[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2646 Public Print (PP)]

                           February 14, 2002

                    Ordered to be printed as passed

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     February 13, 2002.
      Resolved, That the bill from the House of Representatives (H.R. 
2646) entitled ``An Act to provide for the continuation of agricultural 
programs through fiscal year 2011.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Definitions.

            Subtitle A--Direct and Counter-Cyclical Payments

Sec. 111. Direct and counter-cyclical payments.
Sec. 112. Violations of contracts.
Sec. 113. Planting flexibility.
Sec. 114. Pilot program for farm counter-cyclical savings accounts.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

Sec. 121. Nonrecourse marketing assistance loans and loan deficiency 
                            payments.
Sec. 122. Eligible production.
Sec. 123. Loan rates.
Sec. 124. Term of loans.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency payments.
Sec. 127. Payments in lieu of loan deficiency payments for grazed 
                            acreage.
Sec. 128. Special marketing loan provisions for upland cotton.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 131. Milk price support program.
Sec. 132. National dairy program.
Sec. 133. Dairy export incentive and dairy indemnity programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product mandatory reporting.
Sec. 136. Funding of dairy promotion and research program.
Sec. 137. Dairy studies.

                            Chapter 2--Sugar

Sec. 141. Sugar program.
Sec. 142. Storage facility loans.
Sec. 143. Flexible marketing allotments for sugar.
Sec. 144. Reallocation of sugar quota.

                           Chapter 3--Peanuts

Sec. 151. Peanut program.
Sec. 152. Termination of marketing quotas for peanuts and compensation 
                            to peanut quota holders.

                       Subtitle D--Administration

Sec. 161. Marketing orders for caneberries.
Sec. 162. Reserve stock level.
Sec. 163. Farm reconstitutions.
Sec. 164. Adjustment authority related to Uruguay Round compliance.
Sec. 165. Suspension of permanent price support authority.
Sec. 166. Commodity purchases.
Sec. 167. Hard white wheat incentive payments.
Sec. 168. Livestock assistance program.
Sec. 169. Payment limitations; nutrition and commodity programs.
Sec. 170. Restriction of commodity and crop insurance payments, loans, 
                            and benefits to previously cropped land; 
                            food stamp program for certain qualified 
                            aliens.
Sec. 171. Reduction of commodity benefits to improve nutrition 
                            assistance.
Sec. 172. Reports on equitable relief and misaction-misinformation 
                            requests.
Sec. 173. Estimates of net farm income.
Sec. 174. Commodity Credit Corporation inventory.
Sec. 175. Agricultural producers supplemental payments and assistance.

               Subtitle E--Payment Limitation Commission

Sec. 181. Establishment of Commission.
Sec. 182. Duties.
Sec. 183. Powers.
Sec. 184. Commission personnel matters.
Sec. 185. Federal Advisory Committee Act.
Sec. 186. Funding.
Sec. 187. Termination of Commission.

              Subtitle F--Emergency Agriculture Assistance

Sec. 191. Income loss assistance.
Sec. 192. Livestock assistance program.
Sec. 193. Market loss assistance for apple producers.
Sec. 194. Commodity Credit Corporation.
Sec. 195. Administrative expenses.
Sec. 196. Regulations.
Sec. 197. Emergency requirement.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

Sec. 201. Conservation security program.
Sec. 202. Funding.
Sec. 203. Partnerships and cooperation.
Sec. 204. Administrative requirements for conservation programs.
Sec. 205. Reform and assessment of conservation programs.
Sec. 206. Conservation security program regulations.
Sec. 207. Conforming amendments.

                     Subtitle B--Program Extensions

Sec. 211. Comprehensive conservation enhancement program.
Sec. 212. Conservation reserve program.
Sec. 213. Environmental quality incentives program.
Sec. 214. Wetlands reserve program.
Sec. 215. Water conservation.
Sec. 216. Resource conservation and development program.
Sec. 217. Wildlife habitat incentive program.
Sec. 218. Farmland protection program.
Sec. 219. Grassland reserve program.
Sec. 220. State technical committees.
Sec. 221. Use of symbols, slogans, and logos.

                      Subtitle C--Organic Farming

Sec. 231. Organic Agriculture Research Trust Fund.
Sec. 232. Establishment of National Organic Research Endowment 
                            Institute.

                      Subtitle D--Regional Equity

Sec. 241. Allocation of conservation funds by State.

                       Subtitle E--Miscellaneous

Sec. 261. Cranberry acreage reserve program.
Sec. 262. Klamath Basin.

                            TITLE III--TRADE

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

Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of currencies by private voluntary 
                            organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation, 
                            delivery, and distribution of shelf-stable 
                            prepackaged foods.
Sec. 309. Pilot emergency relief program to provide live lamb to 
                            Afghanistan.
Sec. 310. Sale procedure.
Sec. 311. Prepositioning.
Sec. 312. Expiration date.
Sec. 313. Micronutrient fortification program.
Sec. 314. John Ogonowski Farmer-to-Farmer Program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 321. Export credit guarantee program.
Sec. 322. Market access program.
Sec. 323. Export enhancement program.
Sec. 324. Foreign market development cooperator program.
Sec. 325. Food for progress and education programs.
Sec. 326. Exporter assistance initiative.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Bill Emerson Humanitarian Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Surplus commodities for developing or friendly countries.
Sec. 335. Agricultural trade with Cuba.
Sec. 336. Sense of Congress concerning agricultural trade.
Sec. 337. Report on use of perishable commodities.
Sec. 338. Sense of Senate concerning foreign assistance programs.

                      TITLE IV--NUTRITION PROGRAMS

Sec. 401. Short title.

                     Subtitle A--Food Stamp Program

Sec. 411. Encouragement of payment of child support.
Sec. 412. Simplified definition of income.
Sec. 413. Increase in benefits to households with children.
Sec. 414. Simplified determination of housing costs.
Sec. 415. Simplified utility allowance.
Sec. 416. Simplified procedure for determination of earned income.
Sec. 417. Simplified determination of deductions.
Sec. 418. Simplified definition of resources.
Sec. 419. Alternative issuance systems in disasters.
Sec. 420. State option to reduce reporting requirements.
Sec. 421. Benefits for adults without dependents.
Sec. 422. Preservation of access to electronic benefits.
Sec. 423. Cost neutrality for electronic benefit transfer systems.
Sec. 424. Alternative procedures for residents of certain group 
                            facilities.
Sec. 425. Redemption of benefits through group living arrangements.
Sec. 426. Availability of food stamp program applications on the 
                            Internet.
Sec. 427. Simplified determinations of continuing eligibility.
Sec. 428. Clearinghouse for successful nutrition education efforts.
Sec. 429. Transitional food stamps for families moving from welfare.
Sec. 430. Delivery to retailers of notices of adverse action.
Sec. 431. Reform of quality control system.
Sec. 432. Improvement of calculation of State performance measures.
Sec. 433. Bonuses for States that demonstrate high performance.
Sec. 434. Employment and training program.
Sec. 435. Reauthorization of food stamp program and food distribution 
                            program on Indian reservations.
Sec. 436. Coordination of program information efforts.
Sec. 437. Expanded grant authority.
Sec. 438. Access and outreach pilot projects.
Sec. 439. Consolidated block grants and administrative funds.
Sec. 440. Assistance for community food projects.
Sec. 441. Availability of commodities for the emergency food assistance 
                            program.
Sec. 442. Use of approved food safety technology.
Sec. 443. Innovative programs for addressing common community problems.
Sec. 444. Report on use of electronic benefit transfer systems.
Sec. 445. Vitamin and mineral supplements.

                  Subtitle B--Miscellaneous Provisions

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Partial restoration of benefits to legal immigrants.
Sec. 453. Commodities for school lunch programs.
Sec. 454. Eligibility for free and reduced price meals.
Sec. 455. Eligibility for assistance under the special supplemental 
                            nutrition program for women, infants, and 
                            children.
Sec. 456. Report on conversion of WIC program into an individual 
                            entitlement program.
Sec. 457. Commodity donations.
Sec. 458. Purchases of locally produced foods.
Sec. 459. Seniors farmers' market nutrition program.
Sec. 460. Farmers' market nutrition program.
Sec. 461. Fruit and vegetable pilot program.
Sec. 462. Congressional Hunger Fellows Program.
Sec. 463. Nutrition information and awareness pilot program.
Sec. 464. Effective date.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 501. Direct loans.
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or 
                            rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 511. Direct loans.
Sec. 512. Amount of guarantee of loans for tribal farm operations; 
                            waiver of limitations for tribal farm 
                            operations and other farm operations.

                 Subtitle C--Administrative Provisions

Sec. 521. Eligibility of limited liability companies for farm ownership 
                            loans, farm operating loans, and emergency 
                            loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority to enter into contracts; private 
                            collection agencies.
Sec. 524. Interest rate options for loans in servicing.
Sec. 525. Annual review of borrowers.
Sec. 526. Simplified loan applications.
Sec. 527. Inventory property.
Sec. 528. Definitions.
Sec. 529. Loan authorization levels.
Sec. 530. Interest rate reduction program.
Sec. 531. Options for satisfaction of obligation to pay recapture 
                            amount for shared appreciation agreements.
Sec. 532. Waiver of borrower training certification requirement.
Sec. 533. Annual review of borrowers.

                        Subtitle D--Farm Credit

Sec. 541. Repeal of burdensome approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage 
                            Corporation.

                     Subtitle E--General Provisions

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effective date.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

Sec. 601. National Rural Cooperative and Business Equity Fund.
Sec. 602. Rural business investment program.
Sec. 603. Full funding of pending rural development loan and grant 
                            applications.
Sec. 604. Rural Endowment Program.
Sec. 605. Enhancement of access to broadband service in rural areas.
Sec. 606. Value-added agricultural product market development grants.
Sec. 607. National Rural Development Information Clearinghouse.

           Subtitle B--National Rural Development Partnership

Sec. 611. Short title.
Sec. 612. National Rural Development Partnership.

        Subtitle C--Consolidated Farm and Rural Development Act

Sec. 621. Water or waste disposal grants.
Sec. 622. Rural business opportunity grants.
Sec. 623. Rural water and wastewater circuit rider program.
Sec. 624. Multijurisdictional regional planning organizations.
Sec. 625. Certified nonprofit organizations sharing expertise.
Sec. 626. Loan guarantees for certain rural development loans.
Sec. 627. Rural firefighters and emergency personnel grant program.
Sec. 628. Tribal college and university essential community facilities.
Sec. 629. Emergency community water assistance grant program.
Sec. 630. Water and waste facility grants for Native American tribes.
Sec. 631. Water systems for rural and native villages in Alaska.
Sec. 632. Rural business enterprise grants.
Sec. 633. Rural cooperative development grants.
Sec. 634. Grants to broadcasting systems.
Sec. 635. Business and industry loan modifications.
Sec. 636. Value-added intermediary relending program.
Sec. 637. Use of rural development loans and grants for other purposes.
Sec. 638. Simplified application forms for loan guarantees.
Sec. 639. Definition of rural and rural area.
Sec. 640. Rural entrepreneurs and microenterprise assistance program.
Sec. 641. Rural seniors.
Sec. 642. Children's day care facilities.
Sec. 643. Rural telework.
Sec. 644. Historic barn preservation.
Sec. 645. Grants for emergency weather radio transmitters.
Sec. 646. Grants for training farm workers.
Sec. 647. Delta Regional Authority.
Sec. 648. SEARCH grants for small communities.
Sec. 649. Northern Great Plains Regional Authority.

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

Sec. 651. Alternative Agricultural Research and Commercialization 
                            Corporation.
Sec. 652. Telemedicine and distance learning services in rural areas.

             Subtitle E--Rural Electrification Act of 1936

Sec. 661. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 662. Expansion of 911 access.

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 701. Definitions.
Sec. 702. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.
Sec. 703. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 704. Competitive research facilities grant program.
Sec. 705. Grants for research on the production and marketing of 
                            alcohols and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 706. Policy research centers.
Sec. 707. Human nutrition intervention and health promotion research 
                            program.
Sec. 708. Pilot research program to combine medical and agricultural 
                            research.
Sec. 709. Nutrition education program.
Sec. 710. Animal health and disease research programs.
Sec. 711. Research on national or regional problems.
Sec. 712. Education grants programs for Hispanic-serving institutions.
Sec. 713. Competitive grants for international agricultural science and 
                            education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment grants.
Sec. 716. Agricultural research programs.
Sec. 717. Extension education.
Sec. 718. Availability of competitive grant funds.
Sec. 719. Joint requests for proposals.
Sec. 720. Supplemental and alternative crops.
Sec. 721. Aquaculture.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning and response programs.

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

Sec. 731. National genetic resources program.
Sec. 732. Biotechnology risk assessment research.
Sec. 733. Rural electronic commerce extension program.
Sec. 734. High-priority research and extension initiatives.
Sec. 735. Nutrient management research and extension initiative.
Sec. 736. Organic agriculture research and extension initiative.
Sec. 737. Agricultural telecommunications program.
Sec. 738. Assistive technology program for farmers with disabilities.

Subtitle C--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 741. Initiative for Future Agriculture and Food Systems.
Sec. 742. Partnerships for high-value agricultural product quality 
                            research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson Initiative for Crop Diversification.
Sec. 746. Integrated research, education, and extension competitive 
                            grants program.
Sec. 747. Support for research regarding diseases of wheat and barley 
                            caused by fusarium graminearum.
Sec. 748. Bovine Johne's disease control program.
Sec. 749. Grants for youth organizations.
Sec. 750. Agricultural biotechnology research and development for 
                            developing countries.
Sec. 750A. Office of Pest Management Policy.
Sec. 750B. Senior Scientific Research Service.

                     Subtitle D--Land-Grant Funding

                      Chapter 1--1862 Institutions

Sec. 751. Carryover.
Sec. 752. Reporting of technology transfer activities.
Sec. 753. Compliance with multistate and integration requirements.

                      Chapter 2--1994 Institutions

Sec. 754. Extension at 1994 institutions.
Sec. 755. Equity in Educational Land-Grant Status Act of 1994.
Sec. 756. Eligibility for integrated grants program.

                      Chapter 3--1890 Institutions

Sec. 757. Authorization percentages for research and extension formula 
                            funds.
Sec. 758. Carryover.
Sec. 759. Reporting of technology transfer activities.
Sec. 760. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 761. National research and training virtual centers.
Sec. 762. Matching funds requirement for research and extension 
                            activities.

                   Chapter 4--Land-grant Institutions

                         subchapter a--general
Sec. 771. Priority-setting process.
Sec. 772.subchapter b--land-grant institutions in insular areas
Sec. 775. Distance education grants program for insular area land-grant 
                            institutions.
Sec. 776. Matching requirements for research and extension formula 
                            funds for insular area land-grant 
                            institutions.

                         Subtitle E--Other Laws

Sec. 781. Critical agricultural materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural research facilities.
Sec. 784. Competitive, special, and facilities research grants.
Sec. 785. Risk management education for beginning farmers and ranchers.
Sec. 786. Aquaculture.
Sec. 787. Carbon cycle research.

                      Subtitle F--New Authorities

Sec. 791. Definitions.
Sec. 792. Regulatory and inspection research.
Sec. 793. Emergency research transfer authority.
Sec. 794. Review of Agricultural Research Service.
Sec. 795. Technology transfer for rural development.
Sec. 796. Beginning farmer and rancher development program.
Sec. 797. Sense of Congress regarding doubling of funding for 
                            agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for farmers and ranchers participating in 
                            conservation programs.
Sec. 798B. Organic production and market data initiatives.
Sec. 798C. Organically produced product research and education.
Sec. 798D. International organic research collaboration.
Sec. 798E. Report on producers and handlers of organic agricultural 
                            products.

                          TITLE VIII--FORESTRY

Sec. 801. Office of International Forestry.
Sec. 802. McIntire-Stennis cooperative forestry research program.
Sec. 803. Sustainable forestry outreach initiative; renewable resources 
                            extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Sustainable forestry cooperative program.
Sec. 806. Sustainable forest management program.
Sec. 807. Forest Legacy Program.
Sec. 808. Forest fire research centers.
Sec. 809. Wildfire prevention and hazardous fuel purchase program.
Sec. 810. Chesapeake Bay Watershed Forestry Program.
Sec. 811. Enhanced community fire protection.
Sec. 812. Watershed forestry assistance program.
Sec. 813. Suburban and Community Forestry and Open Space Initiative.
Sec. 814. General provisions.
Sec. 815. State forest stewardship coordinating committees.
Sec. 816. USDA National Agroforestry Center.
Sec. 817. Office of Tribal Relations.
Sec. 818. Assistance to tribal governments.
Sec. 819. Sudden oak death syndrome.
Sec. 820. Independent investigation of firefighter
Sec. 821. Adaptive ecosystem restoration of Arizona and New Mexico 
                            forests and woodlands.

                            TITLE IX--ENERGY

Sec. 901. Findings.
Sec. 902. Consolidated Farm and Rural Development Act.
Sec. 903. Biomass Research and Development Act of 2000.
Sec. 904. Rural Electrification Act of 1936.
Sec. 905. Carbon sequestration demonstration program.
Sec. 906. Sense of Congress concerning national renewable fuels 
                            standard.
Sec. 907. Sense of Congress concerning the bioenergy program of the 
                            Department of Agriculture.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

Sec. 1001. Country of origin labeling.
Sec. 1002. Quality grade labeling of imported meat and meat food 
                            products.

                       Subtitle B--Crop Insurance

Sec. 1011. Equal crop insurance treatment of potatoes and sweet 
                            potatoes.
Sec. 1012. Continuous coverage.
Sec. 1013. Quality loss adjustment procedures.
Sec. 1014. Conservation requirements.

                  Subtitle C--Animal Health Protection

Sec. 1021. Short title.
Sec. 1022. Findings.
Sec. 1023. Definitions.
Sec. 1024. Restriction on importation or entry.
Sec. 1025. Exportation.
Sec. 1026. Interstate movement.
Sec. 1027. Seizure, quarantine, and disposal.
Sec. 1028. Inspections, seizures, and warrants.
Sec. 1029. Detection, control, and eradication of diseases and pests.
Sec. 1030. Veterinary accreditation program.
Sec. 1031. Cooperation.
Sec. 1032. Reimbursable agreements.
Sec. 1033. Administration and claims.
Sec. 1034. Penalties.
Sec. 1035. Enforcement.
Sec. 1036. Regulations and orders.
Sec. 1037. Authorization of appropriations.
Sec. 1038. Repeals and conforming amendments.

                     Subtitle D--General Provisions

Sec. 1041. Fees for pesticides.
Sec. 1042. Pest management in schools.
Sec. 1043. Prohibition on packers owning, feeding, or controlling 
                            livestock.
Sec. 1044. Packers and stockyards.
Sec. 1045. Unlawful stockyard practices involving nonambulatory 
                            livestock.
Sec. 1046. Arbitration clauses.
Sec. 1047. Cotton classification services.
Sec. 1048. Protection for purchasers of farm products.
Sec. 1049. Improved standards for the care and treatment of certain 
                            animals.
Sec. 1050. Expansion of State marketing programs.
Sec. 1051. Definition of animal under the Animal Welfare Act.
Sec. 1052. Penalties and foreign commerce provisions of the Animal 
                            Welfare Act.
Sec. 1053. Prohibition on interstate movement of animals for animal 
                            fighting.
Sec. 1054. Outreach and assistance for socially disadvantaged farmers 
                            and ranchers.
Sec. 1055. Wild fish and wild shellfish.
Sec. 1056. Assistant Secretary of Agriculture for Civil Rights.
Sec. 1057. Transparency and accountability for socially disadvantaged 
                            farmers and ranchers; public disclosure 
                            requirements for county committee 
                            elections.
Sec. 1058. Animal enterprise terrorism.
Sec. 1059. Pseudorabies eradication program.
Sec. 1060. Transportation of poultry and other animals.
Sec. 1061. Emergency grants to assist low-income migrant and seasonal 
                            farmworkers.
Sec. 1062. Tree assistance program.
Sec. 1063. Preclearance quarantine inspections.
Sec. 1064. Emergency loans for seed producers.
Sec. 1065. National organic certification cost-share program.
Sec. 1066. Food Safety Commission.
Sec. 1067. Humane methods of animal slaughter.
Sec. 1068. Penalties for violations of Plant Protection Act.
Sec. 1069. Connecticut River Atlantic Salmon Commission.
Sec. 1070. Bear protection.
Sec. 1071. Reenactment of family farmer bankruptcy provisions.
Sec. 1072. Prohibition on packers owning, feeding, or controlling 
                            livestock.
Sec. 1073. Equity and fairness for the promotion of imported Hass 
                            avocados.
Sec. 1074. Sense of the Senate regarding social security surplus funds.
Sec. 1075. Sense of the Senate on permanent repeal of estate taxes.
Sec. 1076. Commercial fisheries failure.
Sec. 1077. Review of state meat inspection programs.
Sec. 1078. Agricultural research and technology.
Sec. 1079. Office of Science Technology Policy.
Sec. 1079A. Operation of agricultural and natural resource programs on 
                            tribal trust land.
Sec. 1079B. Assistance for geographically disadvantaged farmers and 
                            ranchers.
Sec. 1079C. Sense of Senate regarding use of the name ginseng.
Sec. 1079D. Adjusted gross revenue insurance pilot program.
Sec. 1079E. Pasteurization.

                    Subtitle E--Studies and Reports

Sec. 1081. Report on pouched and canned salmon.
Sec. 1082. Settlement agreement report.
Sec. 1083. Report on genetically modified pest-protected plants.
Sec. 1084. Study of creation of litter bank by University of Arkansas.
Sec. 1085. Study of feasibility of producer indemnification from 
                            Government-caused disasters.
Sec. 1086. Report on sale and use of pesticides for agricultural uses.
Sec. 1087. Report on rats, mice, and birds.
Sec. 1088. Task Force on National Institutes for Plant and Agricultural 
                            Sciences.

                 Subtitle F--Organic Products Promotion

Sec. 1091. Short title.
Sec. 1092. Definitions.
Sec. 1093. Issuance of orders.
Sec. 1094. Required terms in order.
Sec. 1095. Permissive terms in order.
Sec. 1096. Assessments.
Sec. 1097. Referenda.
Sec. 1098. Petition and review of orders.
Sec. 1098A. Enforcement.
Sec. 1098B. Investigations and power to subpoena.
Sec. 1098C. Suspension or termination.
Sec. 1098D. Amendments to orders.
Sec. 1098E. Effect on other laws.
Sec. 1098F. Regulations.
Sec. 1098G. Authorization of appropriations.

                       Subtitle G--Administration

Sec. 1099. Regulations.
Sec. 1099A. Effect of amendments.
Sec. 1099B. Commodity Credit Corporation funding.

                      TITLE I--COMMODITY PROGRAMS

SEC. 101. DEFINITIONS.

    Section 102 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7202) is amended to read as follows:

``SEC. 102. DEFINITIONS.

    ``In this title:
            ``(1) Agricultural act of 1949.--Except in section 171, the 
        term `Agricultural Act of 1949' means the Agricultural Act of 
        1949 (7 U.S.C. 1421 et seq.), as in effect prior to the 
        suspensions under section 171(b)(1).
            ``(2) Considered planted.--The term `considered planted' 
        means any acreage on the farm that--
                    ``(A) producers on a farm were prevented from 
                planting to a crop because of drought, flood, or other 
                natural disaster, or other condition beyond the control 
                of the eligible owners and producers on the farm, as 
                determined by the Secretary; and
                    ``(B) was not planted to another contract commodity 
                (other than a contract commodity produced under an 
                established practice of double cropping).
            ``(3) Contract.--The term `contract' means a contract 
        entered into under subtitle B.
            ``(4) Contract acreage.--The term `contract acreage' means 
        the contract acreage determined under section 111(f).
            ``(5) Contract commodity.--The term `contract commodity' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        rice, and oilseeds.
            ``(6) Contract payment.--The term `contract payment' means 
        a payment made under subtitle B pursuant to a contract.
            ``(7) Department.--The term `Department' means the 
        Department of Agriculture.
            ``(8) Extra long staple cotton.--The term `extra long 
        staple cotton' means cotton that--
                    ``(A) is produced from pure strain varieties of the 
                Barbadense species or any hybrid thereof, or other 
                similar types of extra long staple cotton, designated 
                by the Secretary, having characteristics needed for 
                various end uses for which United States upland cotton 
                is not suitable and grown in irrigated cotton-growing 
                regions of the United States designated by the 
                Secretary or other areas designated by the Secretary as 
                suitable for the production of the varieties or types; 
                and
                    ``(B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another type gin 
                for experimental purposes.
            ``(9) Loan commodity.--The term `loan commodity' means 
        wheat, corn, grain sorghum, barley, oats, upland cotton, extra 
        long staple cotton, rice, oilseeds, wool, honey, dry peas, 
        lentils, and chickpeas.
            ``(10) Oilseed.--The term `oilseed' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard seed, and, if designated by the Secretary, 
        other oilseeds.
            ``(11) Payment yield.--The term `payment yield' means a 
        payment yield determined under section 111(g).
            ``(12) Producer.--
                    ``(A) In general.--The term `producer' means an 
                owner, operator, landlord, tenant, or sharecropper 
                that--
                            ``(i) shares in the risk of producing a 
                        crop; and
                            ``(ii) is entitled to share in the crop 
                        available for marketing from the farm, or would 
                        have shared had the crop been produced.
                    ``(B) Hybrid seed.--In determining whether a grower 
                of hybrid seed is a producer, the Secretary shall not 
                take into consideration the existence of a hybrid seed 
                contract.
            ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(14) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
            ``(15) United states.--The term `United States', when used 
        in a geographical sense, means all of the States.''.

            Subtitle A--Direct and Counter-Cyclical Payments

SEC. 111. DIRECT AND COUNTER-CYCLICAL PAYMENTS.

    Sections 111 through 114 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7211 through 7214) are amended to read as 
follows:

``SEC. 111. AUTHORIZATION FOR CONTRACTS.

    ``(a) In General.--The Secretary shall offer to enter into a 
contract with an eligible owner or producer described in subsection (b) 
on a farm containing eligible cropland under which the eligible owner 
or producer will receive direct payments and counter-cyclical payments 
under sections 113 and 114, respectively.
    ``(b) Eligible Owners and Producers.--
            ``(1) In general.--Subject to paragraphs (2) and (3), an 
        owner or producer on a farm shall be eligible to enter into a 
        contract.
            ``(2) Tenants.--
                    ``(A) Share-rent tenants.--A producer on eligible 
                cropland that is a tenant with a share-rent lease of 
                the eligible cropland, regardless of the length of the 
                lease, shall be eligible to enter into a contract, if 
                the owner of the eligible cropland enters into the same 
                contract.
                    ``(B) Cash-rent tenants.--
                            ``(i) Contracts with long-term leases.--A 
                        producer on eligible cropland that cash rents 
                        the eligible cropland under a lease expiring on 
                        or after the termination of the contract shall 
                        be eligible to enter into a contract.
                            ``(ii) Contracts with short-term leases.--
                                    ``(I) In general.--A producer that 
                                cash rents the eligible cropland under 
                                a lease expiring before the termination 
                                of the contract shall be eligible to 
                                enter into a contract.
                                    ``(II) Owner's contract interest.--
                                The owner of the eligible cropland may 
                                also enter into the same contract.
                                    ``(III) Consent of owner.--If the 
                                producer elects to enroll less than 100 
                                percent of the eligible cropland in the 
                                contract, the consent of the owner 
                                shall be required for a valid contract.
            ``(3) Cash-rent owners.--
                    ``(A) In general.--An owner of eligible cropland 
                that cash rents the eligible cropland under a lease 
                term that expires before the end of 2006 crop year 
                shall be eligible to enter into a contract if the 
                tenant declines to enter into the contract.
                    ``(B) Contract payments.--In the case of an owner 
                covered by subparagraph (A), the Secretary shall not 
                make contract payments to the owner under the contract 
                until the lease held by the tenant terminates.
    ``(c) Compliance With Certain Requirements.--Under the terms of a 
contract, the owner or producer shall agree, in exchange for annual 
contract payments--
            ``(1) to comply with applicable highly erodible land 
        conservation requirements under subtitle B of title XII of the 
        Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
            ``(2) to comply with applicable wetland conservation 
        requirements under subtitle C of title XII of that Act (16 
        U.S.C. 3821 et seq.);
            ``(3) to comply with the planting flexibility requirements 
        of section 118; and
            ``(4) to use a quantity of land on the farm equal to the 
        contract acreage, for an agricultural or conserving use or 
        related activity, and not for a nonagricultural commercial or 
        industrial use, as determined by the Secretary.
    ``(d) Protection of Interests of Certain Producers.--
            ``(1) Tenants and sharecroppers.--In carrying out this 
        subtitle, the Secretary shall provide adequate safeguards to 
        protect the interests of tenants and sharecroppers.
            ``(2) Sharing of payments.--The Secretary shall provide for 
        the sharing of contract payments among the eligible producers 
        on a farm on a fair and equitable basis.
    ``(e) Eligible Cropland.--
            ``(1) In general.--Land shall be considered to be cropland 
        eligible for coverage under a contract only if the land--
                    ``(A) has with respect to a contract commodity--
                            ``(i) contract acreage attributable to the 
                        land; and
                            ``(ii) a payment yield; or
                    ``(B) was subject to a conservation reserve 
                contract under section 1231 of the Food Security Act of 
                1985 (16 U.S.C. 3831) with a term that expired, or was 
                voluntarily terminated, on or after the date of 
                enactment of this paragraph.
            ``(2) Quantity of eligible cropland covered by contract.--
        An eligible owner or producer may enroll as contract acreage 
        under this subtitle all or a portion of the eligible cropland 
        on the farm.
            ``(3) Voluntary reduction in contract acreage.--An eligible 
        owner or producer that enters into a contract may subsequently 
        reduce the quantity of contract acreage covered by the 
        contract.
    ``(f) Contract Acreage.--
            ``(1) In general.--Subject to subsection (h), for the 
        purpose of making direct payments and counter-cyclical payments 
        to eligible owners and producers on a farm, the Secretary shall 
        provide the eligible owners and producers on the farm with an 
        opportunity to elect 1 of the following methods as the method 
        by which the contract acreages for the 2002 through 2006 crops 
        of all contract commodities for a farm are determined:
                    ``(A) The 4-year average of acreage planted or 
                considered planted to a contract commodity for harvest, 
                grazing, haying, silage, or other similar purposes 
                during each of the 1998 through 2001 crop years.
                    ``(B) The total of--
                            ``(i) the contract acreage (as defined in 
                        section 102 (as in effect before the amendment 
                        made by section 101 of the Agriculture, 
                        Conservation, and Rural Enhancement Act of 
                        2002)) that would have been used by the 
                        Secretary to calculate the payment for fiscal 
                        year 2002 under such section 102 for the 
                        contract commodity on the farm; and
                            ``(ii) the 4-year average determined under 
                        subparagraph (A) for each oilseed produced on 
                        the farm.
                    ``(C) In the case of land described in section 
                112(a)(3), land with eligible base, as determined by 
                the Secretary.
            ``(2) Prevention of excess contract acreages.--
                    ``(A) Required reduction.--If the total of the 
                contract acreages for a farm, together with the acreage 
                described in subparagraph (C), exceeds the actual 
                cropland acreage of the farm, the Secretary shall 
                reduce the quantity of contract acreages for 1 or more 
                contract commodities for the farm or peanut acres as 
                necessary so that the total of the contract acreages 
                and acreage described in subparagraph (C) does not 
                exceed the actual cropland acreage of the farm.
                    ``(B) Selection of acres.--The Secretary shall give 
                the eligible owners and producers on the farm the 
                opportunity to select the contract acreages or peanut 
                acres against which the reduction will be made.
                    ``(C) Other acreage.--For purposes of subparagraph 
                (A), the Secretary shall include--
                            ``(i) any peanut acres for the farm under 
                        chapter 3 of subtitle D;
                            ``(ii) 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.); and
                            ``(iii) any other acreage on the farm 
                        enrolled in a voluntary Federal conservation 
                        program under which production of any 
                        agricultural commodity is prohibited.
                    ``(D) Double-cropped acreage.--In applying 
                subparagraph (A), the Secretary shall take into account 
                additional acreage as a result of an established 
                double-cropping history on a farm, as determined by the 
                Secretary.
    ``(g) Payment Yields.--
            ``(1) In general.--Subject to paragraph (2) and subsection 
        (h), an eligible owner or producer that has entered into a 
        contract under this subtitle may make a 1-time election to have 
        the payment yield for a payment for each of the 2002 through 
        2006 crops of all contract commodities for a farm be equal to--
                    ``(A) an amount that is the greater of--
                            ``(i) the average of the yield per 
                        harvested acre for the crop of the contract 
                        commodity for the farm for the 1998 through 
                        2001 crop years, excluding--
                                    ``(I) any crop year for which the 
                                producers on the farm did not plant the 
                                contract commodity; and
                                    ``(II) at the option of the 
                                producers on the farm, 1 additional 
                                crop year; or
                            ``(ii) the farm program payment yield 
                        described in subparagraph (B); or
                    ``(B) the farm program payment yield established 
                for the 1995 crop of a contract commodity under section 
                505 of the Agricultural Act of 1949 (7 U.S.C. 1465), 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.
            ``(2) Assigned yields.--In the case of a farm for which 
        yield records are unavailable for a contract commodity 
        (including land of a farm that is devoted to an oilseed under a 
        former conservation reserve contract described in section 
        112(a)(3)), the Secretary shall establish an appropriate 
        payment yield for the contract commodity on the farm taking in 
        consideration the payment yields applicable to the contract 
        commodity under paragraph (1) for similar farms in the area, 
        taking into consideration the yield election for the farm under 
        subsection (h).
    ``(h) Eligible Owner and Producer Election Options.--
            ``(1) In general.--In making elections under subsections 
        (f) and (g), eligible owners and producers on a farm shall 
        elect to have--
                    ``(A)(i) contract acreage for the farm determined 
                under subsection (f)(1)(A); and
                    ``(ii) payment yields determined under subsection 
                (g)(1)(A); or
                    ``(B)(i) contract acreage for the farm determined 
                under subsection (f)(1)(B); and
                    ``(ii) payment yields determined under--
                            ``(I) in the case of contract commodities 
                        other than oilseeds, subsection (g)(1)(B); and
                            ``(II) in the case of oilseeds, subsection 
                        (g)(1)(A).
            ``(2) Single election; time for election.--
                    ``(A) Single election.--The eligible owners and 
                producers on a farm shall have 1 opportunity to make 
                the election described in paragraph (1).
                    ``(B) Time for election.--Subject to section 
                112(a)(3), not later than 180 days after the date of 
                enactment of this subsection, the eligible owners and 
                producers on a farm shall notify the Secretary of the 
                election made by the eligible owners and producers on 
                the farm under paragraph (1).
            ``(3) Effect of failure to make election.--If the producers 
        on a farm fail to make the election under paragraph (1), or 
        fail to timely notify the Secretary of the selected option as 
        required by paragraph (2), the eligible owners and producers on 
        the farm shall be deemed to have made the election described in 
        paragraph (1)(B) for the purpose of determining the contract 
        acreages for all contract commodities on the farm.
            ``(4) Application of election to all contract 
        commodities.--The election made under paragraph (1) or deemed 
        to be made under paragraph (3) with respect to a farm shall 
        apply to all of the contract commodities produced on the farm.

``SEC. 112. ELEMENTS OF CONTRACTS.

    ``(a) Time for Contracting.--
            ``(1) Commencement.--To the extent practicable, the 
        Secretary shall commence entering into contracts not later than 
        45 days after the date of enactment of the Agriculture, 
        Conservation, and Rural Enhancement Act of 2002.
            ``(2) Deadline.--Except as provided in paragraph (3), the 
        Secretary may not enter into a contract after the date that is 
        180 days after the date of enactment of that Act.
            ``(3) Conservation reserve land.--
                    ``(A) In general.--At the beginning of each fiscal 
                year, the Secretary shall allow an eligible owner or 
                producer on a farm covered by a conservation reserve 
                contract entered into under section 1231 of the Food 
                Security Act of 1985 (16 U.S.C. 3831) that terminated 
                after the date specified in paragraph (2) to enter into 
                or expand a contract to cover the eligible cropland of 
                the farm that was subject to the former conservation 
                reserve contract.
                    ``(B) Election.--For the fiscal year and crop year 
                for which a contract acreage adjustment under 
                subparagraph (A) is first made, the eligible owners and 
                producers on the farm shall elect to receive--
                            ``(i) direct payments and counter-cyclical 
                        payments under sections 113 and 114, 
                        respectively, with respect to the acreage added 
                        to the farm under this paragraph; or
                            ``(ii) a prorated payment under the 
                        conservation reserve contract.
    ``(b) Duration of Contract.--
            ``(1) Beginning date.--The term of a contract shall begin 
        with--
                    ``(A) the 2002 crop of a contract commodity; or
                    ``(B) in the case of acreage that was subject to a 
                conservation reserve contract described in subsection 
                (a)(3), the date the contract was entered into or 
                expanded to cover the acreage.
            ``(2) Ending date.--Subject to sections 116 and 117, the 
        term of a contract shall extend through the 2006 crop, unless 
        earlier terminated by the eligible owners or producers on a 
        farm.

``SEC. 113. DIRECT PAYMENTS.

    ``(a) In General.--For each of the 2002 through 2006 fiscal years, 
the Secretary shall make direct payments available to eligible owners 
and producers on a farm that have entered into a contract to receive 
payments under this section.
    ``(b) Payment Amount.--The amount of a direct payment to be paid to 
the eligible owners and producers on a farm for a contract commodity 
for a fiscal year under this section shall be obtained by multiplying--
            ``(1) the payment rate for the contract commodity specified 
        in subsection (c);
            ``(2) the contract acreage attributable to the contract 
        commodity for the farm; and
            ``(3) the payment yield for the contract commodity for the 
        farm.
    ``(c) Payment Rate.--The payment rates used to make direct payments 
with respect to contract commodities for a fiscal year under this 
section are as follows:
            ``(1) Wheat.--In the case of wheat:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.450 per bushel.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.225 per bushel.
                    ``(C) For fiscal year 2006, $0.113 per bushel.
            ``(2) Corn.--In the case of corn:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.270 per bushel.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.135 per bushel.
                    ``(C) For fiscal year 2006, $0.068 per bushel.
            ``(3) Grain sorghum.--In the case of grain sorghum:
                    ``(A) For the 2002 fiscal year, $0.310 per bushel.
                    ``(B) For the 2003 fiscal year, $0.270 per bushel.
                    ``(C) For each of fiscal years 2004 and 2005, 
                $0.135 per bushel.
                    ``(D) For fiscal year 2006, $0.068 per bushel.
            ``(4) Barley.--In the case of barley:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.200 per bushel.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.100 per bushel.
                    ``(C) For fiscal year 2006, $0.050 per bushel.
            ``(5) Oats.--In the case of oats:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.050 per bushel.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.025 per bushel.
                    ``(C) For fiscal year 2006, $0.013 per bushel.
            ``(6) Upland cotton.--In the case of upland cotton:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.130 per pound.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.065 per pound.
                    ``(C) For fiscal year 2006, $0.0325 per pound.
            ``(7) Rice.--In the case of rice:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $2.450 per hundredweight.
                    ``(B) For each of fiscal years 2004 and 2006, $2.40 
                per hundredweight.
            ``(8) Soybeans.--In the case of soybeans:
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.550 per bushel.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.275 per bushel.
                    ``(C) For fiscal year 2006, $0.138 per bushel.
            ``(9) Oilseeds (other than soybeans).--In the case of 
        oilseeds (other than soybeans):
                    ``(A) For each of fiscal years 2002 and 2003, 
                $0.010 per pound.
                    ``(B) For each of fiscal years 2004 and 2005, 
                $0.005 per pound.
                    ``(C) For fiscal year 2006, $0.0025 per pound.
    ``(d) Time for Payments.--
            ``(1) Initial payment.--At the option of the eligible 
        owners and producers on a farm, the Secretary shall pay 50 
        percent of the direct payment for a crop of a contract 
        commodity for the eligible owners and producers on the farm on 
        or after December 1 of the fiscal year, as determined by the 
        Secretary.
            ``(2) Final payment.--The Secretary shall pay the final 
        amount of the direct payment that is payable to the eligible 
        owners and producers on a farm for a contract commodity under 
        subsection (a) (less the amount of any initial payment made to 
        the producers on the farm of the contract commodity under 
        paragraph (1)) not later than September 30 of the fiscal year, 
        as determined by the Secretary.

``SEC. 114. COUNTER-CYCLICAL PAYMENTS.

    ``(a) In General.--For each of the 2002 through 2006 crop years, 
the Secretary shall make counter-cyclical payments to eligible owners 
and producers on a farm of each contract commodity that have entered 
into a contract to receive payments under this section.
    ``(b) Payment Amount.--The amount of the payments made to eligible 
owners and producers on a farm for a crop of a contract commodity under 
this section shall equal the amount obtained by multiplying--
            ``(1) the payment rate for the contract commodity specified 
        in subsection (c);
            ``(2) the contract acreage attributable to the contract 
        commodity for the farm; and
            ``(3) the payment yield for the contract commodity for the 
        farm.
    ``(c) Payment Rates.--
            ``(1) In general.--The payment rate for a crop of a 
        contract commodity under subsection (b)(1) shall equal the 
        difference between--
                    ``(A) the income protection price for the contract 
                commodity established under paragraph (2); and
                    ``(B) the total of--
                            ``(i) the higher of--
                                    ``(I) the average price of the 
                                contract commodity during the first 5 
                                months of the marketing year of the 
                                contract commodity, as determined by 
                                the Secretary; and
                                    ``(II) the loan rate for the crop 
                                of the contract commodity under section 
                                132; and
                            ``(ii) the direct payment for the contract 
                        commodity under section 113 for the fiscal year 
                        that precedes the date of a payment under this 
                        section.
            ``(2) Income protection prices.--The income protection 
        prices for contract commodities under paragraph (1)(A) are as 
        follows:
                    ``(A) Wheat, $3.45 per bushel.
                    ``(B) Corn, $2.35 per bushel.
                    ``(C) Grain sorghum, $2.35 per bushel.
                    ``(D) Barley, $2.20 per bushel.
                    ``(E) Oats, $1.55 per bushel.
                    ``(F) Upland cotton, $0.680 per pound.
                    ``(G) Rice, $9.30 per hundredweight.
                    ``(H) Soybeans, $5.75 per bushel.
                    ``(I) Oilseeds (other than soybeans), $0.105 per 
                pound.
    ``(d) Time for Payment.--The Secretary shall make counter-cyclical 
payments for each of the 2002 through 2006 crop years not later than 
190 days after the beginning of marketing year for the crop of the 
contract commodity.''.

SEC. 112. VIOLATIONS OF CONTRACTS.

    Section 116 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7216) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by striking ``subsection (b)'' and inserting 
                ``subsections (b) and (e)''; and
                    (B) by striking ``section 111(a)'' and inserting 
                ``this subtitle'';
            (2) in subsection (b), by striking ``If'' and inserting 
        ``Except as provided in subsection (e), if''; and
            (3) by adding at the end the following:
    ``(e) Planting Flexibility.--In the case of a first violation of 
section 118(b) by an eligible owner or producer that has entered into a 
contract and that acted in good faith, in lieu of terminating the 
contract under subsection (a), the Secretary shall require a refund or 
reduce a future contract payment under subsection (b) in an amount that 
does not exceed twice the amount otherwise payable under the contract 
on the number of acres involved in the violation.''.

SEC. 113. PLANTING FLEXIBILITY.

    Section 118(b) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7218(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Limitations.--The planting of the following 
        agricultural commodities shall be prohibited on contract 
        acreage:
                    ``(A) Fruits.
                    ``(B) Vegetables (other than lentils, mung beans, 
                dry peas, and chickpeas).
                    ``(C) In the case of the 2003 and subsequent crops 
                of an agricultural commodity, wild rice.''; and
            (2) in paragraph (2)(C), by striking ``1991 through 1995'' 
        and inserting ``1996 through 2001''.

SEC. 114. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

    Subtitle B of title I of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7211 et seq.) is amended by adding at the 
end the following:

``SEC. 119. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

    ``(a) Definitions.--In this section:
            ``(1) Adjusted gross revenue.--The term `adjusted gross 
        revenue' means the adjusted gross income for all agricultural 
        enterprises of a producer in a year, excluding revenue earned 
        from nonagricultural sources, as determined by the Secretary--
                    ``(A) by taking into account gross receipts from 
                the sale of crops and livestock on all agricultural 
                enterprises of the producer, including insurance 
                indemnities resulting from losses in the agricultural 
                enterprises;
                    ``(B) by including all farm payments paid by the 
                Secretary for all agricultural enterprises of the 
                producer, including any marketing loan gains described 
                in section 1001(3)(A) of the Food Security Act of 1985 
                (7 U.S.C. 1308(3)(A));
                    ``(C) by deducting the cost or basis of livestock 
                or other items purchased for resale, such as feeder 
                livestock, on all agricultural enterprises of the 
                producer; and
                    ``(D) as represented on--
                            ``(i) a schedule F of the Federal income 
                        tax returns of the producer; or
                            ``(ii) a comparable tax form related to the 
                        agricultural enterprises of the producer, as 
                        approved by the Secretary.
            ``(2) Agricultural enterprise.--The term `agricultural 
        enterprise' means the production and marketing of all 
        agricultural commodities (including livestock but excluding 
        tobacco) on a farm or ranch.
            ``(3) Average adjusted gross revenue.--The term `average 
        adjusted gross revenue' means--
                    ``(A) the average of the adjusted gross revenue of 
                a producer for each of the preceding 5 taxable years; 
                or
                    ``(B) in the case of a beginning farmer or rancher 
                or other producer that does not have adjusted gross 
                revenue for each of the preceding 5 taxable years, the 
                estimated income of the producer that will be earned 
                from all agricultural enterprises for the applicable 
                year, as determined by the Secretary.
            ``(4) Producer.--The term `producer' means an individual or 
        entity, as determined by the Secretary for an applicable year, 
        that--
                    ``(A) shares in the risk of producing, or provides 
                a material contribution in producing, an agricultural 
                commodity for the applicable year;
                    ``(B) has a substantial beneficial interest in the 
                agricultural enterprise in which the agricultural 
                commodity is produced;
                    ``(C)(i) during each of the preceding 5 taxable 
                years, has filed--
                            ``(I) a schedule F of the Federal income 
                        tax returns; or
                            ``(II) a comparable tax form related to the 
                        agricultural enterprises of the individual or 
                        entity, as approved by the Secretary; or
                    ``(ii) is a beginning farmer or rancher or other 
                producer that does not have adjusted gross revenue for 
                each of the preceding 5 taxable years, as determined by 
                the Secretary; and
                    ``(D)(i) has earned at least $50,000 in average 
                adjusted gross revenue over the preceding 5 taxable 
                years;
                    ``(ii) is a limited resource farmer or rancher, as 
                determined by the Secretary; or
                    ``(iii) in the case of a beginning farmer or 
                rancher or other producer that does not have average 
                adjusted gross revenue for the preceding 5 taxable 
                years, has at least $50,000 in estimated income from 
                all agricultural enterprises for the applicable year, 
                as determined by the Secretary.
    ``(b) Establishment.--For each of fiscal years 2003 through 2005, 
the Secretary shall establish a pilot program in 3 States (as 
determined by the Secretary) under which a producer may establish a 
farm counter-cyclical savings account in the name of the producer in a 
bank or financial institution selected by the producer and approved by 
the Secretary.
    ``(c) Content of Account.--A farm counter-cyclical savings account 
shall consist of--
            ``(1) contributions of the producer; and
            ``(2) matching contributions of the Secretary.
    ``(d) Producer Contributions.--A producer may deposit such amounts 
in the account of the producer as the producer considers appropriate.
    ``(e) Matching Contributions.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the Secretary shall provide a matching contribution on the 
        amount deposited by the producer into the account.
            ``(2) Amount.--Subject to paragraph (3), the amount of a 
        matching contribution that the Secretary shall provide under 
        paragraph (1) shall be equal to 2 percent of the average 
        adjusted gross revenue of the producer.
            ``(3) Maximum contributions for individual producer.--The 
        amount of matching contributions that may be provided by the 
        Secretary for an individual producer under this subsection 
        shall not exceed $5,000 for any applicable fiscal year.
            ``(4) Maximum contributions for all producers in a State.--
        The total amount of matching contributions that may be provided 
        by the Secretary for all producers in a State under this 
        subsection shall not exceed $4,000,000 for each of fiscal years 
        2003 through 2005.
            ``(5) Date for matching contributions.--The Secretary shall 
        provide the matching contributions required for a producer 
        under paragraph (1) as of the date that a majority of the 
        covered commodities grown by the producer are harvested.
    ``(f) Interest.--Funds deposited into the account may earn interest 
at the commercial rates provided by the bank or financial institution 
in which the Account is established.
    ``(g) Use.--Funds credited to the account--
            ``(1) shall be available for withdrawal by a producer, in 
        accordance with subsection (h); and
            ``(2) may be used for purposes determined by the producer.
    ``(h) Withdrawal.--
            ``(1) In general.--Subject to paragraph (2), in any year, a 
        producer may withdraw funds from the account in an amount that 
        is equal to--
                    ``(A) 90 percent of average adjusted gross revenue 
                of the producer for the previous 5 years; minus
                    ``(B) the adjusted gross revenue of the producer in 
                that year.
            ``(2) Retirement.--A producer that ceases to be actively 
        engaged in farming, as determined by the Secretary--
                    ``(A) may withdraw the full balance from, and 
                close, the account; and
                    ``(B) may not establish another account.
    ``(i) Administration.--The Secretary shall administer this section 
through the Farm Service Agency and local, county, and area offices of 
the Department of Agriculture.''.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

SEC. 121. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
              PAYMENTS.

    (a) In General.--Sections 131(a) and 137 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7231(a), 7237) are amended 
by striking ``2002'' each place it appears and inserting ``2006''.
    (b) Upland Cotton.--Sections 134(e)(1), 136, and 136A(a) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7234(e)(1), 7236, 7236a(a)) are amended by striking ``2003'' each place 
it appears and inserting ``2007''.

SEC. 122. ELIGIBLE PRODUCTION.

    Section 131 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7231) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Eligible Production.--The producers on a farm shall be 
eligible for a marketing loan under subsection (a) for any quantity of 
a loan commodity produced on the farm.''.

SEC. 123. LOAN RATES.

    (a) In General.--Section 132 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7232) is amended to read as follows:

``SEC. 132. LOAN RATES.

    ``(a) In General.--Subject to subsection (b), the loan rate for a 
marketing assistance loan under section 131 for a loan commodity shall 
be--
            ``(1) in the case of wheat, $3.00 per bushel;
            ``(2) in the case of corn, $2.08 per bushel;
            ``(3) in the case of grain sorghum, $2.08 per bushel;
            ``(4) in the case of barley, $2.00 per bushel;
            ``(5) in the case of oats, $1.50 per bushel;
            ``(6) in the case of upland cotton, $0.55 per pound;
            ``(7) in the case of extra long staple cotton, $0.7965 per 
        pound;
            ``(8) in the case of rice, $6.50 per hundredweight;
            ``(9) in the case of soybeans, $5.20 per bushel;
            ``(10) in the case of oilseeds (other than soybeans), 
        $0.095 per pound;
            ``(11) in the case of graded wool, $1.00 per pound;
            ``(12) in the case of nongraded wool (including unshorn 
        pelts), $0.40 per pound;
            ``(13) in the case of honey, $0.60 per pound;
            ``(14) in the case of dry peas, $6.78 per hundredweight;
            ``(15) in the case of lentils, $12.79 per hundredweight;
            ``(16) in the case of large chickpeas, $17.44 per 
        hundredweight; and
            ``(17) in the case of small chickpeas, $8.10 per 
        hundredweight.
    ``(b) Adjustments.--
            ``(1) In general.--The Secretary may make appropriate 
        adjustments in the loan rates for any loan commodity for 
        differences in grade, type, quality, location, and other 
        factors.
            ``(2) Manner.--The adjustments under this subsection shall, 
        to the maximum extent practicable, be made in such manner that 
        the average loan rate for the loan commodity will, on the basis 
        of the anticipated incidence of the factors described in 
        paragraph (1), be equal to the loan rate provided under this 
        section.''.
    (b) Conforming Amendment.--Section 162 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7282) is repealed.

SEC. 124. TERM OF LOANS.

    Section 133 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7233) is amended to read as follows:

``SEC. 133. TERM OF LOANS.

    ``In the case of each loan commodity, a marketing loan under 
section 131 shall have a term of 9 months beginning on the first day of 
the first month after the month in which the loan is made.''.

SEC. 125. REPAYMENT OF LOANS.

    Section 134(a) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7234(a)) is amended--
            (1) by striking ``wheat, corn, grain sorghum, barley, oats, 
        and oilseeds'' and inserting ``a loan commodity (other than 
        upland cotton, rice, and extra long staple cotton)''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries.''.

SEC. 126. LOAN DEFICIENCY PAYMENTS.

    Section 135 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7235) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--The Secretary may make loan deficiency payments 
available to producers on a farm that, although eligible to obtain a 
marketing assistance loan under section 131 with respect to a loan 
commodity, agree to forgo obtaining the loan for the loan commodity in 
return for payments under this section.''; and
            (2) by striking subsections (e) and (f) and inserting the 
        following:
    ``(e) Beneficial Interest.--
            ``(1) In general.--A producer shall be eligible for a 
        payment for a loan commodity under this section only if the 
        producer has a beneficial interest in the loan commodity, as 
        determined by the Secretary.
            ``(2) Application.--The Secretary shall make a payment 
        under this section to the producers on a farm with respect to a 
        quantity of a loan commodity as of the earlier of--
                    ``(A) the date on which the producers on the farm 
                marketed or otherwise lost beneficial interest in the 
                loan commodity, as determined by the Secretary; or
                    ``(B) the date the producers on the farm request 
                the payment.
            ``(3) 2001 crop.--Notwithstanding paragraphs (1) and (2), 
        effective for the 2001 crop only, if a producer eligible for a 
        payment under this section loses beneficial interest in the 
        covered commodity, the producer shall be eligible for the 
        payment determined as of the date the producer lost beneficial 
        interest in the covered commodity, as determined by the 
        Secretary.''.

SEC. 127. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    (a) In General.--Subtitle C of title I of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7231 et seq.) is amended 
by adding at the end the following:

``SEC. 138. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    ``(a) In General.--For each crop of wheat, grain sorghum, barley, 
and oats, in the case of the producers on a farm that would be eligible 
for a loan deficiency payment under section 135 for wheat, grain 
sorghum, barley, or oats, but that elects to use acreage planted to the 
wheat, grain sorghum, barley, or oats for the grazing of livestock, the 
Secretary shall make a payment to the producers on the farm under this 
section if the producers on the farm enter into an agreement with the 
Secretary to forgo any other harvesting of the wheat, grain sorghum, 
barley, or oats on the acreage.
    ``(b) Payment Amount.--The amount of a payment made to the 
producers on a farm under this section shall be equal to the amount 
obtained by multiplying--
            ``(1) the loan deficiency payment rate determined under 
        section 135(c) in effect, as of the date of the agreement, for 
        the county in which the farm is located; by
            ``(2) the payment quantity obtained by multiplying--
                    ``(A) the quantity of the grazed acreage on the 
                farm with respect to which the producers on the farm 
                elect to forgo harvesting of wheat, grain sorghum, 
                barley, or oats; and
                    ``(B) the payment yield for that contract commodity 
                on the farm.
    ``(c) Time, Manner, and Availability of Payment.--
            ``(1) Time and manner.--A payment under this section shall 
        be made at the same time and in the same manner as loan 
        deficiency payments are made under section 135.
            ``(2) Availability.--The Secretary shall establish an 
        availability period for the payment authorized by this section 
        that is consistent with the availability period for wheat, 
        grain sorghum, barley, and oats established by the Secretary 
        for marketing assistance loans authorized by this subtitle.
    ``(d) Prohibition on Crop Insurance or Noninsured Crop 
Assistance.--The producers on a farm shall not be eligible for 
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
or noninsured crop assistance under section 196 with respect to a crop 
of wheat, grain sorghum, barley, or oats planted on acreage that the 
producers on the farm elect, in the agreement required by subsection 
(a), to use for the grazing of livestock in lieu of any other 
harvesting of the crop.''.

SEC. 128. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    Section 136(a) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7236(a)) is amended by adding at the end the 
following:
            ``(4) Application of threshold.--During the period 
        beginning on the date of this paragraph and ending on July 31, 
        2003, the Secretary shall make the calculations under 
        paragraphs (1)(A) and (2) and subsection (b)(1)(B) without 
        regard to the 1.25 cent threshold provided under those 
        paragraphs and subsection.''.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 131. MILK PRICE SUPPORT PROGRAM.

    Section 141 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7251) (as amended by section 772(a) of Public Law 
107-76) is amended in subsections (b)(5) and (h) by striking ``May 31, 
2002'' each place it appears and inserting ``December 31, 2006''.

SEC. 132. NATIONAL DAIRY PROGRAM.

    The Federal Agriculture Improvement and Reform Act of 1996 (as 
amended by section 772(b) of Public Law 107-76) is amended by inserting 
after section 141 (7 U.S.C. 7251) the following:

``SEC. 142. NATIONAL DAIRY PROGRAM.

    ``(a) Dairy Market Loss Assistance Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Average price of milk.--The term `average 
                price of milk' means the blending of the prices of milk 
                for use as fluid milk and in cheese, ice cream, butter, 
                and nonfat dry milk in the marketing area where the 
                milk was marketed, as determined by the Secretary.
                    ``(B) Producer.--The term `producer' means an 
                individual or entity that directly or indirectly (as 
                determined by the Secretary) shares in the risk of 
                producing milk.
            ``(2) Program.--Subject to paragraph (8), the Secretary 
        shall provide market loss assistance payments to producers on a 
        dairy farm with respect to the production of milk in a State 
        other than a participating State (as defined in subsection 
        (b)(1)) that is marketed during the period beginning on 
        December 1, 2001, and ending on September 30, 2005.
            ``(3) Amount.--Subject to paragraph (8), payments to a 
        producer under this subsection shall be calculated by 
        multiplying--
                    ``(A) the payment quantity for the producer during 
                the applicable quarter established under paragraph (4); 
                by
                    ``(B) the payment rate established under paragraph 
                (5).
            ``(4) Payment quantity.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                payment quantity for a producer during the applicable 
                quarter under this subsection shall be equal to the 
                quantity of milk produced and marketed by the producer 
                during the quarter.
                    ``(B) Limitation.--The payment quantity for a 
                producer during the applicable fiscal year under this 
                subsection shall not exceed the milk marketing base for 
                the producer established under subsection (c).
            ``(5) Payment rate.--The payment rate for a payment under 
        this subsection shall be calculated by multiplying (as 
        determined by the Secretary)--
                    ``(A) 40 percent; by
                    ``(B) the amount by which--
                            ``(i) the average price of milk during the 
                        applicable quarter; is less than
                            ``(ii) the average price of milk for the 
                        same quarter during each of the previous 5 
                        years.
            ``(6) Reporting of production.--The Secretary may require 
        producers that receive payments under this subsection to report 
        the quantity of milk produced and marketed by the producer on 
        the dairy farm of the producer, in a manner determined by the 
        Secretary.
            ``(7) Timing of payments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), payments made under this subsection 
                shall be made on a quarterly basis.
                    ``(B) Payments for fiscal year 2002.--Payments 
                under this subsection for fiscal year 2002 shall not be 
                made before October 1, 2002.
            ``(8) Funding.--The Secretary shall use not more than 
        $1,500,000,000 of funds of the Commodity Credit Corporation to 
        carry out this subsection.
    ``(b) Northeast Dairy Market Loss Payments.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Class i milk.--The term `Class I milk' means 
                milk (including milk components) classified as Class I 
                milk under a Federal milk marketing order.
                    ``(B) Eligible production.--The term `eligible 
                production' means milk produced by a producer in a 
                participating State.
                    ``(C) 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.
                    ``(D) Participating state.--The term `participating 
                State' means Connecticut, Delaware, Maine, Maryland, 
                Massachusetts, New Hampshire, New Jersey, New York, 
                Pennsylvania, Rhode Island, Vermont, and West Virginia.
                    ``(E) Producer.--The term `producer' means an 
                individual or entity that directly or indirectly (as 
                determined by the Secretary)--
                            ``(i) shares in the risk of producing milk; 
                        and
                            ``(ii) 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.
            ``(2) Payments.--Subject to paragraph (9), 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 in exchange for 
        compliance on the farm with--
                    ``(A) applicable highly erodible land conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.); and
                    ``(B) applicable wetland conservation requirements 
                under subtitle C of title XII of that Act (16 U.S.C. 
                3821 et seq.).
            ``(3) Amount.--Payments to a producer under this subsection 
        shall be calculated by multiplying (as determined by the 
        Secretary)--
                    ``(A) the payment quantity for the producer during 
                the applicable month established under paragraph (4);
                    ``(B) the amount equal to--
                            ``(i) $16.94 per hundredweight; less
                            ``(ii) the Class I milk price per 
                        hundredweight in Boston under the applicable 
                        Federal milk marketing order; by
                    ``(C) 45 percent.
            ``(4) Payment quantity.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                payment quantity for a producer during the applicable 
                month under this subsection shall be equal to the 
                quantity of milk produced and marketed by the producer 
                during the month.
                    ``(B) Limitation.--The payment quantity for a 
                producer during the applicable fiscal year under this 
                subsection shall not exceed the milk marketing base for 
                the producer established under subsection (c).
            ``(5) Payments.--A payment under a contract under this 
        subsection 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.
            ``(6) Signup.--The Secretary shall offer to enter into 
        contracts under this subsection during the period beginning on 
        December 1, 2001, and ending on September 30, 2005.
            ``(7) Duration of contract.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and paragraph (8), any contract 
                entered into by producers on a dairy farm under this 
                subsection 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.
                    ``(B) Violations.--If a producer violates the 
                contract, the Secretary may--
                            ``(i) terminate the contract and allow the 
                        producer to retain any payments received under 
                        the contract; or
                            ``(ii) 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.
            ``(8) Transition rule.--In addition to any payment that is 
        otherwise available under this subsection, if the producers on 
        a dairy farm enter into a contract under this subsection by 
        March 1, 2002, the Secretary shall make a payment under this 
        subsection on the quantity of eligible production of the 
        producer marketed during the period beginning on December 1, 
        2001, and ending on January 1, 2002.
            ``(9) Funding.--The Secretary shall use not more than 
        $500,000,000 of funds of the Commodity Credit Corporation to 
        carry out this subsection.
    ``(c) Milk Marketing Base.--
            ``(1) Definition of new producer.--In this subsection, the 
        term `new producer' means a producer of milk that did not have 
        an interest in the production of milk during any of 1999 
        through 2001 fiscal years.
            ``(2) Established producers.--In the case of a producer of 
        milk other than a new producer, the milk marketing base of a 
        producer for a fiscal year under this section shall be equal to 
        the lesser of--
                    ``(A) the average quantity of milk marketed for 
                commercial use in which the producer has had a direct 
                or indirect interest during each of the 1999 through 
                2001 fiscal years; or
                    ``(B) 8,000,000 pounds.
            ``(3) New producers.--In the case of a new producer, the 
        milk marketing base of the new producer under this section 
        shall be equal to--
                    ``(A) during each of the first 3 fiscal years of 
                milk production by the new producer, 1,500,000 pounds; 
                and
                    ``(B) during each subsequent year of milk 
                production, the lesser of--
                            ``(i) the average quantity of milk marketed 
                        for commercial use in which the producer has 
                        had a direct or indirect interest during the 
                        first 3 years of milk production by the new 
                        producer; or
                            ``(ii) 8,000,000 pounds.
            ``(4) Adjustments.--The Secretary may provide for the 
        adjustment of any milk marketing base of a producer under this 
        subsection--
                    ``(A) if the production of milk used to determine 
                the milk marketing base of the producer has been 
                adversely affected by damaging weather or a related 
                condition (as determined by the Secretary); or
                    ``(B) if the adjustment is necessary to provide 
                fair and equitable treatment to tenants and 
                sharecroppers.
            ``(5) Transfers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a producer that is assigned a milk 
                marketing base under this subsection may not transfer 
                the base to any person.
                    ``(B) Family members.--A producer that is assigned 
                a milk marketing base under this subsection may 
                irrevocably transfer all or part of the base to a 
                family member of the producer.
            ``(6) Schemes or devices.--If the Secretary determines that 
        any producer has adopted a scheme or device to increase the 
        milk marketing base of the producer under this subsection, the 
        producer shall become ineligible for any milk marketing base 
        under this subsection.''.

SEC. 133. 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 ``2006''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``1995'' and inserting ``2006''.

SEC. 134. 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. 135. 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. 136. 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, including a 
        dairy product 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''; and
            (4) by inserting after paragraph (5) (as so designated) the 
        following:
            ``(6) Importers.--
                    ``(A) Representation.--The Secretary shall appoint 
                not more than 2 members who represent importers of 
                dairy products and are subject to assessments under the 
                order, to reflect the proportion of domestic production 
                and imports supplying the United States market, as 
                determined by the Secretary on the basis of the average 
                volume of domestic production of dairy products in 
                proportion to the average volume of imports of dairy 
                products in the United States during the immediately 
                preceding 3 years.
                    ``(B) 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.''.
    (c) 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; and
            (3) 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.--
                            ``(i) In general.--The assessment on 
                        imported dairy products shall be--
                                    ``(I) paid by the importer to 
                                Customs at the time of the entry of the 
                                products into the United States; and
                                    ``(II) remitted by Customs to the 
                                Board.
                            ``(ii) Time of entry.--For purposes of this 
                        subparagraph, entry of the products into the 
                        United States shall be considered to have 
                        occurred when a dairy product is released from 
                        custody of Customs and introduced into the 
                        stream of commerce within the United States.
                            ``(iii) Importers.--For purposes of this 
                        subparagraph, an importer includes--
                                    ``(I) a person that holds title to 
                                a dairy product produced outside the 
                                United States immediately on release by 
                                Customs; and
                                    ``(II) a person that acts on behalf 
                                of other persons, as an agent, broker, 
                                or consignee, to secure the release of 
                                a dairy product from Customs and 
                                introduce the released dairy product 
                                into the stream of commerce.
                    ``(C) Rate.--The rate of assessment on imported 
                dairy products shall be determined in the same manner 
                as the rate of assessment per hundredweight or the 
                equivalent of milk.
                    ``(D) Value of products.--For the purpose of 
                determining the assessment on imported dairy products 
                under subparagraph (C), the value to be placed on 
                imported dairy products shall be established by the 
                Secretary in a fair and equitable manner.
                    ``(E) Use of assessments on imported dairy 
                products.--Assessments collected on imported dairy 
                products shall not be used for foreign market promotion 
                of United States dairy products.''.
    (d) 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''.
    (e) Importer Eligibility To Vote in Referendum.--Section 116(b) of 
the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4507(b)) is 
amended--
            (1) in the first sentence, by inserting ``and importers'' 
        after ``producers'' each place it appears; and
            (2) in the second sentence, by inserting after ``commercial 
        use'' the following: ``and importers voting in the referendum 
        (that have been engaged in the importation of dairy products 
        into the United States during the applicable period, as 
        determined by the Secretary)''.
    (f) Conforming Amendments.--Section 110(b) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended--
            (1) in the first sentence--
                    (A) by inserting after ``commercial use'' the 
                following: ``and on imported dairy products''; and
                    (B) by striking ``products produced in the United 
                States.'' and inserting ``products.''; and
            (2) in the second sentence, by inserting after ``produce 
        milk'' the following: ``or the right of any person to import 
        dairy products''.

SEC. 137. DAIRY STUDIES.

    (a) In General.--The Secretary of Agriculture shall conduct--
            (1) a study of the effects of terminating all Federal 
        programs relating to price support and supply management for 
        milk and granting the consent of Congress to cooperative 
        efforts by States to manage milk prices and supply; and
            (2) 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.
    (b) Reports.--Not later than September 30, 2002, the Secretary 
shall submit to the Committee on Agriculture of House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry a report describing the results of each of the studies 
required under subsection (a).

                            CHAPTER 2--SUGAR

SEC. 141. SUGAR PROGRAM.

    (a) Loan Rate Adjustments.--Section 156(c) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(c)) is 
amended--
            (1) by striking ``Reduction in Loan Rates'' and inserting 
        ``Loan Rate Adjustments''; and
            (2) in paragraph (1)--
                    (A) by striking ``Reduction required'' and 
                inserting ``In general''; and
                    (B) by striking ``shall'' and inserting ``may''.
    (b) Loan Type; Processor Assurances.--Section 156(e) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(e)) is 
amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(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.
                    ``(C) Bankruptcy or insolvency of processors.--
                            ``(i) In general.--The Secretary shall use 
                        funds of the Commodity Credit Corporation to 
                        pay a producer of sugar beets or sugarcane loan 
                        benefits described in clause (ii) if--
                                    ``(I) a processor that has entered 
                                into a contract with the producer has 
                                filed for bankruptcy protection or is 
                                otherwise insolvent;
                                    ``(II) the assurances under 
                                subparagraph (A) are not adequate to 
                                ensure compliance with subparagraph 
                                (A), as determined by the Secretary;
                                    ``(III) the producer demands 
                                payments of loan benefits required 
                                under this section from the processor; 
                                and
                                    ``(IV) the Secretary determines 
                                that the processor is unable to provide 
                                the loan benefits required under this 
                                section.
                            ``(ii) Amount.--The amount of loan benefits 
                        provided to a producer under clause (i) shall 
                        be equal to--
                                    ``(I) the maximum amount of loan 
                                benefits the producer would have been 
                                entitled to receive under this section 
                                during the 30-day period beginning on 
                                the final settlement date provided for 
                                in the contract between the producer 
                                and processor; less
                                    ``(II) any such benefits received 
                                by the producer from the processor.
                            ``(iii) Administration.--On payment to a 
                        producer under clause (i), the Secretary 
                        shall--
                                    ``(I) be subrogated to all claims 
                                of the producer against the processor 
                                and other persons responsible for 
                                nonpayment; and
                                    ``(II) have authority to pursue 
                                such claims as are necessary to recover 
                                the benefits not paid to the producer 
                                by the processor.''; and
            (2) by adding at the end the following:
            ``(3) Administration.--The Secretary may not impose or 
        enforce any prenotification or similar administrative 
        requirement that has the effect of preventing a processor from 
        electing to forfeit the loan collateral on the maturity of the 
        loan.''.
    (c) Termination of Marketing Assessment.--Effective October 1, 
2001, section 156 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7272) is amended by striking subsection (f).
    (d) Termination of Forfeiture Penalty.--Section 156 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is 
amended by striking subsection (g).
    (e) In-Process Sugar.--Section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as amended by 
subsections (c) and (d)) is amended by inserting after subsection (e) 
the following:
    ``(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.''.
    (f) Administration of Program.--Section 156 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as 
amended by subsection (e)) is amended by inserting after subsection (f) 
the following:
    ``(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.''.
    (g) Information Reporting.--Section 156(h) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(h)) is 
amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(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 
                paragraph (1) 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.''; and
            (3) in paragraph (5) (as redesignated by paragraph (1)), by 
        striking ``paragraph (1)'' and inserting ``this subsection''.
    (h) Substitutability of Sugar.--Section 156 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is 
amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(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 Foreign Agricultural Service of the Department of 
Agriculture, 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 under those 
programs.''.
    (i) Crops.--Subsection (j) of section 156 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) (as 
redesignated by subsection (h)(1)) is amended--
            (1) by striking ``(other than subsection (f))''; and
            (2) by striking ``2002'' and inserting ``2006''.
    (j) 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. 142. STORAGE FACILITY LOANS.

    Chapter 2 of subtitle D of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7271 et seq.) is amended by adding at the 
end the following:

``SEC. 157. STORAGE FACILITY LOANS.

    ``(a) In General.--Notwithstanding any other provision of law and 
as soon as practicable after the date of enactment of this section, 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 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 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. 143. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    (a) Information Reporting.--Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.
    (b) Estimates.--Section 359b of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359bb) is amended--
            (1) in the section heading--
                    (A) by inserting ``flexible'' before ``marketing''; 
                and
                    (B) by striking ``and crystalline fructose'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Before'' and inserting 
                        ``Not later than August 1 before'';
                            (ii) by striking ``1992 through 1998'' and 
                        inserting ``2002 through 2006'';
                            (iii) in subparagraph (A), by striking 
                        ``(other than sugar'' and all that follows 
                        through ``stocks'';
                            (iv) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (E), respectively;
                            (v) by inserting after subparagraph (A) the 
                        following:
                    ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;'';
                            (vi) in subparagraph (C) (as so 
                        redesignated)--
                                    (I) by striking ``or'' and all that 
                                follows through ``beets''; and
                                    (II) by striking ``and'' following 
                                the semicolon;
                            (vii) by inserting after subparagraph (C) 
                        (as so redesignated) the following:
                    ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane and sugar 
                beets; and''; and
                            (viii) in subparagraph (E) (as so 
                        redesignated)--
                                    (I) by striking ``quantity of 
                                sugar'' and inserting ``quantity of 
                                sugars, syrups, and molasses'';
                                    (II) by inserting ``human'' after 
                                ``imported for'' the first place it 
                                appears;
                                    (III) by inserting after 
                                ``consumption'' the first place it 
                                appears the following: ``or to be used 
                                for the extraction of sugar for human 
                                consumption'';
                                    (IV) by striking ``year'' and 
                                inserting ``year, whether such articles 
                                are under a tariff-rate quota or are in 
                                excess or outside of a tariff-rate 
                                quota''; and
                                    (V) by striking ``(other than 
                                sugar'' and all that follows through 
                                ``carry-in stocks'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3);
                    (C) by inserting after paragraph (1) the following:
            ``(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.''; and
                    (D) in paragraph (3) (as so redesignated)--
                            (i) in the paragraph heading, by striking 
                        ``Quarterly reestimates'' and inserting 
                        ``Reestimates''; and
                            (ii) by inserting ``as necessary, but'' 
                        after ``a fiscal year'';
            (3) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--By the beginning of each fiscal year, 
        the Secretary shall establish for that fiscal 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).''; and
                    (B) in paragraph (2), by striking ``or crystalline 
                fructose'';
            (4) by striking subsection (c);
            (5) by redesignating subsection (d) as subsection (c); and
            (6) in subsection (c) (as so redesignated)--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (2) (as so redesignated)--
                            (i) by striking ``or manufacturer'' and all 
                        that follows through ``(2)''; and
                            (ii) by striking ``or crystalline 
                        fructose''.
    (c) Establishment.--Section 359c of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359cc) is amended--
            (1) in the section heading, by inserting ``flexible'' after 
        ``of'';
            (2) in subsection (a), by inserting ``flexible'' after 
        ``establish'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``1,250,000'' 
                and inserting ``1,532,000''; and
                    (B) in paragraph (2), by striking ``to the maximum 
                extent practicable'';
            (4) by striking subsection (c) and inserting the following:
    ``(c) Marketing Allotment for Sugar Derived from Sugar Beets and 
Sugar Derived from Sugarcane.--The overall allotment quantity for the 
fiscal year shall be allotted between--
            ``(1) sugar derived from sugar beets by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by 54.35 percent; and
            ``(2) sugar derived from sugarcane by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by 45.65 percent.'';
            (5) by striking subsection (d) and inserting the following:
    ``(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.'';
            (6) by striking subsection (e);
            (7) by redesignating subsection (f) as subsection (e);
            (8) in subsection (e) (as so redesignated)--
                    (A) by striking ``The allotment'' and inserting the 
                following:
            ``(1) In general.--The allotment'';
                    (B) in paragraph (1) (as so redesignated)--
                            (i) by striking ``the 5'' and inserting 
                        ``the'';
                            (ii) by inserting after ``sugarcane is 
                        produced,'' the following: ``after a hearing 
                        (if requested by the affected sugarcane 
                        processors and growers) and on such notice as 
                        the Secretary by regulation may prescribe,''; 
                        and
                            (iii) by striking ``on the basis of past 
                        marketings'' and all that follows through 
                        ``allotments'' and inserting ``as provided in 
                        this subsection and section 
                        359d(a)(2)(A)(iv)''; and
                    (C) by inserting after paragraph (1) (as so 
                designated) the following:
            ``(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.'';
            (9) by inserting after subsection (e) (as so redesignated) 
        the following:
    ``(f) Filling Cane Sugar Allotments.--Except as provided in section 
359e, a State cane sugar allotment established under subsection (e) for 
a fiscal year may be filled only with sugar processed from sugarcane 
grown in the State covered by the allotment.'';
            (10) in subsection (g)--
                    (A) in paragraph (1), by striking ``359b(a)(2)--'' 
                and all that follows through the comma at the end of 
                subparagraph (C) and inserting ``359b(a)(3), adjust 
                upward or downward marketing allotments in a fair and 
                equitable manner'';
                    (B) in paragraph (2), by striking ``359f(b)'' and 
                inserting ``359f(c)''; and
                    (C) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``Reductions'' and inserting ``Carry-over of 
                        reductions'';
                            (ii) by inserting after ``this subsection, 
                        if'' the following: ``at the time of the 
                        reduction'';
                            (iii) by striking ``price support'' and 
                        inserting ``nonrecourse'';
                            (iv) by striking ``206'' and all that 
                        follows through ``the allotment'' and inserting 
                        ``156 of the Federal Agriculture Improvement 
                        and Reform Act of 1996 (7 U.S.C. 7272),''; and
                            (v) by striking ``, if any,''; and
            (11) by striking subsection (h) and inserting the 
        following:
    ``(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), 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).''.
    (d) Allocation.--Section 359d(a)(2) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                            ``(i) In general.--The Secretary'';
                    (B) in the first sentence of clause (i) (as so 
                designated)--
                            (i) by striking ``interested parties'' and 
                        inserting ``the affected sugarcane processors 
                        and growers''; and
                            (ii) by striking ``by taking'' and all that 
                        follows through ``allotment allocated.'' and 
                        inserting ``under this subparagraph.''; and
                    (C) by inserting after clause (i) the following:
                            ``(ii) Multiple processor states.--Except 
                        as provided in clauses (iii) and (iv), 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.
                            ``(iii) Talisman processing facility.--In 
                        the case of allotments under clause (ii) 
                        attributable to the operations of the Talisman 
                        processing facility before the date of 
                        enactment of this clause, the Secretary shall 
                        allocate the allotment among processors in the 
                        State under clause (i) in accordance with the 
                        agreements of March 25 and 26, 1999, between 
                        the affected processors and the Secretary of 
                        the Interior.
                            ``(iv) 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.
                            ``(v) New entrants.--
                                    ``(I) In general.--Notwithstanding 
                                clauses (ii) and (iv), the Secretary, 
                                on application of any processor that 
                                begins processing sugarcane on or after 
                                the date of enactment of this clause, 
                                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 clause 
                                shall not exceed--
                                            ``(aa) in the case of the 
                                        first fiscal year of operation 
                                        of a new processor, 50,000 
                                        short tons (raw value); and
                                            ``(bb) in the case of each 
                                        subsequent fiscal year of 
                                        operation of the new processor, 
                                        a quantity established by the 
                                        Secretary in accordance with 
                                        this clause and the criteria 
                                        described in clause (ii) or 
                                        (iii), as applicable.
                                    ``(IV) New entrant states.--
                                            ``(aa) In general.--
                                        Notwithstanding subparagraphs 
                                        (A) and (C) of section 
                                        359c(e)(3), to accommodate an 
                                        allocation under subclause (I) 
                                        to a new processor located in a 
                                        new entrant mainland State, the 
                                        Secretary shall provide the new 
                                        entrant mainland State with an 
                                        allotment.
                                            ``(bb) 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 clause, 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 clause 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 clause may be applicable to any 
                                individual sugar processing facility.
                            ``(vi) 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 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.''; and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Beet sugar.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph 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 subparagraph.
                            ``(ii) Quantity.--The quantity of an 
                        allocation made for a beet sugar processor for 
                        a crop year under clause (i) 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 clauses (iii) and (iv)) bears 
                        to the total of the adjusted weighted average 
                        quantities of beet sugar produced by all 
                        processors (as so determined).
                            ``(iii) Weighted average quantity.--Subject 
                        to clause (iv), 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.
                            ``(iv) 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 clause 
                                (iii) if the Secretary determines that, 
                                during any such crop year, the 
                                processor--
                                            ``(aa) opened or closed a 
                                        sugar beet processing factory;
                                            ``(bb) constructed a 
                                        molasses desugarization 
                                        facility; or
                                            ``(cc) 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 clause (iii) shall be--
                                            ``(aa) 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 clause) 
                                        for each sugar beet processing 
                                        factory that is opened by the 
                                        processor;
                                            ``(bb) 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 clause) 
                                        for each sugar beet processing 
                                        factory that is closed by the 
                                        processor;
                                            ``(cc) 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 clause) for each 
                                        molasses desugarization 
                                        facility that is constructed by 
                                        the processor; and
                                            ``(dd) 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 clause).
                            ``(v) 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.
                            ``(vi) 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 clause (v).
                            ``(vii) Sale of factories of a processor to 
                        another processor.--
                                    ``(I) In general.--Subject to 
                                clauses (v) and (vi), 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 fiscal 
                                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 
                                subclause (I) shall apply--
                                            ``(aa) during the remainder 
                                        of the fiscal year during which 
                                        the sale described in subclause 
                                        (I) occurs (referred to in this 
                                        clause as the `initial fiscal 
                                        year'); and
                                            ``(bb) each subsequent 
                                        fiscal year (referred in this 
                                        clause as a `subsequent fiscal 
                                        year'), subject to subclause 
                                        (III).
                                    ``(III) Subsequent fiscal years.--
                                            ``(aa) In general.--The 
                                        assignment of the allocation 
                                        under subclause (I) shall apply 
                                        during each subsequent fiscal 
                                        year unless the acquired 
                                        factory or factories continue 
                                        in operation for less than the 
                                        initial fiscal year and the 
                                        first subsequent fiscal year.
                                            ``(bb) Reassignment.--If 
                                        the acquired factory or 
                                        factories do not continue in 
                                        operation for the complete 
                                        initial fiscal year and the 
                                        first subsequent fiscal 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 by the 
                                purchased factory or factories for the 
                                initial fiscal year or a subsequent 
                                fiscal year, the remainder of the 
                                transferred allocation may be filled by 
                                beet sugar produced by the buyer from 
                                other factories of the buyer.
                            ``(viii) New entrants starting production 
                        or reopening factories.--If an individual or 
                        entity that does not have an allocation of beet 
                        sugar under this part (referred to in this 
                        subparagraph as a `new entrant') starts 
                        processing sugar beets after the date of 
                        enactment of this clause, or acquires and 
                        reopens a factory that produced beet sugar 
                        during the period of the 1998 through 2000 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.
                            ``(ix) 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.''.
    (e) Reassignment.--Section 359e(b) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking the ``and'' 
                after the semicolon;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) if after the reassignments, the deficit 
                cannot be completely eliminated, the Secretary shall 
                reassign the estimated quantity of the deficit to the 
                sale of any inventories of sugar held by the Commodity 
                Credit Corporation; and''; and
                    (D) in subparagraph (D) (as so redesignated), by 
                inserting ``and sales'' after ``reassignments''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking the ``and'' 
                after the semicolon;
                    (B) in subparagraph (B), by striking ``reassign the 
                remainder to imports.'' and inserting ``use the 
                estimated quantity of the deficit for the sale of any 
                inventories of sugar held by the Commodity Credit 
                Corporation; and''; and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) if after the reassignments and sales, the 
                deficit cannot be completely eliminated, the Secretary 
                shall reassign the remainder to imports.''.
    (f) Producer Provisions.--Section 359f of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Whenever'' and inserting the 
                following:
            ``(1) In general.--If'';
                    (B) in the second sentence, by striking 
                ``processor's allocation'' and inserting ``allocation 
                to the processor'';
                    (C) by striking ``Any dispute'' and inserting the 
                following:
            ``(2) Arbitration.--
                    ``(A) In general.--Any dispute''; and
                    (D) by adding at the end the following:
                    ``(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.'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(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.''; and
            (4) in subsection (c) (as so redesignated)--
                    (A) in paragraph (3)(A), by striking ``the 
                preceding 5 years'' and inserting ``the 2 highest years 
                from among the 1999, 2000, and 2001 crop years'';
                    (B) in paragraph (4)(A), by striking ``each'' and 
                all that follows through ``in effect'' and inserting 
                ``the 2 highest of the 1999, 2000, and 2001 crop 
                years''; and
                    (C) by inserting after paragraph (7) the following:
            ``(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.''.
    (g) Conforming Amendments.--
            (1) Part VII of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by 
        striking the part heading and inserting the following:

         ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR''.

            (2) Part VII of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (as amended by subsection (a)) is 
        amended by inserting before section 359b (7 U.S.C. 1359bb) the 
        following:

``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.''.
            (3) Section 359g of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1359gg) is amended--
                    (A) by striking ``359f'' each place it appears and 
                inserting ``359f(c)'';
                    (B) in the first sentence of subsection (b), by 
                striking ``3 consecutive'' and inserting ``5 
                consecutive''; and
                    (C) in subsection (c), by inserting ``or adjusted'' 
                after ``share established''.
            (4) Section 359j of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1359jj) is amended--
                    (A) in subsection (b), by striking ``sections 359a 
                through 359i'' and inserting ``this part''; and
                    (B) by striking subsection (c).

SEC. 144. REALLOCATION OF SUGAR QUOTA.

    Subtitle B of title III of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1311 et seq.) is amended by adding at the end the following:

        ``PART VIII--REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS

``SEC. 360. REALLOCATING CERTAIN SUGAR QUOTAS.

    ``(a) In General.--Notwithstanding any other provision of law, on 
or after June 1 of each year, 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 
fiscal year, and may reallocate the unused quota for that fiscal year 
among qualified supplying countries.
    ``(b) Definitions.--In this section:
            ``(1) Qualified supplying country.--The term `qualified 
        supplying country' means one of the following 40 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
            Congo
            Costa Rica
            Dominican Republic
            Ecuador
            El Salvador
            Fiji
            Gabon
            Guatemala
            Guyana
            Haiti
            Honduras
            India
            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.
            ``(2) Cane sugar.--The term `cane sugar' has the same 
        meaning as the term has under part VII.''.

                           CHAPTER 3--PEANUTS

SEC. 151. PEANUT PROGRAM.

