develop 
alternative methods of control and treatment.
    ``(c) Registry.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall publish, and thereafter 
maintain, a registry of State, local, and tribal requirements 
authorized by the Secretary under this section.
    ``(d) Administration.--
        ``(1) Timeline for determination.--Upon the promulgation of 
    regulations to carry out this section, the Secretary shall make the 
    determination required by subsection (a) not later than 90 days 
    after receiving the request for such a determination.
        ``(2) Construction.--Nothing in this section shall be construed 
    to alter or modify the authority of the Administrator of the 
    Environmental Protection Agency or to provide any authority to the 
    Secretary of Agriculture under the Clean Air Act or regulations 
    promulgated under the Clean Air Act.''.

SEC. 7505. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              DEVELOPING COUNTRIES.

    Title IV of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the 
end the following:

``SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              DEVELOPING COUNTRIES.

    ``(a) Eligible entity.--In this section, the term `eligible entity' 
means--
            ``(A) an institution of higher education that offers a 
        curriculum in agriculture or the biosciences;
            ``(B) a nonprofit organization; or
            ``(C) a consortium of for-profit institutions and 
        agricultural research institutions.
    ``(b) Grant Program.--
        ``(1) In general.--The Secretary (acting through the Foreign 
    Agricultural Service) shall establish and administer a program to 
    make competitive grants to eligible entities to develop 
    agricultural biotechnology for developing countries.
        ``(2) Use of funds.--Funds provided to an eligible entity under 
    this section may be used for projects that use biotechnology to--
            ``(A) enhance the nutritional content of agricultural 
        products that can be grown in developing countries;
            ``(B) increase the yield and safety of agricultural 
        products that can be grown in developing countries;
            ``(C) increase the yield of agricultural products that are 
        drought- and stress-resistant and that can be grown in 
        developing countries;
            ``(D) extend the growing range of crops that can be grown 
        in developing countries;
            ``(E) enhance the shelf-life of fruits and vegetables grown 
        in developing countries;
            ``(F) develop environmentally sustainable agricultural 
        products that can be grown in developing countries; and
            ``(G) develop vaccines to immunize against life-threatening 
        illnesses and other medications that can be administered by 
        consuming genetically-engineered agricultural products.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section 
for each of fiscal years 2002 through 2007.''.

SEC. 7506. LAND ACQUISITION AUTHORITY, NATIONAL PEANUT RESEARCH 
              LABORATORY, DAWSON, GEORGIA.

    The limitation on the authority of the Agricultural Research 
Service to acquire lands by purchase using funds appropriated under the 
heading Agricultural Research Service-salaries and expenses in the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2002 (Public Law 107-76; 115 Stat. 
708), shall not apply to the purchase of land for a research farm for 
the National Peanut Research Laboratory in Dawson, Georgia, for which a 
lease with an option to purchase has been entered into before the date 
of enactment of this Act.

                          TITLE VIII--FORESTRY
        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 8001. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP 
              INCENTIVE PROGRAM.

    (a) Repeal.--The Cooperative Forestry Assistance Act of 1978 is 
amended by striking section 4 (16 U.S.C. 2103) and section 6 (16 U.S.C. 
2103b).
    (b) Use of Remaining Funds.--Notwithstanding the amendment made by 
subsection (a), the Secretary of Agriculture may use funds appropriated 
for fiscal year 2002 for the forestry incentives program or the 
stewardship incentive program, but not expended before the date of 
enactment of this Act, to carry out sections 4 and 6 of the Cooperative 
Forestry Assistance Act of 1978, as in effect on the date before the 
date of enactment of this Act.

SEC. 8002. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

    (a) Purposes.--The purposes of this section are--
        (1) to strengthen the commitment of the Secretary of 
    Agriculture to sustainable forest management to enhance the 
    productivity of timber, fish and wildlife habitat, soil and water 
    quality, wetland, recreational resources, and aesthetic values of 
    forest land; and
        (2) to establish a coordinated and cooperative Federal, State, 
    and local sustainable forestry program for the establishment, 
    management, maintenance, enhancement, and restoration of forests on 
    nonindustrial private forest land.
    (b) Forest Land Enhancement Program.--The Cooperative Forestry 
Assistance Act of 1978 is amended by inserting after section 3 (16 
U.S.C. 2102) the following:

``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

    ``(a) Establishment.--
        ``(1) In general.--The Secretary of Agriculture shall establish 
    a forest land enhancement program--
            ``(A) to provide financial assistance to State foresters; 
        and
            ``(B) to encourage the long-term sustainability of 
        nonindustrial private forest lands in the United States by 
        assisting the owners of nonindustrial private forest lands, 
        through State foresters, in more actively managing the 
        nonindustrial private forest lands and related resources of 
        those owners through the use of State, Federal, and private 
        sector resource management expertise, financial assistance, and 
        educational programs.
        ``(2) Coordination and consultation.--The Secretary, acting 
    through State foresters, shall implement the program--
            ``(A) in coordination with the State Forest Stewardship 
        Coordinating Committees; and
            ``(B) in consultation with other Federal, State, and local 
        natural resource management agencies, institutions of higher 
        education, and a broad range of private sector interests.
    ``(b) Program Objectives.--In implementing the program, the 
Secretary shall target resources to achieve the following objectives:
        ``(1) Investing in practices to establish, restore, protect, 
    manage, maintain, and enhance the health and productivity of the 
    nonindustrial private forest lands in the United States for timber, 
    habitat for flora and fauna, soil, water, and air quality, 
    wetlands, and riparian buffers.
        ``(2) Ensuring that afforestation, reforestation, improvement 
    of poorly stocked stands, timber stand improvement, practices 
    necessary to improve seedling growth and survival, and growth 
    enhancement practices occur where needed to enhance and sustain the 
    long-term productivity of timber and nontimber forest resources to 
    help meet future public demand for all forest resources and provide 
    environmental benefits.
        ``(3) Reducing the risks and helping restore, recover, and 
    mitigate the damage to forests caused by fire, insects, invasive 
    species, disease, and damaging weather.
        ``(4) Increasing and enhancing carbon sequestration 
    opportunities.
        ``(5) Enhancing implementation of agroforestry practices.
        ``(6) Maintaining and enhancing the forest landbase and 
    leverage State and local financial and technical assistance to 
    owners that promote the same conservation and environmental values.
        ``(7) Preserving the aesthetic quality of nonindustrial private 
    forest lands and providing opportunities for outdoor recreation.
    ``(c) State Priority Plan.--
        ``(1) Development.--The State Forester and State Forest 
    Stewardship Coordinating Committee of a State shall jointly develop 
    and submit to the Secretary a State priority plan that is intended 
    to promote forest management objectives in that State.
        ``(2) Report.--Not later than September 30, 2006, each State 
    that implemented a State priority plan shall submit to the 
    Secretary a report describing the status of all activities and 
    practices funded under the program as of that date.
    ``(d) Owner Eligibility for Assistance.--
        ``(1) Eligibility criteria.--To be eligible for cost-share 
    assistance under the program, an owner of nonindustrial private 
    forest lands shall agree--
            ``(A) to develop and implement, in cooperation with a State 
        forester, another State official, or a professional resources 
        manager, a management plan that--
                ``(i) except as provided in paragraph (2) or (3), 
            provides for the treatment of not more than 1,000 acres of 
            nonindustrial private forest lands;
                ``(ii) is approved by the State forester; and
                ``(iii) addresses site specific activities and 
            practices; and
            ``(B) to implement approved activities and practices in a 
        manner consistent with the management plan for a period of not 
        less than 10 years, unless the State forester approves a 
        modification to the plan.
        ``(2) Public benefit exception.--The Secretary may increase the 
    acreage limitation specified in paragraph (1)(A)(i) to not more 
    than 5,000 acres for an owner of nonindustrial private forest lands 
    if the Secretary, in consultation with the State forester, 
    determines that significant public benefits will accrue as a result 
    of the provision of cost-share assistance under the program for the 
    treatment of the additional acreage.
        ``(3) Plan development exception.--An owner may receive cost-
    share assistance under the program for the purpose of developing a 
    management plan under subsection (e) that provides for the 
    treatment of acreage in excess of the acreage limitations specified 
    in paragraphs (1)(A)(i) and (2), except that the owner's 
    eligibility for cost-share assistance to implement approved 
    activities and practices under the management plan remains subject 
    to the acreage limitation specified in paragraph (1)(A)(i) or, if 
    the Secretary makes the determination described in paragraph (2), 
    the acreage limitation specified in that paragraph.
    ``(e) Management Plan.--
        ``(1) Submission and content.--An owner of nonindustrial 
    private forest lands that seeks to participate in the program shall 
    submit to the State forester of the State in which the lands are 
    located a management plan that--
            ``(A) identifies and describes projects and activities to 
        be carried out by the owner to protect or enhance soil, water, 
        air, range and aesthetic quality, recreation, timber, water, 
        wetland, or fish and wildlife resources on the lands in a 
        manner that is compatible with the objectives of the owner;
            ``(B) addresses any criteria established by the State and 
        the applicable Committee; and
            ``(C) meets the other requirements of this section.
        ``(2) Lands covered.--At a minimum, the management plan shall 
    apply to those portions of the nonindustrial private forest lands 
    of the owner on which any project or activity funded under the 
    program will be carried out. In a case in which a project or 
    activity may affect acreage outside the portion of the land on 
    which the project or activity is carried out, the management plan 
    shall apply to all lands of the owner that are in forest cover and 
    may be affected by the project or activity.
    ``(f) Approved Activities.--
        ``(1) State list.--The Secretary shall develop for each State a 
    list of approved forest activities and practices eligible for cost-
    share assistance that meets the purposes of the program. The 
    Secretary shall develop the list for a State in consultation with 
    the State forester and the Committee for that State.
        ``(2) Types of activities.--Approved activities and practices 
    under paragraph (1) may consist of activities and practices for the 
    following purposes:
            ``(A) The establishment, management, maintenance, and 
        restoration of forests for shelterbelts, windbreaks, aesthetic 
        quality, and other conservation purposes.
            ``(B) The sustainable growth and management of forests for 
        timber production.
            ``(C) The restoration, use, and enhancement of forest 
        wetland and riparian areas.
            ``(D) The protection of water quality and watersheds 
        through--
                ``(i) the planting of trees in riparian areas; and
                ``(ii) the enhanced management and maintenance of 
            native vegetation on land vital to water quality.
            ``(E) The management, maintenance, restoration, or 
        development of habitat for plants, fish, and wildlife.
            ``(F) The control, detection, monitoring, and prevention of 
        the spread of invasive species and pests on nonindustrial 
        private forest lands.
            ``(G) The restoration of nonindustrial private forest land 
        affected by invasive species and pests.
            ``(H) The conduct of other management activities, such as 
        the reduction of hazardous fuels, that reduce the risks to 
        forests posed by, and that restore, recover, and mitigate the 
        damage to forests caused by, fire or any other catastrophic 
        event, as determined by the Secretary.
            ``(I) The development of management plans;
            ``(J) The conduct of energy conservation and carbon 
        sequestration activities.
            ``(K) The conduct of other activities approved by the 
        Secretary, in consultation with the State forester and the 
        appropriate Committees.
    ``(g) Reimbursement of Eligible Activities.--
        ``(1) In general.--In the case of an eligible owner that has an 
    approved management plan, the Secretary shall share the cost of 
    implementing the approved activities and practices that the 
    Secretary determines are appropriate.
        ``(2) Rate.--The Secretary shall determine the appropriate 
    reimbursement rate for cost-share payments under paragraph (1) and 
    the schedule for making those payments.
        ``(3) Maximum cost share.--The Secretary shall not make cost-
    share payments under this subsection to an owner in an amount in 
    excess of 75 percent, or a lower percentage as determined by the 
    State forester, of the total cost to the owner to implement the 
    approved activities and practices under the management plan.
        ``(4) Aggregate payment limit.--The Secretary shall determine 
    the maximum aggregate amount of cost-share payments that an owner 
    may receive under the program.
        ``(5) Consultation.--The Secretary shall make determinations 
    under this subsection in consultation with the State forester.
    ``(h) Recapture.--
        ``(1) In general.--The Secretary shall establish and implement 
    a mechanism to recapture payments made to an owner in the event 
    that the owner fails to implement an approved activity or practice 
    specified in the management plan for which the owner received cost-
    share payments.
        ``(2) Additional remedy.--The remedy provided in paragraph (1) 
    is in addition to any other remedy available to the Secretary.
    ``(i) Distribution of Cost-Share Funds.--The Secretary, acting 
through the State foresters, shall distribute funds available for cost 
sharing under the program only after giving appropriate consideration 
to the following factors:
        ``(1) The public benefits that would result from the 
    distribution.
        ``(2) The total acreage of nonindustrial private forest lands 
    in each State.
        ``(3) The potential productivity of those lands, as determined 
    by the Secretary.
        ``(4) The number of owners eligible for cost sharing in each 
    State.
        ``(5) The opportunities to enhance nontimber resources on those 
    lands, including--
            ``(A) the protection of riparian buffers and forest 
        wetland;
            ``(B) the preservation of fish and wildlife habitat;
            ``(C) the enhancement of soil, air, and water quality; and
            ``(D) the preservation of aesthetic quality and 
        opportunities for outdoor recreation.
        ``(6) The anticipated demand for timber and nontimber resources 
    in each State.
        ``(7) The need to improve forest health to minimize the 
    damaging effects of catastrophic fire, insects, disease, or 
    weather.
        ``(8) The need and demand for agroforestry practices in each 
    State.
        ``(9) The need to maintain and enhance the forest landbase.
        ``(10) The need for afforestation, reforestation, and timber 
    stand improvement.
    ``(j) Availability of Funds.--The Secretary shall use $100,000,000 
of funds of the Commodity Credit Corporation to carry out the Program 
during the period beginning on the date of enactment of the Farm 
Security and Rural Investment Act of 2002 and ending on September 30, 
2007.
    ``(k) Definitions.--In this section:
        ``(1) Nonindustrial private forest lands.--The term 
    `nonindustrial private forest lands' means rural lands, as 
    determined by the Secretary, that--
            ``(A) have existing tree cover or are suitable for growing 
        trees; and
            ``(B) are owned by any nonindustrial private individual, 
        group, association, corporation, Indian tribe, or other private 
        legal entity so long as the individual, group, association, 
        corporation, tribe, or entity has definitive decision-making 
        authority over the lands.
        ``(2) Committee.--The terms `State Forest Stewardship 
    Coordinating Committee' and `Committee' means a State Forest 
    Stewardship Coordinating Committee established under section 19(b).
        ``(3) Indian tribe.--The term `Indian tribe' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
        ``(4) Owner.--The term `owner' means an owner of nonindustrial 
    private forest land.
        ``(5) Program.--The term `program' means the forest land 
    enhancement program established by this section.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
        ``(7) State forester.--The term `State forester' means the 
    director or other head of a State Forestry Agency or equivalent 
    State official.''.
    (c) Conforming Amendment.--Section 246(b)(2) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended 
by striking ``forestry incentive program'' and inserting ``forest land 
enhancement program''.

SEC. 8003. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) Findings.--Congress finds the following:
        (1) The severity and intensity of wildland fires has increased 
    dramatically over the past few decades as a result of past fire and 
    land management policies.
        (2) The record 2000 fire season is a prime example of what can 
    be expected if action is not taken.
        (3) Wildland fires threaten not only the forested resources of 
    the United States, but also the thousands of communities 
    intermingled with the wildlands in the wildland-urban interface.
        (4) The National Fire Plan, if implemented to achieve 
    appropriate priorities, is the proper, coordinated, and most 
    effective means to address the issue of wildfires.
        (5) While adequate authorities exist to tackle the wildfire 
    issues at the landscape level on Federal lands, there is limited 
    authority to take action on most private lands, and the largest 
    threat to life and property exists on private lands.
        (6) There is a significant Federal interest in enhancing 
    community protection from wildfire.
    (b) Enhanced Protection.--The Cooperative Forestry Assistance Act 
of 1978 is amended by inserting after section 10 (16 U.S.C. 2106) the 
following:

``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

    ``(a) Cooperative Management Related to Wildfire Threats.--The 
Secretary may cooperate with State foresters and equivalent State 
officials in the management of lands in the United States for the 
following purposes:
        ``(1) Aid in wildfire prevention and control.
        ``(2) Protect communities from wildfire threats.
        ``(3) Enhance the growth and maintenance of trees and forests 
    that promote overall forest health.
        ``(4) Ensure the continued production of all forest resources, 
    including timber, outdoor recreation opportunities, wildlife 
    habitat, and clean water, through conservation of forest cover on 
    watersheds, shelterbelts, and windbreaks.
    ``(b) Community and Private Land Fire Assistance Program.--
        ``(1) Establishment; purpose.--The Secretary shall establish a 
    Community and Private Land Fire Assistance program (in this 
    subsection referred to as the `Program')--
            ``(A) to focus the Federal role in promoting optimal 
        firefighting efficiency at the Federal, State, and local 
        levels;
            ``(B) to augment Federal projects that establish landscape 
        level protection from wildfires;
            ``(C) to expand outreach and education programs to 
        homeowners and communities about fire prevention; and
            ``(D) to establish space around homes and property of 
        private landowners that is defensible against wildfires.
        ``(2) Administration and implementation.--The Program shall be 
    administered by the Forest Service and implemented through State 
    foresters or equivalent State officials.
        ``(3) Components.--In coordination with existing authorities 
    under this Act, the Secretary, in consultation with the State 
    forester or equivalent State official, may undertake on non-Federal 
    lands--
            ``(A) fuel hazard mitigation and prevention;
            ``(B) invasive species management;
            ``(C) multiresource wildfire planning;
            ``(D) community protection planning;
            ``(E) community and landowner education enterprises, 
        including the program known as FIREWISE;
            ``(F) market development and expansion;
            ``(G) improved wood utilization; and
            ``(H) special restoration projects.
        ``(4) Consent required.--Program activities undertaken by the 
    Secretary on non-Federal lands shall be undertaken only with the 
    consent of the owner of the lands.
        ``(5) Considerations.--The Secretary shall use persons in the 
    local community wherever possible to carry out projects under the 
    Program.
    ``(c) Consultation.--In carrying out this section, the Secretary 
shall consult with the Administrator of the United States Fire 
Administration, the Director of the National Institute of Standards and 
Technology, and the heads of other Federal agencies, as necessary.
    ``(d) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary to carry out this section--
        ``(1) $35,000,000 for each of fiscal years 2002 through 2007; 
    and
        ``(2) such sums as are necessary for fiscal years 
    thereafter.''.

                  Subtitle B--Amendments to Other Laws

SEC. 8101. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE 
              RESOURCES EXTENSION ACTIVITIES.

    (a) Sustainable Forestry Outreach Initiative.--The Renewable 
Resources Extension Act of 1978 is amended by inserting after section 
5A (16 U.S.C. 1674a) the following:

``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

    ``The Secretary shall establish a program, to be known as the 
`Sustainable Forestry Outreach Initiative', to educate landowners 
concerning the following:
        ``(1) The value and benefits of practicing sustainable 
    forestry.
        ``(2) The importance of professional forestry advice in 
    achieving sustainable forestry objectives.
        ``(3) The variety of public and private sector resources 
    available to assist the landowners in planning for and practicing 
    sustainable forestry.''.
    (b) Renewable Resources Extension Activities.--
        (1) Authorization of appropriations.--Section 6 of the 
    Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
    amended by striking the first sentence and inserting the following: 
    ``There is authorized to be appropriated to carry out this Act 
    $30,000,000 for each of fiscal years 2002 through 2007.''.
        (2) Termination date.--Section 8 of the Renewable Resources 
    Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is 
    amended by striking ``2000'' and inserting ``2007''.

SEC. 8102. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(7 U.S.C. 6704(d)) is amended by striking ``2002'' and inserting 
``2007''.

                  Subtitle C--Miscellaneous Provisions

SEC. 8201. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.

    It is the sense of Congress to reaffirm the importance of Public 
Law 87-788 (16 U.S.C. 582a et seq.), commonly known as the ``McIntire-
Stennis Cooperative Forestry Act''.

                            TITLE IX--ENERGY

SEC. 9001. DEFINITIONS.

    In this title:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) Biobased product.--The term ``biobased product'' means a 
    product determined by the Secretary to be a commercial or 
    industrial product (other than food or feed) that is composed, in 
    whole or in significant part, of biological products or renewable 
    domestic agricultural materials (including plant, animal, and 
    marine materials) or forestry materials.
        (3) Biomass.--
            (A) In general.--The term ``biomass'' means any organic 
        material that is available on a renewable or recurring basis.
            (B) Inclusions.--The term ``biomass'' includes--
                (i) agricultural crops;
                (ii) trees grown for energy production;
                (iii) wood waste and wood residues;
                (iv) plants (including aquatic plants and grasses);
                (v) residues;
                (vi) fibers;
                (vii) animal wastes and other waste materials; and
                (viii) fats, oils, and greases (including recycled 
            fats, oils, and greases).
            (C) Exclusions.--The term ``biomass'' does not include--
                (i) paper that is commonly recycled; or
                (ii) unsegregated solid waste.
        (4) Renewable energy.--The term ``renewable energy'' means 
    energy derived from--
            (A) a wind, solar, biomass, or geothermal source; or
            (B) hydrogen derived from biomass or water using an energy 
        source described in subparagraph (A).
        (5) Rural small business.--The term ``rural small business'' 
    has the meaning that the Secretary shall prescribe by regulation.
        (6) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.

SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Application of Section.--Except as provided in subsection (c), 
each Federal agency shall comply with the requirements set forth in 
this section and any regulations issued under this section, with 
respect to any purchase or acquisition of a procurement item where the 
purchase price of the item exceeds $10,000 or where the quantity of 
such items or of functionally equivalent items purchased or acquired in 
the course of the preceding fiscal year was $10,000 or more.
    (b) Procurement Subject to Other Law.--Any procurement, by any 
Federal agency, which is subject to regulations of the Administrator 
under section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6962), 
shall not be subject to the requirements of this section to the extent 
that such requirements are inconsistent with such regulations.
    (c) Procurement Preference.--(1) Except as provided in paragraph 
(2), after the date specified in applicable guidelines prepared 
pursuant to subsection (e) of this section, each Federal agency which 
procures any items designated in such guidelines shall, in making 
procurement decisions, give preference to such items composed of the 
highest percentage of biobased products practicable, consistent with 
maintaining a satisfactory level of competition, considering such 
guidelines.
    (2) Agency flexibility.--Notwithstanding paragraph (1), an agency 
may decide not to procure such items if the agency determines that the 
items--
        (A) are not reasonably available within a reasonable period of 
    time;
        (B) fail to meet the performance standards set forth in the 
    applicable specifications or fail to meet the reasonable 
    performance standards of the procuring agencies; or
        (C) are available only at an unreasonable price.
      (3) After the date specified in any applicable guidelines 
prepared pursuant to subsection (e) of this section, contracting 
offices shall require that, with respect to biobased products, vendors 
certify that the biobased products to be used in the performance of the 
contract will comply with the applicable specifications or other 
contractual requirements.
    (d) Specifications.--All Federal agencies that have the 
responsibility for drafting or reviewing specifications for procurement 
items procured by Federal agencies shall, within one year after the 
date of publication of applicable guidelines under subsection (e), or 
as otherwise specified in such guidelines, assure that such 
specifications require the use of biobased products consistent with the 
requirements of this section.
    (e) Guidelines.--
        (1) In general.--The Secretary, after consultation with the 
    Administrator, the Administrator of General Services, and the 
    Secretary of Commerce (acting through the Director of the National 
    Institute of Standards and Technology), shall prepare, and from 
    time to time revise, guidelines for the use of procuring agencies 
    in complying with the requirements of this section. Such guidelines 
    shall--
            (A) designate those items which are or can be produced with 
        biobased products and whose procurement by procuring agencies 
        will carry out the objectives of this section;
            (B) set forth recommended practices with respect to the 
        procurement of biobased products and items containing such 
        materials and with respect to certification by vendors of the 
        percentage of biobased products used; and
            (C) provide information as to the availability, relative 
        price, performance, and environmental and public health 
        benefits, of such materials and items and where appropriate 
        shall recommend the level of biobased material to be contained 
        in the procured product.
        (2) Considerations.--In making the designation under paragraph 
    (1)(A), the Secretary shall, at a minimum, consider--
            (A) the availability of such items; and
            (B) the economic and technological feasibility of using 
        such items, including life cycle costs.
        (3) Final guidelines.--The Secretary shall prepare final 
    guidelines under this section within 180 days after the date of 
    enactment of this Act.
    (f) Office of Federal Procurement Policy.--The Office of Federal 
Procurement Policy, in cooperation with the Secretary, shall implement 
the requirements of this section. It shall be the responsibility of the 
Office of Federal Procurement Policy to coordinate this policy with 
other policies for Federal procurement to implement the requirements of 
this section, and, every two years beginning in 2003, to report to the 
Congress on actions taken by Federal agencies and the progress made in 
the implementation of this section, including agency compliance with 
subsection (d).
    (g) Procurement Program.--(1) Within one year after the date of 
publication of applicable guidelines under subsection (e), each Federal 
agency shall develop a procurement program which will assure that items 
composed of biobased products will be purchased to the maximum extent 
practicable and which is consistent with applicable provisions of 
Federal procurement law.
    (2) Each procurement program required under this subsection shall, 
at a minimum, contain--
        (A) a biobased products preference program;
        (B) an agency promotion program to promote the preference 
    program adopted under subparagraph (A); and
        (C) annual review and monitoring of the effectiveness of an 
    agency's procurement program.
    (3) In developing the preference program, the following options 
shall be considered for adoption:
        (A) Case-by-case policy development.--Subject to the 
    limitations of subsection (c)(2) (A) through (C), a policy of 
    awarding contracts to the vendor offering an item composed of the 
    highest percentage of biobased products practicable. Subject to 
    such limitations, agencies may make an award to a vendor offering 
    items with less than the maximum biobased products content.
        (B) Minimum content standards.--Minimum biobased products 
    content specifications which are set in such a way as to assure 
    that the biobased products content required is consistent with the 
    requirements of this section, without violating the limitations of 
    subsection (c)(2) (A) through (C).
Federal agencies shall adopt one of the options set forth in 
subparagraphs (A) and (B) or a substantially equivalent alternative, 
for inclusion in the procurement program.
    (h) Labeling.--
        (1) In general.--The Secretary, in consultation with the 
    Administrator, shall establish a voluntary program under which the 
    Secretary authorizes producers of biobased products to use the 
    label ``U.S.D.A. Certified Biobased Product''.
        (2) Eligibility criteria.--Within one year after the date of 
    enactment of this Act, the Secretary, in consultation with the 
    Administrator, shall issue criteria for determining which products 
    may qualify to receive the label under paragraph (1). The criteria 
    shall encourage the purchase of products with the maximum biobased 
    content, and should, to the maximum extent possible, be consistent 
    with the guidelines issued under subsection (e).
        (3) Use of the label.--The Secretary shall ensure that the 
    label referred to in paragraph (1) is used only on products that 
    meet the criteria issued pursuant to paragraph (2).
        (4) Recognition.--The Secretary shall establish a voluntary 
    program to recognize Federal agencies and private entities that use 
    a substantial amount of biobased products.
    (i) Limitation.--Nothing in this section shall apply to the 
procurement of motor vehicle fuels or electricity.
    (j) Funding.--
        (1) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as may be necessary to carry out this 
    section.
        (2) Funding for testing of biobased products.--
            (A) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use $1,000,000 for each of 
        fiscal years 2002 through 2007 to support testing of biobased 
        products to carry out this section.
            (B) Use of funds.--Amounts made available under 
        subparagraph (A) may be used to support contracts or 
        cooperative agreements with entities that have experience and 
        special skills to conduct such testing.
            (C) Priority.--At the discretion of the Secretary, the 
        Secretary may give priority to the testing of products for 
        which private sector firms provide cost sharing for the 
        testing.

SEC. 9003. BIOREFINERY DEVELOPMENT GRANTS.

    (a) Purpose.--The purpose of this section is to assist in the 
development of new and emerging technologies for the use of biomass, 
including lignocellulosic biomass, so as to--
        (1) develop transportation and other fuels, chemicals, and 
    energy from renewable sources;
        (2) increase the energy independence of the United States;
        (3) provide beneficial effects on conservation, public health, 
    and the environment;
        (4) diversify markets for raw agricultural and forestry 
    products; and
        (5) create jobs and enhance the economic development of the 
    rural economy.
    (b) Definitions.--In this section:
        (1) Advisory committee.--The term ``Advisory Committee'' means 
    the Biomass Research and Development Technical Advisory Committee 
    established by section 306 of the Biomass Research and Development 
    Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224).
        (2) Biorefinery.--The term ``biorefinery'' means equipment and 
    processes that--
            (A) convert biomass into fuels and chemicals; and
            (B) may produce electricity.
        (3) Board.--The term ``Board'' means the Biomass Research and 
    Development Board established by section 305 of the Biomass 
    Research and Development Act of 2000 (7 U.S.C. 7624 note; Public 
    Law 106-224).
        (4) Indian tribe.--The term ``Indian tribe'' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
    (c) Grants.--The Secretary shall award grants to eligible entities 
to assist in paying the cost of development and construction of 
biorefineries to carry out projects to demonstrate the commercial 
viability of 1 or more processes for converting biomass to fuels or 
chemicals.
    (d) Eligible Entities.--An individual, corporation, farm 
cooperative, association of farmers, national laboratory, institution 
of higher education (as defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)), State or local energy agency or office, 
Indian tribe, or consortium comprised of any of those entities shall be 
eligible to receive a grant under subsection (c).
    (e) Competitive Basis for Awards.--
        (1) In general.--The Secretary shall award grants under 
    subsection (c) on a competitive basis after consulting the Board 
    and Advisory Committee.
        (2) Selection criteria.--
            (A) In general.--In selecting projects to receive grants 
        under subsection (c), the Secretary--
                (i) shall select projects based on the likelihood that 
            the projects will demonstrate the commercial viability of a 
            new and emerging process for converting biomass into fuels, 
            chemicals, or energy; and
                (ii) may consider the likelihood that the projects will 
            produce electricity.
            (B) Factors.--The factors to be considered under 
        subparagraph (A) may include--
                (i) the potential market for the product or products;
                (ii) the level of financial participation by the 
            applicants;
                (iii) the availability of adequate funding from other 
            sources;
                (iv) the beneficial impact on resource conservation, 
            public health, and the environment;
                (v) the participation of producer associations and 
            cooperatives;
                (vi) the timeframe in which the project will be 
            operational;
                (vii) the potential for rural economic development;
                (viii) the participation of multiple eligible entities; 
            and
                (ix) the potential for developing advanced industrial 
            biotechnology approaches.
    (f) Cost Sharing.--
        (1) In general.--The amount of a grant for a project awarded 
    under subsection (c) shall not exceed 30 percent of the cost of the 
    project.
        (2) Form of grantee share.--
            (A) In general.--The grantee share of the cost of a project 
        may be made in the form of cash or the provision of services, 
        material, or other in-kind contributions.
            (B) Limitation.--The amount of the grantee share of the 
        cost of a project that is made in the form of the provision of 
        services, material, or other in-kind contributions shall not 
        exceed 25 percent of the amount of the grantee share determined 
        under paragraph (1).
    (g) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.

SEC. 9004. BIODIESEL FUEL EDUCATION PROGRAM.

    (a) Establishment.--The Secretary shall, under such terms and 
conditions as are appropriate, make competitive grants to eligible 
entities to educate governmental and private entities that operate 
vehicle fleets, other interested entities (as determined by the 
Secretary), and the public about the benefits of biodiesel fuel use.
    (b) Eligible Entities.--To receive a grant under subsection (a), an 
entity--
        (1) shall be a nonprofit organization or institution of higher 
    education (as defined in section 101 of the Higher Education Act of 
    1965 (20 U.S.C. 1001));
        (2) shall have demonstrated knowledge of biodiesel fuel 
    production, use, or distribution; and
        (3) shall have demonstrated the ability to conduct educational 
    and technical support programs.
    (c) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    (d) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section $1,000,000 for 
each of fiscal years 2003 through 2007.

SEC. 9005. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall make competitive grants to 
eligible entities to carry out a program to assist farmers, ranchers, 
and rural small businesses in becoming more energy efficient and in 
using renewable energy technology and resources.
    (b) Eligible Entities.--Entities eligible to carry out a program 
under subsection (a) are--
        (1) a State energy or agricultural office;
        (2) a regional or State-based energy organization or energy 
    organization of an Indian tribe (as defined in section 4 of the 
    Indian Self-Determination and Education Assistance Act (25 U.S.C. 
    450b));
        (3) a land-grant college or university (as defined in section 
    1404 of the National Agricultural Research, Extension, and Teaching 
    Policy Act of 1977 (7 U.S.C. 3103)) or other institution of higher 
    education (as defined in section 101 of the Higher Education Act of 
    1965 (20 U.S.C. 1001));
        (4) a rural electric cooperative or utility;
        (5) a nonprofit organization; and
        (6) any other entity, as determined by the Secretary.
    (c) Merit Review.--
        (1) Merit review process.--The Secretary shall establish a 
    merit review process to review applications for grants under 
    subsection (a) that uses the expertise of other Federal agencies, 
    industry, and nongovernmental organizations.
        (2) Selection criteria.--In reviewing applications of eligible 
    entities to receive grants under subsection (a), the Secretary 
    shall consider--
            (A) the ability and expertise of the eligible entity in 
        providing professional energy audits and renewable energy 
        assessments;
            (B) the geographic scope of the program proposed by the 
        eligible entity;
            (C) the number of farmers, ranchers, and rural small 
        businesses to be assisted by the program;
            (D) the potential for energy savings and environmental and 
        public health benefits resulting from the program; and
            (E) the plan of the eligible entity for educating farmers, 
        ranchers, and rural small businesses on the benefits of energy 
        efficiency and renewable energy development.
    (d) Use of Grant Funds.--
        (1) Required uses.--A recipient of a grant under subsection (a) 
    shall use the grant funds to conduct and promote energy audits for 
    farmers, ranchers, and rural small businesses to provide farmers, 
    ranchers, and rural small businesses recommendations on how to 
    improve energy efficiency and use renewable energy technology and 
    resources.
        (2) Permitted uses.--In addition to the uses described in 
    paragraph (1), a recipient of a grant may use the grant funds to 
    make farmers, ranchers, and rural small businesses aware of, and 
    ensure that they have access to--
            (A) financial assistance under section 9006; and
            (B) other Federal, State, and local financial assistance 
        programs for which farmers, ranchers, and rural small 
        businesses may be eligible.
    (e) Cost Sharing.--A recipient of a grant under subsection (a) that 
conducts an energy audit for a farmer, rancher, or rural small business 
under subsection (d)(1) shall require that, as a condition of the 
energy audit, the farmer, rancher, or rural small business pay at least 
25 percent of the cost of the audit.
    (f) Use of Cost-Share Funds.--Funds collected by a recipient of a 
grant under subsection (e) as a result of activities carried out using 
the grant funds shall be used to conduct activities authorized under 
this section, as approved by the Secretary.
    (g) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    (h) Reports.--Not later than 4 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the 
implementation of this section.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.

SEC. 9006. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    (a) In General.--In addition to exercising authority to make loans 
and loan guarantees under other law, the Secretary shall make loans, 
loan guarantees, and grants to farmers, ranchers, and rural small 
businesses to--
        (1) purchase renewable energy systems; and
        (2) make energy efficiency improvements.
    (b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a farmer, rancher, or rural small business shall 
demonstrate financial need as determined by the Secretary.
    (c) Cost Sharing.--
        (1) In general.--
            (A) Grants.--The amount of a grant shall not exceed 25 
        percent of the cost of the activity funded under subsection 
        (a).
            (B) Maximum amount of combined grant and loan.--The 
        combined amount of a grant and loan made or guaranteed shall 
        not exceed 50 percent of the cost of the activity funded under 
        subsection (a).
        (2) Factors.--In determining the amount of a grant or loan, the 
    Secretary shall take into consideration, as applicable--
            (A) the type of renewable energy system to be purchased;
            (B) the estimated quantity of energy to be generated by the 
        renewable energy system;
            (C) the expected environmental benefits of the renewable 
        energy system;
            (D) the extent to which the renewable energy system will be 
        replicable;
            (E) the amount of energy savings expected to be derived 
        from the activity, as demonstrated by an energy audit 
        comparable to an energy audit under section 9005;
            (F) the estimated length of time it would take for the 
        energy savings generated by the activity to equal the cost of 
        the activity; and
            (G) other factors as appropriate.
    (d) Interest Rate.--
        (1) In general.--A loan made by the Secretary under subsection 
    (a) shall bear interest at the rate equivalent to the rate of 
    interest charged on Treasury securities of comparable maturity on 
    the date the loan is approved.
        (2) Duration.--The interest rate for each loan will remain in 
    effect for the term of the loan.
    (e) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    (f) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section $23,000,000 
for each of fiscal years 2003 through 2007.

SEC. 9007. HYDROGEN AND FUEL CELL TECHNOLOGIES.

    (a) In General.--The Secretary and the Secretary of Energy shall 
enter into a memorandum of understanding under which the Secretary and 
the Secretary of Energy shall cooperate in the application of hydrogen 
and fuel cell technology programs for rural communities and 
agricultural producers.
    (b) Dissemination of Information.--Under the memorandum of 
understanding, the Secretary shall work with the Secretary of Energy to 
disseminate information to rural communities and agricultural producers 
on potential applications of hydrogen and fuel cell technologies.

SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Funding.--The Biomass Research and Development Act of 2000 (7 
U.S.C. 7624 note; Public Law 106-224) is amended--
        (1) in section 307, by striking subsection (f);
        (2) by redesignating section 310 as section 311; and
        (3) by inserting after section 309 the following:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this title--
        ``(1) $5,000,000 for fiscal year 2002; and
        ``(2) $14,000,000 for each of fiscal years 2003 through 2007;
to remain available until expended.
    ``(b) Authorization of Appropriations.--In addition to amounts 
transferred under subsection (a), there are authorized to be 
appropriated to carry out this title $49,000,000 for each of fiscal 
years 2002 through 2007.''.
    (b) Termination of Authority.--Section 311 of the Biomass Research 
and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) 
(as redesignated by subsection (a)) is amended by striking ``December 
31, 2005'' and inserting ``September 30, 2007''.

SEC. 9009. COOPERATIVE RESEARCH AND EXTENSION PROJECTS.

    Section 221 of the Agricultural Risk Protection Act of 2000 (114 
Stat. 407) is amended--
        (1) by redesignating subsection (d) as subsection (f); and
        (2) by inserting after subsection (c) the following:
    ``(d) Cooperative Research.--
        ``(1) In general.--Subject to the availability of 
    appropriations, the Secretary, in cooperation with departments and 
    agencies participating in the U.S. Global Change Research Program 
    (which may use any of their statutory authorities) and with 
    eligible entities, may carry out research to promote understanding 
    of--
            ``(A) the flux of carbon in soils and plants (including 
        trees); and
            ``(B) the exchange of other greenhouse gases from 
        agriculture.
        ``(2) Eligible entities.--Research under this subsection may be 
    carried out through the competitive awarding of grants and 
    cooperative agreements to colleges and universities (as defined in 
    section 1404 of the National Agricultural Research, Extension, and 
    Teaching Policy Act of 1977 (7 U.S.C. 1303)).
        ``(3) Cooperative research purposes.--Research conducted under 
    this subsection shall encourage collaboration among scientists with 
    expertise in the areas of soil science, agronomy, agricultural 
    economics, forestry, and other agricultural sciences to focus on--
            ``(A) developing data addressing carbon losses and gains in 
        soils and plants (including trees) and the exchange of methane 
        and nitrous oxide from agriculture;
            ``(B) understanding how agricultural and forestry practices 
        affect the sequestration of carbon in soils and plants 
        (including trees) and the exchange of other greenhouse gases, 
        including the effects of new technologies such as biotechnology 
        and nanotechnology;
            ``(C) developing cost-effective means of measuring and 
        monitoring changes in carbon pools in soils and plants 
        (including trees), including computer models;
            ``(D) evaluating the linkage between federal conservation 
        programs and carbon sequestration;
            ``(E) developing methods, including remote sensing, to 
        measure the exchange of carbon and other greenhouse gases 
        sequestered, and to evaluate leakage, performance, and 
        permanence issues; and
            ``(F) assessing the applicability of the results of 
        research conducted under this subsection for developing methods 
        to account for the impact of agricultural activities (including 
        forestry) on the exchange of greenhouse gases.
        ``(4) Authorization of appropriation.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection for each of fiscal years 2002 through 2007.
    ``(e) Extension Projects.--
        ``(1) In general.--The Secretary, in cooperation with 
    departments and agencies participating in the U.S. Global Change 
    Research Program (which may use any of their statutory 
    authorities), and local extension agents, experts from institutions 
    of higher education that offer a curriculum in agricultural and 
    biological sciences, and other local agricultural or conservation 
    organizations, may implement extension projects (including on-farm 
    projects with direct involvement of agricultural producers) that 
    combine measurement tools and modeling techniques into integrated 
    packages to monitor the carbon sequestering benefits of 
    conservation practices and the exchange of greenhouse gas emissions 
    from agriculture which demonstrate the feasibility of methods of 
    measuring and monitoring--
            ``(A) changes in carbon content and other carbon pools in 
        soils and plants (including trees); and
            ``(B) the exchange of other greenhouse gases.
        ``(2) Extension project results.--The Secretary may disseminate 
    to farmers, ranchers, private forest landowners, and appropriate 
    State agencies in each State information concerning--
            ``(A) the results of projects under this subsection; and
            ``(B) the manner in which the methods used in the projects 
        might be applicable to the operations of the farmers, ranchers, 
        private forest landowners, and State agencies.
        ``(3) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection for each of fiscal years 2002 through 2007.''.