    (a) In General.--Subtitle D of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7251 et seq.) is amended by adding at 
the end the following:

                          ``CHAPTER 3--PEANUTS

``SEC. 158A. DEFINITIONS.

    ``In this chapter:
            ``(1) Counter-cyclical payment.--The term `counter-cyclical 
        payment' means a payment made to peanut producers on a farm 
        under section 158D.
            ``(2) Direct payment.--The term `direct payment' means a 
        payment made to peanut producers on a farm under section 158C.
            ``(3) Effective price.--The term `effective price' means 
        the price calculated by the Secretary under section 158D for 
        peanuts to determine whether counter-cyclical payments are 
        required to be made under section 158D for a crop year.
            ``(4) Historical peanut producers on a farm.--The term 
        `historical peanut producers on a farm' means the peanut 
        producers on a farm in the United States that produced or were 
        prevented from planting peanuts during any of the 1998 through 
        2001 crop years.
            ``(5) Income protection price.--The term `income protection 
        price' means the price per ton of peanuts used to determine the 
        payment rate for counter-cyclical payments.
            ``(6) Payment acres.--The term `payment acres' means 85 
        percent of the peanut acres on a farm, as established under 
        section 158B, on which direct payments and counter-cyclical 
        payments are made.
            ``(7) Peanut acres.--The term `peanut acres' means the 
        number of acres assigned to a particular farm for historical 
        peanut producers on a farm pursuant to section 158B(b).
            ``(8) Payment yield.--The term `payment yield' means the 
        yield assigned to a farm by historical peanut producers on the 
        farm pursuant to section 158B(b).
            ``(9) Peanut producer.--The term `peanut producer' means an 
        owner, operator, landlord, tenant, or sharecropper that--
                    ``(A) shares in the risk of producing a crop of 
                peanuts in the United States; and
                    ``(B) is entitled to share in the crop available 
                for marketing from the farm or would have shared in the 
                crop had the crop been produced.

``SEC. 158B. PAYMENT YIELDS, PEANUT ACRES, AND PAYMENT ACRES FOR FARMS.

    ``(a) Payment Yields and Payment Acres.--
            ``(1) Average yield.--
                    ``(A) In general.--The Secretary shall determine, 
                for each historical peanut producer, the average yield 
                for peanuts on all farms of the historical peanut 
                producer for the 1998 through 2001 crop years, 
                excluding any crop year during which the producers did 
                not produce peanuts.
                    ``(B) Assigned yields.--Except as provided in 
                subparagraph (C), if, for any of the crop years 
                referred to in subparagraph (A) in which peanuts were 
                planted on a farm by the historical peanut producer, 
                the historical peanut producer has satisfied the 
                eligibility criteria established to carry out section 
                1102 of the Agriculture, Rural Development, Food and 
                Drug Administration, and Related Agencies 
                Appropriations Act, 1999 (7 U.S.C. 1421 note; Public 
                Law 105-277), the Secretary shall assign to the 
                historical peanut producer a yield for the farm for the 
                crop year equal to 65 percent of the average yield for 
                peanuts for the previous 5 crop years.
                    ``(C) Selection by producer.--If a county in which 
                a historical peanut producer described in subparagraph 
                (A) is located is declared a disaster area during 1 or 
                more of the 4 crop years described in subparagraph (A), 
                for the purposes of determining the 4-year average 
                yield for the historical peanut producer, the 
                historical peanut producer may elect to substitute, for 
                not more than 1 of the crop years during which a 
                disaster is declared--
                            ``(i) the State 4-year average yield of 
                        peanuts produced in the State; or
                            ``(ii) the average yield for the historical 
                        peanut producer determined by the Secretary 
                        under subparagraph (A).
            ``(2) Acreage average.--The Secretary shall determine, for 
        the historical peanut producer, the 4-year average of--
                    ``(A) acreage planted to peanuts on all farms for 
                harvest during the 1998 through 2001 crop years; and
                    ``(B) any acreage that was prevented from being 
                planting to peanuts during the crop years because of 
                drought, flood, or other natural disaster, or other 
                condition beyond the control of the historical peanut 
                producer, as determined by the Secretary.
            ``(3) Time for determinations; factors.--
                    ``(A) Timing.--The Secretary shall make the 
                determinations required by this subsection not later 
                than 90 days after the date of enactment of this 
                section.
                    ``(B) Factors.--In making the determinations, the 
                Secretary shall take into account changes in the number 
                and identity of historical peanut 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 when a 
                historical peanut producer is no longer living or an 
                entity composed of historical peanut producers has been 
                dissolved.
    ``(b) Assignment of Yield and Acres to Farms.--
            ``(1) Assignment by historical peanut producers.--For the 
        first crop year that begins after the date of enactment of this 
        section, the Secretary shall provide each historical peanut 
        producer in a State that produced a contract commodity, or 
        another agricultural commodity for which a production 
        adjustment program is carried out under the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1281 et seq.), or was 
        prevented from planting a contract commodity, or another such 
        agricultural commodity, during the 2001 crop year with an 
        opportunity to assign the average peanut yield and average 
        acreage determined under subsection (a) for the historical 
        peanut producer to cropland on a farm in the State.
            ``(2) Assignment to cropland.--In the case of a historical 
        peanut producer on a farm that did not produce a contract 
        commodity, or another such agricultural commodity, and was not 
        prevented from planting a contract commodity or another such 
        agricultural commodity during the 2001 crop year, the average 
        peanut yield and average acreage determined under subsection 
        (a) shall be assigned to the cropland on the farm.
            ``(3) Payment yield.--The average of all of the yields 
        assigned by historical peanut producers to a farm shall be 
        considered to be the payment yield for the farm for the purpose 
        of making direct payments and counter-cyclical payments under 
        this chapter.
            ``(4) Peanut acres.--Subject to subsection (e), the total 
        number of acres assigned by historical peanut producers to a 
        farm shall be considered to be the peanut acres for the farm 
        for the purpose of making direct payments and counter-cyclical 
        payments under this chapter.
    ``(c) Election.--In the case of the first crop year that begins 
after the date of enactment of this subsection, a historical peanut 
producer shall notify the Secretary of the assignments described in 
subsection (b)(1) not later than 180 days after the date of enactment 
of this section.
    ``(d) Payment Acres.--The payment acres for peanuts on a farm shall 
be equal to 85 percent of the peanut acres assigned to the farm.
    ``(e) Prevention of Excess Peanut Acres.--
            ``(1) Required reduction.--If the total of the peanut acres 
        for a farm, together with the acreage described in paragraph 
        (3), exceeds the actual cropland acreage of the farm, the 
        Secretary shall reduce the quantity of peanut acres for the 
        farm or contract acreage for 1 or more covered commodities for 
        the farm as necessary so that the total of the peanut acres and 
        acreage described in paragraph (3) does not exceed the actual 
        cropland acreage of the farm.
            ``(2) Selection of acres.--The Secretary shall give the 
        peanut producers on the farm the opportunity to select the 
        peanut acres or contract acreage against which the reduction 
        will be made.
            ``(3) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include--
                    ``(A) any contract acreage for the farm under 
                subtitle B;
                    ``(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.); 
                and
                    ``(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) Double-cropped acreage.--In applying paragraph (1), 
        the Secretary shall take into account additional acreage as a 
        result of an established double-cropping history on a farm, as 
        determined by the Secretary.

``SEC. 158C. DIRECT PAYMENTS FOR PEANUTS.

    ``(a) In General.--For each of the 2002 through 2006 fiscal years, 
the Secretary shall make direct payments to peanut producers on a farm 
with peanut acres under section 158B and a payment yield for peanuts 
under section 158B.
    ``(b) Payment Rate.--The payment rate used to make direct payments 
with respect to peanuts for a fiscal year shall be equal to $0.018 per 
pound.
    ``(c) Payment Amount.--The amount of the direct payment to be paid 
to the peanut producers on a farm for peanuts for a fiscal year shall 
be equal to the product obtained by multiplying--
            ``(1) the payment rate specified in subsection (b);
            ``(2) the payment acres on the farm; by
            ``(3) the payment yield for the farm.
    ``(d) Time for Payment.--
            ``(1) In general.--The Secretary shall make direct 
        payments--
                    ``(A) in the case of the 2002 fiscal year, during 
                the period beginning December 1, 2001, and ending 
                September 30, 2002; and
                    ``(B) in the case of each of the 2003 through 2006 
                fiscal years, not later than September 30 of the fiscal 
                year.
            ``(2) Advance payments.--
                    ``(A) In general.--At the option of the peanut 
                producers on a farm, the Secretary shall pay 50 percent 
                of the direct payment for a fiscal year for the 
                producers on the farm on a date selected by the peanut 
                producers on the farm.
                    ``(B) Selected date.--The selected date for a 
                fiscal year shall be on or after December 1 of the 
                fiscal year.
                    ``(C) Subsequent fiscal years.--The peanut 
                producers on a farm may change the selected date for a 
                subsequent fiscal year by providing advance notice to 
                the Secretary.
            ``(3) Repayment of advance payments.--If any peanut 
        producer on a farm that receives an advance direct payment for 
        a fiscal year ceases to be eligible for a direct payment before 
        the date the direct payment would have been made by the 
        Secretary under paragraph (1), the peanut producer shall be 
        responsible for repaying the Secretary the full amount of the 
        advance payment.

``SEC. 158D. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    ``(a) In General.--For each of the 2002 through 2006 crops of 
peanuts, the Secretary shall make counter-cyclical payments with 
respect to peanuts if the Secretary determines that the effective price 
for peanuts is less than the income protection price for peanuts.
    ``(b) Effective Price.--For purposes of subsection (a), the 
effective price for peanuts is equal to the total of--
            ``(1) the greater of--
                    ``(A) the national average market price received by 
                peanut producers during the marketing season for 
                peanuts, as determined by the Secretary; or
                    ``(B) the national average loan rate for a 
                marketing assistance loan for peanuts under section 
                158G in effect for the marketing season for peanuts 
                under this chapter; and
            ``(2) the payment rate in effect for peanuts under section 
        158C for the purpose of making direct payments with respect to 
        peanuts.
    ``(c) Income Protection Price.--For purposes of subsection (a), the 
income protection price for peanuts shall be equal to $520 per ton.
    ``(d) Payment Amount.--The amount of the counter-cyclical payment 
to be paid to the peanut producers on a farm for a crop year shall be 
equal to the product obtained by multiplying--
            ``(1) the payment rate specified in subsection (e);
            ``(2) the payment acres on the farm; by
            ``(3) the payment yield for the farm.
    ``(e) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to peanuts for a crop year shall be equal to the 
difference between--
            ``(1) the income protection price for peanuts; and
            ``(2) the effective price determined under subsection (b) 
        for peanuts.
    ``(f) Time for Payments.--
            ``(1) In general.--The Secretary shall make counter-
        cyclical payments to peanut producers on a farm under this 
        section for a crop of peanuts as soon as practicable after 
        determining under subsection (a) that the payments are required 
        for the crop year.
            ``(2) Partial payment.--
                    ``(A) In general.--At the option of the Secretary, 
                the peanut producers on a farm may elect to receive up 
                to 40 percent of the projected counter-cyclical payment 
                to be made under this section for a crop of peanuts on 
                completion of the first 2 months of the marketing 
                season for the crop, as determined by the Secretary.
                    ``(B) Repayment.--The peanut producers on a farm 
                shall repay to the Secretary the amount, if any, by 
                which the payment received by producers on the farm 
                (including any partial payments) exceeds the counter-
                cyclical payment the producers on the farm are eligible 
                for under this section.

``SEC. 158E. PRODUCER AGREEMENTS.

    ``(a) Compliance With Certain Requirements.--
            ``(1) Requirements.--Before the peanut producers on a farm 
        may receive direct payments or counter-cyclical payments with 
        respect to the farm, the peanut producers on the farm shall 
        agree during the fiscal year or crop year, respectively, for 
        which the payments are received, in exchange for the payments--
                    ``(A) to comply with applicable highly erodible 
                land 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 
                conservation 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 158F; and
                    ``(D) to use a quantity of the land on the farm 
                equal to the peanut acres, for an agricultural or 
                conserving use, and not for a nonagricultural 
                commercial or industrial use, as determined by the 
                Secretary.
            ``(2) Compliance.--The Secretary may promulgate such 
        regulations as the Secretary considers necessary to ensure 
        peanut producer compliance with paragraph (1).
    ``(b) Foreclosure.--
            ``(1) In general.--The Secretary shall not require the 
        peanut producers on a farm to repay a direct payment or 
        counter-cyclical payment if a foreclosure has occurred with 
        respect to the farm and the Secretary determines that forgiving 
        the repayment is appropriate to provide fair and equitable 
        treatment.
            ``(2) Compliance with requirements.--
                    ``(A) In general.--This subsection shall not void 
                the responsibilities of the peanut producers on a farm 
                under subsection (a) if the peanut producers on the 
                farm continue or resume operation, or control, of the 
                farm.
                    ``(B) Applicable requirements.--On the resumption 
                of operation or control over the farm by the peanut 
                producers on the farm, the requirements of subsection 
                (a) in effect on the date of the foreclosure shall 
                apply.
    ``(c) Transfer or Change of Interest in Farm.--
            ``(1) Termination.--Except as provided in paragraph (5), a 
        transfer of (or change in) the interest of the peanut producers 
        on a farm in peanut acres for which direct payments or counter-
        cyclical payments are made shall result in the termination of 
        the payments with respect to the peanut acres, unless the 
        transferee or owner of the acreage agrees to assume all 
        obligations under subsection (a).
            ``(2) Effective date.--The termination takes effect on the 
        date of the transfer or change.
            ``(3) Transfer of payment base and yield.--The Secretary 
        shall not impose any restriction on the transfer of the peanut 
        acres or payment yield of a farm as part of a transfer or 
        change described in paragraph (1).
            ``(4) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of subsection 
        (a) if the modifications are consistent with the purposes of 
        subsection (a), as determined by the Secretary.
            ``(5) Exception.--If a peanut 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 regulations 
        promulgated by the Secretary.
    ``(d) Acreage Reports.--As a condition on the receipt of any 
benefits under this chapter, the Secretary shall require the peanut 
producers on a farm to submit to the Secretary acreage reports for the 
farm.
    ``(e) Tenants and Sharecroppers.--In carrying out this chapter, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    ``(f) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments and counter-cyclical payments among the 
peanut producers on a farm on a fair and equitable basis.

``SEC. 158F. PLANTING FLEXIBILITY.

    ``(a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on peanut acres on a farm.
    ``(b) Limitations and Exceptions Regarding Certain Commodities.--
            ``(1) Limitations.--The planting of the following 
        agricultural commodities shall be prohibited on peanut acres:
                    ``(A) Fruits.
                    ``(B) Vegetables (other than lentils, mung beans, 
                and dry peas).
                    ``(C) In the case of the 2003 and subsequent crops 
                of an agricultural commodity, wild rice.
            ``(2) Exceptions.--Paragraph (1) shall not limit the 
        planting of an agricultural commodity specified in paragraph 
        (1)--
                    ``(A) in any region in which there is a history of 
                double-cropping of peanuts with agricultural 
                commodities specified in paragraph (1), as determined 
                by the Secretary, in which case the double-cropping 
                shall be permitted;
                    ``(B) on a farm that the Secretary determines has a 
                history of planting agricultural commodities specified 
                in paragraph (1) on peanut acres, except that direct 
                payments and counter-cyclical payments shall be reduced 
                by an acre for each acre planted to the agricultural 
                commodity; or
                    ``(C) by the peanut producers on a farm that the 
                Secretary determines has an established planting 
                history of a specific agricultural commodity specified 
                in paragraph (1), except that--
                            ``(i) the quantity planted may not exceed 
                        the average annual planting history of the 
                        agricultural commodity by the peanut producers 
                        on the farm during the 1996 through 2001 crop 
                        years (excluding any crop year in which no 
                        plantings were made), as determined by the 
                        Secretary; and
                            ``(ii) direct payments and counter-cyclical 
                        payments shall be reduced by an acre for each 
                        acre planted to the agricultural commodity.

``SEC. 158G. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS 
              FOR PEANUTS.

    ``(a) Nonrecourse Loans Available.--
            ``(1) Availability.--For each of the 2002 through 2006 
        crops of peanuts, the Secretary shall make available to peanut 
        producers on a farm nonrecourse marketing assistance loans for 
        peanuts produced on the farm.
            ``(2) Terms and conditions.--The loans shall be made under 
        terms and conditions that are prescribed by the Secretary and 
        at the loan rate established under subsection (b).
            ``(3) Eligible production.--The producers on a farm shall 
        be eligible for a marketing assistance loan under this section 
        for any quantity of peanuts produced on the farm.
            ``(4) Treatment of certain commingled commodities.--In 
        carrying out this section, the Secretary shall make loans to 
        peanut producers on a farm that would be eligible to obtain a 
        marketing assistance loan but for the fact the peanuts owned by 
        the peanut producers on the farm are commingled with other 
        peanuts of other producers in facilities unlicensed for the 
        storage of agricultural commodities by the Secretary or a State 
        licensing authority, if the peanut producers on a farm 
        obtaining the loan agree to immediately redeem the loan 
        collateral in accordance with section 158E.
            ``(5) 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 peanut 
        producers on a farm through--
                    ``(A) a designated marketing association of peanut 
                producers that is approved by the Secretary, which may 
                own or construct necessary storage facilities. In the 
                Southeast and Southwest areas such designated marketing 
                association shall be operated primarily on behalf of 
                peanut producers. The designated area marketing 
                association shall be allowed to form marketing pools 
                for peanuts by type and quality, including the creation 
                of a separate pool for Valencia peanuts in New Mexico;
                    ``(B) the Farm Service Agency; or
                    ``(C) a loan servicing agent approved by the 
                Secretary.
            ``(6) Loan servicing agent.--If approved by a majority of 
        historical peanut producers in a State voting in a referendum 
        conducted by the Secretary, as a condition of the Secretary's 
        approval of an entity to serve as a loan servicing agent or to 
        handle or store peanuts for producers that receive any 
        marketing loan benefits in the State, the entity shall agree to 
        provide adequate storage (if available) and handling of peanuts 
        at the commercial rate to other approved loan servicing agents 
        and marketing associations.
    ``(b) Loan Rate.--The loan rate for a marketing assistance loan for 
peanuts under subsection (a) shall be equal to $400 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.--The Secretary shall permit peanut producers 
on a farm to repay a marketing assistance loan for peanuts under 
subsection (a) at a rate that is the lesser of--
            ``(1) the loan rate established for peanuts under 
        subsection (b), plus interest (as determined by the Secretary); 
        or
            ``(2) a rate that the Secretary determines will--
                    ``(A) minimize potential loan forfeitures;
                    ``(B) minimize the accumulation of stocks of 
                peanuts by the Federal Government;
                    ``(C) minimize the cost incurred by the Federal 
                Government in storing peanuts; and
                    ``(D) allow peanuts produced in the United States 
                to be marketed freely and competitively, both 
                domestically and internationally.
    ``(e) Loan Deficiency Payments.--
            ``(1) Availability.--The Secretary may make loan deficiency 
        payments available to the peanut 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 payments under this subsection.
            ``(2) Amount.--A loan deficiency payment under this 
        subsection shall be obtained by multiplying--
                    ``(A) the loan payment rate determined under 
                paragraph (3) for peanuts; by
                    ``(B) the quantity of the peanuts produced by the 
                peanut producers on the farm, excluding any quantity 
                for which the producers on the farm obtain a loan under 
                subsection (a).
            ``(3) Loan payment rate.--For purposes of this subsection, 
        the loan payment rate shall be the amount by which--
                    ``(A) the loan rate established under subsection 
                (b); exceeds
                    ``(B) the rate at which a loan may be repaid under 
                subsection (d).
            ``(4) Time for payment.--The Secretary shall make a payment 
        under this subsection to the peanut producers on a farm with 
        respect to a quantity of peanuts as of the earlier of--
                    ``(A) the date on which the peanut producers on the 
                farm marketed or otherwise lost beneficial interest in 
                the peanuts, as determined by the Secretary; or
                    ``(B) the date the peanut producers on the farm 
                request the payment.
    ``(f) Compliance With Conservation Requirements.--As a condition of 
the receipt of a marketing assistance loan under subsection (a), the 
peanut producers on a farm shall comply during the term of the loan 
with--
            ``(1) applicable highly erodible land conservation 
        requirements under subtitle B of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3811 et seq.); and
            ``(2) applicable wetland conservation requirements under 
        subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
    ``(g) Reimbursable Agreements and Payment of Expenses.--To the 
maximum extent practicable, the Secretary shall implement any 
reimbursable agreements or provide for the payment of expenses under 
this chapter in a manner that is consistent with the implementation of 
the agreements or payment of the expenses for other commodities.
    ``(h) Area Marketing Association Costs.--If approved by a majority 
of historical peanut producers in a State voting in a referendum 
conducted by the Secretary, the Secretary shall deduct in a marketing 
assistance loan made to an area marketing association in a marketing 
area in the State, such costs as the area marketing association may 
reasonably incur in carrying out the responsibilities, operations, and 
activities of the association and Commodity Credit Corporation under 
this section.
    ``(i) Definition of Commingle.--In this section and section 158H, 
the term `commingle', with respect to peanuts, means--
            ``(1) the mixing of peanuts produced on different farms by 
        the same or different producers; or
            ``(2) the mixing of peanuts pledged for marketing 
        assistance loans with peanuts that are not pledged for 
        marketing assistance loans, to facilitate storage.

``SEC. 158H. QUALITY IMPROVEMENT.

    ``(a) Official Inspection.--
            ``(1) In general.--All peanuts placed under a marketing 
        assistance loan under section 158G or otherwise sold or 
        marketed shall be officially inspected and graded by a Federal 
        or State inspector.
            ``(2) Accounting for commingled peanuts.--If approved by a 
        majority of historical peanut producers in a State voting in a 
        referendum conducted by the Secretary, all peanuts stored 
        commingled with peanuts covered by a marketing assistance loan 
        in the State shall be graded and exchanged on a dollar value 
        basis, unless the Secretary determines that the beneficial 
        interest in the peanuts covered by the marketing assistance 
        loan have been transferred to other parties prior to demand for 
        delivery.
    ``(b) Termination of Peanut Administrative Committee.--The Peanut 
Administrative Committee established under Marketing Agreement No. 
1436, which regulates the quality of domestically produced peanuts 
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
with amendments by the Agricultural Marketing Agreement Act of 1937, is 
terminated.
    ``(c) Establishment of Peanut Standards Board.--
            ``(1) In general.--The Secretary shall establish a Peanut 
        Standards Board for the purpose of assisting in the 
        establishment of quality standards with respect to peanuts.
            ``(2) Composition.--The Secretary shall appoint members to 
        the Board that, to the maximum extent practicable, reflect all 
        regions and segments of the peanut industry.
            ``(3) Duties.--The Board shall assist the Secretary in 
        establishing quality standards for peanuts.
    ``(d) Crops.--This section shall apply beginning with the 2002 crop 
of peanuts.''.
    (b) Conforming Amendments.--
            (1) 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''.
            (2) Section 155 of the Federal Agriculture Improvement and 
        Reform Act of 1996 (7 U.S.C. 7271) is repealed.

SEC. 152. TERMINATION OF MARKETING QUOTAS FOR PEANUTS AND COMPENSATION 
              TO PEANUT QUOTA HOLDERS.

    (a) Repeal of Marketing Quotas for Peanuts.--Effective beginning 
with the 2002 crop of peanuts, part VI of subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) is 
repealed.
    (b) Compensation of Quota Holders.--
            (1) Definitions.--In this subsection:
                    (A) Peanut quota holder.--
                            (i) In general.--The term ``peanut quota 
                        holder'' means a person or entity that owns a 
                        farm that--
                                    (I) held a peanut quota established 
                                for the farm for the 2001 crop of 
                                peanuts under part VI of subtitle B of 
                                title III of the Agricultural 
                                Adjustment Act of 1938 (7 U.S.C. 1357 
                                et seq.) (as in effect before the 
                                amendment made by subsection (a));
                                    (II) if there was not such a quota 
                                established for the farm for the 2001 
                                crop of peanuts, would be eligible to 
                                have such a quota established for the 
                                farm for the 2002 crop of peanuts, in 
                                the absence of the amendment made by 
                                subsection (a); or
                                    (III) is otherwise a farm that was 
                                eligible for such a quota as of the 
                                effective date of the amendments made 
                                by this section.
                            (ii) Seed or experimental purposes.--The 
                        Secretary shall apply the definition of 
                        ``peanut quota holder'' without regard to 
                        temporary leases, transfers, or quotas for seed 
                        or experimental purposes.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Agriculture.
            (2) Contracts.--The Secretary shall offer to enter into a 
        contract with peanut quota holders for the purpose of providing 
        compensation for the lost value of quota as a result of the 
        repeal of the marketing quota program for peanuts under the 
        amendment made by subsection (a).
            (3) Payment period.--Under a contract, the Secretary shall 
        make payments to an eligible peanut quota holder for each of 
        fiscal years 2002 through 2006.
            (4) Time for payment.--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.
            (5) Payment amount.--The amount of the payment for a fiscal 
        year to a peanut quota holder under a contract shall be equal 
        to the product obtained by multiplying--
                    (A) $0.11 per pound; by
                    (B) the actual farm poundage quota (excluding any 
                quantity for seed and experimental peanuts) established 
                for the farm of a peanut quota holder under section 
                358-1(b) of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1358-1(b)) (as in effect prior to the amendment 
                made by subsection (a)) for the 2001 marketing year.
            (6) Assignment of payments.--
                    (A) In general.--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 to peanut quota 
                holders under the contracts.
                    (B) Notice.--The peanut quota holder 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 
                subsection.
    (c) 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,''.
    (d) Crops.--This section and the amendments made by this section 
apply beginning with the 2002 crop of peanuts.

                       Subtitle D--Administration

SEC. 161. 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. 162. 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 ``75,000,000''; and
            (2) in clause (ii), by striking ``15 percent'' and 
        inserting ``10 percent''.

SEC. 163. 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 of Agriculture 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. 164. ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND COMPLIANCE.

    Section 161 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7281) is amended by adding at the end the following:
    ``(e) Adjustment Authority Related to Uruguay Round Compliance.--If 
the Secretary determines that expenditures under subtitles A through D 
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 subsection, will exceed the allowable levels for any 
applicable reporting period, the Secretary may make adjustments in the 
amount of the expenditures to ensure that the expenditures do not 
exceed, but are not less than, the allowable levels.
    ``(f) Expenditure Limitation.--If the Secretary makes a 
determination under subsection (e) that expenditures will exceed 
allowable levels for any applicable reporting period and notifies 
Congress of the Secretary's intent to make adjustments to ensure that 
expenditures do not exceed allowable levels, no expenditures under any 
program proposed to be adjusted by the Secretary may be made after the 
date that is 18 months after the date of the determination, unless a 
joint resolution disapproving the adjustments is enacted by both Houses 
of Congress within 60 days of the date of the notification.
    ``(g) Annual Report on Domestic Support.--Not later than April 30 
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--
            ``(1) estimated levels of domestic support for agricultural 
        commodities during the current marketing year and the following 
        marketing year;
            ``(2) the manner in which the Secretary intends to notify 
        the World Trade Organization of the estimated levels; and
            ``(3) proposed changes to domestic support programs subject 
        to reduction commitments made in the context of WTO trade 
        negotiations.''.

SEC. 165. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    Section 171 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7301) is amended--
            (1) by striking ``2002'' each place it appears and 
        inserting ``2006''; and
            (2) in subsection (a)(1)--
                    (A) by striking subparagraph (E); and
                    (B) by redesignating subparagraphs (F) through (I) 
                as subparagraphs (E) through (H), respectively.

SEC. 166. COMMODITY PURCHASES.

    (a) In General.--Section 191 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7331 et seq.) is amended to read as 
follows:

``SEC. 191. COMMODITY PURCHASES.

    ``(a) In General.--To purchase agricultural commodities under this 
section, the Secretary shall use funds of the Commodity Credit 
Corporation in an amount equal to--
            ``(1) for each of fiscal years 2002 and 2003, $130,000,000, 
        of which not less than $100,000,000 shall be used for the 
        purchase of specialty crops;
            ``(2) for fiscal year 2004, $150,000,000, of which not less 
        than $120,000,000 shall be used for the purchase of specialty 
        crops;
            ``(3) for fiscal year 2005, $170,000,000, of which not less 
        than $140,000,000 shall be used for the purchase of specialty 
        crops;
            ``(4) for fiscal year 2006, $200,000,000, of which not less 
        than $170,000,000 shall be used for the purchase of specialty 
        crops; and
            ``(5) for fiscal year 2007, $0.
    ``(b) Other Purchases.--The Secretary shall ensure that purchases 
of agricultural commodities under this section are in addition to 
purchases by the Secretary under any other law.
    ``(c) Purchases by Department of Defense for School Lunch 
Program.--The Secretary shall provide not less than $50,000,000 for 
each fiscal year of the funds made available under subsection (a) to 
the Secretary of Defense to purchase 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)) in a manner prescribed by the Secretary of Agriculture.
    ``(d) Purchases for Emergency Food Assistance Program.--The 
Secretary shall use not less than $40,000,000 for each fiscal year of 
the funds made available under subsection (a) to purchase agricultural 
commodities for distribution under the Emergency Food Assistance Act of 
1983 (7 U.S.C. 7501 et seq.).''.
    (b) Sense of the Senate Concerning Purchases of Cranberries.--
            (1) Findings.--Congress finds that--
                    (A) the price per hundred pounds of cranberries has 
                dropped from approximately $70 to approximately $10;
                    (B) the cost of producing cranberries is between 
                $30 and $35 per hundred pounds, which is much more than 
                the price per hundred pounds of cranberries for each of 
                the past 2 years;
                    (C) there is a serious economic crisis among 
                cranberry growers in the United States, especially in 
                the States of Wisconsin, Massachusetts, and New Jersey;
                    (D) the Cranberry Marketing Committee has issued 2 
                marketing orders, but the marketing orders have not led 
                to higher prices;
                    (E) although Congress directed the Secretary of 
                Agriculture to use $30,000,000 to purchase cranberries 
                in fiscal year 2001, the price of cranberries has not 
                risen significantly; and
                    (F) the cranberry industry faces a surplus of 
                cranberries and continuing low prices for cranberries.
            (2) Sense of the senate.--It is the sense of the Senate 
        that the Secretary of Agriculture should attempt to alleviate 
        the economic crisis among cranberry growers by continuing to 
        expend for each fiscal year for the purchase of cranberries the 
        same amount as the Secretary expended for fiscal year 2001.

SEC. 167. HARD WHITE WHEAT INCENTIVE PAYMENTS.

    Section 193 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 1508) is amended to read as follows:

``SEC. 193. HARD WHITE WHEAT INCENTIVE PAYMENTS.

    ``(a) In General.--For the period of crop years 2003 through 2005, 
the Secretary shall use $40,000,000 of funds of the Commodity Credit 
Corporation to provide incentive payments to producers of hard white 
wheat to ensure that hard white wheat, produced on a total of not more 
than 2,000,000 acres, meets minimum quality standards established by 
the Secretary.
    ``(b) Application.--The amounts payable to producers in the form of 
payments under this section shall be determined through the submission 
of bids by producers in such manner as the Secretary may prescribe.
    ``(c) Demand for Wheat.--To be eligible to obtain a payment under 
this section, a producer shall demonstrate to the Secretary the 
availability of buyers and end-users for the wheat that is the covered 
by the payment.''.

SEC. 168. LIVESTOCK ASSISTANCE PROGRAM.

    Section 194 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 6933) is amended to read as follows:

``SEC. 194. LIVESTOCK ASSISTANCE PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program to 
provide livestock feed assistance to livestock producers affected by 
disasters.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $500,000,000 for each of fiscal 
years 2003 through 2008.''.

SEC. 169. PAYMENT LIMITATIONS; NUTRITION AND COMMODITY PROGRAMS.

    (a) Payment Limitations.--
            (1) In general.--Section 1001 of the Food Security Act of 
        1985 (7 U.S.C. 1308) is amended to read as follows:

``SEC. 1001. PAYMENT LIMITATIONS.

    ``(a) Definitions.--In this section and sections 1001A through 
1001F:
            ``(1) Beneficial interest.--The term `beneficial interest' 
        means an interest in an entity that is at least--
                    ``(A) 10 percent; or
                    ``(B) a lower percentage, which the Secretary shall 
                establish, on a case-by-case basis, as needed to 
                achieve the purposes of this section and sections 1001A 
                through 1001F, including effective implementation of 
                section 1001A(b).
            ``(2) Counter-cyclical payment.--The term `counter-cyclical 
        payment' means a payment made under section 114 or 158D of the 
        Federal Agriculture Improvement and Reform Act of 1996.
            ``(3) Direct payment.--The term `direct payment' means a 
        payment made under section 113 or 158C of the Federal 
        Agriculture Improvement and Reform Act of 1996.
            ``(4) Entity.--
                    ``(A) In general.--The term `entity' means--
                            ``(i) an entity that (subject to the 
                        requirements of this section and section 1001A) 
                        is eligible to receive a payment under 
                        subsection (b) or (c);
                            ``(ii) a corporation, joint stock company, 
                        association, limited partnership, charitable 
                        organization, a grantor of a revocable trust, 
                        or other similar entity (as determined by the 
                        Secretary); and
                            ``(iii) an entity that is participating in 
                        a farming operation as a partner in a general 
                        partnership or as a participant in a joint 
                        venture.
                    ``(B) Exclusion.--Except in section 1001F, the term 
                `entity' does not include an entity that is a general 
                partnership or joint venture.
            ``(5) Individual.--The term `individual' means--
                    ``(A) a natural person, and minor children of the 
                natural person (as determined by the Secretary), that 
                (subject to the requirements of this section and 
                section 1001A) is eligible to receive a payment under 
                subsection (b) or (c); and
                    ``(B) an individual participating in a farming 
                operation as a partner in a general partnership, a 
                participant in a joint venture, a grantor of a 
                revocable trust, or a participant in a similar entity 
                (as determined by the Secretary).
            ``(6) Loan commodity.--The term `loan commodity' has the 
        meaning given the term in section 102 of the Federal 
        Agriculture Improvement and Reform Act of 1996.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Limitations on Direct and Counter-Cyclical Payments.--Subject 
to subsections (d) through (i), the total amount of direct payments and 
counter-cyclical payments that an individual or entity may receive, 
directly or indirectly, during any fiscal year shall not exceed 
$75,000.
    ``(c) Limitations on Marketing Loan Gains, Loan Deficiency 
Payments, and Commodity Certificate Transactions.--
            ``(1) In general.--Subject to subsections (d) through (i), 
        the total amount of the payments and benefits described in 
        paragraph (2) that an individual or entity may receive, 
        directly or indirectly, during any crop year shall not exceed 
        $150,000.
            ``(2) Payments and benefits.--Paragraph (1) shall apply to 
        the following payments and benefits:
                    ``(A) Marketing loan gains.--
                            ``(i) Repayment gains.--Any gain realized 
                        by a producer from repaying a marketing 
                        assistance loan under section 131 or 158G(a) of 
                        the Federal Agriculture Improvement and Reform 
                        Act of 1996 for a crop of any loan commodity or 
                        peanuts, respectively, at a lower level than 
                        the original loan rate established for the loan 
                        commodity or peanuts under section 132 or 
                        158G(d) of that Act, respectively.
                            ``(ii) Forfeiture gains.--In the case of 
                        settlement of a marketing assistance loan under 
                        section 131 or 158G(a) of that Act for a crop 
                        of any loan commodity or peanuts, respectively, 
                        by forfeiture, the amount by which the loan 
                        amount exceeds the repayment amount for the 
                        loan if the loan had been settled by repayment 
                        instead of forfeiture.
                    ``(B) Loan deficiency payments.--Any loan 
                deficiency payment received for a loan commodity or 
                peanuts under section 135 or 158G(e) of that Act, 
                respectively.
                    ``(C) Commodity certificates.--Any gain realized 
                from the use of a commodity certificate issued by the 
                Commodity Credit Corporation, as determined by the 
                Secretary, including the use of a certificate for the 
                settlement of a marketing assistance loan made under 
                section 131 or 158G(a) of that Act.
    ``(d) Settlement of Certain Loans.--Notwithstanding subtitle C and 
section 158G of the Federal Agriculture Improvement and Reform Act of 
1996, if the amount of payments and benefits described in subsection 
(c)(2) attributed directly or indirectly to an individual or entity for 
a crop year reaches the limitation described in subsection (c)(1)--
            ``(1) the portion of any unsettled marketing assistance 
        loan made under section 131 or 158G(a) of that Act attributed 
        directly or indirectly to the individual or entity shall be 
        settled through the repayment of the total loan principal, plus 
        applicable interest; and
            ``(2) the Secretary may refuse to provide to the producer 
        for the crop year any additional marketing assistance loans 
        under section 131 or 158G(a) of that Act.
    ``(e) Payments to Individuals and Entities.--
            ``(1) Interests within the same entity.--All individuals or 
        entities that are owners of an entity, including shareholders, 
        may not collectively receive payments directly or indirectly 
        that are attributable to the ownership interests in the entity 
        for a fiscal or corresponding crop year that exceed the 
        limitations established under subsections (b) and (c).
            ``(2) All interests of an individual or entity.--An 
        individual or entity may not receive, directly or indirectly, 
        through all ownership interests of the individual or entity 
        from all sources, payments for a fiscal or corresponding crop 
        year that exceed the limitations established under subsections 
        (b) and (c).
    ``(f) Married Couples.--During a fiscal and corresponding crop 
year, the total amount of payments and benefits described in 
subsections (b) and (c) that a married couple may receive directly or 
indirectly may not exceed--
            ``(1) the limits described in subsections (b) and (c); plus
            ``(2) if each spouse meets the other requirements 
        established under this section and section 1001A, a combined 
        total of an additional $50,000.
    ``(g) Public Schools.--The provisions of this section that limit 
payments to any individual or entity shall not be applicable to land 
owned by a public school district or land owned by a State that is used 
to maintain a public school.
    ``(h) Time Limits.--The Secretary shall promulgate regulations that 
establish time limits for the various steps involved with notice, 
hearing, decision, and the appeals procedure in order to ensure 
expeditious handling and settlement of payment limitation disputes.
    ``(i) Good Faith Reliance.--Notwithstanding any other provision of 
law, an action taken by an individual or other entity in good faith on 
action or advice of an authorized representative of the Secretary may 
be accepted as meeting the requirements of this section or section 
1001A, to the extent the Secretary determines it is desirable in order 
to provide fair and equitable treatment.''.
            (2) Substantive change.--Section 1001A(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308-1(a)) is amended--
                    (A) in the section heading, by striking 
                ``prevention of creation of entities to qualify as 
                separate persons;'' and inserting ``substantive 
                change;'';
                    (B) by striking ``(a) Prevention'' and all that 
                follows through the end of paragraph (2) and inserting 
                the following:
    ``(a) Substantive Change.--
            ``(1) In general.--The Secretary may not approve (for 
        purposes of the application of the limitations under this 
        section) any change in a farming operation that otherwise will 
        increase the number of individuals or entities to which the 
        limitations under this section are applied unless the Secretary 
        determines that the change is bona fide and substantive.
            ``(2) Family members.--For the purpose of paragraph (1), 
        the addition of a family member to a farming operation under 
        the criteria established under subsection (b)(3)(B) shall be 
        considered a bona fide and substantive change in the farming 
        operation.'';
                    (C) in the first sentence of paragraph (3)--
                            (i) by striking ``as a separate person''; 
                        and
                            (ii) by inserting ``, as determined by the 
                        Secretary'' before the period at the end; and
                    (D) by striking paragraph (4).
            (3) Actively engaged in farming.--Section 1001A(b) of the 
        Food Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--To be eligible to receive, directly or 
        indirectly, payments or benefits (as described in subsections 
        (b) and (c) of section 1001 as being subject to limitation) 
        with respect to a particular farming operation an individual or 
        entity shall be actively engaged in farming with respect to the 
        operation, as provided under paragraphs (2), (3), and (4).'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)(i), by striking 
                        subclause (II) and inserting the following:
                                    ``(II) personal labor and active 
                                personal management (in accordance with 
                                subparagraph (F));'';
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Entities.--An entity (as defined in section 
                1001(a)) shall be considered as actively engaged in 
                farming with respect to a farming operation if--
                            ``(i) the entity separately makes a 
                        significant contribution (based on the total 
                        value of the farming operation) of capital, 
                        equipment, or land;
                            ``(ii)(I) the stockholders or members that 
                        collectively own at least 50 percent of the 
                        combined beneficial interest in the entity make 
                        a significant contribution of personal labor or 
                        active personal management to the operation; or
                            ``(II) in the case of a corporation or 
                        entity in which all of the beneficial interests 
                        are held by family members (as defined in 
                        paragraph (3)(B))--
                                    ``(aa) any stockholder (or 
                                household comprised of a stockholder 
                                and the spouse of the stockholder) who 
                                owns at least 10 percent of the 
                                beneficial interest and makes a 
                                significant contribution of personal 
                                labor or active personal management; or
                                    ``(bb) any combination of 
                                stockholders who collectively own at 
                                least 10 percent of the beneficial 
                                interest and makes a significant 
                                contribution of personal labor or 
                                active personal management; and
                            ``(iii) the standards provided in clauses 
                        (ii) and (iii) of subparagraph (A), as applied 
                        to the entity, are met by the entity.''; and
                            (iii) by adding at the end the following:
                    ``(E) Active personal management.--For an 
                individual to be considered to be providing active 
                personal management under this paragraph on behalf of 
                the individual or entity, the management provided by 
                the individual shall be personally provided on a 
                regular, substantial, and continuous basis through the 
                direct supervision and direction of--
                            ``(i) activities and labor involved in the 
                        farming operation; and
                            ``(ii) onsite services that are directly 
                        related and necessary to the farming operation.
                    ``(F) Significant contribution of personal labor or 
                active personal management.--
                            ``(i) In general.--For an individual to be 
                        considered to be providing a significant 
                        contribution of personal labor or active 
                        personal management under this paragraph on 
                        behalf of the individual or entity, the total 
                        contribution of personal labor and active 
                        personal management shall be at least equal to 
                        the lesser of--
                                    ``(I) 1,000 hours annually; or
                                    ``(II) 50 percent of the 
                                commensurate share of the total number 
                                of hours of personal labor and active 
                                personal management required to conduct 
                                the farming operation.
                            ``(ii) Minimum number of labor hours.--For 
                        the purpose of clause (i), the minimum number 
                        of labor hours required to produce each 
                        commodity shall be equal to the number of hours 
                        that would be necessary to conduct a farming 
                        operation for the production of each commodity 
                        that is comparable in size to an individual or 
                        entity's commensurate share in the farming 
                        operation for the production of the commodity, 
                        based on the minimum number of hours per acre 
                        required to produce the commodity in the State 
                        where the farming operation is located, as 
                        determined by the Secretary.'';
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Landowners.--An individual or entity that is 
                a landowner contributing the owned land and that meets 
                the standard provided in clauses (ii) and (iii) of 
                paragraph (2)(A), if--
                            ``(i) the landowner share rents the land;
                            ``(ii) the tenant is actively engaged in 
                        farming; and
                            ``(iii) the share received by the landowner 
                        is commensurate with the share of the crop or 
                        income received as rent; or
                            ``(iv)(I) the landowner makes a significant 
                        contribution of active personal management;
                            ``(II) the landowner formerly made a 
                        significant contribution of personal labor or 
                        active personal management on the land for 
                        which payments are received and ceased to make 
                        the contribution as a result of a disability, 
                        as determined by the Secretary; or
                            ``(III) the landowner or spouse of the 
                        landowner formerly made a significant 
                        contribution of personal labor or active 
                        personal management on the land for which 
                        payments are received and ceased to make the 
                        contribution as a result of death or 
                        retirement, and 1 or more family members of the 
                        landowner currently make a significant 
                        contribution of personal labor or active 
                        personal management on the land.''; and
                            (ii) in subparagraph (B), by striking 
                        ``persons'' and inserting ``individuals and 
                        entities''; and
                    (D) in paragraph (4)--
                            (i) in the paragraph heading, by striking 
                        ``Persons'' and inserting ``Individuals and 
                        entities'';
                            (ii) in the matter preceding subparagraph 
                        (A), by striking ``persons'' and inserting 
                        ``individuals and entities''; and
                            (iii) in subparagraph (B)--
                                    (I) in the subparagraph heading, by 
                                striking ``persons'' and inserting 
                                ``individuals and entities''; and
                                    (II) by striking ``person, or class 
                                of persons'' and inserting ``individual 
                                or entity, or class of individuals or 
                                entities'';
                    (E) in paragraph (5)--
                            (i) by striking ``A person'' and inserting 
                        ``An individual or entity''; and
                            (ii) by striking ``such person'' and 
                        inserting ``the individual or entity''; and
                    (F) in paragraph (6), by striking ``a person'' and 
                inserting ``an individual or entity''.
            (4) Administration.--Section 1001A of the Food Security Act 
        of 1985 (7 U.S.C. 1308-1) is amended by adding at the end the 
        following:
    ``(c) Administration.--
            ``(1) Reviews.--
                    ``(A) In general.--During each of fiscal years 2002 
                through 2006, the Office of Inspector General for the 
                Department of Agriculture shall conduct a review of the 
                administration of the requirements of this section and 
                sections 1001, 1001B, 1001C, and 1001E in at least 6 
                States.
                    ``(B) Minimum number of counties.--Each State 
                review described in subparagraph (A) shall cover at 
                least 5 counties in the State.
                    ``(C) Report.--Not later than 90 days after 
                completing a review described in subparagraph (A), the 
                Inspector General for the Department of Agriculture 
                shall issue a final report to the Secretary of the 
                findings of the Inspector General.
            ``(2) Effect of report.--If a report issued under paragraph 
        (1) reveals that significant problems exist in the 
        implementation of payment limitation requirements of this 
        section and sections 1001, 1001B, 1001C, and 1001E in a State 
        and the Secretary agrees that the problems exist, the 
        Secretary--
                    ``(A) shall initiate a training program regarding 
                the payment limitation requirements; and
                    ``(B) may require that all payment limitation 
                determinations regarding farming operations in the 
                State be issued from the headquarters of the Farm 
                Service Agency.''.
            (5) Scheme or device.--Section 1001B of the Food Security 
        Act of 1985 (7 U.S.C. 1308-2) is amended--
                    (A) by striking ``person'' each place it appears 
                and inserting ``individual or entity''; and
                    (B) by striking ``paragraphs (1) and (2)'' and 
                inserting ``subsections (b) and (c)''.
            (6) Foreign individuals and entities.--Section 1001C(b) of 
        the Food Security Act of 1985 (7 U.S.C. 1308-3(b)) is amended 
        in the first sentence by striking ``considered a person that 
        is''.
            (7) Education program.--Section 1001D(c) of the Food 
        Security Act of 1985 (7 U.S.C. 1308-4(c)) is amended by 
        striking ``5 persons'' and inserting ``5 individuals or 
        entities''.
            (8) Report to congress.--No later than 180 days after the 
        date of enactment of this Act, the Secretary of Agriculture 
        shall provide a report to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate that describes--
                    (A) how State and county office employees are 
                trained regarding the payment limitation requirements 
                of section 1001 through 1001E of the Food Security Act 
                of 1985 (7 U.S.C. 1308 through 1308-5);
                    (B) the general procedures used by State and county 
                office employees to identify potential violations of 
                the payment limitation requirements;
                    (C) the requirements for State and county office 
                employees to report serious violations of the payment 
                limitation requirements, including violations of 
                section 1001B of that Act to the county committee, 
                higher level officials of the Farm Service Agency, and 
                to the Office of Inspector General; and
                    (D) the sanctions imposed against State and county 
                office employees who fail to report or investigate 
                potential violations of the payment limitation 
                requirements.
    (b) Adjusted Gross Income Limitation.--The Food Security Act of 
1985 is amended by inserting after section 1001E (7 U.S.C. 1308-5) the 
following:

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

    ``(a) Definitions.--In this section:
            ``(1) Adjusted gross income.--The term `adjusted gross 
        income' means adjusted gross income of an individual or 
        entity--
                    ``(A) as defined in section 62 of the Internal 
                Revenue Code of 1986 and implemented in accordance with 
                procedures established by the Secretary; and
                    ``(B) that is earned directly or indirectly from 
                all agricultural and nonagricultural sources of an 
                individual or entity for a fiscal or corresponding crop 
                year.
            ``(2) Average adjusted gross income.--
                    ``(A) In general.--The term `average adjusted gross 
                income' means the average adjusted gross income of an 
                individual or entity for each of the 3 preceding 
                taxable years.
                    ``(B) Effective adjusted gross income.--In the case 
                of an individual or entity that does not have an 
                adjusted gross income for each of the 3 preceding 
                taxable years, the Secretary shall establish rules that 
                provide the individual or entity with an effective 
                adjusted gross income for the applicable year.
    ``(b) Limitation.--Notwithstanding any other provision of title I 
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7201 et seq.), an individual or entity shall not be eligible for a 
payment or benefit described in subsection (b) or (c) of section 1001 
if the average adjusted gross income of the individual or entity 
exceeds $2,500,000.
    ``(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 $2,500,000; 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 payment or benefit 
made in a fiscal year or corresponding crop year to an entity that has 
an average adjusted gross income of $2,500,000 or less, the payment 
shall be reduced by an amount that is commensurate with the direct and 
indirect ownership interest in the entity of each individual who has an 
average adjusted gross income in excess of $2,500,000 for that fiscal 
year or corresponding crop year.
    ``(e) General Partnerships and Joint Ventures.--For purposes of 
this section, a general partnership or joint venture shall be 
considered an entity.''.
    (c) Food Stamp Program.--
            (1) Increase in benefits to households with children.--
        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.--Subject to the other provisions 
                of this paragraph, the Secretary shall allow for each 
                household a standard deduction that is equal to the 
                greater of--
                            ``(i) the applicable percentage specified 
                        in subparagraph (D) of the applicable income 
                        standard of eligibility established under 
                        subsection (c)(1); or
                            ``(ii) the minimum deduction specified in 
                        subparagraph (E).
                    ``(B) Guam.--The Secretary shall allow for each 
                household in Guam a standard deduction that is--
                            ``(i) equal to the applicable percentage 
                        specified in subparagraph (D) 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 less than the minimum deduction 
                        for Guam specified in subparagraph (E).
                    ``(C) Households of 6 or more members.--The income 
                standard of eligibility established under subsection 
                (c)(1) for a household of 6 members shall be used to 
                calculate the standard deduction for each household of 
                6 or more members.
                    ``(D) Applicable percentage.--For the purpose of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) 8 percent for each of fiscal years 
                        2002 through 2004;
                            ``(ii) 8.25 percent for each of fiscal 
                        years 2005 and 2006;
                            ``(iii) 8.5 percent for each of fiscal 
                        years 2007 and 2008;
                            ``(iv) 8.75 percent for fiscal year 2009; 
                        and
                            ``(v) 9 percent for each of fiscal years 
                        2010 and 2011.
                    ``(E) Minimum deduction.--The minimum deduction 
                shall be $134, $229, $189, $269, and $118 for the 48 
                contiguous States and the District of Columbia, Alaska, 
                Hawaii, Guam, and the Virgin Islands of the United 
                States, respectively.''.
            (2) Excess shelter expense deduction.--
                    (A) In general.--Section 5(e)(7)(B) of the Food 
                Stamp Act of 1977 (7 U.S.C. 2014(e)(7)(B)) is amended--
                            (i) in clause (v), by striking ``and'' at 
                        the end; and
                            (ii) by striking clause (vi) and inserting 
                        the following:
                            ``(vi) for fiscal year 2002, $354, $566, 
                        $477, $416, and $279 per month, respectively;
                            ``(vii) for fiscal year 2003, $390, $624, 
                        $526, $458, and $307 per month, respectively; 
                        and
                            ``(viii) for fiscal years 2004 and each 
                        fiscal year thereafter, the applicable amount 
                        for the preceding fiscal year, as adjusted to 
                        reflect changes for the 12-month period ending 
                        the preceding November 30 in the Consumer Price 
                        Index for All Urban Consumers published by the 
                        Bureau of Labor Statistics of the Department of 
                        Labor.''.
                    (B) Prospective amendments.--Effective October 1, 
                2009, section 5(e)(7) of the Food Stamp Act of 1977 (7 
                U.S.C. 2014(e)(7)) is amended--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B).
            (3) 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''.
            (4) 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''.
            (5) Effectiveness of certain provisions.--Section 413 and 
        subsections (c) and (d) of section 434, and the amendments made 
        by section 413 and subsections (c) and (d) of section 434, 
        shall have no effect.
    (d) Loan Deficiency Payments.--
            (1) Eligibility.--Section 135 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7235) (as amended 
        by section 126(1)) is amended by striking subsection (a) and 
        inserting the following:
    ``(a) In General.--The Secretary may make loan deficiency payments 
available to--
            ``(1) producers on a farm that, although eligible to obtain 
        a marketing assistance loan under section 131 with respect to a 
        loan commodity, agree to forgo obtaining the loan for the 
        covered commodity in return for payments under this section; 
        and
            ``(2) effective only for the 2000 and 2001 crop years, 
        producers that, although not eligible to obtain such a 
        marketing assistance loan under section 131, produce a loan 
        commodity.''.
            (2) Beneficial interest.--Section 135(e)(1) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
        7235(e)) (as amended by section 126(2)) is amended by striking 
        ``A producer'' and inserting ``Effective for the 2001 through 
        2006 crops, a producer''.
    (e) Loan Authorization Levels.--Section 346(b) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1994(b)) (as amended by 
section 529(1)(A)) is amended by striking paragraph (1) and inserting 
the following:
            ``(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 2002 through 2006, 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.''.
    (f) Beginning Farmer and Rancher Development Program.--In addition 
to funds made available under the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 2002 
(Public Law 107-76), the Secretary of Agriculture shall use $5,000,000 
of funds of the Commodity Credit Corporation for fiscal year 2002 to 
make loans described in section 346(b)(2)(A)(i) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1994(b)(2)(A)(i)).
    (g) Initiative for Future Agriculture and Food Systems.--Section 
401(b)(1) of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7621(b)(1)) (as amended by section 741) is 
amended--
            (1) in subparagraph (A), by striking ``$120,000,000'' and 
        inserting ``$130,000,000''; and
            (2) in subparagraph (B), by striking ``$145,000,000'' and 
        inserting ``$225,000,000''.
    (h) Specialty Crop Insurance Initiative.--
            (1) Research and development funding.--Section 522(e) of 
        the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended by 
        striking paragraph (1) and inserting the following:
            ``(1) Reimbursements.--Of the amounts made available from 
        the insurance fund established under section 516(c), the 
        Corporation may use to provide reimbursements under subsection 
        (b) not more than--
                    ``(A) $32,000,000 for fiscal year 2002;
                    ``(B) $27,500,000 for each of fiscal years 2003 and 
                2004;
                    ``(C) $25,000,000 for each of fiscal years 2005 and 
                2006; and
                    ``(D) $15,000,000 for fiscal year 2007 and each 
                subsequent fiscal year.''.
            (2) Education and information funding.--Section 524(a)(4) 
        of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is 
        amended by striking subparagraph (A) and inserting the 
        following:
                    ``(A) for the education and information program 
                established under paragraph (2)--
                            ``(i) $10,000,000 for fiscal year 2003;
                            ``(ii) $13,000,000 for fiscal year 2004;
                            ``(iii) $15,000,000 for each of fiscal 
                        years 2005 and 2006; and
                            ``(iv) $5,000,000 for fiscal year 2007 and 
                        each subsequent fiscal year; and''.
            (3) Reports.--Not later than September 30, 2002, 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--
                    (A) the progress made by the 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;
                    (B) 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; 
                and
                    (C) how the additional funding provided under the 
                amendments made by this section has been used.
    (i) Effective Date.--This section and the amendments made by this 
section take effect 1 day after the date of enactment of this Act.

SEC. 170. RESTRICTION OF COMMODITY AND CROP INSURANCE PAYMENTS, LOANS, 
              AND BENEFITS TO PREVIOUSLY CROPPED LAND; FOOD STAMP 
              PROGRAM FOR CERTAIN QUALIFIED ALIENS.

    (a) Restriction of Commodity and Crop Insurance Payments, Loans, 
and Benefits to Previously Cropped Land.--Section 194 of the Federal 
Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 110 
Stat. 945) is amended to read as follows:

``SEC. 194. RESTRICTION OF COMMODITY AND CROP INSURANCE PAYMENTS, 
              LOANS, AND BENEFITS TO PREVIOUSLY CROPPED LAND.

    ``(a) Definitions.--In this section:
            ``(1) Agricultural commodity.--The term `agricultural 
        commodity' has the meaning given the term in section 102 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            ``(2) Exclusions.--The term `agricultural commodity' does 
        not include forage, livestock, timber, forest products, or hay.
            ``(3) In general.--The term `considered planted' shall 
        include cropland that has been prevented from being planted at 
        least 8 out of the past 10 years due to disaster related 
        conditions as determined by the Secretary.
    ``(b) Commodities.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, except as provided in paragraph (2), the Secretary 
        shall not provide a crop payment, crop loan, or other crop 
        benefit under this title to an owner or producer, with respect 
        to an agricultural commodity produced on land during a crop 
        year unless the land has been planted, considered planted, or 
        devoted to an agricultural commodity during --
                    ``(A) at least 1 of the 5 crop years preceding the 
                2002 crop year; or
                    ``(B) at least 3 of the 10 crop years preceding the 
                2002 crop year.
            ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
        owner or producer, with respect to any agricultural commodity 
        planted or considered planted, on land if the land--
                    ``(A) has been planted, considered planted, or 
                devoted to an agricultural commodity during at least 1 
                of the 20 crop years preceding the 2002 crop year; and
                    ``(B) has been maintained, and will continue to be 
                maintained, using long-term crop rotation practices, as 
                determined by the Secretary.
    ``(c) Crop Insurance.--Notwithstanding any provision of the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.), the Federal Crop Insurance 
Corporation shall not pay premium subsidies or administrative costs of 
a reinsured company for insurance regarding a crop insurance policy of 
a producer under that Act unless the land that is covered by the 
insurance policy for an agricultural commodity--
            ``(1) has been planted, considered planted, or devoted to 
        an agricultural commodity during--
                    ``(A) at least 1 of the 5 crop years preceding the 
                2002 crop year; or
                    ``(B) at least 3 of the 10 crop years preceding the 
                2002 crop year; or
            ``(2)(A) has been planted, considered planted, or devoted 
        to an agricultural commodity during at least 1 of the 20 crop 
        years preceding the 2002 crop year; and
            ``(B) has been maintained, and will continue to be 
        maintained, using long-term crop rotation practices, as 
        determined by the Secretary.
    ``(d) Conservation Reserve Land.--For purposes of this section, 
land that is enrolled in 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.) shall be considered 
planted to an agricultural commodity.
    ``(e) Land Under the Jurisdiction of an Indian Tribe.--For purposes 
of this section, land that is under the jurisdiction of an Indian tribe 
(as defined in section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b)) shall be considered planted to an 
agricultural commodity if--
            ``(1) the land is planted to an agricultural commodity 
        after the date of enactment of this subsection as part of an 
        irrigation project that--
                    ``(A) is authorized by the Bureau of Reclamation or 
                the Bureau of Indian Affairs; and
                    ``(B) is under construction prior to the date of 
                enactment of this subsection; or
            ``(2) the land becomes available for planting because of a 
        settlement or statutory authorization of a water rights claim 
        by an Indian tribe after the date of enactment of this 
        subsection.''.
    (b) Partial Restoration of Benefits to Legal Immigrants.--Section 
403(c)(2)(L) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(L)) (as amended by 
section 452(a)(2)(A)) is amended by inserting ``provided to individuals 
under the age of 18'' after ``benefits''.
    (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)) (as amended by section 452(c)(2)) is 
        amended by adding at the end the following:
                    ``(M) Food stamp exception for certain qualified 
                aliens.--
                            ``(i) With respect to eligibility for 
                        benefits for the specified Federal program 
                        described in paragraph (3)(B), paragraph (1) 
                        shall not apply, subject to the exclusion in 
                        clause (ii), to any individual who has 
                        continuously resided in the United States as a 
                        qualified alien for a period of 5 years or more 
                        beginning on the date on which the qualified 
                        alien entered the United States.
                            ``(ii) No alien who enters the country 
                        illegally and remains in the United States 
                        illegally for a period of one year or longer or 
                        has been in the United States as an illegal 
                        alien for a period of one year or longer, 
                        regardless of their status upon entering the 
                        country or their current status as a qualified 
                        alien, shall be eligible under clause (i) for 
                        benefits for the specified Federal program 
                        described in paragraph (3)(B).
                            ``(iii) Clause (ii) shall not apply to a 
                        qualified alien who has continuously resided in 
                        the United States for a period of 5 years or 
                        more as of the date of enactment of this 
                        Act.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect on April 1, 2003.

SEC. 171. REDUCTION OF COMMODITY BENEFITS TO IMPROVE NUTRITION 
              ASSISTANCE.

    (a) Income Protection Prices for Counter-Cyclical Payments.--
Section 114(c) of the Federal Agriculture Improvement and Reform Act of 
1996 (as amended by section 111) is amended by striking paragraph (2) 
and inserting the following:
            ``(2) Income protection prices.--The income protection 
        prices for contract commodities under paragraph (1)(A) are as 
        follows:
                    ``(A) Wheat, $3.4460 per bushel.
                    ``(B) Corn, $2.3472 per bushel.
                    ``(C) Grain sorghum, $2.3472 per bushel.
                    ``(D) Barley, $2.1973 per bushel.
                    ``(E) Oats, $1.5480 per bushel.
                    ``(F) Upland cotton, $0.6793 per pound.
                    ``(G) Rice, $9.2914 per hundredweight.
                    ``(H) Soybeans, $5.7431 per bushel.
                    ``(I) Oilseeds (other than soybeans), $0.1049 per 
                pound.''.
    (b) Loan Rates for Marketing Assistance Loans.--
            (1) In general.--Section 132 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (as amended by section 
        123(a)) is amended to read as follows:

``SEC. 132. LOAN RATES.

    ``The loan rate for a marketing assistance loan under section 131 
for a loan commodity shall be--
            ``(1) in the case of wheat, $2.9960 per bushel;
            ``(2) in the case of corn, $2.0772 per bushel;
            ``(3) in the case of grain sorghum, $2.0772 per bushel;
            ``(4) in the case of barley, $1.9973 per bushel;
            ``(5) in the case of oats, $1.4980 per bushel;
            ``(6) in the case of upland cotton, $0.5493 per pound;
            ``(7) in the case of extra long staple cotton, $0.7965 per 
        pound;
            ``(8) in the case of rice, $6.4914 per hundredweight;
            ``(9) in the case of soybeans, $5.1931 per bushel;
            ``(10) in the case of oilseeds (other than soybeans), 
        $0.0949 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, $2.00 per pound;
            ``(14) in the case of honey, $0.60 per pound;
            ``(15) in the case of dry peas, $6.78 per hundredweight;
            ``(16) in the case of lentils, $12.79 per hundredweight;
            ``(17) in the case of large chickpeas, $17.44 per 
        hundredweight; and
            ``(18) in the case of small chickpeas, $8.10 per 
        hundredweight.''.
            (2) Adjustment of loans.--
                    (A) In general.--The amendment made by section 
                123(b) is repealed.
                    (B) Applicability.--Section 162 of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7282) shall be applied and administered as if 
                the amendment made by section 123(b) had not been 
                enacted.
    (c) Food Stamp Program.--
            (1) Simplified resource eligibility limit.--Section 5(g)(1) 
        of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(1)) is amended 
        by striking ``a member who is 60 years of age or older'' and 
        inserting ``an elderly or disabled member''.
            (2) Increase in benefits to households with children.--
        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.--Subject to the other provisions 
                of this paragraph, the Secretary shall allow a standard 
                deduction for each household that is--
                            ``(i) equal to the applicable percentage 
                        specified in subparagraph (D) of the income 
                        standard of eligibility established under 
                        subsection (c)(1); but
                            ``(ii) not less than the minimum deduction 
                        specified in subparagraph (E).
                    ``(B) Guam.--The Secretary shall allow a standard 
                deduction for each household in Guam that is--
                            ``(i) equal to the applicable percentage 
                        specified in subparagraph (D) 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 less than the minimum deduction 
                        for Guam specified in subparagraph (E).
                    ``(C) Households of 6 or more members.--The income 
                standard of eligibility established under subsection 
                (c)(1) for a household of 6 members shall be used to 
                calculate the standard deduction for each household of 
                6 or more members.
                    ``(D) Applicable percentage.--For the purpose of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) 8 percent for each of fiscal years 
                        2002 through 2004;
                            ``(ii) 8.5 percent for each of fiscal years 
                        2005 through 2007;
                            ``(iii) 9 percent for each of fiscal years 
                        2008 through 2010; and
                            ``(iv) 10 percent for each fiscal year 
                        thereafter.
                    ``(E) Minimum deduction.--The minimum deduction 
                shall be $134, $229, $189, $269, and $118 for the 48 
                contiguous States and the District of Columbia, Alaska, 
                Hawaii, Guam, and the Virgin Islands of the United 
                States, respectively.''.
            (3) Effectiveness of certain provisions.--Sections 413 and 
        165(c)(1) shall have no effect.

SEC. 172. REPORTS ON EQUITABLE RELIEF AND MISACTION-MISINFORMATION 
              REQUESTS.

    Section 195 of the Federal Agriculture Improvement and Reform Act 
of 1996 (Public Law 104-127; 110 Stat. 946) is amended to read as 
follows:

``SEC. 195. REPORTS ON EQUITABLE RELIEF AND MISACTION-MISINFORMATION 
              REQUESTS.

    ``(a) In General.--Not later than 90 days after the date of 
enactment of the Agriculture, Conservation, and Rural Enhancement Act 
of 2002 and not later than December 1 of fiscal year 2003 and each 
subsequent fiscal 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--
            ``(1) the number of requests received by the Secretary 
        during the preceding fiscal year for equitable relief under 
        programs carried out by the Farm Service Agency and the Natural 
        Resources Conservation Service, including a description (by 
        program) of--
                    ``(A) the number of requests received;
                    ``(B) the number of requests approved by the 
                Secretary; and
                    ``(C) the basis for the approval or denial of the 
                requests; and
            ``(2) the number of requests received by the Secretary 
        during the preceding fiscal year for relief described in 
        section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 
        1339a) with respect to programs carried out under this title, 
        including a description (by program) of--
                    ``(A) the number of requests received;
                    ``(B) the number of requests approved by the 
                Secretary; and
                    ``(C) the basis for the approval or denial of the 
                requests.
    ``(b) Appeals.--The Secretary, acting through the Director of the 
National Appeals Division, shall include in each report submitted under 
subsection (a) a description of actions taken by the Division taken 
during the preceding fiscal year with respect to requests for relief 
described in subsection (a).''.

SEC. 173. ESTIMATES OF NET FARM INCOME.

    Title I of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7201 et seq.) is amended by adding at the end the 
following:

``SEC. 197. 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--
                    ``(A) livestock;
                    ``(B) loan commodities; and
                    ``(C) agricultural commodities other than loan 
                commodities.''.

SEC. 174. 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. 175. AGRICULTURAL PRODUCERS SUPPLEMENTAL PAYMENTS AND ASSISTANCE.

    (a) In General.--The Secretary of Agriculture may use such funds of 
the Commodity Credit Corporation as are necessary to provide payments 
and assistance under Public Law 107-25 (115 Stat. 201) to persons that 
(as determined by the Secretary)--
            (1) are eligible to receive the payments or assistance; but
            (2) did not receive the payments or assistance prior to 
        October 1, 2001.
    (b) Limitation.--The amount of payments or assistance provided 
under Public Law 107-25 and this section to an eligible person 
described in subsection (a) shall not exceed the amount of payments or 
assistance the person would have been eligible to receive under Public 
Law 107-25.

               Subtitle E--Payment Limitation Commission

SEC. 181. ESTABLISHMENT OF COMMISSION.

    (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 subtitle as the ``Commission'').
    (b) Membership.--
            (1) Composition.--
                    (A) In general.--The Commission shall be composed 
                of 11 members appointed as follows:
                            (i) 3 members shall be appointed by the 
                        President, of whom 2 shall be from land grant 
                        colleges or universities and have expertise in 
                        agricultural economics.
                            (ii) 1 member shall be appointed by the 
                        Majority Leader of the Senate.
                            (iii) 1 member shall be appointed by the 
                        Minority Leader of the Senate.
                            (iv) 1 member shall be appointed by the 
                        Speaker of the House of Representatives.
                            (v) 1 member shall be appointed by the 
                        Minority Leader of the House of 
                        Representatives.
                            (vi) 1 member shall be appointed by the 
                        Chairman of the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate.
                            (vii) 1 member shall be appointed by the 
                        ranking minority member of the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate.
                            (viii) 1 member shall be appointed by the 
                        Chairman of the Committee on Agriculture of the 
                        House of Representatives.
                            (ix) 1 member shall be appointed by the 
                        ranking minority member of the Committee on 
                        Agriculture of the House of Representatives.
                    (B) Diversity of views.--The appointing authorities 
                under subparagraph (A) shall seek to ensure that the 
                membership of the Commission has a diversity of 
                experiences and expertise on the issues to be studied 
                by the Commission, such as agricultural production, 
                agricultural lending, farmland appraisal, agricultural 
                accounting and finance, and other relevant areas.
            (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.
    (c) Term; Vacancies.--
            (1) Term.--A member shall be appointed for the life of the 
        Commission.
            (2) Vacancies.--A vacancy on the Commission--
                    (A) shall not affect the powers of the Commission; 
                and
                    (B) shall be filled in the same manner as the 
                original appointment was made.
    (d) 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.
    (e) Meetings.--The Commission shall meet--
            (1) on a regular basis, as determined by the Chairperson; 
        and
            (2) at the call of the Chairperson or a majority of the 
        members of the Commission.
    (f) 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.
    (g) Chairperson.--The Secretary shall appoint 1 of the members of 
the Commission to serve as Chairperson of the Commission.

SEC. 182. DUTIES.

    (a) Comprehensive Review.--The Commission shall conduct a 
comprehensive review of--
            (1) the laws (including regulations) that apply or fail to 
        apply payment limitations to agricultural commodity and 
        conservation programs administered by the Secretary;
            (2) the impact that failing to apply effective payment 
        limitations has on--
                    (A) the agricultural producers that participate in 
                the programs;
                    (B) overproduction of agricultural commodities;
                    (C) the prices that agricultural producers receive 
                for agricultural commodities in the marketplace; and
                    (D) land prices and rental rates;
            (3) the feasibility of improving the application and 
        effectiveness of payment limitation requirements, including the 
        use of commodity certificates and the forfeiture of loan 
        collateral; and
            (4) alternatives to payment limitation requirements in 
        effect on the date of enactment of this Act that would apply 
        meaningful limitations to improve the effectiveness and 
        integrity of the requirements.
    (b) Recommendations.--In carrying out the review under subsection 
(a), the Commission shall develop specific recommendations for 
modifications to applicable legislation and regulations that would 
improve payment limitation requirements.
    (c) 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 review conducted, and any recommendations developed, 
under this section.

SEC. 183. POWERS.

    (a) 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 
subtitle.
    (b) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from a 
        Federal agency such information as the Commission considers 
        necessary to carry out this subtitle.
            (2) Provision of information.--On request of the 
        Chairperson of the Commission, the head of the agency shall 
        provide the information to the Commission.
    (c) 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.
    (d) 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.

SEC. 184. COMMISSION PERSONNEL MATTERS.

    (a) 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.
    (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.

SEC. 185. 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. 186. FUNDING.

    Of the funds of the Commodity Credit Corporation, the Secretary 
shall use not more than $100,000 to carry out this subtitle.

SEC. 187. TERMINATION OF COMMISSION.

    The Commission shall terminate on the day after the date on which 
the Commission submits the report of the Commission under section 
182(c).

              Subtitle F--Emergency Agriculture Assistance

SEC. 191. INCOME LOSS ASSISTANCE.

    (a) In General.--The Secretary of Agriculture (referred to in this 
subtitle as the ``Secretary'') shall use $1,800,000,000 of funds of the 
Commodity Credit Corporation to make emergency financial assistance 
available to producers on a farm that have incurred qualifying income 
losses in calendar year 2001, including losses due to army worms.
    (b) Administration.--The Secretary shall make assistance available 
under this section in the same manner as provided under section 815 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 
Stat. 1549A-55), including using the same loss thresholds for the 
quantity and economic losses as were used in administering that 
section.
    (c) Use of Funds for Cash Payments.--The Secretary may use funds 
made available under this section to make, in a manner consistent with 
this section, cash payments not for crop disasters, but for income loss 
to carry out the purposes of this section.

SEC. 192. LIVESTOCK ASSISTANCE PROGRAM.

    (a) In General.--The Secretary shall use $500,000,000 of the funds 
of the Commodity Credit Corporation to make and administer payments for 
livestock losses to producers for 2001 losses in a county that has 
received an emergency designation by the President or the Secretary 
after January 1, 2001, of which $12,000,000 shall be made available for 
the American Indian livestock program under section 806 of the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 
Stat. 1549A-51).
    (b) Administration.--The Secretary shall make assistance available 
under this section in the same manner as provided under section 806 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 105-277; 114 
Stat. 1549A-51).

SEC. 193. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.

    (a) In General.--The Secretary of Agriculture shall use 
$100,000,000 of funds of the Commodity Credit Corporation for fiscal 
year 2002 to make payments to apple producers, as soon as practicable 
after the date of enactment of this Act, for the loss of markets during 
the 2000 crop year.
    (b) Payment Quantity.--A payment to the producers on a farm for the 
2000 crop year under this section shall be made on the lesser of--
            (1) the quantity of apples produced by the producers on the 
        farm during the 2000 crop year; or
            (2) 5,000,000 pounds of apples.
    (c) Limitations.--The Secretary shall not establish a payment 
limitation, or income eligibility limitation, with respect to payments 
made under this section.

SEC. 194. COMMODITY CREDIT CORPORATION.

    The Secretary shall use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out this subtitle.

SEC. 195. ADMINISTRATIVE EXPENSES.

    (a) In General.--In addition to funds otherwise available, not 
later than 30 days after the date of enactment of this Act, out of any 
funds in the Treasury not otherwise appropriated, the Secretary of the 
Treasury shall transfer to the Secretary of Agriculture to pay the 
salaries and expenses of the Department of Agriculture in carrying out 
this subtitle $50,000,000, to remain available until expended.
    (b) Receipt and Acceptance.--The Secretary shall be entitled to 
receive, shall accept, and shall use to carry out this section the 
funds transferred under subsection (a), without further appropriation.

SEC. 196. REGULATIONS.

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

SEC. 197. EMERGENCY REQUIREMENT.

    The entire amount necessary to carry out this subtitle is 
designated by Congress as an emergency requirement pursuant to section 
252(e) of the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(e)).

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

SEC. 201. CONSERVATION SECURITY PROGRAM.

    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 the 
        amount paid to a producer under a conservation security 
        contract that is equal to the total of the amounts described in 
        clauses (i) and (ii) of subparagraphs (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 provided under section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1999(a)).
            ``(3) Bonus amount.--The term `bonus amount' means the 
        amount paid to a producer under a conservation security 
        contract that is equal to the total of the amounts described in 
        clauses (iii) and (iv) of subparagraph (C), and of clause (iii) 
        of subparagraph (D) or (E), of section 1238C(b)(1), as 
        appropriate.
            ``(4) Conservation practice.--The term `conservation 
        practice' means a land-based farming technique that--
                    ``(A) requires planning, implementation, 
                management, and maintenance; and
                    ``(B) promotes 1 or more of the purposes described 
                in section 1238A(a).
            ``(5) Conservation security contract.--The term 
        `conservation security contract' means a contract described in 
        section 1238A(e).
            ``(6) Conservation security plan.--The term `conservation 
        security plan' means a plan described in section 1238A(c).
            ``(7) Conservation security program.--The term 
        `conservation security program' means the program established 
        under section 1238A(a).
            ``(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) Nutrient management.--The term `nutrient management' 
        means management of the quantity, source, placement, form, and 
        timing of the land application of nutrients and other additions 
        to soil on land enrolled in the conservation security program--
                    ``(A) to achieve or maintain adequate soil 
                fertility for agricultural production;
                    ``(B) to minimize the potential for loss of 
                environmental quality, including soil, water, fish and 
                wildlife habitat, and air and water quality; and
                    ``(C) to reduce energy consumption.
            ``(10) 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.
            ``(11) Resource of concern.--The term `resource of concern' 
        means a conservation priority of a State and locality under 
        section 1238A(c)(3).
            ``(12) Resource-conserving crop.--The term `resource-
        conserving crop' means--
                    ``(A) a perennial grass;
                    ``(B) a legume grown for use as--
                            ``(i) forage;
                            ``(ii) seed for planting; or
                            ``(iii) green manure;
                    ``(C) a legume-grass mixture;
                    ``(D) a small grain grown in combination with a 
                grass or legume, whether interseeded or planted in 
                succession; and
                    ``(E) such other plantings, including trees and 
                annual grasses, as the Secretary considers appropriate 
                for a particular area.
            ``(13) Resource-conserving crop rotation.--The term 
        `resource-conserving crop rotation' means a crop rotation 
        that--
                    ``(A) includes at least 1 resource-conserving crop;
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth; and
                    ``(D) interrupts pest cycles.
            ``(14) 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.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service.
            ``(16) Tier i conservation practice.--The term `Tier I 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(4)(A)(ii).
            ``(17) Tier i conservation security contract.--The term 
        `Tier I conservation security contract' means a contract 
        described in section 1238A(d)(4)(A).
            ``(18) Tier ii conservation practice.--The term `Tier II 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(4)(B)(ii).
            ``(19) Tier ii conservation security contract.--The term 
        `Tier II conservation security contract' means a contract 
        described in section 1238A(d)(4)(B).
            ``(20) Tier iii conservation practice.--The term `Tier III 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(4)(C)(ii).
            ``(21) Tier iii conservation security contract.--The term 
        `Tier III conservation security contract' means a contract 
        described in section 1238A(d)(4)(C).

``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--For each of fiscal years 2003 through 2006, the 
Secretary shall establish a conservation security program to assist 
owners and operators of agricultural operations to promote, as is 
applicable for each operation--
            ``(1) conservation of soil, water, energy, and other 
        related resources;
            ``(2) soil quality protection and improvement;
            ``(3) water quality protection and improvement;
            ``(4) air quality protection and improvement;
            ``(5) soil, plant, or animal health and well-being;
            ``(6) diversity of flora and fauna;
            ``(7) on-farm conservation and regeneration of biological 
        resources, including plant and animal germplasm;
            ``(8) wetland restoration, conservation, and enhancement;
            ``(9) wildlife habitat management, with special emphasis on 
        species identified by any natural heritage program of the 
        applicable State;
            ``(10) reduction of greenhouse gas emissions and 
        enhancement of carbon sequestration;
            ``(11) environmentally sound management of invasive 
        species; or
            ``(12) any similar conservation purpose (as determined by 
        the Secretary).
    ``(b) Eligibility.--
            ``(1) Eligible owners and operators.--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.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C)(iii), private agricultural land 
                (including cropland, grassland, prairie land, pasture 
                land, and rangeland) and land under the jurisdiction of 
                an Indian tribe shall be eligible for enrollment in the 
                conservation security program.
                    ``(B) Forested land.--Private forested land shall 
                be eligible for enrollment in the conservation security 
                program if the forested land is part of the 
                agricultural land described in subparagraph (A), 
                including land that is used for--
                            ``(i) alley cropping;
                            ``(ii) forest farming;
                            ``(iii) forest buffers;
                            ``(iv) windbreaks;
                            ``(v) silvopasture systems; and
                            ``(vi) such other integrated agroforestry 
                        uses as the Secretary may determine to be 
                        appropriate.
                    ``(C) Exclusions.--
                            ``(i) 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 except for land described in 
                        section 1231(b)(6).
                            ``(ii) 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.
                            ``(iii) Conversion to cropland.--Land that 
                        is used for crop production after the date of 
                        enactment of this subchapter that had not been 
                        in crop production for at least 3 of the 10 
                        years preceding that date (except for land 
                        enrolled in the conservation reserve program 
                        under subchapter B of chapter 1) shall not be 
                        eligible for enrollment in the conservation 
                        security program.
            ``(3) Sustainable economic uses.--The Secretary shall 
        permit a producer to implement, with respect to all eligible 
        land covered by a conservation security plan, sustainable 
        economic uses (including Tier II conservation practices) that--
                    ``(A) maintain the agricultural nature of the land; 
                and
                    ``(B) are consistent with the natural resource and 
                environmental benefits of the conservation security 
                plan.
    ``(c) Conservation Security Plans.--
            ``(1) In general.--A conservation security plan shall--
                    ``(A) identify the resources and designated land to 
                be conserved under the conservation security plan;
                    ``(B) describe--
                            ``(i) the tier of conservation security 
                        contracts, 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
                            ``(ii) as appropriate for the land covered 
                        by the conservation security contract, the 
                        minimum number, type, extent, and scope of 
                        conservation practices described in clause (i) 
                        that are required to be carried out on the land 
                        before the producer is eligible to receive--
                                    ``(I) a base payment; and
                                    ``(II) a bonus amount;
                    ``(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;
                    ``(D) meet the highly erodible land and wetland 
                conservation requirements of subtitles B and C; and
                    ``(E) identify, and authorize the implementation 
                of, sustainable economic uses described in subsection 
                (b)(3).
            ``(2) Comprehensive planning.--The Secretary shall 
        encourage owners and operators that enter into conservation 
        security contracts--
                    ``(A) to undertake a comprehensive examination of 
                the opportunities for conserving natural resources and 
                improving the profitability, environmental health, and 
                quality of life in relation to their entire 
                agricultural operation;
                    ``(B) to develop a long-term strategy for 
                implementing, monitoring, and evaluating conservation 
                practices and environmental results in the entire 
                agricultural operation;
                    ``(C) to participate in other Federal, State, 
                local, or private conservation programs;
                    ``(D) to maintain the agricultural integrity of the 
                land; and
                    ``(E) to adopt innovative conservation technologies 
                and management practices or update existing 
                technologies and practices.
            ``(3) State, tribal, and local conservation priorities.--
                    ``(A) In general.--To the maximum extent 
                practicable and in a manner consistent with the 
                conservation security program, each conservation 
                security plan shall address, at least, the conservation 
                priorities of the State or Indian tribe, and locality 
                in which the agricultural operation is located.
                    ``(B) Administration.--The conservation priorities 
                of the State, Indian tribe, and locality in which the 
                agricultural operation is located shall be--
                            ``(i)(I) determined by the State 
                        conservationist, in consultation with the State 
                        technical committee established under subtitle 
                        G and the local subcommittee of the State 
                        technical committee; and
                            ``(II) approved by the Secretary; and
                            ``(ii) in the case of land under the 
                        jurisdiction of an Indian tribe--
                                    ``(I) determined by the Indian 
                                tribe, after consultation with the 
                                Secretary; and
                                    ``(II) approved by the Secretary.
            ``(4) Submission of plan.--
                    ``(A) In general.--During the development of a 
                conservation security plan by a producer, at the 
                request of the producer, the Secretary shall supply to 
                the producer a statement of the minimum number, type, 
                and scope of conservation practices described in 
                paragraph (1)(B)(ii).
                    ``(B) Approval for base payments.--If a 
                conservation security plan submitted to the Secretary 
                contains, in addition to paragraph (1)(C), the 
                conservation practices referred to in paragraph 
                (1)(B)(ii)--
                            ``(i) the Secretary shall approve the 
                        conservation security plan; and
                            ``(ii) the producer of the conservation 
                        security plan, on approval of and compliance 
                        with the plan, as determined by the Secretary, 
                        shall be eligible to receive a base payment.
                    ``(C) Approval for bonus amounts.--If a 
                conservation security plan submitted to the Secretary 
                contains a proposal for the implementation, 
                maintenance, or improvement of a conservation practice 
                that qualifies for a bonus amount under section 
                1238C(b)(1)(C)(iii), the Secretary may increase the 
                payment of the producer by such bonus amount as the 
                Secretary determines is appropriate.
    ``(d) Conservation Contracts and Practices.--
            ``(1) In general.--
                    ``(A) Establishment of tiers.--The Secretary shall 
                establish 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 that--
                                    ``(I) are necessary to achieve the 
                                purposes of the conservation security 
                                plan; and
                                    ``(II) primarily provide for, and 
                                have as a primary purpose, resource 
                                protection and environmental 
                                improvement.
                            ``(ii) Determination.--
                                    ``(I) In general.--Subject to 
                                subclause (II), in determining the 
                                eligibility of a practice described in 
                                clause (i), the Secretary shall 
                                require, to the maximum extent 
                                practicable, the lowest cost 
                                alternatives be used to fulfill the 
                                purposes of the conservation security 
                                plan, as determined by the Secretary.
                                    ``(II) Innovative technologies.--
                                Subclause (I) shall not apply, to the 
                                maximum extent practicable, to the 
                                adoption of innovative technologies.
            ``(2) On-farm research and demonstration.--With respect to 
        land enrolled in the conservation security program that will be 
        maintained using a Tier II conservation practice or a Tier III 
        conservation practice, the Secretary may approve a conservation 
        security plan that includes on-farm conservation research and 
        demonstration activities, including--
                    ``(A) total farm planning;
                    ``(B) total resource management;
                    ``(C) integrated farming systems;
                    ``(D) germplasm conservation and regeneration;
                    ``(E) greenhouse gas reduction and carbon 
                sequestration;
                    ``(F) agroecological restoration and wildlife 
                habitat restoration;
                    ``(G) agroforestry;
                    ``(H) invasive species control;
                    ``(I) energy conservation and management;
                    ``(J) farm and environmental results monitoring and 
                evaluation; or
                    ``(K) participation in research projects relating 
                to water conservation and management through--
                            ``(i) recycling or reuse of water; or
                            ``(ii) more efficient irrigation of 
                        farmland.
            ``(3) Use of handbook and guides.--
                    ``(A) In general.--In determining eligible 
                conservation practices under the conservation security 
                program, the Secretary shall use the National Handbook 
                of Conservation Practices of the Natural Resources 
                Conservation Service.
                    ``(B) Conservation practice standards.--To the 
                maximum extent practicable, the Secretary shall 
                establish guidance standards for implementation of 
                eligible conservation practices that shall include 
                measurable goals for enhancing and preventing 
                degradation of resources.
                    ``(C) Adjustments.--
                            ``(i) In general.--After providing notice 
                        and an opportunity for public participation, 
                        the Secretary shall make such adjustments to 
                        the National Handbook of Conservation 
                        Practices, and the field office technical 
                        guides, of the Natural Resources Conservation 
                        Service as are necessary to carry out this 
                        chapter.
                            ``(ii) Effect on plan.--If the Secretary 
                        makes an adjustment to a practice under clause 
                        (i), the Secretary may require an adjustment to 
                        a conservation security plan in effect as of 
                        the date of the adjustment if the Secretary 
                        determines that the plan, without the 
                        adjustment, would significantly interfere with 
                        achieving the purposes of the conservation 
                        security program.
                    ``(D) Pilot testing.--
                            ``(i) In general.--Under any of the 3 tiers 
                        of conservation practices established under 
                        paragraph (4), the Secretary may approve 
                        requests by a producer for pilot testing of new 
                        technologies and innovative conservation 
                        practices and systems.
                            ``(ii) Incorporation into standards.--
                                    ``(I) In general.--After evaluation 
                                by the Secretary and provision of 
                                notice and an opportunity for public 
                                participation, the Secretary may, as 
                                expeditiously as practicable, approve 
                                new technologies and innovative 
                                conservation practices and systems.
                                    ``(II) Incorporation.--If the 
                                Secretary approves a new technology or 
                                innovative conservation practice under 
                                subclause (I), the Secretary shall, as 
                                expeditiously as practicable, 
                                incorporate the technology or practice 
                                into the standards for implementation 
                                of conservation practices established 
                                under paragraph (3).
            ``(4) Tiers.--Subject to paragraph (5), to carry out this 
        subsection, the Secretary shall establish the following 3 tiers 
        of conservation contracts:
                    ``(A) Tier i conservation contracts.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program under a Tier I conservation 
                        security contract shall be maintained using 
                        Tier I conservation practices and shall, at a 
                        minimum--
                                    ``(I) if applicable to the 
                                particular agricultural operation, 
                                address at least 1 resource of concern;
                                    ``(II) apply to the total 
                                agricultural operation or to a 
                                particular unit of the agricultural 
                                operation;
                                    ``(III) cover--
                                            ``(aa) management of 
                                        conservation practices that are 
                                        being implemented as of the 
                                        date on which the conservation 
                                        security contract is entered 
                                        into; and
                                            ``(bb) conservation 
                                        practices that are implemented 
                                        after the date on which the 
                                        conservation security contract 
                                        is entered into; and
                                    ``(IV) meet applicable standards 
                                for implementation of conservation 
                                practices established under paragraph 
                                (3).
                            ``(ii) Conservation practices.--Tier I 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of a 
                        producer, 1 or more of the following basic 
                        conservation activities:
                                    ``(I) Nutrient management.
                                    ``(II) Integrated pest management.
                                    ``(III) Irrigation, water 
                                conservation, and water quality 
                                management.
                                    ``(IV) Grazing pasture and 
                                rangeland management.
                                    ``(V) Soil conservation, quality, 
                                and residue management.
                                    ``(VI) Invasive species management.
                                    ``(VII) Fish and wildlife habitat 
                                management, with special emphasis on 
                                species identified by any natural 
                                heritage program of the applicable 
                                State or the appropriate State agency.
                                    ``(VIII) Fish and wildlife 
                                conservation and enhancement.
                                    ``(IX) Air quality management.
                                    ``(X) Energy conservation measures.
                                    ``(XI) Biological resource 
                                conservation and regeneration.
                                    ``(XII) Animal health management.
                                    ``(XIII) Plant and animal germplasm 
                                conservation, evaluation, and 
                                development.
                                    ``(XIV) Contour farming.
                                    ``(XV) Strip cropping.
                                    ``(XVI) Cover cropping.
                                    ``(XVII) Sediment dams.
                                    ``(XVIII) Any other conservation 
                                practice that the Secretary determines 
                                to be appropriate and comparable to 
                                other conservation practices described 
                                in this clause.
                            ``(iii) Tier ii conservation contracts.--A 
                        conservation security plan for land enrolled in 
                        the conservation security program that will be 
                        maintained using Tier I conservation contracts 
                        may include Tier II conservation practices.
                    ``(B) Tier ii conservation practices.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program under a Tier II conservation 
                        security contract shall be maintained using 
                        Tier II conservation practices and shall, at a 
                        minimum--
                                    ``(I) as applicable to the 
                                particular agricultural operation, 
                                address at least 1 resource of concern 
                                for the entire agricultural operation;
                                    ``(II) cover--
                                            ``(aa) management of 
                                        conservation practices that are 
                                        being implemented as of the 
                                        date on which the conservation 
                                        security contract is entered 
                                        into; and
                                            ``(bb) conservation 
                                        practices that are implemented 
                                        after the date on which the 
                                        conservation security contract 
                                        is entered into; and
                                    ``(III) meet applicable resource 
                                management system criteria for 1 or 
                                more resources of concern of the 
                                agricultural operation, as specified in 
                                the conservation security contract.
                            ``(ii) Conservation practices and 
                        requirements.--Tier II conservation practices 
                        and requirements shall consist of, as 
                        appropriate for the agricultural operation of a 
                        producer, any of the Tier I conservation 
                        practices and 1 or more of the following land 
                        use adjustment or protection practices:
                                    ``(I) Resource-conserving crop 
                                rotations.
                                    ``(II) Controlled, rotational 
                                grazing.
                                    ``(III) Conversion of portions of 
                                cropland from a soil-depleting use to a 
                                soil-conserving use, including 
                                production of cover crops.
                                    ``(IV) Partial field conservation 
                                practices (including windbreaks, grass 
                                waterways, shelter belts, filter 
                                strips, riparian buffers, wetland 
                                buffers, contour buffer strips, living 
                                snow fences, crosswind trap strips, 
                                field borders, grass terraces, wildlife 
                                corridors, and critical area planting 
                                appropriate to the agricultural 
                                operation).
                                    ``(V) Fish and wildlife habitat 
                                conservation and restoration.
                                    ``(VI) Native grassland and prairie 
                                protection and restoration.
                                    ``(VII) Wetland protection and 
                                restoration.
                                    ``(VIII) Agroforestry practices and 
                                systems as described in subsection 
                                (b)(2)(B).
                                    ``(IX) Any other conservation 
                                practice involving modification of the 
                                use of land that the Secretary 
                                determines to be appropriate and 
                                comparable to other conservation 
                                practices described in this clause.
                    ``(C) Tier iii conservation contracts.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program under a Tier III conservation 
                        security contract shall be maintained using 
                        Tier III conservation contracts and shall, at a 
                        minimum--
                                    ``(I) address all applicable 
                                resources of concern in the total 
                                agricultural operation;
                                    ``(II) cover--
                                            ``(aa) management of 
                                        conservation practices that are 
                                        being implemented as of the 
                                        date on which the conservation 
                                        security contract is entered 
                                        into; and
                                            ``(bb) conservation 
                                        practices that are implemented 
                                        after the date on which the 
                                        conservation security contract 
                                        is entered into; and
                                    ``(III) meet applicable resource 
                                management system criteria for 1 or 
                                more resources of concern of the 
                                agricultural operation, as specified in 
                                the conservation security contract.
                            ``(ii) Conservation practices.--Tier III 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of a 
                        producer (in addition to appropriate Tier I 
                        conservation practices and Tier II conservation 
                        practices), development, implementation, and 
                        maintenance of a conservation security plan 
                        that, over the term of the conservation 
                        security contract--
                                    ``(I) integrates all necessary 
                                conservation practices to foster 
                                environmental enhancement and the long-
                                term sustainability of the natural 
                                resource base of an agricultural 
                                operation; and
                                    ``(II) improves profitability and 
                                sustainability associated with the 
                                agricultural operation.
            ``(5) Minimum requirements.--The minimum requirements for 
        each tier of conservation practices described in paragraph (4) 
        shall be--
                    ``(A)(i) determined by the State conservationist, 
                in consultation with the State technical committee 
                established under subtitle G and the local subcommittee 
                of the State technical committee; and
                    ``(ii) approved by the Secretary; and
                    ``(B) in the case of land under the jurisdiction of 
                an Indian tribe--
                            ``(i) determined by the Indian tribe, after 
                        consultation with the Secretary; and
                            ``(ii) approved by the Secretary.
    ``(e) Conservation Security Contracts.--
            ``(1) Contracts.--
                    ``(A) 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.
                    ``(B) Required components.--A conservation security 
                contract shall specifically describe the practices that 
                are required under subsection (c)(1)(B).
            ``(2) Term.--Subject to paragraphs (3) and (4)--
                    ``(A) a conservation security contract for land 
                enrolled in the conservation security program of a 
                producer that will be maintained using 1 or more Tier I 
                conservation contracts shall have a term of 5 years; 
                and
                    ``(B) a conservation security contract for land 
                enrolled in the conservation security program that will 
                be maintained using a Tier II conservation contract or 
                Tier III conservation contract shall have a 5-year to 
                10-year term, as determined by the producer.
            ``(3) Modifications.--
                    ``(A) Optional modifications.--
                            ``(i) In general.--An owner or operator may 
                        apply to the Secretary to modify the 
                        conservation security plan to effectuate the 
                        purposes of the conservation security program.
                            ``(ii) Approval by the secretary.--To be 
                        effective, any modification under clause (i)--
                                    ``(I) shall be approved by the 
                                Secretary; and
                                    ``(II) shall authorize the 
                                Secretary to redetermine, if necessary, 
                                the amount and timing of the payments 
                                under the conservation security 
                                contract and subsections (a) and (b) of 
                                section 1238C.
                    ``(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--
                                    ``(I) 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; or
                                    ``(II) the Secretary makes a change 
                                to the National Handbook of 
                                Conservation Practices of the Natural 
                                Resource Conservation Service under 
                                subsection (d)(3)(C).
                            ``(ii) Payments.--The Secretary may adjust 
                        the amount and timing of the payment schedule 
                        under the conservation security contract to 
                        reflect any modifications made under this 
                        subparagraph.
                            ``(iii) Deadline.--The Secretary may 
                        terminate a conservation security contract if a 
                        modification required under this subparagraph 
                        is not submitted to the Secretary in the form 
                        of an amended conservation security contract by 
                        the date that is 90 days after the date on 
                        which the Secretary issues a written request 
                        for the modification.
                            ``(iv) Termination.--a producer that is 
                        required to modify a conservation security 
                        contract under this subparagraph 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 fully 
                                complied with the terms and conditions 
                                of the conservation security contract 
                                before termination of the contract.
            ``(4) Renewal.--
                    ``(A) In general.--At the option of a producer, the 
                conservation security contract of the producer may be 
                renewed, for a term described in subparagraph (B), if--
                            ``(i) the producer agrees to any 
                        modification of the applicable conservation 
                        security contract that the Secretary determines 
                        to be necessary to achieve the purposes of the 
                        conservation security program;
                            ``(ii) the Secretary determines that the 
                        producer has complied with the terms and 
                        conditions of the conservation security 
                        contract, including the conservation security 
                        plan; and
                            ``(iii) in the case of a Tier I 
                        conservation security contract, the producer 
                        agrees to increase the conservation practices 
                        on land enrolled in the conservation security 
                        program by--
                                    ``(I) adopting new conservation 
                                practices; or
                                    ``(II) expanding existing practices 
                                to meet applicable resource management 
                                systems criteria.
                    ``(B) Terms of renewal.--Under subparagraph (A)--
                            ``(i) a conservation security contract for 
                        land enrolled in the conservation security 
                        program that will be maintained using Tier I 
                        conservation contracts may be renewed for 5-
                        year terms;
                            ``(ii) in the case of a Tier II 
                        conservation security contract or a Tier III 
                        conservation security contract, the contract 
                        shall be renewed for 5-year to 10-year terms, 
                        at the option of the producer; and
                            ``(iii) participation in the conservation 
                        security program prior to the renewal of the 
                        conservation security contract shall not bar 
                        renewal more than once.
    ``(f) Noncompliance Due to Circumstances Beyond the Control of 
Producers.--The Secretary shall include in the conservation security 
contract a provision, and may modify a conservation security contract 
under subsection (e)(3)(B), 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 plan; 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 payment 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) Advance Payment.--At the time at which a producer enters into 
a conservation security contract, the Secretary shall, at the option of 
the producer, make an advance payment to the producer in an amount not 
to exceed--
            ``(1) in the case of a Tier I conservation security 
        contract, the greater of--
                    ``(A) $1,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary;
            ``(2) in the case of a Tier II conservation security 
        contract, the greater of--
                    ``(A) $2,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary; and
            ``(3) in the case of a Tier III conservation security 
        contract, the greater of--
                    ``(A) $3,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary.
    ``(b) Annual Payments.--
            ``(1) Criteria for determining amount of payments.--
                    ``(A) Base rate.--In this paragraph, the term `base 
                rate' means the average county rental rate for the 
                specific land use during the 2001 crop year, or another 
                appropriate average county rate for the 2001 crop year, 
                that ensures regional equity, as determined by the 
                Secretary.
                    ``(B) Payments.--A payment for a conservation 
                practice under this paragraph shall be determined in 
                accordance with subparagraphs (C) through (F).
                    ``(C) Tier i conservation contracts.--The payment 
                for a Tier I conservation security contract shall be 
                comprised of the total of the following amounts:
                            ``(i) An amount equal to 6 percent of the 
                        base rate for land covered by the contract.
                            ``(ii) An amount equal to the following 
                        costs of practices covered by the conservation 
                        security contract, based on the average county 
                        costs for such practices for the 2001 crop 
                        year, as determined by the Secretary:
                                    ``(I) 100 percent of the cost of--
                                            ``(aa) the adoption of new 
                                        management practices; and
                                            ``(bb) the maintenance of 
                                        new and existing land 
                                        management and vegetative 
                                        practices.
                                    ``(II) 100 percent of the cost of 
                                maintenance of existing land-based 
                                structural practices approved by the 
                                Secretary.
                                    ``(III)(aa) 75 percent (or, in the 
                                case of a limited resource producer (as 
                                determined by the Secretary) or a 
                                beginning farmer or rancher, 90 
                                percent) of the cost of adoption of new 
                                land-based structural practices; or
                                    ``(bb) 75 percent (or, in the case 
                                of a limited resource producer (as 
                                determined by the Secretary) or a 
                                beginning farmer or rancher, 90 
                                percent) of the cost of the adoption of 
                                a structural practice for which a 
                                similar structural practice under the 
                                environmental quality incentives 
                                program established under chapter 4 
                                would require maintenance, if the 
                                producer agrees to provide, without 
                                reimbursement, substantially equivalent 
                                maintenance.
                            ``(iii) A bonus amount determined by the 
                        Secretary for implementing or adopting 1 or 
                        more of the following practices:
                                    ``(I) A practice adopted or 
                                maintained that, because of the extent 
                                and scope of the practice, maximizes 
                                the objectives of the conservation 
                                security program beyond the minimum 
                                requirements of the practices adopted 
                                or maintained.
                                    ``(II) A practice adopted or 
                                maintained to address resources of 
                                concern and local conservation concerns 
                                beyond those identified as State or 
                                local conservation priorities.
                                    ``(III) A practice adopted or 
                                maintained to address national priority 
                                concerns, as determined by the 
                                Secretary.
                                    ``(IV) Participation by the 
                                producer in an on-farm conservation 
                                research, demonstration, or pilot 
                                project.
                                    ``(V) Participation by the producer 
                                in a watershed or regional resource 
                                conservation plan that involves at 
                                least 75 percent of producers in a 
                                targeted area.
                                    ``(VI) Recordkeeping, monitoring, 
                                and evaluation carried out by the 
                                producer that furthers the purposes of 
                                the conservation security program.
                            ``(iv) A bonus amount determined by the 
                        Secretary that reflects the status of a 
                        producer as a beginning farmer or rancher.
                    ``(D) Tier ii conservation contracts.--The payment 
                for a Tier II conservation security contract shall be 
                comprised of the total of the following amounts:
                            ``(i) An amount equal to 11 percent of the 
                        base rate for land covered by the conservation 
                        security contract.
                            ``(ii) An amount equal to the cost of 
                        practices covered by the conservation security 
                        contract, based on the average county costs for 
                        practices for the 2001 crop year, described in 
                        subparagraph (C)(ii).
                            ``(iii) A bonus amount determined by the 
                        Secretary in accordance with clauses (iii) and 
                        (iv) of subparagraph (C), except that the bonus 
                        amount under this clause may include any amount 
                        for the adoption or maintenance by the producer 
                        of any practice that exceeds resource 
                        management system standards.
                    ``(E) Tier iii conservation contracts.--The payment 
                for a Tier III conservation security contract shall be 
                comprised of the total of the following amounts:
                            ``(i) An amount equal to 20 percent of the 
                        base rate for land covered by the conservation 
                        security contract.
                            ``(ii) An amount equal to the cost of 
                        practices covered by the conservation security 
                        contract, based on the average county costs for 
                        practices for the 2001 crop year, described in 
                        subparagraph (C)(ii).
                            ``(iii) A bonus amount determined by the 
                        Secretary in accordance with subparagraph 
                        (D)(iii).
                    ``(F) Exclusion of costs for purchase or 
                maintenance of equipment or non-land based 
                structures.--A payment under this subchapter shall not 
                include any amount for the purchase or maintenance of 
                equipment or a non-land based structure.
            ``(2) Time of payment.--The Secretary shall provide 
        payments under a conservation security contract as soon as 
        practicable after October 1 of each fiscal year.
            ``(3) Limitation on payments.--
                    ``(A) In general.--Subject to paragraphs (1), (2), 
                (4), and (5), the Secretary shall, in amounts and for a 
                term specified in a conservation security contract and 
                taking into account any advance payments, make an 
                annual payment, directly or indirectly, to the 
                individual or entity covered by the 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, $50,000.
                    ``(B) Limitation on nonbonus 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 clauses (i) and (ii) of paragraph (1)(C), 
                (1)(D), or (1)(E), as appropriate, in an amount that 
                exceeds 75 percent of the applicable payment 
                limitation.
                    ``(C) Other usda payments.--If a producer has the 
                same practices on the same land enrolled in the 
                conservation security program and 1 or more other 
                conservation programs administered by the Secretary, 
                the Secretary shall include all payments from the 
                conservation security program and the other 
                conservation programs, other than payments for 
                conservation easements, in applying the annual payment 
                limitations under this paragraph.
                    ``(D) Non-usda payments.--
                            ``(i) In general.--A payment described in 
                        clause (ii) shall not be considered an annual 
                        payment for purposes of the annual payment 
                        limitations under this paragraph.
                            ``(ii) Payment.--A payment referred to in 
                        clause (i) is a payment that--
                                    ``(I) is for the same practice on 
                                the same land enrolled in the 
                                conservation security program; and
                                    ``(II) is received from a Federal 
                                program that is not administered by the 
                                Secretary, or that is administered by 
                                any State, local, or private 
                                agricultural agency or organization.
                    ``(E) Commensurate share.--To be eligible to 
                receive a payment under this chapter, 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.
            ``(4) Land enrolled in other conservation programs.--
        Notwithstanding any other provision of law, if a producer has 
        land enrolled in another conservation program administered by 
        the Secretary and has applied to enroll the same land in the 
        conservation security program, the producer may elect to--
                    ``(A) convert the contract under the other 
                conservation program to a conservation security 
                contract, without penalty, except that this 
                subparagraph shall not apply to a contract entered into 
                under--
                            ``(i) the conservation reserve program 
                        under subchapter B of chapter 1; or
                            ``(ii) the wetlands reserve program under 
                        subchapter C of chapter 1; or
                    ``(B) have each annual payment to the producer 
                under this subsection reduced to reflect payment for 
                practices the producer receives under the other 
                conservation program, except that the annual payment 
                under this subsection shall not be reduced by the 
                amount of any incentive received under a program 
                referred to in section 1231(b)(6) for qualified 
                practices that enhance or extend the conservation 
                benefit achieved under the other conservation program.
            ``(5) Waste storage or treatment facilities.--A payment to 
        a producer under this subchapter shall not be provided for the 
        purpose of construction or maintenance of animal waste storage 
        or treatment facilities or associated waste transport or 
        transfer devices for animal feeding operations.
    ``(c) Minimum Practice Requirement.--In determining a payment under 
subsection (a) or (b) for an owner, operator, or producer that receives 
a payment under another program administered by the Secretary that is 
contingent on complying with requirements under subtitle B or C of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) 
relating to the use of highly erodible land or wetland, a payment under 
this chapter for 1 or more practices on land subject to those 
requirements shall be for practices that exceed minimum requirements 
for the owner, operator, or producer under those subtitles, as 
determined by the Secretary.
    ``(d) Regulations.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations that--
                    ``(A) provide for adequate safeguards to protect 
                the interests of tenants and sharecroppers, including 
                provision for sharing payments, on a fair and equitable 
                basis; and
                    ``(B) prescribe such other rules as the Secretary 
                determines to be necessary to ensure a fair and 
                reasonable application of the limitations established 
                under subsections (a) and (b).
            ``(2) Penalties for schemes or devices.--
                    ``(A) In general.--If the Secretary determines that 
                an individual or entity has adopted a scheme or device 
                to evade, or that has the purpose of evading, the 
                regulations promulgated under paragraph (1), the 
                individual or entity shall be ineligible to participate 
                in the conservation security program for--
                            ``(i) the year for which the scheme or 
                        device was adopted; and
                            ``(ii) each of the following 5 years.
                    ``(B) Fraud.--If the Secretary determines that 
                fraud was committed in connection with the scheme or 
                device, the individual or entity shall be ineligible to 
                participate in the conservation security program for--
                            ``(i) the year for which the scheme or 
                        device was adopted; and
                            ``(ii) each of the following 10 years.
    ``(e) Termination.--
            ``(1) In general.--Subject to section 1238B, the Secretary 
        shall allow a producer to terminate the conservation security 
        contract.
            ``(2) Payments.--the producer may retain any or all 
        payments received under a terminated conservation security 
        contract if--
                    ``(A) 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
                    ``(B) the Secretary determines that termination of 
                the contract will not defeat the purposes of the 
                conservation security plan of the producer.
    ``(f) 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 the transferee.
    ``(g) Technical Assistance.--
            ``(1) In general.--For each of fiscal years 2003 through 
        2006, the Secretary shall provide technical assistance to 
        producers for the development and implementation of 
        conservation security contracts, in an amount not to exceed 20 
        percent of amounts expended for the fiscal year.
            ``(2) Coordination by the secretary.--The Secretary shall 
        provide overall technical coordination and leadership for the 
        conservation security program, including final approval of all 
        conservation security plans.
    ``(h) Conservation Security State Program.--
            ``(1) In general.--Effective October 1, 2004, the 
        Secretary, in cooperation with appropriate State agencies, may 
        permit 1 State to jointly implement a conservation security 
        program with the Secretary.
            ``(2) Eligible state.--The State referred to in paragraph 
        (1) shall be a State selected by the Secretary--
                    ``(A) in consultation with--
                            ``(i) the Committee on Agriculture of the 
                        House of Representatives; and
                            ``(ii) the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate; and
                    ``(B) after taking into consideration--
                            ``(i) the percentage of private land in 
                        agricultural production in the State; and
                            ``(ii) infrastructure in the State that is 
                        available to implement the pilot program under 
                        paragraph (1).''.

SEC. 202. FUNDING.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by adding at the end the following:
    ``(c) Conservation Security Program.--Of the funds of the Commodity 
Credit Corporation, the Corporation shall make available for each of 
fiscal years 2002 through 2006 such sums as are necessary to carry out 
subchapter A of chapter 2 (including the provision of technical 
assistance, education and outreach, and monitoring and evaluation).''.

SEC. 203. 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 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 
        environmental issues affected by agricultural production with 
        respect to--
                    ``(A) meeting the purposes of--
                            ``(i) the Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.) or comparable 
                        State or tribal laws in impaired or threatened 
                        watersheds;
                            ``(ii) the Safe Drinking Water Act (42 
                        U.S.C. 300f et seq.) or comparable State or 
                        tribal laws in watersheds providing water for 
                        drinking water supplies;
                            ``(iii) the Clean Air Act (42 U.S.C. 7401 
                        et seq.) or comparable State laws; or
                            ``(iv) other Federal, State, tribal, or 
                        local laws; or
                    ``(B) watersheds of special significance, 
                conservation priority areas described in section 
                1230(c), or other geographic areas of environmental 
                sensitivity, such as wetland, including State, multi-
                State, or tribal projects--
                            ``(i) to facilitate surface and ground 
                        water conservation;
                            ``(ii) to protect water quality;
                            ``(iii) to protect endangered or threatened 
                        species or habitat, such as conservation 
                        corridors;
                            ``(iv) to improve methods of irrigation;
                            ``(v) to convert acreage from irrigated 
                        production; or
                            ``(vi) to reduce nutrient loads of 
                        watersheds.''.
            ``(2) 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, enrollments of 
        exceptional environmental value, and sharing of technical and 
        financial resources among owners, operators, and producers and 
        among owners, operators, and producers and governmental and 
        nongovernmental organizations.
            ``(3) Flexibility.--
                    ``(A) In general.--The Secretary may enter into 
                agreements with States (including State agencies and 
                units of local government), Indian tribes, and 
                nongovernmental organizations 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) environmental enhancement and long-
                        term sustainability of the natural resource 
                        base; and
                            ``(ii) the purposes and requirements of 
                        this title.
                    ``(B) Plan.--Each party to an agreement under 
                subparagraph (A) shall submit to the Secretary, for 
                approval by the Secretary, a special project area or 
                priority area program 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 environmental benefits);
                            ``(ii) an analysis of the contribution 
                        those adjustments will make to the 
                        effectiveness of programs in achieving the 
                        purposes of the special project or priority 
                        area program;
                            ``(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 
                        or priority area program; and
                            ``(v) a plan for regular monitoring, 
                        evaluation, and reporting of progress toward 
                        the purposes of the special project or priority 
                        area program.
            ``(4) Purposes of special projects.--The purposes of 
        special projects carried out under this section shall be to 
        encourage--
                    ``(A) producers to cooperate in the installation 
                and maintenance of conservation systems that affect 
                multiple agricultural operations;
                    ``(B) the sharing of information and technical and 
                financial resources;
                    ``(C) cumulative environmental benefits across 
                operations of producers; and
                    ``(D) the development and demonstration of 
                innovative conservation methods.
            ``(5) Funding.--
                    ``(A) In general.--In addition to resources from 
                programs under subtitle D, subject to subparagraph (B), 
                the Secretary shall use 5 percent of the funds made 
                available for each fiscal year under section 1241(b) to 
                carry out activities that are authorized under the 
                environmental quality incentives program established 
                under chapter 4 of 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 the environmental 
                quality incentives program during the fiscal year in 
                which the funding becomes available.''.

SEC. 204. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    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) Good Faith Reliance.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, except as provided in paragraph (4), the Secretary shall 
        provide equitable relief to an owner, operator, or producer 
        that has entered into a contract under a conservation program 
        administered by the Secretary, and that is subsequently 
        determined to be in violation of the contract, if the owner, 
        operator, or producer, in attempting to comply with the terms 
        of the contract and enrollment requirements--
                    ``(A) took actions in good faith reliance on the 
                action or advice of an employee of the Secretary; and
                    ``(B) had no knowledge that the actions taken were 
                in violation of the contract.
            ``(2) Types of relief.--The Secretary shall--
                    ``(A) to the extent the Secretary determines that 
                an owner, operator, or producer has been injured by 
                good faith reliance described in paragraph (1), allow 
                the owner, operator, or producer--
                            ``(i) to retain payments received under the 
                        contract;
                            ``(ii) to continue to receive payments 
                        under the contract;
                            ``(iii) to keep all or part of the land 
                        covered by the contract enrolled in the 
                        applicable program;
                            ``(iv) to reenroll all or part of the land 
                        covered by the contract in the applicable 
                        program; or
                            ``(v) to receive any other equitable relief 
                        the Secretary considers appropriate; and
                    ``(B) require the owner, operator, or producer to 
                take such actions as are necessary to remedy any 
                failure to comply with the contract.
            ``(3) Relationship to other law.--The authority to provide 
        relief under this subsection shall be in addition to any other 
        authority provided in this or any other Act.
            ``(4) Exceptions.--This section shall not apply to--
                    ``(A) any pattern of conduct in which an employee 
                of the Secretary takes actions or provides advice with 
                respect to an owner, operator, or producer that the 
                employee and the owner, operator, or producer know are 
                inconsistent with applicable law (including 
                regulations); or
                    ``(B) an owner, operator, or producer takes any 
                action, independent of any advice or authorization 
                provided by an employee of the Secretary, that the 
                owner, operator, or producer knows or should have known 
                to be inconsistent with applicable law (including 
                regulations).
            ``(5) Applicability of relief.--Relief under this section 
        shall be available for contracts in effect on or after the date 
        of enactment of this section.
    ``(b) Education, Outreach, Monitoring, and Evaluation.--In carrying 
out any conservation program administered by the Secretary, the 
Secretary--
            ``(1) shall provide education, outreach, training, 
        monitoring, evaluation, technical assistance, and related 
        services to agricultural producers (socially disadvantaged 
        agricultural producers, beginning farmers and ranchers, Indian 
        tribes (as those terms are defined in section 1238), and 
        limited resource agricultural producers);
            ``(2) may enter into contracts with States (including State 
        agencies and units of local government), private nonprofit, 
        community-based organizations, and educational institutions 
        with demonstrated experience in providing the services 
        described in paragraph (1), to provide those services; and
            ``(3) shall use such sums as are necessary from funds of 
        the Commodity Credit Corporation to carry out activities 
        described in paragraphs (1) and (2).
    ``(c) 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 opportunities; and
            ``(2) enhance environmental stewardship over the long term.
    ``(d) Program Evaluation.--The Secretary shall maintain data 
concerning conservation security plans, conservation practices planned 
or implemented, environmental outcomes, economic costs, and related 
matters under conservation programs administered by the Secretary.
    ``(e) Mediation and Informal Hearings.--If the Secretary makes a 
decision under a conservation program administered by the Secretary 
that is adverse to an owner, operator, or producer, at the request of 
the owner, operator, or producer, the Secretary shall provide the 
owner, operator, or producer with mediation services or an informal 
hearing on the decision.
    ``(f) Technical Assistance.--
            ``(1) In general.--Under any conservation program 
        administered by the Secretary, subject to paragraph (2), 
        technical assistance provided by persons certified under 
        paragraph (3) (including farmers and ranchers) may include--
                    ``(A) conservation planning;
                    ``(B) design, installation, and certification of 
                conservation practices;
                    ``(C) conservation training for producers; and
                    ``(D) such other conservation activities as the 
                Secretary determines to be appropriate.
            ``(2) Outside assistance.--
                    ``(A) In general.--The Secretary may contract 
                directly with qualified persons not employed by the 
                Department to provide conservation technical 
                assistance.
                    ``(B) Payment by secretary.--Subject to 
                subparagraph (C), the Secretary may provide a payment 
                to an owner, operator, or producer enrolled in a 
                conservation program administered by the Secretary if 
                the owner, operator, or producer elects to obtain 
                technical assistance from a person certified to provide 
                technical assistance under this subsection.
                    ``(C) Nonprivate providers.--In determining whether 
                to provide a payment under subparagraph (B) to a 
                nonprivate provider, the Secretary shall provide a 
                payment if the provision of the payment would result in 
                an increase in the total amount of technical assistance 
                available to producers, as determined by the Secretary.
            ``(3) Certification of providers of technical assistance.--
                    ``(A) Procedures.--
                            ``(i) In general.--The Secretary shall 
                        establish procedures for certifying persons not 
                        employed by the Department to provide technical 
                        assistance in planning, designing, or 
                        certifying activities to participate in any 
                        conservation program administered by the 
                        Secretary to agricultural producers and 
                        landowners participating, or seeking to 
                        participate, in conservation programs 
                        administered by the Secretary.
                            ``(ii) Non-federal assistance.--The 
                        Secretary may request the services of, and 
                        enter into a cooperative agreement with, a 
                        State water quality agency, State fish and 
                        wildlife agency, State forestry agency, State 
                        conservation agency or conservation district, 
                        or any other governmental or nongovernmental 
                        organization or person considered appropriate 
                        by the Secretary to assist in providing the 
                        technical assistance necessary to develop and 
                        implement conservation plans under this title.
                    ``(B) Equivalence.--The Secretary shall ensure that 
                new certification programs of the Department for 
                providers of technical assistance meet or exceed the 
                testing and continuing education standards of any 
                certification program that establishes nationally 
                recognized and accepted standards for training, 
                testing, and other professional qualifications.
                    ``(C) Standards.--The Secretary shall establish 
                standards for the conduct of--
                            ``(i) the certification process conducted 
                        by the Secretary; and
                            ``(ii) periodic recertification by the 
                        Secretary of providers.
                    ``(D) Certification required.--
                            ``(i) In general.--A provider may not 
                        provide to any producer technical assistance 
                        described in paragraph (3)(A)(i) unless the 
                        provider is certified by the Secretary.
                            ``(ii) Waiver.--The Secretary may exempt a 
                        provider from any requirement of this 
                        subparagraph if the Secretary determines that 
                        the provider has been certified or recertified 
                        to provide technical assistance through a 
                        program the standards of which meet or exceed 
                        standards established by the Secretary under 
                        subparagraph (C).
                    ``(E) Fee.--
                            ``(i) In general.--In exchange for 
                        certification or recertification, a provider 
                        shall pay a fee to the Secretary in an amount 
                        determined by the Secretary.
                            ``(ii) Account.--A fee paid to the 
                        Secretary under clause (i) shall be--
                                    ``(I) credited to the account in 
                                the Treasury that incurs costs relating 
                                to implementing this subsection; and
                                    ``(II) made available to the 
                                Secretary for use for conservation 
                                programs administered by the Secretary, 
                                without further appropriation, until 
                                expended.
                            ``(iii) Waiver.--The Secretary may waive 
                        any requirement of any provider to pay a fee 
                        under this subparagraph if the provider 
                        qualifies for a waiver under subparagraph 
                        (D)(ii).
                    ``(F) Technical assistance advisory council.--
                            ``(i) Purpose.--The Secretary shall 
                        establish a technical assistance advisory 
                        council (referred to in this subparagraph as 
                        the `advisory council') to advise the Secretary 
                        with respect to the management of certification 
                        programs for the provision of technical 
                        assistance for third party providers.
                            ``(ii) Membership.--The membership of the 
                        advisory council shall include--
                                    ``(I) representatives of the 
                                Federal Government and appropriate 
                                State and local governments; and
                                    ``(II) not more than 20 additional 
                                members that represent 2 or more of the 
                                following:
                                            ``(aa) Agricultural 
                                        producers.
                                            ``(bb) Agricultural 
                                        industries.
                                            ``(cc) Wildlife and 
                                        environmental entities.
                                            ``(dd) A minimum of 6 
                                        professional societies and 
                                        organizations.
                                            ``(ee) Such other entities 
                                        (the representation of which on 
                                        the advisory council shall not 
                                        exceed 4 members) as the 
                                        Secretary determines would 
                                        contribute to the work of the 
                                        advisory council.
                            ``(iii) Responsibilities.--The advisory 
                        council shall advise the Secretary with respect 
                        to--
                                    ``(I) appropriate standards for 
                                certification;
                                    ``(II) the status of third party 
                                certification programs;
                                    ``(III) cases in which waivers for 
                                certification, recertification and 
                                payment of fees should be allowed;
                                    ``(IV) periodic reviews of 
                                certification program; and
                                    ``(V) guidelines for penalties and 
                                disciplinary actions for violation of 
                                certification requirements.
                            ``(iv) Meetings.--
                                    ``(I) Initial meeting.--Not later 
                                than 30 days after the date on which 
                                all members of the advisory council 
                                have been appointed, the advisory 
                                council shall hold the initial meeting 
                                of advisory council.
                                    ``(II) Subsequent meetings.--The 
                                Secretary shall require the advisory 
                                council to meet as needed.
                            ``(v) Authorization of appropriations.--
                        There are authorized to be appropriated to 
                        carry out this subparagraph such sums as are 
                        necessary for each of fiscal years 2002 through 
                        2006.
            ``(4) Effect on implementation.--Nothing in this subsection 
        shall prohibit or impede the expeditious implementation of the 
        provision of third-party technical assistance under this title.
            ``(5) Other requirements.--The Secretary may establish such 
        other requirements as the Secretary determines are necessary to 
        carry out this subsection.
    ``(g) 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 (3), 
                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 in section 1238) 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.--Information regarding owners, 
                operators, or producers that have received payments 
                from the Secretary and the amounts received, shall be--
                            ``(i) considered to be public information; 
                        and
                            ``(ii) may be released to any--
                                    ``(I) person;
                                    ``(II) Indian tribe (as defined in 
                                section 1238); or
                                    ``(III) Federal, State, local 
                                agency outside the Department of 
                                Agriculture.
            ``(2) Inventory, monitoring, and site specific 
        information.--Except as provided in paragraph (3) and 
        notwithstanding any other provision of law, in order to 
        maintain the personal privacy, confidentiality, and cooperation 
        of owners, operators, and producers, and to maintain the 
        integrity of each unit at which primary sampling for data 
        gathering is carried out by the National Resources Inventory 
        (referred to in this subsection as a `data gathering site'), 
        the specific geographic locations of data gathering sites, and 
        the information generated by the data gathering sites--
                    ``(A) shall not be considered to be public 
                information; and
                    ``(B) shall not be released to any person or 
                Federal, State, local, or tribal agency outside the 
                Department.
            ``(3) Exceptions.--
                    ``(A) release and disclosure for enforcement.--The 
                Secretary may release or disclose to the Attorney 
                General information covered by paragraph (1) or (2) 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) or (2) 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) or (2) 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) or (2).
                            ``(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.
            ``(4) 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.
            ``(5) 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.
    ``(h) Indian Tribes.--In carrying out any conservation program 
administered by the Secretary on land under the jurisdiction of an 
Indian tribe (as defined in section 1238), the Secretary shall 
cooperate with the tribal government of the Indian tribe to ensure, to 
the maximum extent practicable, that the program is administered in a 
fair and equitable manner.''.

SEC. 205. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

    (a) In General.--The Secretary of Agriculture shall develop a plan 
for--
            (1) coordinating conservation programs administered by the 
        Secretary that are targeted at agricultural land to--
                    (A) eliminate redundancy; and
                    (B) improve delivery;
            (2) to the maximum extent practicable--
                    (A) designing forms that are applicable to all 
                conservation programs administered by the Secretary;
                    (B) reducing and consolidating paperwork 
                requirements for the programs;
                    (C) developing universal classification systems for 
                all information obtained on the forms that can be used 
                by other agencies of the Department of Agriculture;
                    (D) ensuring that the information and 
                classification systems developed under this paragraph 
                can be shared with other agencies of the Department 
                through computer technologies used by agencies; and
                    (E) developing 1 format for a conservation plan 
                that can be applied to all conservation programs 
                targeted at agricultural land;
            (3) to the maximum extent practicable, improving the 
        delivery of conservation programs to Indian tribes (as defined 
        in section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b)), including programs for the 
        delivery of conservation programs to Indian tribes under plans 
        carried out in conjunction with the Secretary of the Interior; 
        and
            (4) improving the regional distribution of program funds 
        and resources to ensure, to the maximum extent practicable, 
        that--
                    (A) the highest conservation priorities of the 
                United States receive funding; and
                    (B) regional variations in conservation costs are 
                taken into account.
    (b) Report.--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 the plan developed under subsection (a), including any 
recommendations for implementation of the plan.
    (c) National Conservation Plan.--
            (1) In general.--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 plan and estimated budget for 
        implementing the appraisal of the soil, water, and related 
        resources of the United States contained in the national 
        conservation program under sections 5 and 6 of the Soil and 
        Water Resources Conservation Act of 1977 (16 U.S.C. 2004, 2005) 
        as the primary vehicle for managing conservation on 
        agricultural land in the United States.
            (2) Report on implementation.--Not later than April 30, 
        2005, the Secretary shall submit to the Committee on 
        Agriculture of the House of Representatives and Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        that--
                    (A) describes the status of the implementation of 
                the plan described in paragraph (1);
                    (B) contains an evaluation of the scope, quality, 
                and outcomes of the conservation practices carried out 
                under the plan; and
                    (C) makes recommendations for achieving specific 
                and quantifiable improvements for the purposes of 
                programs covered by the plan.
    (d) Conservation Practice Standards.--The Secretary of Agriculture 
shall--
            (1) revise standards and, if necessary, establish 
        standards, for eligible conservation practices to include 
        measurable goals for enhancing natural resources, including 
        innovative practices;
            (2) not later than 180 days after the date of enactment of 
        this Act, revise the National Handbook of Conservation 
        Practices and field office technical guides of the Natural 
        Resources Conservation Service; and
            (3) not less frequently than once every 5 years, update the 
        Handbook and technical guides.

SEC. 206. CONSERVATION SECURITY PROGRAM REGULATIONS.

    Beginning on the date of enactment of this Act, the Secretary of 
Agriculture may promulgate regulations and carry out other actions 
relating to the implementation of the conservation security program 
under subchapter A of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (as added by section 201).

SEC. 207. 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 in the chapter heading by 
striking ``ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM'' and 
inserting ``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''; and
            (3) 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--Program Extensions

SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

    (a) In General.--Section 1230(a) of the Food Security Act of 1985 
(16 U.S.C. 3830(a)) is amended--
            (1) in paragraph (1), by striking ``2002'' and inserting 
        ``2006''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end; and
                    (B) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) the grassland reserve program established 
                under subchapter C of chapter 2;
                    ``(D) the environmental quality incentives program 
                established under chapter 4;
                    ``(E) the wildlife habitat incentive program 
                established under section 1240M; and
                    ``(F) the program for conservation of private 
                grazing land established under section 1240P.''.
    (b) Priority.--Section 1230(c) of the Food Security Act of 1985 (16 
U.S.C. 3830(c)) is amended by adding at the end the following:
            ``(4) Priority.--In designating conservation priority areas 
        under paragraph (1), the Secretary shall give priority to areas 
        in which designated land would facilitate the most rapid 
        completion of projects that--
                    ``(A) are ongoing as of the date of the 
                application; and
                    ``(B) meet the purposes of a program established 
                under this title.''.
    (c) Funding.--Section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended--
            (1) by striking ``2002'' and inserting ``2006'';
            (2) by inserting ``(including the provision of technical 
        assistance)'' after ``the programs'';
            (3) in paragraph (2)--
                    (A) by striking ``subchapter C'' and inserting 
                ``subchapters C and D''; and
                    (B) by striking ``and'' at the end;
            (4) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding at the end the following:
            ``(4) chapter 6 of subtitle D.''.

SEC. 212. CONSERVATION RESERVE PROGRAM.

    (a) Reauthorization.--
            (1) In general.--Section 1231 of the Food Security Act of 
        1985 (16 U.S.C. 3831) is amended in subsections (a), (b)(3), 
        and (d), by striking ``2002'' each place it appears and 
        inserting ``2006'.
            (2) Duties of owners and operators.--Section 1232(c) of the 
        Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
        striking ``2002'' and inserting ``2006''.
    (b) Conservation Priority Areas.--
            (1) Eligibility.--Section 1231(b) of the Food Security Act 
        of 1985 (16 U.S.C. 3831(b)) is amended--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) highly erodible cropland that--
                    ``(A)(i) if permitted to remain untreated could 
                substantially reduce the production capability for 
                future generations; or
                    ``(ii) cannot be farmed in accordance with a 
                conservation 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 3 of the 6 
                years preceding the date of enactment of the 
                Agriculture, Conservation, and Rural Enhancement Act of 
                2002 (except for land enrolled in the conservation 
                reserve program as of that date);''; and
                    (B) by adding at the end the following:
            ``(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 under a program 
        described in paragraph (6)(A), if the land is enrolled as part 
        of the buffer; and
            ``(6) land (including land that is not cropland) enrolled 
        through continuous signup--
                    ``(A) to establish conservation buffers as part of 
                the program described in a notice issued on March 24, 
                1998 (63 Fed. Reg. 14109) or a successor program; or
                    ``(B) into the conservation reserve enhancement 
                program described in a notice issued on May 27, 1998 
                (63 Fed. Reg. 28965) or a successor program.''.
            (2) CRP priority areas.--Section 1231(f) of the Food 
        Security Act of 1985 (16 U.S.C. 3831(f)) is amended by adding 
        at the end the following:
            ``(5) Priority.--In designating conservation priority areas 
        under paragraph (1), the Secretary shall give priority to areas 
        in which designated land would facilitate the most rapid 
        completion of projects that--
                    ``(A) are ongoing as of the date of the 
                application; and
                    ``(B) meet the purposes of the program established 
                under this subchapter.''.
    (c) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended by striking ``36,400,000'' and 
inserting ``41,100,000''.
    (d) Duration of Contracts; Hardwood Trees.--Section 1231(e) of the 
Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended--
            (1) in paragraph (1), by striking ``For the purpose: and 
        inserting ``Except as provided in paragraph (2)(D), for the 
        purpose'';
            (2) in paragraph (2)--
                    (A) by striking ``In the'' and inserting the 
                following:
                    ``(A) In general.--In the'';
                    (B) by striking ``The Secretary'' and inserting the 
                following:
                    ``(B) Existing hardwood tree contracts.--The 
                Secretary''; and
                    (C) by adding at the end the following:
                    ``(C) Extension of hardwood tree contracts.--
                            ``(i) In general.--In the case of land 
                        devoted to hardwood trees under a contract 
                        entered into under this subchapter before the 
                        date of enactment of this subparagraph, the 
                        Secretary may extend the contract for a term of 
                        not more than 15 years.
                            ``(ii) Rental payments.--The amount of a 
                        rental payment for a contract extended under 
                        clause (i)--
                                    ``(I) shall be determined by the 
                                Secretary; but
                                    ``(II) shall not exceed 50 percent 
                                of the rental payment that was 
                                applicable to the contract before the 
                                contract was extended.
                    ``(D) New hardwood tree contracts.--
                            ``(i) In general.--The Secretary may enter 
                        into contracts of not less than 10, nor more 
                        than 30, years with owners of land intended to 
                        be devoted to hardwood trees after the date of 
                        enactment of this paragraph.
                            ``(ii) Payments.--The Secretary shall make 
                        payments under a contract described in clause 
                        (i)--
                                    ``(I) on an annual basis; and
                                    ``(II) at such an appropriate rate 
                                and in such appropriate amounts as the 
                                Secretary shall determine in accordance 
                                with subparagraph (C)(ii).
                    ``(E) Hardwood planning goal.--The Secretary shall 
                take such steps as the Secretary determines are 
                necessary to ensure, to the maximum extent practicable, 
                that all hardwood tree sites annually enrolled in the 
                conservation reserve program are reforested with 
                appropriate species.''; and
            (3) by adding at the end the following:
            ``(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.''.
    (e) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231(h) of the Food Security Act of 1985 
(16 U.S.C. 3831(h)) is amended--
            (1) in the subsection heading, by striking ``Pilot'';
            (2) in paragraph (1), by striking ``During the 2001 and 
        2002 calendar years, the Secretary shall carry out a pilot 
        program'' and inserting ``During the 2002 through 2006 calendar 
        years, the Secretary shall carry out a program'';
            (3) in paragraph (2), by striking ``pilot''; and
            (4) in paragraph (3)(D)(i), by striking ``5 contiguous 
        acres.'' and inserting ``10 contiguous acres, of which--
                                    ``(I) not more than 5 acres shall 
                                be eligible for payment; and
                                    ``(II) all acres (including acres 
                                that are ineligible for payment) shall 
                                be covered by the conservation 
                                contract.''.
    (f) Irrigated Land.--Section 1231 of the Food Security Act of 1985 
(16 U.S.C. 3831) is amended by adding at the end the following:
    ``(i) Irrigated Land.--Irrigated land shall be enrolled in the 
programs described in subsection (b)(6) at irrigated land rates unless 
the Secretary determines that other compensation is appropriate.''.
    (g) Vegetative Cover; Haying and Grazing; Wind Turbines.--Section 
1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is 
amended--
            (1) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by inserting ``and'' after 
                the semicolon at the end; and
                    (C) by adding at the end the following:
                    ``(C) in the case of marginal pasture land, an 
                owner or operator shall not be required to plant trees 
                if the land is to be restored--
                            ``(i) as wetland; or
                            ``(ii) with appropriate native riparian 
                        vegetation;'';
            (2) in paragraph (7)--
                    (A) by striking ``except that the Secretary--'' and 
                inserting ``except that--'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(A) may'' and inserting 
                        ``(A) the Secretary may''; and
                            (ii) by striking ``and'' at the end;
                    (C) in subparagraph (B)--
                            (i) by striking ``(B) shall'' and inserting 
                        ``(B) the Secretary shall''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon;
                    (D) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(D) for maintenance purposes, the Secretary may 
                permit harvesting or grazing or other commercial uses 
                of forage, in a manner that is consistent with the 
                purposes of this subchapter and a conservation plan 
                approved by the Secretary, on acres enrolled--
                            ``(i) to establish conservation buffers as 
                        part of the program described in a notice 
                        issued on March 24, 1998 (63 Fed. Reg. 14109) 
                        or a successor program; and
                            ``(ii) into the conservation reserve 
                        enhancement program described in a notice 
                        issued on May 27, 1998 (63 Fed. Reg. 28965) or 
                        a successor program.'';
            (3) in paragraph (9), by striking ``and'' at the end;
            (4) by redesignating paragraph (10) as paragraph (11); and
            (5) by inserting after paragraph (9) the following:
            ``(10) with respect to any contract entered into after the 
        date of enactment of the Agriculture, Conservation, and Rural 
        Enhancement Act of 2002--
                    ``(A) not to produce a crop for the duration of the 
                contract on any other highly erodible land that the 
                owner or operator owns unless the highly erodible 
                land--
                            ``(i) has a history of being used to 
                        produce a crop other than a forage crop, as 
                        determined by the Secretary; or
                            ``(ii) is being used as a homestead or 
                        building site at the time of purchase; and
                    ``(B) on a violation of a contract described in 
                subparagraph (A), to be subject to the requirements of 
                paragraph (5); and''.
    (h) Wind Turbines.--Section 1232 of the Food Security Act of 1985 
(8906 U.S.C. 3832) is amended by adding at the end the following:
    ``(f) Wind Turbines.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may permit an owner or operator of land that is enrolled in the 
        conservation reserve program, but that is not enrolled under 
        continuous signup (as described in section 1231(b)(6)), to 
        install wind turbines on the land.
            ``(2) Number; location.--The Secretary shall determine the 
        number and location of wind turbines that may be installed on a 
        tract of land under paragraph (1), taking into account--
                    ``(A) the location, size, and other physical 
                characteristics of the land;
                    ``(B) the extent to which the land contains 
                wildlife and wildlife habitat; and
                    ``(C) the purposes of the conservation reserve 
                program.
            ``(3) Payment limitation.--Notwithstanding the amount of a 
        rental payment limited by section 1234(c)(2) and specified in a 
        contract entered into under this chapter, the Secretary shall 
        reduce the amount of the rental payment paid to an owner or 
        operator of land on which 1 or more wind turbines are installed 
        under this subsection by an amount determined by the Secretary 
        to be commensurate with the value of the reduction of benefit 
        gained by enrollment of the land in the conservation reserve 
        program.''.
    (i) Additional Eligible Practices.--Section 1234 of the Food 
Security Act of 1985 (16 U.S.C. 3834) is amended by adding at the end 
the following:
    ``(i) Payments.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall provide signing and practice incentive payments under the 
        conservation reserve program to owners and operators that 
        implement a practice under--
                    ``(A) the program to establish conservation buffers 
                described in a notice issued on March 24, 1998 (63 Fed. 
                Reg. 14109) or a successor program; or
                    ``(B) the conservation reserve enhancement program 
                described in a notice issued on May 27, 1998 (63 Fed. 
                Reg. 28965) or a successor program.
            ``(2) Other practices.--The Secretary shall administer 
        paragraph (1) in a manner that does not reduce the amount of 
        payments made by the Secretary for other practices under the 
        conservation reserve program.''.
    (j) Payments.--Section 1239C(f) of the Food Security Act of 1985 
(16 U.S.C. 3839c(f)) is amended by adding at the end the following:
            ``(5) Exception.--Paragraph (1) shall not apply to any land 
        enrolled in--
                    ``(A) the program to establish conservation buffers 
                described in a notice issued on March 24, 1998 (63 Fed. 
                Reg. 14109) or a successor program; or
                    ``(B) the conservation reserve enhancement program 
                described in a notice issued on May 27, 1998 (63 Fed. 
                Reg. 28965) or a successor program.''.
    (k) County Participation.--Section 1243(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3843(b)(1)) is amended by striking ``The 
Secretary'' and inserting ``Except for land enrolled under continuous 
signup (as described in section 1231(b)(6)), the Secretary''.
    (l) Study on Economic Effects.--
            (1) In general.--Not later than 270 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 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 described in that paragraph 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); 
                and
                    (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.

SEC. 213. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) In General.--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 national goals, and to maximize 
environmental benefits per dollar expended, by--
            ``(1) assisting producers in complying with--
                    ``(A) this title;
                    ``(B) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    ``(C) the Safe Drinking Water Act (42 U.S.C. 300f 
                et seq.);
                    ``(D) the Clean Air Act (42 U.S.C. 7401 et seq.); 
                and
                    ``(E) other Federal, State, tribal, and local 
                environmental laws (including regulations);
            ``(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 technical and financial assistance 
        to producers to install and maintain conservation systems 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;
            ``(5) facilitating partnerships and joint efforts among 
        producers and governmental and nongovernmental organizations; 
        and
            ``(6) 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) Comprehensive nutrient management.--
                    ``(A) In general.--The term `comprehensive nutrient 
                management' means any combination of structural 
                practices, land management practices, and management 
                activities associated with crop or livestock production 
                described in subparagraph (B) that collectively ensure 
                that the purposes of crop or livestock production and 
                preservation of natural resources (especially the 
                preservation and enhancement of water quality) are 
                compatible.
                    ``(B) Elements.--For the purpose of subparagraph 
                (A), structural practices, land management practices, 
                and management activities associated with livestock 
                production are--
                            ``(i) manure and wastewater handling and 
                        storage;
                            ``(ii) manure processing, composting, or 
                        digestion for purposes of capturing emissions, 
                        concentrating nutrients for transport, 
                        destroying pathogens or otherwise improving the 
                        environmental safety and beneficial uses of 
                        manure;
                            ``(iii) land treatment practices;
                            ``(iv) nutrient management;
                            ``(v) recordkeeping;
                            ``(vi) feed management; and
                            ``(vii) other waste utilization options.
                    ``(C) Practice.--
                            ``(i) Planning.--The development of a 
                        comprehensive nutrient management plan shall be 
                        a practice that is eligible for incentive 
                        payments and technical assistance under this 
                        chapter.
                            ``(ii) Implementation.--The implementation 
                        of a comprehensive nutrient plan shall be 
                        accomplished through structural and land 
                        management practices identified in the plan.
                            ``(iii) Requirement.--A comprehensive 
                        nutrient management plan shall meet all 
                        Federal, State, and local water quality and 
                        public health goals and regulations, and in the 
                        case of a large confined livestock operation 
                        (as defined by the Secretary), shall include 
                        all necessary and essential land treatment 
                        practices as determined by the Secretary.
            ``(3) Eligible land.--The term `eligible land' means 
        agriculture land (including cropland, grassland, rangeland, 
        pasture, private nonindustrial forest land and other land on 
        which crops or livestock are produced), including agricultural 
        land that the Secretary determines poses a serious threat to 
        soil, water, or related resources by reason of the soil types, 
        terrain, climatic, soil, topographic, flood, or saline 
        characteristics, or other factors or natural hazards.
            ``(4) Innovative technology.--The term `innovative 
        technology' means a new conservation technology that, as 
        determined by the Secretary--
                    ``(A) maximizes environmental benefits;
                    ``(B) complements agricultural production; and
                    ``(C) may be adopted in a practical manner.
            ``(5) Land management practices.--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 resource.
            ``(6) 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.
            ``(7) Managed grazing.--The term `managed grazing' means 
        the application of 1 or more practices that involve the 
        frequent rotation of animals on grazing land to--
                    ``(A) enhance plant health;
                    ``(B) limit soil erosion;
                    ``(C) protect ground and surface water quality; or
                    ``(D) benefit wildlife.
            ``(8) Maximize environmental benefits per dollar 
        expended.--
                    ``(A) In general.--The term `maximize environmental 
                benefits per dollar expended' means to maximize 
                environmental benefits to the extent the Secretary 
                determines is practicable and appropriate, taking into 
                account the amount of funding made available to carry 
                out this chapter.
                    ``(B) Limatation.--The term `maximize environmental 
                benefits per dollar expended' does not require the 
                Secretary--
                            ``(i) to require the adoption of the least 
                        cost practice or technical assistance; or
                            ``(ii) to require the development of a plan 
                        under section 1240E as part of an application 
                        for payments or technical assistance.
            ``(9) Practice.--The term `practice' means 1 or more 
        structural practices, land management practices, and 
        comprehensive nutrient management planning practices.
            ``(10) 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.
            ``(11) Program.--The term `program' means the environmental 
        quality incentives program comprised of sections 1240 through 
        1240J.
            ``(12) 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 2006 
        fiscal years, the Secretary shall provide technical assistance, 
        cost-share payments, and incentive payments to producers that 
        enter into contracts with the Secretary under the program.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--A producer that 
                implements a structural practice shall be eligible for 
                any combination of technical assistance, cost-share 
                payments, and education.
                    ``(B) Land management practices.--A producer that 
                performs a land management practice shall be eligible 
                for any combination of technical assistance, incentive 
                payments, and education.
                    ``(C) Comprehensive nutrient management planning.--
                A producer that develops a comprehensive nutrient 
                management plan shall be eligible for any combination 
                of technical assistance, incentive payments, and 
                education.
            ``(3) Education.--The Secretary may provide conservation 
        education at national, State, and local levels consistent with 
        the purposes of the program to--
                    ``(A) any producer that is eligible for assistance 
                under the program; or
                    ``(B) any producer that is engaged in the 
                production of an agricultural commodity.
    ``(b) Application and Term.--With respect to practices implemented 
under this program--
            ``(1) a contract between a producer and the Secretary may--
                    ``(A) apply to 1 or more structural practices, land 
                management practices, and comprehensive nutrient 
                management planning practices; and
                    ``(B) have a term of not less that 3, or more than 
                10 years, as determined appropriate by the Secretary, 
                depending on the practice or practices that are the 
                basis of the contract;
            ``(2) a producer may not enter into more than 1 contract 
        for structural practices involving livestock nutrient 
        management during the period of fiscal years 2002 through 2006; 
        and
            ``(3) a producer that has an interest in more than 1 large 
        confined livestock operation, as defined by the Secretary, may 
        not enter into more than 1 contract for cost-share payments for 
        a storage or treatment facility, or associated waste transport 
        or transfer device, to manage manure, process wastewater, or 
        other animal waste generated by the large confined livestock 
        feeding operation.
    ``(c) Application and Evaluation.--
            ``(1) In general.--The Secretary shall establish an 
        application and evaluation process for awarding technical 
        assistance, cost-share payments and incentive payments to a 
        producer in exchange for the performance of 1 or more practices 
        that maximize environmental benefits per dollar expended.
            ``(2) Comparable environmental value.--
                    ``(A) In general.--The Secretary shall establish a 
                process for selecting applications for technical 
                assistance, cost-share payments, and incentive payments 
                in any case in which there are numerous applications 
                for assistance for practices that would provide 
                substantially the same level of environmental benefits.
                    ``(B) Criteria.--The process under subparagraph (A) 
                shall be based on--
                            ``(i) a reasonable estimate of the 
                        projected cost of the proposals described in 
                        the applications; and
                            ``(ii) the priorities established under the 
                        program, and other factors, that maximize 
                        environmental benefits per dollar expended.
            ``(3) Consent of owner.--If the producer making an offer to 
        implement a structural practice is a tenant of the land 
        involved in agricultural production, for the offer to be 
        acceptable, the producer shall obtain the consent of the owner 
        of the land with respect to the offer.
            ``(4) Bidding down.--If the Secretary determines that the 
        environmental values of 2 or more applications for technical 
        assistance, 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.--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 practices.
    ``(f) Technical Assistance.--
            ``(1) In general.--The Secretary shall allocate funding 
        under the program for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided for a fiscal year.
            ``(2) Amount.--The allocated amount may vary according to--
                    ``(A) the type of expertise required;
                    ``(B) the quantity of time involved; and
                    ``(C) other factors as determined appropriate by 
                the Secretary.
            ``(3) Limitation.--Funding for technical assistance under 
        the program shall not exceed the projected cost to the 
        Secretary of the technical assistance provided for a fiscal 
        year.
            ``(4) Other authorities.--The receipt of technical 
        assistance under the program shall not affect the eligibility 
        of the producer to receive technical assistance under other 
        authorities of law available to the Secretary.
            ``(5) Incentive payments for technical assistance.--
                    ``(A) In general.--A producer that is eligible to 
                receive technical assistance for a practice involving 
                the development of a comprehensive nutrient management 
                plan may obtain an incentive payment that can be used 
                to obtain technical assistance associated with the 
                development of any component of the comprehensive 
                nutrient management plan.
                    ``(B) Purpose.--The purpose of the payment shall be 
                to provide a producer the option of obtaining technical 
                assistance for developing any component of a 
                comprehensive nutrient management plan from a certified 
                provider.
                    ``(C) Payment.--The incentive payment shall be--
                            ``(i) in addition to cost-share or 
                        incentive payments that a producer would 
                        otherwise receive for structural practices and 
                        land management practices;
                            ``(ii) used only to procure technical 
                        assistance from a certified provider that is 
                        necessary to develop any component of a 
                        comprehensive nutrient management plan; and
                            ``(iii) in an amount determined appropriate 
                        by the Secretary, taking into account--
                                    ``(I) the extent and complexity of 
                                the technical assistance provided;
                                    ``(II) the costs that the Secretary 
                                would have incurred in providing the 
                                technical assistance; and
                                    ``(III) the costs incurred by the 
                                private provider in providing the 
                                technical assistance.
                    ``(D) Eligible practices.--The Secretary may 
                determine, on a case by case basis, whether the 
                development of a comprehensive nutrient management plan 
                is eligible for an incentive payment under this 
                paragraph.
                    ``(E) Certification by secretary.--
                            ``(i) In general.--Only persons that have 
                        been certified by the Secretary under section 
                        1244(f)(3) shall be eligible to provide 
                        technical assistance under this subsection.
                            ``(ii) Quality assurance.--The Secretary 
                        shall ensure that certified providers are 
                        capable of providing technical assistance 
                        regarding comprehensive nutrient management in 
                        a manner that meets the specifications and 
                        guidelines of the Secretary and that meets the 
                        needs of producers under the program.
                    ``(F) Advance payment.--On the determination of the 
                Secretary that the proposed comprehensive nutrient 
                management of a producer is eligible for an incentive 
                payment, the producer may receive a partial advance of 
                the incentive payment in order to procure the services 
                of a certified provider.
                    ``(G) Final payment.--The final installment of the 
                incentive payment shall be payable to a producer on 
                presentation to the Secretary of documentation that is 
                satisfactory to the Secretary and that demonstrates--
                            ``(i) completion of the technical 
                        assistance; and
                            ``(ii) the actual cost of the technical 
                        assistance.
    ``(g) 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.

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

    ``(a) In General.--In evaluating applications for technical 
assistance, cost-share payments, and incentive payments, the Secretary 
shall accord a higher priority to assistance and payments that--
            ``(1) maximize environmental benefits per dollar expended; 
        and
            ``(2)(A) address national conservation priorities, 
        including--
                    ``(i) meeting Federal, State, and local 
                environmental purposes focused on protecting air and 
                water quality, including assistance to production 
                systems and practices that avoid subjecting an 
                operation to Federal, State, or local environmental 
                regulatory systems;
                    ``(ii) applications from livestock producers using 
                managed grazing systems and other pasture and forage 
                based systems;
                    ``(iii) comprehensive nutrient management;
                    ``(iv) water quality, particularly in impaired 
                watersheds;
                    ``(v) soil erosion;
                    ``(vi) air quality; or
                    ``(vii) pesticide and herbicide management or 
                reduction;
            ``(B) are provided in conservation priority areas 
        established under section 1230(c);
            ``(C) are provided in special projects under section 
        1243(f)(4) with respect to which State or local governments 
        have provided, or will provide, financial or technical 
        assistance to producers for the same conservation or 
        environmental purposes; or
            ``(D) an innovative technology in connection with a 
        structural practice or land management practice.

``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 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;
            ``(6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the program 
        plan; and
            ``(7) to submit a list of all confined livestock feeding 
        operations wholly or partially owned or operated by the 
        applicant.

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

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

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

    ``To the extent appropriate, the Secretary shall assist a producer 
in achieving the conservation and environmental goals of a program plan 
by--
            ``(1) providing technical assistance in developing and 
        implementing the plan;
            ``(2) providing technical assistance, cost-share payments, 
        or incentive payments for developing and implementing 1 or more 
        practices, as appropriate;
            ``(3) providing the producer with information, education, 
        and training to aid in implementation of the plan; and
            ``(4) encouraging the producer to obtain technical 
        assistance, cost-share payments, or grants from other Federal, 
        State, local, or private sources.

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) In General.--Subject to subsection (b), the total amount of 
cost-share and incentive payments paid to a producer under this chapter 
shall not exceed--
            ``(1) $30,000 for any fiscal year, regardless of whether 
        the producer has more than 1 contract under this chapter for 
        the fiscal year;
            ``(2) $90,000 for a contract with a term of 3 years;
            ``(3) $120,000 for a contract with a term of 4 years; or
            ``(4) $150,000 for a contract with a term of more than 4 
        years.
    ``(b) Attribution.--An individual or entity shall not receive, 
directly or indirectly, total payments from single or multiple 
contracts under this chapter that exceed $30,000 for any fiscal year.
    ``(c) Exception to Annual Limit.--The Secretary may exceed the 
limitation on the annual amount of a payment to a producer under 
subsection (a)(1) if the Secretary determines that a larger payment 
is--
            ``(1) essential to accomplish the land management practice 
        or structural practice for which the payment is made to the 
        producer; and
            ``(2) consistent with the maximization of environmental 
        benefits per dollar expended and the purposes of this chapter.
    ``(d) Verification.--The Secretary shall identify individuals and 
entities that are eligible for a payment under the program using social 
security numbers and taxpayer identification numbers, respectively.

``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

    ``(a) In General.--From funds made available to carry out the 
program, for each of the 2003 through 2006 fiscal years, the Secretary 
shall use not more than $100,000,000 for each fiscal year to 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 award 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 innovative projects, such as--
                    ``(A) market systems for pollution reduction;
                    ``(B) promoting agricultural best management 
                practices, including the storing of carbon in the soil;
                    ``(C) protection of source water for human 
                consumption; and
                    ``(D) reducing negative effects on watersheds, 
                including through the significant reduction in nutrient 
                applications, as determined by the Secretary; and
            ``(3) leverage funds made available to carry out the 
        program 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.
    ``(d) Unused Funding.--Any funds made available for a fiscal year 
under this section that are not obligated by April 1 of the fiscal year 
may be used to carry out other activities under this chapter during the 
fiscal year in which the funding becomes available.

``SEC. 1240I. SOUTHERN HIGH PLAINS AQUIFER GROUNDWATER CONSERVATION.

    ``(a) Definitions.--In this section:
            ``(1) Eligible activity.--
                    ``(A) In general.--The term `eligible activity' 
                means an activity carried out to conserve groundwater.
                    ``(B) Inclusions.--The term `eligible activity' 
                includes an activity to--
                            ``(i) improve an irrigation system;
                            ``(ii) reduce the use of water for 
                        irrigation (including changing from high-water 
                        intensity crops to low-water intensity crops); 
                        or
                            ``(iii) convert from farming that uses 
                        irrigation to dryland farming.
            ``(2) Southern high plains aquifer.--The term `Southern 
        High Plains Aquifer' means the portion of the groundwater 
        reserve under Kansas, New Mexico, Oklahoma, and Texas depicted 
        as Figure 1 in the United States Geological Survey Professional 
        Paper 1400-B, entitled `Geohydrology of the High Plains Aquifer 
        in Parts of Colorado, Kansas, Nebraska, New Mexico, Oklahoma, 
        South Dakota, Texas, and Wyoming'.
    ``(b) Conservation Measures.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall provide cost-share payments, incentive payments, and 
        groundwater education assistance to producers that draw water 
        from the Southern High Plains Aquifer to carry out eligible 
        activities.
            ``(2) Limitations.--The Secretary shall provide a payment 
        to a producer under this section only if the Secretary 
        determines that the payment will result in a net savings in 
        groundwater resources on the land of the producer.
            ``(3) Cooperation.--In accordance with this subtitle, in 
        providing groundwater education under this subsection, the 
        Secretary shall cooperate with--
                    ``(A) States;
                    ``(B) land-grant colleges and universities;
                    ``(C) other educational institutions;
                    ``(D) State cooperative extension services; and
                    ``(E) private organizations.
    ``(c) Funding.--
            ``(1) In general.--Of the funds made available under 
        section 1241(b) to carry out the program, the Secretary shall 
        use to carry out this section--
                    ``(A) $15,000,000 for fiscal year 2003;
                    ``(B) $25,000,000 for each of fiscal years 2004 and 
                2005;
                    ``(C) $35,000,000 for fiscal year 2006; and
                    ``(D) $0 for fiscal year 2007.
            ``(2) Other funds.--Subject to paragraph (3), the funds 
        made available under this subsection shall be in addition to 
        any other funds provided under the program.
            ``(3) Unused funding.--Any funds made available for a 
        fiscal year under paragraph (1) that are not obligated by April 
        1 of the fiscal year shall be used to carry out other 
        activities in other States under the program.

``SEC. 1240J. PILOT PROGRAMS.

    ``(a) Drinking Water Suppliers Pilot Program.--
            ``(1) In general.--For each fiscal year, the Secretary may 
        carry out, in watersheds selected by the Secretary, in 
        cooperation with local water utilities, a pilot program to 
        improve water quality.
            ``(2) Implementation.--The Secretary may select the 
        watersheds referred to in paragraph (1), and make available 
        funds (including funds for the provision of incentive payments) 
        to be allocated to producers in partnership with drinking water 
        utilities in the watersheds, if the drinking water utilities 
        agree to measure water quality at such intervals and in such a 
        manner as may be determined by the Secretary.
    ``(b) Nutrient Reduction Pilot Program.--
            ``(1) Definition of chesapeake executive council.--In this 
        subsection, the term `Chesapeake Executive Council' means the 
        Federal-State council--
                    ``(A) comprised of--
                            ``(i) the mayor of the District of 
                        Columbia;
                            ``(ii) the Governors of the States of 
                        Maryland, Pennsylvania, and Virginia;
                            ``(iii) the Administrator of the 
                        Environmental Protection Agency; and
                            ``(iv) the Chair of the Chesapeake Bay 
                        Commission; and
                    ``(B) charged with the policy leadership, 
                coordination, and implementation of the region-wide 
                Chesapeake Bay Program restoration effort.
            ``(2) Program.--For each of fiscal years 2003 through 2006, 
        the Secretary shall use funds made available to carry out the 
        program, in the amounts specified in paragraph (5), in the 
        Chesapeake Bay watershed to provide incentive payments to 
        producers to--
                    ``(A) reduce nutrient loads to the Chesapeake Bay; 
                and
                    ``(B) achieve the goals of the Chesapeake Executive 
                Council.
            ``(3) Priority; measurement; payments.--In carrying out 
        paragraph (2), the Secretary shall--
                    ``(A) give priority to nutrient reduction 
                techniques that reduce nutrient applications rates to a 
                level that is substantially below the level recommended 
                in a best management practice (as identified by the 
                Secretary);
                    ``(B) measure any reduction in nutrient application 
                rates by an appropriate indicator of actual performance 
                (such as the level of nutrients applied or fixed in 
                excess of crop removal); and
                    ``(C) increase the amount of an incentive payment 
                to a producer to reflect superior performance by the 
                producer.
            ``(4) Partnerships.--The Secretary shall carry out this 
        subsection in partnership with--
                    ``(A) State governments;
                    ``(B) nonprofit organizations approved by the 
                Secretary; and
                    ``(C) State colleges and universities.
            ``(5) Funding.--
                    ``(A) In general.--Of the amounts made available 
                under section 1241(b) to carry out the program, the 
                Secretary shall use to carry out this subsection--
                            ``(i) $10,000,000 for fiscal year 2003;
                            ``(ii) $15,000,000 for fiscal year 2004;
                            ``(iii) $20,000,000 for fiscal year 2005;
                            ``(iv) $25,000,000 for fiscal year 2006; 
                        and
                            ``(v) $0 for fiscal year 2007.
                    ``(B) Unexpended funds.--Any funds made available 
                for a fiscal year under subparagraph (A) that are not 
                obligated by April 1 of the fiscal year shall be used 
                to carry out other activities under this chapter.
    ``(c) Consistency With Watershed Plan.--In allocating funds for the 
pilot programs under subsections (a) and (b) and any other pilot 
programs carried out under the program, the Secretary shall take into 
consideration the extent to which an application for the funds is 
consistent with--
            ``(1) any applicable locally developed watershed plan; and
            ``(2) the factors established by section 1240C.
    ``(d) Contracts.--
            ``(1) In general.--In carrying out this section, in 
        addition to other requirements under the program, the Secretary 
        shall enter into contracts in accordance with this section with 
        producers the activities of which affect water quality 
        (including the quality of public drinking water supplies) to 
        implement and maintain--
                    ``(A) nutrient management;
                    ``(B) pest management;
                    ``(C) soil erosion practices; and
                    ``(D) other conservation activities that protect 
                water quality and human health.
            ``(2) Requirements.--A contract described in paragraph (1) 
        shall--
                    ``(A) describe the specific nutrient management, 
                pest management, soil erosion, or other practices to be 
                implemented, maintained, or improved;
                    ``(B) contain a schedule of implementation for 
                those practices;
                    ``(C) to the maximum extent practicable, address 
                water quality priorities of the watershed in which the 
                operation is located; and
                    ``(D) contain such other terms as the Secretary 
                determines to be appropriate.''.
    (b) Funding.--Section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Environmental Quality Incentives Program.--Subject to section 
241 of the Agriculture, Conservation, and Rural Enhancement Act of 
2002, of the funds of the Commodity Credit Corporation, the Secretary 
shall make available to provide technical assistance, cost-share 
payments, incentive payments, bonus payments, grants, and education 
under the environmental quality incentives program under chapter 4 of 
subtitle D, to remain available until expended--
            ``(1) $500,000,000 for fiscal year 2002;
            ``(2) $1,300,000,000 for fiscal year 2003;
            ``(3) $1,450,000,000 for each of fiscal years 2004 and 
        2005;
            ``(4) $1,500,000,000 for fiscal year 2006; and
            ``(5) $850,000,000 for fiscal year 2007.''.
    (c) Reimbursements.--Section 11 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714i) is amended in the last sentence by 
inserting ``but excluding transfers and allotments for conservation 
technical assistance'' after ``activities''.

SEC. 214. WETLANDS RESERVE PROGRAM.

    (a) Technical Assistance.--Section 1237(a) of the Food Security Act 
of 1985 (16 U.S.C. 3837(a)) is amended by inserting ``(including the 
provision of technical assistance)'' before the period at the end.
    (b) Maximum Enrollment.--Section 1237(b) of the Food Security Act 
of 1985 (16 U.S.C. 3837(b)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) Maximum enrollment.--
                    ``(A) In general.--The total number of acres 
                enrolled in the wetlands reserve program shall not 
                exceed 2,225,000 acres, of which, to the maximum extent 
                practicable subject to subparagraph (B), the Secretary 
                shall enroll 250,000 acres in each calendar year.
                    ``(B) Wetlands reserve enhancement acreage.--Of the 
                acreage enrolled under subparagraph (A) for a calendar 
                year, not more than 25,000 acres may be enrolled in the 
                wetlands reserve enhancement program described in 
                subsection (h).''.
    (c) Reauthorization.--Section 1237(c) of the Food Security Act of 
1985 (16 U.S.C. 3837(c)) is amended by striking ``2002'' and inserting 
``2006''.
    (d) Wetlands Reserve Enhancement Program.--Section 1237 of the Food 
Security Act of 1985 (16 U.S.C. 3837) is amended by adding at the end 
the following:
    ``(h) Wetlands Reserve Enhancement Program.--
            ``(1) In general.--Notwithstanding the Federal Grant and 
        Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.), the 
        Secretary may enter into cooperative agreements with State or 
        local governments, and with private organizations, to develop, 
        on land that is enrolled, or is eligible to be enrolled, in the 
        wetland reserve established under this subchapter, wetland 
        restoration activities in watershed areas.
            ``(2) Purpose.--The purpose of the agreements shall be to 
        address critical environmental issues.
            ``(3) Relationship to other authorities.--Nothing in this 
        subsection limits the authority of the Secretary to enter into 
        a cooperative agreement with a party under which agreement the 
        Secretary and the party--
                    ``(A) share a mutual interest in the program under 
                this subchapter; and
                    ``(B) contribute resources to accomplish the 
                purposes of that program.''.
    (e) Monitoring and Maintenance.--Section 1237C(a)(2) of the Food 
Security Act of 1985 (16 U.S.C. 3837c(a)(2)) is amended by striking 
``assistance'' and inserting ``assistance (including monitoring and 
maintenance)''.

SEC. 215. WATER CONSERVATION.