SEC. 9010. CONTINUATION OF BIOENERGY PROGRAM.

    (a) Definitions.--In this section:
        (1) Bioenergy.--The term ``bioenergy'' means--
            (A) biodiesel; and
            (B) fuel grade ethanol.
        (2) Biodiesel.--The term ``biodiesel'' means a monoalkyl ester 
    that meets the requirements of an appropriate American Society for 
    Testing and Materials standard.
        (3) Eligible commodity.--The term ``eligible commodity'' 
    means--
            (A) wheat, corn, grain sorghum, barley, oats, rice, 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard, crambe, sesame seed, and cottonseed;
            (B) a cellulosic commodity (such as hybrid poplar and 
        switch grass);
            (C) fats, oils, and greases (including recycled fats, oils, 
        and greases) derived from an agricultural product; and
            (D) any animal byproduct (in addition to oils, fats, and 
        greases) that may be used to produce bioenergy, as determined 
        by the Secretary.
        (4) Eligible producer.--The term ``eligible producer'' means a 
    producer that uses an eligible commodity to produce bioenergy.
    (b) Bioenergy Program.--
        (1) Continuation.--The Secretary shall continue the program 
    under part 1424 of title 7, Code of Federal Regulations (or any 
    successor regulation), under which the Secretary makes payments to 
    eligible producers to encourage increased purchases of eligible 
    commodities for the purpose of expanding production of such 
    bioenergy and supporting new production capacity for such 
    bioenergy.
        (2) Contracts.--To be eligible to receive a payment, an 
    eligible producer shall--
            (A) enter into a contract with the Secretary to increase 
        bioenergy production for 1 or more fiscal years; and
            (B) submit to the Secretary such records as the Secretary 
        may require as evidence of increased purchase and use of 
        eligible commodities for the production of bioenergy.
        (3) Payment.--
            (A) In general.--Under the program, the Secretary shall 
        make payments to eligible producers, based on the quantity of 
        bioenergy produced by the eligible producer during a fiscal 
        year that exceeds the quantity of bioenergy produced by the 
        eligible producer during the preceding fiscal year.
            (B) Payment rate.--
                (i) Producers of less than 65,000,000 gallons.--An 
            eligible producer that produces less than 65,000,000 
            gallons of bioenergy shall be reimbursed 1 feedstock unit 
            for every 2.5 feedstock units of eligible commodity used 
            for increased production.
                (ii) Producers of 65,000,000 or more gallons.--An 
            eligible producer that produces 65,000,000 or more gallons 
            of bioenergy shall be reimbursed 1 feedstock unit for every 
            3.5 feedstock units of eligible commodity used for 
            increased production.
            (C) Quarterly payments.--The Secretary shall make payments 
        to an eligible producer for each quarter of the fiscal year.
        (4) Proration.--If the amount made available for a fiscal year 
    under subsection (c) is insufficient to allow the payment of the 
    amount of the payments that eligible producers (that apply for the 
    payments) otherwise would receive under this subsection, the 
    Secretary shall prorate the amount of the funds among all such 
    eligible producers.
        (5) Overpayments.--If the total amount of payments that an 
    eligible producer receives for a fiscal year under this section 
    exceeds the amount that the eligible producer should have received 
    under this subsection, the eligible producer shall repay the amount 
    of the overpayment to the Secretary, with interest (as determined 
    by the Secretary).
        (6) Limitation.--No eligible producer shall receive more than 5 
    percent of the total amount made available under subsection (c) for 
    a fiscal year.
        (7) Other requirements.--To be eligible to receive a payment 
    under this subsection, an eligible producer shall meet other 
    requirements of Federal law (including regulations) applicable to 
    the production of bioenergy.
    (c) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall use to carry out this section--
        (1) not more than $150,000,000 for each of fiscal years 2003 
    through 2006; and
        (2) $0 for fiscal year 2007.

                         TITLE X--MISCELLANEOUS
                       Subtitle A--Crop Insurance

SEC. 10001. EQUAL CROP INSURANCE TREATMENT OF POTATOES AND SWEET 
              POTATOES.

    Section 508(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(2)) is amended in the first sentence by striking ``and 
potatoes'' and inserting ``, potatoes, and sweet potatoes''.

SEC. 10002. CONTINUOUS COVERAGE.

    Section 508(e)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)(4)) is amended--
        (1) in the paragraph heading, by striking ``Temporary 
    prohibition'' and inserting ``Prohibition''; and
        (2) by striking ``through 2005'' and inserting ``and 
    subsequent''.

SEC. 10003. QUALITY LOSS ADJUSTMENT PROCEDURES.

    Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) 
is amended--
        (1) in paragraph (3)--
            (A) by striking ``The Corporation'' and inserting the 
        following:
            ``(A) Review.--The Corporation''; and
            (B) by striking ``Based on'' and inserting the following:
            ``(B) Procedures.--Effective beginning not later than the 
        2004 reinsurance year, based on''; and
        (2) by adding at the end the following:
        ``(4) Quality of agricultural commodities delivered to 
    warehouse operators.--In administering this title, the Secretary 
    shall accept, in the same manner and under the same terms and 
    conditions, evidence of the quality of agricultural commodities 
    delivered to--
            ``(A) warehouse operators that are licensed under the 
        United States Warehouse Act (7 U.S.C. 241 et seq.);
            ``(B) warehouse operators that--
                ``(i) are licensed under State law; and
                ``(ii) have entered into a storage agreement with the 
            Commodity Credit Corporation; and
            ``(C) warehouse operators that--
                ``(i) are not licensed under State law but are in 
            compliance with State law regarding warehouses; and
                ``(ii) have entered into a commodity storage agreement 
            with the Commodity Credit Corporation.''.

SEC. 10004. ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM.

    Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is 
amended by adding at the end the following:
    ``(e) Adjusted Gross Revenue Insurance Pilot Program.--
        ``(1) In general.--The Corporation shall carry out, through at 
    least the 2004 reinsurance year, the adjusted gross revenue 
    insurance pilot program in effect for the 2002 reinsurance year.
        ``(2) Additional counties.--
            ``(A) In general.--In addition to counties otherwise 
        included in the pilot program, the Corporation shall include in 
        the pilot program for the 2003 reinsurance year at least 8 
        counties in the State of California and at least 8 counties in 
        the State of Pennsylvania.
            ``(B) Selection criteria.--In carrying out subparagraph 
        (A), the Corporation shall work with the respective State 
        Departments of Agriculture to establish criteria to determine 
        which counties to include in the pilot program.''.

SEC. 10005. SENSE OF CONGRESS ON EXPANSION OF CROP INSURANCE COVERAGE.

    It is the sense of Congress that the Federal Crop Insurance 
Corporation should address needs of producers through the expansion of 
pilot programs and coverage under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.), including--
        (1) crop revenue insurance for the producers of pecans in the 
    State of Georgia; and
        (2) coverage for continuous crops of wheat produced in the 
    State of Kansas.

SEC. 10006. REPORT ON SPECIALTY CROP INSURANCE.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary 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 
describes--
        (1) the progress made by the Federal Crop Insurance Corporation 
    in research and development of innovative risk management products 
    to include cost of production insurance that provides coverage for 
    specialty crops, paying special attention to apples, asparagus, 
    blueberries (wild and domestic), cabbage, canola, carrots, 
    cherries, Christmas trees, citrus fruits, cucumbers, dry beans, 
    eggplants, floriculture, grapes, greenhouse and nursery 
    agricultural commodities, green peas, green peppers, hay, lettuce, 
    maple, mushrooms, pears, potatoes, pumpkins, snap beans, spinach, 
    squash, strawberries, sugar beets, and tomatoes; and
        (2) the progress made by the Corporation in increasing the use 
    of risk management products offered through the Corporation by 
    producers of specialty crops, by small- and moderate-sized farms, 
    and in areas that are underserved, as determined by the Secretary.

                    Subtitle B--Disaster Assistance

SEC. 10101. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS COVERED BY 
              NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    Section 196(a)(2)(B) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by inserting 
``sea grass and sea oats,'' after ``fish),''.

SEC. 10102. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
              FARMWORKERS.

    Section 2281(a) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (42 U.S.C. 5177a(a)) is amended by striking ``, not to 
exceed $20,000,000 annually,''.

SEC. 10103. EMERGENCY LOANS FOR SEED PRODUCERS.

    Section 253(b)(5)(B) of the Agricultural Risk Protection Act of 
2000 (Public Law 106-224; 114 Stat. 423) is amended by striking ``18 
months'' and inserting ``36 months''.

SEC. 10104. ASSISTANCE FOR LIVESTOCK PRODUCERS.

    (a) Availability of Assistance.--In such amounts as are provided in 
advance in appropriation Acts, the Secretary of Agriculture may provide 
assistance to dairy and other livestock producers to cover economic 
losses incurred by such producers in connection with the production of 
livestock.
    (b) Types of Assistance.--The assistance provided to livestock 
producers may be in the following forms:
        (1) Indemnity payments to livestock producers who incur 
    livestock mortality losses.
        (2) Livestock feed assistance to livestock producers affected 
    by shortages of feed.
        (3) Compensation for sudden increases in production costs.
        (4) Such other assistance, and for such other economic losses, 
    as the Secretary considers appropriate.
    (c) Limitations.--The Secretary may not use the funds of the 
Commodity Credit Corporation to provide assistance under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.

SEC. 10105. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.

    (a) In General.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall use $94,000,000 for fiscal year 2002 
to make payments, as soon as practicable after the date of enactment of 
this Act, to apple producers for the loss of markets during the 2000 
crop year.
    (b) Payment Quantity.--The payment quantity of apples for which the 
producers on a farm are eligible for payments under this section shall 
be equal to the lesser of--
        (1) the quantity of the 2000 crop of apples produced by the 
    producers on the farm; or
        (2) 5,000,000 pounds of apples produced on the farm.
    (c) Limitations.--Subject to subsection (b)(2), the Secretary shall 
not establish a payment limitation, or income eligibility limitation, 
with respect to payments made under this section.
    (d) Regulations.--
        (1) In general.--The Secretary shall promulgate such 
    regulations as are necessary to implement this section.
        (2) Procedure.--The promulgation of the regulations and 
    administration of this section shall be made without regard to--
            (A) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (B) 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
            (C) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
        (3) Congressional review of agency rulemaking.--In carrying out 
    this subsection, the Secretary shall use the authority provided 
    under section 808 of title 5, United States Code.

SEC. 10106. MARKET LOSS ASSISTANCE FOR ONION PRODUCERS.

    The Secretary of Agriculture shall use $10,000,000 of the funds of 
the Commodity Credit Corporation to make a grant to the State of New 
York to be used to support onion producers in Orange County, New York, 
that have suffered losses to onion crops during 1 or more of the 1996 
through 2000 crop years.

SEC. 10107. COMMERCIAL FISHERIES FAILURE.

    (a) In General.--The Secretary of Agriculture, in consultation with 
the Secretary of Commerce, shall provide emergency disaster assistance 
for the commercial fishery failure under section 308(b)(1) of the 
Interjurisdictional Fisheries Act of 1986 (16 U.S.C. 4107(b)(1)) with 
respect to Northeast multispecies fisheries.
    (b) Program Requirements.--Amounts made available to carry out this 
section shall be used to support a voluntary fishing capacity reduction 
program in the Northeast multispecies fishery that--
        (1) is certified by the Secretary of Commerce to be consistent 
    with section 312(b) of the Magnuson-Stevens Fishery Conservation 
    and Management Act (16 U.S.C. 1861a(b)); and
        (2) permanently revokes multispecies limited access fishing 
    permits so as to obtain the maximum sustained reduction in fishing 
    capacity at the least cost and in the minimum period of time and to 
    prevent the replacement of fishing capacity removed by the program.
    (c) Application of Regulations.--The program shall be carried out 
in accordance with the regulations codified at part 648 of title 50, 
Code of Federal Regulations, and any corresponding rule issued in 
accordance with the regulations.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (e) Termination of Authority.--The authority provided under this 
section terminates on the date that is 1 year after the date of 
enactment of this Act.

SEC. 10108. STUDY OF FEASIBILITY OF PRODUCER INDEMNIFICATION FROM 
              GOVERNMENT-CAUSED DISASTERS.

    (a) Findings.--Congress finds that the implementation of Federal 
disaster assistance programs fails to adequately address situations in 
which disaster conditions are caused primarily by Federal action.
    (b) Authority.--The Secretary of Agriculture shall conduct a study 
of the feasibility of expanding eligibility for crop insurance under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), and noninsured 
crop assistance under section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7333), to agricultural 
producers experiencing disaster conditions caused primarily by Federal 
agency action restricting access to irrigation water, including any 
lack of access to an adequate supply of water caused by failure by the 
Secretary of the Interior to fulfill a contract in accordance with the 
Central Valley Project Improvement Act (106 Stat. 4706).
    (c) Report.--Not later than 150 days after the date of enactment of 
this Act, 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 describes the 
results of the study, including any recommendations.

                  Subtitle C--Tree Assistance Program

SEC. 10201. DEFINITIONS.

    In this subtitle:
        (1) Eligible orchardist.--The term ``eligible orchardist'' 
    means a person that produces annual crops from trees for commercial 
    purposes.
        (2) Natural disaster.--The term ``natural disaster'' means 
    plant disease, insect infestation, drought, fire, freeze, flood, 
    earthquake, lightning, and other occurrence, as determined by the 
    Secretary.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (4) Tree.--The term ``tree'' includes a tree, bush, and vine.

SEC. 10202. ELIGIBILITY.

    (a) Loss.--Subject to subsection (b), the Secretary shall provide 
assistance under section 10203 to eligible orchardists that planted 
trees for commercial purposes but lost the trees as a result of a 
natural disaster, as determined by the Secretary.
    (b) Limitation.--An eligible orchardist shall qualify for 
assistance under subsection (a) only if the tree mortality of the 
eligible orchardist, as a result of damaging weather or related 
condition, exceeds 15 percent (adjusted for normal mortality).

SEC. 10203. ASSISTANCE.

    Subject to section 10204, the assistance provided by the Secretary 
to eligible orchardists for losses described in section 10202 shall 
consist of--
        (1) reimbursement of 75 percent of the cost of replanting trees 
    lost due to a natural disaster, as determined by the Secretary, in 
    excess of 15 percent mortality (adjusted for normal mortality); or
        (2) at the option of the Secretary, sufficient seedlings to 
    reestablish a stand.

SEC. 10204. LIMITATIONS ON ASSISTANCE.

    (a) Amount.--The total amount of payments that a person shall be 
entitled to receive under this subtitle may not exceed $75,000, or an 
equivalent value in tree seedlings.
    (b) Acres.--The total quantity of acres planted to trees or tree 
seedlings for which a person shall be entitled to receive payments 
under this subtitle may not exceed 500 acres.
    (c) Regulations.--The Secretary shall promulgate regulations--
        (1) defining the term ``person'' for the purposes of this 
    subtitle, which shall conform, to the maximum extent practicable, 
    to the regulations defining the term ``person'' promulgated under 
    section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308); and
        (2) promulgating such regulations as the Secretary determines 
    necessary to ensure a fair and reasonable application of the 
    limitation established under this section.

SEC. 10205. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this subtitle.

                       Subtitle D--Animal Welfare

SEC. 10301. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

    Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) is 
amended in the first sentence by striking ``excludes horses not used 
for research purposes and'' and inserting the following: ``excludes (1) 
birds, rats of the genus Rattus, and mice of the genus Mus, bred for 
use in research, (2) horses not used for research purposes, and (3)''.

SEC. 10302. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL 
              FIGHTING.

    (a) In General.--Section 26 of the Animal Welfare Act (7 U.S.C. 
2156) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) Sponsoring or Exhibiting an Animal in an Animal Fighting 
Venture.--
        ``(1) In general.--Except as provided in paragraph (2), it 
    shall be unlawful for any person to knowingly sponsor or exhibit an 
    animal in an animal fighting venture, if any animal in the venture 
    was moved in interstate or foreign commerce.
        ``(2) Special rule for certain states.--With respect to 
    fighting ventures involving live birds in a State where it would 
    not be in violation of the law, it shall be unlawful under this 
    subsection for a person to sponsor or exhibit a bird in the 
    fighting venture only if the person knew that any bird in the 
    fighting venture was knowingly bought, sold, delivered, 
    transported, or received in interstate or foreign commerce for the 
    purpose of participation in the fighting venture.'';
        (2) in subsection (b), by striking ``or deliver to another 
    person or receive from another person'' and inserting ``deliver, or 
    receive''; and
        (3) in subsection (d), by striking ``subsections (a), (b), or 
    (c) of this section'' and inserting ``subsection (c)''.
    (b) Effective Date.--The amendments made by this section take 
effect 1 year after the date of enactment of this Act.

SEC. 10303. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL 
              WELFARE ACT.

    (a) In General.--Section 26 of the Animal Welfare Act (7 U.S.C. 
2156) is amended--
        (1) in subsection (e)--
            (A) by inserting ``Penalties.--'' after ``(e)''; and
            (B) by striking ``$5,000'' and inserting ``$15,000''; and
        (2) in subsection (g)(2)(B), by inserting before the semicolon 
    at the end the following: ``or from any State into any foreign 
    country''.
    (b) Effective Date.--The amendment made by this section takes 
effect 1 year after the date of enactment of this Act.

SEC. 10304. REPORT ON RATS, MICE, AND BIRDS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the National Research Council 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 on the implications of including rats, mice, and birds within 
the definition of animal under the regulations promulgated under the 
Animal Welfare Act (7 U.S.C. 2131 et seq.).
    (b) Requirements.--The report under subsection (a) shall--
        (1) be completed with input, consultation, and recommendations 
    from--
            (A) the Secretary of Agriculture;
            (B) the Secretary of Health and Human Services; and
            (C) the Institute for Animal Laboratory Research within the 
        National Academy of Sciences;
        (2) contain an estimate of--
            (A) the number and types of entities that use rats, mice, 
        and birds for research purposes; and
            (B) which of the entities--
                (i) are subject to regulations of the Department of 
            Agriculture;
                (ii) are subject to regulations or guidelines of the 
            Department of Health and Human Services; or
                (iii) voluntarily comply with the accreditation 
            requirements of the Association for Assessment and 
            Accreditation of Laboratory Animal Care;
        (3) contain an estimate of the numbers of rats, mice, and birds 
    used in research facilities, with an indication of which of the 
    facilities--
            (A) are subject to regulations of the Department of 
        Agriculture;
            (B) are subject to regulations or guidelines of the 
        Department of Health and Human Services; or
            (C) voluntarily comply with the accreditation requirements 
        of the Association for Assessment and Accreditation of 
        Laboratory Animal Care;
        (4) contain an estimate of the additional costs likely to be 
    incurred by breeders and research facilities resulting from the 
    additional regulatory requirements needed in order to afford the 
    same level of protection to rats, mice, and birds as is provided 
    for species regulated by the Department of Agriculture, detailing 
    the costs associated with individual regulatory requirements;
        (5) contain recommendations for minimizing such costs, 
    including--
            (A) an estimate of the cost savings that would result from 
        providing a different level of protection to rats, mice, and 
        birds than is provided for species regulated by the Department 
        of Agriculture; and
            (B) an estimate of the cost savings that would result if 
        new regulatory requirements were substantially equivalent to, 
        and harmonized with, guidelines of the National Institutes of 
        Health;
        (6) contain an estimate of the additional funding that the 
    Animal and Plant Health Inspection Service would require to be able 
    to ensure that the level of compliance with respect to other 
    regulated animals is not diminished by the increase in the number 
    of facilities that would require inspections if a rule extending 
    the regulatory definition of animal to rats, mice, and birds were 
    to become effective; and
        (7) contain recommendations for--
            (A) minimizing the regulatory burden on facilities subject 
        to--
                (i) regulations of the Department of Agriculture;
                (ii) regulations or guidelines of the Department of 
            Health and Human Services; or
                (iii) accreditation requirements of the Association for 
            Assessment and Accreditation of Laboratory Animal Care; and
            (B) preventing any duplication of regulatory requirements.

SEC. 10305. ENFORCEMENT OF HUMANE METHODS OF SLAUGHTER ACT OF 1958.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of Agriculture should--
        (1) continue tracking the number of violations of Public Law 
    85-765 (7 U.S.C. 1901 et seq.; commonly known as the ``Humane 
    Methods of Slaughter Act of 1958'') and report the results and 
    relevant trends annually to Congress; and
        (2) fully enforce Public Law 85-765 by ensuring that humane 
    methods in the slaughter of livestock--
            (A) prevent needless suffering;
            (B) result in safer and better working conditions for 
        persons engaged in slaughtering operations;
            (C) bring about improvement of products and economies in 
        slaughtering operations; and
            (D) produce other benefits for producers, processors, and 
        consumers that tend to expedite an orderly flow of livestock 
        and livestock products in interstate and foreign commerce.
    (b) United States Policy.--It is the policy of the United States 
that the slaughtering of livestock and the handling of livestock in 
connection with slaughter shall be carried out only by humane methods, 
as provided by Public Law 85-765.