    (a) In General.--Section 1231(d) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)) (as amended by section 212(c)) is amended by 
striking ``41,100,000'' and inserting ``40,000,000''.
    (b) Additional Water Conservation Acreage Under Conservation 
Reserve Enhancement Program.--Section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) (as amended by section 212(f)) is amended by 
adding at the end the following:
    ``(j) Additional Water Conservation Acreage Under Conservation 
Reserve Enhancement Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible entity.--
                            ``(i) In general.--The term `eligible 
                        entity' means--
                                    ``(I)(aa) an owner or operator of 
                                agricultural land; or
                                    ``(bb) a person or entity that 
                                holds water rights in accordance with 
                                or recognized by State law (including a 
                                beneficial owner of water rights in 
                                accordance with State law through 
                                direct contract with the individual or 
                                entity having legal title to the water 
                                rights); and
                                    ``(II) any other landowner.
                            ``(ii) Inclusions.--The term `eligible 
                        entity' includes an irrigation district, water 
                        district, or similar governmental entity in the 
                        State of California.
                    ``(B) Program.--The term `program' means the 
                conservation reserve enhancement program described in a 
                notice issued on May 27, 1998 (63 Fed. Reg. 28965).
            ``(2) Protection of private property rights.--
                    ``(A) Willing sellers and lessors.--An agreement 
                may be executed under this subsection only if each 
                eligible entity that is a party to the agreement is a 
                willing seller or willing lessor.
                    ``(B) Property rights.--Nothing in this subsection 
                authorizes the Federal Government or any State 
                government to condemn private property.
            ``(3) Enrollment.--In addition to the acreage authorized to 
        be enrolled under subsection (d), in carrying out the program, 
        the Secretary, in consultation with eligible States, shall 
        enroll not more than 500,000 acres in eligible States to 
        promote water conservation.
            ``(4) Eligible states.--To be eligible to participate in 
        the program, a State--
                    ``(A) shall submit to the Secretary, for review and 
                approval, a proposal that meets the requirements of the 
                program; and
                    ``(B) shall--
                            ``(i) have established a program or system 
                        to protect in-stream flows or uses; and
                            ``(ii) agree to hold water rights leased or 
                        purchased under a proposal submitted under 
                        subparagraph (A).
            ``(5) Eligible acreage.--An eligible entity may enroll in 
        the program land in an eligible State that is adjacent to a 
        watercourse or lake, or land that would contribute to the 
        restoration of a watercourse or lake (as determined by the 
        Secretary), if--
                    ``(A)(i) the land can be restored as a wetland, 
                grassland, or other habitat, as determined by the 
                Secretary in accordance with the field office technical 
                guides and handbooks of the Natural Resources 
                Conservation Service; and
                    ``(ii) the restoration would significantly improve 
                riparian functions, as determined by the Secretary; or
                    ``(B) water or water rights appurtenant to the land 
                are leased or sold to an appropriate State agency or 
                State-designated water trust, as determined by the 
                Secretary.
            ``(6) Relationship to other acreage.--For any fiscal year, 
        acreage enrolled under this subsection shall not affect the 
        quantity of--
                    ``(A) acreage enrolled to establish conservation 
                buffers as part of the program described in a notice 
                issued on March 24, 1998 (63 Fed. Reg. 14109);
                    ``(B) acreage enrolled in the program before the 
                date of enactment of this subsection; or
                    ``(C) acreage that, as of the date of enactment of 
                this subsection, is committed by the Secretary for 
                enrollment in the program in any State.
            ``(7) Duties of eligible entities.--Under a contract 
        entered into with respect to enrolled land under the program, 
        during the term of the contract, an eligible entity shall 
        agree--
                    ``(A)(i) to restore the hydrology of the enrolled 
                land to the maximum extent practicable, as determined 
                by the Secretary; and
                    ``(ii) to establish on the enrolled land wetland, 
                grassland, vegetative cover, or other habitat, as 
                determined by the Secretary; or
                    ``(B) to transfer to the State, or a designee of 
                the State, water rights appurtenant to the enrolled 
                land.
            ``(8) Rental rates.--
                    ``(A) Irrigated land.--With respect to irrigated 
                land enrolled in the program, the rental rate shall be 
                established by the Secretary--
                            ``(i) on a watershed basis;
                            ``(ii) using data available as of the date 
                        on which the rental rate is established; and
                            ``(iii) at a level sufficient to ensure, to 
                        the maximum extent practicable, that the 
                        eligible entity is fairly compensated for the 
                        irrigated land value of the enrolled land.
                    ``(B) Nonirrigated land.--With respect to 
                nonirrigated land enrolled in the program, the rental 
                rate shall be calculated by the Secretary, in 
                accordance with the conservation reserve program manual 
                of the Department.
                    ``(C) Applicability.--An eligible entity that 
                enters into a contract to enroll land into the program 
                shall receive, in exchange for the enrollment, payments 
                that are based on--
                            ``(i) the irrigated rental rate described 
                        in subparagraph (A), if the owner or operator 
                        agrees to enter into an agreement with the 
                        State and approved by the Secretary under which 
                        the State leases, for in-stream flow purposes 
                        or uses, surface water appurtenant to the 
                        enrolled land; or
                            ``(ii) the nonirrigated rental rate 
                        described in subparagraph (B), if an owner or 
                        operator does not enter into an agreement 
                        described in clause (i).
            ``(9) Priority.--In carrying out this subsection, the 
        Secretary shall give priority consideration to any State 
        proposal that--
                    ``(A) provides a State or non-Federal share of 20 
                percent or more of the cost of the proposal; and
                    ``(B) significantly advances the goals of Federal, 
                State, tribal, and local fish, wildlife, and plant 
                conservation plans, including--
                            ``(i) plans that address--
                                    ``(I) multiple endangered species 
                                or threatened species (as defined in 
                                section 3 of the Endangered Species Act 
                                of 1973 (16 U.S.C. 1532)); or
                                    ``(II) species that may become 
                                threatened or endangered if 
                                conservation measures are not carried 
                                out;
                            ``(ii) agreements entered into, or 
                        conservation plans submitted, under section 6 
                        or 10(a)(2)(A), respectively, of the Endangered 
                        Species Act of 1973 (16 U.S.C. 1535, 
                        1539(a)(2)(A)); or
                            ``(iii) plans that provide benefits to the 
                        fish, wildlife, or plants located in 1 or 
                        more--
                                    ``(I) refuges within the National 
                                Wildlife Refuge System; or
                                    ``(II) State wildlife management 
                                areas.
            ``(10) Consultation.--In carrying out this subsection, the 
        Secretary shall consult with--
                    ``(A) the Secretary of the Interior;
                    ``(B) eligible States;
                    ``(C) affected Indian tribes; and
                    ``(D) any affected irrigation districts established 
                or recognized under State law.
            ``(11) State water law.--Nothing in this subsection--
                    ``(A) preempts any State water law;
                    ``(B) affects any litigation concerning the right 
                or entitlement to, or lack of right or entitlement to, 
                water that is pending as of the date of enactment of 
                this subsection;
                    ``(C) expands, alters, or otherwise affects the 
                existence or scope of any water right of any individual 
                (except to the extent that the individual agrees 
                otherwise under the program); or
                    ``(D) authorizes or entitles the Federal Government 
                to hold or purchase any water right.
            ``(12) Implementation.--In carrying out this subsection, 
        the Secretary shall comply with--
                    ``(A) all interstate compacts, court decrees, and 
                Federal and State laws (including regulations) that may 
                affect water or water rights; and
                    ``(B) all procedural and substantive State water 
                law.
            ``(13) California water law.--
                    ``(A) In general.--Nothing in this subsection 
                authorizes the Secretary to enter into an agreement, in 
                accordance with this subsection, with a landowner for 
                water obtained from an irrigation district, water 
                district, or other similar governmental entity in the 
                State of California.
                    ``(B) District programs.--All landowners 
                participating in the program through membership in a 
                district or entity described in subparagraph (A) shall 
                be willing participants in the program.
            ``(14) Groundwater.--A right to groundwater shall not be 
        subject to any provision of this subsection unless the right is 
        granted--
                    ``(A) under applicable State law; and
                    ``(B) through a groundwater water rights process 
                that is fully integrated with the surface water rights 
                process of the applicable affected State.
            ``(15) Prohibition on federal purchase, lease, and 
        retention of water rights.--No water rights under this 
        subsection shall be purchased, leased, or held by the Secretary 
        or any other officer or agent of the Federal Government.
            ``(16) State flexibility.--With respect to State 
        participation in the program--
                    ``(A) nothing in this subsection limits any State 
                application to participate in the program; and
                    ``(B) the Secretary shall accord States full 
                flexibility to carry out projects and activities under 
                the program.
            ``(17) Eligible states.--Eligible States under this program 
        shall include only Nevada, California, New Mexico, Washington, 
        Oregon, Maine and New Hampshire.''.
    (c) Water Benefits Program.--Subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended by adding at 
the end the following:

                    ``CHAPTER 6--WATER CONSERVATION

``SEC. 1240R. WATER BENEFITS PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--
                    ``(A) In general.--The term `eligible entity' 
                means--
                            ``(i)(I) an owner or operator of 
                        agricultural land; or
                            ``(II) a person or entity that holds water 
                        rights in accordance with or recognized by 
                        State law (including a beneficial owner of 
                        water rights in accordance with State law 
                        through direct contract with the individual or 
                        entity having legal title to the water rights); 
                        and
                            ``(ii) any other landowner.
                    ``(B) Inclusions.--The term `eligible entity' 
                includes an irrigation district, water district, or 
                similar governmental entity in the State of California.
            ``(2) Program.--The term `program' means the water benefits 
        program established under subsection (b).
    ``(b) Establishment.--The Secretary, in consultation with eligible 
States, shall establish a program to promote water conservation, to be 
known as the `water benefits program', under which the Secretary shall, 
through the Natural Resources Conservation Service, in consultation 
with eligible States, provide cost-share payments to willing eligible 
entities for--
            ``(1) in accordance with subsection (f), irrigation 
        efficiency infrastructure or measures that provide in-stream 
        flows for fish and wildlife and other environmental purposes or 
        uses;
            ``(2) converting from production of a water-intensive crop 
        to a crop that requires less water; or
            ``(3)(A) the lease, purchase, dry-year optioning, transfer, 
        or dedication of water or water rights to provide, directly or 
        indirectly through mechanisms consistent with State water law, 
        in-stream flows for fish and wildlife and other environmental 
        purposes or uses (including wetland restoration); or
            ``(B) the conservation, provision, and protection of water 
        to benefit fish and wildlife under a State plan approved by the 
        Secretary for those purposes.
    ``(c) Protection of Private Property Rights.--
            ``(1) Willing sellers and lessors.--An agreement may be 
        executed under this section only if each eligible entity that 
        is a party to the agreement is a willing seller or willing 
        lessor.
            ``(2) Property rights.--Nothing in this section authorizes 
        the Federal Government or any State government to condemn 
        private property.
    ``(d) Eligible States.--An eligible entity may receive a payment 
under the program if the State in which the eligible entity is 
located--
            ``(1)(A) submits to the Secretary a State plan under which 
        the State holds and enforces water rights leased, purchased, 
        dry-year optioned, transferred, or dedicated to provide for in-
        stream flows or other uses that benefit fish and wildlife; or
            ``(B) otherwise establishes a State program to conserve, 
        provide, and protect water to benefit fish and wildlife 
        approved by the Secretary;
            ``(2)(A) submits to the Secretary a State plan to protect 
        in-stream flows or uses; and
            ``(B) obtains approval of the State programs and plans by 
        the Secretary;
            ``(3) designates a State agency to administer the State 
        programs and plans;
            ``(4) subjects each lease, purchase, dry-year optioning, 
        transfer, and dedication of water and water rights to any 
        review and approval required under State law, such as review 
        and approval by a water board, water court, or water engineer 
        of the State; and
            ``(5) ensure that each lease, purchase, dry-year optioning, 
        transfer, and dedication of water and water rights is 
        consistent with State water law.
    ``(e) Role of Secretary.--In carrying out this section, the 
Secretary shall--
            ``(1) establish guidelines for participating States to pay 
        a portion of the cost of assisting the conversion from 
        production of water-intensive crops to crops that require less 
        water;
            ``(2) establish guidelines, in accordance with the field 
        office and technical guides and handbooks of the Natural 
        Resources Conservation Service, for assisting with the cost of 
        on-farm and off-farm irrigation efficiency infrastructure and 
        measures described in subsection (f)(2);
            ``(3) establish guidelines for participating States for--
                    ``(A) the lease, purchase, dry-year optioning, 
                transfer, and dedication of water and water rights 
                under State plans; or
                    ``(B) the conservation, provision, and protection 
                of water to benefit fish and wildlife under a program 
                described in subsection (b)(3)(B);
            ``(4) establish a program within the Agricultural Research 
        Service, in collaboration with the United States Geological 
        Survey, to monitor State efforts under the program, including 
        the construction and maintenance of stream gauging stations; 
        and
            ``(5) consult with eligible States, the Secretary of the 
        Interior, affected Indian tribes, and each affected irrigation 
        district established under or recognized by State law that 
        makes water available to a participating eligible entity, 
        particularly with respect to the establishment and 
        implementation of the program.
    ``(f) Irrigation Efficiency Infrastructure and Measures.--
            ``(1) In general.--The Secretary may pay--
                    ``(A) not more than 75 percent of the cost of 
                converting from production of a water-intensive crop to 
                a crop that requires less water, as described in 
                subsection (e)(2); and
                    ``(B) the share determined under subsection (g) of 
                the cost of on-farm and, in cases in which an 
                irrigation ditch crosses more than 1 farm, off-farm 
                irrigation efficiency infrastructure and measures 
                described in paragraph (2) if not less than 75 percent 
                of the water conserved as a result of the 
                infrastructure and measures is permanently allocated, 
                directly or indirectly, to in-stream flows or uses.
            ``(2) Eligible irrigation efficiency infrastructure and 
        measures.--Eligible irrigation efficiency land-based and fixed 
        infrastructure and measures referred to in paragraph (1) are--
                    ``(A) lining of ditches, insulation or installation 
                of piping, and installation of ditch portals or gates;
                    ``(B) tail water return systems;
                    ``(C) low-energy precision applications;
                    ``(D) low-flow irrigation systems, including drip 
                and trickle systems and micro-sprinkler systems;
                    ``(E) surge valves;
                    ``(F) off-stream storage ponds inundating less than 
                5 acres that the Secretary, in consultation with the 
                State, the Secretary of the Interior, and the Secretary 
                of Commerce, determines to be appropriate to carry out 
                the program;
                    ``(G) conversion from gravity or flood irrigation 
                to low-flow sprinkler or drip irrigation systems;
                    ``(H) intake screens, fish passages, and conversion 
                of diversions to pumps;
                    ``(I) alternate furrow wetting, irrigation 
                scheduling, and similar measures; and
                    ``(J) such other land-based irrigation efficiency 
                infrastructure and measures as the Secretary determines 
                to be appropriate to carry out the program.
    ``(g) Cost Sharing.--
            ``(1) In general.--The share of the cost of converting from 
        production of a water-intensive crop to a crop that requires 
        less water, or of an irrigation efficiency infrastructure or 
        measure assisted under subsection (f), that is not provided by 
        this section--
                    ``(A) shall be not less than 25 percent; and
                    ``(B) shall be paid by--
                            ``(i) a State;
                            ``(ii) an owner or operator of a farm or 
                        ranch (including an Indian tribe); or
                            ``(iii) a nonprofit organization;
                except that at least 10 percent of the share shall be 
                paid by the eligible entity.
            ``(2) Increased share.--If an owner or operator of a farm 
        or ranch pays 50 percent or more of the cost of converting from 
        production of a water-intensive crop to a crop that requires 
        less water, or of an irrigation efficiency infrastructure or 
        measure, the owner or operator shall retain the right to use 50 
        percent of the water conserved by the conversion, 
        infrastructure, or measure.
            ``(3) Leasing of conserved water.--A State shall give an 
        eligible entity with respect to land enrolled in the program 
        the option of leasing, or providing a dry-year option on, 
        conserved water for 30 years.
            ``(4) Water lease and purchase.--The cost of water or water 
        rights that are directly leased, purchased, subject to a dry-
        year option, or dedicated under this section shall not be 
        subject to the cost-sharing requirement of this subsection.
    ``(h) State Plan Approval.--In determining whether to approve a 
State plan under subsection (d)(3), the Secretary shall consider the 
extent to which the State plan significantly advances the goals of 
Federal, State, tribal, and local fish, wildlife, and plant 
conservation plans, including--
            ``(1) plans that address--
                    ``(A) multiple endangered species or threatened 
                species (as defined in section 3 of the Endangered 
                Species Act of 1973 (16 U.S.C. 1532)); or
                    ``(B) species that may become threatened or 
                endangered if conservation measures are not carried 
                out;
            ``(2) agreements entered into, or conservation plans 
        submitted, under section 6 or 10(a)(2)(A), respectively, of the 
        Endangered Species Act of 1973 (16 U.S.C. 1535, 1539(a)(2)(A)); 
        and
            ``(3) plans that provide benefits to the fish, wildlife, or 
        plants located in 1 or more--
                    ``(A) refuges within the National Wildlife Refuge 
                System; or
                    ``(B) State wildlife management areas.
    ``(i) State Water Law.--Nothing in this section--
            ``(1) preempts any State water law;
            ``(2) affects any litigation concerning the right or 
        entitlement to, or lack of right or entitlement to, water that 
        is pending as of the date of enactment of this section;
            ``(3) expands, alters, or otherwise affects the existence 
        or scope of any water right of any individual (except to the 
        extent that the individual agrees otherwise under the program); 
        or
            ``(4) authorizes or entitles the Federal Government to hold 
        or purchase any water right.
    ``(j) Implementation.--In carrying out this section, the Secretary 
shall comply with--
            ``(1) all interstate compacts, court decrees, and Federal 
        and State laws (including regulations) that may affect water or 
        water rights; and
            ``(2) all procedural and substantive State water law.
    ``(k) California Water Law.--
            ``(1) In general.--Nothing in this section authorizes the 
        Secretary to enter into an agreement, in accordance with this 
        section, with a landowner for water obtained from an irrigation 
        district, water district, or other similar governmental entity 
        in the State of California.
            ``(2) District programs.--All landowners participating in 
        the program through membership in a district or entity 
        described in paragraph (1) shall be willing participants in the 
        program.
    ``(l) Groundwater.--A right to groundwater shall not be subject to 
any provision of this section unless the right is granted--
            ``(1) under applicable State law; and
            ``(2) through a groundwater water rights process that is 
        fully integrated with the surface water rights process of the 
        applicable affected State.
    ``(m) Prohibition on Federal Purchase, Lease, and Retention of 
Water Rights.--No water rights under this section shall be purchased, 
leased, or held by the Secretary or any other officer or agent of the 
Federal Government.
    ``(n) Exemption for Certain States.--This section shall not apply 
to the States of Nebraska and North Dakota.
    ``(o) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section--
                    ``(A) $25,000,000 for fiscal year 2002;
                    ``(B) $52,000,000 for fiscal year 2003; and
                    ``(C) $100,000,000 for each of fiscal years 2004 
                through 2006.
            ``(2) Limitation on expenditures.--For any fiscal year, a 
        State may expend not more than 75 percent of the funds made 
        available to the State under the program to pay--
                    ``(A) the cost of converting from production of a 
                water-intensive crop to a crop that requires less 
                water; or
                    ``(B) the cost of irrigation efficiency 
                infrastructure and measures under subsection (f)(1).
            ``(3) Monitoring program.--For each fiscal year, of the 
        funds made available under paragraph (1), the Secretary shall 
        use not more than $5,000,000 to carry out the monitoring 
        program under subsection (e)(5).
            ``(4) Administration.--
                    ``(A) Federal.--For each fiscal year, of the funds 
                made available under paragraph (1), the Secretary shall 
                such sums as are necessary for administration and 
                technical assistance.
                    ``(B) State.--For each fiscal year, of the funds 
                made available under paragraph (1), not more than 3 
                percent shall be made available to States for 
                administration of the program.
            ``(5) Eligible states.--Eligible States under this program 
        shall include only Nevada, California, New Mexico, Oregon, 
        Washington, Maine and New Hampshire.''.
    (d) Conforming Amendment.--Section 1231(b)(6) of the Food Security 
Act of 1985 (16 U.S.C. 3831(b)(6)) (as amended by section 212(b)(1)) is 
amended by striking subparagraph (B) and inserting the following:
                    ``(B)(i) into the conservation reserve enhancement 
                program described in a notice issued on May 27, 1998 
                (63 Fed. Reg. 28965) (or a successor program); or
                    ``(ii) under subsection (j).''.

SEC. 216. 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 by 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.
    ``(e) Use of Other Entities and Persons.--A council may use another 
person or entity to assist in developing and implementing an area plan 
and otherwise carrying out this subtitle.

``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. 217. WILDLIFE HABITAT INCENTIVE PROGRAM.

    (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. WILDLIFE HABITAT INCENTIVE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Endangered species.--The term `endangered species' 
        has the meaning given the term in section 3 of the Endangered 
        Species Act of 1973 (16 U.S.C. 1532).
            ``(2) Program.--The term `program' means the wildlife 
        habitat incentive program established under subsection (b).
            ``(3) Sensitive species.--The term `sensitive species' has 
        the meaning given the term `candidate species' within the 
        meaning of section 424.02(b) of title 50, Code of Federal 
        Regulations (or a successor regulation) or a species which may 
        become threatened or endangered if conservation actions are not 
        taken to conserve that species.
            ``(4) Threatened species.--The term `threatened species' 
        has the meaning given the term in section 3 of the Endangered 
        Species Act of 1973 (16 U.S.C. 1532).
    ``(b) Establishment.--In consultation with the State technical 
committees established under section 1261 of the Food Security Act of 
1985 (16 U.S.C. 3861), the Secretary shall establish the wildlife 
habitat incentive program.
    ``(c) Cost-Share Payments.--
            ``(1) In general.--Under the program, the Secretary shall 
        make cost-share payments, and provide technical assistance, to 
        landowners of eligible land to develop and enhance wildlife 
        habitat (including aquatic habitat) approved by the Secretary.
            ``(2) Endangered and threatened species.--Of the funds made 
        available to carry out this subsection, the Secretary shall use 
        at least 15 percent to make cost-share payments to carry out 
        projects and activities relating to endangered species, 
        threatened species, and sensitive species.
    ``(d) Pilot Program for Essential Plant and Animal Habitat.--Under 
the program, the Secretary may establish procedures to use not more 
than 15 percent of funds made available to acquire and enroll eligible 
land for periods of at least 15 years to protect and restore essential 
(as determined by the Secretary) plant and animal habitat.
    ``(e) Eligible Parties.--After consulting, to the maximum extent 
practicable, with State wildlife officials, the Secretary may provide 
grants under this section to individuals and nonprofit organizations 
that lease public land.
    ``(f) Nexus to Private Land.--Funds from a grant provided under 
subsection (e) may be used, as determined by the Secretary, for a 
purpose on public land if the purpose benefits private land.
    ``(g) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section (including the 
provision of technical assistance), to remain available until 
expended--
            ``(1) $50,000,000 for fiscal year 2002;
            ``(2) $225,000,000 for fiscal year 2003;
            ``(3) $275,000,000 for fiscal year 2004;
            ``(4) $325,000,000 for fiscal years 2005;
            ``(5) $355,000,000 for fiscal year 2006; and
            ``(6) $50,000,000 for fiscal year 2007.''.

``SEC. 1240N. WATERSHED RISK REDUCTION.

    ``(a) In General.--The Secretary, acting through the Natural 
Resources Conservation Service (referred to in this section as the 
`Secretary'), in cooperation with landowners and land users, may carry 
out such projects and activities (including the purchase of floodplain 
easements for runoff retardation and soil erosion prevention) as the 
Secretary determines to be necessary to safeguard lives and property 
from floods, drought, and the products of erosion on any watershed in 
any case in which fire, flood, or any other natural occurrence has 
caused, is causing, or may cause a sudden impairment of that watershed.
    ``(b) Priority.--In carrying out this section, the Secretary shall 
give priority to any project or activity described in subsection (a) 
that is carried out on a floodplain adjacent to a major river, as 
determined by the Secretary.
    ``(c) Prohibition on Duplicative Funds.--No project or activity 
under subsection (a) that is carried out using funds made available 
under this section may be carried out using funds made available under 
any Federal disaster relief program administered by the Secretary 
relating to floods.
    ``(d) Funding.--There is authorized to be appropriated to carry out 
this section $15,000,000 for each of fiscal years 2002 through 2006.

``SEC. 1240O. 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 2006.

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

    ``(a) Findings.--Congress finds that--
            ``(1) private grazing land constitutes nearly \1/2\ of the 
        non-Federal land of the United States and is basic to the 
        environmental, social, and economic stability of rural 
        communities;
            ``(2) private grazing land contains a complex set of 
        interactions among soil, water, air, plants, and animals;
            ``(3) grazing land constitutes the single largest watershed 
        cover type in the United States and contributes significantly 
        to the quality and quantity of water available for all of the 
        many uses of the land;
            ``(4) private grazing land constitutes the most extensive 
        wildlife habitat in the United States;
            ``(5) private grazing land can provide opportunities for 
        improved nutrient management from land application of animal 
        manures and other by-product nutrient resources;
            ``(6) landowners and managers of private grazing land need 
        to continue to recognize conservation problems when the 
        problems arise and receive sound technical assistance to 
        improve or conserve grazing land resources to meet ecological 
        and economic demands;
            ``(7) new science and technology must continually be made 
        available in a practical manner so owners and managers of 
        private grazing land may make informed decisions concerning 
        vital grazing land resources;
            ``(8) agencies of the Department with private grazing land 
        responsibilities are the agencies that have the expertise and 
        experience to provide technical assistance, education, and 
        research to owners and managers of private grazing land for the 
        long-term productivity and ecological health of grazing land;
            ``(9) although competing demands on private grazing land 
        resources are greater than ever before, assistance to private 
        owners and managers of private grazing land is limited and does 
        not meet the demand and basic need for adequately sustaining or 
        enhancing the private grazing land resources; and
            ``(10) private grazing land can be enhanced to provide many 
        benefits to all citizens of the United States through voluntary 
        cooperation among owners and managers of the land, local 
        conservation districts, and the agencies of the Department 
        responsible for providing assistance to owners and managers of 
        land and to conservation districts.
    ``(b) Purpose.--The purpose of this section is 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, tribal, and local grazing conservation program for 
        management of private grazing land;
            ``(2) strengthening technical, educational, and related 
        assistance programs that provide assistance to owners and 
        managers of private grazing land;
            ``(3) conserving and improving wildlife habitat on private 
        grazing land;
            ``(4) conserving and improving fish habitat and aquatic 
        systems through grazing land conservation treatment;
            ``(5) protecting and improving water quality;
            ``(6) improving the dependability and consistency of water 
        supplies;
            ``(7) identifying and managing weed, noxious weed, and 
        brush encroachment problems on private grazing land; and
            ``(8) integrating conservation planning and management 
        decisions by owners and managers of private grazing land, on a 
        voluntary basis.
    ``(c) Definition of Private Grazing Land.--In this section, the 
term `private grazing land land' means rangeland, pastureland, grazed 
forest land, hay land, and any other non-federally owned land that is--
            ``(1) private;
            ``(2) owned by a State; or
            ``(3) under the jurisdiction of an Indian tribe .
    ``(d) Private Grazing Land Conservation Assistance.--
            ``(1) In general.--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; and
                    ``(H) identifying the opportunities and encouraging 
                the diversification of private grazing land 
                enterprises.
            ``(2) Program elements.--
                    ``(A) Funding.--Funds may be used to carry out this 
                section only if the funds are 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 of Agriculture trained in 
                pasture and range management shall be made available 
                under the program to deliver and coordinate technical 
                assistance and education to owners and managers of 
                private grazing land, at the request of the owners and 
                managers.
    ``(e) Grazing Technical Assistance Self-Help.--
            ``(1) Findings.--Congress finds that--
                    ``(A) there is a severe lack of technical 
                assistance for farmers and ranchers that graze 
                livestock;
                    ``(B) Federal budgetary constraints preclude any 
                significant expansion, and may force a reduction of, 
                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 districts.--In 
        accordance with paragraph (3), the Secretary may establish 2 
        grazing management demonstration districts on the 
        recommendation of the grazing land conservation initiative 
        steering committee.
            ``(3) Procedure.--
                    ``(A) Proposal.--Within a reasonable time after the 
                submission of a proposal of an organization of farmers 
                or ranchers engaged in grazing in a district, subject 
                to subparagraphs (B) through (F), the Secretary 
                establish a grazing management district in accordance 
                with the proposal.
                    ``(B) Funding.--The terms and conditions of the 
                funding and operation of the grazing management 
                district shall be proposed by the farmers and ranchers 
                engaged in grazing in the district.
                    ``(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 the 
                proposal submitted by farmers or ranchers under 
                subparagraph (A).
                    ``(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 farmers, ranchers, and technical experts.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2002 through 2006.

``SEC. 1240Q. 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 2006.''.
    (b) Conforming Amendment.--Section 386 of the Federal Agriculture 
Improvement and Reform Act of 1996 (16 U.S.C. 2005b) is repealed.

SEC. 218. FARMLAND PROTECTION PROGRAM.

    (a) In General.--Chapter 2 of the Food Security Act of 1985 (as 
added by section 201) 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), or (iii) 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 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.

``SEC. 1238J. MARKET VIABILITY PROGRAM.

    ``For each year for which funds are made available to carry out 
this subchapter, the Secretary may use not more than $10,000,000 to 
provide matching market viability grants and technical assistance to 
farm and ranch operators that participate in the program.''.
    (b) Funding.--Section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) (as amended by section 202) is amended by adding at the 
end the following:
    ``(d) Farmland Protection Program.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out subchapter B 
        of chapter 2 (including the provision of technical assistance), 
        to remain available until expended--
                    ``(A) $150,000,000 in fiscal year 2002;
                    ``(B) $250,000,000 in fiscal year 2003;
                    ``(C) $400,000,000 in fiscal year 2004;
                    ``(D) $450,000,000 in fiscal year 2005;
                    ``(E) $500,000,000 in fiscal year 2006; and
                    ``(F) $100,000,000 in fiscal year 2007.
            ``(2) Cost sharing.--
                    ``(A) Farmland protection.--
                            ``(i) Share provided under this 
                        subsection.--The share of the cost of 
                        purchasing a conservation easement or other 
                        interest in eligible land described in section 
                        1238I(a) provided under this subsection shall 
                        not exceed 50 percent of the appraised fair 
                        market value of the conservation easement or 
                        other interest in eligible land.
                            ``(ii) 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 section 
                        1238I(a) that is not provided under this 
                        subsection, 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.
                            ``(iii) 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 section 
                        1238I(a) are comparable in achieving the 
                        purposes of section 1238I, 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 section 1238I(a).
                    ``(B) Market viability contributions.--As a 
                condition of receiving a grant under section 1238J, a 
                grantee shall provide funds in an amount equal to the 
                amount of the grant.''.
    (c) Conforming Amendment.--
            (1) In general.--Section 388 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is 
        repealed.
            (2) Effect on contracts.--The amendment made by paragraph 
        (1) 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. 219. GRASSLAND RESERVE PROGRAM.

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

               ``Subchapter C--Grassland Reserve Program

``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary, acting through the Natural 
Resource Conservation Service, shall establish a grassland reserve 
program (referred to in this subchapter as the `program') to assist 
owners in restoring and protecting eligible land described in 
subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) In general.--The Secretary shall enroll in the 
        program, from willing owners, not less than--
                    ``(A) 100 contiguous acres of land west of the 98th 
                meridian; or
                    ``(B) except as provided in paragraph (2), 40 
                contiguous acres of land east of the 98th meridian.
            ``(2) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 2,000,000 acres, of 
        which not more than 500,000 acres shall be available for 
        enrollment of tracts of native grassland of 40 acres or less 
        that are located east of the 98th meridian.
            ``(3) Methods of enrollment.--The Secretary shall enroll 
        land in the program through--
                    ``(A) permanent easements or 30-year easements;
                    ``(B) in a State that imposes a maximum duration 
                for such an easement, an easement for the maximum 
                duration allowed under State law; or
                    ``(C) a 30-year rental agreement.
    ``(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) natural grassland (including prairie and land that 
        contains shrubs or forb) that is indigenous to the locality;
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by natural grassland; and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is 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 easement.

``SEC. 1238O. EASEMENTS AND AGREEMENTS.

    ``(a) In General.--To be eligible to enroll land in the program, 
the owner of the land shall enter into an agreement with the 
Secretary--
            ``(1) if the agreement is for an easement--
                    ``(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; and
            ``(2) if the agreement is for a rental agreement described 
        in section 1238N(b)(3)(C), that specifies the terms and 
        conditions applicable to--
                    ``(A) the Secretary; and
                    ``(B) the owner of the land.
    ``(b) Terms of Easement of Rental Agreement.--An easement or rental 
agreement under subsection (a) shall--
            ``(1) permit--
                    ``(A) grazing on the land in a manner that is 
                consistent with maintaining the viability of natural 
                grass, shrub, forb, and wildlife species indigenous to 
                that locality;
                    ``(B) haying (including haying for seed production) 
                or mowing, except during the nesting and brood-rearing 
                seasons for birds in the area that are in significant 
                decline, as determined by the Natural Resources 
                Conservation Service State conservationist, or are 
                protected Federal or State law; and
                    ``(C) fire rehabilitation, construction of fire 
                breaks, and fences (including placement of the posts 
                necessary for fences);
            ``(2) prohibit--
                    ``(A) the production of row crops, fruit trees, 
                vineyards, or any other agricultural commodity that 
                requires breaking the soil surface; and
                    ``(B) except as permitted under paragraph (1)(C), 
                the conduct of any other activities that would disturb 
                the surface of the land covered by the easement, 
                including--
                            ``(i) plowing; and
                            ``(ii) disking; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out this subchapter or to 
        facilitate the administration of this subchapter.
    ``(c) Evaluation and Ranking of Easement and Rental Agreement 
Applications.--
            ``(1) In general.--The Secretary, in conjunction with State 
        technical committees, shall establish criteria to evaluate and 
        rank applications for easements and rental agreements under 
        this subchapter.
            ``(2) Criteria.--In establishing the criteria, the 
        Secretary shall emphasize support for grazing operations, plant 
        and animal biodiversity, and grassland and land containing 
        shrubs or forb 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 and shrubland 
        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 paying the share of the cost of restoration provided 
        by the Secretary and the provision of technical assistance).
    ``(e) Violations.--
            ``(1) In general.--On the violation of the terms or 
        conditions of an easement, rental agreement, or restoration 
        agreement entered into under this section--
                    ``(A) the easement or rental agreement shall remain 
                in force; and
                    ``(B) 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.
            ``(2) Periodic inspections.--
                    ``(A) In general.--After providing notice to the 
                owner, the Secretary shall conduct periodic inspections 
                of land subject to easements and rental agreements 
                under this subchapter to ensure compliance with the 
                terms of the easement, rental agreement, and applicable 
                restoration agreement.
                    ``(B) Limitation.--The Secretary may not prohibit 
                the owner, or a representative of the owner, from being 
                present during a periodic inspection.

``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;
            ``(2) pay a share of the cost of restoration; and
            ``(3) provide technical assistance to the owner.
    ``(b) Payment Schedule.--
            ``(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.--
                    ``(A) Amount.--If an owner enters into a 30-year 
                rental agreement authorized under section 
                1238N(b)(3)(C), the Secretary shall make 30 annual 
                rental payments to the owner in an amount that equals, 
                to the maximum extent practicable, the 30-year easement 
                payment amount under paragraph (1)(A)(ii).
                    ``(B) Assessment.--Not less than once every 5 years 
                throughout the 30-year rental period, the Secretary 
                shall assess whether the value of the rental payments 
                under subparagraph (A) equals, to the maximum extent 
                practicable, the total amount of 30-year easement 
                payments as of the date of the assessment.
                    ``(C) Adjustment.--If on completion of the 
                assessment under subparagraph (B), the Secretary 
                determines that the rental payments do not equal, to 
                the maximum extent practicable, the value of payments 
                under a 30-year easement, the Secretary shall adjust 
                the amount of the remaining payments to equal, to the 
                maximum extent practicable, the value of a 30-year 
                easement over the entire 30-year rental period.
    ``(c) Cost of Restoration.--The Secretary shall make payments to 
the owner of not more than 75 percent of the cost of carrying out 
measures and practices necessary to restore grassland and shrubland 
functions and values.
    ``(d) Technical Assistance.--The Secretary shall provide owners 
with technical assistance to execute easement documents and restore the 
grassland and shrubland.
    ``(e) 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.
    ``(f) Other Payments.--Easement or rental agreement payments 
received by an owner under this subchapter shall be in addition to, and 
not affect, the total amount of payments that the owner is otherwise 
eligible to receive under other Federal laws (except for funds provided 
to achieve similar purposes).
    ``(g) Regulations.--Not later than 180 days after the date of 
enactment of this subchapter, the Secretary shall promulgate such 
regulations as are necessary to carry out this subchapter.

``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 grassland and shrubland protection;
            ``(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.''.
    (b) Funding.--Section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) (as amended by section 218(b)) is amended by adding at the 
end the following:
    ``(e) Grassland Reserve Program.--The Secretary shall use such sums 
of the Commodity Credit Corporation as are necessary to carry out 
subchapter C of chapter 2 (including the provision of technical 
assistance).''.

SEC. 220. STATE TECHNICAL COMMITTEES.

    Subtitle G of title XII of the Food Security Act of 1985 (16 U.S.C. 
3861 et seq.) is amended to read as follows:

                ``Subtitle G--State Technical Committees

``SEC. 1261. ESTABLISHMENT.

    ``(a) In General.--The Secretary shall establish in each State a 
technical committee to assist the Secretary in the technical 
considerations relating to implementation of any private land 
conservation program administered by the Secretary.
    ``(b) Standards.--Not later than 180 days after the date of 
enactment of the Agriculture, Conservation, and Rural Enhancement Act 
of 2002, the Secretary shall develop standards to be used by each State 
technical committee in the development of technical guidelines under 
section 1262(b) for the implementation of the conservation programs 
under this title.
    ``(c) Composition.--Each State technical committee established 
under subsection (a) shall be composed of professional resource 
managers that represent a variety of disciplines in the soil, water, 
wetland, forest, and wildlife sciences, including representatives from 
among--
            ``(1) the Natural Resources Conservation Service (a 
        representative of which shall serve as Chair of the Committee);
            ``(2) the Farm Service Agency;
            ``(3) the Forest Service;
            ``(4) the Extension Service;
            ``(5) the Fish and Wildlife Service;
            ``(6) such State departments and agencies as the Secretary 
        determines to be appropriate, including--
                    ``(A) a State fish and wildlife agency;
                    ``(B) a State forester or equivalent State 
                official;
                    ``(C) a State water resources agency;
                    ``(D) a State department of agriculture;
                    ``(E) a State soil conservation agency;
                    ``(F) a State association of soil and water 
                conservation districts; and
                    ``(G) land grant colleges and universities;
            ``(7) other individuals or agency personnel with expertise 
        in soil, water, wetland, and wildlife or forest management as 
        the Secretary determines to be appropriate;
            ``(8) agricultural producers with demonstrable conservation 
        expertise;
            ``(9) nonprofit organizations with demonstrable 
        conservation or forestry expertise;
            ``(10) persons knowledgeable about conservation or forestry 
        techniques; and
            ``(11) agribusinesses.

``SEC. 1262. RESPONSIBILITIES.

    ``(a) Information.--
            ``(1) Provision.--
                    ``(A) In general.--Each State technical committee 
                established under section 1261 shall meet regularly to 
                provide information, analyses, and recommendations to 
                the Secretary.
                    ``(B) Manner; form.--Information, analyses, and 
                recommendations described in subparagraph (A) shall--
                            ``(i) be provided in writing, in a manner 
                        that assists the Secretary in determining 
                        matters of fact, technical merit, or scientific 
                        question; and
                            ``(ii) reflect the best professional 
                        information and judgment of the committee.
            ``(2) Coordination.--The Secretary shall coordinate 
        activities conducted under this section with activities 
        conducted under section 1628 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5831).
            ``(3) Public participation.--Each State technical committee 
        shall--
                    ``(A) provide public notice of, and permit public 
                attendance at, meetings considering issues of concern 
                related to any program under this title; and
                    ``(B) distribute meeting minutes to each person 
                attending a meeting described in subparagraph (A).
            ``(4) Communication.--Each State conservationist shall 
        communicate regularly with members of the State technical 
        committee concerning status of action on recommendations of the 
        committee.
    ``(b) Other Duties.--Each State technical committee shall provide 
assistance and offer recommendations with respect to the technical 
aspects of--
            ``(1) wetland protection, restoration, and mitigation 
        requirements;
            ``(2) criteria to be used in evaluating bids for enrollment 
        of environmentally-sensitive land in the conservation reserve 
        program established under subchapter B of chapter 1;
            ``(3) guidelines for haying or grazing and the control of 
        weeds to protect nesting wildlife on designated acreage 
        relating to--
                    ``(A) highly erodible land conservation under 
                subtitle B;
                    ``(B) wetland conservation under subtitle C; or
                    ``(C) other conservation requirements
            ``(4) addressing common weed and pest problems and programs 
        to control weeds and pests found on acreage enrolled in the 
        conservation reserve program;
            ``(5) guidelines for planting perennial cover for water 
        quality and wildlife habitat improvement on designated land;
            ``(6) establishing criteria and priorities for State 
        initiatives under the environmental quality incentives program 
        under chapter 4 of subtitle D;
            ``(7) establishing State and local conservation priorities 
        under the conservation security program under subchapter A of 
        chapter 2 of subtitle D;
            ``(8) establishing and maintaining natural resource 
        indicators and conservation program monitoring and evaluation 
        systems;
            ``(9) developing conservation program education and 
        outreach activities;
            ``(10) evaluating innovative practices and systems under 
        consideration for inclusion in the field office technical 
        guides; and
            ``(11) other matters, as determined to be appropriate by 
        the Secretary.
    ``(c) Authority.--
            ``(1) In general.--Each State technical committee 
        established under section 1261 shall--
                    ``(A) serve in an advisory capacity; and
                    ``(B) have no implementation or enforcement 
                authority.
            ``(2) Consideration by secretary.--In carrying out any 
        program under this title, the Secretary shall give strong 
        consideration to the recommendations of a State technical 
        committee (including factual, technical, or scientific findings 
        and recommendations relating to areas in which the State 
        technical committee bears responsibility).
    ``(d) FACA Requirements.--A State technical committee established 
under section 1261 shall be exempt from the Federal Advisory Committee 
Act (5 U.S.C. App.).
    ``(e) Advisory Subcommittees.--
            ``(1) In general.--Any State or local work group, task 
        force, or other advisory body authorized by any Federal law 
        (including a regulation) to advise the Secretary on issues that 
        are within the areas of responsibility of a State technical 
        committee established under section 1261 shall be considered to 
        be a subcommittee of the State technical committee.
            ``(2) Composition.--A person eligible to serve on a State 
        technical committee under section 1261(c) shall also be 
        eligible to serve on 1 or more subcommittees of a State 
        technical committee.
            ``(3) Local working groups.--A local working group shall be 
        considered to be a subcommittee of a State technical committee 
        established under section 1261.''.

SEC. 221. 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 
        Department;''; and
            (2) in subsection (d), by adding at the end the following:
            ``(3) Use of symbols, slogans, and logos.--
                    ``(A) In general.--The Secretary may authorize the 
                Foundation to use, license, or transfer symbols, 
                slogans, and logos of the Department.
                    ``(B) Income.--
                            ``(i) In general.--All revenue received by 
                        the Foundation from the use, licensing, or 
                        transfer of symbols, slogans, and logos of the 
                        Department 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.''.

                      Subtitle C--Organic Farming

SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``Organic Agriculture Research 
Trust Fund'' (referred to in this section as the ``Fund''), consisting 
of--
            (1) such amounts as are transferred to the Fund under 
        subsection (b); and
            (2) any interest earned on investment of amounts in the 
        Fund under subsection (d).
    (b) Transfer to Fund.--During fiscal year 2003, the Commodity 
Credit Corporation shall transfer $45,000,000 to the Fund, which shall 
remain available until expended.
    (c) Expenditures From Fund.--On request by the Secretary of 
Agriculture, the Secretary of the Treasury shall transfer from the Fund 
to the Secretary of Agriculture such amounts as the Secretary of 
Agriculture determines are necessary--
            (1) to carry out section 1672B of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5925b); and
            (2) for the board of trustees of the National Organic 
        Research Endowment Institute established under section 232(a) 
        (referred to in this subtitle as the ``Institute'') to 
        implement a program of organic products research designed by 
        the Institute and approved by the Secretary.
    (d) Investment of Amounts.--
            (1) In general.--
                    (A) Investment.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary of the Treasury, required to 
                meet current withdrawals.
                    (B) Types of investments.--Investments may be made 
                only in--
                            (i) an obligation of the United States or 
                        an agency of the United States;
                            (ii) a general obligation of a State or a 
                        political subdivision of a State;
                            (iii) an interest-bearing account or 
                        certificate of deposit of a bank that is a 
                        member of the Federal Reserve System; or
                            (iv) an obligation fully guaranteed as to 
                        principal and interest by the United States.
            (2) Acquisition of obligations.--For the purpose of 
        investments under paragraph (1), obligations may be acquired--
                    (A) on original issue at the issue price; or
                    (B) by purchase of outstanding obligations at the 
                market price.
            (3) Sale of obligations.--Any obligation acquired by the 
        Fund may be sold by the Secretary of the Treasury at the market 
        price.
            (4) Credits to fund.--The interest and dividends on, and 
        the proceeds from the sale or redemption of, any obligations, 
        interest-bearing accounts, or certificates of deposit held in 
        the Fund shall be credited to and form a part of the Fund.

SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RESEARCH ENDOWMENT 
              INSTITUTE.

    (a) In General.--The Secretary of Agriculture, in consultation with 
the National Organic Standards Board, shall establish in the Department 
of Agriculture an institute to be known as the ``National Organic 
Research Endowment Institute'' (referred to in this section as the 
``Institute'').
    (b) Board of Trustees.--
            (1) In general.--The Institute shall be headed by a board 
        of trustees composed of producers and handlers of organically 
        grown and processed agricultural commodities appointed by the 
        Secretary.
            (2) Geographic representation.--The membership of the Board 
        of Trustees shall reflect equally each of the various regions 
        in the United States in which organically grown and processed 
        agricultural commodities are produced.
    (c) Duties.--The duties of the Institute shall be to aid the 
organically grown and processed agricultural commodities industry 
through the development and implementation of a plan for organic 
products research described in subsection (d)(1).
    (d) Implementation of Plan.--
            (1) In general.--The board of trustees of the Institute 
        shall implement a plan for organic products research, to be 
        carried out using funds made available to the board of trustees 
        of the Institute from the Organic Agriculture Research Trust 
        Fund established by section 231.
            (2) Expansion of markets.--In implementing the plan 
        described in paragraph (1), the board of trustees of the 
        Institute shall provide a permanent system for funding research 
        activities (as defined in section 1672B of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        5925b).
    (e) Compensation of Members.--A member of the board of trustees of 
the Institute shall serve without compensation.
    (f) Travel Expenses.--To the extent recommended by the board of 
trustees of the Institute and approved by the Secretary of Agriculture, 
a member of the board 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 Institute.

                      Subtitle D--Regional Equity

SEC. 241. ALLOCATION OF CONSERVATION FUNDS BY STATE.

    (a) State Allocation.--
            (1) In general.--To the maximum extent practicable, in each 
        of fiscal years 2002 through 2006, the Secretary of Agriculture 
        (referred to in this section as the ``Secretary''), subject to 
        requirements of the conservation programs administered by the 
        Secretary, shall ensure that each State receives, at a minimum, 
        the share of the funds made available under this title (and 
        amendments made by this title) that equals, at a minimum, 
        $12,000,000 for each State, for use in accordance with 
        paragraph (2), for purposes consistent with this title.
            (2) Use of funds.--Of the minimum amount made available to 
        each State under paragraph (1)--
                    (A) $5,000,000 shall be used in accordance with the 
                environmental quality incentives program under chapter 
                4 of subtitle D of title XII of the Food Security Act 
                of 1985 (16 U.S.C. 3839aa et seq.); and
                    (B) $7,000,000 shall be used in accordance with 
                other conservation programs administered by the 
                Secretary.
            (3) Unused funding.--Any funds made available for a fiscal 
        year under paragraph (1) that are not obligated by April 1 of 
        the fiscal year may be used to carry out other activities under 
        subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3801 et seq.).

                       Subtitle E--Miscellaneous

SEC. 261. 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.

SEC. 262. KLAMATH BASIN.

    (a) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (2) Task force.--The term ``Task Force'' means the Klamath 
        Basin Interagency Task Force established under subsection (b).
    (b) Interagency Task Force.--
            (1) Establishment.--
                    (A) In general.--The Secretary of Agriculture, in 
                conjunction with the Secretary of the Interior, shall 
                establish the Klamath Basin Interagency Task Force.
                    (B) Approval of member.--A decision of the Task 
                Force that affects any area under the jurisdiction of a 
                member of the Task Force described in paragraph (2) 
                shall not be implemented without the consent of the 
                member.
            (2) Membership.--The Task Force shall include 
        representatives of--
                    (A) the Department of Agriculture, including--
                            (i) the Natural Resources Conservation 
                        Service; and
                            (ii) the Farm Service Agency;
                    (B) the Department of the Interior, including--
                            (i) the United States Fish and Wildlife 
                        Service;
                            (ii) the Bureau of Reclamation; and
                            (iii) the Bureau of Indian Affairs;
                    (C) the Department of Commerce, including the 
                National Marine Fisheries Service;
                    (D) the Council on Environmental Quality;
                    (E) the Federal Energy Regulatory Commission;
                    (F) the Environmental Protection Agency; and
                    (G) the United States Geological Survey.
            (3) Duties.--The Task Force shall use conservation programs 
        of the Department of Agriculture and other Federal programs in 
        the Klamath Basin in Oregon and California for the purposes 
        of--
                    (A) promoting agricultural production and 
                environmental quality as compatible Klamath Basin 
                goals;
                    (B) water conservation and improved agricultural 
                practices;
                    (C) aquatic ecosystem restoration;
                    (D) improvement of water quality and quantity;
                    (E) recovery and enhancement of endangered species, 
                including anadromous fish species and resident fish 
                species; and
                    (F) restoration of the national wildlife refuges.
            (4) Cooperative agreement.--The Secretary of Agriculture, 
        Secretary of the Interior, and Secretary of Commerce shall 
        enter into a cooperative agreement to--
                    (A) provide funding to the Task Force; and
                    (B) use conservation programs administered by the 
                Secretary of Agriculture and other Federal programs 
                administered by the Secretary of the Interior and 
                Secretary of Commerce in carrying out the purposes 
                described in paragraph (3).
            (5) Grant program.--
                    (A) In general.--The Task Force shall establish a 
                grant program (including appropriate cost-sharing, 
                monitoring, and enforcement requirements) under which 
                the Secretary of Agriculture, the Secretary of the 
                Interior, or the Secretary of Commerce may enter into 1 
                or more agreements or contracts with non-Federal 
                entities, Indian tribes (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)), environmental organizations, and 
                water districts in the Klamath Basin to carry out the 
                purposes described in paragraph (3).
                    (B) Contract terms.--An agreement or contract under 
                subparagraph (A) shall--
                            (i) specify the responsibilities of the 
                        entity and the Secretary under the agreement or 
                        contract;
                            (ii) provide for such cost-sharing as the 
                        Secretary considers appropriate; and
                            (iii) include mechanisms for monitoring and 
                        enforcement requirements.
    (c) Report and Plan.--
            (1) Development.--
                    (A) Report.--Not later than 180 days after the date 
                of enactment of this Act, the Task Force, after 
                soliciting input from the States of California and 
                Oregon, local public agencies, Indian tribes, Klamath 
                Project districts, environmental organizations, and the 
                stakeholder community, shall issue a report that--
                            (i) considers the impacts of the biological 
                        assessment, the biological opinion, activities 
                        of the Upper Klamath Basin Working Group, 
                        activities of the Pacific Fisheries Restoration 
                        Task Force, State water adjudications, and the 
                        resolution of tribal rights, that may affect 
                        actions of the Task Force; and
                            (ii) includes a description of Federal 
                        spending in the Klamath Basin for fiscal years 
                        2000, 2001, and 2002.
                    (B) Draft plan.--Not later than 60 days after 
                completion of the report under subparagraph (A), the 
                Task Force shall develop, and provide public notice of 
                and an opportunity for comment on, a draft 5-year plan 
                to perform the duties of the Task Force under 
                subsection (b)(3).
                    (C) Final plan.--Not later than 1 year after the 
                date of enactment of this Act, the Task Force shall 
                finalize the plan described in subparagraph (B).
            (2) Matters to be considered.--In developing the plan under 
        paragraph (1), the Task Force shall consider--
                    (A) the use of water conservation easements by 
                voluntary participants;
                    (B) purchase of agricultural land from willing 
                sellers, with priority given to land that will enhance 
                natural water storage capabilities;
                    (C) benefits to the agricultural economy through 
                incentives for the use of irrigation efficiency, water 
                conservation, or other agricultural practices;
                    (D) wetland restoration;
                    (E) feasibility studies for alternative water 
                storage, water conservation, demand reduction, and 
                restoration of endangered species;
                    (F) improvement of upper Klamath Basin watershed 
                and water quality;
                    (G) improvement of habitat in the Tule Lake 
                National Wildlife Refuge, the Lower Klamath National 
                Wildlife Refuge, and the Upper Klamath Lake National 
                Wildlife Refuge; and
                    (H) fish screening and water metering.
    (d) Cooperation With Non-Federal Entities.--In carrying out the 
duties of the Task Force under this section, the Task Force shall--
            (1) consult with--
                    (A) environmental, fishing, and agricultural 
                interests; and
                    (B) on a government-to-government basis, the 
                Klamath, Hoopa, Yurok, and Karuk Tribes;
            (2) provide appropriate opportunities for public 
        participation; and
            (3) hold meetings at least once every 3 months in the 
        Klamath Basin with opportunities for stakeholder participation.
    (e) Funding.--
            (1) In general.--To carry out the purposes described in 
        subsection (b)(3), the Secretary shall use $175,000,000 of the 
        funds of the Commodity Credit Corporation for the period of 
        fiscal years 2003 through 2006, of which--
                    (A) $15,000,000 shall be made available to the 
                Klamath, Hoopa, Yurok, and Karuk Tribes for use in the 
                State of California; and
                    (B) $15,000,000 shall be made available to those 
                Tribes for use in the State of Oregon.
            (2) Funds made available to the tribes.--
                    (A) In general.--The funds made available to the 
                Tribes under paragraph (1) shall be for projects for 
                specific habitat improvement related to the recovery of 
                threatened and endangered species to be carried out by 
                the appropriate tribal natural resources department, 
                consistent with the purposes of this section.
                    (B) Reports.--The Tribes shall provide a biennial 
                report to the Task Force on expenditures of funds 
                during the period covered by the report.
            (3) Other funds.--The funds made available under paragraph 
        (1) shall be in addition to funds available to the States of 
        California and Oregon under other provisions of this Act 
        (including amendments made by this Act).
            (4) Unused funding.--Any funds made available for a fiscal 
        year under paragraph (1) that are not obligated by April 1, 
        2006, may be used to carry out other activities under subtitle 
        D of title XII of the Food Security Act of 1985 (16 U.S.C. 3801 
        et seq.).
            (5) Expiration of authority to obligate funds.--The 
        Secretary may not obligate funds made available under this 
        subsection after September 30, 2006.
    (f) Savings Provision.--Nothing in this section regarding the 
Klamath Basin affects any right or obligation of any party under any 
treaty or any other provision of Federal or State law.
    (g) Cooperative Agreements.--Notwithstanding the Federal Grant and 
Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.), the 
Secretary may enter into cooperative agreements under this section.

                            TITLE III--TRADE

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

SEC. 301. UNITED STATES POLICY.

    Section 2(2) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1691(2)) is amended by inserting before the 
semicolon at the end the following: ``and conflict prevention''.

SEC. 302. 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 to assist development in 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) Certified Institutional Partners.--
            ``(1) In general.--The Administrator or the Secretary, as 
        applicable, shall promulgate regulations and issue guidelines 
        to permit private voluntary organizations and cooperatives to 
        be certified as institutional partners.
            ``(2) Requirements.--To become a certified institutional 
        partner, a private voluntary organization or cooperative shall 
        submit to the Administrator evidence of organizational capacity 
        that describes--
                    ``(A) the financial, programmatic, commodity 
                management, and auditing abilities and practices of the 
                organization or cooperative; and
                    ``(B) the capacity of the organization or 
                cooperative to carry out projects in particular 
                countries.
            ``(3) Multi-country proposals.--A certified institutional 
        partner shall be eligible to--
                    ``(A) submit a single proposal for 1 or more 
                countries in which the certified institutional partner 
                has already demonstrated organizational capacity; and
                    ``(B) receive expedited review of the proposal.''.

SEC. 303. 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. 304. LEVELS OF ASSISTANCE.

    Section 204 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``that for each 
                of fiscal years 1996 through 2002 is not less than 
                2,025,000 metric tons.'' and inserting ``that is not 
                less than--
                    ``(A) 2,100,000 metric tons for fiscal year 2002;
                    ``(B) 2,200,000 metric tons for fiscal year 2003;
                    ``(C) 2,300,000 metric tons for fiscal year 2004;
                    ``(D) 2,400,000 metric tons for fiscal year 2005; 
                and
                    ``(E) 2,500,000 metric tons for fiscal year 
                2006.''; and
                    (B) in paragraph (2), by striking ``1996 through 
                2002'' and inserting ``2002 through 2006''; and
            (2) in subsection (b)(1), by inserting ``(including crude 
        degummed soybean oil)'' after ``bagged commodities''.

SEC. 305. 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 ``2006''.

SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.

    Section 206(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726(a)) is amended by striking 
``$1,000,000,000'' and inserting ``$2,000,000,000''.

SEC. 307. 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 
        submission to 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 policy determination''; 
        and
            (3) by adding at the end the following:
    ``(e) Timely Approval.--
            ``(1) In general.--The Administrator shall 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.
    ``(f) Direct Delivery.--In addition to practices in effect on the 
date of enactment of this subsection, the Secretary may approve an 
agreement that provides for direct delivery of agricultural commodities 
to milling or processing facilities more than 50 percent of the 
interest in which is owned by United States citizens in foreign 
countries, with the proceeds of transactions transferred in cash to 
eligible organizations described in section 202(d) to carry out 
approved projects.''.

SEC. 308. 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 2006''.

SEC. 309. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB TO 
              AFGHANISTAN.

    Title II of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1721 et seq.) is amended by adding at the end the 
following:

``SEC. 209. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB TO 
              AFGHANISTAN.

    ``(a) In General.--The President may establish a pilot emergency 
relief program under this title to provide live lamb to Afghanistan on 
behalf of the people of the United States.
    ``(b) Report.--Not later than January 1, 2004, the Secretary shall 
submit to Congress a report that--
            ``(1)(A) evaluates the success of the program under 
        subsection (a); or
            ``(B) if the program has not succeeded or has not been 
        implemented, explains in detail why the program has not 
        succeeded or has not been implemented; and
            ``(2) discusses the feasibility and desirability of 
        providing assistance in the form of live animals.''.

SEC. 310. SALE PROCEDURE.

    Section 403 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (b)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--In carrying out this Act, the 
        Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Currencies.--Sales of commodities described in 
        paragraph (1) may be in United States dollars or in a different 
        currency.'';
            (2) 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 commodities described in 
        paragraph (1) shall be made at a reasonable market price in the 
        economy where the commodity is to be sold, as determined by the 
        Secretary or the Administrator, as appropriate.''; and
            (3) by adding at the end the following:
    ``(l) Sale Procedure.--Subsections (b)(2) and (e)(2) shall apply to 
sales of commodities in recipient countries to generate proceeds to 
carry out projects under--
            ``(1) section 416(b) of the Agricultural Act of 1949 (7 
        U.S.C. 1431(b)); and
            ``(2) title VIII of the Agricultural Trade Act of 1978.''.

SEC. 311. 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 2006''.

SEC. 312. 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 ``2006''.

SEC. 313. MICRONUTRIENT FORTIFICATION PROGRAM.

    Section 415 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736g-2) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``a 
                micronutrient fortification pilot program'' and 
                inserting ``micronutrient fortification programs''; and
                    (B) in the second sentence--
                            (i) by striking ``the program'' and 
                        inserting ``a program'';
                            (ii) in paragraph (1), by striking ``and'' 
                        at the end;
                            (iii) in paragraph (2)--
                                    (I) by striking ``whole''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(3) encourage technologies and systems for the improved 
        quality and safety of fortified grains and other commodities 
        that are readily transferable to developing countries.'';
            (2) 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''; and
                    (C) by striking ``including'' and inserting ``such 
                as''; and
            (3) in subsection (d), by striking ``2002'' and inserting 
        ``2006''.

SEC. 314. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

    Section 501(c) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1737(c)) is amended--
            (1) by striking ``0.4'' and inserting ``0.5,''; and
            (2) by striking ``2002'' and inserting ``2006''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Term of Supplier Credit Program.--Section 202(a)(2) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is amended by 
striking ``180 days'' and inserting ``12 months''.
    (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 2006''.
    (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) Report on Agricultural Export Credit Programs.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, and annually thereafter, the 
        Secretary 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 status of multilateral 
        negotiations regarding agricultural export credit programs at 
        the World Trade Organization and the Organization of Economic 
        Cooperation and Development in fulfillment of Article 10.2 of 
        the Agreement on Agriculture (as described in section 101(d)(2) 
        of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2))).
            ``(2) Classified information.--The report under paragraph 
        (1) shall be submitted in unclassified form, but may contain a 
        classified annex.''.
    (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 ``2006''.

SEC. 322. MARKET ACCESS PROGRAM.

    (a) In General.--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 $100,000,000 for fiscal year 
                2002, $120,000,000 for fiscal year 2003, $140,000,000 
                for fiscal year 2004, $180,000,000 for fiscal year 
                2005, and $200,000,000 for fiscal year 2006, of the 
                funds of, or an equal value of commodities owned by, 
                the Commodity Credit Corporation, except that this 
                paragraph shall not apply to section 203(h); and''; and
            (4) by adding at the end the following:
            ``(2) Program Priorities.--Of funds made available under 
        paragraph (1)(A) in excess of $90,000,000 for any fiscal year, 
        priority shall be given to proposals--
                    ``(A) made by eligible trade organizations that 
                have never participated in the market access program 
                under this title; or
                    ``(B) for market access programs in emerging 
                markets.''.
    (b) United States Quality Export Initiative.--
            (1) Findings.--Congress finds that--
                    (A) the market access program established under 
                section 203 of the Agricultural Trade Act of 1978 (7 
                U.S.C. 5623) and foreign market development cooperator 
                program established under title VII of that Act (7 
                U.S.C. 5721 et seq.) target generic and value-added 
                agricultural products, with little emphasis on the high 
                quality of United States agricultural products; and
                    (B) new promotional tools are needed to enable 
                United States agricultural products to compete in 
                higher margin, international markets on the basis of 
                quality.
            (2) Initiative.--Section 203 of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5623) is amended by adding at the end the 
        following:
    ``(h) United States Quality Export Initiative.--
            ``(1) In general.--Subject to the availability of 
        appropriations, using the authorities under this section, the 
        Secretary shall establish a program under which, on a 
        competitive basis, using practical and objective criteria, 
        several agricultural products are selected to carry the `U.S. 
        Quality' seal.
            ``(2) Promotional activities.--Agricultural products 
        selected under paragraph (1) shall be promoted using the `U.S. 
        Quality' seal at trade fairs in key markets through electronic 
        and print media.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''.

SEC. 323. 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 2006''.
    (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;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``, including, in the case of a state trading 
        enterprise engaged in the export of an agricultural commodity, 
        pricing practices that are not consistent with sound commercial 
        practices conducted in the ordinary course of trade; or''; and
            (3) by adding at the end the following:
                            ``(iii) changes United States export terms 
                        of trade through a deliberate change in the 
                        dollar exchange rate of a competing 
                        exporter.''.

SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    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 following 
amounts:
            ``(1) For fiscal year 2002, $37,500,000.
            ``(2) For fiscal year 2003, $40,000,000.
            ``(3) For fiscal year 2004 and each subsequent fiscal year, 
        $42,500,000.
    ``(b) Program Priorities.--Of funds or commodities provided under 
subsection (a) in excess of $35,000,000 for any fiscal year, priority 
shall be given to proposals--
            ``(1) made by eligible trade organizations that have never 
        participated in the program established under this title; or
            ``(2) for programs established under this title in emerging 
        markets.''.

SEC. 325. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

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

         ``TITLE VIII--FOOD FOR PROGRESS AND EDUCATION PROGRAMS

``SEC. 801. DEFINITIONS.

    ``In this title:
            ``(1) Cooperative.--The term `cooperative' means a private 
        sector organization the members of which--
                    ``(A) own and control the organization;
                    ``(B) share in the profits of the organization; and
                    ``(C) are provided services (such as business 
                services and outreach in cooperative development) by 
                the organization.
            ``(2) Corporation.--The term `Corporation' means the 
        Commodity Credit Corporation.
            ``(3) Developing country.--The term `developing country' 
        means a foreign country that has--
                    ``(A) a shortage of foreign exchange earnings; and
                    ``(B) difficulty meeting all of the food needs of 
                the country through commercial channels and domestic 
                production.
            ``(4) Eligible commodity.--The term `eligible commodity' 
        means an agricultural commodity (including vitamins and 
        minerals) acquired by the Secretary or the Corporation for 
        disposition in a program authorized under this title through--
                    ``(A) commercial purchases; or
                    ``(B) inventories of the Corporation.
            ``(5) Eligible organization.--The term `eligible 
        organization' means a private voluntary organization, 
        cooperative, nongovernmental organization, or foreign country, 
        as determined by the Secretary.
            ``(6) Emerging agricultural country.--The term `emerging 
        agricultural country' means a foreign country that--
                    ``(A) is an emerging democracy; and
                    ``(B) has made a commitment to introduce or expand 
                free enterprise elements in the agricultural economy of 
                the country.
            ``(7) 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.
            ``(8) Nongovernmental organization.--
                    ``(A) In general.--The term `nongovernmental 
                organization' means an organization that operates on a 
                local level to solve development problems in a foreign 
                country in which the organization is located.
                    ``(B) Exclusion.--The term `nongovernmental 
                organization' does not include an organization that is 
                primarily an agency or instrumentality of the 
                government of a foreign country.
            ``(9) Private voluntary organization.--The term `private 
        voluntary organization' means a nonprofit, nongovernmental 
        organization that--
                    ``(A) receives--
                            ``(i) funds from private sources; and
                            ``(ii) voluntary contributions of funds, 
                        staff time, or in-kind support from the public;
                    ``(B) is engaged in or is planning to engage in 
                nonreligious voluntary, charitable, or development 
                assistance activities; and
                    ``(C) in the case of an organization that is 
                organized under the laws of the United States or a 
                State, 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.
            ``(10) Program.--The term `program' means a food or 
        nutrition assistance or development initiative proposed by an 
        eligible organization and approved by the Secretary under this 
        title.
            ``(11) Recipient country.--The term `recipient country' 
        means an emerging agricultural country that receives assistance 
        under a program.

``SEC. 802. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

    ``(a) In General.--There are established the Food for Progress 
Program and the International Food for Education and Nutrition Program 
through which eligible commodities are made available to eligible 
organizations to carry out programs of assistance in developing 
countries.
    ``(b) Food for Progress Program.--
            ``(1) In general.--To provide agricultural commodities to 
        support the introduction or expansion of free trade enterprises 
        in national economies and to promote food security in recipient 
        countries, the Secretary shall establish the Food for Progress 
        Program, under which the Secretary may enter into agreements 
        (including multiyear agreements and agreements for programs in 
        more than 1 country) with entities described in paragraph (2).
            ``(2) Entities.--The Secretary may enter into agreements 
        under paragraph (1) with--
                    ``(A) the governments of emerging agricultural 
                countries;
                    ``(B) private voluntary organizations;
                    ``(C) nonprofit agricultural organizations and 
                cooperatives;
                    ``(D) nongovernmental organizations; and
                    ``(E) other private entities.
            ``(3) Considerations.--In determining whether to enter into 
        an agreement to establish a program under paragraph (1), the 
        Secretary shall take into consideration whether an emerging 
        agricultural country is committed to carrying out, or is 
        carrying out, policies that promote--
                    ``(A) economic freedom;
                    ``(B) private production of food commodities for 
                domestic consumption; and
                    ``(C) the creation and expansion of efficient 
                domestic markets for the purchase and sale of those 
                commodities.
    ``(c) International Food for Education and Nutrition Program.--
            ``(1) In general.--In cooperation with other countries, the 
        Secretary shall establish an initiative under this title to be 
        known as the `International Food for Education and Nutrition 
        Program', through which the Secretary may provide to eligible 
        organizations agricultural commodities and technical and 
        nutritional assistance in connection with education programs to 
        improve food security and enhance educational opportunities for 
        preschool age and primary school age children in recipient 
        countries.
            ``(2) Agreements.--In carrying out this subsection, the 
        Secretary--
                    ``(A) shall administer the programs under this 
                subsection in manner that is consistent with this 
                title; and
                    ``(B) may enter into agreements with eligible 
                organizations--
                            ``(i) to purchase, acquire, and donate 
                        eligible commodities to eligible organizations 
                        to carry out agreements in recipient countries; 
                        and
                            ``(ii) to provide technical and nutritional 
                        assistance to carry out agreements in recipient 
                        countries.
            ``(3) Other donor countries.--The Secretary shall encourage 
        other donor countries, directly or through eligible 
        organizations--
                    ``(A) to donate goods and funds to recipient 
                countries; and
                    ``(B) to provide technical and nutritional 
                assistance to recipient countries.
            ``(4) Private sector.--The President and the Secretary are 
        urged to encourage the support and active involvement of the 
        private sector, foundations, and other individuals and 
        organizations in programs and activities assisted under this 
        subsection.
            ``(5) Graduation.--An agreement with an eligible 
        organization under this subsection shall include provisions--
                    ``(A)(i) to 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 
                the program under this subsection terminates; and
                    ``(ii) to estimate the period of time required 
                until the recipient country or eligible organization is 
                able to provide sufficient assistance without 
                additional assistance under this subsection; or
                    ``(B) to provide other long-term benefits to 
                targeted populations of the recipient country.
            ``(6) Eligible costs.--Subject to paragraphs (2) and (7), 
        the Secretary shall pay all or part of--
                    ``(A) the costs and charges described in paragraphs 
                (1) through (5) and (7) of section 406(b) of the 
                Agricultural Trade Development and Assistance Act of 
                1954 (7 U.S.C. 1736(b)) with respect to an eligible 
                commodity;
                    ``(B) the internal transportation, storage, and 
                handling costs incurred in moving the eligible 
                commodity, if the Secretary 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 World Declaration on Education for 
                                All convened in 1990 in Jomtien, 
                                Thailand, and the followup Dakar 
                                Framework for Action of the World 
                                Education Forum in 2000; and
                    ``(C) the projected costs of an eligible 
                organization for administration, sales, monitoring, and 
                technical assistance under an agreement under paragraph 
                (2) (including an itemized budget), taking into 
                consideration, as determined by the Secretary--
                            ``(i) the projected amount of such costs 
                        itemized by category; and
                            ``(ii) the projected amount of assistance 
                        to be received from other donors.
            ``(7) Funding.--
                    ``(A) Commodity credit corporation.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may use the funds, facilities, 
                        and authorities of the Corporation to carry out 
                        this subsection.
                            ``(ii) Limitation.--Not more than 
                        $150,000,000 for each of fiscal years 2002 
                        through 2005 shall be used to carry out this 
                        subsection.
                    ``(B) Use limitations.--Of the funds made available 
                under subparagraph (A), the Secretary may use to carry 
                out paragraph (6)(C) not more than $20,000,000 for each 
                of fiscal years 2002 through 2005.
                    ``(C) Reallocation.--Funds not allocated under this 
                subsection by April 30 of a fiscal year shall be made 
                available for proposals submitted under the Food for 
                Progress Program under subsection (b).
            ``(8) Annual 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 an annual report that describes--
                    ``(A) the results of the implementation of this 
                subsection during the year covered by the report, 
                including the impact on the enrollment, attendance, and 
                performance of children in preschools and primary 
                schools targeted under the program under this 
                subsection; and
                    ``(B) the level of commitments by, and the 
                potential for obtaining additional goods and assistance 
                from, other countries for subsequent years.
    ``(d) Terms.--
            ``(1) In general.--The Secretary may provide agricultural 
        commodities under this title on--
                    ``(A) a grant basis; or
                    ``(B) subject to paragraph (2), credit terms.
            ``(2) Credit terms.--Payment for agricultural commodities 
        made available under this title that are purchased on credit 
        terms shall be made on the same basis as payments made under 
        section 103 of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1703).
            ``(3) No effect on domestic programs.--The Secretary shall 
        not make an agricultural commodity available for disposition 
        under this section in any amount that will reduce the amount of 
        the commodity that is traditionally made available through 
        donations to domestic feeding programs or agencies, as 
        determined by the Secretary.
            ``(4) Multiyear agreements.--In carrying out this title, on 
        request and subject to the availability of commodities, the 
        Secretary is encouraged to approve agreements that provide for 
        commodities to be made available for distribution on a 
        multiyear basis, if the agreements otherwise meet the 
        requirements of this title.
    ``(e) Reports.--Each eligible organization that enters into an 
agreement under this title shall submit to the Secretary, at such time 
as the Secretary may request, a report containing such information as 
the Secretary may request relating to the use of agricultural 
commodities and funds provided to the eligible organization under this 
title.
    ``(f) Coordination.--To ensure that the provision of commodities 
under this section is coordinated with and complements other foreign 
assistance provided by the United States, assistance under this section 
shall be coordinated through the mechanism designated by the President 
to coordinate assistance under the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1691 et seq.).
    ``(g) Quality Assurance.--
            ``(1) In general.--The Secretary shall ensure, to the 
        maximum extent practicable, that each eligible organization 
        participating in 1 or more programs under this section--
                    ``(A) uses eligible commodities made available 
                under this title--
                            ``(i) in an effective manner;
                            ``(ii) in the areas of greatest need; and
                            ``(iii) in a manner that promotes the 
                        purposes of this title;
                    ``(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 title;
                    ``(D) monitors and reports on the distribution or 
                sale of eligible commodities provided under this title 
                using methods that, as determined by the Secretary, 
                facilitate accurate and timely reporting;
                    ``(E) periodically evaluates the effectiveness of 
                the program of the eligible organization, including, as 
                applicable, an evaluation of whether the development or 
                food and nutrition purposes of the program can be 
                sustained in a recipient country if the assistance 
                provided to the recipient country is reduced and 
                eventually terminated; and
                    ``(F) considers means of improving the operation of 
                the program of the eligible organization.
            ``(2) Certified institutional partners.--
                    ``(A) In general.--The Secretary shall promulgate 
                regulations and guidelines to permit private voluntary 
                organizations and cooperatives to be certified as 
                institutional partners.
                    ``(B) Requirements.--To become a certified 
                institutional partner, a private voluntary organization 
                or cooperative shall submit to the Secretary evidence 
                of organizational capacity that describes--
                            ``(i) the financial, programmatic, 
                        commodity management, and auditing abilities 
                        and practices of the organization or 
                        cooperative; and
                            ``(ii) the capacity of the organization or 
                        cooperative to carry out projects in particular 
                        countries.
                    ``(C) Multicountry proposals.--A certified 
                institutional partner shall be eligible to--
                            ``(i) submit a single proposal for 1 or 
                        more countries in which the certified 
                        institutional partner has already demonstrated 
                        organizational capacity; and
                            ``(ii) receive expedited review of the 
                        proposal.
    ``(h) Transshipment and Resale.--
            ``(1) In general.--The transshipment or resale of an 
        eligible commodity to a country other than a recipient country 
        shall be prohibited unless the transshipment or resale is 
        approved by the Secretary.
            ``(2) Monetization.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (D), an eligible commodity provided under this 
                section may be sold for foreign currency or United 
                States dollars or bartered, with the approval of the 
                Secretary.
                    ``(B) Sale or barter of food assistance.--The sale 
                or barter of eligible commodities under this title may 
                be conducted only within (as determined by the 
                Secretary)--
                            ``(i) a recipient country or country near 
                        the recipient country; or
                            ``(ii) another country, if--
                                    ``(I) the sale or barter within the 
                                recipient country or nearby country is 
                                not practicable; and
                                    ``(II) the sale or barter within 
                                countries other than the recipient 
                                country or nearby country will not 
                                disrupt commercial markets for the 
                                agricultural commodity involved.
                    ``(C) Humanitarian or development purposes.--The 
                Secretary may authorize the use of proceeds or 
                exchanges to pay the costs incurred by an eligible 
                organization under this title for--
                            ``(i)(I) programs targeted at hunger and 
                        malnutrition; or
                            ``(II) development programs involving food 
                        security or education;
                            ``(ii) transportation, storage, and 
                        distribution of eligible commodities provided 
                        under this title; and
                            ``(iii) administration, sales, monitoring, 
                        and technical assistance.
                    ``(D) Exception.--The Secretary shall not approve 
                the use of proceeds described in subparagraph (C) to 
                fund any administrative expenses of a foreign 
                government.
                    ``(E) Private sector enhancement.--As appropriate, 
                the Secretary may provide eligible commodities under 
                this title in a manner that uses commodity transactions 
                as a means of developing in the recipient countries a 
                competitive private sector that can provide for the 
                importation, transportation, storage, marketing, and 
                distribution of commodities.
    ``(i) Displacement of Commercial Sales.--In carrying out this 
title, the Secretary shall, to the maximum extent practicable 
consistent with the purposes of this title, avoid--
            ``(1) displacing any commercial export sale of United 
        States agricultural commodities that would otherwise be made;
            ``(2) disrupting world prices of agricultural commodities; 
        or
            ``(3) disrupting normal patterns of commercial trade of 
        agricultural commodities with foreign countries.
    ``(j) Deadline for Program Announcements.--
            ``(1) In general.--Before the beginning of the applicable 
        fiscal year, the Secretary shall, to the maximum extent 
        practicable--
                    ``(A) make all determinations concerning program 
                agreements and resource requests for programs under 
                this title; and
                    ``(B) announce those determinations.
            ``(2) Report.--Not later than November 1 of the applicable 
        fiscal 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 list of 
        programs, countries, and commodities, and the total amount of 
        funds for transportation and administrative costs, approved to 
        date under this title.
    ``(k) Military Distribution of Assistance.--
            ``(1) In general.--The Secretary shall ensure, to the 
        maximum extent practicable, that agricultural commodities made 
        available under this title are provided without regard to--
                    ``(A) the political affiliation, geographic 
                location, ethnic, tribal, or religious identity of the 
                recipient; or
                    ``(B) any other extraneous factors, as determined 
                by the Secretary.
            ``(2) Prohibition on handling of commodities by the 
        military.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall not enter into an 
                agreement under this title to provide agricultural 
                commodities if the agreement requires or permits the 
                distribution, handling, or allocation of agricultural 
                commodities by the military forces of any foreign 
                government or insurgent group.
                    ``(B) Exception.--The Secretary may authorize the 
                distribution, handling, or allocation of commodities by 
                the military forces of a country in exceptional 
                circumstances in which--
                            ``(i) nonmilitary channels are not 
                        available for distribution, handling, or 
                        allocation;
                            ``(ii) the distribution, handling, or 
                        allocation is consistent with paragraph (1); 
                        and
                            ``(iii) the Secretary determines that the 
                        distribution, handling, or allocation is 
                        necessary to meet the emergency health, safety, 
                        or nutritional requirements of the population 
                        of a recipient country.
            ``(3) Encouragement of safe passage.--In entering into an 
        agreement under this title that involves 1 or more areas within 
        a recipient country that is experiencing protracted warfare or 
        civil unrest, the Secretary shall, to the maximum extent 
        practicable, encourage all parties to the conflict to--
                    ``(A) permit safe passage of the commodities and 
                other relief supplies; and
                    ``(B) establish safe zones for--
                            ``(i) medical and humanitarian treatment; 
                        and
                            ``(ii) evacuation of injured persons.
    ``(l) Level of Assistance.--The cost of commodities made available 
under this title, and the expenses incurred in connection with the 
provision of those commodities shall be in addition to the level of 
assistance provided under the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1691 et seq.).
    ``(m) Commodity Credit Corporation.--
            ``(1) In general.--Subject to paragraphs (5) through (7), 
        the Secretary may use the funds, facilities, and authorities of 
        the Corporation to carry out this title.
            ``(2) Minimum tonnage.--Subject to paragraph (6)(B), not 
        less than 400,000 metric tons of commodities may be provided 
        under this title for the program established under subsection 
        (b) for each of fiscal years 2002 through 2006.
            ``(3) Authorization of appropriations.--In addition to 
        tonnage authorized under paragraph (2), there are authorized to 
        be appropriated such sums as are necessary to carry out the 
        program established under subsection (b).
            ``(4) Title i funds.--In addition to tonnage and funds 
        authorized under paragraphs (2), (3), and (6)(B), the 
        Corporation may use funds appropriated to carry out title I of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1701 et seq.)) in carrying out the program 
        established under subsection (b).
            ``(5) Limitation on purchases of commodities.--The 
        Corporation may purchase agricultural commodities for 
        disposition under this title only if Corporation inventories 
        are insufficient to satisfy commitments made in agreements 
        entered into under this title.
            ``(6) Eligible costs and expenses.--
                    ``(A) In general.--Subject to subparagraph (B), 
                with respect to an eligible commodity made available 
                under the program established under subsection (b), the 
                Corporation may pay--
                            ``(i) the costs of acquiring the eligible 
                        commodity;
                            ``(ii) the costs associated with packaging, 
                        enriching, preserving, and fortifying of the 
                        eligible commodity;
                            ``(iii) the processing, transportation, 
                        handling, and other incidental costs incurred 
                        before the date on which the commodity is 
                        delivered 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 the eligible commodity from United 
                        States ports to designated points of entry 
                        abroad in a case in which--
                                    ``(I) a recipient country is 
                                landlocked;
                                    ``(II) ports of a recipient country 
                                cannot be used effectively because of 
                                natural or other disturbances;
                                    ``(III) carriers to a specific 
                                country are unavailable; or
                                    ``(IV) substantial savings in costs 
                                or time may be gained by the use of 
                                points of entry other than ports;
                            ``(vi) the charges for general average 
                        contributions arising out of the ocean 
                        transport of commodities transferred; and
                            ``(vii) the costs, in addition to costs 
                        authorized by clauses (i) through (vi), of 
                        providing--
                                    ``(I) assistance in the 
                                administration, sale, and monitoring of 
                                food assistance activities under this 
                                title; and
                                    ``(II) technical assistance for 
                                monetization programs.
                    ``(B) Funding.--Except for costs described in 
                clauses (i) through (iii) of subparagraph (A), unless 
                authorized in advance in an appropriations Act or 
                reallocated under subsection (c)(7)(C)--
                            ``(i) not more than $55,000,000 of funds 
                        that would be available to carry out paragraph 
                        (2) may be used to cover costs under clauses 
                        (iv) through (vii) of subparagraph (A); and
                            ``(ii) of the amount provided under clause 
                        (i), not more than $12,000,000 shall be made 
                        available to cover costs under clauses (vi) and 
                        (vii) of subparagraph (A).
            ``(7) Payment of administrative costs.--An eligible 
        organization that receives payment for administrative costs 
        through monetization of the eligible commodity under subsection 
        (h)(2) shall not be eligible to receive payment for the same 
        administrative costs through direct payments under paragraph 
        (6)(A)(vii)(I).''.
    (b) Conforming Amendments.--
            (1) Section 416(b)(7)(D)(iii) of the Agricultural Act of 
        1949 (7 U.S.C. 1431(b)(7)(D)(iii)) is amended by striking ``the 
        Food for Progress Act of 1985'' and inserting ``title VIII of 
        the Agricultural Trade Act of 1978''.
            (2) The Act of August 19, 1958 (7 U.S.C. 1431 note; Public 
        Law 85-683) is amended by striking ``the Food for Progress Act 
        of 1985'' and inserting ``title VIII of the Agricultural Trade 
        Act of 1978''.
            (3) Section 1110 of the Food Security Act of 1985 (7 U.S.C. 
        1736o) is repealed.

SEC. 326. EXPORTER ASSISTANCE INITIATIVE.

    (a) Findings.--Congress find that--
            (1) information in the possession of Federal agencies other 
        than the Department of Agriculture that is necessary for the 
        export of agricultural commodities and products is available 
        only from multiple disparate sources; and
            (2) because exporters often need access to information 
        quickly, exporters lack the time to search multiple sources to 
        access necessary information, and exporters often are unaware 
        of where the necessary information can be located.
    (b) 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.

    ``(a) In General.--In order to create a single source of 
information for exports of United States agricultural commodities, the 
Secretary shall develop a website on the Internet that collates onto a 
single website all information from all agencies of the Federal 
Government that is relevant to the export of United States agricultural 
commodities.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection (a)--
            ``(1) $1,000,000 for each of fiscal years 2002 through 
        2004; and
            ``(2) $500,000 for each of fiscal years 2005 and 2006.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 331. 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 ``2006''.

SEC. 332. EMERGING MARKETS.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended by striking 
``2002'' each place it appears in subsections (a) and (d)(1)(A)(i) and 
inserting ``2006''.

SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended by adding 
at the end the following:
    ``(g) Biotechnology and Agricultural Trade Program.--
            ``(1) In general.--The Secretary of Agriculture shall 
        establish a program to enhance foreign acceptance of 
        agricultural biotechnology and United States agricultural 
        products developed through biotechnology.
            ``(2) Focus.--The program shall address the continuing and 
        increasing market access, regulatory, and marketing issues 
        relating to export commerce of United States agricultural 
        biotechnology products.
            ``(3) Education and outreach.--
                    ``(A) Foreign markets.--Support for United States 
                agricultural market development organizations to carry 
                out education and other outreach efforts concerning 
                biotechnology shall target such educational initiatives 
                directed toward--
                            ``(i) producers, buyers, consumers, and 
                        media in foreign markets through initiatives in 
                        foreign markets; and
                            ``(ii) government officials, scientists, 
                        and trade officials from foreign countries 
                        through exchange programs.
                    ``(B) Funding for education and outreach.--Funding 
                for activities under subparagraph (A) may be--
                            ``(i) used through--
                                    ``(I) the emerging markets program 
                                under this section; or
                                    ``(II) the Cochran Fellowship 
                                Program under section 1543; or
                            ``(ii) applied directly to foreign market 
                        development cooperators through the foreign 
                        market development cooperator program 
                        established under section 702.
            ``(4) Rapid response.--
                    ``(A) In general.--The Secretary shall assist 
                exporters of United States agricultural commodities in 
                cases in which the exporters are harmed by unwarranted 
                and arbitrary barriers to trade due to--
                            ``(i) marketing of biotechnology products;
                            ``(ii) food safety;
                            ``(iii) disease; or
                            ``(iv) other sanitary or phytosanitary 
                        concerns.
                    ``(B) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $1,000,000 for each of fiscal years 2002 
                through 2006.
            ``(5) Funding.--
                    ``(A) Commodity credit corporation.--The Secretary 
                shall use the funds, facilities, and authorities of the 
                Commodity Credit Corporation to carry out this 
                subsection (other than paragraph (4)).
                    ``(B) Funding amount.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall make 
                available to carry out this subsection (other than 
                paragraph (4)) $15,000,000 for each of fiscal years 
                2002 through 2006.''.

SEC. 334. 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) in the first sentence, by striking ``Foreign 
                currencies'' and inserting ``Proceeds''; and
                    (B) in the second sentence, by striking ``foreign 
                currency''; and
            (3) in clause (iv)--
                    (A) by striking ``Foreign currency proceeds'' and 
                inserting ``Proceeds''; and
                    (B) by striking ``other than the country of 
                origin--'' and all that follows and inserting ``other 
                than the country of origin, for the purpose of carrying 
                out programs under this subsection.''.
    (b) Implementation of Agreements.--Section 416(b)(8) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended by striking 
``(8)(A)'' and all that follows through ``(B) The Secretary'' and 
inserting the following:
            ``(8) Administrative provisions.--
                    ``(A) Direct delivery.--In addition to practices in 
                effect on the date of enactment of this subparagraph, 
                the Secretary may approve an agreement that provides 
                for direct delivery of eligible commodities to milling 
                or processing facilities more than 50 percent of the 
                interest in which is owned by United States citizens in 
                recipient countries, with the proceeds of transactions 
                transferred in cash to eligible organizations to carry 
                out approved projects.
                    ``(B) Regulations.--The Secretary''.
    (c) Certified Institutional Partners.--Section 416 of the 
Agricultural Act of 1949 (7 U.S.C. 1431) is amended by adding at the 
end the following:
    ``(c) Certified Institutional Partners.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations and guidelines to permit private voluntary 
        organizations and cooperatives to be certified as institutional 
        partners.
            ``(2) Requirements.--To become a certified institutional 
        partner, a private voluntary organization or cooperative shall 
        submit to the Secretary evidence of organizational capacity 
        that describes--
                    ``(A) the financial, programmatic, commodity 
                management, and auditing abilities and practices of the 
                organization or cooperative; and
                    ``(B) the capacity of the organization or 
                cooperative to carry out projects in particular 
                countries.
            ``(3) Multi-country proposals.--A certified institutional 
        partner shall be eligible to--
                    ``(A) submit a single proposal for 1 or more 
                countries in which the certified institutional partner 
                has already demonstrated organizational capacity; and
                    ``(B) receive expedited review of the proposal.''.

SEC. 335. AGRICULTURAL TRADE WITH CUBA.

    (a) In General.--Section 908 of the Agriculture, Rural Development, 
Food and Drug Administration and Related Agencies Appropriations Act, 
2001 (22 U.S.C. 7207), is amended by striking subsection (b).
    (b) Conforming Amendments.--Section 908(a) of the Agriculture, 
Rural Development, Food and Drug Administration and Related Agencies 
Appropriations Act, 2001 (22 U.S.C. 7207(a)) (as amended by subsection 
(a)), is amended--
            (1) by striking ``(a)'' and all that follows through 
        ``Notwithstanding'' and inserting the following:
    ``(a) In General.--Notwithstanding'';
            (2) by striking ``(2) Rule of construction.--Nothing in 
        paragraph (1)'' and inserting the following:
    ``(b) Rule of Construction.--Nothing in subsection (a)''; and
            (3) by striking ``(3) Waiver.--The President may waive the 
        application of paragraph (1)'' and inserting the following:
    ``(c) Waiver.--The President may waive the application of 
subsection (a)''.

SEC. 336. SENSE OF CONGRESS CONCERNING AGRICULTURAL TRADE.

    (a) Agriculture Trade Negotiating Objectives.--It is the sense of 
Congress 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 Congress 
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 
Congress 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.

SEC. 337. REPORT ON USE OF PERISHABLE COMMODITIES.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary of Agriculture shall develop and submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on 
deficiencies in transportation and storage infrastructure and 
deficiencies in funding that have limited the use, and expansion of 
use, of highly perishable and semiperishable commodities in 
international food aid programs of the Department of Agriculture.

SEC. 338. SENSE OF SENATE 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 the Senate.--It is the sense of the Senate 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.

                      TITLE IV--NUTRITION PROGRAMS

SEC. 401. SHORT TITLE.

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

                     Subtitle A--Food Stamp Program

SEC. 411. 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 Made by Household Members.--
            ``(1) In general.--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 the 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. 661 et seq.) concerning payments made in prior months in 
        lieu of obtaining current information from the household.
            ``(2) Duration of determination of amount of support 
        payments.--If a State agency makes a determination of the 
        amount of support payments of a household under paragraph (1), 
        the State agency may provide that the amount of the exclusion 
        or deduction for the household shall not change until the 
        eligibility of the household is next redetermined under section 
        11(e)(4).''.

SEC. 412. 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. 1381 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. 413. INCREASE IN BENEFITS TO HOUSEHOLDS WITH CHILDREN.

    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.--Subject to the other provisions 
                of this paragraph, the Secretary shall allow for each 
                household a standard deduction that is equal to the 
                greater of--
                            ``(i) the applicable percentage specified 
                        in subparagraph (D) of the applicable income 
                        standard of eligibility established under 
                        subsection (c)(1); or
                            ``(ii) the minimum deduction specified in 
                        subparagraph (E).
                    ``(B) Guam.--The Secretary shall allow for each 
                household in Guam a standard deduction that is--
                            ``(i) equal to the applicable percentage 
                        specified in subparagraph (D) 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 less than the minimum deduction 
                        for Guam specified in subparagraph (E).
                    ``(C) Households of 6 or more members.--The income 
                standard of eligibility established under subsection 
                (c)(1) for a household of 6 members shall be used to 
                calculate the standard deduction for each household of 
                6 or more members.
                    ``(D) Applicable percentage.--For the purpose of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) 8 percent for each of fiscal years 
                        2002 through 2007;
                            ``(ii) 8.25 percent for fiscal year 2008;
                            ``(iii) 8.5 percent for each of fiscal 
                        years 2009 and 2010; and
                            ``(iv) 9 percent for fiscal year 2011 and 
                        each fiscal year thereafter.
                    ``(E) Minimum deduction.--The minimum deduction 
                shall be $134, $229, $189, $269, and $118 for the 48 
                contiguous States and the District of Columbia, Alaska, 
                Hawaii, Guam, and the Virgin Islands of the United 
                States, respectively.''.

SEC. 414. 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--
            (1) in subparagraph (A)--
                    (A) by striking ``A household'' and inserting the 
                following:
                            ``(i) In general.--A household''; and
                    (B) by adding at the end the following:
                            ``(ii) Inclusion of certain payments.--In 
                        determining the shelter expenses of a household 
                        under this paragraph, the State agency shall 
                        include any required payment to the landlord of 
                        the household without regard to whether the 
                        required payment is designated to pay specific 
                        charges.''; and
            (2) 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. 415. SIMPLIFIED UTILITY ALLOWANCE.

    Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as amended 
by section 414(b)(1)(B)) 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. 416. SIMPLIFIED PROCEDURE FOR DETERMINATION OF EARNED INCOME.

    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 earned income.--
                            ``(i) In general.--A State agency may elect 
                        to determine monthly earned income by 
                        multiplying weekly income by 4 and biweekly 
                        income by 2.
                            ``(ii) Adjustment of earned income 
                        deduction.--A State agency that makes an 
                        election described in clause (i) shall adjust 
                        the earned income deduction under subsection 
                        (e)(2)(B) to the extent necessary to prevent 
                        the election from resulting in increased costs 
                        to the food stamp program, as determined 
                        consistent with standards promulgated by the 
                        Secretary.''.

SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

    Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) 
(as amended by section 416) is amended by adding at the end the 
following:
                    ``(D) 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 redetermination 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. 418. SIMPLIFIED DEFINITION OF RESOURCES.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended 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), the 
                Secretary shall promulgate regulations under which 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.--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, 
                        except to the extent that any of those types of 
                        resources are excluded under another paragraph 
                        of this subsection.''.

SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

    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''.

SEC. 420. 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 standard established under section 
                        5(c)(2).''.

SEC. 421. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.

    (a) In General.--Section 6(o) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(o)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C)--
                            (i) by striking ``subsection (d)(4),'' and 
                        inserting ``subsection (d)(4)''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) a job search program or job search training 
                program if--
                            ``(i) the program meets standards 
                        established by the Secretary to ensure that the 
                        participant is continuously and actively 
                        seeking employment in the private sector; and
                            ``(ii) no position is currently available 
                        for the participant in an employment or 
                        training program that meets the requirements of 
                        subparagraph (C).'';
            (2) in paragraph (2)--
                    (A) by striking ``36-month'' and inserting ``24-
                month''; and
                    (B) by striking ``3'' and inserting ``6'';
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Eligibility of individuals while meeting work 
        requirement.--Notwithstanding paragraph (2), an individual who 
        would otherwise be ineligible under that paragraph shall be 
        eligible to participate in the food stamp program during any 
        period in which the individual meets the work requirement of 
        subparagraph (A), (B), or (C) of that paragraph.''; and
            (4) in paragraph (6)(A)(ii)--
                    (A) in subclause (III), by adding ``and'' at the 
                end;
                    (B) in subclause (IV)--
                            (i) by striking ``3'' and inserting ``6''; 
                        and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (C) by striking subclause (V).
    (b) Implementation of Amendments.--For the purpose of implementing 
the amendments made by subsection (a), a State agency shall disregard 
any period during which an individual received food stamp benefits 
before the effective date of this title.

SEC. 422. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

    (a) In General.--Section 7(i)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2016(i)(1)) is amended by adding at the end the following:
                    ``(E) Access to ebt systems.--
                            ``(i) In general.--No benefits shall be 
                        taken off-line or otherwise made inaccessible 
                        because of inactivity until at least 180 days 
                        have elapsed since a household last accessed 
                        the account of the household.
                            ``(ii) Notice to household.--In a case in 
                        which benefits are taken off-line or otherwise 
                        made inaccessible, the household shall be sent 
                        a notice that--
                                    ``(I) explains how to reactivate 
                                the benefits; and
                                    ``(II) offers assistance if the 
                                household is having difficulty 
                                accessing the benefits of the 
                                household.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to each State agency beginning on the date on which 
the State agency, after the date of enactment of this Act, enters into 
a contract to operate an electronic benefit transfer system.

SEC. 423. 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. 424. 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) Simplified Procedures for Residents of Certain Group 
Facilities.--
            ``(1) In general.--At the option of the State agency, 
        allotments for residents of facilities described in 
        subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
        determined and issued under this subsection in lieu of 
        subsection (a).
            ``(2) Amount of allotment.--The allotment for each eligible 
        resident described in paragraph (1) shall be calculated in 
        accordance with standardized procedures established by the 
        Secretary that take into account the allotments typically 
        received by residents of facilities described in paragraph (1).
            ``(3) Issuance of allotment.--
                    ``(A) In general.--The State agency shall issue an 
                allotment determined under this subsection to the 
                administration of a facility described in paragraph (1) 
                as the authorized representative of the residents of 
                the facility.
                    ``(B) Adjustment.--The Secretary shall establish 
                procedures to ensure that a facility described in 
                paragraph (1) 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 
                facility.
            ``(4) Departures of covered residents.--
                    ``(A) Notification.--Any facility described in 
                paragraph (1) that receives an allotment for a resident 
                under this subsection 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--
                                    ``(I) is eligible for continued 
                                benefits under the food stamp program; 
                                and
                                    ``(II) should contact the State 
                                agency concerning continuation of the 
                                benefits.
                    ``(B) Issuance to departed residents.--On receiving 
                a notification under subparagraph (A)(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 subsection 
                        unless the departed resident reapplies to 
                        participate in the food stamp program.
                    ``(C) State option.--The State agency may elect not 
                to issue an allotment under subparagraph (B)(i) if the 
                State agency lacks sufficient information on the 
                location of the departed resident to provide the 
                allotment.
                    ``(D) 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 subsection.''.
    (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. 425. REDEMPTION OF BENEFITS THROUGH GROUP LIVING ARRANGEMENTS.

    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.''.

SEC. 426. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE 
              INTERNET.

    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;''.

SEC. 427. SIMPLIFIED DETERMINATIONS OF CONTINUING ELIGIBILITY.

    (a) In General.--Section 11(e) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)) is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4)(A) that the State agency shall periodically require 
        each household to cooperate in a redetermination of the 
        eligibility of the household.
            ``(B) A redetermination under subparagraph (A) shall--
                    ``(i) be based on information supplied by the 
                household; and
                    ``(ii) conform to standards established by the 
                Secretary.
            ``(C) The interval between redeterminations of eligibility 
        under subparagraph (A) shall not exceed the eligibility review 
        period;'' and
            (2) in paragraph (10)--
                    (A) by striking ``within the household's 
                certification period''; and
                    (B) by striking ``or until'' and all that follows 
                through ``occurs earlier''.
    (b) Conforming Amendments.--
            (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
        2012(c)) is amended--
                    (A) by striking ``Certification period'' and 
                inserting ``Eligibility review period''; and
                    (B) by striking ``certification period'' each place 
                it appears and inserting ``eligibility review period''.
            (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
        is amended--
                    (A) in subsection (d)(2), by striking ``in the 
                certification period which'' and inserting ``that''; 
                and
                    (B) in subsection (e) (as amended by section 
                414(b)(1)(B))--
                            (i) in paragraph (5)(B)(ii)--
                                    (I) in subclause (II), by striking 
                                ``certification period'' and inserting 
                                ``eligibility review period''; and
                                    (II) in subclause (III), by 
                                striking ``has been anticipated for the 
                                certification period'' and inserting 
                                ``was anticipated when the household 
                                applied or at the most recent 
                                redetermination of eligibility for the 
                                household''; and
                            (ii) in paragraph (6)(C)(iii)(II), by 
                        striking ``the end of a certification period'' 
                        and inserting ``each redetermination of the 
                        eligibility of the household''.
            (3) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
        is amended--
                    (A) in subsection (c)(1)(C)(iv), by striking 
                ``certification period'' each place it appears and 
                inserting ``interval between required redeterminations 
                of eligibility''; and
                    (B) in subsection (d)(1)(D)(v)(II), by striking ``a 
                certification period'' and inserting ``an eligibility 
                review period''.
            (4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
        2017(c)) is amended--
                    (A) in the second sentence of paragraph (1), by 
                striking ``within a certification period''; and
                    (B) in paragraph (2)(B), by striking ``expiration 
                of'' and all that follows through ``during a 
                certification period,'' and inserting ``termination of 
                benefits to the household,''.
            (5) Section 11(e)(16) of the Food Stamp Act of 1977 (7 
        U.S.C. 2020(e)(16)) is amended by striking ``the certification 
        or recertification'' and inserting ``determining the 
        eligibility''.

SEC. 428. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION EFFORTS.

    Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 2020(f)) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Nutrition education clearinghouse.--The Secretary 
        shall--
                    ``(A) request State agencies to submit to the 
                Secretary descriptions of successful nutrition 
                education programs designed for use in the food stamp 
                program and other nutrition assistance programs;
                    ``(B) make the descriptions submitted under 
                subparagraph (A) available on the website of the 
                Department of Agriculture; and
                    ``(C) inform State agencies of the availability of 
                the descriptions on the website.''.

SEC. 429. 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 continue to receive food stamp benefits for a 
        period of not more than 6 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--
                    ``(A) the change in household income as a result of 
                the termination of cash assistance; and
                    ``(B) any changes in circumstances that may result 
                in an increase in the food stamp allotment of the 
                household and that the household elects to report.
            ``(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 
                redetermination of eligibility; and
                    ``(B) initiate a new eligibility review period for 
                the household without regard to whether the preceding 
                eligibility review 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.''.
    (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 section 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. 430. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

    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.''.

SEC. 431. 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) in paragraph (1)--
                    (A) by striking ``enhances payment accuracy'' and 
                all that follows through ``(A) the Secretary'' and 
                inserting the following: ``enhances payment accuracy 
                and that has the following elements:
                    ``(A) Enhanced administrative funding.--With 
                respect to fiscal year 2001, the Secretary'';
                    (B) in subparagraph (A)--
                            (i) by striking ``one percentage point to a 
                        maximum of 60'' and inserting ``\1/2\ of 1 
                        percentage point to a maximum of 55''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period; and
                    (C) by striking subparagraph (B) and all that 
                follows and inserting the following:
                    ``(B) Investigation and initial sanctions.--
                            ``(i) Investigation.--Except as provided 
                        under subparagraph (C), for any fiscal year in 
                        which the Secretary determines that a 95 
                        percent statistical probability exists that the 
                        payment error rate of a State agency exceeds 
                        the national performance measure for payment 
                        error rates announced under paragraph (6) by 
                        more than 1 percentage point, other than for 
                        good cause shown, the Secretary shall 
                        investigate the administration by the State 
                        agency of the food stamp program unless the 
                        Secretary determines that sufficient 
                        information is already available to review the 
                        administration by the State agency.
                            ``(ii) Initial sanctions.--If an 
                        investigation under clause (i) results in a 
                        determination that the State agency has been 
                        seriously negligent (as determined under 
                        standards promulgated by the Secretary), the 
                        State agency shall pay the Secretary an amount 
                        that reflects the extent of such negligence (as 
                        determined under standards promulgated by the 
                        Secretary), not to exceed 5 percent of the 
                        amount provided to the State agency under 
                        subsection (a) for the fiscal year.
                    ``(C) Additional sanctions.--If, for any fiscal 
                year, the Secretary determines that a 95 percent 
                statistical probability exists that the payment error 
                rate of a State agency exceeds the national performance 
                measure for payment error rates announced under 
                paragraph (6) by more than 1 percentage point, other 
                than for good cause shown, and that the State agency 
                was sanctioned under this paragraph or was the subject 
                of an investigation or review under subparagraph (B)(i) 
                for each of the 2 immediately preceding fiscal years, 
                the State agency shall pay to the Secretary an amount 
                equal to the product obtained by multiplying--
                            ``(i) the value of all allotments issued by 
                        the State agency in the fiscal year;
                            ``(ii) the lesser of--
                                    ``(I) the ratio that--
                                            ``(aa) the amount by which 
                                        the payment error rate of the 
                                        State agency for the fiscal 
                                        year exceeds by more than 1 
                                        percentage point the national 
                                        performance measure for the 
                                        fiscal year; bears to
                                            ``(bb) 10 percent; or
                                    ``(II) 1; and
                            ``(iii) the amount by which the payment 
                        error rate of the State agency for the fiscal 
                        year exceeds by more than 1 percentage point 
                        the national performance measure for the fiscal 
                        year.
                    ``(D) Corrective action plans.--The Secretary shall 
                foster management improvements by the States by 
                requiring State agencies to develop and implement 
                corrective action plans to reduce payment errors.'';
            (2) in paragraph (2)(A), by inserting before the semicolon 
        the following: ``, as adjusted downward as appropriate under 
        paragraph (10)'';
            (3) 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, 
        enhanced administrative funding, claim for payment error under 
        paragraph (1), or performance under the performance measures 
        under paragraph (11).'';
            (4) in paragraph (5), 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 
        payment error rate for the State agency for the fiscal year, to 
        comply with paragraph (10), and to determine the amount of 
        enhanced administrative funding under paragraph (1)(A), high 
        performance bonus payments under paragraph (11), or claims 
        under subparagraph (B) or (C) of paragraph (1).'';
            (5) in paragraph (6)--
                    (A) in the first and third sentences, by striking 
                ``paragraph (5)'' each place it appears and inserting 
                ``paragraph (8)''; and
                    (B) in the first sentence, by inserting ``(but 
                determined without regard to paragraph (10))'' before 
                ``times that''; and
            (6) by adding at the end the following:
            ``(10) Adjustments of payment error rate.--
                    ``(A) In general.--
                            ``(i) Adjustment for higher percentage of 
                        households with earned income.--With respect to 
                        fiscal year 2002 and each fiscal year 
                        thereafter, in applying paragraph (1), the 
                        Secretary shall adjust the payment error rate 
                        determined under paragraph (2)(A) as necessary 
                        to take into account any increases in errors 
                        that result from the State agency's having a 
                        higher percentage of participating households 
                        that have earned income than the lesser of--
                                    ``(I) the percentage of 
                                participating households in all States 
                                that have earned income; or
                                    ``(II) the percentage of 
                                participating households in the State 
                                in fiscal year 1992 that had earned 
                                income.
                            ``(ii) Adjustment for higher percentage of 
                        households with noncitizen members.--With 
                        respect to fiscal year 2002 and each fiscal 
                        year thereafter, in applying paragraph (1), the 
                        Secretary shall adjust the payment error rate 
                        determined under paragraph (2)(A) as necessary 
                        to take into account any increases in errors 
                        that result from the State agency's having a 
                        higher percentage of participating households 
                        that have 1 or more members who are not United 
                        States citizens than the lesser of--
                                    ``(I) the percentage of 
                                participating households in all States 
                                that have 1 or more members who are not 
                                United States citizens; or
                                    ``(II) the percentage of 
                                participating households in the State 
                                in fiscal year 1998 that had 1 or more 
                                members who were not United States 
                                citizens.
                    ``(B) Additional adjustments.--For fiscal year 2003 
                and each fiscal year thereafter, the Secretary may make 
                such additional adjustments to the payment error rate 
                determined under paragraph (2)(A) as the Secretary 
                determines to be consistent with achieving the purposes 
                of this Act.''.
    (b) Applicability.--Except as otherwise provided in the amendments 
made by subsection (a), the amendments made by subsection (a) shall 
apply to fiscal year 2001 and each fiscal year thereafter.

SEC. 432. 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. 433. BONUSES FOR STATES THAT DEMONSTRATE HIGH PERFORMANCE.

    (a) In General.--Section 16(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)) (as amended by section 431(a)(6)) is amended by adding 
at the end the following:
            ``(11) High performance bonus payments.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) with respect to fiscal year 2002 and 
                        each fiscal year thereafter, measure the 
                        performance of each State agency with respect 
                        to each of the performance measures specified 
                        in subparagraph (B); and
                            ``(ii) in fiscal year 2003 and each fiscal 
                        year thereafter, subject to subparagraphs (C) 
                        and (D), make high performance bonus payments 
                        to the State agencies with the highest or most 
                        improved performance with respect to those 
                        performance measures.
                    ``(B) Performance measures.--The performance 
                measures specified in this subparagraph are--
                            ``(i) the ratio, expressed as a percentage, 
                        that--
                                    ``(I) the number of households in 
                                the State that--
                                            ``(aa) receive food stamps;
                                            ``(bb) have incomes less 
                                        than 130 percent of the poverty 
                                        line (as defined in section 673 
                                        of the Community Services Block 
                                        Grant Act (42 U.S.C. 9902));
                                            ``(cc) have annual earnings 
                                        equal to at least 1000 times 
                                        the Federal minimum hourly rate 
                                        under the Fair Labor Standards 
                                        Act of 1938 (29 U.S.C. 201 et 
                                        seq.); and
                                            ``(dd) have children under 
                                        age 18; bears to
                                    ``(II) the number of households in 
                                the State that meet the criteria 
                                specified in items (bb) through (dd) of 
                                subclause (I); and
                            ``(ii) 4 additional performance measures, 
                        established by the Secretary in consultation 
                        with the National Governors Association, the 
                        American Public Human Services Association, and 
                        the National Conference of State Legislatures 
                        not later than 180 days after the date of 
                        enactment of this paragraph, of which not less 
                        than 1 performance measure shall relate to 
                        provision of timely and appropriate services to 
                        applicants for and recipients of food stamp 
                        benefits.
                    ``(C) High performance bonus payments.--
                            ``(i) Definition of caseload.--In this 
                        subparagraph, the term `caseload' has the 
                        meaning given the term in section 6(o)(6)(A).
                            ``(ii) Amount of payments.--
                                    ``(I) In general.--In fiscal year 
                                2003 and each fiscal year thereafter, 
                                the Secretary shall--
                                            ``(aa) make 1 high 
                                        performance bonus payment of 
                                        $6,000,000 for each of the 5 
                                        performance measures under 
                                        subparagraph (B); and
                                            ``(bb) allocate the high 
                                        performance bonus payment with 
                                        respect to each performance 
                                        measure in accordance with 
                                        subclauses (II) and (III).
                                    ``(II) Payments for performance 
                                measures.--In fiscal year 2003 and each 
                                fiscal year thereafter, the Secretary 
                                shall allocate, in accordance with 
                                subclause (III), the high performance 
                                bonus payment made for each performance 
                                measure under subparagraph (B) among 
                                the 6 State agencies with, as 
                                determined by the Secretary by 
                                regulation--
                                            ``(aa) the greatest 
                                        improvement in the level of 
                                        performance with respect to the 
                                        performance measure between the 
                                        2 most recent years for which 
                                        the Secretary determines that 
                                        reliable data are available;
                                            ``(bb) the highest 
                                        performance in the performance 
                                        measure for the most recent 
                                        year for which the Secretary 
                                        determines that reliable data 
                                        are available; or
                                            ``(cc) a combination of the 
                                        greatest improvement described 
                                        in item (aa) and the highest 
                                        performance described in item 
                                        (bb).
                                    ``(III) Allocation among state 
                                agencies eligible for payments.--A high 
                                performance bonus payment under 
                                subclause (II) made for a performance 
                                measure shall be allocated among the 6 
                                State agencies eligible for the payment 
                                in the ratio that--
                                            ``(aa) the caseload of each 
                                        of the 6 State agencies 
                                        eligible for the payment; bears 
                                        to
                                            ``(bb) the caseloads of the 
                                        6 State agencies eligible for 
                                        the payment.
                    ``(D) Prohibition on receipt of high performance 
                bonus payments by state agencies subject to 
                sanctions.--If, for any fiscal year, a State agency is 
                subject to a sanction under paragraph (1), the State 
                agency shall not be eligible for a high performance 
                bonus payment for the fiscal year.
                    ``(E) Payments not subject to judicial review.--A 
                determination by the Secretary whether, and in what 
                amount, to make a high performance bonus payment under 
                this paragraph shall not be subject to judicial 
                review.''.
    (b) Applicability.--The amendment made by subsection (a) takes 
effect on the date of enactment of this Act.

SEC. 434. 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)--
                    (A) by striking ``, to remain available until 
                expended,''; and
                    (B) by striking clause (vii) and inserting the 
                following:
                            ``(vii) for each of fiscal years 2002 
                        through 2006, $90,000,000, to remain available 
                        until expended.'';
            (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 
                        $25,000,000 for each of fiscal years 2002 
                        through 2006 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--
                                    ``(I) exhaust the allocation to the 
                                State agency under subparagraph (A) 
                                (including any reallocation that has 
                                been made available under subparagraph 
                                (C)); and
                                    ``(II) 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--
                                            ``(aa) is in the last month 
                                        of the 6-month period described 
                                        in section 6(o)(2);
                                            ``(bb) is not eligible for 
                                        an exception under section 
                                        6(o)(3);
                                            ``(cc) is not eligible for 
                                        a waiver under section 6(o)(4); 
                                        and
                                            ``(dd) is not eligible for 
                                        an exemption under section 
                                        6(o)(6).''.
    (b) Rescission of 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 cease to be available 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'' and inserting ``except that, in the case 
of each of fiscal years 2002 through 2009, the State agency may limit 
such reimbursement to each participant to $50 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 ``except that such 
total amount shall not exceed an amount representing $25 per 
participant per month'' and inserting ``except that, in the case of 
each of fiscal years 2002 through 2009, such total amount shall not 
exceed an amount representing $50 per participant per month''.
    (e) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 435. 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 ``2006''; and
            (2) in subparagraph (B)(ii), by striking ``2002'' and 
        inserting ``2006''.
    (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 ``2006''.
    (c) Grants To Improve Food Stamp Participation.--Section 
17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is 
amended in the first sentence by striking ``2002'' and inserting 
``2006''.
    (d) 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 ``2002'' and inserting ``2006''.

SEC. 436. COORDINATION OF PROGRAM INFORMATION EFFORTS.

    Section 16(k)(5) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(k)(5)) is amended--
            (1) in subparagraph (A), by striking ``No funds'' and 
        inserting ``Except as provided in subparagraph (C), no funds''; 
        and
            (2) by adding at the end the following:
                    ``(C) Food stamp informational activities.--
                Subparagraph (A) shall not apply to any funds or 
                expenditures described in clause (i) or (ii) of 
                subparagraph (B) used to pay the costs of any activity 
                that is eligible for reimbursement under subsection 
                (a)(4).''.

SEC. 437. EXPANDED GRANT AUTHORITY.

    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.''.

SEC. 438. ACCESS AND OUTREACH PILOT PROJECTS.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by striking subsection (h) and inserting the following:
    ``(h) Access and Outreach Pilot Projects.--
            ``(1) In general.--The Secretary shall make grants to State 
        agencies and other entities to pay the Federal share of the 
        eligible costs of projects to improve--
                    ``(A) access by eligible individuals to benefits 
                under the food stamp program; or
                    ``(B) outreach to individuals eligible for those 
                benefits.
            ``(2) Federal share.--The Federal share shall be 75 
        percent.
            ``(3) Types of projects.--To be eligible for a grant under 
        this subsection, a project may consist of--
                    ``(A) establishing a single site at which 
                individuals may apply for--
                            ``(i) benefits under the food stamp 
                        program; and
                            ``(ii)(I) supplemental security income 
                        benefits under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(II) benefits under the medicaid program 
                        under title XIX of the Social Security Act (42 
                        U.S.C. 1396 et seq.);
                            ``(III) benefits under the State children's 
                        health insurance program under title XXI of the 
                        Social Security Act (42 U.S.C. 1397aa et seq.);
                            ``(IV) benefits under the special 
                        supplemental nutrition program for women, 
                        infants, and children under section 17 of the 
                        Child Nutrition Act of 1966 (42 U.S.C. 1786); 
                        or
                            ``(V) benefits under such other programs as 
                        the Secretary determines to be appropriate;
                    ``(B) developing forms that allow an individual to 
                apply for more than 1 of the programs referred to in 
                subparagraph (A);
                    ``(C) dispatching State agency personnel to conduct 
                outreach and enroll individuals in the food stamp 
                program and other programs in nontraditional venues 
                (such as shopping malls, schools, community centers, 
                county fairs, clinics, food banks, and job training 
                centers);
                    ``(D) developing systems to enable increased 
                participation in the provision of benefits under the 
                food stamp program through farmers' markets, roadside 
                stands, and other community-supported agriculture 
                programs, including wireless electronic benefit 
                transfer systems and other systems appropriate to open-
                air settings where farmers and other vendors sell 
                directly to consumers;
                    ``(E) allowing individuals to submit applications 
                for the food stamp program by means of the telephone or 
                the Internet, in particular individuals who live in 
                rural areas, elderly individuals, and individuals with 
                disabilities;
                    ``(F) encouraging consumption of fruit and 
                vegetables by developing a cost-effective system for 
                providing discounts for purchases of fruit and 
                vegetables made through use of electronic benefit 
                transfer cards;
                    ``(G) reducing barriers to participation by 
                individuals, with emphasis on working families, 
                eligible immigrants, elderly individuals, and 
                individuals with disabilities;
                    ``(H) developing training materials, guidebooks, 
                and other resources to improve access and outreach;
                    ``(I) conforming verification practices under the 
                food stamp program with verification practices under 
                other assistance programs; and
                    ``(J) such other activities as the Secretary 
                determines to be appropriate.
            ``(4) Selection.--
                    ``(A) In general.--The Secretary shall develop 
                criteria for selecting recipients of grants under this 
                subsection that include the consideration of--
                            ``(i) the demonstrated record of a State 
                        agency or other entity in serving low-income 
                        individuals;
                            ``(ii) the ability of a State agency or 
                        other entity to reach hard-to-serve 
                        populations;
                            ``(iii) the level of innovative proposals 
                        in the application of a State agency or other 
                        entity for a grant; and
                            ``(iv) the development of partnerships 
                        between public and private sector entities and 
                        linkages with the community.
                    ``(B) Preference.--In selecting recipients of 
                grants under paragraph (1), the Secretary shall provide 
                a preference to any applicant that consists of a 
                partnership between a State and a private entity, such 
                as--
                            ``(i) a food bank;
                            ``(ii) a community-based organization;
                            ``(iii) a public school;
                            ``(iv) a publicly-funded health clinic;
                            ``(v) a publicly-funded day care center; 
                        and
                            ``(vi) a nonprofit health or welfare 
                        agency.
                    ``(C) Geographical distribution of recipients.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall select, from all eligible 
                        applications received, at least 1 recipient to 
                        receive a grant under this subsection from--
                                    ``(I) each region of the Department 
                                of Agriculture administering the food 
                                stamp program; and
                                    ``(II) each additional rural or 
                                urban area that the Secretary 
                                determines to be appropriate.
                            ``(ii) Exception.--The Secretary shall not 
                        be required to select grant recipients under 
                        clause (i) to the extent that the Secretary 
                        determines that an insufficient number of 
                        eligible grant applications has been received.
            ``(5) Project evaluations.--
                    ``(A) In general.--The Secretary shall conduct 
                evaluations of projects funded by grants under this 
                subsection.
                    ``(B) Limitation.--Not more than 10 percent of 
                funds made available to carry out this subsection shall 
                be used for project evaluations described in 
                subparagraph (A).
            ``(6) Maintenance of effort.--A State agency or other 
        entity shall provide assurances to the Secretary that funds 
        provided to the State agency or other entity under this 
        subsection will be used only to supplement, not to supplant, 
        the amount of Federal, State, and local funds otherwise 
        expended to carry out access and outreach activities in the 
        State under this Act.
            ``(7) Funding.--There is authorized to be appropriated to 
        carry out this subsection $3,000,000 for the period of fiscal 
        years 2003 through 2005.''.

SEC. 439. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.

    (a) Consolidated Funding.--Section 19(a)(1) of the Food Stamp Act 
of 1977 (7 U.S.C. 2028(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``the Commonwealth of Puerto Rico'' 
                and inserting ``governmental entities specified in 
                subparagraph (D)'';
                    (B) in clause (ii), by striking ``and'' at the end; 
                and
                    (C) by striking clause (iii) and all that follows 
                and inserting the following:
            ``(iii) for fiscal year 2002, $1,356,000,000; and
            ``(iv) for each of fiscal years 2003 through 2006, the 
        amount provided in clause (iii), as adjusted by the percentage 
        by which the thrifty food plan has been adjusted under section 
        3(o)(4) between June 30, 2001, and June 30 of the immediately 
        preceding fiscal year;
to pay the expenditures for nutrition assistance programs for needy 
persons as described in subparagraphs (B) and (C).'';
            (2) in subparagraph (B)--
                    (A) by striking ``(B) The'' and inserting the 
                following:
                    ``(B) Maximum payments to commonwealth of puerto 
                rico.--
                            ``(i) In general.--The'';
                    (B) by inserting ``of Puerto Rico'' after 
                ``Commonwealth'' each place it appears; and
                    (C) by adding at the end the following:
                            ``(ii) Exception for expenditures for 
                        certain systems.--Notwithstanding subparagraph 
                        (A) and clause (i), the Commonwealth of Puerto 
                        Rico may spend not more than $6,000,000 of the 
                        amount required to be paid to the Commonwealth 
                        for fiscal year 2002 under subparagraph (A) 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 that nutrition 
                                assistance; and
                                    ``(III) operating systems to 
                                deliver benefits through electronic 
                                benefit transfers.''; and
            (3) by adding at the end the following:
                    ``(C) American samoa.--For each fiscal year, the 
                Secretary shall reserve 0.4 percent of the funds made 
                available under subparagraph (A) for payment to 
                American Samoa to pay 100 percent of the expenditures 
                for a nutrition assistance program extended under 
                section 601(c) of Public Law 96-597 (48 U.S.C. 
                1469d(c)).
                    ``(D) Governmental entity.--A governmental entity 
                specified in this subparagraph is--
                            ``(i) the Commonwealth of Puerto Rico; and
                            ``(ii) for fiscal year 2003 and each fiscal 
                        year thereafter, American Samoa.''.
    (b) Report to Congress and Increased Authorization.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall develop and submit to Congress a report that--
                    (A) describes the similarities and differences (in 
                terms of program administration, rules, benefits, and 
                requirements) between--
                            (i) the food stamp program under the Food 
                        Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
                        other than section 19 of that Act (7 U.S.C. 
                        2028); and
                            (ii) the program to provide assistance to 
                        Puerto Rico under section 19 of that Act (as in 
                        effect on the day before the date of enactment 
                        of this Act);
                    (B) specifies the costs and savings associated with 
                each similarity and difference; and
                    (C) states the recommendation of the Comptroller 
                General as to whether additional funding should be 
                provided to carry out section 19 of that Act.
            (2) Increased authorization.--Effective on the date of 
        submission to Congress of the report under paragraph (1), there 
        is authorized to be appropriated to carry out section 19 of the 
        Food Stamp Act of 1977 (7 U.S.C. 2028) (in addition to amounts 
        made available to carry out that section under law other than 
        this subsection) $50,000,000 for each fiscal year.
            (3) Limitation.--No amounts may be made available to carry 
        out paragraph (2) unless specifically provided by an 
        appropriation Act.
    (c) Conforming Amendment.--Section 24 of the Food Stamp Act of 1977 
(7 U.S.C. 2033) is repealed.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section take effect on October 1, 2002.
            (2) Exception for expenditures for certain systems.--The 
        amendments made by subsection (a)(2) take effect on the date of 
        enactment of this Act.

SEC. 440. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
amended--
            (1) in subsection (b)(2)(B), by striking ``2002'' and 
        inserting ``2006'';
            (2) in subsection (d)--
                    (A) in paragraph (3), by striking ``or'' at the 
                end; and
                    (B) 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 agriculture problems of the 
        communities, such as food policy councils and food planning 
        associations; or
            ``(5) meet, as soon as practicable through the provision of 
        grants of not to exceed $25,000 each, specific neighborhood, 
        local, or State food and agriculture needs, including needs 
        for--
                    ``(A) infrastructure improvement and development 
                (including the purchase of equipment necessary for the 
                production, handling, or marketing of locally produced 
                food);
                    ``(B) planning for long-term solutions; or
                    ``(C) the creation of innovative marketing 
                activities that mutually benefit farmers and low-income 
                consumers.''; and
            (3) in subsection (e)(1), by striking ``50'' and inserting 
        ``75''.

SEC. 441. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE 
              PROGRAM.

    (a) In General.--Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 
2036) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1997 through 2002'' and inserting 
                ``2002 through 2006''; and
                    (B) by striking ``$100,000,000'' and inserting 
                ``$110,000,000''; and
            (2) by adding at the end the following:
    ``(c) Use of Funds for Related Costs.--
            ``(1) In general.--For each of fiscal years 2002 through 
        2006, the Secretary shall use $10,000,000 of the funds made 
        available under subsection (a) to pay the direct and indirect 
        costs of States relating to the processing, storing, 
        transporting, and distributing to eligible recipient agencies 
        of--
                    ``(A) commodities purchased by the Secretary under 
                subsection (a); and
                    ``(B) commodities acquired from other sources, 
                including commodities acquired 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)).
            ``(2) Allocation of funds.--The amount required to be used 
        in accordance with paragraph (1) shall be allocated in 
        accordance with section 204(a) of the Emergency Food Assistance 
        Act of 1983 (7 U.S.C. 7508(a)).''.
    (b) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 442. USE OF APPROVED FOOD SAFETY TECHNOLOGY.

    (a) In General.--Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 
2036) (as amended by section 441) is amended by adding at the end the 
following:
    ``(d) 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 has been approved by the Secretary or 
        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 Agriculture and Consumer Protection Act 
                of 1973 (7 U.S.C. 612c note; Public Law 93-86);
                    ``(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.).''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 443. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY PROBLEMS.

    (a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 
is amended by adding at the end the following:

``SEC. 28. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY 
              PROBLEMS.

    ``(a) In General.--The Secretary shall offer to enter into a 
contract with a nongovernmental organization described in subsection 
(b) to coordinate with Federal agencies, States, political 
subdivisions, and nongovernmental organizations (referred to in this 
section as `targeted entities') to develop, and recommend to the 
targeted entities, innovative programs for addressing common community 
problems, including loss of farms, rural poverty, welfare dependency, 
hunger, the need for job training, juvenile crime prevention, and the 
need for self-sufficiency by individuals and communities.
    ``(b) Nongovernmental Organization.--The nongovernmental 
organization referred to in subsection (a)--
            ``(1) shall be selected on a competitive basis; and
            ``(2) as a condition of entering into the contract--
                    ``(A) shall be experienced in working with targeted 
                entities, and in organizing workshops that demonstrate 
                programs to targeted entities;
                    ``(B) shall be experienced in identifying programs 
                that effectively address problems described in 
                subsection (a) that can be implemented by other 
                targeted entities;
                    ``(C) shall agree--
                            ``(i) to contribute in-kind resources 
                        toward the establishment and maintenance of 
                        programs described in subsection (a); and
                            ``(ii) to provide to targeted entities, 
                        free of charge, information on the programs;
                    ``(D) shall be experienced in, and capable of, 
                receiving information from, and communicating with, 
                targeted entities throughout the United States; and
                    ``(E) shall be experienced in operating a national 
                information clearinghouse that addresses 1 or more of 
                the problems described in subsection (a).
    ``(c) Audits.--The Secretary shall establish auditing procedures 
and otherwise ensure the effective use of funds made available under 
this section.
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, out of any 
        funds in the Treasury not otherwise appropriated, the Secretary 
        of the Treasury shall transfer to the Secretary of Agriculture 
        to carry out this section $200,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on the date of enactment of this Act.

SEC. 444. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to Congress a report on--
            (1) difficulties relating to use of electronic benefit 
        transfer systems in issuance of food stamp benefits under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
            (2) the extent to which there exists fraud, and the types 
        of fraud that exist, in use of the electronic benefit transfer 
        systems; and
            (3) the efforts being made by the Secretary of Agriculture, 
        retailers, electronic benefit transfer system contractors, and 
        States to address the problems described in paragraphs (1) and 
        (2).

SEC. 445. VITAMIN AND MINERAL SUPPLEMENTS.

    (a) In General.--Section 3(g)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2012(g)(1)) is amended by striking ``or food product'' and 
inserting ``, food product, or dietary supplement that provides 
exclusively 1 or more vitamins or minerals''.
    (b) Impact Study.--
            (1) In general.--Not later than April 1, 2003, the 
        Secretary of Agriculture shall enter into a contract with a 
        scientific research organization to study and develop a report 
        on the technical issues, economic impacts, and health effects 
        associated with allowing individuals to use benefits under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to purchase 
        dietary supplements that provide exclusively 1 or more vitamins 
        or minerals (referred to in this subsection as ``vitamin-
        mineral supplements'').
            (2) Required elements.--At a minimum, the study shall 
        examine--
                    (A) the extent to which problems arise in the 
                purchase of vitamin-mineral supplements with electronic 
                benefit transfer cards;
                    (B) the extent of any difficulties in 
                distinguishing vitamin-mineral supplements from herbal 
                and botanical supplements for which food stamp benefits 
                may not be used;
                    (C) whether participants in the food stamp program 
                spend more on vitamin-mineral supplements than 
                nonparticipants;
                    (D) to what extent vitamin-mineral supplements are 
                substituted for other foods purchased with use of food 
                stamp benefits;
                    (E) the proportion of the average food stamp 
                allotment that is being used to purchase vitamin-
                mineral supplements; and
                    (F) the extent to which the quality of the diets of 
                participants in the food stamp program has changed as a 
                result of allowing participants to use food stamp 
                benefits to purchase vitamin-mineral supplements.
            (3) Report.--The report required under paragraph (1) shall 
        be submitted to the Secretary of Agriculture not later than 2 
        years after the date on which the contract referred to in that 
        paragraph is entered into.
            (4) Authorization of appropriations.--There is authorized 
        to be appropriated $3,000,000 to carry out this subsection.

                  Subtitle B--Miscellaneous Provisions

SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

    (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 ``2006''.
    (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 2006, 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 caseload slot shall be equal 
                to $50, 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 2006.--For each of 
                fiscal years 2004 through 2006, the amount of each 
                grant per caseload slot shall be equal to the amount of 
                the grant per 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 ``2006''; and
            (3) by striking subsection (l).
    (c) 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 ``2006''.
    (d) 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 ``2002'' and inserting ``2006'';
            (2) by striking ``administrative''; and
            (3) by inserting ``storage,'' after ``processing,''.

SEC. 452. PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.

    (a) 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 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) Applicability.--The amendments made by this subsection 
        shall apply to fiscal year 2004 and each fiscal year 
        thereafter.
    (b) Work Requirement for Legal Immigrants.--
            (1) Working immigrant families.--Section 
        402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
        inserting ``40 (or 16, in the case of the specified Federal 
        program described in paragraph (3)(B))''.
            (2) Conforming amendments.--
                    (A) Section 213A(a)(3)(A) of the Immigration and 
                Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
                striking ``40'' and inserting ``40 (or 16, in the case 
                of the specified Federal program described in section 
                402(a)(3)(B) of the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996 (8 U.S.C. 
                1612(a)(3)(B)))''.
                    (B) Section 421(b)(2)(A) of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996 (8 U.S.C. 1631(b)(2)(A)) is amended by striking 
                ``40'' and inserting ``40 (or 16, in the case of the 
                specified Federal program described in section 
                402(a)(3)(B))''.
    (c) Restoration of Benefits to Refugees and Asylees.--Section 
402(a)(2) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``programs described 
        in paragraph (3)'' and inserting ``program described in 
        paragraph (3)(A)''; and
            (2) by adding at the end the following:
                    ``(L) Food stamp exception for refugees and 
                asylees.--With respect to eligibility for benefits for 
                the specified Federal program described in paragraph 
                (3)(B), paragraph (1) shall not apply to an alien with 
                respect to which an action described in subparagraph 
                (A) was taken and was not revoked.''.
    (d) 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''.

SEC. 453. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

    (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. 454. 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. 455. 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. 456. REPORT ON CONVERSION OF WIC PROGRAM INTO AN INDIVIDUAL 
              ENTITLEMENT PROGRAM.

    (a) Findings.--Congress finds that the special supplemental 
nutrition program for woman, infants, and children established by 
section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) 
(referred to in this section as the `WIC program')--
            (1) safeguards the health of low-income pregnant, 
        postpartum, and breast-feeding women, infants, and children up 
        to 5 years of age who are at nutritional risk through the 
        delivery of individualized food packages, nutrition education, 
        and health referrals;
            (2) is associated with a variety of desirable outcomes, 
        including lower incidence of infant mortality, reduced 
        prevalence of very low birth weights, improved nutrient intake 
        among children, improved cognitive development among children, 
        and lower Medicaid costs for women who participate;
            (3) is recognized generally as a leading national health 
        and nutrition program;
            (4) as a discretionary program, can have inappropriate 
        funding because funding levels must be determined early in the 
        year by the President and the Committees on Appropriations of 
        the House of Representatives and the Senate (referred to in 
        this subsection as the ``Committees'');
            (5) can have funding shortfalls in some years because the 
        economy worsens between the time that funding levels are 
        established and the fiscal year is underway;
            (6) may have to deny service or reduce benefits to eligible 
        women, infants, and children in some States as a result of 
        these funding shortfalls;
            (7) may be provided with more funding than is required in 
        those years in which the economy improves between the time that 
        funding levels are established and the fiscal year is underway, 
        with the result that the President and the Committees will have 
        committed funds to the WIC program that could have been devoted 
        to other priorities; and
            (8) would not have this funding uncertainty if the WIC 
        program were an entitlement program that provided benefits to 
        every eligible woman, infant, and child seeking benefits.
    (b) Report.--Not later than December 31, 2002, the Secretary of 
Agriculture shall submit to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Agriculture, Nutrition and Forestry of the Senate a report that 
analyzes the conversion of the WIC program from a discretionary program 
into an individual entitlement program.
    (c) Contents.--The report shall--
            (1) analyze the conversion of the WIC program into an 
        individual entitlement program, rather than a capped 
        entitlement program for States;
            (2) analyze the conversion using at least 3 separate 
        scenarios, including--
                    (A) 1 scenario under which the costs to the Federal 
                Government approximate current projected funding 
                levels;
                    (B) 1 scenario under which the costs to the Federal 
                Government approximate current projected funding levels 
                plus 5 percent; and
                    (C) 1 scenario under which the costs to the Federal 
                Government approximate current projected funding levels 
                plus 7 percent; and
            (3) address--
                    (A) the levels at which, and manner by which, 
                States will be reimbursed for food package costs and 
                administrative costs;
                    (B) how current cost containment savings will be 
                preserved;
                    (C) how reimbursement rates will be adjusted 
                annually to reflect inflation or other factors 
                affecting food prices;
                    (D) how program benefits and services will be 
                affected by the conversion to an individual entitlement 
                program; and
                    (E) any other issues that arise from converting the 
                WIC program to an individual entitlement program, as 
                determined by the Secretary of Agriculture.
    (d) Consultation.--In preparing the report, the Secretary of 
Agriculture shall consult with--
            (1) the Committee on Education and the Workforce of the 
        House of Representatives;
            (2) the Committee on Agriculture, Nutrition and Forestry of 
        the Senate;
            (3) membership organizations representing State directors 
        and local agencies administering the WIC program;
            (4) Governors and other State officials;
            (5) research and policy organizations that have a history 
        of carrying out activities on issues affecting the WIC program; 
        and
            (6) advocacy organizations representing the needs of the 
        population that is eligible to participate in the WIC program.
    (e) Funding.--Notwithstanding any other provision of law, the 
Secretary shall carry out this section using funds made available for 
necessary expenses to carry out the WIC program.

SEC. 457. COMMODITY DONATIONS.

    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 needed 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.''.

SEC. 458. PURCHASES OF LOCALLY PRODUCED FOODS.

    (a) In General.--The Secretary of Agriculture shall--
            (1) encourage institutions participating in the national 
        school lunch program authorized under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.) 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;
            (2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in that 
        paragraph and post information concerning the policy on the 
        website maintained by the Secretary; and
            (3) in accordance with requirements established by the 
        Secretary, provide start-up 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 paragraph (1).
    (b) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $400,000 for each of fiscal years 2002 
        through 2006.
            (2) Limitation.--No amounts may be made available to carry 
        out this section unless specifically provided by an 
        appropriation Act.

SEC. 459. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall carry out 
and expand a seniors farmers' market nutrition program.
    (b) Program Purpose.--The purpose of the seniors farmers' market 
nutrition program is to provide to low-income seniors resources in the 
form of fresh, nutritious, unprepared, locally grown fruits, 
vegetables, and herbs from farmers' markets, roadside stands, and 
community-supported agriculture programs.
    (c) Regulations.--The Secretary of Agriculture may promulgate such 
regulations as the Secretary considers necessary to carry out the 
seniors farmers' market nutrition program under this section.
    (d) Funding.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2002, and each October 
        1 thereafter through October 1, 2005, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $15,000,000.
            (2) Receipt and acceptance.--The Secretary of Agriculture 
        shall be entitled to receive, shall accept, and shall use to 
        carry out this section the funds transferred under paragraph 
        (1), without further appropriation.
    (e) Authority.--The authority provided by this section is in 
addition to, and not in lieu of, the authority of the Secretary of 
Agriculture to carry out any similar program under the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714 et seq.).

SEC. 460. FARMERS' MARKET NUTRITION PROGRAM.

    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.--
                                    ``(I) In general.--Not later than 
                                30 days after the date of enactment of 
                                the Agriculture, Conservation, and 
                                Rural Enhancement Act of 2001, out of 
                                any funds in the Treasury not otherwise 
                                appropriated, the Secretary of the 
                                Treasury shall transfer to the 
                                Secretary to carry out this subsection 
                                $15,000,000.
                                    ``(II) Receipt and acceptance.--The 
                                Secretary shall be entitled to receive, 
                                shall accept, and shall use to carry 
                                out this subsection the funds 
                                transferred under subclause (I), 
                                without further appropriation.''.

SEC. 461. FRUIT AND VEGETABLE PILOT PROGRAM.

    (a) In General.--In the school year beginning July 2002, the 
Secretary of Agriculture shall use funds made available under section 
32 of the Act of August 24, 1935 (7 U.S.C. 612c), to conduct 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 fruits and vegetables throughout the school 
day in--
            (1) a cafeteria;
            (2) a student lounge; or
            (3) another designated room of the school.
    (b) 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.
    (c) Evaluation of Pilot Program.--
            (1) In general.--Not later than 1 year after the 
        implementation of the pilot program required by subsection (a), 
        the Secretary (acting through the Economic Research Service) 
        shall submit to the Committee on Education and the Workforce of 
        the House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate an evaluation of the 
        results of the pilot program to determine--
                    (A) whether students took advantage of the pilot 
                program;
                    (B) whether interest in the pilot program increased 
                or lessened over time;
                    (C) what effect, if any, the pilot program had on 
                vending machine sales; and
                    (D) what effect, if any, the pilot program had on 
                the sale of meals served under the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.) and the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.).
            (2) Funding.--The Secretary shall use $200,000 of the funds 
        described in subsection (a) to carry out the evaluation under 
        this subsection.

SEC. 462. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

    (a) Short Title.--This section may be cited as the ``Congressional 
Hunger Fellows Act of 2002''.
    (b) Findings.--Congress finds that--
            (1) there are--
                    (A) a critical need for compassionate individuals 
                who are committed to assisting people who suffer from 
                hunger; and
                    (B) a need for those individuals to initiate and 
                administer solutions to the hunger problem;
            (2) Bill Emerson, the distinguished late Representative 
        from the 8th District of Missouri, demonstrated--
                    (A) his commitment to solving the problem of hunger 
                in a bipartisan manner;
                    (B) his commitment to public service; and
                    (C) his great affection for the institution and the 
                ideals of Congress;
            (3) George T. (Mickey) Leland, the distinguished late 
        Representative from the 18th District of Texas, demonstrated--
                    (A) his compassion for individuals in need;
                    (B) his high regard for public service; and
                    (C) his lively exercise of political talents;
            (4) 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; and
            (5) since those 2 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, it is especially appropriate to 
        honor the memory of Mr. Emerson and Mr. Leland by establishing 
        a fellowship program to develop and train the future leaders of 
        the United States to pursue careers in humanitarian service.
    (c) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Agriculture and the Committee 
                on International Relations of the House of 
                Representatives; and
                    (B) the Committee on Agriculture, Nutrition, and 
                Forestry and the Committee on Foreign Relations of the 
                Senate.
            (2) Board.--The term ``Board'' means the Board of Trustees 
        of the Program.
            (3) Fund.--The term ``Fund'' means the Congressional Hunger 
        Fellows Trust Fund established by subsection (g).
            (4) Program.--The term ``Program'' means the Congressional 
        Hunger Fellows Program established by subsection (d).
    (d) Establishment.--There is established as an independent entity 
of the legislative branch of the United States Government an entity to 
be known as the ``Congressional Hunger Fellows Program''.
    (e) 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.--
                    (A) Appointment.--
                            (i) In general.--The Board shall be 
                        composed of 6 voting members appointed under 
                        clause (ii) and 1 nonvoting ex officio member 
                        designated by clause (iii).
                            (ii) Voting members.--The voting members of 
                        the Board shall be the following:
                                    (I) 2 members appointed by the 
                                Speaker of the House of 
                                Representatives.
                                    (II) 1 member appointed by the 
                                minority leader of the House of 
                                Representatives.
                                    (III) 2 members appointed by the 
                                majority leader of the Senate.
                                    (IV) 1 member appointed by the 
                                minority leader of the Senate.
                            (iii) Nonvoting member.--The Executive 
                        Director of the Program shall serve as a 
                        nonvoting ex officio member of the Board.
                    (B) Terms.--
                            (i) In general.--Each member of the Board 
                        shall serve for a term of 4 years.
                            (ii) Incomplete term.--If a member of the 
                        Board does not serve the full term of 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.
                    (C) Vacancy.--A vacancy on the Board--
                            (i) shall not affect the powers of the 
                        Board; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
                    (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), a 
                        member of the Board shall not receive 
                        compensation for service on the Board.
                            (ii) Travel.--A member of the Board 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 Board.
            (3) Duties.--
                    (A) Bylaws.--
                            (i) Establishment.--The Board shall 
                        establish such bylaws and other regulations as 
                        are appropriate to enable the Board to carry 
                        out this section, including the duties 
                        described in this paragraph.
                            (ii) Contents.--Bylaws and other 
                        regulations established under clause (i) shall 
                        include provisions--
                                    (I) for appropriate fiscal control, 
                                accountability for funds, and operating 
                                principles;
                                    (II) to prevent any conflict of 
                                interest, or the appearance of any 
                                conflict of interest, in--
                                            (aa) the procurement and 
                                        employment actions taken by the 
                                        Board or by any officer or 
                                        employee of the Board; and
                                            (bb) 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) Submission to congress.--Not later 
                        than 90 days after the date of the first 
                        meeting of the Board, the Chairperson of the 
                        Board shall submit to the appropriate 
                        congressional committees a copy of the bylaws 
                        established by the Board.
                    (B) Budget.--For each fiscal year in which the 
                Program is in operation--
                            (i) the Board shall determine a budget for 
                        the Program for the fiscal year; and
                            (ii) all spending by the Program shall be 
                        in accordance with the 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 
                shall determine--
                            (i) the priority of the programs to be 
                        carried out under this section; and
                            (ii) the amount of funds to be allocated 
                        for the fellowships established under 
                        subsection (f)(3)(A).
    (f) 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;
                    (B) to recognize the needs of people who are hungry 
                and poor;
                    (C) to provide assistance and compassion for people 
                in need;
                    (D) to increase awareness of the importance of 
                public service; and
                    (E) to provide training and development 
                opportunities for the leaders through placement in 
                programs operated by appropriate entities.
            (2) Authority.--The Program may develop fellowships to 
        carry out the purposes of the Program, 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.--
                                    (I) Bill emerson hunger 
                                fellowship.--The Bill Emerson Hunger 
                                Fellowship shall address hunger and 
                                other humanitarian needs in the United 
                                States.
                                    (II) Mickey leland hunger 
                                fellowship.--The Mickey Leland Hunger 
                                Fellowship shall address international 
                                hunger and other humanitarian needs.
                            (iii) Work plan.--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 the 
                        specific duties and responsibilities relating 
                        to the objectives.
                    (C) Period of fellowship.--
                            (i) Emerson fellowship.--A Bill Emerson 
                        Hunger Fellowship awarded under this paragraph 
                        shall be for a period of not more than 1 year.
                            (ii) Leland fellowship.--A Mickey Leland 
                        Hunger Fellowship awarded under this paragraph 
                        shall be for a period of not more than 2 years, 
                        of which not less than 1 year shall be 
                        dedicated to fulfilling the requirement of 
                        subparagraph (B)(i)(I).
                    (D) Selection of fellows.--
                            (i) In general.--A fellowship shall be 
                        awarded through 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 
                                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 the 
                                Board determines to be appropriate.
                            (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 Bill Emerson Hunger 
                                Fellowship shall be known as an 
                                ``Emerson Fellow''.
                                    (II) Leland fellow.--An individual 
                                awarded a Mickey Leland Hunger 
                                Fellowship shall be known as a ``Leland 
                                Fellow''.
            (4) Evaluations.--
                    (A) In general.--The Program shall conduct periodic 
                evaluations of the Bill Emerson and Mickey Leland 
                Hunger Fellowships.
                    (B) Required elements.--Each evaluation shall 
                include--
                            (i) an assessment of the successful 
                        completion of the work plan of each fellow;
                            (ii) an assessment of the impact of the 
                        fellowship on the fellows;
                            (iii) an assessment of the accomplishment 
                        of the purposes of the Program; and
                            (iv) an assessment of the impact of each 
                        fellow on the community.
    (g) Trust Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund to be known as the ``Congressional 
        Hunger Fellows Trust Fund'', consisting of--
                    (A) amounts appropriated to the Fund under 
                subsection (k);
                    (B) any amounts earned on investment of amounts in 
                the Fund under paragraph (2); and
                    (C) amounts received under subsection (i)(3)(A).
            (2) Investment of amounts.--
                    (A) In general.--
                            (i) Authority to invest.--The Secretary of 
                        the Treasury shall invest such portion of the 
                        Fund as is not, in the judgment of the 
                        Secretary of the Treasury, required to meet 
                        current withdrawals.
                            (ii) Types of investments.--Each investment 
                        may be made only 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 of the Treasury in 
                        consultation with the Board, has a maturity 
                        suitable for the Fund.
                    (B) Acquisition of obligations.--For the purpose of 
                investments under subparagraph (A), obligations may be 
                acquired--
                            (i) on original issue at the issue price; 
                        or
                            (ii) by purchase of outstanding obligations 
                        at the market price.
                    (C) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (D) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
            (3) Transfers of amounts.--
                    (A) In general.--The amounts required to be 
                transferred to the Fund under this subsection shall be 
                transferred at least monthly from the general fund of 
                the Treasury to the Fund on the basis of estimates made 
                by the Secretary of the Treasury.
                    (B) Adjustments.--Proper adjustment shall be made 
                in amounts subsequently transferred to the extent prior 
                estimates were in excess of or less than the amounts 
                required to be transferred.
    (h) Expenditures; Audits.--
            (1) In general.--The Secretary of the Treasury shall 
        transfer to the Program from the amounts described in 
        subsections (g)(2)(D) and (i)(3)(A) such sums as the Board 
        determines to be necessary to enable the Program to carry out 
        this section.
            (2) Limitation.--The Secretary may not transfer to the 
        Program the amounts appropriated to the Fund under subsection 
        (k).
            (3) Use of funds.--Funds transferred to the Program under 
        paragraph (1) shall be used--
                    (A) to provide a living allowance for the fellows;
                    (B) to defray the costs of transportation of the 
                fellows to the fellowship placement sites;
                    (C) to defray the costs of appropriate insurance of 
                the fellows, the Program, and the Board;
                    (D) to defray the costs of preservice and 
                midservice education and training of fellows;
                    (E) to pay staff described in subsection (i);
                    (F) to make end-of-service awards under subsection 
                (f)(3)(D)(iii)(II); and
                    (G) for such other purposes as the Board determines 
                to be appropriate to carry out the Program.
            (4) Audit by comptroller general.--
                    (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, reports, files, and other papers, things, or 
                property belonging to or in use by the Program and 
                necessary to facilitate the audit.
                    (C) Report to congress.--The Comptroller General 
                shall submit to the appropriate congressional 
                committees a copy of the results of each audit under 
                subparagraph (A).
    (i) Staff; Powers of Program.--
            (1) Executive director.--
                    (A) In general.--The Board shall appoint an 
                Executive Director of the Program who shall--
                            (i) administer the Program; and
                            (ii) carry out such other functions 
                        consistent with 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 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 such additional personnel as the Executive 
                Director considers necessary to carry out this section.
                    (B) Compensation.--An individual appointed under 
                subparagraph (A) shall be paid at a rate not to exceed 
                the rate payable for level GS-15 of the General 
                Schedule.
            (3) Powers.--
                    (A) Gifts.--
                            (i) In general.--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.
                            (ii) Use of gifts.--Gifts, bequests, or 
                        devises of money and proceeds from sales of 
                        other property received as gifts, bequests, or 
                        devises shall--
                                    (I) be deposited in the Fund; and
                                    (II) be available for disbursement 
                                on order of the Board.
                    (B) Procurement of temporary and intermittent 
                services.--To carry out this section, the Program 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 payable for level GS-15 of the General Schedule.
                    (C) Contract authority.--To carry out this section, 
                the Program may, with the approval of a majority of the 
                members of the Board, contract 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.--
                            (i) In general.--Subject to clause (ii), 
                        the Program may make such other expenditures as 
                        the Program considers necessary to carry out 
                        this section.
                            (ii) Prohibition.--The Program may not 
                        expend funds to develop new or expanded 
                        projects at which fellows may be placed.
    (j) 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 preceding fiscal 
year that includes--
            (1) an analysis of the evaluations conducted under 
        subsection (f)(4) during the fiscal year; and
            (2) a statement of--
                    (A) the total amount of funds attributable to gifts 
                received by the Program in the fiscal year under 
                subsection (i)(3)(A); and
                    (B) the total amount of funds described in 
                subparagraph (A) that were expended to carry out the 
                Program in the fiscal year.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $18,000,000.
    (l) Effective Date.--This section takes effect on October 1, 2002.

SEC. 463. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    (a) Establishment.--The Secretary of Agriculture may establish, in 
not more than 15 States, a pilot program to increase the domestic 
consumption of fresh fruits and vegetables.
    (b) Purpose.--The purpose of the program shall be to provide funds 
to States to assist eligible public and private sector entities with 
cost-share assistance to carry out demonstration projects--
            (1) to increase fruit and vegetable consumption; and
            (2) to convey related health promotion messages.
    (c) Priority.--To the maximum extent practicable, the Secretary 
shall--
            (1) establish the program in States in which the production 
        of fruits or vegetables is a significant industry, as 
        determined by the Secretary; and
            (2) base the program on strategic initiatives, including--
                    (A) health promotion and education interventions;
                    (B) public service and paid advertising or 
                marketing activities;
                    (C) health promotion campaigns relating to locally 
                grown fruits and vegetables; and
                    (D) social marketing campaigns.
    (d) Participant Eligibility.--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 by the State 
under the program--
            (1) experience in carrying out similar projects or 
        activities;
            (2) innovation; and
            (3) the ability of the State--
                    (A) to conduct marketing campaigns for, promote, 
                and track increases in levels of, produce consumption; 
                and
                    (B) to optimize the availability of produce through 
                distribution of produce.
    (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) Use of Funds.--Funds made available to carry out this section 
shall not be made available to any foreign for-profit corporation.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2002 through 2006.

SEC. 464. EFFECTIVE DATE.

    Except as otherwise provided in this title, the amendments made by 
this title take effect on September 1, 2002, except that a State agency 
may, at the option of the State agency, elect not to implement any or 
all of the amendments until October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 501. 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. 502. 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, during a fiscal year, a short-
                term, temporary bridge loan made by a commercial or 
                cooperative lender to a beginning 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 
                        beginning 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. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended by striking subsection (a) and inserting the 
following:
    ``(a) In General.--The Secretary shall not make or insure a loan 
under section 302, 303, 304, 310D, or 310E that would cause the unpaid 
indebtedness under those sections of any 1 borrower to exceed the 
lesser of--
            ``(1) the value of the farm or other security; or
            ``(2)(A) in the case of a loan made by the Secretary--
                    ``(i) to a beginning farmer or rancher, $250,000, 
                as adjusted (beginning with fiscal year 2003) by the 
                inflation percentage applicable to the fiscal year in 
                which the loan is made; or
                    ``(ii) to a borrower other than a beginning farmer 
                or rancher, $200,000; or
            ``(B) in the case of a loan guaranteed by the Secretary, 
        $700,000, as--
                    ``(i) adjusted (beginning with fiscal year 2000) by 
                the inflation percentage applicable to the fiscal year 
                in which the loan is guaranteed; and
                    ``(ii) reduced by the amount of any unpaid 
                indebtedness of the borrower on loans under subtitle B 
                that are guaranteed by the Secretary.''.

SEC. 504. JOINT FINANCING ARRANGEMENTS.

    Section 307(a)(3)(D) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)(3)(D)) is amended--
            (1) by striking ``If'' and inserting the following:
                            ``(i) In general.--Subject to clause (ii), 
                        if''; and
            (2) by adding at the end the following:
                            ``(ii) Beginning farmers and ranchers.--The 
                        interest rate charged a beginning farmer or 
                        rancher for a loan described in clause (i) 
                        shall be 50 basis points less than the rate 
                        charged farmers and ranchers that are not 
                        beginning farmers or ranchers.''.

SEC. 505. GUARANTEE PERCENTAGE FOR BEGINNING FARMERS AND RANCHERS.

    Section 309(h)(6) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1929(h)(6)) is amended by striking ``guaranteed up'' and 
all that follows through ``more than'' and inserting ``guaranteed at 95 
percent.--The Secretary shall guarantee''.

SEC. 506. 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. 507. 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 ``20 years''; and
            (2) in subsection (c)(3)(B), by striking ``10-year'' and 
        inserting ``20-year''.

SEC. 508. 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.--Not later than October 1, 2002, the Secretary 
shall carry out a pilot program in not fewer than 10 geographically 
dispersed States, as determined by the Secretary, to guarantee up to 5 
loans per State in each of fiscal years 2003 through 2006 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.--The Secretary shall 
commence the pilot program on making a determination that 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. 511. DIRECT LOANS.

    Section 311(c)(1)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941(c)(1)(A)) is amended by striking ``who has not'' and 
all that follows through ``5 years''.

SEC. 512. AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL FARM OPERATIONS; 
              WAIVER OF LIMITATIONS FOR TRIBAL OPERATIONS AND OTHER 
              OPERATIONS.

    (a) Amount of Guarantee of Loans for Tribal Operations.--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 tribal operations.--
        In the case of an operating loan made to a farmer or rancher 
        who is a member of an Indian tribe and whose farm or ranch is 
        within an Indian reservation (as defined in section 
        335(e)(1)(A)(ii)), the Secretary shall guarantee 95 percent of 
        the loan.''.
    (b) Waiver of Limitations.--Section 311(c) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1941(c)) is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (2) by adding at the end the following:
            ``(4) Waivers.--
                    ``(A) Tribal farm and ranch operations.--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 who is a member of an 
                Indian tribe and whose farm or ranch is within an 
                Indian reservation (as defined in section 
                335(e)(1)(A)(ii)) 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)).''.

                 Subtitle C--Administrative Provisions

SEC. 521. ELIGIBILITY OF 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), 
1961(a)) are amended by striking ``and joint operations'' each place it 
appears and inserting ``joint operations, 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, or limited liability companies''.

SEC. 522. DEBT SETTLEMENT.

    Section 331(b)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981(b)(4)) is amended by striking ``carried out--'' and 
all that follows through ``(B) after'' and inserting ``carried out 
after''.

SEC. 523. 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. 524. 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. 525. ANNUAL REVIEW OF BORROWERS.

    Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) is amended by striking paragraph (2) and inserting the 
following:
            ``(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. 526. SIMPLIFIED LOAN APPLICATIONS.

    Section 333A(g)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a(g)(1)) is amended by striking ``of loans the 
principal amount of which is $50,000 or less'' and inserting ``of 
farmer program loans the principal amount of which is $100,000 or 
less''.

SEC. 527. 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'';
            (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).''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)''; and
                    (B) by adding at the end the following:
                    ``(C) Offer to sell or grant for farmland 
                preservation.--For the purpose of farmland 
                preservation, the Secretary shall--
                            ``(i) in consultation with the State 
                        Conservationist of each State in which 
                        inventory property is located, identify each 
                        parcel of inventory property in the State that 
                        should be preserved for agricultural use; and
                            ``(ii) offer to sell or grant an easement, 
                        restriction, development right, or similar 
                        legal right to each parcel identified under 
                        clause (i) to a State, a political subdivision 
                        of a State, or a private nonprofit organization 
                        separately from the underlying fee or other 
                        rights to the property owned by the United 
                        States.''.

SEC. 528. 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) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)(12)) is amended by striking 
subparagraph (B) and inserting the following:
                    ``(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. 529. LOAN AUTHORIZATION LEVELS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(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 
        $3,750,000,000 for each of fiscal years 2002 through 2006, of 
        which, for each fiscal year--
                    ``(A) $750,000,000 shall be for direct loans, of 
                which--
                            ``(i) $200,000,000 shall be for farm 
                        ownership loans under subtitle A; and
                            ``(ii) $550,000,000 shall be for operating 
                        loans under subtitle B; and
                    ``(B) $3,000,000,000 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) $2,000,000,000 shall be for 
                        guarantees of operating loans under subtitle 
                        B.''; and
                    (B) in paragraph (2)(A)(ii), by striking ``farmers 
                and ranchers'' and all that follows and inserting 
                ``farmers and ranchers 35 percent for each of fiscal 
                years 2002 through 2006.''; and
            (2) in subsection (c), by striking the last sentence.

SEC. 530. 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);
            (2) by striking subsection (c) and inserting the following:
    ``(c) Amount of Interest Rate Reduction.--
            ``(1) In general.--In return for a contract entered into by 
        a lender under subsection (b) for the reduction of the interest 
        rate paid on a loan, the Secretary shall make payments to the 
        lender in an amount equal to not more than 100 percent of the 
        cost of reducing the annual rate of interest payable on the 
        loan, except that such payments shall not exceed the cost of 
        reducing the rate by more than--
                    ``(A) in the case of a borrower other than a 
                beginning farmer or rancher, 3 percent; and
                    ``(B) in the case of a beginning farmer or rancher, 
                4 percent.
            ``(2) Beginning farmers and ranchers.--The percentage 
        reduction of the interest rate for which payments are 
        authorized to be made for a beginning farmer or rancher under 
        paragraph (1) shall be 1 percent more than the percentage 
        reduction for farmers and ranchers that are not beginning 
        farmers or ranchers.''; and
            (3) 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 25 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 April 1 of the 
                        fiscal year.''.

SEC. 531. OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY RECAPTURE 
              AMOUNT FOR SHARED APPRECIATION AGREEMENTS.

    (a) In General.--Section 353(e)(7) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2001(e)(7)) is amended--
            (1) in subparagraph (C), by redesignating clauses (i) and 
        (ii) as subclauses (I) and (II), respectively, and adjusting 
        the margins appropriately;
            (2) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and adjusting the 
        margins appropriately;
            (3) by striking the paragraph heading and inserting the 
        following:
            ``(7) Options for satisfaction of obligation to pay 
        recapture amount.--
                    ``(A) In general.--As an alternative to repaying 
                the full recapture amount at the end of the term of the 
                shared appreciation agreement (as determined by the 
                Secretary in accordance with this subsection), a 
                borrower may satisfy the obligation to pay the amount 
                of recapture by--
                            ``(i) financing the recapture payment in 
                        accordance with subparagraph (B); or
                            ``(ii) granting the Secretary an 
                        agricultural use protection and conservation 
                        easement on the property subject to the shared 
                        appreciation agreement in accordance with 
                        subparagraph (C).
                    ``(B) Financing of recapture payment.--''; and
            (4) by adding at the end the following:
                    ``(C) Agricultural use protection and conservation 
                easement.--
                            ``(i) In general.--Subject to clause (iii), 
                        the Secretary shall accept an agricultural use 
                        protection and conservation easement from the 
                        borrower for all of the real security property 
                        subject to the shared appreciation agreement in 
                        lieu of payment of the recapture amount.
                            ``(ii) Term.--The term of an easement 
                        accepted by the Secretary under this 
                        subparagraph shall be 25 years.
                            ``(iii) Conditions.--The easement shall 
                        require that the property subject to the 
                        easement shall continue to be used or conserved 
                        for agricultural and conservation uses in 
                        accordance with sound farming and conservation 
                        practices, as determined by the Secretary.
                            ``(iv) Replacement of method of satisfying 
                        obligation.--A borrower that has begun 
                        financing of a recapture payment under 
                        subparagraph (B) may replace that financing 
                        with an agricultural use protection and 
                        conservation easement under this 
                        subparagraph.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to a shared appreciation agreement entered into under section 
353(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2001(e)) that--
            (1) matures on or after the date of enactment of this Act; 
        or
            (2) matured before the date of enactment of this Act, if--
                    (A) the recapture amount was reamortized under 
                section 353(e)(7) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2001(e)(7)) (as in effect on 
                the day before the date of enactment of this Act); or
                    (B)(i) the recapture amount had not been paid 
                before the date of enactment of this Act because of 
                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.

SEC. 532. 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. 533. 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''.

                        Subtitle D--Farm Credit

SEC. 541. 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. 542. 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. 543. 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) Effective Date.--The amendments made by subsection (a) take 
effect on the date on which Farm Credit System Insurance Corporation 
premiums are due from insured Farm Credit System banks under section 
5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) for calendar 
year 2001.

SEC. 544. BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL MORTGAGE 
              CORPORATION.

    Section 8.2(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
2(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``15'' and inserting ``17'';
                    (B) in subparagraph (A), by striking ``common 
                stock'' and all that follows and inserting ``Class A 
                voting common stock;'';
                    (C) in subparagraph (B), by striking ``common 
                stock'' and all that follows and inserting ``Class B 
                voting common stock;'';
                    (D) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (E) by inserting after subparagraph (B) the 
                following:
                    ``(C) 2 members shall be elected by holders of 
                Class A voting common stock and Class B voting common 
                stock, 1 of whom shall be the chief executive officer 
                of the Corporation and 1 of whom shall be another 
                executive officer of the Corporation; and'';
            (2) in paragraph (3), by striking ``(2)(C)'' and inserting 
        ``(2)(D)'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``(A) or (B)'' 
                and inserting ``(A), (B), or (C)''; and
                    (B) in subparagraph (B), by striking ``(2)(C)'' and 
                inserting ``(2)(D)'';
            (4) in paragraph (5)(A)--
                    (A) by inserting ``executive officers of the 
                Corporation or'' after ``from among persons who are''; 
                and
                    (B) by striking ``such a representative'' and 
                inserting ``such an executive officer or 
                representative'';
            (5) in paragraph (6)(B), by striking ``(A) and (B)'' and 
        inserting ``(A), (B), and (C)'';
            (6) in paragraph (7), by striking ``8 members'' and 
        inserting ``Nine members'';
            (7) in paragraph (8)--
                    (A) in the paragraph heading, by inserting ``or 
                executive officers of the corporation'' after 
                ``employees''; and
                    (B) by inserting ``or executive officers of the 
                Corporation'' after ``United States''; and
            (8) by striking paragraph (9) and inserting the following:
            ``(9) Chairperson.--
                    ``(A) Election.--The permanent board shall annually 
                elect a chairperson from among the members of the 
                permanent board.
                    ``(B) Term.--The term of the chairperson shall 
                coincide with the term served by elected members of the 
                permanent board under paragraph (6)(B).''.

                     Subtitle E--General Provisions

SEC. 551. INAPPLICABILITY OF FINALITY RULE.

    Section 281(a)(1) of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
            (1) by striking ``This subsection'' and inserting the 
        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection''; and
            (2) by adding at the end the following:
                    ``(B) Agricultural credit decisions.--This 
                subsection shall not apply with respect to an 
                agricultural credit decision made by such a State, 
                county, or area committee, or employee of such a 
                committee, under the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1921 et seq.).''.

SEC. 552. 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,''.
    (d) Section 360(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006b(a)) is amended by striking ``established pursuant 
to section 332''.

SEC. 553. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b) and section 
543(b), this title and the amendments made by this title take effect on 
October 1, 2001.
    (b) Board of Directors of the Federal Agricultural Mortgage 
Corporation.--The amendments made by section 544 take effect on the 
date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

SEC. 601. NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY FUND.

    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--National Rural Cooperative and Business Equity Fund

``SEC. 383A. SHORT TITLE.

    ``This subtitle may be cited as the `National Rural Cooperative and 
Business Equity Fund Act'.

``SEC. 383B. PURPOSE.

    ``The purpose of this subtitle is to revitalize rural communities 
and enhance farm income through sustainable rural business development 
by providing Federal funds and credit enhancements to a private equity 
fund in order to encourage investments by institutional and 
noninstitutional investors for the benefit of rural America.

``SEC. 383C. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authorized private investor.--The term `authorized 
        private investor' means an individual, legal entity, or 
        affiliate or subsidiary of an individual or legal entity that--
                    ``(A) is eligible to receive a loan guarantee under 
                this title;
                    ``(B) is eligible to receive a loan guarantee under 
                the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
                seq.);
                    ``(C) is created under the National Consumer 
                Cooperative Bank Act (12 U.S.C. 3011 et seq.);
                    ``(D) is an insured depository institution subject 
                to section 383E(b)(2);
                    ``(E) is a Farm Credit System institution described 
                in section 1.2(a) of the Farm Credit Act of 1971 (12 
                U.S.C. 2002(a)); or
                    ``(F) is determined by the Board to be an 
                appropriate investor in the Fund.
            ``(2) Board.--The term `Board' means the board of directors 
        of the Fund established under section 383G.
            ``(3) Fund.--The term `Fund' means the National Rural 
        Cooperative and Business Equity Fund established under section 
        383D.
            ``(4) Group of similar authorized private investors.--The 
        term `group of similar investors' means any 1 of the following:
                    ``(A) Insured depository institutions with total 
                assets of more than $250,000,000.
                    ``(B) Insured depository institutions with total 
                assets equal to or less than $250,000,000.
                    ``(C) Farm Credit System institutions described in 
                section 1.2(a) of the Farm Credit Act of 1971 (12 
                U.S.C. 2002(a)).
                    ``(D) Cooperative financial institutions (other 
                than Farm Credit System institutions).
                    ``(E) Private investors, other than those described 
                in subparagraphs (A) through (D), authorized by the 
                Secretary.
                    ``(F) Other nonprofit organizations, including 
                credit unions.
            ``(5) Insured depository institution.--The term `insured 
        depository institution' means any bank or savings association 
        the deposits of which are insured under the Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.).
            ``(6) Rural business.--The term `rural business' means a 
        rural cooperative, a value-added agricultural enterprise, or 
        any other business located or locating in a rural area.

``SEC. 383D. ESTABLISHMENT.

    ``(a) Authority.--
            ``(1) In general.--On certification by the Secretary that, 
        to the maximum extent practicable, the parties proposing to 
        establish a fund provide a broad representation of all of the 
        groups of similar authorized private investors described in 
        subparagraphs (A) through (F) of section 383C(4), the parties 
        may establish a non-Federal entity under State law to purchase 
        shares of, and manage a fund to be known as the `National Rural 
        Cooperative and Business Equity Fund', to generate and provide 
        equity capital to rural businesses.
            ``(2) Ownership.--
                    ``(A) In general.--To the maximum extent 
                practicable, equity ownership of the Fund shall be 
                distributed among authorized private investors 
                representing all of the groups of similar authorized 
                private investors described in subparagraphs (A) 
                through (F) of section 383C(4).
                    ``(B) Exclusion of groups.--No group of authorized 
                private investors shall be excluded from equity 
                ownership of the Fund during any period during which 
                the Fund is in existence if an authorized private 
                investor representative of the group is able and 
                willing to invest in the Fund.
    ``(b) Purposes.--The purposes of the Fund shall be--
            ``(1) to strengthen the economy of rural areas;
            ``(2) to further sustainable rural business development;
            ``(3) to encourage--
                    ``(A) start-up rural businesses;
                    ``(B) increased opportunities for small and 
                minority-owned rural businesses; and
                    ``(C) the formation of new rural businesses;
            ``(4) to enhance rural employment opportunities;
            ``(5) to provide equity capital to rural businesses, many 
        of which have difficulty obtaining equity capital; and
            ``(6) to leverage non-Federal funds for rural businesses.
    ``(c) Articles of Incorporation and Bylaws.--The articles of 
incorporation and bylaws of the Fund shall set forth purposes of the 
Fund that are consistent with the purposes described in subsection (b).

``SEC. 383E. INVESTMENT IN THE FUND.

    ``(a) In General.--Of the funds made available under section 383H, 
the Secretary shall--
            ``(1) subject to subsection (b)(1), make available to the 
        Fund $150,000,000;
            ``(2) subject to subsection (c), guarantee 50 percent of 
        each investment made by an authorized private investor in the 
        Fund; and
            ``(3) subject to subsection (d), guarantee the repayment of 
        principal of, and accrued interest on, debentures issued by the 
        Fund to authorized private investors.
    ``(b) Private Investment.--
            ``(1) Matching requirement.--Under subsection (a)(1), the 
        Secretary shall make an amount available to the Fund only after 
        an equal amount has been invested in the Fund by authorized 
        private investors in accordance with this subtitle and the 
        terms and conditions set forth in the bylaws of the Fund.
            ``(2) Insured depository institutions.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C)--
                            ``(i) an insured depository institution may 
                        be an authorized private investor in the Fund; 
                        and
                            ``(ii) an investment in the Fund may be 
                        considered to be part of the record of an 
                        institution in meeting the credit needs of the 
                        community in which the institution is located 
                        under any applicable Federal law.
                    ``(B) Investment limit.--The total investment in 
                the Fund of an insured depository institution shall not 
                exceed 5 percent of the capital and surplus of the 
                institution.
                    ``(C) Regulatory authority.--An appropriate Federal 
                banking agency may, by regulation or order, impose on 
                any insured depository institution investing in the 
                Fund, any safeguard, limitation, or condition 
                (including an investment limit that is lower than the 
                investment limit under subparagraph (B)) that the 
                Federal banking agency considers to be appropriate to 
                ensure that the institution operates--
                            ``(i) in a financially sound manner; and
                            ``(ii) in compliance with all applicable 
                        law.
    ``(c) Guarantee of Private Investments.--
            ``(1) In general.--The Secretary shall guarantee, under 
        terms and conditions determined by the Secretary, 50 percent of 
        any loss of the principal of an investment made in the Fund by 
        an authorized private investor.
            ``(2) Maximum total guarantee.--The aggregate potential 
        liability of the Secretary with respect to all guarantees under 
        paragraph (1) shall not apply to more than $300,000,000 in 
        private investments in the Fund.
            ``(3) Redemption of guarantee.--
                    ``(A) Date.--An authorized private investor in the 
                Fund may redeem a guarantee under paragraph (1), with 
                respect to the total investments in the Fund and the 
                total losses of the authorized private investor as of 
                the date of redemption--
                            ``(i) on the date that is 5 years after the 
                        date of the initial investment by the 
                        authorized private investor; or
                            ``(ii) annually thereafter.
                    ``(B) Effect of redemption.--On redemption of a 
                guarantee under subparagraph (A)--
                            ``(i) the shares in the Fund of the 
                        authorized private investor shall be redeemed; 
                        and
                            ``(ii) the authorized private investor 
                        shall be prohibited from making any future 
                        investment in the Fund.
    ``(d) Debt Securities.--
            ``(1) In general.--The Fund may, at the discretion of the 
        Board, generate additional capital through--
                    ``(A) the issuance of debt securities; and
                    ``(B) other means determined to be appropriate by 
                the Board.
            ``(2) Guarantee of debt by secretary.--
                    ``(A) In general.--The Secretary shall guarantee 
                100 percent of the principal of, and accrued interest 
                on, debentures issued by the Fund that are approved by 
                the Secretary.
                    ``(B) Maximum debt guaranteed by secretary.--The 
                outstanding value of debentures issued by the Fund and 
                guaranteed by the Secretary shall not exceed the lesser 
                of--
                            ``(i) the amount equal to twice the value 
                        of the assets held by the Fund; or
                            ``(ii) $500,000,000.
                    ``(C) Recapture of guarantee payments.--If the 
                Secretary makes a payment on a debt security issued by 
                the Fund as a result of a guarantee of the Secretary 
                under this paragraph, the Secretary shall have priority 
                over other creditors for repayment of the debt 
                security.
            ``(3) Authorized private investors.--An authorized private 
        investor may purchase debt securities issued by the Fund.

``SEC. 383F. INVESTMENTS AND OTHER ACTIVITIES OF THE FUND.

    ``(a) Investments.--
            ``(1) In general.--
                    ``(A) Types.--Subject to subparagraphs (B) and (C), 
                the Fund may--
                            ``(i) make equity investments in a rural 
                        business that meets--
                                    ``(I) the requirements of paragraph 
                                (6); and
                                    ``(II) such other requirements as 
                                the Board may establish; and
                            ``(ii) extend credit to the rural business 
                        in--
                                    ``(I) the form of mezzanine debt or 
                                subordinated debt; or
                                    ``(II) any other form of quasi-
                                equity.
                    ``(B) Limitations on investments.--
                            ``(i) Total investments by a single rural 
                        business.--Subject to clause (ii), investment 
                        by the Fund in a single rural business shall 
                        not exceed the greater of--
                                    ``(I) an amount equal to 7 percent 
                                of the capital of the Fund; or
                                    ``(II) $2,000,000.
                            ``(ii) Waiver.--The Secretary may waive the 
                        limitation in clause (i) in any case in which 
                        an investment exceeding the limits specified in 
                        clause (i) is necessary to preserve prior 
                        investments in the rural business.
                            ``(iii) Total nonequity investments.--
                        Except in the case of a project to assist a 
                        rural cooperative, the total amount of 
                        nonequity investments described in subparagraph 
                        (A)(ii) that may be provided by the Fund shall 
                        not exceed 20 percent of the total investments 
                        of the Fund in the project.
                    ``(C) Limitation.--Notwithstanding subparagraph 
                (B), the amount of any investment by the Fund in a 
                rural business shall not exceed the aggregate amount 
                invested in like securities by other private entities 
                in that rural business.
            ``(2) Procedures.--The Fund shall implement procedures to 
        ensure that--
                    ``(A) the financing arrangements of the Fund meet 
                the Fund's primary focus of providing equity capital; 
                and
                    ``(B) the Fund does not compete with conventional 
                sources of credit.
            ``(3) Diversity of projects.--The Fund--
                    ``(A) shall seek to make equity investments in a 
                variety of viable projects, with a significant share of 
                investments--
                            ``(i) in smaller enterprises (as defined in 
                        section 384A) in rural communities of diverse 
                        sizes; and
                            ``(ii) in cooperative and noncooperative 
                        enterprises; and
                    ``(B) shall be managed in a manner that diversifies 
                the risks to the Fund among a variety of projects.
            ``(4) Limitation on rural businesses assisted.--The Fund 
        shall not invest in any rural business that is primarily retail 
        in nature (as determined by the Board), other than a purchasing 
        cooperative.
            ``(5) Interest rate limitations.--Returns on investments in 
        and by the Fund and returns on the extension of credit by 
        participants in projects assisted by the Fund, shall not be 
        subject to any State or Federal law establishing a maximum 
        allowable interest rate.
            ``(6) Requirements for recipients.--
                    ``(A) Other investments.--Any recipient of amounts 
                from the Fund shall make or obtain a significant 
                investment from a source of capital other than the 
                Fund.
                    ``(B) Sponsorship.--To be considered for an equity 
                investment from the Fund, a rural business investment 
                project shall be sponsored by a regional, State, or 
                local sponsoring or endorsing organization such as--
                            ``(i) a financial institution;
                            ``(ii) a development organization; or
                            ``(iii) any other established entity 
                        engaging or assisting in rural business 
                        development, including a rural cooperative.
    ``(b) Technical Assistance.--The Fund, under terms and conditions 
established by the Board, shall use not less than 2 percent of capital 
provided by the Federal Government to provide technical assistance to 
rural businesses seeking an equity investment from the Fund.
    ``(c) Annual Audit.--
            ``(1) In general.--The Board shall authorize an annual 
        audit of the financial statements of the Fund by a nationally 
        recognized auditing firm using generally accepted accounting 
        principles.
            ``(2) Availability of audit results.--The results of the 
        audit required by paragraph (1) shall be made available to 
        investors in the Fund.
    ``(d) Annual Report.--The Board shall prepare and make available to 
the public an annual report that--
            ``(1) describes the projects funded with amounts from the 
        Fund;
            ``(2) specifies the recipients of amounts from the Fund;
            ``(3) specifies the coinvestors in all projects that 
        receive amounts from the Fund; and
            ``(4) meets the reporting requirements, if any, of the 
        State under the law of which the Fund is established.
    ``(e) Other Authorities.--
            ``(1) In general.--The Board may exercise such other 
        authorities as are necessary to carry out this subtitle.
            ``(2) Oversight.--The Secretary shall enter in to a 
        contract with the Administrator of the Small Business 
        Administration under which the Administrator of the Small 
        Business Administration shall be responsible for the routine 
        duties of the Secretary in regard to the Fund.

``SEC. 383G. GOVERNANCE OF THE FUND.

    ``(a) In General.--The Fund shall be governed by a board of 
directors that represents all of the authorized private investors in 
the Fund and the Federal Government and that consists of--
            ``(1) a designee of the Secretary;
            ``(2) 2 members who are appointed by the Secretary and are 
        not Federal employees, including--
                    ``(A) 1 member with expertise in venture capital 
                investment; and
                    ``(B) 1 member with expertise in cooperative 
                development;
            ``(3) 8 members who are elected by the authorized private 
        investors with investments in the Fund; and
            ``(4) 1 member who is appointed by the Board and who is a 
        community banker from an insured depository institution that 
        has--
                    ``(A) total assets equal to or less than 
                $250,000,000; and
                    ``(B) an investment in the Fund.
    ``(b) Limitation on Voting Control.--No individual investor or 
group of authorized investors may control more than 25 percent of the 
votes on the Board.

``SEC. 383H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this subtitle.''.

SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended by 
section 601) 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(c).
            ``(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(d), 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) the paid-in capital and paid-in 
                        surplus of a corporate Rural Business 
                        Investment Company, the contributed capital of 
                        the partners of a partnership Rural Business 
                        Investment Company, or 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 
                        unfunded commitments may be counted as private 
                        capital for purposes of approval by the 
                        Secretary of any request for leverage, but 
                        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) 50 percent of funds from the 
                                National Rural Cooperative and Business 
                                Equity Fund;
                                    ``(II) 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;
                                    ``(III) funds invested by an 
                                employee welfare benefit plan or 
                                pension plan; and
                                    ``(IV) 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(d); 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(d) 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 businesses.
    ``(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, when 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) Issuance of License.--
            ``(1) Submission of application.--Each applicant for a 
        license to operate as a Rural Business Investment Company under 
        this subtitle shall submit to the Secretary an application, in 
        a form and including such documentation as may be prescribed by 
        the Secretary.
            ``(2) Procedures.--
                    ``(A) Status.--Not later than 90 days after the 
                initial receipt by the Secretary of an application 
                under this subsection, the Secretary shall provide the 
                applicant with a written report describing the status 
                of the application and any requirements remaining for 
                completion of the application.
                    ``(B) Approval or disapproval.--Within a reasonable 
                time after receiving a completed application submitted 
                in accordance with this subsection and in accordance 
                with such requirements as the Secretary may prescribe 
                by regulation, the Secretary shall--
                            ``(i) approve the application and issue a 
                        license for the operation to the applicant, if 
                        the requirements of this section are satisfied; 
                        or
                            ``(ii) disapprove the application and 
                        notify the applicant in writing of the 
                        disapproval.
            ``(3) Matters considered.--In reviewing and processing any 
        application under this subsection, the Secretary--
                    ``(A) shall determine whether--
                            ``(i) the applicant meets the requirements 
                        of subsection (d); and
                            ``(ii) the management of the applicant is 
                        qualified and has the knowledge, experience, 
                        and capability necessary to comply with this 
                        subtitle;
                    ``(B) shall take into consideration--
                            ``(i) the need for and availability of 
                        financing for rural business concerns in the 
                        geographic area in which the applicant is to 
                        commence business;
                            ``(ii) the general business reputation of 
                        the owners and management of the applicant; and
                            ``(iii) the probability of successful 
                        operations of the applicant, including adequate 
                        profitability and financial soundness; and
                    ``(C) shall not take into consideration any 
                projected shortage or unavailability of grant funds or 
                leverage.
    ``(d) Approval; Designation.--
            ``(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 designate 
        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 less 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 
                        reasonably projects profitable operations and 
                        that 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 other 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 100,000 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 incurred 
                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 civilly liable in 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 civilly liable in 
                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.