                  Subtitle E--Animal Health Protection

SEC. 10401. SHORT TITLE.

    This subtitle may be cited as the ``Animal Health Protection Act''.

SEC. 10402. FINDINGS.

    Congress finds that--
        (1) the prevention, detection, control, and eradication of 
    diseases and pests of animals are essential to protect--
            (A) animal health;
            (B) the health and welfare of the people of the United 
        States;
            (C) the economic interests of the livestock and related 
        industries of the United States;
            (D) the environment of the United States; and
            (E) interstate commerce and foreign commerce of the United 
        States in animals and other articles;
        (2) animal diseases and pests are primarily transmitted by 
    animals and articles regulated under this subtitle;
        (3) the health of animals is affected by the methods by which 
    animals and articles are transported in interstate commerce and 
    foreign commerce;
        (4) the Secretary must continue to conduct research on animal 
    diseases and pests that constitute a threat to the livestock of the 
    United States; and
        (5)(A) all animals and articles regulated under this subtitle 
    are in or affect interstate commerce or foreign commerce; and
        (B) regulation by the Secretary and cooperation by the 
    Secretary with foreign countries, States or other jurisdictions, or 
    persons are necessary--
            (i) to prevent and eliminate burdens on interstate commerce 
        and foreign commerce;
            (ii) to regulate effectively interstate commerce and 
        foreign commerce; and
            (iii) to protect the agriculture, environment, economy, and 
        health and welfare of the people of the United States.

SEC. 10403. DEFINITIONS.

    In this subtitle:
        (1) Animal.--The term ``animal'' means any member of the animal 
    kingdom (except a human).
        (2) Article.--The term ``article'' means any pest or disease or 
    any material or tangible object that could harbor a pest or 
    disease.
        (3) Disease.--The term ``disease'' has the meaning given the 
    term by the Secretary.
        (4) Enter.--The term ``enter'' means to move into the commerce 
    of the United States.
        (5) Export.--The term ``export'' means to move from a place 
    within the territorial limits of the United States to a place 
    outside the territorial limits of the United States.
        (6) Facility.--The term ``facility'' means any structure.
        (7) Import.--The term ``import'' means to move from a place 
    outside the territorial limits of the United States to a place 
    within the territorial limits of the United States.
        (8) Indian tribe.--The term ``Indian tribe'' has the meaning 
    given the term in section 4 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b).
        (9) Interstate commerce.--The term ``interstate commerce'' 
    means trade, traffic, or other commerce--
            (A) between a place in a State and a place in another 
        State, or between places within the same State but through any 
        place outside that State; or
            (B) within the District of Columbia or any territory or 
        possession of the United States.
        (10) Livestock.--The term ``livestock'' means all farm-raised 
    animals.
        (11) 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.
        (12) Move.--The term ``move'' means--
            (A) to carry, enter, import, mail, ship, or transport;
            (B) to aid, abet, cause, or induce carrying, entering, 
        importing, mailing, shipping, or transporting;
            (C) to offer to carry, enter, import, mail, ship, or 
        transport;
            (D) to receive in order to carry, enter, import, mail, 
        ship, or transport;
            (E) to release into the environment; or
            (F) to allow any of the activities described in this 
        paragraph.
        (13) Pest.--The term ``pest'' means any of the following that 
    can directly or indirectly injure, cause damage to, or cause 
    disease in livestock:
            (A) A protozoan.
            (B) A plant.
            (C) A bacteria.
            (D) A fungus.
            (E) A virus or viroid.
            (F) An infectious agent or other pathogen.
            (G) An arthropod.
            (H) A parasite.
            (I) A prion.
            (J) A vector.
            (K) Any organism similar to or allied with any of the 
        organisms described in this paragraph.
        (14) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
        (15) State.--The term ``State'' means any of the States, the 
    District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
    Commonwealth of the Northern Mariana Islands, the Virgin Islands of 
    the United States, or any territory or possession of the United 
    States.
        (16) This subtitle.--Except when used in this section, the term 
    ``this subtitle'' includes any regulation or order issued by the 
    Secretary under the authority of this subtitle.
        (17) United states.--The term ``United States'' means all of 
    the States.

SEC. 10404. RESTRICTION ON IMPORTATION OR ENTRY.

    (a) In General.--With notice to the Secretary of the Treasury and 
public notice as soon as practicable, the Secretary may prohibit or 
restrict--
        (1) the importation or entry of any animal, article, or means 
    of conveyance, or use of any means of conveyance or facility, if 
    the Secretary determines that the prohibition or restriction is 
    necessary to prevent the introduction into or dissemination within 
    the United States of any pest or disease of livestock;
        (2) the further movement of any animal that has strayed into 
    the United States if the Secretary determines that the prohibition 
    or restriction is necessary to prevent the introduction into or 
    dissemination within the United States of any pest or disease of 
    livestock; and
        (3) the use of any means of conveyance in connection with the 
    importation or entry of livestock if the Secretary determines that 
    the prohibition or restriction is necessary because the means of 
    conveyance has not been maintained in a clean and sanitary 
    condition or does not have accommodations for the safe and proper 
    movement of livestock.
    (b) Regulations.--
        (1) Restrictions on import and entry.--The Secretary may issue 
    such orders and promulgate such regulations as are necessary to 
    carry out subsection (a).
        (2) Post importation quarantine.--The Secretary may promulgate 
    regulations requiring that any animal imported or entered be raised 
    or handled under post-importation quarantine conditions by or under 
    the supervision of the Secretary for the purpose of determining 
    whether the animal is or may be affected by any pest or disease of 
    livestock.
    (c) Destruction or Removal.--
        (1) In general.--The Secretary may order the destruction or 
    removal from the United States of--
            (A) any animal, article, or means of conveyance that has 
        been imported but has not entered the United States if the 
        Secretary determines that destruction or removal from the 
        United States is necessary to prevent the introduction into or 
        dissemination within the United States of any pest or disease 
        of livestock;
            (B) any animal or progeny of any animal, article, or means 
        of conveyance that has been imported or entered in violation of 
        this subtitle; or
            (C) any animal that has strayed into the United States if 
        the Secretary determines that destruction or removal from the 
        United States is necessary to prevent the introduction into or 
        dissemination within the United States of any pest or disease 
        of livestock.
        (2) Requirements of owners.--
            (A) Orders to disinfect.--The Secretary may require the 
        disinfection of--
                (i) a means of conveyance used in connection with the 
            importation of an animal;
                (ii) an individual involved in the importation of an 
            animal and personal articles of the individual; and
                (iii) any article used in the importation of an animal.
            (B) Failure to comply with orders.--If an owner fails to 
        comply with an order of the Secretary under this section, the 
        Secretary may--
                (i) take remedial action, destroy, or remove from the 
            United States the animal or progeny of any animal, article, 
            or means of conveyance as authorized under paragraph (1); 
            and
                (ii) recover from the owner the costs of any care, 
            handling, disposal, or other action incurred by the 
            Secretary in connection with the remedial action, 
            destruction, or removal.

SEC. 10405. EXPORTATION.

    (a) In General.--The Secretary may prohibit or restrict--
        (1) the exportation of any animal, article, or means of 
    conveyance if the Secretary determines that the prohibition or 
    restriction is necessary to prevent the dissemination from or 
    within the United States of any pest or disease of livestock;
        (2) the exportation of any livestock if the Secretary 
    determines that the livestock is unfit to be moved;
        (3) the use of any means of conveyance or facility in 
    connection with the exportation of any animal or article if the 
    Secretary determines that the prohibition or restriction is 
    necessary to prevent the dissemination from or within the United 
    States of any pest or disease of livestock; or
        (4) the use of any means of conveyance in connection with the 
    exportation of livestock if the Secretary determines that the 
    prohibition or restriction is necessary because the means of 
    conveyance has not been maintained in a clean and sanitary 
    condition or does not have accommodations for the safe and proper 
    movement and humane treatment of livestock.
    (b) Requirements of Owners.--
        (1) Orders to disinfect.--The Secretary may require the 
    disinfection of--
            (A) a means of conveyance used in connection with the 
        exportation of an animal;
            (B) an individual involved in the exportation of an animal 
        and personal articles of the individual; and
            (C) any article used in the exportation of an animal.
        (2) Failure to comply with orders.--If an owner fails to comply 
    with an order of the Secretary under this section, the Secretary 
    may--
            (A) take remedial action with respect to the animal, 
        article, or means of conveyance referred to in paragraph (1); 
        and
            (B) recover from the owner the costs of any care, handling, 
        disposal, or other action incurred by the Secretary in 
        connection with the remedial action.
    (c) Certification.--The Secretary may certify the classification, 
quality, quantity, condition, processing, handling, or storage of any 
animal or article intended for export.

SEC. 10406. INTERSTATE MOVEMENT.

    The Secretary may prohibit or restrict--
        (1) the movement in interstate commerce of any animal, article, 
    or means of conveyance if the Secretary determines that the 
    prohibition or restriction is necessary to prevent the introduction 
    or dissemination of any pest or disease of livestock; and
        (2) the use of any means of conveyance or facility in 
    connection with the movement in interstate commerce of any animal 
    or article if the Secretary determines that the prohibition or 
    restriction is necessary to prevent the introduction or 
    dissemination of any pest or disease of livestock.

SEC. 10407. SEIZURE, QUARANTINE, AND DISPOSAL.

    (a) In General.--The Secretary may hold, seize, quarantine, treat, 
destroy, dispose of, or take other remedial action with respect to--
        (1) any animal or progeny of any animal, article, or means of 
    conveyance that--
            (A) is moving or has been moved in interstate commerce or 
        has been imported and entered; and
            (B) the Secretary has reason to believe may carry, may have 
        carried, or may have been affected with or exposed to any pest 
        or disease of livestock at the time of movement or that is 
        otherwise in violation of this subtitle;
        (2) any animal or progeny of any animal, article, or means of 
    conveyance that is moving or is being handled, or has moved or has 
    been handled, in interstate commerce in violation of this subtitle;
        (3) any animal or progeny of any animal, article, or means of 
    conveyance that has been imported, and is moving or is being 
    handled or has moved or has been handled, in violation of this 
    subtitle; or
        (4) any animal or progeny of any animal, article, or means of 
    conveyance that the Secretary finds is not being maintained, or has 
    not been maintained, in accordance with any post-importation 
    quarantine, post-importation condition, post-movement quarantine, 
    or post-movement condition in accordance with this subtitle.
    (b) Extraordinary Emergencies.--
        (1) In general.--Subject to paragraph (2), if the Secretary 
    determines that an extraordinary emergency exists because of the 
    presence in the United States of a pest or disease of livestock and 
    that the presence of the pest or disease threatens the livestock of 
    the United States, the Secretary may--
            (A) hold, seize, treat, apply other remedial actions to, 
        destroy (including preventative slaughter), or otherwise 
        dispose of, any animal, article, facility, or means of 
        conveyance if the Secretary determines the action is necessary 
        to prevent the dissemination of the pest or disease; and
            (B) prohibit or restrict the movement or use within a 
        State, or any portion of a State of any animal or article, 
        means of conveyance, or facility if the Secretary determines 
        that the prohibition or restriction is necessary to prevent the 
        dissemination of the pest or disease.
        (2) State action.--
            (A) In general.--The Secretary may take action in a State 
        under this subsection only on finding that measures being taken 
        by the State are inadequate to control or eradicate the pest or 
        disease, after review and consultation with--
                ``(i) the Governor or an appropriate animal health 
            official of the State; or
                ``(ii) in the case of any animal, article, facility, or 
            means of conveyance under the jurisdiction of an Indian 
            tribe, the head of the Indian tribe.
            (B) Notice.--Subject to subparagraph (C), before any action 
        is taken in a State under subparagraph (A), the Secretary 
        shall--
                (i) notify the Governor, an appropriate animal health 
            official of the State, or head of the Indian tribe of the 
            proposed action;
                (ii) issue a public announcement of the proposed 
            action; and
                (iii) publish in the Federal Register--

                    (I) the findings of the Secretary;
                    (II) a description of the proposed action; and
                    (III) a statement of the reasons for the proposed 
                action.

            (C) Notice after action.--If it is not practicable to 
        publish in the Federal Register the information required under 
        subparagraph (B)(iii) before taking action under subparagraph 
        (A), the Secretary shall publish the information as soon as 
        practicable, but not later than 10 business days, after 
        commencement of the action.
    (c) Quarantine, Disposal, or Other Remedial Action.--
        (1) In general.--The Secretary, in writing, may order the owner 
    of any animal, article, facility, or means of conveyance referred 
    to in subsection (a) or (b) to maintain in quarantine, dispose of, 
    or take other remedial action with respect to the animal, article, 
    facility, or means of conveyance, in a manner determined by the 
    Secretary.
        (2) Failure to comply with orders.--If the owner fails to 
    comply with the order of the Secretary, the Secretary may--
            (A) seize, quarantine, dispose of, or take other remedial 
        action with respect to the animal, article, facility, or means 
        of conveyance under subsection (a) or (b); and
            (B) recover from the owner the costs of any care, handling, 
        disposal, or other remedial action incurred by the Secretary in 
        connection with the seizure, quarantine, disposal, or other 
        remedial action.
    (d) Compensation.--
        (1) In general.--Except as provided in paragraph (3), the 
    Secretary shall compensate the owner of any animal, article, 
    facility, or means of conveyance that the Secretary requires to be 
    destroyed under this section.
        (2) Amount.--
            (A) In general.--Subject to subparagraphs (B) and (C), the 
        compensation shall be based on the fair market value, as 
        determined by the Secretary, of the destroyed animal, article, 
        facility, or means of conveyance.
            (B) Limitation.--Compensation paid any owner under this 
        subsection shall not exceed the difference between--
                (i) the fair market value of the destroyed animal, 
            article, facility, or means of conveyance; and
                (ii) any compensation received by the owner from a 
            State or other source for the destroyed animal, article, 
            facility, or means of conveyance.
            (C) Reviewability.--The determination by the Secretary of 
        the amount to be paid under this subsection shall be final and 
        not subject to judicial review or review of longer than 60 days 
        by any officer or employee of the Federal Government other than 
        the Secretary or the designee of the Secretary.
        (3) Exceptions.--No payment shall be made by the Secretary 
    under this subsection for--
            (A) any animal, article, facility, or means of conveyance 
        that has been moved or handled by the owner in violation of an 
        agreement for the control and eradication of diseases or pests 
        or in violation of this subtitle;
            (B) any progeny of any animal or article, which animal or 
        article has been moved or handled by the owner of the animal or 
        article in violation of this subtitle;
            (C) any animal, article, or means of conveyance that is 
        refused entry under this subtitle; or
            (D) any animal, article, facility, or means of conveyance 
        that becomes or has become affected with or exposed to any pest 
        or disease of livestock because of a violation of an agreement 
        for the control and eradication of diseases or pests or a 
        violation of this subtitle by the owner.

SEC. 10408. INSPECTIONS, SEIZURES, AND WARRANTS.

    (a) Guidelines.--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 animal or article regulated 
    under this subtitle;
        (2) in interstate commerce, on probable cause to believe that 
    the person or means of conveyance is carrying any animal or article 
    regulated under this subtitle; or
        (3) in intrastate commerce from any State, or any portion of a 
    State, quarantined under section 10407(b), on probable cause to 
    believe that the person or means of conveyance is carrying any 
    animal or article quarantined under section 10407(b).
    (c) Inspections With Warrants.--
        (1) In general.--The Secretary may enter, with a warrant, any 
    premises in the United States for the purpose of making inspections 
    and seizures under this subtitle.
        (2) Application and issuance of warrants.--
            (A) In general.--On proper oath or affirmation showing 
        probable cause to believe that there is on certain premises any 
        animal, article, facility, or means of conveyance regulated 
        under this subtitle, a United States judge, a judge of a court 
        of record in the United States, or a United States magistrate 
        judge may issue a warrant for the entry on premises within the 
        jurisdiction of the judge or magistrate to make any inspection 
        or seizure under this subtitle.
            (B) Execution.--The warrant may be applied for and executed 
        by the Secretary or any United States marshal.

SEC. 10409. DETECTION, CONTROL, AND ERADICATION OF DISEASES AND PESTS.

    (a) In General.--The Secretary may carry out operations and 
measures to detect, control, or eradicate any pest or disease of 
livestock (including the drawing of blood and diagnostic testing of 
animals), including animals at a slaughterhouse, stockyard, or other 
point of concentration.
    (b) Compensation.--
        (1) In general.--The Secretary may pay a claim arising out of 
    the destruction of any animal, article, or means of conveyance 
    consistent with the purposes of this subtitle.
        (2) Reviewability.--The action of the Secretary in carrying out 
    paragraph (1) shall not be subject to review of longer than 60 days 
    by any officer or employee of the Federal Government other than the 
    Secretary or the designee of the Secretary.

SEC. 10410. VETERINARY ACCREDITATION PROGRAM.

    (a) In General.--The Secretary may establish a veterinary 
accreditation program that is consistent with this subtitle, including 
the establishment of standards of conduct for accredited veterinarians.
    (b) Consultation.--The Secretary shall consult with State animal 
health officials and veterinary professionals regarding the 
establishment of the veterinary accreditation program.
    (c) Suspension or Revocation of Accreditation.--
        (1) In general.--The Secretary may, after notice and 
    opportunity for a hearing on the record, suspend or revoke the 
    accreditation of any veterinarian accredited under this title who 
    violates this subtitle.
        (2) Final order.--The order of the Secretary suspending or 
    revoking accreditation shall be treated as a final order reviewable 
    under chapter 158 of title 28, United States Code.
        (3) Summary suspension.--
            (A) In general.--The Secretary may summarily suspend the 
        accreditation of a veterinarian whom the Secretary has reason 
        to believe knowingly violated this subtitle.
            (B) Hearings.--The Secretary shall provide the veterinarian 
        with a subsequent notice and an opportunity for a prompt post-
        suspension hearing on the record.
    (d) Application of Penalty Provisions.--The criminal and civil 
penalties described in section 10414 shall not apply to a violation of 
this section that is not a violation of any other provision of this 
subtitle.

SEC. 10411. COOPERATION.

    (a) In General.--To carry out this subtitle, the Secretary may 
cooperate with other Federal agencies, States or political subdivisions 
of States, national governments of foreign countries, local governments 
of foreign countries, domestic or international organizations, domestic 
or international associations, Indian tribes, and other persons.
    (b) Responsibility.--The person or other entity cooperating with 
the Secretary shall be responsible for the authority necessary to carry 
out operations or measures--
        (1) on all land and property within a foreign country or State, 
    or under the jurisdiction of an Indian tribe, other than on land 
    and property owned or controlled by the United States; and
        (2) using other facilities and means, as determined by the 
    Secretary.
    (c) Screwworms.--
        (1) In general.--The Secretary may, independently or in 
    cooperation with national governments of foreign countries or 
    international organizations or associations, produce and sell 
    sterile screwworms to any national government of a foreign country 
    or international organization or association, if the Secretary 
    determines that the livestock industry and related industries of 
    the United States will not be adversely affected by the production 
    and sale.
        (2) Proceeds.--
            (A) Independent production and sale.--If the Secretary 
        independently produces and sells sterile screwworms under 
        paragraph (1), the proceeds of the sale shall be--
                (i) deposited into the Treasury of the United States; 
            and
                (ii) credited to the account from which the operating 
            expenses of the facility producing the sterile screwworms 
            have been paid.
            (B) Cooperative production and sale.--
                (i) In general.--If the Secretary cooperates to produce 
            and sell sterile screwworms under paragraph (1), the 
            proceeds of the sale shall be divided between the United 
            States and the cooperating national government or 
            international organization or association in a manner 
            determined by the Secretary.
                (ii) Account.--The United States portion of the 
            proceeds shall be--

                    (I) deposited into the Treasury of the United 
                States; and
                    (II) credited to the account from which the 
                operating expenses of the facility producing the 
                sterile screwworms have been paid.

    (d) Cooperation in Program Administration.--The Secretary may 
cooperate with State authorities, Indian tribe authorities, or other 
persons in the administration of regulations for the improvement of 
livestock and livestock products.
    (e) Consultation and Coordination With Other Federal Agencies.--
        (1) In general.--The Secretary shall consult and coordinate 
    with the head of a Federal agency with respect to any activity that 
    is under the jurisdiction of the Federal agency.
        (2) Lead agency.--Subject to the consultation and coordination 
    requirement in paragraph (1), the Department of Agriculture shall 
    be the lead agency with respect to issues related to pests and 
    diseases of livestock.

SEC. 10412. REIMBURSABLE AGREEMENTS.