    ``Notwithstanding any other provision of law, the Secretary shall 
enter into an interagency agreement with the Administrator of the Small 
Business Administration to carry out, on behalf of the Secretary, the 
day-to-day management and operation of the program authorized by this 
subtitle.

``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.--Not later than 30 days after the date of 
enactment of this Act, out of any funds in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall transfer to the 
Secretary of Agriculture--
            ``(1) such sums as may be necessary for the cost of 
        guaranteeing $350,000,000 of debentures under this subtitle; 
        and
            ``(2) $50,000,000 to make grants under this subtitle.
    ``(b) Receipt and Acceptance.--The Secretary shall be entitled to 
receive, shall accept, and shall use to carry out this section the 
funds transferred under subsection (a), without further appropriation.
    ``(c) Availability of Funds.--Funds transferred under subsection 
(a) shall remain available until expended.''.

SEC. 603. FULL 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, loan 
guarantee, 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) Account.--There is established in the Treasury of the United 
States an account to be known as the ``Rural America Infrastructure 
Development Account'' (referred to in this section as the ``Account'') 
to fund rural development loans, loan guarantees, and grants described 
in subsection (d) that are pending on the date of enactment of this 
Act.
    (c) Funding.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary of Agriculture such sums as are 
        necessary to carry out this section, to remain available until 
        expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
    (d) Use of Funds.--
            (1) Eligible programs.--Subject to paragraph (2), the 
        Secretary shall use the funds in the Account to provide funds 
        for applications that are pending on the date of enactment of 
        this Act for--
                    (A) community facility direct loans under section 
                306(a)(1) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1926(a)(1));
                    (B) community facility grants under paragraph (19), 
                (20), or (21) of section 306(a) of that Act (7 U.S.C. 
                1926(a));
                    (C) water or waste disposal grants or direct loans 
                under paragraph (1) or (2) of section 306(a) of that 
                Act (7 U.S.C. 1926(a));
                    (D) rural water or wastewater technical assistance 
                and training grants under section 306(a)(14) of that 
                Act (7 U.S.C. 1926(a)(14));
                    (E) emergency community water assistance grants 
                under section 306A of that Act (7 U.S.C. 1926a);
                    (F) business and industry guaranteed loans 
                authorized under section 310B(a)(1)(A) of that Act (7 
                U.S.C. 1932(a)(1)(A)); and
                    (G) solid waste management grants under section 
                310B(b) of that Act (7 U.S.C. 1932(b)).
            (2) Limitations.--
                    (A) Appropriated amounts.--Funds in the Account 
                shall be available to the Secretary to provide funds 
                for pending applications for loans, loan guarantees, 
                and grants described in paragraph (1) only to the 
                extent that funds for the loans, loan guarantees, and 
                grants appropriated in the annual appropriations Act 
                for fiscal year 2002 have been exhausted.
                    (B) Program requirements.--The Secretary may use 
                the Account to provide funds for a pending application 
                for a loan, loan guarantee, or grant described in 
                paragraph (1) only if the Secretary processes, reviews, 
                and approves the application in accordance with 
                regulations in effect on the date of enactment of this 
                Act.

SEC. 604. RURAL ENDOWMENT PROGRAM.

    (a) In General.--The Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) (as amended by section 602) is amended by adding 
at the end the following:

                 ``Subtitle I--Rural Endowment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to provide rural communities with 
technical and financial assistance to implement comprehensive community 
development strategies to reduce the economic and social distress 
resulting from poverty, high unemployment, outmigration, plant 
closings, agricultural downturn, declines in the natural resource-based 
economy, or environmental degradation.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
            ``(1) Comprehensive community development strategy.--The 
        term `comprehensive community development strategy' means a 
        community development strategy described in section 385C(e).
            ``(2) Eligible rural area.--
                    ``(A) In general.--The term `eligible rural area' 
                means an area with a population of 25,000 inhabitants 
                or less, as determined by the Secretary using the most 
                recent decennial census.
                    ``(B) Exclusions.--The term `eligible rural area' 
                does not include--
                            ``(i) any area designated by the Secretary 
                        as a rural empowerment zone or rural enterprise 
                        community; or
                            ``(ii) an urbanized area immediately 
                        adjacent to an incorporated city or town with a 
                        population of more than 25,000 inhabitants.
            ``(3) Endowment fund.--The term `endowment fund' means a 
        long-term fund that an approved program entity is required to 
        establish under section 385C(f)(3).
            ``(4) Performance-based benchmarks.--The term `performance-
        based benchmarks' means a set of annualized goals and tasks 
        established by a recipient of a grant under the Program, in 
        collaboration with the Secretary, for the purpose of measuring 
        performance in meeting the comprehensive community development 
        strategy of the recipient.
            ``(5) Program.--The term `Program' means the Rural 
        Endowment Program established under section 385C(a).
            ``(6) Program entity.--The term `program entity' means--
                    ``(A) a private nonprofit community-based 
                development organization;
                    ``(B) a unit of local government (including a 
                multijurisdictional unit of local government);
                    ``(C) an Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450b));
                    ``(D) a consortium comprised of an organization 
                described in subparagraph (A) and a unit of local 
                government; or
                    ``(E) a consortium of entities specified in 
                subparagraphs (A) through (D);
        that serves an eligible rural area.
            ``(7) Program-related investment.--The term `program-
        related investment' means--
                    ``(A) a loan, loan guarantee, grant, payment of a 
                technical fee, or other expenditure provided for an 
                affordable housing, community facility, small business, 
                environmental improvement, or other community 
                development project that is part of a comprehensive 
                community development strategy; and
                    ``(B) support services relating to a project 
                described in subparagraph (A).

``SEC. 385C. RURAL ENDOWMENT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary may establish a program, 
        to be known as the `Rural Endowment Program', to provide 
        approved program entities with assistance in developing and 
        implementing comprehensive community development strategies for 
        eligible rural areas.
            ``(2) Purposes.--The purposes of the Program are--
                    ``(A) to enhance the ability of an eligible rural 
                area to engage in comprehensive community development;
                    ``(B) to leverage private and public resources for 
                the benefit of community development efforts in 
                eligible rural areas;
                    ``(C) to make available staff of Federal agencies 
                to directly assist the community development efforts of 
                an approved program entity or eligible rural area; and
                    ``(D) to strengthen the asset base of an eligible 
                rural area to further long-term, ongoing community 
                development.
    ``(b) Applications.--
            ``(1) In general.--To receive an endowment grant under the 
        Program, the eligible entity shall submit an application at 
        such time, in such form, and containing such information as the 
        Secretary may require.
            ``(2) Regional applications.--
                    ``(A) In general.--Where appropriate, the Secretary 
                shall encourage regional applications from program 
                entities serving more than 1 eligible rural area.
                    ``(B) Criteria for applications.--To be eligible 
                for an endowment grant for a regional application, the 
                program entities that submit the application shall 
                demonstrate that--
                            ``(i) a comprehensive community development 
                        strategy for the eligible rural areas is best 
                        accomplished through a regional approach; and
                            ``(ii) the combined population of the 
                        eligible rural areas covered by the 
                        comprehensive community development strategy is 
                        75,000 inhabitants or less.
                    ``(C) Waiver for indian tribes.--The Secretary may, 
                at the request of an Indian tribe, waive the 
                requirement under subparagraph (B)(ii) with respect to 
                an application submitted by the Indian tribe for 
                multiple eligible rural areas under the jurisdiction of 
                the Indian tribe.
                    ``(D) Amount of endowment grants.--For the purpose 
                of subsection (f)(2), 2 or more program entities that 
                submit a regional application shall be considered to be 
                a single program entity.
            ``(3) Preference.--The Secretary shall give preference to a 
        joint application submitted by a private, nonprofit community 
        development corporation and a unit of local government or 
        Indian tribe.
    ``(c) Entity Approval.--The Secretary shall approve a program 
entity to receive grants under the Program, if the program entity meets 
criteria established by the Secretary, including the following:
            ``(1) Distressed rural area.--The program entity shall 
        serve a rural area that suffers from economic or social 
        distress resulting from poverty, high unemployment, 
        outmigration, plant closings, agricultural downturn, declines 
        in the natural resource-based economy, or environmental 
        degradation.
            ``(2) Capacity to implement strategy.--The program entity 
        shall demonstrate the capacity to implement a comprehensive 
        community development strategy.
            ``(3) Goals.--The goals described in the application 
        submitted under subsection (b) shall be consistent with this 
        section.
            ``(4) Participation process.--The program entity shall 
        demonstrate the ability to convene and maintain a multi-
        stakeholder, community-based participation process.
    ``(d) Planning Grants to Conditionally Approved Program Entities.--
            ``(1) In general.--The Secretary may award supplemental 
        grants to approved program entities to assist the approved 
        program entities in the development of a comprehensive 
        community development strategy under subsection (e).
            ``(2) Eligibility for supplemental grants.--In determining 
        whether to award a supplemental grant to an approved program 
        entity, the Secretary shall consider the economic need of the 
        approved program entity.
            ``(3) Limitations on amount of grants.--Under this 
        subsection, an approved program entity may receive a 
        supplemental grant in an amount of--
                    ``(A) not more than $100,000; or
                    ``(B) in the case of a regional application 
                approved under a waiver by the Secretary under 
                subsection (b)(2)(C), not more than $200,000.
    ``(e) Endowment Grant Award.--
            ``(1) In general.--To be eligible for an endowment grant 
        under the Program, an approved program entity shall develop, 
        and obtain the approval of the Secretary for, a comprehensive 
        community development strategy that--
                    ``(A) is designed to reduce economic or social 
                distress resulting from poverty, high unemployment, 
                outmigration, plant closings, agricultural downturn, 
                declines in the natural resource-based economy, or 
                environmental degradation;
                    ``(B) addresses a broad range of the development 
                needs of a community, including economic, social, and 
                environmental needs, for a period of not less than 10 
                years;
                    ``(C) is developed with input from a broad array of 
                local governments and business, civic, and community 
                organizations;
                    ``(D) specifies measurable performance-based 
                outcomes for all activities; and
                    ``(E) includes a financial plan for achieving the 
                outcomes and activities of the comprehensive community 
                development strategy that identifies sources for, or a 
                plan to meet, the requirement for a non-Federal share 
                under subsection (f)(4)(B).
            ``(2) Final approval.--
                    ``(A) In general.--An approved program entity shall 
                receive final approval if the Secretary determines 
                that--
                            ``(i) the comprehensive community 
                        development strategy of the approved program 
                        entity meets the requirements of this section;
                            ``(ii) the management and organizational 
                        structure of the approved program entity is 
                        sufficient to oversee fund and development 
                        activities;
                            ``(iii) the approved program entity has 
                        established an endowment fund; and
                            ``(iv) the approved program entity will be 
                        able to provide the non-Federal share required 
                        under subsection (f)(4)(B).
                    ``(B) Conditions.--As part of the final approval, 
                the approved program entity shall agree to--
                            ``(i) achieve, to the maximum extent 
                        practicable, performance-based benchmarks; and
                            ``(ii) comply with the terms of the 
                        comprehensive community development strategy 
                        for a period of not less than 10 years.
    ``(f) Endowment Grants.--
            ``(1) In general.--Under the Program, the Secretary may 
        make endowment grants to approved program entities with final 
        approval to implement an approved comprehensive community 
        development strategy.
            ``(2) Amount of grants.--An endowment grant to an approved 
        program entity shall be in an amount of not more than 
        $6,000,000, as determined by the Secretary based on--
                    ``(A) the size of the population of the eligible 
                rural area for which the endowment grant is to be used;
                    ``(B) the size of the eligible rural area for which 
                the endowment grant is to be used;
                    ``(C) the extent of the comprehensive community 
                development strategy to be implemented using the 
                endowment grant award; and
                    ``(D) the extent to which the community suffers 
                from economic or social distress resulting from--
                            ``(i) poverty;
                            ``(ii) high unemployment;
                            ``(iii) outmigration;
                            ``(iv) plant closings;
                            ``(v) agricultural downturn;
                            ``(vi) declines in the natural resource-
                        based economy; or
                            ``(vii) environmental degradation.
            ``(3) Endowment funds.--
                    ``(A) Establishment.--On notification from the 
                Secretary that the program entity has been approved 
                under subsection (c), the approved program entity shall 
                establish an endowment fund.
                    ``(B) Funding of endowment.--Federal funds provided 
                in the form of an endowment grant under the Program 
                shall--
                            ``(i) be deposited in the endowment fund;
                            ``(ii) be the sole property of the approved 
                        program entity;
                            ``(iii) be used in a manner consistent with 
                        this subtitle; and
                            ``(iv) be subject to oversight by the 
                        Secretary for a period of not more than 10 
                        years.
                    ``(C) Interest.--Interest earned on Federal funds 
                in the endowment fund shall be--
                            ``(i) retained by the grantee; and
                            ``(ii) treated as Federal funds are treated 
                        under subparagraph (B).
                    ``(D) Limitation.--The Secretary shall promulgate 
                regulations on matching funds and returns on program-
                related investments only to the extent that such funds 
                or proceeds are used in a manner consistent with this 
                subtitle.
            ``(4) Conditions.--
                    ``(A) Disbursement.--
                            ``(i) In general.--Each endowment grant 
                        award shall be disbursed during a period not to 
                        exceed 5 years beginning during the fiscal year 
                        containing the date of final approval of the 
                        approved program entity under subsection 
                        (e)(3).
                            ``(ii) Manner of disbursement.--Subject to 
                        subparagraph (B), the Secretary may disburse a 
                        grant award in 1 lump sum or in incremental 
                        disbursements made each fiscal year.
                            ``(iii) Incremental disbursements.--If the 
                        Secretary elects to make incremental 
                        disbursements, for each fiscal year after the 
                        initial disbursement, the Secretary shall make 
                        a disbursement under clause (i) only if the 
                        approved program entity--
                                    ``(I) has met the performance-based 
                                benchmarks of the approved program 
                                entity for the preceding fiscal year; 
                                and
                                    ``(II) has provided the non-Federal 
                                share required for the preceding fiscal 
                                year under subparagraph (B).
                            ``(iv) Advance disbursements.--The 
                        Secretary may make disbursements under this 
                        paragraph notwithstanding any provision of law 
                        limiting grant disbursements to amounts 
                        necessary to cover expected expenses on a term 
                        basis.
                    ``(B) Non-federal share.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for each disbursement under 
                        subparagraph (A), the Secretary shall require 
                        the approved program entity to provide a non-
                        Federal share in an amount equal to 50 percent 
                        of the amount of funds received by the approved 
                        program entity under the disbursement.
                            ``(ii) Lower non-federal share.--In the 
                        case of an approved program entity that serves 
                        a small, poor rural area or poor Indian tribe 
                        (as determined by the Secretary), the Secretary 
                        may--
                                    ``(I) reduce the non-Federal share 
                                to not less than 20 percent; and
                                    ``(II) allow the non-Federal share 
                                to be provided in the form of in-kind 
                                contributions.
                            ``(iii) Binding commitments; plan.--For the 
                        purpose of meeting the non-Federal share 
                        requirement with respect to the first 
                        disbursement of an endowment grant award to the 
                        approved program entity under the Program, an 
                        approved program entity shall--
                                    ``(I) have, at a minimum, binding 
                                commitments to provide the non-Federal 
                                share required with respect to the 
                                first disbursement of the endowment 
                                grant award; and
                                    ``(II) if the Secretary is making 
                                incremental disbursements of a grant, 
                                develop a viable plan for providing the 
                                remaining amount of the required non-
                                Federal share.
                    ``(C) Limitations.--
                            ``(i) In general.--Subject to clause (ii), 
                        of each disbursement, an approved program 
                        entity shall use--
                                    ``(I) not more than 10 percent for 
                                administrative costs of carrying out 
                                program-related investments;
                                    ``(II) not more than 20 percent for 
                                the purpose of maintaining a loss 
                                reserve account; and
                                    ``(III) the remainder for program-
                                related investments contained in the 
                                comprehensive community development 
                                strategy.
                            ``(ii) Loss reserve account.--If all 
                        disbursed funds available under a grant are 
                        expended in accordance with clause (i) and the 
                        grant recipient has no expected losses to cover 
                        for a fiscal year, the recipient may use funds 
                        in the loss reserve account described in clause 
                        (i)(II) for program-related investments 
                        described in clause (i)(III) for which no 
                        reserve for losses is required.
    ``(g) Federal Agency Assistance.--Under the Program, the Secretary 
shall provide and coordinate technical assistance for grant recipients 
by designated field staff of Federal agencies.
    ``(h) Private Technical Assistance.--
            ``(1) In general.--Under the Program, the Secretary may 
        make grants to qualified intermediaries to provide technical 
        assistance and capacity building to approved program entities 
        under the Program.
            ``(2) Duties.--A qualified intermediary that receives a 
        grant under this subsection shall--
                    ``(A) provide assistance to approved program 
                entities in developing, coordinating, and overseeing 
                investment strategy;
                    ``(B) provide technical assistance in all aspects 
                of planning, developing, and managing the Program; and
                    ``(C) facilitate Federal and private sector 
                involvement in rural community development.
            ``(3) Eligibility.--To be considered a qualified 
        intermediary under this subsection, an intermediary shall--
                    ``(A) be a private, nonprofit community development 
                organization;
                    ``(B) have expertise in Federal or private rural 
                community development policy or programs; and
                    ``(C) have experience in providing technical 
                assistance, planning, and capacity building assistance 
                to rural communities and nonprofit entities in eligible 
                rural areas.
            ``(4) Maximum amount of grants.--A qualified intermediary 
        may receive a grant under this subsection of not more than 
        $100,000.
            ``(5) Funding.--Of the amounts made available under section 
        385D, the Secretary may use to carry out this subsection not 
        more than $2,000,000 for each of not more than 2 fiscal years.

``SEC. 385D. FUNDING.

    ``(a) Fiscal Years 2002 and 2003.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, out of any funds in the Treasury 
        not otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary of Agriculture to carry out this 
        subtitle $82,000,000 for the period of fiscal years 2002 and 
        2003, to remain available until expended.
            ``(2) Schedule for obligations.--Of the amounts made 
        available under paragraph (1)--
                    ``(A) not more than $5,000,000 shall be obligated 
                to carry out section 385C(d);
                    ``(B) not less than $75,000,000 shall be obligated 
                to carry out section 385C(f); and
                    ``(C) not less than $2,000,000 shall be obligated 
                to carry out section 385C(h).
            ``(3) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this subtitle the funds transferred under paragraph (1), 
        without further appropriation.
    ``(b) Fiscal Years 2004 through 2006.--There are authorized to be 
appropriated such sums as are necessary to carry out this subtitle for 
each of fiscal years 2004 through 2006.''.

SEC. 605. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL AREAS.

    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 grants, 
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, or 
        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) Grants.--The Secretary shall make grants to eligible entities 
described in subsection (e) to provide funds for the construction, 
improvement, or acquisition of facilities and equipment for the 
provision of broadband service in eligible rural communities.
    ``(d) Loans and Loan Guarantees.--The Secretary shall make or 
guarantee loans to eligible entities described in subsection (e) to 
provide funds for the construction, improvement, or acquisition of 
facilities and equipment for the provision of broadband service in 
eligible rural communities.
    ``(e) Eligible Entities.--To be eligible to obtain a grant, loan, 
or loan guarantee under this section, an entity must--
            ``(1) be able to furnish, improve, or extend a broadband 
        service to an eligible rural community; and
            ``(2) submit to the Secretary a proposal for a project that 
        meets the requirements of this section.
    ``(f) 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).
    ``(g) Technological Neutrality.--For purposes of determining 
whether or not to make a grant, loan, or loan guarantee for a project 
under this section, the Secretary shall not take into consideration the 
type of technology proposed to be used under the project.
    ``(h) Terms and Conditions for Loans and Loan Guarantees.--A loan 
or loan guarantee under subsection (d) shall--
            ``(1) be made available in accordance with the requirements 
        of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
        seq.);
            ``(2) bear interest at an annual rate of, as determined by 
        the Secretary--
                    ``(A) 4 percent per annum; or
                    ``(B) the current applicable market rate; and
            ``(3) 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.
    ``(i) 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 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.
    ``(j) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2002, and each October 
        1 thereafter through October 1, 2005, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $100,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            ``(3) Allocation of funds.--
                    ``(A) In general.--From amounts made available for 
                each fiscal year under paragraph (1), the Secretary 
                shall--
                            ``(i) establish a national reserve for 
                        grants, 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 grants, 
                        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 last 
                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 grants, loans, and loan guarantees under this 
                section to eligible entities in any State, as 
                determined by the Secretary.
    ``(k) Grants for Planning and Feasibility Studies on Broadband 
Deployment.--
            ``(1) In general.--In addition to any other grants, loans, 
        or loan guarantees made under this section, the Secretary shall 
        make grants to eligible entities specified in paragraph (2) for 
        planning and feasibility studies carried out by those entities 
        on the deployment of broadband services in the areas served by 
        those entities.
            ``(2) Eligible entities.--The entities eligible for grants 
        under this subsection are--
                    ``(A) State governments;
                    ``(B) local governments (including consortia of 
                local governments);
                    ``(C) tribal governments;
                    ``(D) telecommunications cooperatives; and
                    ``(E) appropriate State and regional nonprofit 
                entities (as determined by the Secretary).
            ``(3) Eligibility criteria.--
                    ``(A) In general.--The Secretary shall establish 
                criteria for eligibility for grants under this 
                subsection, including criteria for the scope of the 
                planning and feasibility studies to be carried out with 
                grants under this subsection.
                    ``(B) Contribution by grantee.--An entity may not 
                be awarded a grant under this subsection unless the 
                entity agrees to contribute (out of funds other than 
                the grant amount) to the planning and feasibility study 
                to be funded by the grant an amount equal to the amount 
                of the grant.
            ``(4) Application.--An entity seeking a grant under this 
        subsection shall submit to the Secretary an application for the 
        grant that is in such form, and that contains such information, 
        as the Secretary shall require.
            ``(5) Use of grant amounts.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                entity that receives a grant under this subsection 
                shall use the grant amount for planning and feasibility 
                studies on the deployment of broadband services in the 
                area of--
                            ``(i) an Indian tribe;
                            ``(ii) a local government;
                            ``(iii) a State;
                            ``(iv) a region of a State; or
                            ``(v) a region of States.
                    ``(B) Limitation.--Grant amounts under this 
                subsection may not be used for the construction of 
                buildings or other facilities, the acquisition or 
                improvement of existing buildings or facilities, or the 
                leasing of office space.
            ``(6) Limitation on grant amounts.--
                    ``(A) Statewide grants.--The amount of the grants 
                made under this subsection in or with respect to any 
                State in any fiscal year may not exceed $250,000.
                    ``(B) Local government, regional, or tribal 
                grants.--The amount of the grants made under this 
                subsection in or with respect to any local government, 
                region, or tribal government in any fiscal year may not 
                exceed $100,000.
            ``(7) Reservation of funds for grants.--
                    ``(A) In general.--For each fiscal year, up to 3 
                percent of the funds made available to carry out this 
                section for the fiscal year shall be reserved for 
                grants under this subsection.
                    ``(B) Release.--Funds reserved under subparagraph 
                (A) for a fiscal year shall be reserved only until 
                April 1 of the fiscal year.
            ``(8) Supplement not supplant.--
                    ``(A) In general.--Eligibility for a grant under 
                this subsection shall not affect eligibility for a 
                grant, loan, or loan guarantee under another subsection 
                of this section.
                    ``(B) Considerations.--The Secretary shall not take 
                into account the award of a grant under this 
                subsection, or the award of a grant, loan, or loan 
                guarantee under another subsection of this section, in 
                awarding a grant, loan, or loan guarantee under this 
                subsection or another subsection of this section, as 
                the case may be.
    ``(l) Termination of Authority.--
            ``(1) In general.--No grant, loan, or loan guarantee may be 
        made under this section after September 30, 2006.
            ``(2) Effect on validity of grant, loan, or loan 
        guarantee.--Notwithstanding paragraph (1), any grant, loan, or 
        loan guarantee made under this section before the date 
        specified in paragraph (1) shall be valid.''.

SEC. 606. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    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.--The term 
`value-added agricultural product' means any agricultural commodity or 
product that--
            ``(1)(A) has undergone a change in physical state; or
            ``(B) 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; and
            ``(2) as a result of the change in physical state or the 
        manner in which the agricultural commodity or product was 
        produced--
                    ``(A) the customer base for the agricultural 
                commodity or product has been expanded; and
                    ``(B) a greater portion of the revenue derived from 
                the processing of the agricultural commodity or product 
                is available to the producer of the commodity or 
                product.
    ``(b) Grant Program.--
            ``(1) Purposes.--The purposes of this subsection are--
                    ``(A) to increase the share of the food and 
                agricultural system profit received by agricultural 
                producers;
                    ``(B) to increase the number and quality of rural 
                self-employment opportunities in agriculture and 
                agriculturally-related businesses and the number and 
                quality of jobs in agriculturally-related businesses;
                    ``(C) to help maintain a diversity of size in farms 
                and ranches by stabilizing the number of small and mid-
                sized farms;
                    ``(D) to increase the diversity of food and other 
                agricultural products available to consumers, including 
                nontraditional crops and products and products grown or 
                raised in a manner that enhances the value of the 
                products to the public; and
                    ``(E) to conserve and enhance the quality of land, 
                water, and energy resources, wildlife habitat, and 
                other landscape values and amenities in rural areas.
            ``(2) Grants.--From amounts made available under paragraph 
        (6), the Secretary shall make 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) to develop a business plan for viable 
                        marketing opportunities for the value-added 
                        agricultural product; or
                            ``(ii) to develop strategies that are 
                        intended to create marketing opportunities for 
                        the producer; and
                    ``(B) to an eligible nonprofit entity (as 
                determined by the Secretary) to assist the entity--
                            ``(i) to develop a business plan for viable 
                        marketing opportunities in emerging markets for 
                        a value-added agricultural product;
                            ``(ii) to develop strategies that are 
                        intended to create marketing opportunities in 
                        emerging markets for the value-added 
                        agricultural product; or
                            ``(iii) to create, expand, or operate 
                        value-added processing in an area described in 
                        paragraph (3)(B)(ii) in connection with 
                        production agriculture.
            ``(3) Amount of grant.--
                    ``(A) In general.--The total amount provided under 
                this subsection to a grant recipient may not exceed 
                $500,000.
                    ``(B) Priority.--The Secretary shall give priority 
                to--
                            ``(i) grant proposals for less than 
                        $200,000 submitted under this subsection; and
                            ``(ii) grant proposals submitted by an 
                        eligible nonprofit entity with a principal 
                        office 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 no more than 5,000 
                                inhabitants.
            ``(4) Grantee strategies.--A grantee under paragraph (2) 
        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.
            ``(5) Grants for marketing or processing certified organic 
        agricultural products.--
                    ``(A) In general.--Out of any amount that is made 
                available to the Secretary for a fiscal year under 
                paragraph (2), the Secretary shall use not less than 5 
                percent of the amount for grants to assist producers of 
                certified organic agricultural products in post-farm 
                marketing or processing of the products through a 
                business or cooperative ventures that--
                            ``(i) expand the customer base of the 
                        certified organic agricultural products; and
                            ``(ii) increase the portion of product 
                        revenue available to the producers.
                    ``(B) Certified organic agricultural product.--For 
                the purposes of this paragraph, a certified organic 
                agricultural product does not have to meet the 
                requirements of the definition of `value-added 
                agricultural product' under subsection (a).
                    ``(C) Insufficient applications.--If, for any 
                fiscal year, the Secretary receives an insufficient 
                quantity of applications for grants described in 
                subparagraph (A) to use the funds reserved under 
                subparagraph (A), the Secretary may use the excess 
                reserved funds to make grants for any other purpose 
                authorized under this subsection.
            ``(6) Funding.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of this paragraph, and on October 1, 
                2002, and each October 1 thereafter through October 1, 
                2005, out of any funds in the Treasury not otherwise 
                appropriated, the Secretary of the Treasury shall 
                transfer to the Secretary of Agriculture to carry out 
                this subsection $75,000,000, to remain available until 
                expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this subsection the funds transferred under 
                subparagraph (A), without further appropriation.'';
            (3) in subsection (c)(1) (as redesignated)--
                    (A) by striking ``subsection (a)(2)'' and inserting 
                ``subsection (b)(2)'';
                    (B) by striking ``$5,000,000'' and inserting ``7.5 
                percent''; and
                    (C) by striking ``subsection (a)'' and inserting 
                ``subsection (b)''; and
            (4) in subsection (d) (as redesignated), by striking 
        ``subsections (a) and (b)'' and inserting ``subsections (b) and 
        (c)''.

SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION CLEARINGHOUSE.

    Section 2381 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 3125b) is amended to read as follows:

``SEC. 2381. NATIONAL RURAL DEVELOPMENT INFORMATION CLEARINGHOUSE.

    ``(a) Establishment.--The Secretary shall establish and maintain, 
within the rural development mission area of the Department of 
Agriculture, a National Rural Development Information Clearinghouse 
(referred to in this section as the `Clearinghouse') to perform the 
functions specified in subsection (b).
    ``(b) Functions.--The Clearinghouse shall collect information and 
data from, and disseminate information and data to, any person or 
public or private entity about programs and services provided by 
Federal, State, local, and tribal agencies, institutions of higher 
education, and private, for-profit, and nonprofit organizations and 
institutions under which a person or public or private entity residing 
or operating in a rural area may be eligible for any kind of financial, 
technical, or other assistance, including business, venture capital, 
economic, credit and community development assistance, health care, job 
training, education, and emotional and financial counseling.
    ``(c) Modes of Collection and Dissemination of Information.--In 
addition to other modes for the collection and dissemination of the 
types of information and data specified under subsection (b), the 
Secretary shall ensure that the Clearinghouse maintains an Internet 
website that provides for dissemination and collection, through 
voluntary submission or posting, of the information and data.
    ``(d) Federal Agencies.--On request of the Secretary and to the 
extent permitted by law, the head of a Federal agency shall provide to 
the Clearinghouse such information as the Secretary may request to 
enable the Clearinghouse to carry out this section.
    ``(e) State, Local, and Tribal Agencies, Institutions of Higher 
Education, and Nonprofit and For-Profit Organizations.--The Secretary 
shall request State, local, and tribal agencies, institutions of higher 
education, and private, for-profit, and nonprofit organizations and 
institutions to provide to the Clearinghouse information concerning 
applicable programs or services described in subsection (b).
    ``(f) Promotion of Clearinghouse.--The Secretary prominently shall 
promote the existence and availability of the Clearinghouse in all 
activities of the Department of Agriculture relating to rural areas of 
the United States.
    ``(g) Funding.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall use to operate and maintain the Clearinghouse not more 
        than $600,000 of the funds available to the Rural Housing 
        Service, the Rural Utilities Service, and the Rural Business-
        Cooperative Service for each fiscal year.
            ``(2) Limitation.--Funds available to the Rural Housing 
        Service, the Rural Utilities Service, and the Rural Business-
        Cooperative Service for the payment of loan costs (as defined 
        in section 502 of Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a)) shall not be used to operate and maintain the 
        Clearinghouse.''.

           Subtitle B--National Rural Development Partnership

SEC. 611. SHORT TITLE.

    This subtitle may be cited as the ``National Rural Development 
Partnership Act of 2002''.

SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

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

``SEC. 377. 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--
                    ``(A) implements Federal law targeted at rural 
                areas, including--
                            ``(i) the Act of April 24, 1950 (commonly 
                        known as the `Granger-Thye Act') (64 Stat. 82, 
                        chapter 9);
                            ``(ii) the Intergovernmental Cooperation 
                        Act of 1968 (82 Stat. 1098);
                            ``(iii) section 41742 of title 49, United 
                        States Code;
                            ``(iv) the Rural Development Act of 1972 
                        (86 Stat. 657);
                            ``(v) the Rural Development Policy Act of 
                        1980 (94 Stat. 1171);
                            ``(vi) the Rural Electrification Act of 
                        1936 (7 U.S.C. 901 et seq.);
                            ``(vii) amendments made to section 334 of 
                        the Public Health Service Act (42 U.S.C. 254g) 
                        by the Rural Health Clinics Act of 1983 (97 
                        Stat. 1345); and
                            ``(viii) the Rural Housing Amendments of 
                        1983 (97 Stat. 1240) and the amendments made by 
                        the Rural Housing Amendments of 1983 to title V 
                        of the Housing Act of 1949 (42 U.S.C. 1471 et 
                        seq.); or
                    ``(B) administers a program that has a significant 
                impact on rural areas, including--
                            ``(i) the Appalachian Regional Commission;
                            ``(ii) the Department of Agriculture;
                            ``(iii) the Department of Commerce;
                            ``(iv) the Department of Defense;
                            ``(v) the Department of Education;
                            ``(vi) the Department of Energy;
                            ``(vii) the Department of Health and Human 
                        Services;
                            ``(viii) the Department of Housing and 
                        Urban Development;
                            ``(ix) the Department of the Interior;
                            ``(x) the Department of Justice;
                            ``(xi) the Department of Labor;
                            ``(xii) the Department of Transportation;
                            ``(xiii) the Department of the Treasury;
                            ``(xiv) the Department of Veterans Affairs;
                            ``(xv) the Environmental Protection Agency;
                            ``(xvi) the Federal Emergency Management 
                        Administration;
                            ``(xvii) the Small Business Administration;
                            ``(xviii) the Social Security 
                        Administration;
                            ``(xix) the Federal Reserve System;
                            ``(xx) the United States Postal Service;
                            ``(xxi) the Corporation for National 
                        Service;
                            ``(xxii) the National Endowment for the 
                        Arts and the National Endowment for the 
                        Humanities; and
                            ``(xxiii) other agencies, commissions, and 
                        corporations.
            ``(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--
                    ``(A) to empower and build the capacity of States 
                and rural communities within States to design unique 
                responses to their own special rural development needs, 
                with local determinations of progress and selection of 
                projects and activities;
                    ``(B) to encourage participants to be flexible and 
                innovative in establishing new partnerships and trying 
                fresh, new approaches to rural development issues, with 
                responses to rural development that use different 
                approaches to fit different situations; and
                    ``(C) to encourage all partners in the Partnership 
                (Federal, State, local, and tribal governments, the 
                private sector, and nonprofit organizations) to be 
                fully engaged and share equally in decisions.
            ``(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 shall 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 
                referred to in subsection (a)(1)(B) 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, State 
                rural development councils.
            ``(5) Role of private and nonprofit sector organizations.--
        Private and nonprofit sector organizations are encouraged--
                    ``(A) to act as full partners in the Partnership 
                and State rural development councils; and
                    ``(B) to cooperate with participating government 
                organizations in developing innovative approaches to 
                the solution of rural development problems.
    ``(c) National Rural Development Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish a 
        National Rural Development Coordinating Committee.
            ``(2) Composition.--The Coordinating Committee shall be 
        composed of--
                    ``(A) 1 representative of each agency with rural 
                responsibilities that elects to participate in the 
                Coordinating Committee; 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) provide support for the work of the State 
                rural development councils;
                    ``(B) facilitate coordination among Federal 
                programs and activities, and with State, local, tribal, 
                and private programs and activities, affecting rural 
                development;
                    ``(C) enhance the effectiveness, responsiveness, 
                and delivery of Federal programs in rural areas;
                    ``(D) gather and provide to Federal authorities 
                information and input for the development and 
                implementation of Federal programs impacting rural 
                economic and community development;
                    ``(E) notwithstanding any other provision of law, 
                review and comment on policies, regulations, and 
                proposed legislation that affect or would affect rural 
                areas;
                    ``(F) provide technical assistance to State rural 
                development councils for the implementation of Federal 
                programs;
                    ``(G) notwithstanding any other provision of law, 
                develop and facilitate strategies to reduce or 
                eliminate administrative and regulatory impediments; 
                and
                    ``(H) require each State receiving funds under this 
                section to submit an annual report on the use of the 
                funds by the State, including a description of 
                strategic plans, goals, performance measures, and 
                outcomes for the State rural development council of the 
                State.
            ``(4) Election not to participate.--An agency with rural 
        responsibilities that elects not to participate in the 
        Partnership and the Coordinating Committee shall submit to 
        Congress a report that describes--
                    ``(A) how the programmatic responsibilities of the 
                Federal agency that target or have an impact on rural 
                areas are better achieved without participation by the 
                agency in the Partnership; and
                    ``(B) a more effective means of partnership-
                building and collaboration to achieve the programmatic 
                responsibilities of the agency.
    ``(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 establish a State rural development council.
            ``(2) State diversity.--Each State rural development 
        council shall--
                    ``(A) have a nonpartisan membership that is broad 
                and representative of the economic, social, and 
                political diversity of the State; and
                    ``(B) carry out programs and activities in a manner 
                that reflects the diversity of the State.
            ``(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 target or 
                have an impact on rural areas of the State;
                    ``(B) enhance the effectiveness, responsiveness, 
                and delivery of Federal and State programs in rural 
                areas of the State;
                    ``(C) gather and provide to the Coordinating 
                Committee and other appropriate organizations 
                information on the condition of rural areas in the 
                State;
                    ``(D) monitor and report on policies and programs 
                that address, or fail to address, the needs of the 
                rural areas of the State;
                    ``(E) provide comments to the Coordinating 
                Committee and other appropriate organizations on 
                policies, regulations, and proposed legislation that 
                affect or would affect the rural areas of the State;
                    ``(F) notwithstanding any other provision of law, 
                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;
                    ``(G) use grant or cooperative agreement funds 
                provided by the Partnership under an agreement entered 
                into under paragraph (1) to--
                            ``(i) retain an Executive Director and such 
                        support staff as are necessary to facilitate 
                        and implement the directives of the State rural 
                        development council; and
                            ``(ii) pay expenses associated with 
                        carrying out subparagraphs (A) through (F); and
                    ``(H)(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) Authorities.--A State rural development council may--
                    ``(A) solicit funds to supplement and match funds 
                provided under paragraph (3)(G); and
                    ``(B) engage in activities, in addition to those 
                specified in paragraph (3), appropriate to accomplish 
                the purposes for which the State rural development 
                council is established.
            ``(5) Comments or recommendations.--A State rural 
        development council may provide comments and recommendations to 
        an agency with rural responsibilities related to the activities 
        of the State rural development council within the State.
            ``(6) Actions of state rural development council members.--
        When carrying out a program or activity authorized by a State 
        rural development council or this subtitle, a member of the 
        council shall be regarded as a full-time employee of the 
        Federal Government for purposes of chapter 171 of title 28, 
        United States Code, and the Federal Advisory Committee Act (5 
        U.S.C. App.).
            ``(7) Federal participation in state rural development 
        councils.--
                    ``(A) In general.--The State Director for Rural 
                Development of a State, other employees of the 
                Department of Agriculture, and employees of other 
                Federal agencies that elect to participate in the 
                Partnership shall fully participate in the governance 
                and operations of State rural development councils on 
                an equal basis with other members of the State rural 
                development councils.
                    ``(B) Conflicts.--A Federal employee who 
                participates in a State rural development council shall 
                not participate in the making of any council decision 
                if the agency represented by the Federal employee has 
                any financial or other interest in the outcome of the 
                decision.
                    ``(C) Federal guidance.--The Office of Government 
                Ethics, in consultation with the Attorney General, 
                shall issue guidance to all Federal employees that 
                participate in State rural development councils that 
                describes specific decisions that--
                            ``(i) would constitute a conflict of 
                        interest for the Federal employee; and
                            ``(ii) from which the Federal employee must 
                        recuse himself or herself.
    ``(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 an employee of the agency with rural 
                responsibilities to the Partnership without 
                reimbursement for a period of up to 12 months.
                    ``(B) Civil service status.--The detail shall be 
                without interruption or loss of civil service status or 
                privilege.
            ``(2) Additional support.--The Secretary shall provide for 
        any additional support staff to the Partnership as the 
        Secretary determines to be necessary to carry out the duties of 
        the Partnership.
    ``(f) Funding.--
            ``(1) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as are necessary to carry out 
                this section.
                    ``(B) Amount of financial assistance.--In providing 
                financial assistance to State rural development 
                councils, the Secretary and heads of other Federal 
                agencies shall provide assistance that, to the maximum 
                extent practicable, is--
                            ``(i) uniform in amount; and
                            ``(ii) targeted to newly created State 
                        rural development councils.
                    ``(C) Federal share.--The Secretary shall develop a 
                plan to decrease, over time, the Federal share of the 
                cost of the core operations of State rural development 
                councils.
            ``(2) Federal agencies.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law limiting the ability of an agency to 
                provide funds to the Partnership with other agencies, 
                in order to carry out the purposes described in 
                subsection (b)(2), the Partnership shall be eligible to 
                receive grants, gifts, contributions, or technical 
                assistance from, or enter into contracts with, any 
                Federal agency.
                    ``(B) Assistance.--Federal agencies are encouraged 
                to use funds made available for programs that target or 
                have an impact on rural areas to provide assistance to, 
                and enter into contracts with, the Partnership, as 
                described in subparagraph (A).
            ``(3) Contributions.--The Partnership may accept private 
        contributions.
            ``(4) Federal financial support for state rural development 
        councils.--Notwithstanding any other provision of law, a 
        Federal agency may use funds made available under paragraph (1) 
        or (2) to enter into a cooperative agreement, contract, or 
        other agreement with a State rural development council to 
        support the core operations of the State rural development 
        council, regardless of the legal form of organization of the 
        State rural development council.
    ``(g) 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 under 
        an agreement under subsection (d)(1).
            ``(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.
    ``(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.''.

        Subtitle C--Consolidated Farm and Rural Development Act

SEC. 621. 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 ``$590,000,000'' and inserting 
        ``$1,500,000,000'';
            (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 shall 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 an annual report to the Secretary that 
                        describes the number and size of communities 
                        served and the type of financing provided.
                            ``(vii) Authorization of appropriations.--
                        There is authorized to be appropriated to carry 
                        out this subparagraph $30,000,000 for each of 
                        fiscal years 2002 through 2006.''.

SEC. 622. 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 ``2006''.

SEC. 623. 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 added 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'' of title III of the Agriculture, 
                Rural Development, Food and Drug Administration, and 
                Related Agencies Appropriations Act, 2002.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $15,000,000 for each of fiscal years 2003 
                through 2006.''.

SEC. 624. 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 623) is amended by added 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 provide a 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 2006.''.

SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING EXPERTISE.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 624) is amended by added at 
the end the following:
            ``(24) Certified nonprofit organizations sharing 
        expertise.--
                    ``(A) Certified organizations.--
                            ``(i) In general.--To be certified by the 
                        Secretary to provide technical assistance in 1 
                        or more rural development fields, an 
                        organization shall--
                                    ``(I) be a nonprofit organization 
                                (which may include an institution of 
                                higher education) with experience in 
                                providing technical assistance in the 
                                applicable rural development field;
                                    ``(II) develop a plan, approved by 
                                the Secretary, describing the manner in 
                                which grant funds will be used and the 
                                source of non-Federal funds; and
                                    ``(III) meet such other criteria as 
                                the Secretary may establish, based on 
                                the needs of eligible entities for the 
                                technical assistance.
                            ``(iii) List.--The Secretary shall make 
                        available to the public a list of certified 
                        organizations in each area that the Secretary 
                        determines have substantial experience in 
                        providing the assistance described in 
                        subparagraph (B).
                    ``(B) Grants.--The Secretary may provide grants to 
                certified organizations to pay for costs of providing 
                technical assistance to local governments and nonprofit 
                entities to improve the infrastructure, services, and 
                business development capabilities of local governments 
                and local economic development organizations.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $20,000,000 for each of fiscal years 2003 
                through 2006.''.

SEC. 626. 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 625) is 
amended by adding at the end the following:
            ``(25) Loan guarantees for water, wastewater, and essential 
        community facilities loans.--
                    ``(A) In general.--The Secretary may guarantee 
                under this title a loan made to finance a community 
                facility or water or waste facility project, including 
                a loan financed by the net proceeds of a bond described 
                in section 144(a)(12)(B)(ii) 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 must 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 Guarantee for Certain Loans.--The Secretary may 
guarantee loans made in subsection (a) to finance the issuance of bonds 
for the projects described in section 306(a)(25).''.

SEC. 627. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 626(a)) is amended by adding 
at the end the following:
            ``(26) Rural firefighters and emergency medical personnel 
        grant program.--
                    ``(A) In general.--The Secretary 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.--
                            ``(i) Scholarships.--
                                    ``(I) In general.--Not less than 60 
                                percent of the amounts made available 
                                for competitively awarded grants under 
                                this paragraph shall be used to provide 
                                grants to fund partial scholarships for 
                                training of individuals at training 
                                centers approved by the Secretary.
                                    ``(II) Priority.--In awarding 
                                grants under this clause, the Secretary 
                                shall give priority to grant applicants 
                                with relatively low transportation 
                                costs considering the location of the 
                                grant applicant and the proposed 
                                location of the training.
                            ``(ii) Grants for training centers.--
                                    ``(I) Existing centers.--
                                            ``(aa) In general.--A grant 
                                        under subparagraph (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.
                                            ``(bb) Limitation.--Not 
                                        more than $2,000,000 shall be 
                                        provided to any single training 
                                        center for any fiscal year 
                                        under this subclause.
                                    ``(II) Establishment of new 
                                centers.--
                                            ``(aa) In general.--A grant 
                                        under subparagraph (A) may be 
                                        used to provide the Federal 
                                        share of the costs of 
                                        establishing a regional 
                                        training center for 
                                        firefighters and emergency 
                                        medical personnel.
                                            ``(bb) Federal share.--The 
                                        amount of a grant under this 
                                        subclause for a training center 
                                        shall not exceed 50 percent of 
                                        the cost of establishing the 
                                        training center.
                    ``(C) Funding.--
                            ``(i) In general.--Out of any funds in the 
                        Treasury not otherwise appropriated, the 
                        Secretary of the Treasury shall transfer to the 
                        Secretary of Agriculture to carry out this 
                        paragraph--
                                    ``(I) not later than 30 days after 
                                the date of enactment of this Act, 
                                $10,000,000; and
                                    ``(II) on October 1, 2002, and each 
                                October 1 thereafter through October 1, 
                                2005, $30,000,000.
                            ``(ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, shall 
                        accept, and shall use to carry out this section 
                        the funds transferred under clause (i), without 
                        further appropriation.
                            ``(iii) Availability of funds.--Funds 
                        transferred under clause (i) shall remain 
                        available until expended.''.

SEC. 628. 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 627) is amended by adding at 
the end the following:
            ``(27) 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, with 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 2006.''.

SEC. 629. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

    Section 306A(i) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926a(i)) is amended by striking ``2002'' and inserting 
``2006''.

SEC. 630. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN TRIBES.

    Section 306C of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926c(e)) is amended by striking subsection (e) and inserting 
the following:
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there is 
        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) 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 subparagraph 
        (1)(C).''.

SEC. 631. 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 2006''.

SEC. 632. 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 ``The Secretary'' and inserting the 
        following:
                    ``(A) Grants.--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 no 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. 633. 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 
        ``2006''.

SEC. 634. 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 2006.''.

SEC. 635. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

    Section 3l0B 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) Loan guarantees for the purchase of cooperative 
        stock.--
                    ``(A) New and expanding cooperatives.--
                            ``(i) In general.--The Secretary may 
                        guarantee a loan under subsection (a) to 
                        farmers, ranchers, or cooperatives for the 
                        purpose of purchasing start-up capital stock 
                        for the expansion or creation of a cooperative 
                        venture that will process agricultural 
                        commodities or otherwise process value-added 
                        agricultural products.
                            ``(ii) Financial condition.--In determining 
                        the appropriateness of a loan guarantee under 
                        this subparagraph, the Secretary--
                                    ``(I) shall fully review the 
                                feasibility and other relevant aspects 
                                of the cooperative venture to be 
                                established;
                                    ``(II) may not require a review of 
                                the financial condition or statements 
                                of any individual farmer or rancher 
                                involved in the cooperative, other than 
                                the applicant for a guarantee under 
                                this subparagraph; and
                                    ``(III) shall base any guarantee, 
                                to the maximum extent practicable, on 
                                the merits of the cooperative venture 
                                to be established.
                            ``(iii) Collateral.--As a condition of 
                        making a loan guarantee under this 
                        subparagraph, the Secretary may not require 
                        additional collateral by a farmer or rancher, 
                        other than stock purchased or issued pursuant 
                        to the loan and guarantee of the loan.
                            ``(iv) Eligibility.--To be eligible for a 
                        loan guarantee under this subparagraph, a 
                        farmer or rancher must produce the agricultural 
                        commodity that will be processed by the 
                        cooperative.
                            ``(v) Processing contracts during initial 
                        period.--The cooperative, for which a farmer or 
                        rancher receives a guarantee to purchase stock 
                        under this subparagraph, 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.
                    ``(B) Existing cooperatives.--The Secretary may 
                guarantee a loan under subsection (a) to a farmer or 
                rancher to join a cooperative in order to sell the 
                agricultural commodities or products produced by the 
                farmer or rancher.
                    ``(C) Financial information.--Financial information 
                required by the Secretary from a farmer or rancher as a 
                condition of making a loan guarantee under this 
                paragraph shall be provided in the manner generally 
                required by commercial agricultural lenders in the 
                area.
            ``(2) Loans to cooperatives.--
                    ``(A) In general.--The Secretary may make or 
                guarantee a loan under subsection (a) to a cooperative 
                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.
                    ``(B) Refinancing.--A cooperative organization 
                owned by farmers or ranchers that is eligible for a 
                business and industry loan under made or guaranteed 
                under subsection (a) shall be eligible to refinance an 
                existing 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 has 
                                not been converted, with respect to the 
                                existing loan; and
                            ``(ii) there is adequate security or full 
                        collateral for the refinanced loan.
            ``(3) Business and industry loan appraisals.--The Secretary 
        may require that any appraisal made in connection with a 
        business and industry loan made or guaranteed under subsection 
        (a) 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.
            ``(4) Fees.--The Secretary may assess a 1-time fee for any 
        loan guaranteed under subsection (a) in an amount that does not 
        exceed 2 percent of the guaranteed principal portion of the 
        loan.''.

SEC. 636. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) (as amended by section 626(b)) is amended by adding at the 
end the following:
    ``(i) Value-Added Intermediary Relending Program.--
            ``(1) In general.--In accordance with this subsection, the 
        Secretary shall make loans under the terms and conditions of 
        the intermediary relending program established under section 
        1323(b)(2)(C) of the Food Security Act of 1985 (7 U.S.C. 1932 
        note; Public Law 99-198).
            ``(2) Loans.--Using funds made available to carry out this 
        subsection, the Secretary shall make loans to eligible 
        intermediaries to make loans to ultimate recipients, under the 
        terms and conditions of the intermediary relending program, for 
        projects to establish, enlarge, and operate enterprises that 
        add value to agricultural commodities and products of 
        agricultural commodities.
            ``(3) Eligible intermediaries.--Intermediaries that are 
        eligible to receive loans under paragraph (2) shall include 
        State agencies.
            ``(4) Preference for bioenergy projects.--In making loans 
        using loan funds made available under paragraph (2), an 
        eligible intermediary shall give preference to bioenergy 
        projects in accordance with regulations promulgated by the 
        Secretary.
            ``(5) Composition of capital.--The capital for a project 
        carried out by an ultimate recipient and assisted with loan 
        funds made available under paragraph (2) shall be comprised 
        of--
                    ``(A) not more than 15 percent of the total cost of 
                a project; and
                    ``(B) not less than 50 percent of the equity funds 
                provided by agricultural producers.
            ``(6) Loan conditions.--
                    ``(A) Terms of loans.--A loan made to an 
                intermediary using loan funds made available under 
                paragraph (2) shall have a term of not to exceed 30 
                years.
                    ``(B) Interest.--The interest rate on such a loan 
                shall be--
                            ``(i) in the case of each of the first 2 
                        years of the loan period, 0 percent; and
                            ``(ii) in the case of each of the remaining 
                        years of the loan period, 2 percent.
            ``(7) Limitations on amount of loan funds provided.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an intermediary or ultimate recipient 
                shall be eligible to receive not more than $2,000,000 
                of the loan funds made available under paragraph (2).
                    ``(B) State agencies.--Subparagraph (A) shall not 
                apply in the case of a State agency with respect to 
                loan funds provided to the State agency as an 
                intermediary.
            ``(8) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $15,000,000 for 
        each of fiscal years 2003 through 2006.''.

SEC. 637. 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 508) 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. 638. 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 526) 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 $100,000 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. 639. 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 
                a city, town, or unincorporated area that has a 
                population of 50,000 inhabitants or less, other than an 
                urbanized area immediately adjacent to a city, town, or 
                unincorporated area that has a population in excess of 
                50,000 inhabitants.
                    ``(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) and (2) 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), and 
                (21) 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 50,000 inhabitants.
                    ``(D) Business and industry direct and guaranteed 
                loans.--For the purpose of business and industry direct 
                and guaranteed loans under section 310B(a)(1), the 
                terms `rural' and `rural area' mean any area other than 
                a city or town that has a population of greater than 
                50,000 inhabitants and the immediately adjacent 
                urbanized area of such city or town.
                    ``(E) Multijurisdictional regional planning 
                organizations; national rural development 
                partnership.--In sections 306(a)(23) and 377, 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.
                    ``(F) Rural entrepreneurs and microenterprise 
                assistance program; national rural cooperative and 
                business equity fund; rural business investment 
                program.--In section 378 and subtitles G and 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. 640. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (as 
amended by section 612) is amended by adding at the end the following:

``SEC. 378. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Economically disadvantaged microentrepreneur.--The 
        term `economically disadvantaged microentrepreneur' means an 
        owner, majority owner, or developer of a microenterprise that 
        has the ability to compete in the private sector but has been 
        impaired due to diminished capital and credit opportunities, as 
        compared to other microentrepreneurs in the industry.
            ``(2) 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).
            ``(3) Intermediary.--The term `intermediary' means a 
        private, nonprofit entity that provides assistance--
                    ``(A) to a microenterprise development 
                organization; or
                    ``(B) for a microenterprise development program.
            ``(4) Low-income individual.--The term `low-income 
        individual' means an individual with an income (adjusted for 
        family size) of not more than the greater of--
                    ``(A) 80 percent of median income of an area; or
                    ``(B) 80 percent of the statewide nonmetropolitan 
                area median income.
            ``(5) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $35,000 provided to a 
        rural entrepreneur.
            ``(6) Microenterpise.--The term `microenterprise' means a 
        sole proprietorship, joint enterprise, limited liability 
        company, partnership, corporation, or cooperative that--
                    ``(A) has 5 or fewer employees; and
                    ``(B) is unable to obtain sufficient credit, 
                equity, or banking services elsewhere, as determined by 
                the Secretary.
            ``(7) Microenterprise development organization.--
                    ``(A) In general.--The term `microenterprise 
                development organization' means a nonprofit entity that 
                provides training and technical assistance to rural 
                entrepreneurs and access to capital or another service 
                described in subsection (c) to rural entrepreneurs.
                    ``(B) Inclusions.--The term `microenterprise 
                development organization' includes an organization 
                described in subparagraph (A) with a demonstrated 
                record of delivering services to economically 
                disadvantaged microentrepreneurs.
            ``(8) Microenterprise development program.--The term 
        `microenterprise development organization' means a program 
        administered by a organization serving a rural area.
            ``(9) Microentrepreneur.--The term `microentrepreneur' 
        means the owner, operator, or developer of a microenterprise.
            ``(10) Program.--The term `program' means the rural 
        entrepreneur and microenterprise program established under 
        subsection (b)(1).
            ``(11) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) a microenterprise development organization or 
                microenterprise development program that has a 
                demonstrated record of delivering microenterprise 
                services to rural entrepreneurs, as demonstrated by the 
                development of an effective plan of action and the 
                possession of necessary resources to deliver 
                microenterprise services to rural entrepreneurs 
                effectively, as determined by the Secretary;
                    ``(B) an intermediary that has a demonstrated 
                record of delivery assistance to microenterprise 
                development organizations or microenterprise 
                development programs;
                    ``(C) a microenterprise development organization or 
                microenterprise development program that--
                            ``(i) serves rural entrepreneurs; and
                            ``(ii) enters into an agreement with a 
                        local community, in conjunction with a State or 
                        local government or Indian tribe, to provide 
                        assistance described in subsection (c);
                    ``(D) an Indian tribe, the tribal government of 
                which certifies to the Secretary that no 
                microenterprise development organization or 
                microenterprise development program exists under the 
                jurisdiction of the Indian tribe; or
                    ``(E) a group of 2 or more organizations or Indian 
                tribes described in subparagraph (A), (B), (C), or (D) 
                that agree to act jointly as a qualified organization 
                under this section.
            ``(12) Rural capacity building service.--The term `rural 
        capacity building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization or 
                microenterprise development program; and
                    ``(B) serves rural areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other related 
                services to rural entrepreneurs.
            ``(13) Rural entrepreneur.--The term `rural entrepreneur' 
        means a microentrepreneur, or prospective microentrepreneur--
                    ``(A) the principal place of business of which is 
                in a rural area; and
                    ``(B) that is unable to obtain sufficient training, 
                technical assistance, or microcredit elsewhere, as 
                determined by the Secretary.
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Business-Cooperative 
        Service.
            ``(15) Training and technical assistance.--
                    ``(A) In general.--The term `training and technical 
                assistance' means assistance provided to rural 
                entrepreneurs to develop the skills the rural 
                entrepreneurs need to plan, market, and manage their 
                own business.
                    ``(B) Inclusions.--The term `training and technical 
                assistance' includes assistance provided for the 
                purpose of--
                            ``(i) enhancing business planning, 
                        marketing, management, or financial management 
                        skills; and
                            ``(ii) obtaining microcredit.
            ``(16) Tribal government.--The term `tribal government' 
        means the governing body of an Indian tribe.
    ``(b) Establishment.--
            ``(1) In general.--From amounts made available under 
        subsection (h), the Secretary shall establish a rural 
        entrepreneur and microenterprise program.
            ``(2) Purpose.--The purpose of the program shall be to 
        provide low- and moderate-income individuals with--
                    ``(A) the skills necessary to establish new small 
                businesses in rural areas; and
                    ``(B) continuing technical assistance as the 
                individuals begin operating the small businesses.
    ``(c) Assistance.--
            ``(1) In general.--The Secretary may make a grant under 
        this section to a qualified organization to--
                    ``(A) provide training, technical assistance, or 
                microcredit to a rural entrepreneur;
                    ``(B) provide training, operational support, or a 
                rural capacity building service to a qualified 
                organization to assist the qualified organization in 
                developing microenterprise training, technical 
                assistance, and other related services;
                    ``(C) assist in researching and developing the best 
                practices in delivering training, technical assistance, 
                and microcredit to rural entrepreneurs; and
                    ``(D) to carry out such other projects and 
                activities as the Secretary determines are consistent 
                with the purposes of this section.
            ``(2) Allocation.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), of the amount of funds made available for a fiscal 
                year to make grants under this section, the Secretary 
                shall ensure that--
                            ``(i) not less than 75 percent of funds are 
                        used to carry out activities described in 
                        paragraph (1)(A); and
                            ``(ii) not more than 25 percent of the 
                        funds are used to carry out activities 
                        described in subparagraphs (B) through (D) of 
                        paragraph (1).
                    ``(B) Limitation on grant amount.--No single 
                qualified organization may receive more than 10 percent 
                of the total funds that are made available for a fiscal 
                year to carry out this section.
                    ``(C) Administrative expenses.--Not more than 15 
                percent of assistance received by a qualified 
                organization for a fiscal year under this section may 
                be used for administrative expenses.
    ``(d) Subgrants.--Subject to such regulations as the Secretary may 
promulgate, a qualified organization that receives a grant under this 
section may use the grant to provide assistance to other qualified 
organizations, such as small or emerging qualified organizations.
    ``(e) Low-Income Individuals.--The Secretary shall ensure that not 
less than 50 percent of the grants made under this section is used to 
benefit low-income individuals identified by the Secretary, including 
individuals residing on Indian reservations.
    ``(f) Diversity.--In making grants under this section, the 
Secretary shall ensure, to the maximum extent practicable, that grant 
recipients include qualified organizations--
            ``(1) of varying sizes; and
            ``(2) that serve racially and ethnically diverse 
        populations.
    ``(g) Cost Sharing.--
            ``(1) Federal share.--The Federal share of the cost of a 
        project carried out using funds from a grant under this section 
        shall be 75 percent.
            ``(2) Form of non-federal share.--The non-Federal share of 
        the cost of a project described in paragraph (1) may be 
        provided--
                    ``(A) in cash (including through fees, grants 
                (including community development block grants), and 
                gifts); or
                    ``(B) in kind.
    ``(h) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2002, and each October 
        1 thereafter through October 1, 2005, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $10,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.

SEC. 641. RURAL SENIORS.

    (a) Interagency Coordinating Committee for Rural Seniors.--Subtitle 
D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et 
seq.) (as amended by section 640) is amended by adding at the end the 
following:

``SEC. 379. INTERAGENCY COORDINATING COMMITTEE FOR RURAL SENIORS.

    ``(a) In General.--The Secretary shall establish an interagency 
coordinating committee (referred to in this section as the `Committee') 
to examine the special problems of rural seniors.
    ``(b) Membership.--The Committee shall be comprised of--
            ``(1) the Undersecretary of Agriculture for Rural 
        Development, who shall serve as chairperson of the Committee;
            ``(2) 2 representatives of the Secretary of Health and 
        Human Services, of whom--
                    ``(A) 1 shall have expertise in the field of health 
                care; and
                    ``(B) 1 shall have expertise in the field of 
                programs under the Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.);
            ``(3) 1 representative of the Secretary of Housing and 
        Urban Development;
            ``(4) 1 representative of the Secretary of the Interior;
            ``(5) 1 representative of the Secretary of Transportation; 
        and
            ``(6) representatives of such other Federal agencies as the 
        Secretary may designate.
    ``(c) Duties.--The Committee shall--
            ``(1) study health care, transportation, technology, 
        housing, accessibility, and other areas of need of rural 
        seniors;
            ``(2) identify successful examples of senior care programs 
        in rural communities that could serve as models for other rural 
        communities; and
            ``(3) not later than 1 year after the date of enactment of 
        this section, submit to the Secretary, the Committee on 
        Agriculture of the House of Representatives, and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate 
        recommendations for legislative and administrative action.
    ``(d) Funding.--Funds available to any Federal agency may be used 
to carry out interagency activities under this section.''.
    (b) Grants for Programs for Rural Seniors.--Subtitle D of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et seq.) (as 
amended by subsection (a)) is amended by adding at the end the 
following:

``SEC. 379A. GRANTS FOR PROGRAMS FOR RURAL SENIORS.

    ``(a) In General.--The Secretary shall make grants to nonprofit 
organizations (including cooperatives) to pay the Federal share of the 
cost of programs that--
            ``(1) provide facilities, equipment, and technology for 
        seniors in a rural area; and
            ``(2) may be replicated in other rural areas.
    ``(b) Federal Share.--The Federal share of a grant under this 
section shall be not more than 20 percent of the cost of a program 
described in subsection (a).
    ``(c) Leveraging.--In selecting programs to receive grants under 
section, the Secretary shall give priority to proposals that leverage 
resources to meet multiple rural community goals.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2003 through 2006.''.
    (c) Reservation of Community Facilities Program Funds for Senior 
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 senior facilities.--
                            ``(i) In general.--For each fiscal year, 
                        not less than 12.5 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 senior 
                        facilities, or carrying out other projects that 
                        mainly benefit seniors, 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. 642. CHILDREN'S DAY CARE FACILITIES.

    Section 306(a)(19) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(19)) (as amended by section 641(c)) is amended by 
adding at the end the following:
                    ``(D) Reservation of funds for children's 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. 643. RURAL TELEWORK.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 641(b)) is amended by 
adding at the end the following:

``SEC. 379B. 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 that meets the 
        requirements of this section and such other requirements as are 
        established by the Secretary.
            ``(2) Institute.--The term `institute' means a regional 
        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 a grant 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 (4).
            ``(2) Eligible organizations.--The Secretary shall 
        establish criteria that an organization shall meet to be 
        eligible to receive a grant under this subsection.
            ``(3) Deadline for initial grant.--Not later than 1 year 
        after the date on which funds are first made available to carry 
        out this subsection, the Secretary shall make the initial grant 
        under this subsection.
            ``(4) Projects.--The institute shall use grant funds 
        obtained 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.
            ``(5) 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, 50 percent of the 
                        amount of the grant; and
                            ``(ii) during each of the fourth and fifth 
                        years of the project, 100 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) Form.--The non-Federal contributions required 
                under subparagraph (A) may be in the form of in-kind 
                contributions, including office equipment, office 
                space, and services.
    ``(c) Telework Grants.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the Secretary shall make grants to eligible entities 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) Eligible organizations.--To be eligible to receive a 
        grant under this subsection, an eligible entity shall--
                    ``(A) be a nonprofit organization or educational 
                institution in a rural area; and
                    ``(B) submit to, and receive the approval of, the 
                Secretary of an application for the grant that 
                demonstrates that the eligible entity 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, and 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 establish, expand, or operate a 
        telework location in a rural area after the date that is 2 
        years after the establishment of the telework location.
            ``(5) Maximum amount of grant.--The amount of a grant 
        provided to an eligible entity under this subsection shall not 
        exceed $500,000.
    ``(d) Applicability of Certain Federal Law.--An entity 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 2006, of which $5,000,000 shall be provided to 
establish an institute under subsection (b).''.

SEC. 644. HISTORIC BARN PRESERVATION.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 643) is amended by adding 
at the end the following:

``SEC. 379C. 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 agriculture 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 exempt from tax under section 
                        501(c)(3) of the Internal Revenue Code of 1986; 
                        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 Undersecretary of Rural Development.
    ``(b) Program.--The Secretary shall establish a historic barn 
preservation program--
            ``(1) to assist States in developing a listing 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 entity 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.
    ``(d) Funding.--There is authorized to be appropriated to carry out 
this section, $25,000,000 for the period of fiscal years 2002 through 
2006, to remain available until expended.''.

SEC. 645. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 644)) is amended by adding 
at the end the following:

``SEC. 379D. GRANTS FOR EMERGENCY 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 for the Federal share of the cost of acquiring radio 
transmitters to increase coverage of rural areas by the emergency 
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 emergency 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 cost of acquiring a radio transmitter 
described in subsection (a).
    ``(d) Authorization.--There is authorized to be appropriated to 
carry out this section $2,000,000 for each of fiscal years 2002 through 
2006.''.

SEC. 646. GRANTS FOR TRAINING FARM WORKERS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 645) is amended by adding 
at the end the following:

``SEC. 379E. GRANTS FOR TRAINING FARM WORKERS.

    ``(a) Definition of Eligible Organization.--In this section, the 
term `eligible organization' means--
            ``(1) a nonprofit organization; or
            ``(2) a consortium of nonprofit organizations, 
        agribusinesses, State and local governments, agricultural labor 
        organizations, farmer cooperatives, or community-based 
        organizations;
that has the ability to train farm workers.
    ``(b) Grants.--The Secretary shall make grants to eligible 
organizations to provide training to farm workers--
            ``(1) on the use of technology in agriculture; and
            ``(2) to develop the specialized skills necessary to 
        produce higher value crops.
    ``(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 2006.''.

SEC. 647. DELTA REGIONAL AUTHORITY.

    (a) 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) 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, may--
            ``(1) 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 382F(b)); and
            ``(2) use amounts made available to carry out this subtitle 
        to pay all or a portion of 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.''.
    (b) 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 ``2006''.
    (c) 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 ``2006''.
    (d) 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 646) is amended by adding at the end the 
following:

``SEC. 379F. 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 2006.''.
    (e) 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. 648. SEARCH GRANTS FOR SMALL COMMUNITIES.

    The Consolidated Farm and Rural Development Act (as amended by 
section 604) is amended by adding at the end the following:

           ``Subtitle J--SEARCH Grants for Small Communities

``SEC. 386A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Council.--The term `council' means an independent 
        citizens' council established by section 386B(d).
            ``(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 
                        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 Governor of the State.
            ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
        for special environmental assistance for the regulation of 
        communities and habitat awarded under section 386B(e)(3).
            ``(5) Small community.--The term `small community' means an 
        incorporated or unincorporated rural community with a 
        population of 2,500 inhabitants or less.
            ``(6) State.--The term `State' has the meaning given the 
        term in section 381A(1).

``SEC. 386B. SEARCH GRANT PROGRAM.

    ``(a) In General.--There is established the SEARCH Grant Program.
    ``(b) Application.--
            ``(1) In general.--Not later than October 1 of each fiscal 
        year, a State may submit to the Secretary an application to 
        receive a grant under subsection (c) for the fiscal year.
            ``(2) Requirements.--An application under paragraph (1) 
        shall contain--
                    ``(A) a certification by the State that the State 
                has appointed members to the council of the State under 
                subsection (c)(2)(C); and
                    ``(B) such information as the Secretary may 
                reasonably require.
    ``(c) Grants to States.--
            ``(1) In general.--Not later than 60 days after the date on 
        which the Office of Management and Budget apportions any 
        amounts made available under this subtitle, for each fiscal 
        year after the date of enactment of this subtitle, the 
        Secretary shall, on request by a State--
                    ``(A) determine whether any application submitted 
                by the State under subsection (b) meets the 
                requirements of subsection (b)(2); and
                    ``(B) subject to paragraph (2), subsection 
                (e)(4)(B)(ii), and section 386D(b), if the Secretary 
                determines that the application meets the requirements 
                of subsection (b)(2), award a grant of not to exceed 
                $1,000,000 to the State, to be used by the council of 
                the State to award SEARCH grants under subsection (e).
            ``(2) Grants to certain states.--The aggregate amount of 
        grants awarded to States other than Alaska, Hawaii, or 1 of the 
        48 contiguous States, under this subsection shall not exceed 
        $1,000,000 for any fiscal year.
    ``(d) Independent Citizens' Council.--
            ``(1) Establishment.--There is established in each State an 
        independent citizens' council to carry out the duties described 
        in this section.
            ``(2) Composition.--
                    ``(A) In general.--Each council shall be composed 
                of 9 members, appointed by the Governor of the State.
                    ``(B) Representation; residence.--Each member of a 
                council shall--
                            ``(i) represent an individual region of the 
                        State, as determined by the Governor of the 
                        State in which the council is established;
                            ``(ii) reside in a small community of the 
                        State; and
                            ``(iii) be representative of the 
                        populations of the State.
                    ``(C) Appointment.--Before a State receives funds 
                under this subtitle, the State shall appoint members to 
                the council for the fiscal year, except that not more 
                than 1 member shall be an agent, employee, or official 
                of the State government.
                    ``(D) Chairperson.--Each council shall select a 
                chairperson from among the members of the council, 
                except that a member who is an agent, employee, or 
                official of the State government shall not serve as 
                chairperson.
                    ``(E) Federal representation.--
                            ``(i) In general.--An officer, employee, or 
                        agent of the Federal Government may participate 
                        in the activities of the council--
                                    ``(I) in an advisory capacity; and
                                    ``(II) at the invitation of the 
                                council.
                            ``(ii) Rural development state directors.--
                        On the request of the council of a State, the 
                        State Director for Rural Development of the 
                        State shall provide advice and consultation to 
                        the council.
            ``(3) SEARCH grants.--
                    ``(A) In general.--Each council shall review 
                applications for, and recommend awards of, SEARCH 
                grants to small communities that meet the eligibility 
                criteria under subsection (c).
                    ``(B) Recommendations.--In awarding a SEARCH grant, 
                a State--
                            ``(i) shall follow the recommendations of 
                        the council of the State;
                            ``(ii) shall award the funds for any 
                        recommended environmental project in a timely 
                        and expeditious manner; and
                            ``(iii) shall not award a SEARCH grant to a 
                        grantee or project in violation of any law of 
                        the State (including a regulation).
                    ``(C) No matching requirement.--A small community 
                that receives a SEARCH grant under this section shall 
                not be required to provide matching funds.
    ``(e) SEARCH Grants for Small Communities.--
            ``(1) 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--
                    ``(A) needs funds to carry out initial feasibility 
                or environmental studies before applying to traditional 
                funding sources; or
                    ``(B) demonstrates, to the satisfaction of the 
                council, that the small community has been unable to 
                obtain sufficient funding from traditional funding 
                sources.
            ``(2) Application.--
                    ``(A) Date.--The council shall establish such 
                deadline by which small communities shall submit 
                applications for grants under this section as will 
                permit the council adequate time to review and make 
                recommendations relating to the applications.
                    ``(B) Location of application.--A small community 
                shall submit an application described in subparagraph 
                (A) to the council in the State in which the small 
                community is located.
                    ``(C) Content of application.--An application 
                described in subparagraph (A) shall include--
                            ``(i) a description of the proposed 
                        environmental project (including an explanation 
                        of how the project would assist the small 
                        community in complying with an environmental 
                        law (including a regulation));
                            ``(ii) an explanation of why the project is 
                        important to the small community;
                            ``(iii) a description of all actions taken 
                        with respect to the project, including a 
                        description of any attempt to secure funding 
                        and a description of demonstrated need for 
                        funding for the project, as of the date of the 
                        application; and
                            ``(iv) a SEARCH grant application form 
                        provided by the council, completed and with all 
                        required supporting documentation.
            ``(3) Review and recommendation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than March 5 of each fiscal 
                year, each council shall--
                            ``(i) review all applications received 
                        under paragraph (2); and
                            ``(ii) recommend for award SEARCH grants to 
                        small communities based on--
                                    ``(I) an evaluation of the 
                                eligibility criteria under paragraph 
                                (1); and
                                    ``(II) the content of the 
                                application.
                    ``(B) Extension of deadline.--The State may extend 
                the deadline described in subparagraph (A) by not more 
                than 10 days in a case in which the receipt of 
                recommendations from a council under subparagraph 
                (A)(ii) is delayed because of circumstances beyond the 
                control of the council, as determined by the State.
            ``(4) Unexpended funds.--
                    ``(A) In general.--If, for any fiscal year, any 
                unexpended funds remain after SEARCH grants are awarded 
                under subsection (d)(3)(B), the council may repeat the 
                application and review process so that any remaining 
                funds may be recommended for award, and awarded, not 
                later than July 30 of the fiscal year.
                    ``(B) Retention of funds.--
                            ``(i) In general.--Any unexpended funds 
                        that are not awarded under subsection (d)(3)(B) 
                        or subparagraph (A) shall be retained by the 
                        State for award during the following fiscal 
                        year.
                            ``(ii) Limitation.--A State that 
                        accumulates a balance of unexpended funds 
                        described in clause (i) of more than $3,000,000 
                        shall be ineligible to apply for additional 
                        funds for SEARCH grants until such time as the 
                        State expends the portion of the balance that 
                        exceeds $3,000,000.

``SEC. 386C. REPORT.

    ``Not later than September 1 of the first fiscal year for which a 
SEARCH grant is awarded by a council, and annually thereafter, the 
council shall submit to the Secretary 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 fiscal year before the fiscal year in which the 
        report is submitted.

``SEC. 386D. FUNDING.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out section 386B(c) $51,000,000, of which not to 
exceed $1,000,000 shall be used to make grants under section 
386B(c)(2).
    ``(b) Actual Appropriation.--If funds to carry out section 386B(c) 
are made available for a fiscal year in an amount that is less than the 
amount authorized under subsection (a) for the fiscal year, the 
appropriated funds shall be divided equally among the 50 States.
    ``(c) Unused Funds.--If, for any fiscal year, a State does not 
apply, or does not qualify, to receive funds under section 386B(b), the 
funds that would have been made available to the State under section 
386B(c) on submission by the State of a successful application under 
section 386B(b) shall be redistributed for award under this subtitle 
among States, the councils of which awarded 1 or more SEARCH grants 
during the preceding fiscal year.
    ``(d) Other Expenses.--There are authorized to be appropriated such 
sums as are necessary to carry out the provisions of this subtitle 
(other than section 386B(c)).''.

SEC. 649. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    The Consolidated Farm and Rural Development Act (as amended by 
section 648) is amended by adding at the end the following:

         ``Subtitle K--Northern Great Plains Regional Authority

``SEC. 387A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authority.--The term `Authority' means the Northern 
        Great Plains Regional Authority established by section 387B.
            ``(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. 387B. 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 387I.
            ``(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. 387C. 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 387I--
            ``(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.
            ``(3) Federal share in grant programs.--Notwithstanding any 
        provision of law limiting the Federal share in any grant 
        program, funds appropriated to carry out this section may be 
        used to increase a Federal share in a grant program, as the 
        Authority determines appropriate.

``SEC. 387D. 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, may--
            ``(1) 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 387F(b)); and
            ``(2) use amounts made available to carry out this subtitle 
        to pay all or a portion of 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 387I--
                            ``(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. 387E. 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. 387F. 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 387M 
        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 387D(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 this subsection, 
        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 387E(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 387M for transportation, 
telecommunication, and basic public infrastructure projects authorized 
under paragraphs (1) and (3) of section 387C(a).

``SEC. 387G. 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 
387B(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. 387H. 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. 387I. 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 387H;
            ``(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 387B(c) shall be required for approval of the 
application.

``SEC. 387J. 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. 387K. 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. 387L. 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. 387M. 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 2006, 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. 387N. TERMINATION OF AUTHORITY.

    ``The authority provided by this subtitle terminates effective 
October 1, 2006.''.

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

SEC. 651. 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.), 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 greatest return on 
        investment.
    (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 into an 
        account in the Treasury, and shall remain available to the 
        Secretary until expended, without further appropriation, to 
        pay--
                    (A) any outstanding claims 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) The following provisions are repealed:
                    (A) Section 730 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 5902 note; 
                Public Law 104-127).
                    (B) Section 9101(3)(Q) of title 31, United States 
                Code.
            (2) Section 401(c) of the Agricultural Research, Education, 
        and Extension Reform Act of 1998 (7 U.S.C. 7621(c)) is amended 
        by striking paragraph (1) and inserting the following:
            ``(1) Critical emerging issues.--Subject to paragraph (2), 
        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 issues 
        related to--
                    ``(A) future food production;
                    ``(B) environmental quality and natural resource 
                management; or
                    ``(C) farm income.''.
            (3) Section 793(c)(1)(A)(ii)(II) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 
        2204f(c)(1)(A)(ii)(II)) is amended by striking ``subtitle G of 
        title XVI and''.

SEC. 652. 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 ``2006''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``1997'' and inserting 
``2006''.

             Subtitle E--Rural Electrification Act of 1936

SEC. 661. 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 for electrification or telephone projects 
eligible for assistance under this Act, including the refinancing of 
bonds or notes issued for such projects.
    ``(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 is not 
                of reasonable and sufficient quality; or
                    ``(C) the lender has not provided sufficient 
                evidence that the proceeds of the bond or note are used 
                for eligible projects 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 if the number of such guarantees 
        exceeds 5 per year.
            ``(3) Department opinion.--On the timely request of an 
        eligible 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, 2006.''.
    (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. 662. EXPANSION OF 911 ACCESS.

    Title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et 
seq.) is amended by adding 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 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 911 access in underserved rural areas.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

SEC. 701. 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. 702. 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 ``2006''.

SEC. 703. 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 
        ``2006''.

SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1417 (7 U.S.C. 3152) 
the following:

``SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

    ``(a) Authority.--The Secretary may award grants to eligible 
institutions on a competitive basis for the construction, acquisition, 
modernization, renovation, alteration, and remodeling of food and 
agricultural research facilities such as buildings, laboratories, and 
other capital facilities (including acquisition of fixtures and 
equipment) in accordance with this section.
    ``(b) Eligible Institutions.--The following institutions are 
eligible to compete for grants under subsection (a):
            ``(1) A State cooperative institution.
            ``(2) A Hispanic-serving institution.
    ``(c) Criteria for Award.--The Secretary shall award grants to 
support the national research purposes specified in section 1402 in a 
manner determined by the Secretary.
    ``(d) Matching.--
            ``(1) In general.--The Secretary may establish such 
        matching requirements for grants under subsection (a) as the 
        Secretary considers appropriate.
            ``(2) Form of match.--Matching requirements established by 
        the Secretary may be met with unreimbursed indirect costs and 
        in-kind contributions.
            ``(3) Evaluation preference.--The Secretary may include an 
        evaluation preference for projects for which the applicant 
        proposes funds for the direct costs of a project to meet the 
        required match.
    ``(e) Targeted Institutions.--The Secretary may determine that a 
portion of funds made available to carry out this section shall be 
targeted to particular eligible institutions to enhance the capacity of 
the eligible institutions to carry out research.
    ``(f) Administration.--
            ``(1) Regulations.--The Secretary shall promulgate such 
        regulations as are necessary to carry out this section.
            ``(2) States with more than 1 eligible institution.--In a 
        State having more than 1 eligible institution, the Secretary 
        shall establish procedures in accordance with the purposes 
        specified in section 1402 to ensure that the facility proposals 
        of the eligible institutions in the State provide for a 
        coordinated food and agricultural research program among 
        eligible institutions in the State.
    ``(g) Applicability of the Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII of the 
Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not 
apply to a panel or board created solely for the purpose of reviewing 
applications or proposals submitted under this section.
    ``(h) Advisory Board.--In carrying out this section, the Secretary 
shall consult with the Advisory Board.
    ``(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 2006.''.

SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
              ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
              COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 706. POLICY RESEARCH CENTERS.

    Section 1419A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
            (1) in subsection (c)(3), by striking ``collect and 
        analyze'' and inserting ``collect, analyze, and disseminate''; 
        and
            (2) in subsection (d), by striking ``2002'' and inserting 
        ``2006''.

SEC. 707. 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 ``2006''.

SEC. 708. 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 ``2006''.

SEC. 709. 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 ``2006''.

SEC. 710. 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 in the 
first sentence by striking ``2002'' and inserting ``2006''.

SEC. 711. 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 ``2006''.

SEC. 712. EDUCATION GRANTS PROGRAMS FOR 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 ``2006''.

SEC. 713. 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 ``2006''.

SEC. 714. INDIRECT COSTS.

    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'';
            (2) by striking ``19 percent'' and all that follows and 
        inserting ``the negotiated indirect cost rate established for 
        an institution by the cognizant Federal audit agency for the 
        institution.''; and
            (3) 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. 715. 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 is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2002 through 2006.''.

SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.

    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 
        ``$1,500,000,000 for each of fiscal years 2002 through 2006''; 
        and
            (2) in subsection (b), by striking ``2002'' and inserting 
        ``2006''.

SEC. 717. EXTENSION EDUCATION.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``$420,000,000'' and all that follows and inserting the following: 
``$500,000,000 for each of fiscal years 2002 through 2006.''.

SEC. 718. 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. 719. 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) Transfer of Funds.--
            ``(1) Secretary.--The Secretary may transfer funds to, or 
        receive funds from, a cooperating Federal agency for the 
        purpose of carrying out the joint request for proposals, making 
        awards, or administering grants.
            ``(2) Cooperating agency.--The cooperating Federal agency 
        may transfer funds to, or receive funds from, the Secretary for 
        the purpose of carrying out the joint request for proposals, 
        making awards, or administering grants.
            ``(3) Limitations.--Funds transferred or received under 
        this subsection shall be--
                    ``(A) used only in accordance with the laws 
                authorizing the appropriation of the funds; and
                    ``(B) made available by grant only to recipients 
                that are eligible to receive the grant under the laws.
    ``(c) 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.
    ``(d) Regulations; Rates.--The Secretary and a cooperating Federal 
agency may agree to make applicable to recipients of grants--
            ``(1) the post-award grant administration regulations and 
        indirect cost rates applicable to recipients of grants from the 
        Secretary; or
            ``(2) the post-award grant administration regulations and 
        indirect cost rates applicable to recipients of grants from the 
        cooperating Federal agency.
    ``(e) 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. 720. 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 ``2006''.

SEC. 721. AQUACULTURE.

    Section 1477 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended in the first 
sentence by striking ``2002'' and inserting ``2006''.

SEC. 722. 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 ``2006''.

SEC. 723. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

    (a) In General.--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

            ``CHAPTER 1--AGRICULTURE INFRASTRUCTURE SECURITY

``SEC. 1484. DEFINITIONS.

    ``In this chapter:
            ``(1) Agricultural research facility.--The term 
        `agricultural research facility' means a facility--
                    ``(A) at which agricultural research is regularly 
                carried out or proposed to be carried out; and
                    ``(B) that is--
                            ``(i)(I) an Agricultural Research Service 
                        facility;
                            ``(II) a Forest Service facility; or
                            ``(III) an Animal and Plant Health 
                        Inspection Service facility;
                            ``(ii) a Federal agricultural facility in 
                        the process of being planned or being 
                        constructed; or
                            ``(iii) any other facility under the full 
                        control of the Secretary.
            ``(2) Commission.--The term `Commission' means the 
        Agriculture Infrastructure Security Commission established 
        under section 1486.
            ``(2) Fund.--The term `Fund' means the Agriculture 
        Infrastructure Security Fund Account established by section 
        1485.

``SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States an account, to be known as the `Agriculture 
Infrastructure Security Fund Account', consisting of funds appropriated 
to, or deposited into, the Fund under subsection (c).
    ``(b) Purposes.--The purposes of the Fund are to provide funding to 
protect and strengthen the Federal food safety and agricultural 
infrastructure that--
            ``(1) safeguards against animal and plant diseases and 
        pests;
            ``(2) ensures the safety of the food supply; and
            ``(3) ensures sound science in support of food and 
        agricultural policy.
    ``(c) Deposits Into Fund.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Fund such sums as are necessary for each of fiscal years 
        2002 through 2006.
            ``(2) Contributions and other proceeds.--The Secretary 
        shall deposit into the Fund any funds received--
                    ``(A) as proceeds from the sale of assets under 
                subsection (e); or
                    ``(B) as gifts under subsection (f).
            ``(3) Availability of funds.--Amounts in the Fund shall 
        remain available until expended without further Act of 
        appropriation.
            ``(4) Additional funds.--Funds made available under 
        paragraph (1) shall be in addition to funds otherwise available 
        to the Secretary to receive gifts and bequests or dispose of 
        property (real, personal, or intangible).
    ``(d) Expenditures From Fund.--
            ``(1) In general.--Subject to paragraph (2), on request by 
        the Secretary, the Secretary of the Treasury shall transfer 
        from the Fund to the Secretary, and the Secretary shall accept 
        and use without further appropriation, such amounts as the 
        Secretary determines to be necessary to pay--
                    ``(A) the costs of planning, design, development, 
                construction, acquisition, modernization, leasing, and 
                disposal of facilities, equipment, and technology used 
                by the Department in carrying out programs relating to 
                the purposes specified in subsection (b), 
                notwithstanding the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 471 et seq.) or any 
                other law that prescribes procedures for the 
                procurement, use, or disposal of property or services 
                by a Federal agency;
                    ``(B) the costs of specialized services relating to 
                the purposes specified in subsection (b);
                    ``(C) the costs of cooperative arrangements 
                authorized to be entered into (notwithstanding chapter 
                63 of title 31, United States Code) with State, local 
                and tribal governments, and other public and private 
                entities, to carry out programs relating to the 
                purposes specified in subsection (b); and
                    ``(D) administrative costs incurred in carrying out 
                subparagraphs (A) through (C).
            ``(2) Limitations.--
                    ``(A) Federal employees.--Amounts in the Fund shall 
                not be used to create any new full or part-time 
                permanent Federal employee position.
                    ``(B) Administrative expenses.--Beginning in fiscal 
                year 2003, not more than 1 percent of the amounts in 
                the Fund on October 1 of a fiscal year may be used in 
                the fiscal year for administrative expenses of the 
                Secretary in carrying out the activities described in 
                paragraph (1).
    ``(e) Sale of Assets.--
            ``(1) Disposal authority.--Notwithstanding the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 471 
        et seq.), the Secretary by sale may dispose of all or any part 
        of any right or title in land (excluding National Forest System 
        land), facilities, or equipment in the full control of the 
        Department used for the purposes specified in subsection (b).
            ``(2) Disposition of proceeds.--Proceeds from any sale 
        conducted by the Secretary under paragraph (1) shall be 
        deposited into the Fund in accordance with subsection 
        (c)(2)(A).
    ``(f) Gifts.--
            ``(1) In general.--To carry out the purposes specified in 
        subsection (b), the Secretary may accept gifts and bequests of 
        funds, property (real, personal, and intangible), equipment, 
        services, and other in-kind contributions from State, local, 
        and tribal governments, colleges and universities, individuals, 
        and other public and private entities.
            ``(2) Prohibited source.--
                    ``(A) In general.--For the purposes of this 
                subsection, the Secretary shall not consider a State or 
                local government, Indian tribe (as defined in section 4 
                of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)), other public entity, 
                or college or university, to be a prohibited source 
                under any Department rule or policy that prohibits the 
                acceptance of gifts from individuals and entities that 
                do business with the Department.
                    ``(B) Exception.--Notwithstanding any Department 
                rule or policy that prohibits the acceptance of gifts 
                by the Department from individuals or private entities 
                that do business with the Department or that, for any 
                other reason, are considered to be prohibited sources, 
                the Secretary may accept gifts under this subsection if 
                the Secretary determines that it is in the public 
                interest to accept the gift.
            ``(3) Disposition of gifts.--The Secretary shall deposit 
        any gift of funds under this subsection into the Fund in 
        accordance with subsection (c)(2)(B).

``SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.

    ``(a) Establishment.--The Secretary shall establish a commission to 
be known as the `Agriculture Infrastructure Security Commission' to 
carry out the duties described in subsection (f).
    ``(b) Membership.--
            ``(1) Appointment.--
                    ``(A) Voting members.--
                            ``(i) In general.--The Commission shall be 
                        composed of 15 voting members, appointed by the 
                        Secretary in accordance with clause (ii), based 
                        on nominations solicited from the public.
                            ``(ii) Qualifications.--The Secretary shall 
                        appoint members that--
                                    ``(I) represent a balance of the 
                                public and private sectors; and
                                    ``(II) have combined expertise in--
                                            ``(aa) facilities 
                                        development, modernization, 
                                        construction, security, 
                                        consolidation, and closure;
                                            ``(bb) plant diseases and 
                                        pests;
                                            ``(cc) animal diseases and 
                                        pests;
                                            ``(dd) food safety;
                                            ``(ee) biosecurity;
                                            ``(ff) the needs of farmers 
                                        and ranchers;
                                            ``(gg) public health;
                                            ``(hh) State, local, and 
                                        tribal government; and
                                            ``(ii) any other area 
                                        related to agriculture 
                                        infrastructure security, as 
                                        determined by the Secretary.
                    ``(B) Nonvoting members.--The Commission shall be 
                composed of the following nonvoting members:
                            ``(i) The Secretary.
                            ``(ii) 4 representatives appointed by the 
                        Secretary of Health and Human Services, 1 each 
                        from--
                                    ``(I) the Public Health Service;
                                    ``(II) the National Institutes of 
                                Health;
                                    ``(III) the Centers for Disease 
                                Control and Prevention; and
                                    ``(IV) the Food and Drug 
                                Administration.
                            ``(iii) 1 representative appointed by the 
                        Attorney General.
                            ``(iv) 1 representative appointed by the 
                        Director of Homeland Security.
                            ``(v) Not more than 4 representatives of 
                        the Department appointed by the Secretary.
            ``(2) Date of appointment.--The appointment of each member 
        of the Commission shall be made not later than 90 days after 
        the date of enactment of this subtitle.
    ``(c) Term; Vacancies.--
            ``(1) Term.--The term of office of a member of the 
        Commission shall be 4 years, except that the members initially 
        appointed shall be appointed to serve staggered terms (as 
        determined by the Secretary).
            ``(2) Vacancies.--A vacancy on the Commission shall be 
        filled in the same manner as the original appointment was made.
    ``(d) Meetings.--
            ``(1) In general.--The Commission shall meet at the call 
        of--
                    ``(A) the Chairperson;
                    ``(B) a majority of the voting members of the 
                Commission; or
                    ``(C) the Secretary.
            ``(2) Federal advisory committee act.--
                    ``(A) In general.--The Federal Advisory Committee 
                Act (5 U.S.C. App.) and title XVIII of the Food and 
                Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall 
                not apply to the Commission.
                    ``(B) Open meetings; records.--Subject to 
                subparagraph (C)--
                            ``(i) a meeting of the Commission shall 
                        be--
                                    ``(I) publicly announced in 
                                advance; and
                                    ``(II) open to the public; and
                            ``(ii) the Commission shall--
                                    ``(I) keep detailed minutes of each 
                                meeting and other appropriate records 
                                of the activities of the Commission; 
                                and
                                    ``(II) make the minutes and records 
                                available to the public on request.
                    ``(C) Exception.--When required in the interest of 
                national security--
                            ``(i) the Chairperson may choose not to 
                        give public notice of a meeting;
                            ``(ii) the Chairperson may close all or a 
                        portion of any meeting to the public, and the 
                        minutes of the meeting, or portion of a 
                        meeting, shall not be made available to the 
                        public; and
                            ``(iii) by majority vote, the Commission 
                        may redact the minutes of a meeting that was 
                        open to the public.
    ``(e) Chairperson.--The Secretary shall select a Chairperson from 
among the voting members of the Commission.
    ``(f) Duties.--
            ``(1) In general.--The Commission shall--
                    ``(A) advise the Secretary on the uses of the Fund;
                    ``(B) review all agricultural research facilities 
                for--
                            ``(i) research importance; and
                            ``(ii) importance to agriculture 
                        infrastructure security;
                    ``(C) identify any agricultural research facility 
                that should be closed, realigned, consolidated, or 
                modernized to carry out the research agenda of the 
                Secretary and protect agriculture infrastructure 
                security;
                    ``(D) develop recommendations concerning 
                agricultural research facilities; and
                    ``(E)(i) evaluate the agricultural research 
                facilities acquisition and modernization system 
                (including acquisitions by gift, grant, or any other 
                form of agreement) used by the Department; and
                    ``(ii) based on the evaluation, recommend 
                improvements to the system.
            ``(2) Strategic plan.--To assist the Commission in carrying 
        out the duties described in paragraph (1), the Commission shall 
        use the 10-year strategic plan prepared by the Strategic 
        Planning Task Force established under section 4 of the Research 
        Facilities Act (7 U.S.C. 390b).
            ``(3) Report.--
                    ``(A) In general.--Not later than 240 days after 
                the date of enactment of this subtitle, and each June 1 
                thereafter, the Commission shall prepare and submit to 
                the Secretary, the Committee on Agriculture and the 
                Committee on Appropriations of the House of 
                Representatives, and the Committee on Agriculture, 
                Nutrition, and Forestry and the Committee on 
                Appropriations of the Senate, a report on the findings 
                and recommendations under paragraph (1).
                    ``(B) Written response.--Not later than 90 days 
                after the date of receipt of a report from the 
                Commission under subparagraph (A), the Secretary shall 
                provide to the Commission a written response concerning 
                the manner and extent to which the Secretary will 
                implement the recommendations in the report.
                    ``(C) Public availability.--
                            ``(i) In general.--Subject to clause (ii), 
                        the report submitted by the Commission, and any 
                        response made by the Secretary, under this 
                        subsection shall be available to the public.
                            ``(ii) Exception.--
                                    ``(I) National security.--The 
                                Commission or the Secretary may 
                                determine that any report or response, 
                                or any portion of a report or response, 
                                shall not be publicly released in the 
                                interest of national security.
                                    ``(II) Freedom of information 
                                act.--On such a determination, the 
                                report or response, a portion of the 
                                report or response, or any records 
                                relating to the report or response, 
                                shall not be released under section 552 
                                of title 5, United States Code.
    ``(g) Commission Personnel Matters.--
            ``(1) Compensation of members.--
                    ``(A) Non-federal employees.--A voting member of 
                the Commission who is not a regular full-time employee 
                of the Federal Government shall, while attending 
                meetings of the Commission or otherwise engaged in the 
                business of the Commission (including travel time), be 
                entitled to receive compensation at a rate fixed by the 
                Secretary, but not exceeding the daily equivalent of 
                the annual rate specified at the time of such service 
                under GS-15 of the General Schedule established under 
                section 5332 of title 5, United States Code.
                    ``(B) Travel expenses.--A voting 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.--The Secretary shall provide the Commission 
        with any personnel and other resources as the Secretary 
        determines appropriate.
    ``(h) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section such 
        sums as are necessary for each of fiscal years 2002 through 
        2006.
            ``(2) Agriculture infrastructure security fund.--For the 
        purpose of establishing the Commission, the Secretary shall use 
        such sums from the Fund as the Secretary determines to be 
        appropriate.

                ``CHAPTER 2--OTHER BIOSECURITY PROGRAMS

``SEC. 1487. 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 2006.
    ``(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) necessary--
            ``(1) to reduce the vulnerability of the United States food 
        and agricultural system to chemical or biological attack;
            ``(2) to continue joint research initiatives between the 
        Agricultural Research Service, universities, and industry on 
        counterbioterrorism efforts (including continued funding of a 
        consortium in existence on the date of enactment of this 
        subtitle of which the Agricultural Research Service and 
        universities are members);
            ``(3) to make competitive grants to universities and 
        qualified research institutions for research on 
        counterbioterrorism; and
            ``(4) to counter or otherwise respond to chemical or 
        biological attack.

``SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FACILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Construction.--The term `construction' includes--
                    ``(A) the construction of new buildings; and
                    ``(B) the expansion, renovation, remodeling, and 
                alteration of existing buildings.
            ``(2) Cost.--
                    ``(A) In general.--The term `cost' means any 
                construction cost, including architects' fees.
                    ``(B) Exclusions.--The term `cost' does not include 
                the cost of--
                            ``(i) acquiring land or an interest in 
                        land; or
                            ``(ii) constructing any offsite 
                        improvement.
            ``(3) Eligible entity.--The term `eligible entity' means a 
        college or university that--
                    ``(A) is 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)); and
                    ``(B) as determined by the Secretary, has--
                            ``(i) demonstrated expertise in the area of 
                        animal and plant diseases;
                            ``(ii) substantial animal and plant 
                        diagnostic laboratories; and
                            ``(iii) well-established working 
                        relationships with--
                                    ``(I) the agricultural industry; 
                                and
                                    ``(II) farm and commodity 
                                organizations.
    ``(b) Modernization and Construction of Facilities.--
            ``(1) In general.--To enhance the security of agriculture 
        in the United States against threats posed by bioterrorism, the 
        Secretary shall make construction grants, on a competitive 
        basis, to eligible entities.
            ``(2) Limitation on grants.--An eligible entity shall not 
        receive grant funds under this section that, in any fiscal 
        year, exceed $10,000,000.
    ``(c) Requirements for Grants.--
            ``(1) In general.--The Secretary shall make a grant to an 
        eligible entity under this section only if, with respect to any 
        facility constructed using grant funds, the eligible entity--
                    ``(A) submits to the Secretary, in such form, in 
                such manner, and containing such agreements, 
                assurances, and information as the Secretary may 
                require, an application for the grant;
                    ``(B) is determined by the Secretary to be 
                competent to engage in the type of research for which 
                the facility is proposed to be constructed;
                    ``(C) provides such assurances as the Secretary 
                determines to be satisfactory that--
                            ``(i) for not less than 20 years after the 
                        date of completion of the facility, the 
                        facility shall be used for the purposes of the 
                        research for which the facility was 
                        constructed, as described in the grant 
                        application;
                            ``(ii) sufficient funds are available to 
                        pay the non-Federal share of the cost of 
                        constructing the facility;
                            ``(iii) sufficient funds will be available, 
                        as of the date of completion of the 
                        construction, for the effective use of the 
                        facility for the purposes of the research for 
                        which the facility was constructed; and
                            ``(iv) the proposed construction--
                                    ``(I) will increase the capability 
                                of the eligible entity to conduct 
                                research for which the facility was 
                                constructed; or
                                    ``(II) is necessary to improve or 
                                maintain the quality of the research of 
                                the eligible entity;
                    ``(D) meets such reasonable qualifications as may 
                be established by the Secretary with respect to--
                            ``(i) the relative scientific and technical 
                        merit of the applications, and the relative 
                        effectiveness of facilities proposed to be 
                        constructed, in expanding the quality of, and 
                        the capacity of eligible entities to carry out, 
                        biosecurity research;
                            ``(ii) the quality of the research to be 
                        carried out in each facility constructed;
                            ``(iii) the need for the research 
                        activities to be carried out within the 
                        facility as those activities relate to research 
                        needs of the United States in securing, and 
                        ensuring the safety of, the food supply of the 
                        United States;
                            ``(iv) the age and condition of existing 
                        research facilities of the eligible entity; and
                            ``(v) biosafety and biosecurity 
                        requirements necessary to protect facility 
                        staff, members of the public, and the food 
                        supply; and
                    ``(E) has demonstrated a commitment to enhancing 
                and expanding the research productivity of the eligible 
                entity.
            ``(2) Priority.--In providing grants under this section, 
        the Secretary shall give priority to an eligible entity that, 
        as determined by the Secretary, has demonstrated expertise in--
                    ``(A) animal and plant disease prevention;
                    ``(B) pathogen and toxin mitigation;
                    ``(C) cereal disease resistance;
                    ``(D) grain milling and processing;
                    ``(E) livestock production practices;
                    ``(F) vaccine development;
                    ``(G) meat processing;
                    ``(H) pathogen detection and control; or
                    ``(I) food safety.
    ``(d) Amount of Grant.--The amount of a grant awarded under this 
section shall be determined by the Secretary.
    ``(e) Federal Share.--The Federal share of the cost of any 
construction carried out using funds from a grant provided under this 
section shall not exceed 50 percent.
    ``(f) Guidelines.--Not later than 180 days after the date of 
enactment of this subtitle, the Secretary shall issue guidelines with 
respect to the provision of grants under this section.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000 for each of fiscal 
years 2003 through 2005.''.
    (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.

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

SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2002'' and 
inserting ``2006''.

SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    Section 1668 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5921) is amended--
            (1) by redesignating subsections (e) through (g) as 
        subsections (f) through (h), respectively;
            (2) by inserting after subsection (d) the following:
    ``(e) Grant Priority.--In selecting projects for which grants shall 
be made under this section, the Secretary shall give priority to public 
and private research or educational institutions and organizations the 
goals of which include--
            ``(1) formation of interdisciplinary teams to review or 
        conduct research on the environmental effects of the release of 
        new genetically modified agricultural products;
            ``(2) conduct of studies relating to biosafety of 
        genetically modified agricultural products;
            ``(3) evaluation of the cost and benefit for development of 
        an identity preservation system for genetically modified 
        agricultural products;
            ``(4) establishment of international partnerships for 
        research and education on biosafety issues; or
            ``(5) formation of interdisciplinary teams to renew and 
        conduct research on the nutritional enhancement and 
        environmental benefits of genetically modified agricultural 
        products.''; and
            (3) in subsection (h) (as redesignated by paragraph (1)), 
        by striking paragraph (2) and inserting the following:
            ``(2) Withholding of outlays for research on biotechnology 
        risk assessment.--Of the amounts of outlays made under this 
        section or any other provision of law to carry out research on 
        biotechnology (as defined and determined by the Secretary of 
        Agriculture) for any fiscal year, the Secretary of Agriculture 
        shall withhold at least 3 percent for grants for research on 
        biotechnology risk assessment on all categories identified by 
        the Secretary of Agriculture as biotechnology.''.

SEC. 733. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) electronic commerce sales in 1998 were approximately 
        $100,000,000,000 and are expected to reach $1,300,000,000,000 
        by 2003;
            (2) electronic commerce presents an enormous opportunity 
        and challenge for small businesses, especially businesses in 
        rural areas;
            (3) while infrastructure for electronic commerce is growing 
        rapidly in rural areas, small businesses will not be able to 
        take advantage of the new technology without assistance;
            (4) while electronic commerce will give businesses new 
        markets and new ways of doing business, many small businesses 
        in rural areas will have difficulty adopting appropriate 
        electronic commerce business practices and technologies;
            (5) the United States has an interest in ensuring that 
        small businesses in rural areas participate in electronic 
        commerce, to encourage success of the businesses, and to 
        promote productivity and economic growth throughout the economy 
        of the United States; and
            (6) an electronic commerce extension program should be 
        established using the nationwide county-based infrastructure 
        within the Cooperative Extension Service to help small 
        businesses throughout the United States to identify, adapt, 
        adopt, and use electronic commerce business practices and 
        technologies.
    (b) Purpose.--The purpose of this section is to establish within 
the Cooperative State Research, Education, and Extension Service of the 
Department of Agriculture a rural electronic commerce extension program 
for small businesses and microenterprises in rural areas of the United 
States.
    (c) Program.--Subtitle H of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5921 et seq.) is amended 
by adding after section 1669 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 owns 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--
            ``(1) expand and enhance electronic commerce practices and 
        technology to be used by small businesses and microenterprises 
        in rural areas;
            ``(2) disseminate information and expertise through a 
        cooperative extension service clearinghouse system in rural 
        areas;
            ``(3) disseminate management, scientific, engineering, and 
        technical information to small businesses in rural areas 
        through the extension program; and
            ``(4) use, when appropriate, the expertise, technology, and 
        capabilities of other institutions and organizations, 
        including--
                    ``(A) State and local governments;
                    ``(B) Federal departments and agencies;
                    ``(C) institutions of higher education;
                    ``(D) nonprofit organizations;
                    ``(E) small businesses and microenterprises that 
                have experience in electronic commerce practice and 
                technology; and
                    ``(F) the development centers.
    ``(c) Administration.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall--
                    ``(A) provide leadership, support, and coordination 
                for the extension programs;
                    ``(B) establish policies, practices, and procedures 
                to assist rural communities in the adoption and use of 
                electronic commerce techniques;
                    ``(C) identify and strengthen existing mechanisms 
                designed to assist rural areas in the adoption and use 
                of electronic commerce techniques;
                    ``(D) provide grants to fund projects and 
                activities under the extension program; and
                    ``(E) establish a clearinghouse system for States, 
                communities, and businesses to obtain information on 
                best practices, technology transfer, training, 
                education, adoption, and use of electronic commerce in 
                rural areas.
            ``(2) Office of rural electronic commerce.--The Secretary 
        shall establish, in the Cooperative State Research, Education, 
        and Extension Service, an Office of Rural Electronic Commerce 
        to assist in carrying out this section.
    ``(d) Grants.--
            ``(1) In general.--The Secretary shall carry out a program 
        under which--
                    ``(A) funds are distributed to each of the 
                development centers to--
                            ``(i) assemble regional expertise, and 
                        develop innovative education programs, that may 
                        be adapted and refined by State extension 
                        programs;
                            ``(ii) train State-based cooperative 
                        extension agents to deliver rural electronic 
                        commerce education programs; and
                            ``(iii) establish networks among 
                        universities, local governments, and private 
                        industries to focus on regional economic 
                        issues; and
                    ``(B) competitive grants are made to cooperative 
                extension service programs at land-grant colleges and 
                universities (or consortia of land-grant colleges and 
                universities)--
                            ``(i) to develop and facilitate nationally 
                        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.--
                    ``(A) Criteria.--
                            ``(i) In general.--The Secretary, shall--
                                    ``(I) establish criteria for the 
                                submission, evaluation, and funding of 
                                applications for grants to carry out 
                                projects and activities under the 
                                extension program; and
                                    ``(II) evaluate, rank, and select 
                                grant applications described in 
                                subclause (I) on the basis of the 
                                selection criteria.
                            ``(ii) Factors.--The selection criteria 
                        established under clause (i) shall include--
                                    ``(I) 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 
                                business and microenterprise;
                                    ``(II) the quality of the service 
                                to be provided by a proposed project or 
                                activity under the extension program;
                                    ``(III) the extent and geographic 
                                diversity of the area served by the 
                                proposed project or activity under the 
                                extension program;
                                    ``(IV) the extent of participation 
                                of land-grant colleges and universities 
                                in the extension program (including any 
                                economic benefits that would result 
                                from that participation);
                                    ``(V) 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
                                    ``(VI) the extent of participation 
                                of low-income and minority businesses 
                                or microenterprises in a proposed 
                                project or activity under the extension 
                                program.
                    ``(B) Application.--As a condition of being 
                considered for the receipt of funds under this section, 
                an applicant shall submit to the Secretary an 
                application that meets the criteria established under 
                subparagraph (A)(i)(I).
                    ``(C) Non-federal share.--
                            ``(i) In general.--As a condition of the 
                        receipt of funds under this section, an 
                        applicant shall agree to obtain from non-
                        Federal sources (including State, local, 
                        nonprofit, or private sector sources) 
                        contributions of--
                                    ``(I) except as provided in clause 
                                (iii), during each of the years in 
                                which the extension program receives 
                                funding under subsection (g), 50 
                                percent of the estimated capital and 
                                annual operating and maintenance costs 
                                of the extension program; and
                                    ``(II) after expiration of the 
                                initial funding period specified in 
                                subclause (I), 100 percent of the 
                                estimated capital and annual operating 
                                and maintenance costs of the extension 
                                program.
                            ``(ii) Form.--The non-Federal share 
                        required under clause (i)(I) may be provided in 
                        the form of in-kind contributions.
                            ``(iii) Exception.--The non-Federal share 
                        required under clause (i)(I) may be reduced to 
                        25 percent of the estimated capital and annual 
                        operating and maintenance costs of the 
                        extension program if the grant recipient serves 
                        low-income or minority-owned businesses or 
                        microenterprises, as determined by the 
                        Secretary.
            ``(3) Limitation on amount of funds awarded.--
                    ``(A) Individual land-grant colleges and 
                universities.--A land-grant college or university shall 
                not receive funds under this section in an amount that 
                exceeds $900,000.
                    ``(B) Consortia of land-grant colleges and 
                universities.--With respect to a consortium of land-
                grant colleges and universities that receives funds 
                under this section--
                            ``(i) the total amount of the funds awarded 
                        to the consortium shall not exceed the product 
                        obtained by multiplying--
                                    ``(I) $900,000; by
                                    ``(II) the number of land-grant 
                                colleges and universities comprising 
                                the consortium; and
                            ``(ii) each land-grant college or 
                        university that is a member of the consortium 
                        shall receive an equal percentage of the total 
                        amount of funds awarded.
            ``(4) Selection.--At least once every 180 days, the 
        Secretary shall evaluate, prioritize, and fund applications for 
        proposed projects and activities under the extension program 
        using the criteria established under paragraph (2)(A)(i)(I).
    ``(e) Evaluation.--
            ``(1) In general.--Not later than 1 year after a project or 
        activity under the extension program is funded by a grant under 
        this section, the evaluation panel established under paragraph 
        (2)(A) shall evaluate the project or activity.
            ``(2) Evaluation panel.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of this section, the Secretary shall 
                establish an evaluation panel to--
                            ``(i) establish criteria for evaluating 
                        projects and activities under the extension 
                        program; and
                            ``(ii) using the criteria established under 
                        clause (i), evaluate the projects and 
                        activities.
                    ``(B) Composition.--The evaluation panel shall be 
                composed of--
                            ``(i) appropriate Federal, State, local 
                        government, and land-grant college or 
                        university officials, as determined by the 
                        Secretary; and
                            ``(ii) private individuals with expertise 
                        in electronic commerce, technology, or small 
                        business, as determined by the Secretary.
            ``(3) Criteria.--The evaluation panel shall evaluate 
        projects and activities under the extension program using 
        criteria established by the Secretary that assess the 
        efficiency and efficacy of the extension program.
            ``(4) Assistance from grant recipients.--A recipient of a 
        grant under this section shall, to the maximum extent 
        practicable, provide to the evaluation panel such materials as 
        the evaluation panel may request to assist in the evaluation of 
        any project or activity carried out by the recipient under the 
        extension program.
    ``(f) 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;
            ``(2) the clearinghouse system for States, communities, 
        small businesses, and individuals established to obtain 
        information regarding best practices, technology transfer, 
        training, education, adoption, and use of electronic commerce 
        in rural areas; and
            ``(3) the criteria used for the submission, evaluation, and 
        funding of projects and activities under the extension program.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $60,000,000 for each of fiscal years 
        2002 through 2006, of which $20,000,000 for each fiscal year 
        shall be made available to carry out activities under 
        subsection (d)(1)(A).
            ``(2) Administrative costs.--The Secretary may use not more 
        than 2 percent of the funds made available under paragraph (1) 
        to pay administrative costs incurred in carrying out this 
        section.''.

SEC. 734. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925) is amended
            (1) in subsection (e), by adding at the end the following:
            ``(25) Animal infectious diseases research and extension.--
                    ``(A) In general.--Research and extension grants 
                may be made under this section for the purpose of 
                developing--
                            ``(i) prevention and control methodologies 
                        for animal infectious diseases that impact 
                        trade, including vesicular stomatitis, bovine 
                        tuberculosis, transmissible spongiform 
                        encephalopathy, brucellosis, and E. coli 
                        0157:H7 infection;
                            ``(ii) laboratory tests for quicker 
                        detection of infected animals and presence of 
                        diseases among herds;
                            ``(iii) prevention strategies, including 
                        vaccination programs; and
                            ``(iv) rapid diagnostic techniques for 
                        animal disease agents considered to be risks 
                        for agricultural bioterrorism attack, including 
                        evaluation of the techniques.
                    ``(B) Collaboration.--Research under subparagraph 
                (A) may be conducted in collaboration with scientists 
                from the Department, other Federal agencies, 
                universities, and industry.
                    ``(C) Evaluation of diagnostic techniques and 
                vaccines.--Any research on or evaluation of diagnostic 
                techniques and vaccines under subparagraph (A) shall 
                include evaluation of diagnostic techniques and 
                vaccines under field conditions in countries in which 
                the animal disease occurs.
            ``(26) 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.
            ``(27) Integrated pest management.--Research and extension 
        grants may be made under this section to land grant colleges 
        and universities, other Federal agencies, and other interested 
        persons to coordinate and improve research, education, and 
        outreach on, and implementation on farms of, integrated pest 
        management.
            ``(28) Beef cattle genetics.--
                    ``(A) In general.--Research and extension grants 
                for beef cattle genetics evaluation research may be 
                made under this section to institutions of higher 
                education, or consortia of institutions of higher 
                education, that--
                            ``(i) have expertise in beef cattle genetic 
                        evaluation research and technology; and
                            ``(ii) 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.
                    ``(B) Priority.--In making grants under 
                subparagraph (A), the Secretary shall give priority to 
                proposals to--
                            ``(i) establish and coordinate priorities 
                        for genetic evaluation of domestic beef cattle;
                            ``(ii) consolidate research efforts to 
                        reduce duplication of effort and maximize the 
                        return to beef industry;
                            ``(iii) streamline the process between the 
                        development and adoption of new genetic 
                        evaluation methodologies by the industry;
                            ``(iv) identify new traits and technologies 
                        for inclusion in genetic programs in order to--
                                    ``(I) reduce the costs of beef 
                                production; and
                                    ``(II) provide consumers with a 
                                high nutritional value, healthy, and 
                                affordable protein source; or
                            ``(v) create decisionmaking tools that 
                        incorporate the increasing number of traits 
                        being evaluated and the increasing amount of 
                        information from DNA technology into genetic 
                        improvement programs, with the goal of 
                        optimizing the overall efficiency, product 
                        quality and safety, and health of the domestic 
                        beef cattle herd resource.
            ``(29) Dairy pipeline cleaners.--Research and extension 
        grants may be made under this section for the purpose of 
        preventing and eliminating the dangers of dairy pipeline 
        cleaner, including--
                    ``(A) developing safer packaging mechanisms and a 
                new transfer mechanism, including a new pumping 
                mechanism for dairy pipeline cleaner;
                    ``(B) outlining--
                            ``(i) the accident history for dairy 
                        pipeline cleaner;
                            ``(ii) the causes of accidents involving 
                        dairy pipeline cleaner; and
                            ``(iii) potential means of prevention of 
                        such accidents, including improved labeling and 
                        pump structure; and
                    ``(C) other means of improving efforts to prevent 
                ingestion of dairy pipeline cleaner.
            ``(30) Development of publicly held plants and animal 
        varieties; genetic resource conservation activities.--Research 
        and extension grants may be made under this section to colleges 
        and universities, other Federal agencies, plant breeders, and 
        other interested persons for the purpose of--
                    ``(A) development of publicly held plants and 
                animal varieties (including germplasm for identity-
                preserved markets); and
                    ``(B) genetic resource conservation activities.''; 
                and
            (2) in subsection (h), by striking ``2002'' and inserting 
        ``2006'', of which not less than $100,000 for each of fiscal 
        years 2002 through 2006 shall be used to carry out subsection 
        (e)(29).

SEC. 735. 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 ``2006''.

SEC. 736. 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) by inserting after ``Board,'' the following: 
                ``and the National Organic Standards Board,'';
                    (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 
        using advanced genomics, field trials, and other methods;
            ``(5) pursuing classical and marker-assisted breeding for 
        publicly held varieties of crops and animals optimized for 
        organic systems;
            ``(6) identifying marketing and policy constraints on the 
        expansion of organic agriculture; and
            ``(7) 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) in subsection (e), by striking ``2002'' and inserting 
        ``2006''.

SEC. 737. 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 ``2006''.

SEC. 738. 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 ``2006''.

Subtitle C--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

    Section 401 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7621) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Funding.--
            ``(1) In general.--Out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Account to carry out this section--
                    ``(A) on October 1, 1998 and each October 1 
                thereafter through October 1, 2001, $120,000,000; and
                    ``(B) on October 1, 2002, and each October 1 
                thereafter through October 1, 2005, $145,000,000.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''; and
            (2) in subsection (e), by adding at the end the following:
            ``(3) Minority-serving institutions.--The Secretary shall 
        consider reserving, to the maximum extent practicable, 10 
        percent of the funds made available to carry out this section 
        for a fiscal year for grants to minority-serving 
        institutions.''.

SEC. 742. 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 ``2006''.

SEC. 743. 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 ``or 
                        horticultural'' following ``agronomic''; 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.''; and
            (4) in subsection (i)(1), by striking ``2002'' and 
        inserting ``2006''.

SEC. 744. BIOBASED PRODUCTS.

    Section 404 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7624) is amended--
            (1) in subsection (e)(2), by striking ``2001'' and 
        inserting ``2006''; and
            (2) in subsection (h), by striking ``2002'' and inserting 
        ``2006''.

SEC. 745. 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 ``2006''.

SEC. 746. 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 ``2006''.

SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT AND BARLEY 
              CAUSED BY FUSARIUM GRAMINEARUM.

    Section 408(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking 
``2002'' and inserting ``2006''.

SEC. 748. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    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. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    ``(a) Establishment.--The Secretary, 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 are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2002 through 2006.''.

SEC. 749. 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 748) 
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 2006.''.

SEC. 750. 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.) (as amended by section 749) 
is amended by adding at the end the following:

``SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              DEVELOPING COUNTRIES.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) an institution of higher education;
                    ``(B) a nonprofit organization; or
                    ``(C) a consortium of for-profit institutions and 
                agricultural research institutions.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' means--
                    ``(A) a historically black land-grant college or 
                university;
                    ``(B) a 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)); or
                    ``(C) a tribal college or university that offers a 
                curriculum in agriculture or the biosciences.
    ``(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 is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2002 through 2006.''.

SEC. 750A. 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 ``2006''.

SEC. 750B. 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.''.

                     Subtitle D--Land-Grant Funding

                      CHAPTER 1--1862 INSTITUTIONS

SEC. 751. CARRYOVER.

    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.--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.''.

SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

    Section 7(e) of the Hatch Act of 1887 (7 U.S.C. 361g(e)) is amended 
by adding at the end the following:
            ``(5) The technology transfer activities conducted with 
        respect to federally-funded agricultural research.''.

SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRATION REQUIREMENTS.

    (a) Multistate Cooperative Extension Activities.--Section 3 of the 
Smith-Lever Act (7 U.S.C. 343) is amended by striking subsection (h) 
and inserting the following:
    ``(h) Multistate Cooperative Extension Activities.--
            ``(1) Definition of multistate activity.--In this 
        subsection, the term `multistate activity' means a cooperative 
        extension activity in which 2 or more States cooperate to 
        resolve problems that concern more than 1 State.
            ``(2) Requirement.--
                    ``(A) In general.--To receive funding under 
                subsections (b) and (c) for a fiscal year, a State must 
                have expended on multistate activities, in the 
                preceding fiscal year, an amount equivalent to not less 
                than 25 percent of the funds paid to the State under 
                subsections (b) and (c) for the preceding fiscal year.
                    ``(B) Determination of amount.--In determining 
                compliance with subparagraph (A), the Secretary shall 
                include all cooperative extension funds expended by the 
                State in the preceding fiscal year, including Federal, 
                State, and local funds.
            ``(3) Reduction of percentage.--The Secretary may reduce 
        the minimum percentage required to be expended for multistate 
        activities under paragraph (2) by a State in a case of 
        hardship, unfeasibility, or other similar circumstances beyond 
        the control of the State, as determined by the Secretary.
            ``(4) Plan of work.--The State shall include in the plan of 
        work of the State required under section 4 a description of the 
        manner in which the State will meet the requirements of this 
        subsection.
            ``(5) Applicability.--This subsection does not apply to 
        funds provided--
                    ``(A) to 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)); or
                    ``(B) to the Commonwealth of Puerto Rico, the 
                Virgin Islands, or Guam.''.
    (b) Integrated Research and Extension Activities.--Section 3 of the 
Hatch Act of 1887 (7 U.S.C. 361c) is amended by striking subsection (i) 
and inserting the following:
    ``(i) Integrated Research and Extension Activities.--
            ``(1) In general.--
                    ``(A) Requirement.--To receive funding under this 
                Act and subsections (b) and (c) of section 3 of the 
                Smith-Lever Act (7 U.S.C. 343) for a fiscal year, a 
                State must have expended on activities that integrate 
                cooperative research and extension (referred to in this 
                section as `integrated activities'), in the preceding 
                fiscal year, an amount equivalent to not less than 25 
                percent of the funds paid to the State under this 
                section and subsections (b) and (c) of section 3 of the 
                Smith-Lever Act (7 U.S.C. 343) for the preceding fiscal 
                year.
                    ``(B) Determination of amount.--In determining 
                compliance with subparagraph (A), the Secretary shall 
                include all cooperative research and extension funds 
                expended by the State in the prior fiscal year, 
                including Federal, State, and local funds.
            ``(2) Reduction of percentage.--The Secretary may reduce 
        the minimum percentage required to be expended for integrated 
        activities under paragraph (1) by a State in a case of 
        hardship, unfeasibility, or other similar circumstances beyond 
        the control of the State, as determined by the Secretary.
            ``(3) Plan of work.--The State shall include in the plan of 
        work of the State required under section 7 of this Act and 
        under section 4 of the Smith-Lever Act (7 U.S.C. 344), as 
        applicable, a description of the manner in which the State will 
        meet the requirements of this subsection.
            ``(4) Applicability.--This subsection does not apply to 
        funds provided--
                    ``(A) to 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)); or
                    ``(B) to the Commonwealth of Puerto Rico, the 
                Virgin Islands, or Guam.
            ``(5) Relationship to other requirements.--Funds described 
        in paragraph (1)(B) that a State uses to calculate the required 
        amount of expenditures for integrated activities under 
        paragraph (1)(A) may also be used in the same fiscal year to 
        calculate the amount of expenditures for multistate activities 
        required under subsection (c)(3) of this section and section 
        3(h) of the Smith-Lever Act (7 U.S.C. 343(h)).''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2002.

                      CHAPTER 2--1994 INSTITUTIONS

SEC. 754. EXTENSION AT 1994 INSTITUTIONS.

    Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b)) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Extension at 1994 institutions.--
                    ``(A) In general.--There are authorized to be 
                appropriated for fiscal year 2002 and each subsequent 
                fiscal year, for payment to 1994 Institutions (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)), such sums as are necessary for 
                the purposes set forth in section 2, to remain 
                available until expended.
                    ``(B) Distribution.--Amounts made available under 
                subparagraph (A)--
                            ``(i) shall be distributed on the basis of 
                        a formula to be developed and implemented by 
                        the Secretary, in consultation with the 1994 
                        Institutions; and
                            ``(ii) may include payments for extension 
                        activities carried out during 1 or more fiscal 
                        years.
                    ``(C) Cooperative agreement.--In accordance with 
                such regulations as the Secretary may promulgate, a 
                1994 Institution may administer funds received under 
                this paragraph through a cooperative agreement with an 
                1862 Institution or an 1890 Institution (as those terms 
                are defined in section 2 of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 U.S.C. 
                7601)).''.

SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) 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.''.
    (b) 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''.
    (c) Land-Grant Status for 1994 Institutions.--Section 533(b) 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 ``$4,600,000 for each of 
fiscal years 1996 through 2002'' and inserting ``such sums as are 
necessary for each of fiscal years 2002 through 2006''.
    (d) 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 (20 U.S.C. 2397h(3)) 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)))''.
    (e) Increase in Institutional Payments.--Section 534(a)(1)(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 ``$50,000'' and 
inserting ``$100,000''.
    (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 ``2006''; 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 2006''.
    (g) Research Grants.--Section 536(c) 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 ``2002'' and inserting ``2006''.

SEC. 756. 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''.

                      CHAPTER 3--1890 INSTITUTIONS

SEC. 757. 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 2002, 
        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 2002, 
        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. 758. CARRYOVER.

    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 757(b)) is 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.--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.''.

SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

    Section 1445(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(c)(3)) is 
amended by adding at the end the following:
                    ``(F) The technology transfer activities conducted 
                with respect to federally-funded agricultural 
                research.''.

SEC. 760. 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 2006''.

SEC. 761. 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 ``2006''.
    (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. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES.

    Section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended by striking 
subsections (c) and (d) and inserting the following:
    ``(c) Matching Formula.--
            ``(1) In general.--For each of fiscal years 2003 through 
        2006, the State shall provide matching funds from non-Federal 
        sources.
            ``(2) Amount.--The amount of the matching funds shall be 
        equal to not less than--
                    ``(A) for fiscal year 2003, 60 percent of the 
                formula funds to be distributed to the eligible 
                institution; and
                    ``(B) for each of fiscal years 2004 through 2006, 
                110 percent of the amount required under this paragraph 
                for the preceding fiscal year.
    ``(d) Waivers.--Notwithstanding subsection (f), for any of fiscal 
years 2003 through 2006, the Secretary may waive the matching funds 
requirement under subsection (c) for any amount above the level of 50 
percent for an eligible institution of a State if the Secretary 
determines that the State will be unlikely to meet the matching 
requirement.''.

                   CHAPTER 4--LAND-GRANT INSTITUTIONS

                         Subchapter A--General

SEC. 771. PRIORITY-SETTING PROCESS.

    Section 102(c)(1) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7612(c)(1)) is amended--
            (1) by striking ``establish and implement a process for 
        obtaining'' and inserting ``obtain public''; and
            (2) by striking the period at the end and inserting the 
        following: ``through a process that reflects transparency and 
        opportunity for input from producers of diverse agricultural 
        crops and diverse geographic and cultural communities.''.

SEC. 772. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

    (a) Termination.--Not later than 60 days after the date of 
enactment of this Act, 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; and
                            (v) the Thrift Savings Plan; 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 the 
                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 120 days 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.

         Subchapter B--Land-Grant Institutions in Insular Areas

SEC. 775. DISTANCE EDUCATION GRANTS PROGRAM FOR INSULAR AREA LAND-GRANT 
              INSTITUTIONS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) (as amended by section 723) is 
amended by adding at the end the following:

         ``Subtitle O--Land Grant Institutions in Insular Areas

``SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

    ``(a) In General.--The Secretary may make competitive or 
noncompetitive grants to State cooperative institutions in insular 
areas to strengthen the capacity of State cooperative 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, including a minority business or a 
        business located in a HUBZone established under section 31 of 
        the Small Business Act (15 U.S.C. 657a); 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 State cooperative institutions in the Atlantic and 
Pacific Oceans.
    ``(e) Matching Requirement.--
            ``(1) In general.--The Secretary may establishment a 
        requirement that a State cooperative 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 requirement shall include 
        an option for the Secretary to waive the requirement for an 
        insular area State cooperative 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 $4,000,000 for each of fiscal 
years 2002 through 2006.''.

SEC. 776. 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.''.

                         Subtitle E--Other Laws

SEC. 781. CRITICAL AGRICULTURAL MATERIALS.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``2002'' and inserting ``2006''.

SEC. 782. RESEARCH FACILITIES.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2002'' and inserting ``2006''.

SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.

    Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended by striking ``2002'' and inserting ``2006''.

SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

    The Competitive, Special, and Facilities Research Grant Act (7 
U.S.C. 450i) is amended in subsection (b)--
            (1) in paragraph (2), by striking ``in--'' and all that 
        follows and inserting ``, as those needs are 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.''; and
            (2) in paragraph (10), by striking ``2002'' and inserting 
        ``2006''.

SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Section 524(a)(3) of the Federal Crop Insurance 
Act (7 U.S.C. 1524(a)(3)) is amended by striking subparagraph (A) and 
inserting the following:
                    ``(A) Authority.--The Secretary, acting through the 
                Cooperative State Research, Education, and Extension 
                Service, shall establish a program under which 
                competitive grants are made to qualified public and 
                private entities (including land-grant colleges and 
                universities, cooperative extension services, colleges 
                or universities, and community colleges), as determined 
                by the Secretary, for the purpose of--
                            ``(i) educating producers generally about 
                        the full range of risk management activities, 
                        including futures, options, agricultural trade 
                        options, crop insurance, cash forward 
                        contracting, debt reduction, production 
                        diversification, farm resources risk reduction, 
                        and other risk management strategies; or
                            ``(ii) educating beginning farmers and 
                        ranchers--
                                    ``(I) in the areas described in 
                                clause (i); and
                                    ``(II) in risk management 
                                strategies, as part of programs that 
                                are specifically targeted at beginning 
                                farmers and ranchers.''.
    (b) Technical Correction.--Section 524(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)) is amended by redesignating the second 
paragraph (2) and paragraph (3) as paragraphs (3) and (4), 
respectively.

SEC. 786. 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 
``2006''.

SEC. 787. CARBON CYCLE RESEARCH.

    Section 221 of the Agricultural Risk Protection Act of 2000 (114 
Stat. 407) is amended--
            (1) in subsection (a), by striking ``Of the amount'' and 
        all that follows through ``to provide'' and inserting ``To the 
        extent that funds are made available for the purpose, the 
        Secretary shall provide'';
            (2) in subsection (d), by striking ``under subsection (a)'' 
        and inserting ``to carry out this section''; and
            (3) by adding at the end the following:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 2002 through 2006 such sums as are 
necessary to carry out this section.''.

                      Subtitle F--New Authorities

SEC. 791. 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. 792. REGULATORY AND INSPECTION RESEARCH.

    (a) Definitions.--In this section:
            (1) Inspection or regulatory agency of the department.--The 
        term ``inspection or regulatory agency of the Department'' 
        includes--
                    (A) the Animal and Plant Health Inspection Service;
                    (B) the Food Safety and Inspection Service;
                    (C) the Grain Inspection, Packers, and Stockyards 
                Administration; and
                    (D) the Agricultural Marketing Service.
            (2) Urgent applied research needs.--The term ``urgent 
        applied research needs'' includes research necessary to carry 
        out--
                    (A) agricultural marketing programs;
                    (B) programs to protect the animal and plant 
                resources of the United States; and
                    (C) educational programs or special studies to 
                improve the safety of the food supply of the United 
                States.
    (b) Timely, Cost-Effective Research.--To meet the urgent applied 
research needs of inspection or regulatory agencies of the Department, 
the Secretary--
            (1) may use a public or private source; and
            (2) shall use the most practicable source to provide 
        timely, cost-effective means of providing the research.
    (c) Conflicts of Interest.--The Secretary shall establish 
guidelines to prevent any conflict of interest that may arise if an 
inspection or regulatory agency of the Department obtains research from 
any Federal agency the work or technology transfer efforts of which are 
funded in part by an industry subject to the jurisdiction of the 
inspection or regulatory agency of the Department.
    (d) Regulations.--The Secretary may promulgate such regulations as 
are necessary to carry out this section.

SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.

    (a) In General.--Subject to subsection (b), in addition to any 
other authority that the Secretary may have to transfer appropriated 
funds, the Secretary may transfer up to 2 percent of any appropriation 
made available to an office or agency of the Department for a fiscal 
year for agricultural research, extension, marketing, animal and plant 
health, nutrition, food safety, nutrition education, or forestry 
programs to any other appropriation for an office or agency of the 
Department for emergency research, extension, or education activities 
needed to address imminent threats to animal and plant health, food 
safety, or human nutrition, including bioterrorism.
    (b) Limitations.--The Secretary may transfer funds under subsection 
(a) only--
            (1) on a determination by the Secretary that the need is so 
        imminent that the need will not be timely met by annual, 
        supplemental, or emergency appropriations;
            (2) in an aggregate amount that does not exceed $5,000,000 
        for any fiscal year; and
            (3) with the approval of the Director of the Office of 
        Management and Budget.

SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

    (a) In General.--The Secretary shall conduct a review of the 
purpose, efficiency, effectiveness, and impact on agricultural research 
of the Agricultural Research Service.
    (b) Administration.--In conducting the review, the Secretary shall 
use persons outside the Department, including--
            (1) Federal scientists;
            (2) college and university faculty;
            (3) private and nonprofit scientists; or
            (4) other persons familiar with the role of the 
        Agricultural Research Service in conducting agricultural 
        research in the United States.
    (c) Report.--Not later than September 30, 2004, 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 review.
    (d) Funding.--The Secretary shall use to carry out this section not 
more than 0.1 percent of the amount of appropriations made available to 
the Agricultural Research Service for each of fiscal years 2002 through 
2004.

SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOPMENT.

    (a) In General.--The Secretary, acting through the Rural Business-
Cooperative Service and the Agricultural Research Service, shall 
establish a program to promote the availability of technology transfer 
opportunities of the Department to rural businesses and residents.
    (b) Components of Program.--The program shall, to the maximum 
extent practicable, include--
            (1) a website featuring information about the program and 
        technology transfer opportunities of the Department;
            (2) an annual joint program for State economic development 
        directors and Department rural development directors regarding 
        technology transfer opportunities of the Agricultural Research 
        Service and other offices and agencies of the Department; and
            (3) technology transfer opportunity programs at each 
        Agricultural Research Service laboratory, conducted at least 
        biennially, which may include participation by other local 
        Federal laboratories, as appropriate.
    (c) Funding.--The Secretary shall use to carry out this section--
            (1) amounts made available to the Agricultural Research 
        Service; and
            (2) amounts made available to the Rural Business-
        Cooperative Service for salaries and expenses.

SEC. 796. 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 
        section 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) Funding.--
            (1) Fees and contributions.--
                    (A) In general.--The Secretary may--
                            (i) charge a fee to cover all or part of 
                        the costs of curriculum development and the 
                        delivery of programs or workshops provided by--
                                    (I) a beginning farmer and rancher 
                                education team established under 
                                subsection (d); or
                                    (II) the online clearinghouse 
                                established under subsection (e); and
                            (ii) accept contributions from cooperating 
                        entities under a cooperative agreement entered 
                        into under subsection (d)(4)(B) to cover all or 
                        part of the costs for the delivery of programs 
                        or workshops by the beginning farmer and 
                        rancher education teams.
                    (B) Availability.--Fees and contributions received 
                by the Secretary under subparagraph (A) shall--
                            (i) be deposited in the account that 
                        incurred the costs to carry out this section;
                            (ii) be available to the Secretary to carry 
                        out the purposes of the account, without 
                        further appropriation;
                            (iii) remain available until expended; and
                            (iv) be in addition to any funds made 
                        available under paragraph (2).
            (2) Transfers.--
                    (A) In general.--Not later than 30 days after the 
                date of enactment of this Act, and on October 1, 2002, 
                and each October 1 thereafter through October 1, 2005, 
                out of any funds in the Treasury not otherwise 
                appropriated, the Secretary of the Treasury shall 
                transfer to the Secretary to carry out this section 
                $15,000,000, to remain available for 2 fiscal years.
                    (B) Receipt and acceptance.--The Secretary shall be 
                entitled to receive, shall accept, and shall use to 
                carry out this section the funds transferred under 
                subparagraph (A), without further appropriation.

SEC. 797. 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. 798. RURAL POLICY RESEARCH.

    (a) In General.--There is established in the Treasury of the United 
States an account to be known as the ``Rural Research Fund Account'' 
(referred to in this section as the ``Account'') to provide funds for 
activities described in subsection (c).
    (b) Funding.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2002, and each October 
        1 thereafter through October 1, 2005, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Account to carry out this 
        section $15,000,000, to remain available for 2 fiscal years.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
    (c) Purposes.--The Secretary shall use the funds in the Account to 
make competitive research grants for applied and outcome oriented 
research and policy research and analysis of rural issues relating to--
            (1) rural sociology;
            (2) effects of demographic change, including aging 
        population, outmigration, and labor resources;
            (3) needs of groups of rural citizens, including senior 
        citizens, families, youth, children, and socially disadvantaged 
        individuals;
            (4) rural community development;
            (5) rural infrastructure, including water and waste, 
        community facilities, telecommunications, electricity, and 
        high-speed broadband services;
            (6) rural business development, including credit, venture 
        capital, cooperatives, value-added enterprises, new and 
        alternative markets, farm and rural enterprise formation, and 
        entrepreneurship;
            (7) farm management, including strategic planning, business 
        and marketing opportunities, risk management, natural resources 
        and environmental management, organic and sustainable farming 
        systems, public sector development of new crops and crop 
        varieties, and intergenerational transfer strategies;
            (8) rural education and extension programs, including 
        methods of delivery, availability of resources, and use of 
        distance learning; and
            (9) rural health, including mental health, on-farm safety, 
        and food safety.
    (d) Requirements.--In making grants under this section, the 
Secretary shall--
            (1) solicit and consider public input from persons who 
        conduct or use agricultural research, extension, education, or 
        rural development programs; and
            (2) ensure that funded proposals will provide high-quality 
        research that may be of use to public policymakers and private 
        entities in making decisions that affect development in rural 
        areas.
    (e) Eligible Grantees.--The Secretary may make a grant under this 
section to--
            (1) an individual;
            (2) a college or university or a foundation maintained by a 
        college or university;
            (3) a State cooperative institution (as defined in section 
        1404 of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103));
            (4) a community college;
            (5) a nonprofit organization, institution, or association;
            (6) a business association;
            (7) an agency of a State, local, or tribal government; or
            (8) a regional partnership of public and private agencies.
    (f) Term.--A grant under this section shall have a term that does 
not exceed 5 years.
    (g) Matching Funds.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may require as a condition of the grant that the grant funding 
        be matched, in whole or in part, with matching funds from a 
        non-Federal source.
            (2) Business associations.--The Secretary shall require 
        that a grant to a business association be matched with equal 
        matching funds from a non-Federal source.
    (h) Administrative Costs.--The Secretary may use not more than 4 
percent of the funds made available for grants under this section to 
pay administrative costs incurred by the Secretary in carrying out this 
section.

SEC. 798A. PRIORITY FOR FARMERS AND RANCHERS PARTICIPATING IN 
              CONSERVATION PROGRAMS.

    In carrying out new on-farm research or extension programs or 
projects authorized by this Act, an amendment made by this Act, or any 
Act enacted after the date of enactment of this Act, the Secretary 
shall give priority in carrying out the programs or projects to using 
farms or ranches of farmers or ranchers that participate in Federal 
agricultural conservation programs.

SEC. 798B. 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. 798C. ORGANICALLY PRODUCED PRODUCT RESEARCH AND EDUCATION.

    Not later than December 1, 2004, the Secretary, acting through the 
Administrator of the Economic Research Service, shall prepare, in 
consultation with the Advisory Committee on Small Farms, and submit to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, a 
report on--
            (1) the impact on small farms of the implementation of the 
        national organic program under part 205 of title 7, Code of 
        Federal Regulations; and
            (2) the production and marketing costs to producers and 
        handlers associated with transitioning to organic production.

SEC. 798D. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

    The Secretary, acting through the Agricultural Research Service 
(including the National Agriculture 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. 798E. 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 of Agriculture 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 of 
                Agriculture;
                    (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.

                          TITLE VIII--FORESTRY

SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2002'' and 
inserting ``2006''.

SEC. 802. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.

    It is the sense of Congress to reaffirm the importance of Public 
Law 87-88 (16 U.S.C. 582a et seq.), commonly known as the ``McIntire-
Stennis Cooperative Forestry Act''.

SEC. 803. 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--
            ``(1) the value and benefits of practicing sustainable 
        forestry;
            ``(2) the importance of professional forestry advice in 
        achieving sustainable forestry objectives; and
            ``(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 
        2006.''.
            (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 ``2006''.

SEC. 804. FORESTRY INCENTIVES PROGRAM.

    Section 4(j) of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103(j)) is amended by striking ``2002'' and inserting ``2006''.

SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 5 (16 U.S.C. 2103a) the following:

``SEC. 5A. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Farmer or rancher.--The term `farmer or rancher' 
        means a person engaged in the production of an agricultural 
        commodity (including livestock).
            ``(2) Forestry cooperative.--The term `forestry 
        cooperative' means an association that is--
                    ``(A) owned and operated by nonindustrial private 
                forest landowners; and
                    ``(B) comprised of members--
                            ``(i) of which at least 51 percent are 
                        farmers or ranchers; and
                            ``(ii) that use sustainable forestry 
                        practices on nonindustrial private forest land 
                        to create a long-term, sustainable income 
                        stream.
            ``(3) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' has the meaning given the 
        term `nonindustrial private forest lands' in section 5(c).
    ``(b) Establishment.--The Secretary shall establish a program, to 
be known as the `sustainable forestry cooperative program', under which 
the Secretary shall provide, to nonprofit organizations on a 
competitive basis, grants to establish, and develop and support, 
sustainable forestry practices carried out by members of, forestry 
cooperatives.
    ``(c) Use of Funds.--
            ``(1) In general.--Subject to paragraph (2), funds from a 
        grant provided under this section shall be used for--
                    ``(A) predevelopment, development, start-up, 
                capital acquisition, and marketing costs associated 
                with a forestry cooperative; or
                    ``(B) the development or support of a sustainable 
                forestry practice of a member of a forestry 
                cooperative.
            ``(2) Conditions
                    ``(A) Development.--The Secretary shall provide 
                funds under paragraph (1)(A) only to a nonprofit 
                organization with demonstrated expertise in cooperative 
                development, as determined by the Secretary.
                    ``(B) Compliance with plan.--A sustainable forestry 
                practice developed or supported through the use of 
                funds from a grant under this section shall comply with 
                any applicable standards for sustainable forestry 
                contained in a management plan that--
                            ``(i) meets the requirements of section 
                        6A(g); and
                            ``(ii) is approved by the State forester 
                        (or equivalent State official).
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $2,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.

SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

    (a) Findings and Purposes.--
            (1) Findings.--Congress finds that--
                    (A) the United States is becoming increasingly 
                dependent on nonindustrial private forest land to 
                supply necessary market commodities and nonmarket 
                conservation values;
                    (B) there is a strong demand for expanded 
                assistance programs for owners of nonindustrial private 
                forest land because the majority of the wood supply of 
                the United States comes from nonindustrial private 
                forest land;
                    (C) soil, water, and air quality, fish and wildlife 
                habitat, aesthetic values, and opportunities for 
                outdoor recreation in the United States would be 
                maintained and improved through good stewardship of 
                nonindustrial private forest land;
                    (D) the products and services resulting from 
                stewardship of nonindustrial private forest land 
                contribute to the economic, social, and ecological 
                health and diversity of rural communities;
                    (E) catastrophic wildfires threaten human lives, 
                property, forests, and other resources;
                    (F) Federal and State cooperation in forest fire 
                prevention and control has proven effective and 
                valuable because properly managed forest stands are 
                less susceptible to catastrophic fire, as demonstrated 
                by the catastrophic fire seasons of 1998 and 2000;
                    (G) owners of nonindustrial private forest land 
                face increased pressure to make that land available for 
                development and other uses, resulting in forest land 
                loss and fragmentation that reduces the ability of 
                private forest land to provide a full range of societal 
                benefits;
                    (H) complex investments in the management of long-
                rotation forest stands, including sustainable hardwood 
                management, are often the most difficult commitments 
                for owners of nonindustrial private forest land;
                    (I) the investment of a single Federal dollar in 
                State and private forestry programs is estimated to 
                leverage, on the average, $9 from State, local, and 
                private sources; and
                    (J) comprehensive, multiresource planning 
                assistance made available to each landowner before the 
                provision of technical assistance would provide an 
                opportunity to ensure that the landowner is aware of 
                the many projects and activities eligible for cost-
                share assistance.
            (2) Purposes.--The purposes of this section are--
                    (A) to strengthen the commitment of the Secretary 
                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
                    (B) 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) Program.--The Cooperative Forestry Assistance Act of 1978 is 
amended by inserting after section 6 (16 U.S.C. 2103b) the following:

``SEC. 6A. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Committee.--The term `Committee' means a State Forest 
        Stewardship Coordinating Committee established under section 
        19(b).
            ``(2) 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).
            ``(3) Program.--The term `program' means the sustainable 
        forest management program established under subsection (b)(1).
            ``(4) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' has the meaning given the 
        term `nonindustrial private forest lands' in section 5(c).
            ``(5) Owner.--The term `owner' means an owner of 
        nonindustrial private forest land.
            ``(6) State forester.--The term `State forester' means the 
        director or other head of a State forestry agency (or an 
        equivalent State official).
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish a 
        sustainable forest management program to--
                    ``(A) provide financial assistance to State 
                foresters; and
                    ``(B) encourage the long-term sustainability of 
                nonindustrial private forest land in the United States 
                by assisting the owners of nonindustrial private forest 
                land, through State foresters, in more actively 
                managing the nonindustrial private forest land 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.--The Secretary, acting through State 
        foresters, shall implement the program--
                    ``(A) in coordination with the Committees; and
                    ``(B) in consultation with--
                            ``(i) other Federal, State, and local 
                        natural resource management agencies;
                            ``(ii) institutions of higher education; 
                        and
                            ``(iii) a broad range of private sector 
                        interests.
    ``(c) State Priority Plan.--
            ``(1) In general.--Subject to paragraph (3), as a condition 
        of receipt of funding under the program, a State Forester and 
        the Committee of the State shall jointly develop and submit to 
        the Secretary a 5-year plan that describes the funding 
        priorities of the State in meeting the purposes of the program.
            ``(2) Public participation.--The plan submitted to the 
        Secretary under paragraph (1) shall include documentation of 
        the efforts of the State to provide for public participation in 
        the development of the plan.
            ``(3) State priorities.--The Secretary shall ensure, to the 
        maximum extent practicable, that the need for expanded 
        technical assistance programs for owners is met in the annual 
        funding priorities of each State described in paragraph (1).
    ``(d) Purposes.--The Secretary shall allocate resources of the 
Secretary among States in accordance with subsection (j) to encourage, 
in accordance with the plan of each State described in subsection (c)--
            ``(1) the investment in practices to establish, restore, 
        protect, manage, maintain, and enhance the health and 
        productivity of the nonindustrial private forest land in the 
        United States;
            ``(2) the occurrence of afforestation, reforestation, 
        improvement of poorly stocked stands, timber stand improvement, 
        practices necessary to improve seedling growth and survival, 
        and growth enhancement practices as needed to enhance and 
        sustain the long-term productivity of timber and nontimber 
        forest resources to--
                    ``(A) meet projected public demand for forest 
                resources; and
                    ``(B) provide environmental benefits;
            ``(3) the protection of riparian buffers and forest 
        wetland;
            ``(4) the maintenance and enhancement of fish and wildlife 
        habitat;
            ``(5) the enhancement of soil, air, and water quality;
            ``(6) through the use of agroforestry practices, the 
        reduction of soil erosion and maintenance of soil quality;
            ``(7) the maintenance and enhancement of the forest 
        landbase;
            ``(8) the reduction of the threat of catastrophic 
        wildfires; and
            ``(9) the preservation of aesthetic quality and 
        opportunities for outdoor recreation.
    ``(e) Eligibility.--
            ``(1) Cost-share assistance.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), an owner shall be eligible to receive cost-share 
                assistance from a State forester under the program if 
                the owner--
                            ``(i) develops a management plan in 
                        accordance with subsection (f) that--
                                    ``(I) addresses site-specific 
                                activities and practices; and
                                    ``(II) is approved by the State 
                                forester;
                            ``(ii) agrees to implement approved 
                        activities in accordance with the management 
                        plan for a period of not less than 10 years, 
                        unless the State forester approves a 
                        modification to the management plan; and
                            ``(iii) except as provided in subparagraph 
                        (B), owns not more than 1,000 acres of 
                        nonindustrial private forest land.
                    ``(B) Exception for significant public benefits.--
                The Secretary may approve the provision of cost-share 
                assistance to an owner that owns more than 1,000 but 
                less than 5,000 acres of nonindustrial private forest 
                land if the Secretary, in consultation with the State 
                forester, determines that significant public benefits 
                will accrue as a result of the approval.
            ``(2) Payment for plan development.--The Secretary, acting 
        through a State forester, may provide cost-share assistance to 
        an owner to develop a management plan.
            ``(3) Limitations.--An owner shall receive no cost-share 
        assistance for management of nonindustrial private forest land 
        under this section if the owner receives cost-share assistance 
        for that land under--
                    ``(A) the forestry incentives program under section 
                4;
                    ``(B) the stewardship incentives program under 
                section 6; or
                    ``(C) any conservation program administered by the 
                Secretary.
            ``(4) Rate; schedule.--Subject to paragraph (5), the 
        Secretary, in consultation with the State forester, shall 
        determine the rate and timing of cost-share payments.
            ``(5) Amount.--
                    ``(A) Percentage of cost.--Subject to subparagraph 
                (B), a cost-share payment shall not exceed the lesser 
                of an amount equal to--
                            ``(i) 75 percent of the total cost of 
                        implementing the project or activity; or
                            ``(ii) such lesser percentage of the total 
                        cost of implementing the project or activity as 
                        is determined by the appropriate State 
                        forester.
                    ``(B) Aggregate payment limit.--The Secretary shall 
                determine the maximum aggregate amount of cost-share 
                payments that an owner may receive under this section.
    ``(f) Management Plan.--An owner that seeks to participate in the 
program shall--
            ``(1) submit to the State forester a management plan that--
                    ``(A) meets the requirements of this section; and
                    ``(B)(i) is prepared by, or in consultation with, a 
                professional resource manager;
                    ``(ii) identifies and describes projects and 
                activities to be carried out by the owner to protect 
                soil, water, air, range, and aesthetic quality, 
                recreation, timber, water, wetland, and fish and 
                wildlife resources on the land in a manner that is 
                compatible with the objectives of the owner;
                    ``(iii) addresses any criteria established by the 
                applicable State and the applicable Committee; and
                    ``(iv)(I) at a minimum, applies to the portion of 
                the land on which any project or activity funded under 
                the program will be carried out; or
                    ``(II) in a case in which a project or activity 
                described in subclause (I) may affect acreage outside 
                the portion of the land on which the project or 
                activity is carried out, applies to all land of the 
                owner that is in forest cover and that may be affected 
                by the project or activity; and
            ``(2) agree that all projects and activities conducted on 
        the land shall be consistent with the management plan.
    ``(g) Approved Activities.--
            ``(1) In general.--The Secretary, in consultation with the 
        State forester and the appropriate Committee, 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 described in subsection (d).
            ``(2) Types of activities.--Approved activities and 
        practices under paragraph (1) may consist of activities and 
        practices for--
                    ``(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 preservation, restoration, or development 
                of habitat for plants, fish, and wildlife;
                    ``(F)(i) the control, detection, monitoring, and 
                prevention of the spread of invasive species and pests 
                on nonindustrial private forest land; and
                    ``(ii) the restoration of nonindustrial private 
                forest land affected by invasive species and pests;
                    ``(G) the conduct of other management activities, 
                such as the reduction of hazardous fuel use, 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;
                    ``(H) the development of management plans;
                    ``(I) the acquisition by the State of permanent 
                easements to maintain forest cover and protect 
                important forest values; and
                    ``(J) the conduct of other activities approved by 
                the Secretary, in consultation with the State forester 
                and the appropriate Committees.
    ``(h) Failure To Comply.--
            ``(1) In general.--The Secretary shall establish a 
        procedure to recover cost-share payments made under this 
        section in any case in which the recipient of the payment 
        fails--
                    ``(A) to implement a project or activity in 
                accordance with the management plan; or
                    ``(B) comply with any requirement of this section.
            ``(2) Additional authority.--The authority under paragraph 
        (1) shall be in addition to, and not in lieu of, any other 
        authority available to the Secretary.
    ``(i) Reports.--
            ``(1) Interim report.--Not later than 2\1/2\ years after 
        the date on which funds are made available to implement a State 
        priority plan under subsection (c), the State implementing the 
        plan shall submit to the Secretary an interim report describing 
        the status of projects and activities funded under the plan as 
        of that date.
            ``(2) Final report.--Not later than 5 years after the date 
        on which funds are made available to implement a State priority 
        plan under subsection (c), the State implementing the plan 
        shall submit to the Secretary a final report describing the 
        status of all projects and activities funded under the plan as 
        of that date.
    ``(j) Distribution.--
            ``(1) In general.--The Secretary, acting through State 
        foresters, shall distribute funds available for cost sharing 
        under the program based on a nationwide funding formula 
        developed under paragraph (2).
            ``(2) Formula.--In developing the formula referred to in 
        paragraph (1), the Secretary shall--
                    ``(A) assess public benefits that would result from 
                the distribution; and
                    ``(B) consider--
                            ``(i) the total acreage of nonindustrial 
                        private forest land in each State;
                            ``(ii) the potential productivity of that 
                        land, as determined by the Secretary;
                            ``(iii) the number of owners eligible for 
                        cost sharing in each State;
                            ``(iv) the opportunities to enhance 
                        nontimber resources on that land, including--
                                    ``(I) the protection of riparian 
                                buffers and forest wetland;
                                    ``(II) the preservation of fish and 
                                wildlife habitat;
                                    ``(III) the enhancement of soil, 
                                air, and water quality; and
                                    ``(IV) the preservation of 
                                aesthetic quality and opportunities for 
                                outdoor recreation;
                            ``(v) the anticipated demand for timber and 
                        nontimber resources in each State;
                            ``(vi) the need to improve forest health to 
                        minimize the damaging effects of catastrophic 
                        fire, insects, disease, or weather;
                            ``(vii) the need and demand for 
                        agroforestry practices in each State;
                            ``(viii) the need to maintain and enhance 
                        the forest landbase; and
                            ``(ix) the need for afforestation, 
                        reforestation, and timber stand improvement.
    ``(k) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $48,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.

SEC. 807. FOREST LEGACY PROGRAM.

    Section 7(l) of the Cooperative Forestry Management Act of 1978 (16 
U.S.C. 2103c(l)) is amended by adding at the end the following:
            ``(3) State authorization.--Notwithstanding any other 
        provision of this Act, a State may authorize any local 
        government, or any qualified organization that is defined in 
        section 170(h)(3) of the Internal Revenue Code of 1986 and 
        organized for at least 1 of the purposes described in clause 
        (i), (ii), or (iii) of section 170(h)(4)(A) of that Code, to 
        acquire in land in the State, in accordance with this section, 
        1 or more interests in conservation easements to carry out the 
        Forest Legacy Program in the State.''.

SEC. 808. FOREST FIRE RESEARCH CENTERS.

    (a) Findings.--Congress finds that--
            (1) there is an increasing threat of fire to millions of 
        acres of forest land and rangeland throughout the United 
        States;
            (2) this threat is especially great in the interior States 
        of the western United States, where the Forest Service 
        estimates that 39,000,000 acres of National Forest System land 
        are at high risk of catastrophic wildfire;
            (3)(A) the degraded condition of forest land and rangeland 
        is often the consequence of land management practices that 
        emphasize the control and prevention of fires; and
            (B) the land management practices disrupted the occurrence 
        of frequent low-intensity fires that periodically remove 
        flammable undergrowth;
            (4) as a result of the land management practices--
                    (A) some forest land and rangeland in the United 
                States no longer function naturally as ecosystems; and
                    (B) drought cycles and the invasion of insects and 
                disease have resulted in vast areas of dead or dying 
                trees, overstocked stands, and the invasion of 
                undesirable species;
            (5)(A) population movement into wildland-urban interface 
        areas exacerbate the fire danger;
            (B) the increasing number of larger, more intense fires 
        pose grave hazards to human health, safety, property, and 
        infrastructure in the areas; and
            (C) smoke from wildfires, which contain fine particulate 
        matter and other hazardous pollutants, pose substantial health 
        risks to people living in the areas;
            (6)(A) the budgets and resources of Federal, State, and 
        local entities supporting firefighting efforts have been 
        stretched to their limits;
            (B) according to the Comptroller General, the average cost 
        of attempting to put out fires in the interior West grew by 150 
        percent, from $134,000,000 in fiscal year 1986 to $335,000,000 
        in fiscal year 1994; and
            (C) the costs of preparedness, including the costs of 
        maintaining a readiness force to fight fires, rose about 70 
        percent, from $189,000,000 in fiscal year 1992 to $326,000,000 
        in fiscal year 1997;
            (7) diminishing Federal resources (including the 
        availability of personnel) have limited the ability of Federal 
        fire researchers--
                    (A) to respond to management needs; and
                    (B) to use technological advancements for analyzing 
                fire management costs;
            (8) the Federal fire research program is funded at 
        approximately \1/3\ of the amount that is required to address 
        emerging fire problems, resulting in the lack of a cohesive 
        strategy to address the threat of catastrophic wildfires; and
            (9) there is a critical need for cost-effective investments 
        in improved fire management technologies.
    (b) Forest Fire Research Centers.--The Forest and Rangeland 
Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et seq.) is 
amended by adding at the end the following:

``SEC. 11. FOREST FIRE RESEARCH CENTERS.

    ``(a) In General.--Subject to the availability of appropriations, 
the Secretary of Agriculture, acting through the Chief of the Forest 
Service (referred to in this section as the `Secretary') shall 
establish at least 2 forest fire research centers at institutions of 
higher education (which may include research centers in existence on 
the date of enactment of this section) that--
            ``(1) have expertise in natural resource development; and
            ``(2) are located in close proximity to other Federal 
        natural resource, forest management, and land management 
        agencies.
    ``(b) Locations.--Of the forest fire research centers established 
under subsection (a)--
            ``(1) at least 1 center shall be located in California, 
        Idaho, Montana, Oregon, or Washington; and
            ``(2) at least 1 center shall be located in Arizona, 
        Colorado, Nevada, New Mexico, or Wyoming.
    ``(c) Duties.--At each of the forest fire research centers 
established under subsection (a), the Secretary shall provide for--
            ``(1) the conduct of integrative, interdisciplinary 
        research into the ecological, socioeconomic, and environmental 
        impact of fire control and the use of management of ecosystems 
        and landscapes to facilitate fire control; and
            ``(2) the development of mechanisms to rapidly transfer new 
        fire control and management technologies to fire and land 
        managers.
    ``(d) Advisory Committee.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Interior, shall establish a committee composed 
        of fire and land managers and fire researchers to determine the 
        areas of emphasis and establish priorities for research 
        projects conducted at forest fire research centers established 
        under subsection (a).
            ``(2) Administration.--The Federal Advisory Committee Act 
        (5 U.S.C. App.) and section 102 of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7612) 
        shall not apply to the committee established under paragraph 
        (1).
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE PILOT 
              PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the damage caused by wildfire disasters has been 
        equivalent in magnitude to the damage resulting from the 
        Northridge earthquake, Hurricane Andrew, and the recent 
        flooding of the Mississippi River and the Red River;
            (2) more than 20,000 communities in the United States are 
        at risk from wildfire and approximately 11,000 of those 
        communities are located near Federal land;
            (3) the accumulation of heavy forest fuel loads continues 
        to increase as a result of disease, insect infestations, and 
        drought, further increasing the risk of fire each year;
            (4) modification of forest fuel load conditions through the 
        removal of hazardous fuels would--
                    (A) minimize catastrophic damage from wildfires;
                    (B) reduce the need for emergency funding to 
                respond to wildfires; and
                    (C) protect lives, communities, watersheds, and 
                wildlife habitat;
            (5) the hazardous fuels removed from forest land represent 
        an abundant renewable resource, as well as a significant supply 
        of biomass for biomass-to-energy facilities;
            (6) the United States should invest in technologies that 
        promote economic and entrepreneurial opportunities in 
        processing forest products removed through hazardous fuel 
        reduction activities; and
            (7) the United States should--
                    (A) develop and expand markets for traditionally 
                underused wood and other biomass as an outlet for 
                value-added excessive forest fuels; and
                    (B) commit resources to support planning, 
                assessments, and project reviews to ensure that 
                hazardous fuels management is accomplished 
                expeditiously and in an environmentally sound manner.
    (b) Definitions.--In this section:
            (1) Biomass-to-energy facility.--The term ``biomass-to-
        energy facility'' means a facility that uses forest biomass or 
        other biomass as a raw material to produce electric energy, 
        useful heat, or a transportation fuel.
            (2) Eligible community.--The term ``eligible community'' 
        means--
                    (A) any town, township, municipality, or other 
                similar unit of local government (as determined by the 
                Secretary), or any area represented by a nonprofit 
                corporation or institution organized under Federal or 
                State law to promote broad-based economic development, 
                that--
                            (i) has a population of not more than 
                        10,000 individuals;
                            (ii) is located within a county in which at 
                        least 15 percent of the total primary and 
                        secondary labor and proprietor income is 
                        derived from forestry, wood products, and 
                        forest-related industries, such as recreation, 
                        forage production, and tourism; and
                            (iii) is located near forest land, the 
                        condition of which land the Secretary 
                        determines poses a substantial present or 
                        potential hazard to--
                                    (I) the safety of a forest 
                                ecosystem;
                                    (II) the safety of wildlife; or
                                    (III) in the case of a wildfire, 
                                the safety of firefighters, other 
                                individuals, and communities; and
                    (B) any county that is not contained within a 
                metropolitan statistical area that meets the conditions 
                described in clauses (ii) and (iii) of subparagraph 
                (A).
            (3) Forest biomass.--The term ``forest biomass'' means fuel 
        and biomass accumulation from precommercial thinnings, slash, 
        and brush on forest land.
            (4) Hazardous fuel.--The term ``hazardous fuel'' means any 
        excessive accumulation of forest biomass or other biomass on 
        public or private forest land in the wildland-urban interface 
        (as defined by the Secretary) that--
                    (A) is located near an eligible community;
                    (B) is designated as condition class 2 or 3 under 
                the report of the Forest Service entitled ``Protecting 
                People and Sustainable Resources in Fire-Adapted 
                Ecosystems'', dated October 13, 2000) (including any 
                related maps); and
                    (C) the Secretary determines poses a substantial 
                present or potential hazard to--
                            (i) the safety of a forest ecosystem;
                            (ii) the safety of wildlife; or
                            (iii) in the case of wildfire, the safety 
                        of firefighters, other individuals, and 
                        communities.
            (5) 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).
            (6) National fire plan.--The term ``National Fire Plan'' 
        means the plan prepared by the Secretary of Agriculture and the 
        Secretary of the Interior entitled ``Managing the Impact of 
        Wildfires on Communities and the Environment'' and dated 
        September 8, 2000.
            (7) Person.--The term ``person'' includes--
                    (A) a community;
                    (B) an Indian tribe;
                    (C) a small business, microbusiness, or other 
                business that is incorporated in the United States; and
                    (D) a nonprofit organization.
            (8) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Agriculture (or a designee), 
                with respect to National Forest System land and private 
                land in the United States; and
                    (B) the Secretary of the Interior (or a designee) 
                with respect to Federal land under the jurisdiction of 
                the Secretary of the Interior or an Indian tribe.
    (c) Wildfire Prevention and Hazardous Fuel Purchase Pilot 
Program.--
            (1) Grants.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary may make grants to--
                            (i) persons that operate existing or new 
                        biomass-to-energy facilities to offset the 
                        costs incurred by those persons in purchasing 
                        hazardous fuels derived from public and private 
                        forest land adjacent to eligible communities; 
                        and
                            (ii) persons in rural communities that are 
                        seeking ways to improve the use of, or add 
                        value to, hazardous fuels.
                    (B) Selection criteria.--The Secretary shall select 
                recipients for grants under subparagraph (A)(i) based 
                on--
                            (i) planned purchases by the recipients of 
                        hazardous fuels, as demonstrated by the 
                        recipient through the submission to the 
                        Secretary of such assurances as the Secretary 
                        may require;
                            (ii) the level of anticipated benefits of 
                        those purchases in reducing the risk of 
                        wildfires;
                            (iii) the extent to which the biomass-to-
                        energy facility avoids adverse environmental 
                        impacts, including cumulative impacts, over the 
                        expected life of the biomass-to-energy 
                        facility; and
                            (iv) the demonstrable level of anticipated 
                        benefits for eligible communities, including 
                        the potential to develop thermal or electric 
                        energy resources or affordable energy for 
                        communities.
            (2) Grant amounts.--
                    (A) In general.--A grant under subparagraph (A)(i) 
                shall--
                            (i) be based on--
                                    (I) the distance required to 
                                transport hazardous fuels to a biomass-
                                to-energy facility; and
                                    (II) the cost of removal of 
                                hazardous fuels; and
                            (ii) be in an amount that is at least equal 
                        to the product obtained by multiplying--
                                    (I) the number of tons of hazardous 
                                fuels delivered to a grant recipient; 
                                by
                                    (II) an amount that is at least $5 
                                but not more than $10 per ton of 
                                hazardous fuels, as determined by the 
                                Secretary taking into consideration the 
                                factors described in clause (i).
                    (B) Limitation on individual grants.--
                            (i) In general.--Except as provided in 
                        clause (ii), a grant under subparagraph (A) 
                        shall not exceed $1,500,000 for any biomass-to-
                        energy facility for any fiscal year.
                            (ii) Small biomass-to-energy facilities.--A 
                        biomass-to-energy facility that has an annual 
                        production of 5 megawatts or less shall not be 
                        subject to the limitation under clause (i).
            (3) Monitoring of grant recipient activities.--
                    (A) In general.--As a condition of receipt of a 
                grant under this subsection, a grant recipient shall 
                keep such records as the Secretary may require, 
                including records that--
                            (i) completely and accurately disclose the 
                        use of grant funds; and
                            (ii) describe all transactions involved in 
                        the purchase of hazardous fuels derived from 
                        forest land.
                    (B) Access.--On notice by the Secretary, the 
                operator of a biomass-to-energy facility that purchases 
                or uses hazardous fuels with funds from a grant under 
                this subsection shall provide the Secretary with--
                            (i) reasonable access to the biomass-to-
                        energy facility; and
                            (ii) an opportunity to examine the 
                        inventory and records of the biomass-to-energy 
                        facility.
            (4) Monitoring of effect of treatments.--
                    (A) In general.--To determine and document the 
                environmental impact of hazardous fuel removal, the 
                Secretary shall monitor--
                            (i) environmental impacts of activities 
                        carried out under this subsection; and
                            (ii) Federal land from which hazardous 
                        fuels are removed and sold to a biomass-to-
                        energy facility under this subsection.
                    (B) Employment.--
                            (i) In general.--The Comptroller General of 
                        the United States shall monitor--
                                    (I) the number of jobs created in 
                                or near eligible communities as a 
                                result of the implementation of this 
                                subsection;
                                    (II) the opportunities created for 
                                small businesses and microbusinesses as 
                                a result of the implementation of this 
                                subsection;
                                    (III) the types and amounts of 
                                energy supplies created as a result of 
                                the implementation of this subsection; 
                                and
                                    (IV) energy prices for eligible 
                                communities.
                            (ii) Report.--Beginning in fiscal year 
                        2003, the Comptroller General of the United 
                        States shall submit to the Committee on Energy 
                        and Natural Resources and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate and the Committee on Resources and the 
                        Committee on Agriculture of the House of 
                        Representatives an annual report that describes 
                        the information obtained through monitoring 
                        under clause (i).
            (5) Review and report.--
                    (A) In general.--Not later than September 30, 2004, 
                the Comptroller General shall submit to each of the 
                committees described in paragraph (4)(B)(ii) a report 
                that describes the results and effectiveness of the 
                pilot program.
                    (B) Reports by secretary.--The Secretary shall 
                submit to each of the committees described in paragraph 
                (4)(B)(ii) an annual report describing the results of 
                the pilot program that includes--
                            (i) an identification of the size of each 
                        biomass-to-energy facility that receives a 
                        grant under this section; and
                            (ii) the haul radius associated with each 
                        grant.
                    (C) Technical feasibility report.--Not later than 
                December 1, 2003, the Secretary of Agriculture, in 
                cooperation with the Forest Products Lab and the 
                Economic Action Program of the Forest Service, shall 
                submit to each of the committees described in paragraph 
                (4)(B)(ii) a report that describes--
                            (i) the technical feasibility of the use by 
                        small-scale biomass energy units of small-
                        diameter trees and forest residues as a source 
                        of fuel;
                            (ii) the environmental impacts relating to 
                        the use of small-diameter trees and forest 
                        residues as described in clause (i); and
                            (iii) any social or economic benefits of 
                        small-scale biomass energy units for rural 
                        communities.
            (6) Grants to other persons.--
                    (A) In general.--In addition to biomass-to-energy 
                facilities, the Secretary may make grants under this 
                subsection to persons in rural communities that are 
                seeking ways to improve the use of, or add value to, 
                hazardous fuels.
                    (B) Selection.--The Secretary shall select 
                recipients of grants under subparagraph (A) based on--
                            (i) the extent to which the grant recipient 
                        avoids environmental impacts; and
                            (ii) the demonstrable level of anticipated 
                        benefits to rural communities, including 
                        opportunities for small businesses and 
                        microbusinesses and the potential for new job 
                        creation, that may result from the provision of 
                        the grant.
                    (C) Monitoring.--With respect to a grant made under 
                this paragraph--
                            (i) the monitoring provisions described in 
                        paragraph (3) and applicable to biomass-to-
                        energy facilities shall apply; and
                            (ii) the Secretary shall monitor the 
                        environmental impacts of projects funded by 
                        grants provided under this paragraph.
            (7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 2002 through 2006.
    (d) Long-Term Forest Stewardship Contracts for Hazardous Fuels 
Removal.--
            (1) Annual assessment of treatment acreage.--
                    (A) In general.--Subject to the availability of 
                appropriations, not later than March 1 of each of 
                fiscal years 2002 through 2006, the Secretary shall 
                submit to Congress an assessment of the number of acres 
                of National Forest System land recommended to be 
                treated during the subsequent fiscal year using 
                stewardship end result contracts authorized by 
                paragraph (3).
                    (B) Components.--The assessment shall--
                            (i) be based on the treatment schedules 
                        contained in the report entitled ``Protecting 
                        People and Sustaining Resources in Fire-Adapted 
                        Ecosystems'', dated October 13, 2000, and 
                        incorporated into the National Fire Plan;
                            (ii) identify the acreage by condition 
                        class, type of treatment, and treatment year to 
                        achieve the restoration goals outlined in the 
                        report within 10-, 15-, and 20-year time 
                        periods;
                            (iii) give priority to condition class 3 
                        areas (as described in subsection (b)(4)(B)), 
                        including modifications in the restoration 
                        goals based on the effects of--
                                    (I) fire;
                                    (II) hazardous fuel treatments 
                                under the National Fire Plan; or
                                    (III) updates in data;
                            (iv) provide information relating to the 
                        type of material and estimated quantities and 
                        range of sizes of material that shall be 
                        included in the treatments;
                            (v) describe the land allocation categories 
                        in which the contract authorities shall be 
                        used; and
                            (vi) give priority to areas described in 
                        subsection (b)(4)(A).
            (2) Funding recommendation.--The Secretary shall include in 
        the annual assessment under paragraph (1) a request for funds 
        sufficient to implement the recommendations contained in the 
        assessment using stewardship end result contracts described in 
        paragraph (3) in any case in which the Secretary determines 
        that the objectives of the National Fire Plan would best be 
        accomplished through forest stewardship end result contracting.
            (3) Stewardship end result contracting.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary may enter into not more 
                than 28 stewardship end result contracts to implement 
                the National Fire Plan on National Forest System land 
                based on the treatment schedules provided in the annual 
                assessments conducted under paragraph (1)(B)(i).
                    (B) Period of contracts.--The contracting goals and 
                authorities described in subsections (b) through (g) of 
                section 347 of the Department of the Interior and 
                Related Agencies Appropriations Act, 1999 (commonly 
                known as the ``Stewardship End Result Contracting 
                Demonstration Project'') (16 U.S.C. 2104 note; Public 
                Law 105-277), shall apply to contracts entered into 
                under this paragraph, except that 14 of the 28 
                contracts entered into under subparagraph (A) shall be 
                subject to the conditions that--
                            (i) funds from the contract, and any offset 
                        value of forest products that exceeds the value 
                        of the resource improvement treatments carried 
                        out under the contract, shall be deposited in 
                        the Treasury of the United States;
                            (ii) section 347(c)(3)(A) of the Department 
                        of the Interior and Related Agencies 
                        Appropriations Act, 1999 (commonly known as the 
                        ``Stewardship End Result Contracting 
                        Demonstration Project'') (16 U.S.C. 2104 note; 
                        Public Law 105-277) shall not apply to those 
                        contracts; and
                            (iii) the implementation shall be 
                        accomplished using separate contracts for the 
                        harvesting or collection, and sale, of 
                        merchantable material.
                    (C) Status report.--Beginning with the assessment 
                required under paragraph (1) for fiscal year 2003, the 
                Secretary shall include in the annual assessment under 
                paragraph (1) a status report of the stewardship end 
                result contracts entered into under this paragraph.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection such sums as 
        are necessary for each of fiscal years 2002 through 2006.
    (e) Excluded Areas.--In carrying out this section, the Secretary 
shall--
            (1) because of sensitivity of natural, cultural, or 
        historical resources, designate areas to be excluded from any 
        program under this section; and
            (2) carry out this section only in the wildland-urban 
        interface, as defined by the Secretary.
    (f) Termination of Authority.--The authority provided under this 
section shall terminate on September 30, 2006.