    (a) Authority To Enter Into Agreements.--The Secretary may enter 
into reimbursable fee agreements with persons for preclearance of 
animals or articles at locations outside the United States for movement 
into the United States.
    (b) Funds Collected for Preclearance.--Funds collected for 
preclearance activities shall--
        (1) be credited to accounts that may be established by the 
    Secretary for carrying out this section; and
        (2) 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 an officer or employee of the Department of Agriculture 
    performing services under this subtitle relating to imports into 
    and exports from the United States for all overtime, night, or 
    holiday work performed by the officer or employee at a rate of pay 
    determined by the Secretary.
        (2) Reimbursement.--
            (A) In general.--The Secretary may require a person for 
        whom the services are performed to reimburse the Secretary for 
        any expenses paid by the Secretary for the services under this 
        subsection.
            (B) Use of funds.--All funds collected under this 
        subsection shall--
                (i) be credited to the account that incurs the costs; 
            and
                (ii) remain available until expended, without fiscal 
            year limitation.
    (d) Late Payment Penalties.--
        (1) Collection.--On failure by a person to reimburse the 
    Secretary in accordance with this section, the Secretary may assess 
    a late payment penalty against the person, including interest on 
    overdue funds, as required by section 3717 of title 31, United 
    States Code.
        (2) Use of funds.--Any late payment penalty and any accrued 
    interest shall--
            (A) be credited to the account that incurs the costs; and
            (B) remain available until expended, without fiscal year 
        limitation.

SEC. 10413. ADMINISTRATION AND CLAIMS.

    (a) Administration.--To carry out this subtitle, the Secretary 
may--
        (1) acquire and maintain real or personal property;
        (2) employ a person;
        (3) make a grant; and
        (4) notwithstanding chapter 63 of title 31, United States Code, 
    enter into a contract, cooperative agreement, memorandum of 
    understanding, or other agreement.
    (b) Tort Claims.--
        (1) In general.--Except as provided in paragraph (2), the 
    Secretary may pay a tort claim, in the manner authorized by the 
    first paragraph of section 2672 of title 28, United States Code, if 
    the claim arises outside the United States in connection with an 
    activity authorized under this subtitle.
        (2) Requirements.--A claim may not be allowed under this 
    subsection unless the claim is presented in writing to the 
    Secretary not later than 2 years after the date on which the claim 
    arises.

SEC. 10414. PENALTIES.

    (a) Criminal Penalties.--
        (1) Offenses.--
            (A) In general.--A person that knowingly violates this 
        subtitle, or knowingly forges, counterfeits, or, without 
        authority from the Secretary, uses, alters, defaces, or 
        destroys any certificate, permit, or other document provided 
        for in this subtitle shall be fined under title 18, United 
        States Code, imprisoned not more than 1 year, or both.
            (B) Distribution or sale.--A person that knowingly imports, 
        enters, exports, or moves any animal or article, for 
        distribution or sale, in violation of this subtitle, shall be 
        fined under title 18, United States Code, imprisoned not more 
        than 5 years, or both.
        (2) Multiple violations.--On the second and any subsequent 
    conviction of a person of a violation of this subtitle under 
    paragraph (1), the person shall be fined under title 18, United 
    States Code, imprisoned not more than 10 years, or both.
    (b) Civil Penalties.--
        (1) In general.--Except as provided in section 10410(d), any 
    person that violates this subtitle, or that forges, counterfeits, 
    or, without authority from the Secretary, uses, alters, defaces, or 
    destroys any certificate, permit, or other document provided under 
    this subtitle 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)(i) $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 subtitle by an individual moving 
        regulated articles not for monetary gain;
            (ii) $250,000 in the case of any other person for each 
        violation; and
            (iii) $500,000 for all violations adjudicated in a single 
        proceeding; or
            (B) twice the gross gain or gross loss for any violation or 
        forgery, counterfeiting, or unauthorized use, alteration, 
        defacing or destruction of a certificate, permit, or other 
        document provided under this subtitle that results in the 
        person's deriving pecuniary gain or causing pecuniary loss to 
        another person.
        (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) the ability to pay;
            (B) the effect on ability to continue to do business;
            (C) any history of prior violations;
            (D) the degree of culpability; and
            (E) such other factors as the Secretary considers to be 
        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.--
            (A) Final order.--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.
            (B) Review.--The validity of the order of the Secretary may 
        not be reviewed in an action to collect the civil penalty.
            (C) 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.
    (c) Liability for Acts of Agents.--In the construction and 
enforcement of this subtitle, the act, omission, or failure of any 
officer, agent, or person acting for or employed by any other person 
within the scope of the employment or office of the officer, agent, or 
person, shall be deemed also to be the act, omission, or failure of the 
other person.
    (d) Guidelines for Civil Penalties.--Subject to the approval of the 
Attorney General, the Secretary shall 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 subtitle.

SEC. 10415. ENFORCEMENT.

    (a) Collection of Information.--
        (1) In general.--The Secretary may gather and compile 
    information and conduct any inspection or investigation that the 
    Secretary considers to be necessary for the administration or 
    enforcement of this subtitle.
        (2) Subpoenas.--
            (A) In general.--The Secretary shall have power to issue a 
        subpoena to compel the attendance and testimony of any witness 
        and the production of any documentary evidence relating to the 
        administration or enforcement of this subtitle or any matter 
        under investigation in connection with this subtitle.
            (B) Location of production.--The attendance of any witness 
        and production of documentary evidence relevant to the inquiry 
        may be required from any place in the United States.
            (C) Enforcement.--
                (i) In general.--In 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, 
            to require the attendance and testimony of any witness and 
            the production of documentary evidence.
                (ii) Noncompliance.--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.
                (iii) Contempt.--Any failure to obey the order of the 
            court may be punished by the court as contempt of the 
            court.
            (D) Compensation.--
                (i) Witnesses.--A witness summoned by the Secretary 
            under this subtitle shall be paid the same fees and mileage 
            that are paid to a witness in a court of the United States.
                (ii) Depositions.--A witness whose deposition is taken, 
            and the person taking the deposition, shall be entitled to 
            the same fees that are paid for similar services in a court 
            of the United States.
            (E) Procedures.--
                (i) Publication.--The Secretary shall publish 
            procedures for the issuance of subpoenas under this 
            section.
                (ii) Review.--The procedures shall include a 
            requirement that subpoenas be reviewed for legal 
            sufficiency and, to be effective, be signed by the 
            Secretary.
                (iii) Delegation.--If the authority to sign a subpoena 
            is delegated to an agency other than the Office of 
            Administrative Law Judges, the agency receiving the 
            delegation shall seek review of the subpoena for legal 
            sufficiency outside that agency.
    (b) Authority of Attorney General.--The Attorney General may--
        (1) prosecute, in the name of the United States, all criminal 
    violations of this subtitle 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 subtitle, or to enjoin any interference by any 
    person with the Secretary in carrying out this subtitle, in any 
    case in which the Secretary has reason to believe that the person 
    has violated, or is about to violate this subtitle or has 
    interfered, or is about to interfere, with the actions of the 
    Secretary; or
        (3) bring an action for the recovery of any unpaid civil 
    penalty, funds under a reimbursable agreement, late payment 
    penalty, or interest assessed under this subtitle.
    (c) Court Jurisdiction.--
        (1) In general.--The United States district courts, the 
    District Court of Guam, the District Court of the Northern Mariana 
    Islands, the District Court of the Virgin Islands, the highest 
    court of American Samoa, and the United States courts of the other 
    territories and possessions are vested with jurisdiction in all 
    cases arising under this subtitle.
        (2) Venue.--Any action arising under this subtitle 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.
        (3) Exception.--Paragraphs (1) and (2) do not apply to sections 
    10410(c) and 10414(b).

SEC. 10416. REGULATIONS AND ORDERS.

    The Secretary may promulgate such regulations, and issue such 
orders, as the Secretary determines necessary to carry out this 
subtitle.

SEC. 10417. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary to carry out this subtitle.
    (b) Transfer of Funds.--
        (1) In general.--In connection with an emergency under which a 
    pest or disease of livestock threatens any segment of agricultural 
    production in the United States, the Secretary may transfer from 
    other appropriations or funds available to the agencies or 
    corporations of the Department of Agriculture such funds as the 
    Secretary determines are necessary for the arrest, control, 
    eradication, or prevention of the spread of the pest or disease of 
    livestock and for related expenses.
        (2) Availability.--Any funds transferred under this subsection 
    shall remain available until expended, without fiscal year 
    limitation.
        (3) Reviewability.--The action of any officer, employee, or 
    agent of the Secretary in carrying out this section (including 
    determining the amount of and making any payment authorized to be 
    made under this subtitle) shall not be subject to review of longer 
    than 60 days by any officer or employee of the Federal Government 
    other than the Secretary or the designee of the Secretary.
    (c) Use of Funds.--In carrying out this subtitle, the Secretary may 
use funds made available to carry out this subtitle for--
        (1) the employment of civilian nationals in foreign countries; 
    and
        (2) the construction and operation of research laboratories, 
    quarantine stations, and other buildings and facilities for special 
    purposes.

SEC. 10418. REPEALS AND CONFORMING AMENDMENTS.

    (a) Repeals.--The following provisions of law are repealed:
        (1) Public Law 97-46 (7 U.S.C. 147b).
        (2) Section 101(b) of the Act of September 21, 1944 (7 U.S.C. 
    429).
        (3) The Act of August 28, 1950 (7 U.S.C. 2260).
        (4) Section 919 of the Federal Agriculture Improvement and 
    Reform Act of 1996 (7 U.S.C. 2260a).
        (5) Section 306 of the Tariff Act of 1930 (19 U.S.C. 1306).
        (6) Sections 6 through 8 and 10 of the Act of August 30, 1890 
    (21 U.S.C. 102 through 105).
        (7) The Act of February 2, 1903 (21 U.S.C. 111, 120 through 
    122).
        (8) Sections 2 through 9, 11, and 13 of the Act of May 29, 1884 
    (21 U.S.C. 112, 113, 114, 114a, 114a-1, 115 through 120, 130).
        (9) The first section and sections 2, 3, and 5 of the Act of 
    February 28, 1947 (21 U.S.C. 114b, 114c, 114d, 114d-1).
        (10) The Act of June 16, 1948 (21 U.S.C. 114e, 114f).
        (11) Public Law 87-209 (21 U.S.C. 114g, 114h).
        (12) The third and fourth provisos of the fourth paragraph 
    under the heading ``bureau of animal industry'' of the Act of May 
    31, 1920 (21 U.S.C. 116).
        (13) The first section and sections 2, 3, 4, and 6 of the Act 
    of March 3, 1905 (21 U.S.C. 123 through 127).
        (14) The first proviso under the heading ``General expenses, 
    Bureau of Animal Industry'' under the heading ``BUREAU OF ANIMAL 
    INDUSTRY'' of the Act of June 30, 1914 (21 U.S.C. 128).
        (15) The fourth proviso under the heading ``salaries and 
    expenses'' under the heading ``Animal and Plant Health Inspection 
    Service'' of title I of the Agriculture, Rural Development, Food 
    and Drug Administration, and Related Agencies Appropriations Act, 
    2001 (21 U.S.C. 129).
        (16) The third paragraph under the heading ``MISCELLANEOUS'' of 
    the Act of May 26, 1910 (21 U.S.C. 131).
        (17) The first section and sections 2 through 6 and 11 through 
    13 of Public Law 87-518 (21 U.S.C. 134 through 134h).
        (18) Public Law 91-239 (21 U.S.C. 135 through 135b).
        (19) Sections 12 through 14 of the Federal Meat Inspection Act 
    (21 U.S.C. 612 through 614).
        (20) Chapter 39 of title 46, United States Code.
    (b) Conforming Amendments.--
        (1) Section 414(b) of the Plant Protection Act (7 U.S.C. 
    7714(b)) is amended--
            (A) in paragraph (1), by striking ``, or the owner's 
        agent,''; and
            (B) in paragraph (2), by striking ``or agent of the owner'' 
        each place it appears.
        (2) Section 423 of the Plant Protection Act (7 U.S.C. 7733) is 
    amended--
            (A) by striking subsection (b) and inserting the following:
    ``(b) Location of Production.--The attendance of any witness and 
production of documentary evidence relevant to the inquiry may be 
required from any place in the United States.'';
            (B) in the third sentence of subsection (e), by inserting 
        ``to an agency other than the Office of Administrative Law 
        Judges'' after ``is delegated''; and
            (C) by striking subsection (f).
        (3) Section 11(h) of the Endangered Species Act of 1973 (16 
    U.S.C. 1540(h)) is amended in the first sentence by striking 
    ``animal quarantine laws (21 U.S.C. 101-105, 111-135b, and 612-
    614)'' and inserting ``animal quarantine laws (as defined in 
    section 2509(f) of the Food, Agriculture, Conservation, and Trade 
    Act of 1990 (21 U.S.C. 136a(f))''.
        (4) Section 18 of the Federal Meat Inspection Act (21 U.S.C. 
    618) is amended by striking ``of the cattle'' and all that follows 
    through ``as herein described'' and inserting ``of the carcasses 
    and products of cattle, sheep, swine, goats, horses, mules, and 
    other equines''.
        (5) Section 2509 of the Food, Agriculture, Conservation, and 
    Trade Act of 1990 (21 U.S.C. 136a) is amended--
            (A) in subsection (c), by inserting after paragraph (1) the 
        following:
        ``(2) Veterinary diagnostics.--The Secretary may prescribe and 
    collect fees to recover the costs of carrying out the provisions of 
    the Animal Health Protection Act that relate to veterinary 
    diagnostics.''; and
            (B) in subsection (f)(1), by striking subparagraphs (B) 
        through (O) and inserting the following:
            ``(B) section 9 of the Act of August 30, 1890 (21 U.S.C. 
        101);
            ``(C) the Animal Health Protection Act; or
            ``(D) any other Act administered by the Secretary relating 
        to plant or animal diseases or pests.''.
    (c) Effect on Regulations.--A regulation issued under a provision 
of law repealed by subsection (a) shall remain in effect until the 
Secretary issues a regulation under section 10404(b) or 10416 that 
supersedes the earlier regulation.

                         Subtitle F--Livestock

SEC. 10501. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.

    Section 5402(d)(2) of title 39, United States Code, is amended--
        (1) in subparagraph (A), by inserting ``, honeybees,'' after 
    ``poultry''; and
        (2) by striking subparagraph (C).

SEC. 10502. SWINE CONTRACTORS.

    (a) Definitions.--Section 2(a) of the Packers and Stockyards Act, 
1921 (7 U.S.C. 182(a)), is amended by adding at the end the following:
        ``(12) Swine contractor.--The term `swine contractor' means any 
    person engaged in the business of obtaining swine under a swine 
    production contract for the purpose of slaughtering the swine or 
    selling the swine for slaughter, if--
            ``(A) the swine is obtained by the person in commerce; or
            ``(B) the swine (including products from the swine) 
        obtained by the person is sold or shipped in commerce.
        ``(13) Swine production contract.--The term `swine production 
    contract' means any growout contract or other arrangement under 
    which a swine production contract grower raises and cares for the 
    swine in accordance with the instructions of another person.
        ``(14) Swine production contract grower.--The term `swine 
    production contract grower' means any person engaged in the 
    business of raising and caring for swine in accordance with the 
    instructions of another person.''.
    (b) Swine Contractors.--
        (1) In general.--The Packers and Stockyards Act, 1921, is 
    amended by striking ``packer'' each place it appears in sections 
    202, 203, 204, and 205 (7 U.S.C. 192, 193, 194, 195) (other than 
    section 202(c)) and inserting ``packer or swine contractor''.
        (2) Conforming amendments.--
            (A) Section 202(c) of the Packers and Stockyards Act, 1921 
        (7 U.S.C. 192(c)), is amended by inserting ``, swine 
        contractor,'' after ``other packer'' each place it appears.
            (B) Section 308(a) of the Packers and Stockyards Act, 1921 
        (7 U.S.C. 209(a)), is amended by inserting ``or swine 
        production contract'' after ``poultry growing arrangement''.
            (C) Sections 401 and 403 of the Packers and Stockyards Act, 
        1921 (7 U.S.C. 221, 223), are amended by inserting ``any swine 
        contractor, and'' after ``packer,'' each place it appears.

SEC. 10503. RIGHT TO DISCUSS TERMS OF CONTRACT.

    (a) Definitions.--In this section:
        (1) Producer.--The term ``producer'' means any person engaged 
    in the raising and caring for livestock or poultry for slaughter.
        (2) Processor.--The term ``processor'' means any person engaged 
    in the business of obtaining livestock or poultry for the purpose 
    of slaughtering the livestock or poultry.
    (b) No Prohibition of Discussion.--Notwithstanding a provision in 
any contract between a producer and a processor for the production of 
livestock or poultry, or in any marketing agreement between a producer 
and a processor for the sale of livestock or poultry for a term of 1 
year or more, that provides that information contained in the contract 
is confidential, a party to the contract shall not be prohibited from 
discussing any terms or details of the contract with--
        (1) a Federal or State agency;
        (2) a legal adviser to the party;
        (3) a lender to the party;
        (4) an accountant hired by the party;
        (5) an executive or manager of the party;
        (6) a landlord of the party; or
        (7) a member of the immediate family of the party.
    (c) Effect on State Laws.--Subsection (b) does not--
        (1) preempt any State law that addresses confidentiality 
    provisions in contracts for the sale or production of livestock or 
    poultry, except any provision of State law that makes lawful a 
    contract provision that prohibits a party from, or limits a party 
    in, engaging in discussion that subsection (b) requires to be 
    permitted; or
        (2) deprive any State court of jurisdiction under any such 
    State law.
    (d) Applicability.--This section applies to each contract described 
in subsection (b) that is entered into, amended, renewed, or extended 
after the date of enactment of this Act.

SEC. 10504. VETERINARY TRAINING.

    The Secretary of Agriculture may develop a program to maintain in 
all regions of the United States a sufficient number of Federal and 
State veterinarians who are well trained in recognition and diagnosis 
of exotic and endemic animal diseases.

SEC. 10505. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (21 U.S.C. 114i(d)) is amended by striking ``2002'' and 
inserting ``2007''.

                      Subtitle G--Specialty Crops

SEC. 10601. MARKETING ORDERS FOR CANEBERRIES.

    (a) In General.--Section 8c of the Agricultural Adjustment Act (7 
U.S.C. 608c), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended--
        (1) in subsection (2)(A), by inserting ``caneberries (including 
    raspberries, blackberries, and loganberries),'' after ``other than 
    pears, olives, grapefruit, cherries,''; and
        (2) in subsection (6)(I), by striking ``tomatoes,,'' and 
    inserting ``tomatoes, caneberries (including raspberries, 
    blackberries, and loganberries),''.
    (b) Conforming Amendment.--Section 8e(a) of the Agricultural 
Adjustment Act (7 U.S.C. 608e-l(a)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended in the first 
sentence by striking ``or apples'' and inserting ``apples, or 
caneberries (including raspberries, blackberries, and loganberries)''.

SEC. 10602. AVAILABILITY OF SECTION 32 FUNDS.

    The second undesignated paragraph of section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c), is amended by striking 
``$300,000,000'' and inserting ``$500,000,000''.

SEC. 10603. PURCHASE OF SPECIALTY CROPS.

    (a) General Purchase Authority.--Of the funds made available under 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), for fiscal 
year 2002 and each subsequent fiscal year, the Secretary of Agriculture 
shall use not less than $200,000,000 each fiscal year to purchase 
fruits, vegetables, and other specialty food crops.
    (b) Purchase Authority.--
        (1) Purchase.--Of the amount specified in subsection (a), the 
    Secretary of Agriculture shall use not less than $50,000,000 each 
    fiscal year for the purchase of fresh fruits and vegetables for 
    distribution to schools and service institutions in accordance with 
    section 6(a) of the Richard B. Russell National School Lunch Act 
    (42 U.S.C. 1755(a)).
        (2) Servicing agency.--The Secretary of Agriculture shall 
    provide for the Secretary of Defense to serve as the servicing 
    agency for the procurement of the fresh fruits and vegetables under 
    this subsection on the same terms and conditions as provided in the 
    memorandum of agreement entered into between the Agricultural 
    Marketing Service, the Food and Consumer Service, and the Defense 
    Personnel Support Center during August 1995 (or any successor 
    memorandum of agreement).
    (c) Definitions.--In this section, the terms ``fruits'', 
``vegetables'', and ``other specialty food crops'' shall have the 
meaning given the terms by the Secretary of Agriculture.

SEC. 10604. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

    (a) Definition of Effective Financing Statement.--Section 
1324(c)(4) of the Food Security Act of 1985 (7 U.S.C. 1631(c)(4)) is 
amended--
        (1) in subparagraph (B), by striking ``signed'' and inserting 
    ``signed, authorized, or otherwise authenticated by the debtor,'';
        (2) by striking subparagraph (C);
        (3) in subparagraph (D)--
            (A) in clause (iii), by adding ``and'' after the semicolon 
        at the end; and
            (B) in clause (iv), by striking ``applicable;'' and all 
        that follows and inserting ``applicable, and the name of each 
        county or parish in which the farm products are produced or 
        located;'';
        (4) in subparagraph (E), by striking ``signed'' and inserting 
    ``signed, authorized, or otherwise authenticated by the debtor'';
        (5) in subparagraph (G), by striking ``notice signed'' and 
    inserting ``notice signed, authorized, or otherwise 
    authenticated''; and
        (6) by redesignating subparagraphs (D) through (I) as 
    subparagraphs (C) through (H), respectively.
    (b) Purchases Subject to Security Interests.--Section 1324(e) of 
the Food Security Act of 1985 (7 U.S.C. 1631(e)) is amended--
        (1) in paragraph (1)(A)(ii)--
            (A) in subclause (III), by adding ``and'' after the 
        semicolon at the end; and
            (B) in subclause (IV), by striking ``crop year,'' and all 
        that follows and inserting ``crop year, and the name of each 
        county or parish in which the farm products are produced or 
        located;'';
        (2) in paragraph (1)(A)(iii), by striking ``similarly signed'' 
    and inserting ``similarly signed, authorized, or otherwise 
    authenticated'';
        (3) in paragraph (1)(A)(iv), by striking ``notice signed'' and 
    inserting ``notice signed, authorized, or otherwise 
    authenticated'';
        (4) in paragraph (1)(A)(v), by inserting ``contains'' before 
    ``any payment''; and
        (5) in paragraph (3)--
            (A) in subparagraph (A), by striking ``subparagraph'' and 
        inserting ``subsection''; and
            (B) in subparagraph (B), by striking ``; and'' and 
        inserting a period.
    (c) Certain Sales Subject to Security Interest.--Section 
1324(g)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 1631(g)(2)(A)) 
is amended--
        (1) in clause (ii)--
            (A) in subclause (III), by adding ``and'' after the 
        semicolon at the end; and
            (B) in subclause (IV), by striking ``crop year,'' and all 
        that follows and inserting ``crop year, and the name of each 
        county or parish in which the farm products are produced or 
        located;'';
        (2) in clause (iii), by striking ``similarly signed'' and 
    inserting ``similarly signed, authorized, or otherwise 
    authenticated'';
        (3) in clause (iv), by striking ``notice signed'' and inserting 
    ``notice signed, authorized, or otherwise authenticated''; and
        (4) in clause (v), by inserting ``contains'' before ``any 
    payment''.

SEC. 10605. FARMERS' MARKET PROMOTION PROGRAM.

    (a) In General.--The Farmer-to-Consumer Direct Marketing Act of 
1976 is amended by inserting after section 5 (7 U.S.C. 3004) the 
following:

``SEC. 6. FARMERS' MARKET PROMOTION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a program, to 
be known as the `Farmers' Market Promotion Program' (referred to in 
this section as the `Program'), to make grants to eligible entities for 
projects to establish, expand, and promote farmers' markets.
    ``(b) Program Purposes.--
        ``(1) In general.--The purposes of the Program are--
            ``(A) to increase domestic consumption of agricultural 
        commodities by improving and expanding, or assisting in the 
        improvement and expansion of, domestic farmers' markets, 
        roadside stands, community-supported agriculture programs, and 
        other direct producer-to-consumer market opportunities; and
            ``(B) to develop, or aid in the development of, new 
        farmers' markets, roadside stands, community-supported 
        agriculture programs, and other direct producer-to-consumer 
        infrastructure.
        ``(2) Limitations.--An eligible entity may not use a grant or 
    other assistance provided under the Program for the purchase, 
    construction, or rehabilitation of a building or structure.
    ``(c) Eligible Entities.--An entity shall be eligible to receive a 
grant under the Program if the entity is--
        ``(1) an agricultural cooperative;
        ``(2) a local government;
        ``(3) a nonprofit corporation;
        ``(4) a public benefit corporation;
        ``(5) an economic development corporation;
        ``(6) a regional farmers' market authority; or
        ``(7) such other entity as the Secretary may designate.
    ``(d) Criteria and Guidelines.--The Secretary shall establish 
criteria and guidelines for the submission, evaluation, and funding of 
proposed projects under the Program.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.''.
    (b) Technical and Conforming Amendments.--
        (1) Survey.--Section 4 of the Farmer-to-Consumer Direct 
    Marketing Act of 1976 (7 U.S.C. 3003) is amended--
            (A) in the first sentence, by striking ``a continuing'' and 
        inserting ``an annual''; and
            (B) by striking the second sentence.
        (2) Direct marketing assistance.--Section 5 of the Farmer-to-
    Consumer Direct Marketing Act of 1976 (7 U.S.C. 3004) is amended--
            (A) in subsection (a)--
                (i) in the first sentence, by striking ``Extension 
            Service of the United States Department of Agriculture'' 
            and inserting ``Secretary''; and
                (ii) in the second sentence--

                    (I) by striking ``Extension Service'' and inserting 
                ``Secretary''; and
                    (II) by striking ``and on the basis of which of 
                these two agencies, or combination thereof, can best 
                perform these activities'' and inserting ``, as 
                determined by the Secretary'';

            (B) by redesignating subsection (b) as subsection (c); and
            (C) by inserting after subsection (a) the following:
    ``(b) Development of Farmers' Markets.--The Secretary shall--
        ``(1) work with the Governor of a State, and a State agency 
    designated by the Governor, to develop programs to train managers 
    of farmers' markets;
        ``(2) develop opportunities to share information among managers 
    of farmers' markets;
        ``(3) establish a program to train cooperative extension 
    service employees in the development of direct marketing 
    techniques; and
        ``(4) work with producers to develop farmers' markets.''.

SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    (a) In General.--Of funds of the Commodity Credit Corporation, the 
Secretary of Agriculture (acting through the Agricultural Marketing 
Service) shall use $5,000,000 for fiscal year 2002, to remain available 
until expended, to establish a national organic certification cost-
share program to assist producers and handlers of agricultural products 
in obtaining certification under the national organic production 
program established under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.).
    (b) Federal Share.--
        (1) In general.--Subject to paragraph (2), the Secretary shall 
    pay under this section not more than 75 percent of the costs 
    incurred by a producer or handler in obtaining certification under 
    the national organic production program, as certified to and 
    approved by the Secretary.
        (2) Maximum amount.--The maximum amount of a payment made to a 
    producer or handler under this section shall be $500.

SEC. 10607. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.

    (a) In General.--Section 501 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7401) is amended by adding at the end 
the following:
    ``(e) Exemption of Certified Organic Products from Assessments.--
        ``(1) In general.--Notwithstanding any provision of a commodity 
    promotion law, a person that produces and markets solely 100 
    percent organic products, and that does not produce any 
    conventional or nonorganic products, shall be exempt from the 
    payment of an assessment under a commodity promotion law with 
    respect to any agricultural commodity that is produced on a 
    certified organic farm (as defined in section 2103 of the Organic 
    Foods Production Act of 1990 (7 U.S.C. 6502)).
        ``(2) Regulations.--Not later than 1 year after the date of 
    enactment of this subsection, the Secretary shall promulgate 
    regulations concerning eligibility and compliance for an exemption 
    under paragraph (1).''.
    (b) Technical Amendments.--Section 501(a) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)) is 
amended--
        (1) in paragraph (17), by striking ``or'';
        (2) in paragraph (18), by striking the period and inserting ``; 
    or''; and
        (3) by adding at the end the following:
        ``(19) any other provision of law enacted after April 4, 1996, 
    that provides for the establishment and operation of a promotion 
    program described in the first sentence.''.

SEC. 10608. CRANBERRY ACREAGE RESERVE PROGRAM.

    (a) Definitions.--In this section:
        (1) Eligible area.--The term ``eligible area'' means a wetland 
    or buffer strip adjacent to a wetland that, as determined by the 
    Secretary--
            (A)(i) is used, and has a history of being used, for the 
        cultivation of cranberries; or
            (ii) is an integral component of a cranberry-growing 
        operation;
            (B) is located in an environmentally sensitive area.
        (2) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
    (b) Program.--The Secretary shall establish a program to purchase 
permanent easements in eligible areas from willing sellers.
    (c) Purchase Price.--The Secretary shall ensure, to the maximum 
extent practicable, that each easement purchased under this section is 
for an amount that appropriately reflects the range of values for 
agricultural and nonagricultural land in the region in which the 
eligible area subject to the easement is located (including whether 
that land is located in 1 or more environmentally sensitive areas, as 
determined by the Secretary).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000.

                       Subtitle H--Administration

SEC. 10701. INITIAL RATE OF BASIC PAY FOR EMPLOYEES OF COUNTY 
              COMMITTEES.

    Section 5334 of title 5, United States Code, is amended by striking 
subsection (e) and inserting the following:
    ``(e) An employee of a county committee established pursuant to 
section 8(b) of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b)) may, on appointment to a position subject to this 
subchapter, have the initial rate of basic pay of the employee fixed 
at--
        ``(1) the lowest rate of the higher grade that exceeds the rate 
    of basic pay of the employee with the county committee by not less 
    than 2 step-increases of the grade from which the employee was 
    promoted, if the Federal Civil Service position under this 
    subchapter is at a higher grade than the last grade the employee 
    had while an employee of the county committee;
        ``(2) the same step of the grade as the employee last held 
    during service with the county committee, if the Federal Civil 
    Service position under this subchapter is at the same grade as the 
    last grade the employee had while an employee of the county 
    committee; or
        ``(3) the lowest step of the Federal grade for which the rate 
    of basic pay is equal to or greater than the highest previous rate 
    of pay of the employee, if the Federal Civil Service position under 
    this subchapter is at a lower grade than the last grade the 
    employee had while an employee of the county committee.''.

SEC. 10702. COMMODITY FUTURES TRADING COMMISSION PAY COMPARABILITY.

    (a) Appointment and Compensation of Employees of the Commission.--
Section 2(a) of the Commodity Exchange Act (7 U.S.C. 2(a)) is amended--
        (1) by redesignating paragraphs (7) through (11) as paragraphs 
    (8) through (12), respectively; and
        (2) by inserting after paragraph (6) the following:
        ``(7) Appointment and compensation.--
            ``(A) In general.--The Commission may appoint and fix the 
        compensation of such officers, attorneys, economists, 
        examiners, and other employees as may be necessary for carrying 
        out the functions of the Commission under this Act.
            ``(B) Rates of pay.--Rates of basic pay for all employees 
        of the Commission may be set and adjusted by the Commission 
        without regard to chapter 51 or subchapter III of chapter 53 of 
        title 5, United States Code.
            ``(C) Comparability.--
                ``(i) In general.--The Commission may provide 
            additional compensation and benefits to employees of the 
            Commission if the same type of compensation or benefits are 
            provided by any agency referred to in section 1206(a) of 
            the Financial Institutions Reform, Recovery, and 
            Enforcement Act of 1989 (12 U.S.C. 1833b(a)) or could be 
            provided by such an agency under applicable provisions of 
            law (including rules and regulations).
                ``(ii) Consultation.--In setting and adjusting the 
            total amount of compensation and benefits for employees, 
            the Commission shall consult with, and seek to maintain 
            comparability with, the agencies referred to in section 
            1206(a) of the Financial Institutions Reform, Recovery, and 
            Enforcement Act of 1989 (12 U.S.C. 1833b(a)).''.
    (b) Reporting of Information by the Commission.--Section 1206 of 
the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1833b) is amended--
        (1) by striking ``The Federal'' and inserting the following:
    ``(a) In General.--The Federal''; and
        (2) by adding at the end the following:
    ``(b) Commodity Futures Trading Commission.--In establishing and 
adjusting schedules of compensation and benefits for employees of the 
Commodity Futures Trading Commission under applicable provisions of 
law, the Commission shall--
        ``(1) inform the heads of the agencies referred to in 
    subsection (a) and Congress of such compensation and benefits; and
        ``(2) seek to maintain comparability with those agencies 
    regarding compensation and benefits.''.
    (c) Conforming Amendments.--
        (1) Section 3132(a)(1) of title 5, United States Code, is 
    amended--
            (A) in subparagraph (C), by striking ``or'' at the end;
            (B) in subparagraph (D), by adding ``or'' at the end; and
            (C) by adding at the end the following:
            ``(E) the Commodity Futures Trading Commission;''.
        (2) Section 5316 of title 5, United States Code, is amended--
            (A) by striking ``General Counsel, Commodity Futures 
        Trading Commission.''; and
            (B) by striking ``Executive Director, Commodity Futures 
        Trading Commission.''.
        (3) Section 5373(a) of title 5, United States Code, is 
    amended--
            (A) in paragraph (2), by striking ``or'' at the end;
            (B) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (C) by adding at the end the following:
        ``(4) section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 
    2(a)(7)).''.

SEC. 10703. OVERTIME AND HOLIDAY PAY.

    (a) In General.--The Secretary of Agriculture may--
        (1) pay employees of the Department of Agriculture employed in 
    an establishment subject to the Federal Meat Inspection Act (21 
    U.S.C. 601 et seq.) or the Poultry Products Inspection Act (21 
    U.S.C. 451 et seq.) for all overtime and holiday work performed at 
    the establishment at rates determined by the Secretary, subject to 
    applicable law relating to minimum wages and maximum hours; and
        (2) accept from the establishment reimbursement for any sums 
    paid by the Secretary for the overtime and holiday work, at rates 
    determined under paragraph (1).
    (b) Availability.--Sums received by the Secretary under this 
section shall remain available until expended without further 
appropriation and without fiscal year limitation, to carry out 
subsection (a).
    (c) Conforming Amendments.--
        (1) Section 25 of the Poultry Products Inspection Act (21 
    U.S.C. 468) is amended by striking ``except that the cost'' and all 
    that follows and inserting ``except the cost of overtime and 
    holiday pay paid pursuant to the section 10703 of the Farm Security 
    and Rural Investment Act of 2002.''.
        (2) The Act of June 5, 1948 (21 U.S.C. 695), is amended by 
    striking ``overtime'' and all that follows and inserting ``overtime 
    and holiday pay paid pursuant to section 10703 of the Farm Security 
    and Rural Investment Act of 2002.''.
        (3) The matter under the heading ``bureau of animal industry'' 
    of the Act of July 24, 1919, is amended by striking the next to the 
    last paragraph (7 U.S.C. 394).
        (4) Section 5549 of title 5, United States Code is amended by 
    striking paragraph (1) and inserting the following:
        ``(1) section 10703 of the Farm Security and Rural Investment 
    Act of 2002;''.

SEC. 10704. ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL RIGHTS.

    (a) In General.--Section 218 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6918) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``and'' at the end;
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(3) Assistant Secretary of Agriculture for Civil Rights.''; 
    and
        (2) by striking subsections (d) and (e) and inserting the 
    following:
    ``(d) Duties of Assistant Secretary of Agriculture for Civil 
Rights.--The Secretary may delegate to the Assistant Secretary for 
Civil Rights responsibility for--
        ``(1) ensuring compliance with all civil rights and related 
    laws by all agencies and under all programs of the Department;
        ``(2) coordinating administration of civil rights laws 
    (including regulations) within the Department for employees of, and 
    participants in, programs of the Department; and
        ``(3) ensuring that necessary and appropriate civil rights 
    components are properly incorporated into all strategic planning 
    initiatives of the Department and agencies of the Department.''.
    (b) Compensation.--Section 5315 of title 5, United States Code, is 
amended by striking ``Assistant Secretaries of Agriculture (2)'' and 
inserting ``Assistant Secretaries of Agriculture (3)''.
    (c) Conforming Amendments.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
        (1) in paragraph (3), by striking ``or'' at the end;
        (2) in paragraph (4), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(5) the authority of the Secretary to establish within the 
    Department the position of Assistant Secretary of Agriculture for 
    Civil Rights, and delegate duties to the Assistant Secretary, under 
    section 218.''.

SEC. 10705. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE.

    (a) Audits of Records.--Section 921 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended by 
adding at the end the following:
    ``(k) Audits of Records.--The financial records of the Graduate 
School (including records relating to contracts or agreements entered 
into under subsection (c)) shall be made available to the Comptroller 
General for purposes of conducting an audit.''.
    (b) Conforming Repeal.--Section 1669 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5922) is repealed.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2002.

SEC. 10706. IMPLEMENTATION FUNDING AND INFORMATION MANAGEMENT.

    (a) Additional Funds for Administrative Costs.--
        (1) In general.--The Secretary of Agriculture, acting through 
    the Farm Service Agency, may use not more than $55,000,000 of funds 
    of the Commodity Credit Corporation to cover administrative costs 
    associated with the implementation of title I and the amendments 
    made by that title.
        (2) Availability.--The funds referred to in paragraph (1) shall 
    remain available to the Secretary until expended.
        (3) Set-aside.--Of the amount specified in paragraph (1), the 
    Secretary shall use not less than $5,000,000, but not more than 
    $8,000,000, to carry out subsection (b).
    (b) Information Management.--
        (1) Development of system.--The Secretary of Agriculture shall 
    develop a comprehensive information management system, using 
    appropriate technologies, to be used in implementing the programs 
    administered by the Federal Crop Insurance Corporation and the Farm 
    Service Agency.
        (2) Elements.--The information management system developed 
    under this subsection shall be designed to--
            (A) improve access by agricultural producers to programs 
        described in paragraph (1);
            (B) improve and protect the integrity of the information 
        collected;
            (C) meet the needs of the agencies that require the data in 
        the administration of their programs;
            (D) improve the timeliness of the collection of the 
        information;
            (E) contribute to the elimination of duplication of 
        information collection;
            (F) lower the overall cost to the Department of Agriculture 
        for information collection; and
            (G) achieve such other goals as the Secretary considers 
        appropriate.
        (3) Reconciliation of current information management.--The 
    Secretary shall ensure that all current information of the Federal 
    Crop Insurance Corporation and the Farm Service Agency is combined, 
    reconciled, redefined, and reformatted in such a manner so that the 
    agencies can use the common information management system developed 
    under this subsection.
        (4) Assistance for development of system.--The Secretary shall 
    enter into an agreement or contract with a non-Federal entity to 
    assist the Secretary in the development of the information 
    management system. The Secretary shall give preference in entering 
    into an agreement or contract to entities that have--
            (A) prior experience with the information and management 
        systems of the Federal Crop Insurance Corporation; and
            (B) collaborated with the Corporation in the development of 
        the identification procedures required by section 515(f) of the 
        Federal Crop Insurance Act (7 U.S.C. 1515(f)).
        (5) Use.--The information collected using the information 
    management system developed under this subsection may be made 
    available to--
            (A) any Federal agency that requires the information to 
        carry out the functions of the agency; and
            (B) any approved insurance provider, as defined in section 
        502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)), 
        with respect to producers insured by the approved insurance 
        provider.
        (6) Relation to other activities.--This subsection shall not 
    interfere with, or delay, existing agreements or requests for 
    proposals of the Federal Crop Insurance Corporation or the Farm 
    Service Agency regarding the information management activities 
    known as data mining or data warehousing.
    (c) Authorization of Appropriations.--In addition to amounts made 
available under subsection (a)(3), there are authorized to be 
appropriated such sums as are necessary to carry out subsection (b) for 
each of fiscal years 2003 through 2008.

SEC. 10707. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
              AND RANCHERS.

    (a) Definitions.--Section 2501(e) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)) is amended by 
adding at the end the following:
        ``(4) Department.--The term `Department' means the Department 
    of Agriculture.
        ``(5) Eligible entity.--The term `eligible entity' means any of 
    the following:
            ``(A) Any community-based organization, network, or 
        coalition of community-based organizations that--
                ``(i) has demonstrated experience in providing 
            agricultural education or other agriculturally related 
            services to socially disadvantaged farmers and ranchers;
                ``(ii) has provided to the Secretary documentary 
            evidence of work with socially disadvantaged farmers and 
            ranchers during the 2-year period preceding the submission 
            of an application for assistance under subsection (a); and
                ``(iii) does not engage in activities prohibited under 
            section 501(c)(3) of the Internal Revenue Code of 1986.
            ``(B) An 1890 institution or 1994 institution (as defined 
        in section 2 of the Agricultural Research, Extension, and 
        Education Reform Act of 1998 (7 U.S.C. 7601)), including West 
        Virginia State College.
            ``(C) An Indian tribal community college or an Alaska 
        Native cooperative college.
            ``(D) An Hispanic-serving institution (as defined in 
        section 1404 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3103)).
            ``(E) Any other institution of higher education (as defined 
        in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
        1001)) that has demonstrated experience in providing 
        agriculture education or other agriculturally related services 
        to socially disadvantaged farmers and ranchers in a region.
            ``(F) An Indian tribe (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)) or a national tribal organization that has 
        demonstrated experience in providing agriculture education or 
        other agriculturally related services to socially disadvantaged 
        farmers and ranchers in a region.
            ``(G) An organization or institution that received funding 
        under subsection (a) before January 1, 1996, but only with 
        respect to projects that the Secretary considers are similar to 
        projects previously carried out by the organization or 
        institution under such subsection.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.''.
    (b) Outreach and Assistance.--Section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is 
amended by striking subsection (a) and inserting the following:
    ``(a) Outreach and Assistance.--
        ``(1) Program.--The Secretary of Agriculture shall carry out an 
    outreach and technical assistance program to encourage and assist 
    socially disadvantaged farmers and ranchers--
            ``(A) in owning and operating farms and ranches; and
            ``(B) in participating equitably in the full range of 
        agricultural programs offered by the Department.
        ``(2) Requirements.--The outreach and technical assistance 
    program under paragraph (1) shall--
            ``(A) enhance coordination of the outreach, technical 
        assistance, and education efforts authorized under various 
        agriculture programs; and
            ``(B) include information on, and assistance with--
                ``(i) commodity, conservation, credit, rural, and 
            business development programs;
                ``(ii) application and bidding procedures;
                ``(iii) farm and risk management;
                ``(iv) marketing; and
                ``(v) other activities essential to participation in 
            agricultural and other programs of the Department.
        ``(3) Grants and contracts.--
            ``(A) In general.--The Secretary may make grants to, and 
        enter into contracts and other agreements with, an eligible 
        entity to provide information and technical assistance under 
        this subsection.
            ``(B) Relationship to other law.--The authority to carry 
        out this section shall be in addition to any other authority 
        provided in this or any other Act.
            ``(C) Other projects.--Notwithstanding paragraph (1), the 
        Secretary may make grants to, and enter into contracts and 
        other agreements with, an organization or institution that 
        received funding under this section before January 1, 1996, to 
        carry out a project that is similar to a project for which the 
        organization or institution received such funding.
        ``(4) Funding.--
            ``(A) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $25,000,000 for 
        each of fiscal years 2002 through 2007.
            ``(B) Interagency funding.--In addition to funds authorized 
        to be appropriated under subparagraph (A), any agency of the 
        Department may participate in any grant, contract, or agreement 
        entered into under this subsection by contributing funds, if 
        the agency determined that the objectives of the grant, 
        contract, or agreement will further the authorized programs of 
        the contributing agency.''.
    (c) Conforming Amendments.--Section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended--
        (1) in subsection (d)(1), by striking ``of Agriculture'' after 
    ``Department''; and
        (2) in subsection (g)(1), by striking ``of Agriculture'' after 
    ``Department''.

SEC. 10708. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED 
              FARMERS AND RANCHERS; PUBLIC DISCLOSURE REQUIREMENTS FOR 
              COUNTY COMMITTEE ELECTIONS.

    (a) Transparency and Accountability for Socially Disadvantaged 
Farmers and Ranchers.--The Food, Agriculture, Conservation, and Trade 
Act of 1990 is amended by inserting after section 2501 (7 U.S.C. 2279) 
the following:

``SEC. 2501A. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY 
              DISADVANTAGED FARMERS AND RANCHERS.

    ``(a) Purpose.--The purpose of this section is to ensure 
compilation and public disclosure of data to assess and hold the 
Department of Agriculture accountable for the nondiscriminatory 
participation of socially disadvantaged farmers and ranchers in 
programs of the Department.
    ``(b) Definition of Socially Disadvantaged Farmer or Rancher.--In 
this section, the term `socially disadvantaged farmer or rancher' has 
the meaning given the term in section 355(e) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2003(e)).
    ``(c) Compilation of Program Participation Data.--
        ``(1) Annual requirement.--For each county and State in the 
    United States, the Secretary shall compute annually the 
    participation rate of socially disadvantaged farmers and ranchers 
    as a percentage of the total participation of all farmers and 
    ranchers for each program of the Department of Agriculture 
    established for farmers or ranchers.
        ``(2) Reporting participation.--In reporting the rates of 
    participation under paragraph (1), the Secretary shall report the 
    participation rate of socially disadvantaged farmers and ranchers 
    according to race, ethnicity, and gender.''.
    (b) Public Disclosure Requirements for County Committee 
Elections.--Section 8(b)(5) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)(5)) is amended by striking 
subparagraph (B) and inserting the following:
            ``(B) Establishment and elections for county, area, or 
        local committees.--
                ``(i) Establishment.--

                    ``(I) In general.--In each county or area in which 
                activities are carried out under this section, the 
                Secretary shall establish a county or area committee.
                    ``(II) Local administrative areas.--The Secretary 
                may designate local administrative areas within a 
                county or a larger area under the jurisdiction of a 
                committee established under subclause (I).

                ``(ii) Composition of county, area, or local 
            committees.--A committee established under clause (i) shall 
            consist of not fewer than 3 nor more than 5 members that--

                    ``(I) are fairly representative of the agricultural 
                producers within the area covered by the county, area, 
                or local committee; and
                    ``(II) are elected by the agricultural producers 
                that participate or cooperate in programs administered 
                within the area under the jurisdiction of the county, 
                area, or local committee.

                ``(iii) Elections.--

                    ``(I) In general.--Subject to subclauses (II) 
                through (V), the Secretary shall establish procedures 
                for nominations and elections to county, area, or local 
                committees.
                    ``(II) Nondiscrimination statement.--Each 
                solicitation of nominations for, and notice of 
                elections of, a county, area, or local committee shall 
                include the nondiscrimination statement used by the 
                Secretary.
                    ``(III) Nominations.--

                        ``(aa) Eligibility.--To be eligible for 
                    nomination and election to the applicable county, 
                    area, or local committee, as determined by the 
                    Secretary, an agricultural producer shall be 
                    located within the area under the jurisdiction of a 
                    county, area, or local committee, and participate 
                    or cooperate in programs administered within that 
                    area.
                        ``(bb) Outreach.--In addition to such 
                    nominating procedures as the Secretary may 
                    prescribe, the Secretary shall solicit and accept 
                    nominations from organizations representing the 
                    interests of socially disadvantaged groups (as 
                    defined in section 355(e)(1) of the Consolidated 
                    Farm and Rural Development Act (7 U.S.C. 
                    2003(e)(1)).

                    ``(IV) Opening of ballots.--

                        ``(aa) Public notice.--At least 10 days before 
                    the date on which ballots are to be opened and 
                    counted, a county, area, or local committee shall 
                    announce the date, time, and place at which 
                    election ballots will be opened and counted.
                        ``(bb) Opening of ballots.--Election ballots 
                    shall not be opened until the date and time 
                    announced under item (aa).
                        ``(cc) Observation.--Any person may observe the 
                    opening and counting of the election ballots.

                    ``(V) Report of election.--Not later than 20 days 
                after the date on which an election is held, a county, 
                area, or local committee shall file an election report 
                with the Secretary and the State office of the Farm 
                Service Agency that includes--

                        ``(aa) the number of eligible voters in the 
                    area covered by the county, area, or local 
                    committee;
                        ``(bb) the number of ballots cast in the 
                    election by eligible voters (including the 
                    percentage of eligible voters that cast ballots);
                        ``(cc) the number of ballots disqualified in 
                    the election;
                        ``(dd) the percentage that the number of 
                    ballots disqualified is of the number of ballots 
                    received;
                        ``(ee) the number of nominees for each seat up 
                    for election;
                        ``(ff) the race, ethnicity, and gender of each 
                    nominee, as provided through the voluntary self-
                    identification of each nominee; and
                        ``(gg) the final election results (including 
                    the number of ballots received by each nominee).

                    ``(VI) National report.--Not later than 90 days 
                after the date on which the first election of a county, 
                area, or local committee that occurs after the date of 
                enactment of the Farm Security and Rural Investment Act 
                of 2002 is held, the Secretary shall complete a report 
                that consolidates all the election data reported to the 
                Secretary under subclause (V).
                    ``(VII) Election reform.--

                        ``(aa) Analysis.--If determined necessary by 
                    the Secretary after analyzing the data contained in 
                    the report under subclause (VI), the Secretary 
                    shall promulgate and publish in the Federal 
                    Register proposed uniform guidelines for conducting 
                    elections for members and alternate members of 
                    county, area, and local committees not later than 1 
                    year after the date of completion of the report.
                        ``(bb) Inclusion.--The procedures promulgated 
                    by the Secretary under item (aa) shall ensure fair 
                    representation of socially disadvantaged groups 
                    described in subclause (III)(bb) in an area covered 
                    by the county, area, or local committee, in cases 
                    in which those groups are underrepresented on the 
                    county, area, or local committee for that area.
                        ``(cc) Methods of inclusion.--Notwithstanding 
                    clause (ii), the Secretary may ensure inclusion of 
                    socially disadvantaged farmers and ranchers through 
                    provisions allowing for appointment of 1 additional 
                    voting member to a county, area, or local committee 
                    or through other methods.
                ``(iv) Term of office.--The term of office for a member 
            of a county, area, or local committee shall not exceed 3 
            years.
                ``(v) Public availability and report to congress.--

                    ``(I) Public disclosure.--The Secretary shall 
                maintain and make readily available to the public, via 
                website and otherwise in electronic and paper form, all 
                data required to be collected and computed under 
                section 2501A(c) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 and clause (iii)(V) 
                collected annually since the most recent Census of 
                Agriculture.
                    ``(II) Report to congress.--After each Census of 
                Agriculture, the Secretary shall report to Congress the 
                rate of loss or gain in participation by each socially 
                disadvantaged group, by race, ethnicity, and gender, 
                since the previous Census.''.

                     Subtitle I--General Provisions

SEC. 10801. COTTON CLASSIFICATION SERVICES.

    (a) Extension of Authority to Provide Services.--The first sentence 
of section 3a of the Act of March 3, 1927 (commonly known as the 
``Cotton Statistics and Estimates Act''; 7 U.S.C. 473a), is amended by 
striking ``2002'' and inserting ``2007''.
    (b) Repeal of Obsolete Effective Date Provisions.--
        (1) 1984 amendment.--The first section of Public Law 98-403 (98 
    Stat. 1479) is amended by striking ``, effective for the period 
    beginning October 1, 1984, and ending September 30, 1988,''.
        (2) 1987 amendments.--Section 2 of the Uniform Cotton Classing 
    Fees Act of 1987 (Public Law 100-108; 101 Stat. 728) is amended by 
    striking ``Effective for the period beginning on the date of 
    enactment of this Act and ending September 30, 1992, section'' and 
    inserting ``Section''.
        (3) 1991 amendments.--Section 120 of the Food, Agriculture, 
    Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 
    105 Stat. 1842) is amended by striking subsection (e).

SEC. 10802. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY 
              IN PRODUCING FOOD FOR HUMAN CONSUMPTION.

    (a) Public Information Campaign.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Agriculture shall 
develop and implement a program to communicate with the public 
regarding the use of biotechnology in producing food for human 
consumption. The information provided under the program shall include 
the following:
        (1) Science-based evidence on the safety of foods produced with 
    biotechnology.
        (2) Scientific data on the human outcomes of the use of 
    biotechnology to produce food for human consumption.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2002 through 2007.

SEC. 10803. CHINO DAIRY PRESERVE PROJECT.

    Notwithstanding any other provision of law, the Secretary of 
Agriculture, acting through the Natural Resources Conservation Service, 
may provide financial and technical assistance to the Chino Dairy 
Preserve Project, San Bernadino County, California.

SEC. 10804. GRAZINGLANDS RESEARCH LABORATORY.

    Notwithstanding any other provision of law, before December 31, 
2007, the Federal land and facilities at El Reno, Oklahoma, currently 
administered by the Secretary of Agriculture as the Grazinglands 
Research Laboratory shall not, without specific authorization by 
Congress--
        (1) be declared to be excess or surplus under the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 471 et 
    seq.); or
        (2) be conveyed or otherwise transferred in whole or in part.

SEC. 10805. FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE.

    (a) Authority.--The Secretary of Agriculture may award grants to 
the Food and Agricultural Policy Research Institute for the purpose of 
funding prospective, independent research on the effects of alternative 
domestic, foreign, and trade policies, on the agricultural sector, 
including research on the effects of those policies on--
        (1) commodity prices for--
            (A) feed; and
            (B) food grains, oilseeds, cotton, livestock, and products 
        thereof;
        (2) supply and demand conditions for similar products;
        (3) costs to the Federal Government;
        (4) farm income;
        (5) food costs;
        (6) the volume and value of trade in agricultural commodities; 
    and
        (7) exporter and importer supply, demand, and trade.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $6,000,000 for each of fiscal 
years 2003 through 2007.

SEC. 10806. MARKET NAMES FOR CATFISH AND GINSENG.

    (a) Catfish Labeling.--
        (1) In general.--Notwithstanding any other provision of law, 
    for purposes of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
    301 et seq.)--
            (A) the term ``catfish'' may only be considered to be a 
        common or usual name (or part thereof) for fish classified 
        within the family Ictaluridae; and
            (B) only labeling or advertising for fish classified within 
        that family may include the term ``catfish''.
        (2) Amendment.--Section 403 of the Federal Food, Drug, and 
    Cosmetic Act (21 U.S.C. 343) is amended by adding at the end the 
    following:
    ``(t) If it purports to be or is represented as catfish, unless it 
is fish classified within the family Ictaluridae.''.
    (b) Ginseng Labeling.--
        (1) In general.--Notwithstanding any other provision of law, 
    for purposes of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
    301 et seq.)--
            (A) the term ``ginseng'' may only be considered to be a 
        common or usual name (or part thereof) for any herb or herbal 
        ingredient derived from a plant classified within the genus 
        Panax; and
            (B) only labeling or advertising for herbs or herbal 
        ingredients classified within that genus may include the term 
        ``ginseng''.
        (2) Amendment.--Section 403 of the Federal Food, Drug, and 
    Cosmetic Act (21 U.S.C. 343) (as amended by subsection (a)(2)) is 
    amended by adding at the end the following:
    ``(u) If it purports to be or is represented as ginseng, unless it 
is an herb or herbal ingredient derived from a plant classified within 
the genus Panax.''.

SEC. 10807. FOOD SAFETY COMMISSION.

    (a) Establishment.--
        (1) In general.--There is established a commission to be known 
    as the ``Food Safety Commission'' (referred to in this section as 
    the ``Commission'').
        (2) Membership.--
            (A) Composition.--The Commission shall be composed of 15 
        members (including a Chairperson, appointed by the President.
            (B) Eligibility.--
                (i) In general.--Members of the Commission--

                    (I) shall have specialized training or significant 
                experience in matters under the jurisdiction of the 
                Commission; and
                    (II) shall represent, at a minimum--

                        (aa) consumers;
                        (bb) food scientists;
                        (cc) the food industry; and
                        (dd) health professionals.
                (ii) Federal employees.--Not more than 3 members of the 
            Commission may be Federal employees.
            (C) Date of appointments.--The appointment of the members 
        of the Commission shall be made as soon as practicable after 
        the date on which funds authorized to be appropriated under 
        subsection (e)(1) are made available.
            (D) Vacancies.--A vacancy on the Commission--
                (i) shall not affect the powers of the Commission; and
                (ii) shall be filled--

                    (I) not later than 60 days after the date on which 
                the vacancy occurs; and
                    (II) in the same manner as the original appointment 
                was made.

        (3) Meetings.--
            (A) Initial meeting.--The initial meeting of the Commission 
        shall be conducted not later than 30 days after the date of 
        appointment of the final member of the Commission.
            (B) Other meetings.--The Commission shall meet at the call 
        of the Chairperson.
        (4) Quorum; standing rules.--
            (A) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum to conduct business.
            (B) Standing rules.--At the first meeting of the 
        Commission, the Commission shall adopt standing rules of the 
        Commission to guide the conduct of business and decisionmaking 
        of the Commission.
    (b) Duties.--
        (1) Recommendations.--The Commission shall make specific 
    recommendations to enhance the food safety system of the United 
    States, including a description of how each recommendation would 
    improve food safety.
        (2) Components.--Recommendations made by the Commission under 
    paragraph (1) shall address all food available commercially in the 
    United States.
        (3) Report.--Not later than 1 year after the date on which the 
    Commission first meets, the Commission shall submit to the 
    President and Congress--
            (A) the findings, conclusions, and recommendations of the 
        Commission, including a description of how each recommendation 
        would improve food safety;
            (B) a summary of any other material used by the Commission 
        in the preparation of the report under this paragraph; and
            (C) if requested by 1 or more members of the Commission, a 
        statement of the minority views of the Commission.
    (c) Powers of the Commission.--
        (1) Hearings.--The Commission may, for the purpose of carrying 
    out this section, hold such hearings, meet and act at such times 
    and places, take such testimony, and receive such evidence as the 
    Commission considers advisable.
        (2) Information from federal agencies.--
            (A) In general.--The Commission may secure directly, from 
        any Federal agency, such information as the Commission 
        considers necessary to carry out this section.
            (B) Provision of information.--
                (i) In general.--Subject to subparagraph (C), on the 
            request of the Commission, the head of a Federal agency 
            described in subparagraph (A) may furnish information 
            requested by the Commission to the Commission.
                (ii) Administration.--The furnishing of information by 
            a Federal agency to the Commission shall not be considered 
            a waiver of any exemption available to the agency under 
            section 552 of title 5, United States Code.
            (C) Information to be kept confidential.--
                (i) In general.--For purposes of section 1905 of title 
            18, United States Code--

                    (I) the Commission shall be considered an agency of 
                the Federal Government; and
                    (II) any individual employed by an individual, 
                entity, or organization that is a party to a contract 
                with the Commission under this section shall be 
                considered an employee of the Commission.

                (ii) Prohibition on disclosure.--Information obtained 
            by the Commission, other than information that is available 
            to the public, shall not be disclosed to any person in any 
            manner except to an employee of the Commission as described 
            in clause (i), for the purpose of receiving, reviewing, or 
            processing the information.
    (d) Commission Personnel Matters.--
        (1) Members.--
            (A) Compensation.--A member of the Commission shall serve 
        without compensation for the services of the member on the 
        Commission.
            (B) Travel expenses.--A member of the Commission shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for an employee of an agency 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the home or regular place of business of 
        the member in the performance of the duties of the Commission.
        (2) Staff.--
            (A) In general.--The Chairperson of the Commission may, 
        without regard to the civil service laws (including 
        regulations), appoint and terminate the appointment of an 
        executive director and such other additional personnel as are 
        necessary to enable the Commission to perform the duties of the 
        Commission.
            (B) Confirmation of executive director.--The employment of 
        an executive director shall be subject to confirmation by the 
        Commission.
            (C) Compensation.--
                (i) In general.--Except as provided in clause (ii), the 
            Chairperson of the Commission may fix the compensation of 
            the executive director and other personnel without regard 
            to the provisions of chapter 51 and subchapter III of 
            chapter 53 of title 5, United States Code, relating to 
            classification of positions and General Schedule pay rates.
                (ii) Maximum rate of pay.--The rate of pay for the 
            executive director and other personnel shall not exceed the 
            rate payable for level II of the Executive Schedule under 
            section 5316 of title 5, United States Code.
        (3) Detail of federal government employees.--
            (A) In general.--An employee of the Federal Government may 
        be detailed to the Commission, without reimbursement, for such 
        period of time as is permitted by law.
            (B) Civil service status.--The detail of the employee shall 
        be without interruption or loss of civil service status or 
        privilege.
        (4) Procurement of temporary and intermittent services.--The 
    Chairperson of the Commission may procure temporary and 
    intermittent services in accordance with section 3109(b) of title 
    5, United States Code, at rates for individuals that do not exceed 
    the daily equivalent of the annual rate of basic pay prescribed for 
    level II of the Executive Schedule under section 5316 of that 
    title.
    (e) Authorization of Appropriations.--
        (1) In general.--There is authorized to be appropriated such 
    sums as are necessary to carry out this section.
        (2) Limitation.--No payment may be made under subsection (d) 
    except to the extent provided for in advance in an appropriations 
    Act.
    (f) Termination.--The Commission shall terminate on the date that 
is 60 days after the date on which the Commission submits the 
recommendations and report under subsection (b)(3).

SEC. 10808. PASTEURIZATION.

    (a) Pasteurization of Meat and Poultry.--
        (1) In general.--Effective beginning not later than 30 days 
    after the date of enactment of this Act, the Secretary of 
    Agriculture shall conduct an education program regarding the 
    availability and safety of processes and treatments that eliminate 
    or substantially reduce the level of pathogens on meat, meat food 
    products, poultry, and poultry products.
        (2) Authorization of appropriations.--There is authorized to be 
    appropriated such sums as are necessary to carry out this 
    subsection.
    (b) Pasteurization of Food As Pasteurized.--Section 403(h) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 343(h)) is amended--
        (1) by striking ``or'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(3) a food that is pasteurized unless--
            ``(A) such food has been subjected to a safe process or 
        treatment that is prescribed as pasteurization for such food in 
        a regulation promulgated under this Act; or
            ``(B)(i) such food has been subjected to a safe process or 
        treatment that--
                ``(I) is reasonably certain to achieve destruction or 
            elimination in the food of the most resistant 
            microorganisms of public health significance that are 
            likely to occur in the food;
                ``(II) is at least as protective of the public health 
            as a process or treatment described in subparagraph (A);
                ``(III) is effective for a period that is at least as 
            long as the shelf life of the food when stored under normal 
            and moderate abuse conditions; and
                ``(IV) is the subject of a notification to the 
            Secretary, including effectiveness data regarding the 
            process or treatment; and
            ``(ii) at least 120 days have passed after the date of 
        receipt of such notification by the Secretary without the 
        Secretary making a determination that the process or treatment 
        involved has not been shown to meet the requirements of 
        subclauses (I) through (III) of clause (i).
For purposes of paragraph (3), a determination by the Secretary that a 
process or treatment has not been shown to meet the requirements of 
subclauses (I) through (III) of subparagraph (B)(i) shall constitute 
final agency action under such subclauses.''.

SEC. 10809. RULEMAKING ON LABELING OF IRRADIATED FOOD; CERTAIN 
              PETITIONS.

    The Secretary of Health and Human Services (referred to in this 
section as the ``Secretary'') shall publish a proposed rule and, with 
due consideration to public comment, a final rule to revise, as 
appropriate, the current regulation governing the labeling of foods 
that have been treated to reduce pest infestation or pathogens by 
treatment by irradiation using radioactive isotope, electronic beam, or 
x-ray. Pending promulgation of the final rule required by this 
subsection, any person may petition the Secretary for approval of 
labeling, which is not false or misleading in any material respect, of 
a food which has been treated by irradiation using radioactive isotope, 
electronic beam, or x-ray. The Secretary shall approve or deny such a 
petition within 180 days of receipt of the petition, or the petition 
shall be deemed denied, except to the extent additional agency review 
is mutually agreed upon by the Secretary and the petitioner. Any denial 
of a petition under this subsection shall constitute final agency 
action subject to judicial review by the United States Court of Appeals 
for the District of Columbia Circuit. Any labeling approved through the 
foregoing petition process shall be subject to the provisions of the 
final rule referred to in the first sentence of the subparagraph on the 
effective date of such final rule.

SEC. 10810. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.

    Section 424 of the Plant Protection Act (7 U.S.C. 7734) is amended 
by striking subsection (a) and inserting the following:
    ``(a) Criminal Penalties.--
        ``(1) Offenses.--
            ``(A) In general.--A person that knowingly violates this 
        title, or 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 fined under title 18, United States Code, 
        imprisoned not more than 1 year, or both.
            ``(B) Movement.--A person that knowingly imports, enters, 
        exports, or moves any plant, plant product, biological control 
        organism, plant pest, noxious weed, or article, for 
        distribution or sale, in violation of this title, shall be 
        fined under title 18, United States Code, imprisoned not more 
        than 5 years, or both.
        ``(2) Multiple violations.--On the second and any subsequent 
    conviction of a person of a violation of this title under paragraph 
    (1), the person shall be fined under title 18, United States Code, 
    imprisoned not more than 10 years, or both.''.

SEC. 10811. PRECLEARANCE QUARANTINE INSPECTIONS.

    (a) Preclearance Inspections Required.--The Secretary of 
Agriculture, acting through the Administrator of the Animal and Plant 
Health Inspection Service, shall conduct preclearance quarantine 
inspections of persons, baggage, cargo, and any other articles destined 
for movement from the State of Hawaii to any of the following--
        (1) The continental United States.
        (2) Guam.
        (3) Puerto Rico.
        (4) The United States Virgin Islands.
    (b) Inspection Locations.--The preclearance quarantine inspections 
required by subsection (a) shall be conducted at all direct departure 
and interline airports in the State of Hawaii.
    (c) Limitation.--The Secretary shall not implement this section 
unless appropriations for necessary expenses of the Animal and Plant 
Health Inspection Service for inspection, quarantine, and regulatory 
activities are increased by an amount not less than $3,000,000 in an 
Act making appropriations for fiscal year 2003.

SEC. 10812. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.

    Section 3(2) of Public Law 98-138 (Public Law 98-138; 97 Stat. 870) 
is amended by striking ``twenty'' and inserting ``40''.

SEC. 10813. PINE POINT SCHOOL.

    Section 802(b)(2) of the No Child Left Behind Act of 2001 (Public 
Law 107-110) is amended by striking ``2002'' each place it appears and 
inserting ``2000''.

SEC. 10814. 7-MONTH EXTENSION OF CHAPTER 12 OF TITLE 11 OF THE UNITED 
              STATES CODE.

    (a) Amendments.--Section 149 of title I of division C of Public Law 
105-277 is amended--
        (1) by striking ``June 1, 2002'' each place it appears and 
    inserting ``January 1, 2003''; and
        (2) in subsection (a)--
            (A) by striking ``September 30, 2001'' and inserting ``May 
        31, 2002''; and
            (B) by striking ``October 1, 2001'' and inserting ``June 1, 
        2002''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on June 1, 2002.

SEC. 10815. PRACTICES INVOLVING NONAMBULATORY LIVESTOCK.

    (a) Report.--The Secretary of Agriculture shall investigate and 
submit to Congress a report on--
        (1) the scope of nonambulatory livestock;
        (2) the causes that render livestock nonambulatory;
        (3) the humane treatment of nonambulatory livestock; and
        (4) the extent to which nonambulatory livestock may present 
    handling and disposition problems for stockyards, market agencies, 
    and dealers.
    (b) Authority.--Based on the findings of the report, if the 
Secretary determines it necessary, the Secretary shall promulgate 
regulations to provide for the humane treatment, handling, and 
disposition of nonambulatory livestock by stockyards, market agencies, 
and dealers.
    (c) Administration and Enforcement.--For the purpose of 
administering and enforcing any regulations promulgated under 
subsection (b), the authorities provided under sections 10414 and 10415 
shall apply to the regulations in a similar manner as those sections 
apply to the Animal Health Protection Act. Any person that violates 
regulations promulgated under subsection (b) shall be subject to 
penalties provided in section 10414.

SEC. 10816. COUNTRY OF ORIGIN LABELING.

    The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is 
amended by adding at the end the following:

                ``Subtitle D--Country of Origin Labeling

``SEC. 281. DEFINITIONS.

    ``In this subtitle:
        ``(1) Beef.--The term `beef' means meat produced from cattle 
    (including veal).
        ``(2) Covered commodity.--
            ``(A) In general.--The term `covered commodity' means--
                ``(i) muscle cuts of beef, lamb, and pork;
                ``(ii) ground beef, ground lamb, and ground pork;
                ``(iii) farm-raised fish;
                ``(iv) wild fish;
                ``(v) a perishable agricultural commodity; and
                ``(vi) peanuts.
            ``(B) Exclusions.--The term `covered commodity' does not 
        include an item described in subparagraph (A) if the item is an 
        ingredient in a processed food item.
        ``(3) Farm-raised fish.--The term `farm-raised fish' includes--
            ``(A) farm-raised shellfish; and
            ``(B) fillets, steaks, nuggets, and any other flesh from a 
        farm-raised fish or shellfish.
        ``(4) Food service establishment.--The term `food service 
    establishment' means a restaurant, cafeteria, lunch room, food 
    stand, saloon, tavern, bar, lounge, or other similar facility 
    operated as an enterprise engaged in the business of selling food 
    to the public.
        ``(5) Lamb.--The term `lamb' means meat, other than mutton, 
    produced from sheep.
        ``(6) Perishable agricultural commodity; retailer.--The terms 
    `perishable agricultural commodity' and `retailer' have the 
    meanings given the terms in section 1(b) of the Perishable 
    Agricultural Commodities Act of 1930 (7 U.S.C. 499a(b)).
        ``(7) Pork.--The term `pork' means meat produced from hogs.
        ``(8) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture, acting through the Agricultural Marketing Service.
        ``(9) Wild fish.--
            ``(A) In general.--The term `wild fish' means naturally-
        born or hatchery-raised fish and shellfish harvested in the 
        wild.
            ``(B) Inclusions.--The term `wild fish' includes a fillet, 
        steak, nugget, and any other flesh from wild fish or shellfish.
            ``(C) Exclusions.--The term `wild fish' excludes net-pen 
        aquacultural or other farm-raised fish.

``SEC. 282. NOTICE OF COUNTRY OF ORIGIN.

    ``(a) In General.--
        ``(1) Requirement.--Except as provided in subsection (b), a 
    retailer of a covered commodity shall inform consumers, at the 
    final point of sale of the covered commodity to consumers, of the 
    country of origin of the covered commodity.
        ``(2) United states country of origin.--A retailer of a covered 
    commodity may designate the covered commodity as having a United 
    States country of origin only if the covered commodity--
            ``(A) in the case of beef, is exclusively from an animal 
        that is exclusively born, raised, and slaughtered in the United 
        States (including from an animal exclusively born and raised in 
        Alaska or Hawaii and transported for a period not to exceed 60 
        days through Canada to the United States and slaughtered in the 
        United States);
            ``(B) in the case of lamb and pork, is exclusively from an 
        animal that is exclusively born, raised, and slaughtered in the 
        United States;
            ``(C) in the case of farm-raised fish, is hatched, raised, 
        harvested, and processed in the United States;
            ``(D) in the case of wild fish, is--
                ``(i) harvested in waters of the United States, a 
            territory of the United States, or a State; and
                ``(ii) processed in the United States, a territory of 
            the United States, or a State, including the waters 
            thereof; and
            ``(E) in the case of a perishable agricultural commodity or 
        peanuts, is exclusively produced in the United States.
        ``(3) Wild fish and farm-raised fish.--The notice of country of 
    origin for wild fish and farm-raised fish shall distinguish between 
    wild fish and farm-raised fish.
    ``(b) Exemption for Food Service Establishments.--Subsection (a) 
shall not apply to a covered commodity if the covered commodity is--
        ``(1) prepared or served in a food service establishment; and
        ``(2)(A) offered for sale or sold at the food service 
    establishment in normal retail quantities; or
        ``(B) served to consumers at the food service establishment.
    ``(c) Method of Notification.--
        ``(1) In general.--The information required by subsection (a) 
    may be provided to consumers by means of a label, stamp, mark, 
    placard, or other clear and visible sign on the covered commodity 
    or on the package, display, holding unit, or bin containing the 
    commodity at the final point of sale to consumers.
        ``(2) Labeled commodities.--If the covered commodity is already 
    individually labeled for retail sale regarding country of origin, 
    the retailer shall not be required to provide any additional 
    information to comply with this section.
    ``(d) Audit Verification System.--The Secretary may require that 
any person that prepares, stores, handles, or distributes a covered 
commodity for retail sale maintain a verifiable recordkeeping audit 
trail that will permit the Secretary to verify compliance with this 
subtitle (including the regulations promulgated under section 284(b)).
    ``(e) Information.--Any person engaged in the business of supplying 
a covered commodity to a retailer shall provide information to the 
retailer indicating the country of origin of the covered commodity.
    ``(f) Certification of Origin.--
        ``(1) Mandatory identification.--The Secretary shall not use a 
    mandatory identification system to verify the country of origin of 
    a covered commodity.
        ``(2) Existing certification programs.--To certify the country 
    of origin of a covered commodity, the Secretary may use as a model 
    certification programs in existence on the date of enactment of 
    this Act, including--
            ``(A) the carcass grading and certification system carried 
        out under this Act;
            ``(B) the voluntary country of origin beef labeling system 
        carried out under this Act;
            ``(C) voluntary programs established to certify certain 
        premium beef cuts;
            ``(D) the origin verification system established to carry 
        out the child and adult care food program established under 
        section 17 of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1766); or
            ``(E) the origin verification system established to carry 
        out the market access program under section 203 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5623).

``SEC. 283. ENFORCEMENT.

    ``(a) In General.--Except as provided in subsections (b) and (c), 
section 253 shall apply to a violation of this subtitle.
    ``(b) Warnings.--If the Secretary determines that a retailer is in 
violation of section 282, the Secretary shall--
        ``(1) notify the retailer of the determination of the 
    Secretary; and
        ``(2) provide the retailer a 30-day period, beginning on the 
    date on which the retailer receives the notice under paragraph (1) 
    from the Secretary, during which the retailer may take necessary 
    steps to comply with section 282.
    ``(c) Fines.--If, on completion of the 30-day period described in 
subsection (b)(2), the Secretary determines that the retailer has 
willfully violated section 282, after providing notice and an 
opportunity for a hearing before the Secretary with respect to the 
violation, the Secretary may fine the retailer in an amount of not more 
than $10,000 for each violation.

``SEC. 284. REGULATIONS.

    ``(a) Guidelines.--Not later than September 30, 2002, the Secretary 
shall issue guidelines for the voluntary country of origin labeling of 
covered commodities based on the requirements of section 282.
    ``(b) Regulations.--Not later than September 30, 2004, the 
Secretary shall promulgate such regulations as are necessary to 
implement this subtitle.
    ``(c) Partnerships With States.--In promulgating the regulations, 
the Secretary shall, to the maximum extent practicable, enter into 
partnerships with States with enforcement infrastructure to assist in 
the administration of this subtitle.

``SEC. 285. APPLICABILITY.

    ``This subtitle shall apply to the retail sale of a covered 
commodity beginning September 30, 2004.''.

             Subtitle J--Miscellaneous Studies and Reports

SEC. 10901. REPORT ON SPECIALTY CROP PURCHASES.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary 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 on the quantity and type 
of--
        (1) fruits, vegetables, and other specialty food crops that are 
    purchased under section 10603; and
        (2) other commodities that are purchased under section 32 of 
    the Act of August 24, 1935 (7 U.S.C. 612c).

SEC. 10902. REPORT ON POUCHED AND CANNED SALMON.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall submit to 
Congress a report on efforts to expand the promotion, marketing, and 
purchasing of pouched and canned salmon harvested and processed in the 
United States under food and nutrition programs administered by the 
Secretary.
    (b) Components.--The report under subsection (a) shall include--
        (1) an analysis of pouched and canned salmon inventories in the 
    United States that, as of the date on which the report is 
    submitted, are available for purchase;
        (2) an analysis of the demand for pouched and canned salmon and 
    value-added products (such as salmon ``nuggets'') by--
            (A) partners of the Department of Agriculture (including 
        other appropriate Federal agencies); and
            (B) consumers; and
        (3) an analysis of impediments to additional purchases of 
    pouched and canned salmon, including--
            (A) any marketing issues; and
            (B) recommendations for methods to resolve those 
        impediments.

SEC. 10903. STUDY ON UPDATING YIELDS.

    (a) In General.--The Comptroller General shall conduct a study and 
make findings and recommendations with respect to determining how 
producer income would be affected by updating yield bases, including--
        (1) whether crop yields have increased over the past 20 crop 
    years for program crops and oilseeds;
        (2) whether program payments would be disbursed differently 
    under title I if yield bases were updated further;
        (3) what impact the target prices under title I would have on 
    producer income if the yield bases of the target prices were 
    further updated; and
        (4) what impact lower target prices with updated yield bases 
    would have on producer income, as compared with the impact of 
    target prices under title I.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General shall submit to Congress a report on 
the study, findings, and recommendations required by subsection (a).

SEC. 10904. REPORT ON EFFECT OF FARM PROGRAM PAYMENTS.

    (a) In General.--The Secretary of Agriculture shall conduct a 
review of the effects that payments under production flexibility 
contracts and market loss assistance payments have had, and that direct 
payments and counter-cyclical payments are likely to have, on the 
economic viability of producers and the farming infrastructure, 
particularly in areas where climate, soil types, and other agronomic 
conditions severely limit the covered crops that producers can choose 
to successfully and profitably produce.
    (b) Case Study Related to Rice Production.--The review shall 
include a case study of the effects that the payments described in 
subsection (a), and the forecast effects of increasing these or other 
fixed payments, are likely to have on rice producers (including tenant 
rice producers), the rice milling industry, and the economies of rice 
farming areas in Texas, where harvested rice acreage has fallen from 
320,000 acres in 1995 to only 211,000 acres in 2001.
    (c) Report and Recommendations.--
        (1) Report.--Not later than 90 days after the date of the 
    enactment of this Act, 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 the information collected for the review and the case 
    study and any findings made on the basis of the information.
        (2) Recommendations.--The report shall include recommendations 
    for minimizing the adverse effects on producers, with a special 
    focus on--
            (A) producers who are tenants;
            (B) the agricultural economies in farming areas generally;
            (C) particular areas described in subsection (a); and
            (D) on the area that is the subject of the case study 
        conducted under subsection (b).

SEC. 10905. CHILOQUIN DAM FISH PASSAGE FEASIBILITY STUDY.

    (a) In General.--The Secretary of the Interior, in collaboration 
with all interested parties (including the Modoc Point Irrigation 
District, the Klamath Tribes, and the Oregon Department of Fish and 
Wildlife), shall conduct a study of the feasibility of providing 
adequate upstream and downstream passage for fish at the Chiloquin Dam 
on the Sprague River, Oregon.
    (b) Subjects.--The study shall include--
        (1) a review of all alternatives for providing passage 
    described in subsection (a), including the removal of the dam;
        (2) the determination of the most appropriate alternative;
        (3) the development of recommendations for implementing that 
    alternative; and
        (4) examination of mitigation needed for upstream and 
    downstream water users, and for Klamath tribal nonconsumptive uses, 
    as a result of the implementation of the alternative.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of the Interior shall submit to Congress a 
report that describes the findings, conclusions, and recommendations of 
the study.

SEC. 10906. REPORT ON GEOGRAPHICALLY DISADVANTAGED FARMERS AND 
              RANCHERS.

    (a) Definition of Geographically Disadvantaged Farmer or Rancher.--
In this section, the term ``geographically disadvantaged farmer or 
rancher' means a farmer or rancher in--
        (1) an insular area (as defined in section 1404 of the National 
    Agricultural Research, Extension, and Teaching Policy Act of 1977 
    (7 U.S.C. 3103) (as amended by section 7502(a)); or
        (2) a State other than 1 of the 48 contiguous States.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary 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 
describes--
        (1) barriers to efficient and competitive transportation of 
    inputs and products by geographically disadvantaged farmers and 
    ranchers; and
        (2) means of encouraging and assisting geographically 
    disadvantaged farmers and ranchers--
            (A) to own and operate farms and ranches; and
            (B) to participate equitably in the full range of 
        agricultural programs offered by the Department of Agriculture.

SEC. 10907. STUDIES ON AGRICULTURAL RESEARCH AND TECHNOLOGY.

    (a) Scientific Studies.--
        (1) In general.--The Secretary of Agriculture may conduct 
    scientific studies on--
            (A) the transmission of spongiform encephalopathy in deer, 
        elk, and moose; and
            (B) chronic wasting disease (including the risks that 
        chronic wasting disease poses to livestock).
        (2) Report.--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 on the 
    results of any scientific studies conducted under paragraph (1).
    (b) Vaccines.--
        (1) Vaccine storage study.--The Secretary may--
            (A) conduct a study to determine the number of doses of 
        livestock disease vaccines that should be available to protect 
        against livestock diseases that could be introduced into the 
        United States; and
            (B) compare that number with the number of doses of the 
        livestock disease vaccines that are available as of that date.
        (2) Stockpiling of vaccines.--If, after conducting the study 
    and comparison described in paragraph (1), the Secretary determines 
    that there is an insufficient number of doses of a particular 
    vaccine referred to in that paragraph, the Secretary may take such 
    actions as are necessary to obtain the required additional doses of 
    the vaccine.

SEC. 10908. REPORT ON TOBACCO SETTLEMENT AGREEMENT.

    Not later than December 31, 2002, and annually thereafter through 
2006, the Comptroller General shall submit to Congress a report that 
describes all programs and activities that States have carried out 
using funds received under all phases of the Master Settlement 
Agreement of 1997.

SEC. 10909. REPORT ON SALE AND USE OF PESTICIDES FOR AGRICULTURAL USES.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of the Environmental Protection Agency 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 on the manner in which the Agency is applying regulations of the 
Agency governing the sale and use of pesticides for agricultural use to 
electronic commerce transactions.

SEC. 10910. REVIEW OF OPERATION OF AGRICULTURAL AND NATURAL RESOURCE 
              PROGRAMS ON TRIBAL TRUST LAND.

    (a) Review.--The Secretary of Agriculture (referred to in this 
section as the ``Secretary'') shall conduct a review of the operation 
of agricultural and natural resource programs available to farmers and 
ranchers operating on tribal and trust land, including--
        (1) agricultural commodity, price support, and farm income 
    support programs (collectively referred to in this section as 
    ``agricultural commodity programs'');
        (2) conservation programs (including financial and technical 
    assistance);
        (3) agricultural credit programs;
        (4) rural development programs; and
        (5) forestry programs.
    (b) Criteria for Review.--In carrying out the review under 
subsection (a), the Secretary shall consider--
        (1) the extent to which agricultural commodity programs and 
    conservation programs are consistent with tribal goals and 
    priorities regarding the sustainable use of agricultural land;
        (2) strategies for increasing tribal participation in 
    agricultural commodity programs and conservation programs;
        (3) the educational and training opportunities available to 
    Indian tribes and members of Indian tribes in the practical, 
    technical, and professional aspects of agriculture and land 
    management; and
        (4) the development and management of agricultural land under 
    the jurisdiction of Indian tribes in accordance with integrated 
    resource management plans that--
            (A) ensure proper management of the land;
            (B) produce increased economic returns;
            (C) promote employment opportunities; and
            (D) improve the social and economic well-being of Indian 
        tribes and members of Indian tribes.
    (c) Consultation.--In carrying out this section, the Secretary 
shall consult with--
        (1) the Secretary of the Interior;
        (2) local officers and employees of the Department of 
    Agriculture; and
        (3) program recipients.
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
contains--
        (1) a description of the results of the review conducted under 
    this section;
        (2) recommendations for program improvements; and
        (3) a description of actions that will be taken to carry out 
    the improvements.

                               Speaker of the House of Representatives.

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