SEC. 810. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 9 (16 U.S.C. 2105) the following:

``SEC. 9A. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Agreement.--The term `Agreement' means the Chesapeake 
        2000 Agreement, an interstate agreement the purpose of which is 
        to correct the nutrient-related problems in the Chesapeake Bay 
        by 2010.
            ``(2) Bay-area state.--
                    ``(A) In general.--The term `Bay-area State' means 
                a State any part of which is located in the watershed 
                of the Chesapeake Bay.
                    ``(B) Inclusion.--The term `Bay-area State' 
                includes the District of Columbia.
            ``(3) Chesapeake bay executive council.--The term `Council' 
        means the Chesapeake Bay Executive Council.
            ``(4) Director.--The term `Director' means the Director of 
        Chesapeake Bay watershed forestry efforts designated under 
        subsection (b)(2)(A).
            ``(5) Eligible entity.--The term `eligible entity' means--
                    ``(A) the government of a Bay-area State (or a 
                political subdivision); and
                    ``(B) an organization such as an educational 
                institution or a community or conservation 
                organization.
            ``(6) Eligible project.--The term `eligible project' means 
        a project the purpose of which is to--
                    ``(A) improve wildlife habitat and water quality 
                through the establishment, protection, and stewardship 
                of riparian and wetland forests;
                    ``(B) improve the capacity of a State or nonprofit 
                organization to implement forest conservation, 
                restoration, and stewardship actions;
                    ``(C) develop and implement a watershed management 
                plan that addresses forest conservation and restoration 
                actions;
                    ``(D) provide outreach and assistance to private 
                landowners and communities to restore or protect 
                watersheds through the enhancement of forests;
                    ``(E) develop and implement communication, 
                education, or technology transfer programs that broaden 
                public understanding of the value of trees and forests 
                and management of trees and forests in sustaining and 
                restoring watershed health; and
                    ``(F) conduct applied research, inventory, 
                assessment, or monitoring activities.
            ``(7) Program.--The term `program' means the Chesapeake Bay 
        watershed forestry program established under subsection (b)(1).
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish the 
        Chesapeake Bay watershed forestry program to provide technical 
        and financial assistance to the Council, Bay-area States, local 
        governments, and nonprofit organizations to carry out eligible 
        projects.
            ``(2) Director.--
                    ``(A) In general.--The Secretary shall designate an 
                employee of the Forest Service to serve as the Director 
                for Chesapeake Bay watershed forestry efforts.
                    ``(B) Duties.--The Director shall work in 
                cooperation with the Secretary to carry out the 
                purposes of the program described in paragraph (1).
    ``(c) Chesapeake Watershed Forestry Grants.--
            ``(1) In general.--In carrying out the program, the 
        Secretary, in coordination with the Director, may provide 
        grants to assist eligible entities in carrying out eligible 
        projects.
            ``(2) Cost sharing.--The amount of a grant awarded under 
        this subsection shall not exceed 75 percent of the total cost 
        of the eligible project.
            ``(3) Additional requirements.--The Secretary, in 
        consultation with the Director, may prescribe any requirements 
        and procedures necessary to carry out this subsection.
    ``(d) Chesapeake Watershed Forest Assessment and Conservation 
Study.--
            ``(1) In general.--The Director, in cooperation with the 
        Council, shall conduct a Chesapeake Bay watershed forestry 
        research and assessment study that--
                    ``(A) assesses the extent and location of forest 
                loss and fragmentation;
                    ``(B) identifies critical forest land that should 
                be protected to achieve the purposes of the Agreement;
                    ``(C) prioritizes afforestation needs;
                    ``(D) recommends--
                            ``(i) management strategies based on 
                        actions carried out and information obtained 
                        under subparagraphs (A) through (C) to expand 
                        conservation and stewardship of the forest 
                        ecosystem in the Chesapeake Bay watershed; and
                            ``(ii) ways in which the Federal Government 
                        can work with State, county, local, and private 
                        entities to conserve critical forests, 
                        including recommendations on the feasibility of 
                        establishing new units of the National Forest 
                        System; and
                    ``(E) identifies further inventory, assessment, and 
                research needed to achieve the purposes of the 
                Agreement.
            ``(2) Report.--Not later than 2 years after the date of 
        enactment of this section, the Director shall submit to 
        Congress a comprehensive report on the results of the study 
        under paragraph (1).
    ``(e) Chesapeake Bay Urban Watershed Forestry Research Cooperative 
Program.--
            ``(1) In general.--The Secretary, in cooperation with the 
        Director, may establish a comprehensive Chesapeake Bay urban 
        watershed forestry research cooperative program to provide 
        technical and financial assistance to eligible entities.
            ``(2) Purposes.--The purposes of the cooperative program 
        shall be--
                    ``(A) to meet the need of the urban population of 
                the Chesapeake Bay watershed in managing forest land in 
                urban and urbanizing areas through a combination of--
                            ``(i) applied research;
                            ``(ii) demonstration projects;
                            ``(iii) implementation guidelines; and
                            ``(iv) training and education;
                    ``(B) to coalesce information from local managers, 
                Federal, State, and private researchers, and state-of-
                the-art technology to answer critical urban forestry 
                questions relating to air and water quality and 
                watershed health; and
                    ``(C) to provide a link between research and urban 
                and community forestry policy, planning, and 
                management.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $3,000,000 for fiscal year 2002; and
            ``(2) $3,500,000 for each of fiscal years 2003 through 
        2006.''.

SEC. 811. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) Findings.--Congress finds that--
            (1) the severity and intensity of wildfires have 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 to reduce the risk of 
        catastrophic wildfires;
            (3) wildfires threaten not only the forested resources of 
        the United States, but also the thousands of communities 
        intermingled with wildland in the wildland-urban interface;
            (4) wetland forests provide essential ecological services, 
        such as filtering pollutants, buffering important rivers and 
        estuaries, and minimizing flooding, that make the protection 
        and restoration of those forests worthy of special focus;
            (5) the National Fire Plan, if implemented to achieve 
        appropriate priorities, is the proper, coordinated, and most 
        effective means to address the issue of wildfires;
            (6) while adequate authorities exist to address the problem 
        of wildfires at the landscape level on Federal land, there is 
        limited authority to take action on most private land where the 
        largest threat to life and property lies; and
            (7) there is a significant Federal interest in enhancing 
        the protection of communities from wildfire.
    (b) Enhanced Community Fire 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 Relating to Wildfire Threats.--
Notwithstanding section 7 of the Federal Fire Prevention and Control 
Act of 1974 (15 U.S.C. 2206), the Secretary may cooperate with State 
foresters and equivalent State officials to--
            ``(1) assist in the prevention, control, suppression, and 
        prescribed use of fires (including through the provision of 
        financial, technical, and related assistance);
            ``(2) protect communities from wildfire threats;
            ``(3) enhance the growth and maintenance of trees and 
        forests in a manner that promotes overall forest health; and
            ``(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) In general.--The Secretary shall establish a program 
        to be known as the `community and private land fire assistance 
        program' (referred to in this section as the `Program')--
                    ``(A) to focus the Federal role in promoting 
                optimal firefighting efficiency at the Federal, State, 
                and local levels;
                    ``(B) to provide increased assistance to Federal 
                projects that establish landscape level protection from 
                wildfires;
                    ``(C) to expand outreach and education programs 
                concerning fire prevention to homeowners and 
                communities; and
                    ``(D) to establish defensible space against 
                wildfires around the homes and property of private 
                landowners.
            ``(2) Administration and implementation.--The Program shall 
        be administered by the Secretary and, with respect to non-
        Federal land described in paragraph (3), carried out through 
        the State forester or equivalent State official.
            ``(3) Components.--The Secretary may carry out under the 
        Program, on National Forest System land and non-Federal land 
        determined by the Secretary in consultation with State 
        foresters and Committees--
                    ``(A) fuel hazard mitigation and prevention;
                    ``(B) invasive species management;
                    ``(C) multiresource wildfire and community 
                protection planning;
                    ``(D) community and landowner education 
                enterprises, including the program known as `FIREWISE';
                    ``(E) market development and expansion;
                    ``(F) improved use of wood products; and
                    ``(G) restoration projects.
            ``(4) Priority.--In entering into contracts to carry out 
        projects under the Program, the Secretary shall give priority 
        to contracts with local persons or entities.
    ``(c) Authority.--The authority provided under this section shall 
be in addition to any authority provided under section 10.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $35,000,000 for 
each of fiscal years 2002 through 2006.''.

SEC. 812. WATERSHED FORESTRY ASSISTANCE PROGRAM.

    (a) Findings.--Congress finds that--
            (1) there has been a dramatic shift in public attitudes and 
        perceptions about forest management, particularly in the 
        understanding and practice of sustainable forest management;
            (2) it is commonly recognized that proper stewardship of 
        forest land is essential to--
                    (A) sustain and restore watershed health;
                    (B) produce clean water; and
                    (C) maintain healthy aquatic systems;
            (3) forests are increasingly important to the protection 
        and sustainability of drinking water supplies for more than 1/2 
        of the population of the United States;
            (4) forest loss and fragmentation in urbanizing areas are 
        contributing to flooding, degradation of urban stream habitat 
        and water quality, and public health concerns;
            (5) scientific evidence and public awareness with respect 
        to the manner in which forest management can positively affect 
        water quality and quantity, and the manner in which trees, 
        forests, and forestry practices (such as forest buffers) can 
        serve as solutions to water quality problems in rural and urban 
        areas, are increasing;
            (6) the application of forestry best management practices 
        developed at the State level has been found to greatly 
        facilitate the achievement of water quality goals;
            (7) significant efforts are underway to revisit and make 
        improvements on needed forestry best management practices;
            (8) according to the report of the Forest Service numbered 
        FS-660 and entitled ``Water and the Forest Service'', forests 
        are a requirement for maintenance of clean water because--
                    (A) approximately 66 percent of the freshwater 
                resources of the United States originate on forests; 
                and
                    (B) forests cover approximately 1/3 of the land 
                area of the United States;
            (9) because almost 500,000,000 acres, or approximately 2/3, 
        of the forest land of the United States is owned by non-Federal 
        entities, a significant burden is placed on private forest 
        landowners to provide or maintain the clean water needed by the 
        public for drinking, swimming, fishing, and a number of other 
        water uses;
            (10) because the decisions made by individual landowners 
        and communities will affect the ability to maintain the health 
        of rural and urban watersheds in the future, there is a need to 
        integrate forest management, conservation, restoration, and 
        stewardship in watershed management;
            (11) although water management is the primary 
        responsibility of States, the Federal Government has a 
        responsibility to promote and encourage the ability of States 
        and private forest landowners to sustain the delivery of clean, 
        abundant water from forest land;
            (12) as of the date of enactment of this Act, the 
        availability of Federal assistance to support forest landowners 
        to achieve the water goals identified in many Federal laws 
        (including regulations) is lacking; and
            (13) increased research for, education for, and technical 
        and financial assistance provided to, forest landowners and 
        communities that relate to the protection of watersheds and 
        improvement of water quality, are needed to realize the 
        expectations of the general public for clean water and healthy 
        aquatic systems.
    (b) Purposes.--The purposes of this section are to--
            (1) improve the understanding of landowners and the public 
        with respect to the relationship between water quality and 
        forest management;
            (2) encourage landowners to maintain tree cover and use 
        tree plantings and vegetative treatments as creative solutions 
        to water quality and quantity problems associated with varying 
        land uses;
            (3) enhance and complement source water protection in 
        watersheds that provide drinking water for municipalities;
            (4) establish new partnerships and collaborative watershed 
        approaches to forest management, stewardship, and protection; 
        and
            (5) provide technical and financial assistance to States to 
        deliver a coordinated program that through the provision of 
        technical, financial, and educational assistance to qualified 
        individuals and entities--
                    (A) enhances State forestry best management 
                practices programs; and
                    (B) protects and improves water quality on forest 
                land.
    (c) Program.--The Cooperative Forestry Assistance Act of 1978 is 
amended by inserting after section 5A (as added by section 805) the 
following:

``SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.

    ``(a) Establishment.--Subject to the availability of 
appropriations, the Secretary shall establish a watershed forestry 
assistance program (referred to in this section as the `program') to 
provide to States, through State foresters (as defined in section 6A), 
technical, financial, and related assistance to--
            ``(1) expand forest stewardship capacities and activities 
        through State forestry best management practices and other 
        means at the State level; and
            ``(2) prevent water quality degradation, and address 
        watershed issues, on non-Federal forest land.
    ``(b) Watershed Forestry Education, Technical Assistance, and 
Planning.--
            ``(1) Plan.--
                    ``(A) In general.--In carrying out the program, the 
                Secretary shall cooperate with State foresters to 
                develop a plan, to be administered by the Secretary and 
                implemented by State foresters, to provide technical 
                assistance to assist States in preventing and 
                mitigating water quality degradation.
                    ``(B) Participation.--In developing the plan under 
                subparagraph (A), the Secretary shall encourage 
                participation of interested members of the public 
                (including nonprofit private organizations and local 
                watershed councils).
            ``(2) Components.--The plan described in paragraph (1) 
        shall include provisions to--
                    ``(A) build and strengthen watershed partnerships 
                focusing on forest land at the national, State, 
                regional, and local levels;
                    ``(B) provide State forestry best management 
                practices and water quality technical assistance 
                directly to private landowners;
                    ``(C) provide technical guidance relating to water 
                quality management through forest management in 
                degraded watersheds to land managers and policymakers;
                    ``(D)(i) complement State nonpoint source 
                assessment and management plans established under 
                section 319 of the Federal Water Pollution Control Act 
                (33 U.S.C. 1329); and
                    ``(ii) provide enhanced opportunities for 
                coordination and cooperation among Federal and State 
                agencies having responsibility for water and watershed 
                management under that Act; and
                    ``(E) provide enhanced forest resource data and 
                support for improved implementation of State forestry 
                best management practices, including--
                            ``(i) designing and conducting 
                        effectiveness and implementation studies; and
                            ``(ii) meeting in-State water quality 
                        assessment needs, such as the development of 
                        water quality models that correlate the 
                        management of forest land to water quality 
                        measures and standards.
    ``(c) Watershed Forestry Cost-Share Program.--
            ``(1) Establishment.--In carrying out the program, the 
        Secretary shall establish a watershed forestry cost-share 
        program, to be administered by the Secretary and implemented by 
        State foresters, to provide grants and other assistance for 
        eligible programs and projects described in paragraph (2).
            ``(2) Eligible programs and projects.--A community, 
        nonprofit group, or landowner may receive a grant or other 
        assistance under this subsection to carry out a State forestry 
        best management practices program or a watershed forestry 
        project if the program or project, as determined by the 
        Secretary--
                    ``(A) is consistent with--
                            ``(i) State nonpoint source assessment and 
                        management plan objectives established under 
                        section 319 of the Federal Water Pollution 
                        Control Act (33 U.S.C. 1329); and
                            ``(ii) the cost-share requirements of this 
                        section; and
                    ``(B) is designed to address critical forest 
                stewardship, watershed protection, and restoration 
                needs of a State through--
                            ``(i) the use of trees and forests as 
                        solutions to water quality problems in urban 
                        and agricultural areas;
                            ``(ii) community-based planning, 
                        involvement, and action through State, local 
                        and nonprofit partnerships;
                            ``(iii) the application of and 
                        dissemination of information on forestry best 
                        management practices relating to water quality;
                            ``(iv) watershed-scale forest management 
                        activities and conservation planning; and
                            ``(v) the restoration of wetland and stream 
                        side forests and establishment of riparian 
                        vegetative buffers.
            ``(3) Allocation.--
                    ``(A) In general.--After taking into consideration 
                the criteria described in subparagraph (B), the 
                Secretary shall allocate among States, for award by 
                State foresters under paragraph (4), the amounts made 
                available to carry out this subsection.
                    ``(B) Criteria.--The criteria referred to in 
                subparagraph (A) are--
                            ``(i) the number of acres of forest land, 
                        and land that could be converted to forest 
                        land, in each State;
                            ``(ii) the nonpoint source assessment and 
                        management plans of each State, as developed 
                        under section 319 of the Federal Water 
                        Pollution Control Act (33 U.S.C. 1329);
                            ``(iii) the acres of wetland forests that 
                        have been lost or degraded or cases in which 
                        forests may play a role in restoring wetland 
                        resources;
                            ``(iv) the number of non-Federal forest 
                        landowners in each State; and
                            ``(v) the extent to which the priorities of 
                        States are designed to achieve a reasonable 
                        range of the purposes of the program and, as a 
                        result, contribute to the water-related goals 
                        of the United States.
            ``(4) Award of grants and assistance.--
                    ``(A) In general.--In implementing the program 
                under this subsection, the State forester, in 
                coordination with the State Coordinating Committee 
                established under section 19(b), shall provide annual 
                grants and cost-share assistance to communities, 
                nonprofit groups, and landowners to carry out eligible 
                programs and projects described in paragraph (2).
                    ``(B) Application.--A community, nonprofit group, 
                or landowner that seeks to receive cost-share 
                assistance under this subsection shall submit to the 
                State forester an application, in such form and 
                containing such information as the State forester may 
                prescribe, for the assistance.
                    ``(C) Prioritization.--In awarding cost-share 
                assistance under this subsection, the Secretary shall 
                give priority to eligible programs and projects that 
                are identified by the State foresters and the State 
                Stewardship Committees as having a greater need for 
                assistance.
                    ``(D) Award.--On approval by the Secretary of an 
                application under subparagraph (B), the State forester 
                shall award to the applicant, from funds allocated to 
                the State under paragraph (3), such amount of cost-
                share assistance as is requested in the application.
            ``(5) Cost sharing.--
                    ``(A) Federal share.--The Federal share of the cost 
                of carrying out any eligible program or project under 
                this subsection shall not exceed 75 percent, of which 
                not more than 50 percent may be in the form of 
                assistance provided under this subsection.
                    ``(B) Non-federal share.--The non-Federal share of 
                the cost of carrying out any eligible program or 
                project under this subsection may be provided in the 
                form of cash, services, or in-kind contributions.
    ``(d) Watershed Forester.--A State may use a portion of the funds 
made available to the State under subsection (e) to establish and fill 
a position of `Watershed Forester' to lead State-wide programs and 
coordinate watershed-level projects.
    ``(e) Funding.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $20,000,000 for each of fiscal years 
        2002 through 2006.
            ``(2) Allocation.--Of the funds made available under 
        paragraph (1)--
                    ``(A) 75 percent shall be used to carry out 
                subsection (c); and
                    ``(B) 25 percent shall be used to carry out 
                provisions of this section other than subsection 
                (c).''.

SEC. 813. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE INITIATIVE.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 7 (16 U.S.C. 2103c) the following:

``SEC. 7A. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        State (including a political subdivision) or nonprofit 
        organization that the Secretary determines under subsection 
        (c)(1)(A)(ii) is eligible to receive a grant under subsection 
        (c)(2).
            ``(2) 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).
            ``(3) Private forest land.--The term `private forest land' 
        means land that is--
                    ``(A)(i) covered by trees; or
                    ``(ii) suitable for growing trees, as determined by 
                the Secretary;
                    ``(B) suburban, as determined by the Secretary; and
                    ``(C) owned by--
                            ``(i) a private entity; or
                            ``(ii) an Indian tribe.
            ``(4) Program.--The term `program' means the Suburban and 
        Community Forestry and Open Space Initiative established by 
        subsection (b).
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    ``(b) Establishment.--
            ``(1) In general.--There is established within the Forest 
        Service a program to be known as the `Suburban and Community 
        Forestry and Open Space Initiative'.
            ``(2) Purpose.--The purpose of the program is to provide 
        assistance to eligible entities to carry out projects and 
        activities to--
                    ``(A) conserve private forest land and maintain 
                working forests in suburban environments; and
                    ``(B) provide communities a means by which to 
                address significant suburban sprawl.
    ``(c) Grant Program.--
            ``(1) Identification of eligible private forest land.--
                    ``(A) In general.--The Secretary, in consultation 
                with State foresters or equivalent State officials and 
                State or county planning offices, shall establish 
                criteria for--
                            ``(i) the identification, subject to 
                        subparagraph (B), of private forest land in 
                        each State that may be conserved under this 
                        section; and
                            ``(ii) the identification of eligible 
                        entities.
                    ``(B) Conditions for eligible private forest 
                land.--Private forest land identified for conservation 
                under subparagraph (A)(i) shall be land that is--
                            ``(i) located in an area that is affected, 
                        or threatened to be affected, by significant 
                        suburban sprawl, as determined by--
                                    ``(I) the appropriate State 
                                forester or equivalent State official; 
                                and
                                    ``(II) the planning office of the 
                                State or county in which the private 
                                forest land is located; and
                            ``(ii) threatened by present or future 
                        conversion to nonforest use.
            ``(2) Grants.--
                    ``(A) Projects and activities.--
                            ``(i) In general.--In carrying out this 
                        section, the Secretary shall award grants to 
                        eligible entities to carry out a project or 
                        activity described in clause (ii).
                            ``(ii) Types.--A project or activity 
                        referred to in clause (i) is a project or 
                        activity that--
                                    ``(I) is carried out to conserve 
                                private forest land and contain 
                                significant suburban sprawl; and
                                    ``(II) provides for guaranteed 
                                public access to land on which the 
                                project or activity is carried out, 
                                unless the appropriate State forester 
                                or equivalent State official and the 
                                State or county planning office 
                                request, and provide justification for 
                                the request, that the requirement be 
                                waived.
                    ``(B) Application; stewardship plan.--An eligible 
                entity that seeks to receive a grant under this section 
                shall submit for approval--
                            ``(i) to the Secretary, in such form as the 
                        Secretary shall prescribe, an application for 
                        the grant (including a description of any 
                        private forest land to be conserved using funds 
                        from the grant); and
                            ``(ii) to the State forester or equivalent 
                        State official, a stewardship plan that 
                        describes the manner in which any private 
                        forest land to be conserved using funds from 
                        the grant will be managed in accordance with 
                        this section.
                    ``(C) Approval or disapproval.--
                            ``(i) In general.--Subject to clause (ii), 
                        as soon as practicable after the date on which 
                        the Secretary receives an application under 
                        subparagraph (B)(i) or a resubmission under 
                        subclause (II)(bb), the Secretary shall--
                                    ``(I)(aa) approve the application; 
                                and
                                    ``(bb) award a grant to the 
                                applicant; or
                                    ``(II)(aa) disapprove the 
                                application; and
                                    ``(bb) provide the applicant a 
                                statement that describes the reasons 
                                why the application was disapproved 
                                (including a deadline by which the 
                                applicant may resubmit the 
                                application).
                            ``(ii) Priority.--In awarding grants under 
                        this section, the Secretary shall give priority 
                        to applicants that propose to fund projects and 
                        activities that promote, in addition to the 
                        primary purposes of conserving private forest 
                        land and containing significant suburban 
                        sprawl--
                                    ``(I) the sustainable management of 
                                private forest land;
                                    ``(II) community and school 
                                education programs and curricula 
                                relating to sustainable forestry; and
                                    ``(III) community involvement in 
                                determining the objectives for projects 
                                or activities that are funded under 
                                this section.
            ``(3) Cost sharing.--
                    ``(A) In general.--The amount of a grant awarded 
                under this section to carry out a project or activity 
                shall not exceed 50 percent of the total cost of the 
                project or activity.
                    ``(B) Assurances.--As a condition of receipt of a 
                grant under this section, an eligible entity shall 
                provide to the Secretary such assurances as the 
                Secretary determines are sufficient to demonstrate that 
                the share of the cost of each project or activity that 
                is not funded by the grant awarded under this section 
                has been secured.
                    ``(C) Form.--The share of the cost of carrying out 
                any project or activity described in subparagraph (A) 
                that is not funded by a grant awarded under this 
                section may be provided in cash or in kind.
    ``(d) Use of Grant Funds for Purchases of Land or Easements.--
            ``(1) Purchases.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds made available, and grants 
                awarded, under this section may be used to purchase 
                private forest land or interests in private forest land 
                (including conservation easements) only from willing 
                sellers at fair market value.
                    ``(B) Sales at less than fair market value.--A sale 
                of private forest land or an interest in private forest 
                land at less than fair market value shall be permitted 
                only on certification by the landowner that the sale is 
                being entered into willingly and without coercion.
            ``(2) Title.--Title to private forest land or an interest 
        in private forest land purchased under paragraph (1) may be 
        held, as determined appropriate by the Secretary, by--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) a nonprofit organization.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $50,000,000 for fiscal year 2003; and
            ``(2) such sums as are necessary for each fiscal year 
        thereafter.''.

SEC. 814. GENERAL PROVISIONS.

    Section 13 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2109) is amended by striking subsection (f) and inserting the 
following:
    ``(f) Grants, Contracts, and Other Agreements.--
            ``(1) In general.--In accordance with paragraph (2), the 
        Secretary may make such grants and enter into such contracts, 
        agreements, or other arrangements as the Secretary determines 
        are necessary to carry out this Act.
            ``(2) Assistance.--Notwithstanding any other provision of 
        this Act, the Secretary, with the concurrence of the applicable 
        State forester or equivalent State official, may provide 
        assistance under this Act directly to any public or private 
        entity, organization, or individual--
                    ``(A) through a grant; or
                    ``(B) by entering into a contract or cooperative 
                agreement.''.

SEC. 815. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

    Section 19(b) of the Cooperative Forestry Assistance Act of 1978 
(16 U.S.C. 2113(b)) is amended--
            (1) in paragraph (1)(B)(i), by inserting ``United States 
        Fish and Wildlife Service,'' before ``Forest Service''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) submit to the Secretary, the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate, an annual report that provides--
                            ``(i) the list of members on the Committee 
                        described in paragraph (1)(B); and
                            ``(ii) for those members that may be 
                        included on the Committee, but are not included 
                        because a determination that it is not 
                        practicable to include the members has been 
                        made, an explanation of the reasons for that 
                        determination.''.

SEC. 816. USDA NATIONAL AGROFORESTRY CENTER.

    (a) In General.--Section 1243 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note; Public Law 
101-624) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.'';

        and
            (2) in subsection (a)--
                    (A) by striking ``Semiarid'' and inserting ``USDA 
                National''; and
                    (B) by striking ``Semiarid'' and inserting ``USDA 
                National''.
    (b) Program.--Section 1243(b) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note; Public Law 
101-624) is amended--
            (1) by inserting ``the Institute of Tropical Forestry and 
        the Institute of Pacific Islands Forestry of the Forest 
        Service,'' after ``entities,'';
            (2) in paragraph (1), by striking ``on semiarid lands'';
            (3) in paragraph (3), by striking ``from semiarid land'';
            (4) by striking paragraph (4) and inserting the following:
            ``(4) collect information on the design and installation of 
        forested riparian and upland buffers to--
                    ``(A) protect water quality; and
                    ``(B) manage water flow;'';
            (5) in paragraphs (6) and (7), by striking ``on semiarid 
        lands'' each place it appears;
            (6) by striking paragraph (8) and inserting the following:
            ``(8) provide international leadership in the worldwide 
        development and exchange of agroforestry practices;'';
            (7) in paragraph (9), by striking ``on semiarid lands'';
            (8) in paragraph (10), by striking ``and'' at the end;
            (9) in paragraph (11), by striking the period at the end 
        and inserting ``; and''; and
            (10) by adding at the end the following:
            ``(12) quantify the carbon storage potential of 
        agroforestry practices such as--
                    ``(A) windbreaks;
                    ``(B) forested riparian buffers;
                    ``(C) silvopasture timber and grazing systems; and
                    ``(D) alley cropping.''.

SEC. 817. OFFICE OF TRIBAL RELATIONS.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 19 (16 U.S.C. 2113) the following:

``SEC. 19A. OFFICE OF TRIBAL RELATIONS.

    ``(a) Definitions.--In this section:
            ``(1) 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).
            ``(2) Office.--The term `Office' means the Office of Tribal 
        Relations established under subsection (b)(1).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish within the 
        Forest Service the Office of Tribal Relations.
            ``(2) Director.--The Office shall be headed by a Director, 
        who shall--
                    ``(A) be appointed by the Secretary, in 
                consultation with interested Indian tribes; and
                    ``(B) report directly to the Secretary.
            ``(3) Administrative support.--The Secretary shall ensure, 
        to the maximum extent practicable, that adequate staffing and 
        funds are made available to enable the Director to carry out 
        the duties described in subsection (c).
    ``(c) Duties of the Director.--
            ``(1) In general.--The Director shall--
                    ``(A) provide advice to the Secretary on all 
                issues, policies, actions, and programs of the Forest 
                Service that affect Indian tribes, including--
                            ``(i) consultation with tribal governments;
                            ``(ii) programmatic review for equitable 
                        tribal participation;
                            ``(iii) monitoring and evaluation of 
                        relations between the Forest Service and Indian 
                        tribes;
                            ``(iv) the coordination and integration of 
                        programs of the Forest Service that affect, or 
                        are of interest to, Indian tribes;
                            ``(v) training of Forest Service personnel 
                        for competency in tribal relations; and
                            ``(vi) the development of legislation 
                        affecting Indian tribes;
                    ``(B) coordinate organizational responsibilities 
                within the administrative units of the Forest Service 
                to ensure that matters affecting the rights and 
                interests of Indian tribes are handled in a manner that 
                is--
                            ``(i) comprehensive;
                            ``(ii) responsive to tribal needs; and
                            ``(iii) consistent with policy guidelines 
                        of the Forest Service;
                    ``(C)(i) develop generally applicable policies and 
                procedures of the Forest Service pertaining to Indian 
                tribes; and
                    ``(ii) monitor the application of those policies 
                and procedures throughout the administrative regions of 
                the Forest Service;
                    ``(D) provide such information or guidance to 
                personnel of the Forest Service that are responsible 
                for tribal relations as is required, as determined by 
                the Secretary;
                    ``(E) exercise such direct administrative authority 
                pertaining to tribal relations programs as may be 
                delegated by the Secretary;
                    ``(F) for the purpose of coordinating programs and 
                activities of the Forest Service with programs and 
                actions of other agencies or departments that affect 
                Indian tribes, consult with--
                            ``(i) other agencies of the Department of 
                        Agriculture, including the Natural Resources 
                        Conservation Service; and
                            ``(ii) other Federal agencies, including--
                                    ``(I) the Department of the 
                                Interior; and
                                    ``(II) the Environmental Protection 
                                Agency;
                    ``(G) submit to the Secretary an annual report on 
                the status of relations between the Forest Service and 
                Indian tribes that includes, at a minimum--
                            ``(i) an examination of the participation 
                        of Indian tribes in programs administered by 
                        the Secretary;
                            ``(ii) a description of the status of 
                        initiatives being carried out to improve 
                        working relationships with Indian tribes; and
                            ``(iii) recommendations for improvements or 
                        other adjustments to operations of the Forest 
                        Service that would be beneficial in 
                        strengthening working relationships with Indian 
                        tribes; and
                    ``(H) carry out such other duties as the Secretary 
                may assign.
    ``(d) Coordination.--In carrying out this section, the Office and 
other offices within the Forest Service shall consult on matters 
involving the rights and interests of Indian tribes.''.

SEC. 818. ASSISTANCE TO TRIBAL GOVERNMENTS.

    The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et 
seq.) is amended by adding at the end the following:

``SEC. 21. ASSISTANCE TO TRIBAL GOVERNMENTS.

    ``(a) Definition of Indian Tribe.--In this section, 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).
    ``(b) Establishment.--The Secretary may provide financial, 
technical, educational and related assistance to Indian tribes for--
            ``(1) tribal consultation and coordination with the Forest 
        Service on issues relating to--
                    ``(A) tribal rights and interests on National 
                Forest System land (including national forests and 
                national grassland);
                    ``(B) coordinated or cooperative management of 
                resources shared by the Forest Service and Indian 
                tribes; and
                    ``(C) provision of tribal traditional, cultural, or 
                other expertise or knowledge;
            ``(2) projects and activities for conservation education 
        and awareness with respect to forest land under the 
        jurisdiction of Indian tribes;
            ``(3) technical assistance for forest resources planning, 
        management, and conservation on land under the jurisdiction of 
        Indian tribes; and
            ``(4) the acquisition by Indian tribes, from willing 
        sellers, of conservation interests (including conservation 
        easements) in forest land and resources on land under the 
        jurisdiction of the Indian tribes.
    ``(c) Implementation.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of this section, the Secretary shall promulgate 
        regulations to implement subsection (b) (including regulations 
        for determining the distribution of assistance under that 
        subsection).
            ``(2) Consultation.--In developing regulations under 
        paragraph (1), the Secretary shall engage in full, open, and 
        substantive consultation with Indian tribes and representatives 
        of Indian tribes.
    ``(d) Coordination With the Secretary of the Interior.--The 
Secretary shall coordinate with the Secretary of the Interior during 
the establishment, implementation, and administration of subsection (b) 
to ensure that programs under that subsection--
            ``(1) do not conflict with tribal programs provided under 
        the authority of the Department of the Interior; and
            ``(2) meet the goals of the Indian tribes.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
fiscal year 2002 and each fiscal year thereafter.''.

SEC. 819. SUDDEN OAK DEATH SYNDROME.

    (a) Findings.--Congress finds that--
            (1) tan oak, coast live oak, Shreve's oak, and black oak 
        trees are among the most beloved features of the topography of 
        California and the Pacific Northwest and efforts should be made 
        to protect those trees from disease;
            (2) the die-off of those trees, as a result of the exotic 
        Phytophthora fungus, is approaching epidemic proportions;
            (3) very little is known about the new species of 
        Phytophthora, and scientists are struggling to understand the 
        causes of sudden oak death syndrome, the methods of 
        transmittal, and how sudden oak death syndrome can best be 
        treated;
            (4) the Phytophthora fungus has been found on--
                    (A) Rhododendron plants in nurseries in California; 
                and
                    (B) wild huckleberry plants, potentially 
                endangering the commercial blueberry and cranberry 
                industries;
            (5) sudden oak death syndrome threatens to create major 
        economic and environmental problems in California, the Pacific 
        Northwest, and other regions, including--
                    (A) the increased threat of fire and fallen trees;
                    (B) the cost of tree removal and a reduction in 
                property values; and
                    (C) loss of revenue due to--
                            (i) restrictions on imports of oak products 
                        and nursery stock; and
                            (ii) the impact on the commercial 
                        rhododendron, blueberry, and cranberry 
                        industries; and
            (6) Oregon and Canada have imposed an emergency quarantine 
        on the importation of oak trees, oak products, and certain 
        nursery plants from California.
    (b) Research, Monitoring, and Treatment of Sudden Oak Death 
Syndrome.--
            (1) In general.--The Secretary of Agriculture (referred to 
        in this section as the ``Secretary'') shall carry out a sudden 
        oak death syndrome research, monitoring, and treatment program 
        to develop methods to control, manage, or eradicate sudden oak 
        death syndrome from oak trees on public and private land.
            (2) Research, monitoring, and treatment activities.--In 
        carrying out the program under paragraph (1), the Secretary 
        may--
                    (A) conduct open space, roadside, and aerial 
                surveys;
                    (B) provide monitoring technique workshops;
                    (C) develop baseline information on the 
                distribution, condition, and mortality rates of oaks in 
                California and the Pacific Northwest;
                    (D) maintain a geographic information system 
                database;
                    (E) conduct research activities, including research 
                on forest pathology, Phytophthora ecology, forest 
                insects associated with oak decline, urban forestry, 
                arboriculture, forest ecology, fire management, 
                silviculture, landscape ecology, and epidemiology;
                    (F) evaluate the susceptibility of oaks and other 
                vulnerable species throughout the United States; and
                    (G) develop and apply treatments.
    (c) Management, Regulation, and Fire Prevention.--
            (1) In general.--The Secretary shall conduct sudden oak 
        death syndrome management, regulation, and fire prevention 
        activities to reduce the threat of fire and fallen trees killed 
        by sudden oak death syndrome.
            (2) Management, regulation, and fire prevention 
        activities.--In carrying out paragraph (1), the Secretary may--
                    (A) conduct hazard tree assessments;
                    (B) provide grants to local units of government for 
                hazard tree removal, disposal and recycling, assessment 
                and management of restoration and mitigation projects, 
                green waste treatment facilities, reforestation, 
                resistant tree breeding, and exotic weed control;
                    (C) increase and improve firefighting and emergency 
                response capabilities in areas where fire hazard has 
                increased due to oak die-off;
                    (D) treat vegetation to prevent fire, and 
                assessment of fire risk, in areas heavily infected with 
                sudden oak death syndrome;
                    (E) conduct national surveys and inspections of--
                            (i) commercial rhododendron and blueberry 
                        nurseries; and
                            (ii) native rhododendron and huckleberry 
                        plants;
                    (F) provide for monitoring of oaks and other 
                vulnerable species throughout the United States to 
                ensure early detection; and
                    (G) provide diagnostic services.
    (d) Education and Research.--
            (1) In general.--The Secretary shall conduct education and 
        outreach activities to make information available to the public 
        on sudden death oak syndrome.
            (2) Education and outreach activities.--In carrying out 
        paragraph (1), the Secretary may--
                    (A) develop and distribute educational materials 
                for homeowners, arborists, urban foresters, park 
                managers, public works personnel, recreationists, 
                nursery workers, landscapers, naturists, firefighting 
                personnel, and other individuals, as the Secretary 
                determines appropriate;
                    (B) design and maintain a website to provide 
                information on sudden oak death syndrome; and
                    (C) provide financial and technical support to 
                States, local governments, and nonprofit organizations 
                providing information on sudden oak death syndrome.
    (e) Sudden Oak Death Syndrome Advisory Committee.--
            (1) Establishment.--
                    (A) In general.--The Secretary shall establish a 
                Sudden Oak Death Syndrome Advisory Committee (referred 
                to in this subsection as the ``Committee'') to assist 
                the Secretary in carrying out this section.
                    (B) Membership.--
                            (i) Composition.--The Committee shall 
                        consist of--
                                    (I) 1 representative of the Animal 
                                and Plant Health Inspection Service, to 
                                be appointed by the Administrator of 
                                the Animal and Plant Health Inspection 
                                Service;
                                    (II) 1 representative of the 
                                Agricultural Research Service, to be 
                                appointed by the Administrator of the 
                                Agricultural Research Service;
                                    (III) 1 representative of the 
                                Forest Service, to be appointed by the 
                                Chief of the Forest Service;
                                    (IV) 2 individuals appointed by the 
                                Secretary from each of the States 
                                affected by sudden oak death syndrome; 
                                and
                                    (V) any individual, to be appointed 
                                by the Secretary, in consultation with 
                                the Governors of the affected States, 
                                that the Secretary determines--
                                            (aa) has an interest or 
                                        expertise in sudden oak death 
                                        syndrome; and
                                            (bb) would contribute to 
                                        the Committee.
                            (ii) Date of appointments.--The appointment 
                        of a member of the Committee shall be made not 
                        later than 90 days after the date of enactment 
                        of this Act.
                    (C) Initial meeting.--Not later than 30 days after 
                the date on which all members of the Committee have 
                been appointed, the Committee shall hold the initial 
                meeting of the Committee.
            (2) Duties.--
                    (A) Implementation plan.--The Committee shall 
                prepare a comprehensive implementation plan to address 
                the management, control, and eradication of sudden oak 
                death syndrome.
                    (B) Reports.--
                            (i) Interim report.--Not later than 1 year 
                        after the date of enactment of this Act, the 
                        Committee shall submit to Congress the 
                        implementation plan prepared under paragraph 
                        (1).
                            (ii) Final report.--Not later than 3 years 
                        after the date of enactment of this Act, the 
                        Committee shall submit to Congress a report 
                        that contains--
                                    (I) a summary of the activities of 
                                the Committee;
                                    (II) an accounting of funds 
                                received and expended by the Committee; 
                                and
                                    (III) findings and recommendations 
                                of the Committee.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2002 through 2006--
            (1) to carry out subsection (b), $7,500,000, of which not 
        more than $1,500,000 shall be used for treatment;
            (2) to carry out subsection (c), $6,000,000;
            (3) to carry out subsection (d), $500,000; and
            (4) to carry out subsection (e), $250,000.

SEC. 820. INDEPENDENT INVESTIGATION OF FIREFIGHTER FATALITIES.

    In the case of each fatality of an officer or employee of the 
Forest Service that occurs due to wildfire entrapment or burnover, the 
Inspector General of the Department of Agriculture shall--
            (1) conduct an investigation that does not rely on, and is 
        completely independent of, any investigation of the fatality 
        that is conducted by the Forest Service; and
            (2) submit to Congress and the Secretary of Agriculture a 
        report on the fatality.

SEC. 821. ADAPTIVE ECOSYSTEM RESTORATION OF ARIZONA AND NEW MEXICO 
              FORESTS AND WOODLANDS.

    (a) Findings.--Congress finds that--
            (1) fire suppression, logging, and overgrazing have 
        degraded the ecological conditions of forests and woodlands in 
        Arizona and New Mexico;
            (2) some of those forests and woodlands contain unnaturally 
        high quantities of biomass that are subject to large, high 
        intensity wildfires that endanger human lives and livelihoods 
        and ecological sustainability;
            (3) degraded forests and woodlands have led to--
                    (A) declining biodiversity;
                    (B) decreased stream and spring flows;
                    (C) impaired watershed values;
                    (D) increased susceptibility to insects and 
                diseases;
                    (E) increases in mortality in the oldest trees; and
                    (F) degraded habitats for wildlife and humans;
            (4) healthy forest and woodland ecosystems--
                    (A) minimize the threat of unnatural wildfire;
                    (B) improve wildlife habitat;
                    (C) increase tree, grass, forb, and shrub 
                productivity;
                    (D) enhance watershed values; and
                    (E) provide a basis for economically and 
                environmentally sustainable uses;
            (5) forest and woodland treatments intended to restore 
        degraded ecosystems should be developed using the best 
        available scientific knowledge;
            (6) treatments not supported by sound science may fail to 
        achieve long-term ecosystem health and resource restoration 
        objectives;
            (7)(A) scientific research must be integrated with ongoing 
        land management activities; and
            (B) restoration techniques must be continually reevaluated 
        and adapted to reflect new knowledge and to meet the practical 
        needs of land managers and communities developing and 
        implementing restoration treatments; and
            (8) scientific knowledge must be translated and transferred 
        to land managers, resource specialists, communities, and 
        stakeholders that collaborate in the development and 
        implementation of those treatments.
    (b) Purposes.--The purposes of this section are--
            (1) to--
                    (A) improve the ecological health, resource values, 
                and sustainability of forest and woodland ecosystems in 
                Arizona and New Mexico; and
                    (B) reduce the threat of unnatural wildfire, 
                disease, and insect infestations in those States;
            (2) to restore ecosystem structure and function so that 
        ecosystems will--
                    (A) support biodiversity;
                    (B) enhance watershed values;
                    (C) increase water flow to seeps and springs; and
                    (D) increase tree, grass, forb, and shrub vigor and 
                growth to provide sustainable economic activities for 
                current and future generations;
            (3) to develop the scientific knowledge to inform the 
        design of adaptive ecosystem management restoration treatments 
        that will restore long-term ecological health to forests and 
        woodlands in the States; and
            (4) to encourage collaboration among land management 
        agencies, communities, and interest groups in developing, 
        implementing, and monitoring adaptive ecosystem management 
        restoration treatments that are ecologically sound, 
        economically viable, and socially responsible.
    (c) Definitions.--In this section:
            (1) Adaptive ecosystem management.--The term ``adaptive 
        ecosystem management'' means management practiced by engaging 
        researchers, land managers, resource specialists, policy 
        analysts, decisionmakers, nonprofit organizations, and 
        communities in conducting collaborative large-scale management 
        experiments that seek to restore ecosystem health while seeking 
        unexplored opportunities to enhance natural resource values.
            (2) Ecological integrity.--The term ``ecological 
        integrity'' includes a critical range of variability in 
        biodiversity, ecological processes and structures, regional and 
        historical context, and sustainable forestry practices in 
        forests and woodlands.
            (3) Ecological restoration.--The term ``ecological 
        restoration'' means the process of assisting the recovery and 
        management of ecological integrity.
            (4) Institute.--The term ``Institute'' means an institute 
        established under subsection (d)(1).
            (5) Land management agency.--The term ``land management 
        agency'' means a Federal, State, local, or tribal land 
        management agency.
            (6) Practitioner.--The term ``practitioner'' means a person 
        or entity that practices natural resource management.
            (7) Secretaries.--The term ``Secretaries'' means--
                    (A) the Secretary of Agriculture, acting through 
                the Chief of the Forest Service; and
                    (B) the Secretary of the Interior.
            (8) State.--The term ``State'' means--
                    (A) the State of Arizona; and
                    (B) the State of New Mexico.
    (d) Establishment of Institutes.--
            (1) In general.--The Secretary of Agriculture, in 
        consultation with the Secretary of the Interior, shall 
        establish--
                    (A) an Ecological Restoration Institute in 
                Flagstaff, Arizona; and
                    (B) an Institute at a college or university in the 
                State of New Mexico selected by the Secretary of 
                Agriculture, in consultation with the Secretary of the 
                Interior.
            (2) Scope of research; transfer of information.--Each 
        Institute shall--
                    (A) plan, conduct, or otherwise arrange for applied 
                ecosystem management research that--
                            (i) assists in answering questions 
                        identified by land managers, practitioners, and 
                        others concerned with land management; and
                            (ii) will be useful in the development and 
                        implementation of practical, science-based, 
                        ecological restoration treatments;
                    (B) translate scientific knowledge into 
                communication tools that are easily understood by land 
                managers, natural resource professionals, and concerned 
                citizens; and
                    (C) provide similar information to land managers 
                and other interested persons.
            (3) Cooperation.--Each Institute shall cooperate with--
                    (A) researchers at colleges and universities in the 
                States that have demonstrated capabilities for 
                research, information dissemination, continuing 
                education, and undergraduate and graduate training, to 
                develop broad capacity to implement ecological 
                restoration in forest and woodland ecosystems; and
                    (B) other organizations and entities in the region 
                (such as the Western Governors' Association, Southwest 
                Strategy group, the Southwest Fire Management Board, 
                and the Arizona Governor's Forest Health/Fire Plan 
                Advisory Committee), to increase and accelerate efforts 
                to restore forest ecosystem health and abate unnatural 
                and unwanted wildfire.
            (4) Approval of annual work plan; requisite assurances.--As 
        a condition to the receipt of funds made available under 
        subsection (g), for each fiscal year, each Institute shall 
        submit to the Secretary of Agriculture, for review by the 
        Secretary of Agriculture, in consultation with the Secretary of 
        the Interior, an annual work plan that includes assurances, 
        satisfactory to the Secretaries, that the proposed work will 
        serve the information needs of--
                    (A) land managers;
                    (B) practitioners;
                    (C) concerned citizens and communities; and
                    (D) the States.
    (e) Cooperation Between Institutes and Federal Agencies.--In 
carrying out this section, the Secretary of Agriculture, in 
consultation with the Secretary of the Interior--
            (1) shall encourage other Federal departments, agencies, 
        and instrumentalities to use and take advantage of, on a 
        cooperative basis, the expertise and capabilities that are 
        available through the Institutes;
            (2) shall encourage cooperation and coordination with other 
        Federal programs relating to--
                    (A) ecological restoration; and
                    (B) wildfire risk reduction;
            (3) may (notwithstanding chapter 63 of title 31, United 
        States Code)--
                    (A) enter into contracts, cooperative agreements, 
                interagency personal agreements; and
                    (B) carry out other transactions;
            (4) may accept funds from other Federal departments, 
        agencies, and instrumentalities to supplement or fully fund 
        grants made, and contracts entered into, by the Secretaries;
            (5) may promulgate such regulations as the Secretaries 
        consider appropriate;
            (6) may support a program of internships for qualified 
        individuals at the undergraduate and graduate levels to carry 
        out the educational and training objectives of this section; 
        and
            (7) shall encourage professional education and public 
        information activities relating to the purposes of this 
        section.
    (f) Monitoring and Evaluation.--
            (1) In general.--Not later than 5 years after the date of 
        enactment of this Act, and every 5 years thereafter, the 
        Secretary, in consultation with the Secretary of the Interior, 
        shall complete a detailed evaluation of each Institute--
                    (A) to ensure, to the maximum extent practicable, 
                that the research, communication tools, and information 
                transfer activities of the Institute meet the needs 
                of--
                            (i) land managers;
                            (ii) practitioners;
                            (iii) concerned citizens and communities; 
                        and
                            (iv) the States; and
                    (B) to determine whether continued provision of 
                Federal assistance to the Institute is warranted.
            (2) Standards for receipt of financial assistance.--If, as 
        a result of an evaluation under paragraph (1), the Secretary, 
        in consultation with the Secretary of the Interior, determines 
        that an Institute does not qualify for further Federal 
        assistance under this section, the Institute shall receive no 
        further Federal assistance under this section until such time 
        as the qualifications of the Institute are reestablished to the 
        satisfaction of the Secretaries.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each fiscal 
year.

                            TITLE IX--ENERGY

SEC. 901. FINDINGS.

    Congress finds that--
            (1) there are many opportunities for the agricultural 
        sector and rural areas to produce renewable energy and increase 
        energy efficiency;
            (2) investments in renewable energy and energy efficiency--
                    (A) enhance the energy security and independence of 
                the United States;
                    (B) increase farmer and rancher income;
                    (C) promote rural economic development;
                    (D) provide environmental and public health 
                benefits such as cleaner air and water; and
                    (E) improve electricity grid reliability, thereby 
                reducing the likelihood of blackouts and brownouts, 
                particularly during peak usage periods;
            (3) the public strongly supports renewable energy 
        generation and energy efficiency improvements as an important 
        component of a national energy strategy;
            (4)(A) the Federal Government is the country's largest 
        consumer of a vast array of products, spending in excess of 
        $200,000,000,000 per year;
            (B) purchases and use of products by the Federal Government 
        have a significant effect on the environment; and
            (C) accordingly, the Federal Government should lead the way 
        in purchasing biobased products so as to minimize environmental 
        impacts while supporting domestic producers of biobased 
        products;
            (5) the agricultural sector is a leading producer of 
        biobased products to meet domestic and international needs;
            (6) agriculture can play a significant role in the 
        development of fuel cell and hydrogen-based energy 
        technologies, which are critical technologies for a clean 
        energy future;
            (7)(A) wind energy is 1 of the fastest growing clean energy 
        technologies; and
            (B) there are tremendous economic development and 
        environmental quality benefits to be achieved by developing 
        both large-scale and small-scale wind power projects on farms 
        and in rural communities;
            (8) farm-based renewable energy generation can become one 
        of the major cash crops of the United States, improving the 
        livelihoods of hundreds of thousands of family farmers, 
        ranchers, and others and revitalizing rural communities;
            (9)(A) evidence continues to mount that increases in 
        atmospheric concentrations of greenhouse gases are contributing 
        to global climate change; and
            (B) agriculture can help in climate change mitigation by--
                    (i) storing carbon in soils, plants, and forests;
                    (ii) producing biofuels, chemicals, and power to 
                replace fossil fuels and petroleum-based products; and
                    (iii) reducing emissions by capturing gases from 
                animal feeding operations, changing agricultural land 
                practices, and becoming more energy efficient;
            (10) because agricultural production is energy-intensive, 
        it is incumbent on the Federal Government to aid the 
        agricultural sector in reducing energy consumption and energy 
        costs;
            (11)(A) one way to help farmers, ranchers, and others 
        reduce energy use is through professional energy audits;
            (B) energy audits provide recommendations for improved 
        energy efficiency that, when acted on, offer an effective means 
        of reducing overall energy use and saving money; and
            (C) energy savings of 10 to 30 percent can typically be 
        achieved, and greater savings are often realized; and
            (12) rural electric utilities are often geographically well 
        situated to develop renewable and distributed energy supplies, 
        enabling the utilities to diversify their energy portfolios and 
        afford their members or customers alternative energy sources, 
        which many such members and customers desire.

SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

    The Consolidated Farm and Rural Development Act (as amended by 
section 649) is amended by adding at the end the following:

                       ``Subtitle L--Clean Energy

``SEC. 388A. DEFINITIONS.

    ``In this subtitle:
            ``(1) 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) dedicated energy crops;
                            ``(ii) trees grown for energy production;
                            ``(iii) wood waste and wood residues;
                            ``(iv) plants (including aquatic plants, 
                        grasses, and agricultural crops);
                            ``(v) residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) fats and oils.
                    ``(C) Exclusions.--The term `biomass' does not 
                include--
                            ``(i) paper that is commonly recycled; or
                            ``(ii) unsegregated garbage.
            ``(2) Renewable energy.--The term `renewable energy' means 
        energy derived from a wind, solar, biomass, geothermal, or 
        hydrogen source.
            ``(3) Rural small business.--The term `rural small 
        business' has the meaning that the Secretary shall prescribe by 
        regulation.

               ``CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT

``SEC. 388B. BIOBASED PRODUCT PURCHASING REQUIREMENT.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Biobased product.--The term `biobased product' means 
        a commercial or industrial product, as determined by the 
        Secretary (other than food or feed), that uses biological 
        products or renewable domestic agricultural materials 
        (including plant, animal, and marine materials) or forestry 
        materials.
            ``(3) Environmentally preferable.--The term 
        `environmentally preferable', with respect to a biobased 
        product, refers to a biobased product that has a lesser or 
        reduced effect on human health and the environment when 
        compared with competing nonbiobased products that serve the 
        same purpose.
    ``(b) Biobased Product Purchasing.--
            ``(1) Mandatory purchasing requirement for listed biobased 
        products.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than 180 days after the 
                date of enactment of this subtitle, the head of each 
                Federal agency shall ensure that, in purchasing any 
                product, the Federal agency purchases a biobased 
                product, rather than a comparable nonbiobased product, 
                if the biobased product is listed on the list of 
                biobased products published under subsection (c)(1).
                    ``(B) Biobased product not reasonably comparable.--
                A Federal agency shall not be required to purchase a 
                biobased product under subparagraph (A) if the 
                purchasing employee submits to the Secretary and the 
                Administrator of the Office of Federal Procurement 
                Policy a written determination that the biobased 
                product is not reasonably comparable to nonbiobased 
                products in price, performance, or availability.
                    ``(C) Conflicting requirements.--The Secretary and 
                the Administrator shall jointly promulgate regulations 
                with which Federal agencies shall comply in cases of a 
                conflict between the biobased product purchasing 
                requirement under subparagraph (A) and a purchasing 
                requirement under any other provision of law.
            ``(2) Purchasing of nonlisted biobased products.--The head 
        of each Federal agency is encouraged to purchase, to the 
        maximum extent practicable, available biobased products that 
        are not listed on the list of biobased products published under 
        subsection (c)(1) when the Federal agency is not required to 
        purchase a biobased product that is on the list.
    ``(c) Administrative Action.--
            ``(1) List of biobased products.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subtitle, and annually 
                thereafter, the Secretary, in consultation with the 
                Administrator and the Director of the National 
                Institute of Standards and Technology, shall publish a 
                list of biobased products.
                    ``(B) Environmentally preferable biobased 
                products.--The Secretary shall not include on the list 
                under paragraph (1) biobased products that are not 
                environmentally preferable, as determined by the 
                Secretary.
                    ``(C) Grants.--The Secretary may award grants to, 
                or enter into contracts or cooperative agreements with, 
                eligible persons, businesses, or institutions (as 
                determined by the Secretary) to assist in collecting 
                data concerning the evaluation of and lifecycle 
                analyses of biobased products for use in making the 
                determinations necessary to carry out this paragraph.
            ``(2) Guidance.--Not later than 240 days after the date of 
        enactment of this subtitle, the Office of Federal Procurement 
        Policy and Federal Acquisition Regulation Council shall make 
        the Federal Acquisition Regulation consistent with subsection 
        (b).
    ``(d) Education and Outreach Program.--The Secretary, in 
cooperation with the Defense Acquisition University and the Federal 
Acquisition Institute, shall conduct education programs for all Federal 
procurement officers regarding biobased products and the requirements 
of subsection (b).
    ``(e) Labeling.--
            ``(1) In general.--The Secretary shall develop a program, 
        similar to the Energy Star program of the Department of Energy 
        and the Environmental Protection Agency, under which the 
        Secretary authorizes producers of environmentally preferable 
        biobased products to use a label that identifies the products 
        as environmentally preferable biobased products.
            ``(2) Environmentally preferable biobased products.--The 
        Secretary shall monitor and take appropriate action regarding 
        the use of labels under paragraph (1) to ensure that the 
        biobased products using the labels do not include biobased 
        products that are not environmentally preferable, as determined 
        by the Secretary.
            ``(3) Contracting.--In carrying out paragraph (1), the 
        Secretary may contract with appropriate entities with expertise 
        in product labeling and standard setting.
    ``(f) Goal.--It shall be the goal of each Federal agency for each 
fiscal year to purchase biobased products of an aggregate value that is 
not less than 5 percent of the aggregate value of all products 
purchased by the Federal agency during the preceding fiscal year.
    ``(g) Reports.--As soon as practicable after the end of each fiscal 
year, the Secretary and the Office of Federal Procurement Policy shall 
jointly submit to Congress an annual report that, for the fiscal year, 
describes the extent of--
            ``(1) compliance by each Federal agency with subsection 
        (b); and
            ``(2) the success of each Federal agency in achieving the 
        goal established under subsection (f).
    ``(h) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $2,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

``SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to assist in the 
development of new and emerging technologies for the conversion of 
biomass into petroleum substitutes, so as to--
            ``(1) develop transportation and other fuels and chemicals 
        from renewable sources;
            ``(2) reduce the dependence of the United States on 
        imported oil;
            ``(3) reduce greenhouse gas emissions;
            ``(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.--A corporation, farm cooperative, 
association of farmers, national laboratory, university, State 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 in consultation with 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 process for 
                        converting biomass into fuels or chemicals; and
                            ``(ii) may consider the likelihood that the 
                        projects will produce electricity.
                    ``(B) Factors.--The factors to be considered under 
                subparagraph (A) shall include--
                            ``(i) the potential market for the product 
                        or products;
                            ``(ii) the quantity of petroleum the 
                        product will displace;
                            ``(iii) the level of financial 
                        participation by the applicants;
                            ``(iv) the availability of adequate funding 
                        from other sources;
                            ``(v) the beneficial impact on resource 
                        conservation and the environment;
                            ``(vi) the participation of producer 
                        associations and cooperatives;
                            ``(vii) the timeframe in which the project 
                        will be operational;
                            ``(viii) the potential for rural economic 
                        development;
                            ``(ix) the participation of multiple 
                        eligible entities; and
                            ``(x) the potential for developing advanced 
                        industrial biotechnology approaches.
    ``(f) Cost Sharing.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        amount of a grant for a project awarded under subsection (c) 
        shall not exceed 30 percent of the cost of the project.
            ``(2) Increased grant amount.--The Secretary may increase 
        the amount of a grant for a project under subsection (c) to not 
        more than 50 percent in the case of a project that the 
        Secretary finds particularly meritorious.
            ``(3) 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) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $15,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

``SEC. 388D. BIODIESEL FUEL EDUCATION PROGRAM.

    ``(a) Findings.--Congress finds that--
            ``(1) biodiesel fuel use can help reduce greenhouse gas 
        emissions and public health risks associated with air 
        pollution;
            ``(2) biodiesel fuel use enhances energy security by 
        reducing petroleum consumption;
            ``(3) biodiesel fuel is nearing the transition from the 
        research and development phase to commercialization;
            ``(4) biodiesel fuel is still relatively unknown to the 
        public and even to diesel fuel users; and
            ``(5) education of, and provision of technical support to, 
        current and future biodiesel fuel users will be critical to the 
        widespread use of biodiesel fuel.
    ``(b) Establishment.--The Secretary shall, under such terms and 
conditions as are appropriate, offer 1 or more competitive grants to 
eligible entities to educate Federal, State, regional, and local 
government entities 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.
    ``(c) Eligible Entities.--To receive a grant under subsection (b), 
an entity--
            ``(1) shall be a nonprofit organization; and
            ``(2) shall have demonstrated expertise in biodiesel fuel 
        production, use, and distribution.
    ``(d) Authorization of Appropriations.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall make available 
$5,000,000 for each fiscal year 2003 through 2006.

    ``CHAPTER 2--RENEWABLE ENERGY DEVELOPMENT AND ENERGY EFFICIENCY

``SEC. 388E. RENEWABLE ENERGY DEVELOPMENT LOAN AND GRANT PROGRAM.

    ``(a) In General.--The Secretary, acting through the Rural Business 
Cooperative Service, in addition to exercising authority to make loans 
and loan guarantees under other law, shall establish a program under 
which the Secretary shall make loans and loan guarantees and 
competitively award grants to assist farmers and ranchers in projects 
to establish new, or expand existing, farmer or rancher cooperatives, 
or other rural business ventures (as determined by the Secretary), to--
            ``(1) enable farmers and ranchers to become owners of 
        sources of renewable electric energy and marketers of electric 
        energy produced from renewable sources;
            ``(2) provide new income streams for farmers and ranchers;
            ``(3) increase the quantity of electricity available from 
        renewable energy sources; and
            ``(4) provide environmental and public health benefits to 
        rural communities and the United States as a whole.
    ``(b) Ownership Requirement.--At least 51 percent of the interest 
in a rural business venture assisted with a grant under subsection (a) 
shall be owned by farmers or ranchers.
    ``(c) Maximum Amount of Loans and Grants.--
            ``(1) Loans.--The amount of a loan made or guaranteed for a 
        project under subsection (a) shall not exceed $10,000,000.
            ``(2) Grants.--The amount of a grant made for a project 
        under subsection (a) shall not exceed $200,000 for a fiscal 
        year.
    ``(d) Cost Sharing.--
            ``(1) In general.--The total amount of loans made or 
        guaranteed or grants awarded under subsection (a) for a project 
        shall not exceed 50 percent of the cost of the activity funded 
        by the loan or grant.
            ``(2) Form of grantee share.--
                    ``(A) In general.--The grantee share of the cost of 
                the activity 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 an activity 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, as determined under paragraph 
                (1).
    ``(e) Interest Rate.--A loan made or guaranteed under subsection 
(a) shall bear an interest rate that does not exceed 4 percent.
    ``(f) Use of Funds.--
            ``(1) Permitted uses.--
                    ``(A) Grants.--A recipient of a grant awarded under 
                subsection (a) may use the grant funds to develop a 
                business plan or perform a feasibility study to 
                establish a viable marketing opportunity for renewable 
                electric energy generation and sale.
                    ``(B) Loans.--A recipient of a loan or loan 
                guarantee under subsection (a) may use the loan funds 
                to provide capital for start-up costs associated with 
                the rural business venture or the promotion of the 
                aggregation of renewable electric energy sources.
            ``(2) Prohibited uses.--A recipient of a loan, loan 
        guarantee, or grant under subsection (a) shall not use the loan 
        or grant funds for planning, repair, rehabilitation, 
        acquisition, or construction of a building.
    ``(g) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $16,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            ``(3) Loan and interest subsidies.--In the case of a loan 
        or loan guarantee under subsection (a), the Secretary shall use 
        funds under paragraph (1) to pay the cost of loan and interest 
        subsidies necessary to carry out this section.

``SEC. 388F. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    ``(a) In General.--The Secretary, acting through the Rural Business 
Cooperative Service, shall make competitive grants to eligible entities 
to enable the eligible entities to carry out a program to assist 
farmers, and ranchers, and rural small businesses (as determined by the 
Secretary) in becoming more energy efficient and in using renewable 
energy technology.
    ``(b) Eligible Entities.--Entities eligible to carry out a program 
under subsection (a) include--
            ``(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 
        college or university;
            ``(4) a farm bureau or organization;
            ``(5) a rural electric cooperative or utility;
            ``(6) a nonprofit organization; and
            ``(7) any other entity, as determined by the Secretary.
    ``(c) Merit Review.--
            ``(1) Merit review panel.--The Secretary shall establish a 
        merit review panel to review applications for grants under 
        subsection (a) that uses the expertise of other Federal 
        agencies (including the Department of Energy and the 
        Environmental Protection Agency), industry, and nongovernmental 
        organizations.
            ``(2) Selection criteria.--In reviewing applications of 
        eligible entities to receive grants under subsection (a), the 
        merit review panel 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.--A recipient of a grant under subsection 
(a) shall use the grant funds to--
            ``(1)(A) conduct energy audits for farmers, ranchers, and 
        rural small businesses to provide farmers, ranchers, and rural 
        small businesses recommendations for energy efficiency and 
        renewable energy development opportunities; and
            ``(B) conduct workshops on that subject as appropriate;
            ``(2) make farmers, ranchers, and rural small businesses 
        aware of, and ensure that they have access to--
                    ``(A) financial assistance under section 388G; and
                    ``(B) other Federal, State, and local financial 
                assistance programs for which farmers, ranchers, and 
                rural small businesses may be eligible; and
            ``(3) arrange private financial assistance to farmers, 
        ranchers, and rural small businesses on favorable terms.
    ``(e) Cost Sharing.--
            ``(1) In general.--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 to the conduct of the energy audit, the 
        farmer, rancher, or rural small business pay at least 25 
        percent of the cost of the audit.
            ``(2) Implementation of recommendations.--If a farmer, 
        rancher, or rural small business substantially implements the 
        recommendations made in connection with an energy audit, the 
        Secretary may reimburse the farmer, rancher, or rural small 
        business the amount that is equal to the share of the cost paid 
        by the farmer, rancher, or rural small business under paragraph 
        (1).
    ``(f) Reports.--The Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate an annual report on 
the implementation of this section.
    ``(g) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $15,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

``SEC. 388G. LOANS, LOAN GUARANTEES, AND GRANTS TO FARMERS, RANCHERS, 
              AND RURAL SMALL BUSINESSES FOR 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 of Farmers and Ranchers.--To be eligible to 
receive a grant under subsection (a) for a fiscal year, a farmer or 
rancher shall have produced not more than $1,000,000 in market value of 
agricultural products during the preceding fiscal year, as determined 
by the Secretary.
    ``(c) Cost Sharing.--
            ``(1) Renewable energy systems.--
                    ``(A) In general.--
                            ``(i) Grants.--The amount of a grant made 
                        under subsection (a) for a renewable energy 
                        system shall not exceed 30 percent of the cost 
                        of the renewable energy system.
                            ``(ii) Maximum amount of combined grant and 
                        loan.--The combined amount of a grant and loan 
                        made or guaranteed under subsection (a) for a 
                        renewable energy system shall not exceed 60 
                        percent of the cost of the renewable energy 
                        system.
                    ``(B) Factors.--In determining the amount of a 
                grant or loan under subparagraph (A), the Secretary 
                shall take into consideration--
                            ``(i) the type of renewable energy system 
                        to be purchased;
                            ``(ii) the estimated quantity of energy to 
                        be generated or displaced by the renewable 
                        energy system;
                            ``(iii) the expected environmental benefits 
                        of the renewable energy system;
                            ``(iv) the extent to which the renewable 
                        energy system will be replicable; and
                            ``(v) other factors as appropriate.
            ``(2) Energy efficiency improvements.--
                    ``(A) In general.--
                            ``(i) Grants.--The amount of a grant made 
                        under subsection (a) for an energy efficiency 
                        improvement shall not exceed 25 percent of the 
                        cost of the energy efficiency improvement.
                            ``(ii) Maximum amount of combined grant and 
                        loan.--The combined amount of a grant and loan 
                        made or guaranteed under subsection (a) for an 
                        energy efficiency project shall not exceed 50 
                        percent of the cost of the energy efficiency 
                        improvement.
                    ``(B) Factors.--In determining the amount of a 
                grant or loan under subparagraph (A), the Secretary 
                shall take into consideration--
                            ``(i) the estimated length of time it would 
                        take for the energy savings generated by the 
                        improvement to equal the cost of the 
                        improvement;
                            ``(ii) the amount of energy savings 
                        expected to be derived from the improvement; 
                        and
                            ``(iii) other factors as appropriate.
    ``(d) Interest Rate.--A loan made or guaranteed under subsection 
(a) shall bear interest at a rate not exceeding 4 percent.
    ``(e) Energy Audit and Renewable Energy Development Program.--
            ``(1) Preference.--In making loans, loan guarantees, and 
        grants under subsection (a), the Secretary shall give 
        preference to participants in the energy audit and renewable 
        energy development program under section 388F.
            ``(2) Reservation of funding.--The Secretary shall reserve 
        at least 25 percent of the funds made available to carry out 
        this section for each of fiscal years 2002 through 2006 to 
        participants in the energy audit and renewable energy 
        development program under section 388F.
    ``(f) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $33,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            ``(3) Loan and interest subsidies.--In the case of a loan 
        or loan guarantee under subsection (a), the Secretary shall use 
        funds under paragraph (1) to pay the cost of loan and interest 
        subsidies necessary to carry out this section.

``SEC. 388H. HYDROGEN AND FUEL CELL TECHNOLOGIES PROGRAM.

    ``(a) Findings.--Congress finds that--
            ``(1) fuel cells are a highly efficient, clean, and 
        flexible technology for generating electricity from hydrogen 
        that promises to improve the environment, electricity 
        reliability, and energy security;
            ``(2)(A) because fuel cells can be made in any size, fuel 
        cells can be used for a wide variety of farm applications, 
        including powering farm vehicles, equipment, houses, and other 
        operations; and
            ``(B) much of the initial use of fuel cells is likely to be 
        in remote and off-grid applications in rural areas; and
            ``(3) hydrogen is a clean and flexible fuel that can play a 
        critical role in storing and transporting energy produced on 
        farms from renewable sources (including biomass, wind, and 
        solar energy).
    ``(b) Grant program.--The Secretary of Agriculture, in consultation 
with the Secretary of Energy, shall establish a program under which the 
Secretary of Agriculture shall competitively award grants to, or enter 
into contracts or cooperative agreements with, eligible entities for--
            ``(1) projects to demonstrate the use of hydrogen 
        technologies and fuel cell technologies in farm, ranch, and 
        rural applications; and
            ``(2) as appropriate, studies of the technical, 
        environmental, and economic viability, in farm, ranch, and 
        rural applications, of innovative hydrogen and fuel cell 
        technologies not ready for demonstration.
    ``(c) Eligible Entities.--Under subsection (b), the Secretary may 
make a grant to or enter into a contract or cooperative agreement 
with--
            ``(1) a Federal research agency;
            ``(2) a national laboratory;
            ``(3) a college or university or a research foundation 
        maintained by a college or university;
            ``(4) a private organization with an established and 
        demonstrated capacity to perform research or technology 
        transfer;
            ``(5) a State agricultural experiment station;
            ``(6) an individual; or
            ``(7) a consortium comprised of entities described in 
        paragraphs (1) through (6).
    ``(d) Selection Criteria.--In selecting projects for grants, 
contracts, and cooperative agreements under subsection (b)(1), the 
Secretary shall give preference to projects that demonstrate 
technologies that--
            ``(1) are innovative;
            ``(2) use renewable energy sources;
            ``(3) generate both usable electricity and heat;
            ``(4) provide significant environmental benefits;
            ``(5) are likely to be economically competitive; and
            ``(6) have potential for commercialization as mass-
        produced, farm- or ranch-sized systems.
    ``(e) Cost Sharing.--The amount of financial assistance provided 
for a project under a grant, contract, or cooperative agreement under 
subsection (b) shall not exceed 50 percent of the cost of the project.
    ``(f) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $5,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

``SEC. 388I. TECHNICAL ASSISTANCE FOR FARMERS AND RANCHERS TO DEVELOP 
              RENEWABLE ENERGY RESOURCES.

    ``(a) In General.--The Secretary, acting through the Cooperative 
State Research, Education, and Extension Service in consultation with 
the Natural Resources Conservation Service, regional biomass programs 
under the Department of Energy, and other entities as appropriate, may 
provide for education and technical assistance to farmers and ranchers 
for the development and marketing of renewable energy resources.
    ``(b) Administrative Expenses.--The Secretary may retain up to 4 
percent of the amounts made available for each fiscal year to carry out 
this section to pay administrative expenses incurred in carrying out 
this section.

     ``CHAPTER 3--CARBON SEQUESTRATION RESEARCH, DEVELOPMENT, AND 
                         DEMONSTRATION PROGRAM

``SEC. 388J. RESEARCH.

    ``(a) Basic Research.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary shall carry out research to 
        promote understanding of--
                    ``(A) the net sequestration of organic carbon in 
                soils and plants (including trees); and
                    ``(B) net emissions of other greenhouse gases from 
                agriculture.
            ``(2) Agricultural research service.--The Secretary, acting 
        through the Agricultural Research Service, shall collaborate 
        with other Federal agencies in developing data and carrying out 
        research addressing carbon losses and gains in soils and plants 
        (including trees) and net emissions of methane and nitrous 
        oxide from cultivation and animal management activities.
            ``(3) Cooperative state research, education, and extension 
        service.--
                    ``(A) In general.--The Secretary, acting through 
                the Cooperative State Research, Education, and 
                Extension Service, shall establish a competitive grant 
                program to carry out research on the matters described 
                in paragraph (1) by eligible entities.
                    ``(B) Eligible entities.--Under subparagraph (A), 
                the Secretary may make a grant to--
                            ``(i) a Federal research agency;
                            ``(ii) a national laboratory;
                            ``(iii) a college or university or a 
                        research foundation maintained by a college or 
                        university;
                            ``(iv) a private research organization with 
                        an established and demonstrated capacity to 
                        perform research or technology transfer;
                            ``(v) a State agricultural experiment 
                        station;
                            ``(vi) a State forestry agency that has 
                        developed or is developing a forest carbon 
                        sequestration program; or
                            ``(vii) an individual.
                    ``(C) Consultation on research topics.--Before 
                issuing a request for proposals for basic research 
                under paragraph (1), the Cooperative State Research, 
                Education, and Extension Service shall consult with the 
                Agricultural Research Service and the Forest Service to 
                ensure that proposed research areas are complementary 
                with and do not duplicate other research projects 
                funded by the Department or other Federal agencies.
                    ``(D) Administrative expenses.--The Secretary may 
                retain up to 4 percent of the amounts made available 
                for each fiscal year to carry out this subsection to 
                pay administrative expenses incurred in carrying out 
                this subsection.
    ``(b) Applied Research.--
            ``(1) In general.--The Secretary shall carry out applied 
        research in the areas of soil science, agronomy, agricultural 
        economics, forestry, and other agricultural sciences to--
                    ``(A) promote understanding of--
                            ``(i) how agricultural and forestry 
                        practices affect the sequestration of organic 
                        and inorganic carbon in soils and plants 
                        (including trees) and net emissions of other 
                        greenhouse gases;
                            ``(ii) how changes in soil carbon pools in 
                        soils and plants (including trees) are cost-
                        effectively measured, monitored, and verified; 
                        and
                            ``(iii) how public programs and private 
                        market approaches can be devised to incorporate 
                        carbon sequestration in a broader societal 
                        greenhouse gas emission reduction effort;
                    ``(B) develop methods for establishing baselines 
                for measuring the quantities of carbon and other 
                greenhouse gases sequestered; and
                    ``(C) evaluate leakage, performance, and permanence 
                issues.
            ``(2) Requirements.--To the maximum extent practicable, 
        applied research under paragraph (1) shall--
                    ``(A) use existing technologies and methods; and
                    ``(B) provide methodologies that are accessible to 
                a nontechnical audience.
            ``(3) Minimization of adverse environmental impacts.--All 
        applied research under paragraph (1) shall be conducted with an 
        emphasis on minimizing adverse environmental impacts.
            ``(4) Natural resources and the environment.--The 
        Secretary, acting through the Natural Resources Conservation 
        Service and the Forest Service, shall collaborate with other 
        Federal agencies in developing new measuring techniques and 
        equipment or adapting existing techniques and equipment to 
        enable cost-effective and accurate monitoring and verification, 
        for a wide range of agricultural and forestry practices, of--
                    ``(A) changes in carbon content in soils and plants 
                (including trees); and
                    ``(B) net emissions of other greenhouse gases.
            ``(5) Cooperative state research, education, and extension 
        service.--
                    ``(A) In general.--The Secretary, acting through 
                the Cooperative State Research, Education, and 
                Extension Service and the Forest Service, shall 
                establish a competitive grant program to encourage 
                research on the matters described in paragraph (1) by 
                eligible entities.
                    ``(B) Eligible entities.--Under subparagraph (A), 
                the Secretary may make a grant to--
                            ``(i) a Federal research agency;
                            ``(ii) a national laboratory;
                            ``(iii) a college or university or a 
                        research foundation maintained by a college or 
                        university;
                            ``(iv) a private research organization with 
                        an established and demonstrated capacity to 
                        perform research or technology transfer;
                            ``(v) a State agricultural experiment 
                        station;
                            ``(vi) a State forestry agency that has 
                        developed or is developing a forest carbon 
                        sequestration program; or
                            ``(vii) an individual.
                    ``(C) Consultation on research topics.--Before 
                issuing a request for proposals for applied research 
                under paragraph (1), the Cooperative State Research, 
                Education, and Extension Service and the Forest Service 
                shall consult with the Natural Resources Conservation 
                Service and the Agricultural Research Service to ensure 
                that proposed research areas are complementary with and 
                do not duplicate research projects funded by the 
                Department of Agriculture or other Federal agencies.
                    ``(D) Administrative expenses.--The Secretary, 
                acting through the Cooperative State Research, 
                Education, and Extension Service, may retain up to 4 
                percent of the amounts made available for each fiscal 
                year to carry out this subsection to pay administrative 
                expenses incurred in carrying out this subsection.
    ``(c) Research Consortia.--
            ``(1) In general.--The Secretary may designate not more 
        than 2 research consortia to carry out research projects under 
        this section, with the requirement that the consortia propose 
        to conduct basic research under subsection (a) and applied 
        research under subsection (b) .
            ``(2) Selection.--The consortia shall be selected on a 
        competitive basis by the Cooperative State Research, Education, 
        and Extension Service.
            ``(3) Eligible consortium participants.--Entities eligible 
        to participate in a consortium include--
                    ``(A) a college or university or a research 
                foundation maintained by a college or university;
                    ``(B) a private research institution;
                    ``(C) a State agency;
                    ``(D) an Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450b));
                    ``(E) an agency of the Department of Agriculture;
                    ``(F) a research center of the National Aeronautics 
                and Space Administration, the Department of Energy, or 
                any other Federal agency;
                    ``(G) an agricultural business or organization with 
                demonstrated expertise in areas covered by this 
                section; and
                    ``(H) a representative of the private sector with 
                demonstrated expertise in the areas.
            ``(4) Reservation of funding.--If the Secretary designates 
        1 or 2 consortia, the Secretary shall reserve for research 
        projects carried out by the consortium or consortia not more 
        than 25 percent of the amounts made available to carry out this 
        section for a fiscal year.
    ``(d) Standards for Measuring Carbon and Other Greenhouse Gas 
Content.--
            ``(1) Conference.--Not later than 3 years after the date of 
        enactment of this subtitle, the Secretary shall convene a 
        conference of key scientific experts on carbon sequestration 
        from various sectors (including the government, academic, and 
        private sectors) to--
                    ``(A) discuss benchmark standards for measuring the 
                carbon content of soils and plants (including trees) 
                and net emissions of other greenhouse gases;
                    ``(B) propose techniques and modeling approaches 
                for measuring carbon content with a level of precision 
                that is agreed on by the participants in the 
                conference; and
                    ``(C) evaluate results of analyses on baseline, 
                permanence, and leakage issues.
            ``(2) Development of benchmark standards.--
                    ``(A) In general.--The Secretary shall develop 
                benchmark standards for measuring the carbon content of 
                soils and plants (including trees) based on--
                            ``(i) information from the conference under 
                        paragraph (1);
                            ``(ii) research conducted under this 
                        section; and
                            ``(iii) other information available to the 
                        Secretary.
                    ``(B) Opportunity for public comment.--The 
                Secretary shall provide an opportunity for the public 
                to comment on the benchmark standards developed under 
                subparagraph (A).
            ``(3) Report.--Not later than 180 days after the conclusion 
        of the conference under paragraph (1), 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 
        conference.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $25,000,000 for each of fiscal years 
        2002 through 2006.
            ``(2) Allocation.--
                    ``(A) In general.--Of the amounts made available to 
                carry out this section for a fiscal year, at least 50 
                percent shall be allocated for competitive grants by 
                the Cooperative State Research, Education, and 
                Extension Service.
                    ``(B) Administrative expenses.--The Secretary may 
                retain up to 4 percent of the amounts made available 
                for each fiscal year to carry out this section to pay 
                administrative expenses incurred in carrying out this 
                section.

``SEC. 388K. DEMONSTRATION PROJECTS AND OUTREACH.

    ``(a) Demonstration Projects.--
            ``(1) Development of monitoring programs.--
                    ``(A) In general.--The Secretary, in cooperation 
                with local extension agents, experts from land grant 
                universities, and other local agricultural or 
                conservation organizations, shall develop user-friendly 
                programs that combine measurement tools and modeling 
                techniques into integrated packages to monitor the 
                carbon sequestering benefits of conservation practices 
                and net changes in greenhouse gas emissions.
                    ``(B) Benchmark levels of precision.--The Secretary 
                shall administer programs developed under subparagraph 
                (A) in a manner that achieves, to the maximum extent 
                practicable, benchmark levels of precision in the 
                measurement, in a cost-effective manner, of benefits 
                and changes described in subparagraph (A).
            ``(2) Projects.--
                    ``(A) In general.--The Secretary shall establish a 
                program under which the monitoring programs developed 
                under paragraph (1) are used in projects to demonstrate 
                the feasibility of methods of measuring, verifying, and 
                monitoring--
                            ``(i) changes in organic carbon content and 
                        other carbon pools in soils and plants 
                        (including trees); and
                            ``(ii) net changes in emissions of other 
                        greenhouse gases.
                    ``(B) Evaluation of implications.--The projects 
                under subparagraph (A) shall include evaluation of the 
                implications for reassessed baselines, carbon or other 
                greenhouse gas leakage, and the permanence of 
                sequestration.
                    ``(C) Submission of proposals.--Proposals for 
                projects under subparagraph (A) shall be submitted by 
                the appropriate agency of each State, in consultation 
                with interested local jurisdictions and State 
                agricultural and conservation organizations.
                    ``(D) Limitation.--Not more than 10 projects under 
                subparagraph (A) may be approved in conjunction with 
                applied research projects under section 388J(b) until 
                benchmark measurement and assessment standards are 
                established under section 388J(d).
    ``(b) Outreach.--
            ``(1) In general.--The Secretary, acting through the 
        Cooperative State Research, Education, and Extension Service, 
        shall widely disseminate information about the economic and 
        environmental benefits that can be generated by adoption of 
        conservation practices that increase sequestration of carbon 
        and reduce emissions of other greenhouse gases.
            ``(2) Project results.--The Secretary, acting through the 
        Cooperative State Research, Education, and Extension Service, 
        shall provide for the dissemination to farmers, ranchers, 
        private forest landowners, and appropriate State agencies in 
        each State of information concerning--
                    ``(A) the results of demonstration projects under 
                subsection (a)(2); and
                    ``(B) the manner in which the methods demonstrated 
                in the projects might be applicable to the operations 
                of the farmers, ranchers, private forest landowners, 
                and State agencies.
            ``(3) Policy outreach.--The Secretary, acting through the 
        Cooperative State Research, Education, and Extension Service, 
        shall disseminate information on the connection between global 
        climate change mitigation strategies and agriculture and 
        forestry, so that farmers, ranchers, private forest landowners, 
        and State agencies may better understand the global 
        implications of the activities of the farmers, ranchers, 
        private forest landowners, and State agencies.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $10,000,000 for each of fiscal years 
        2002 through 2006.
            ``(2) Allocation.--Of the amounts made available to carry 
        out this section for a fiscal year, at least 50 percent shall 
        be allocated for demonstration projects under subsection 
        (a)(2).''.

SEC. 903. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    (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) Transfers by the Secretary of the Treasury.--
            ``(1) In General.--Not later than 30 days after the date of 
        enactment of this subsection, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        title $15,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this title the funds transferred under paragraph (1), without 
        further appropriation.
    ``(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 2006.''.
    (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, 2006''.

SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.

    Title I of the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.) is amended by adding at the end the following:

``SEC. 20. FINANCIAL AND TECHNICAL ASSISTANCE FOR RENEWABLE ENERGY 
              PROJECTS.

    ``(a) Definitions.--In this section:
            ``(1) Renewable energy.--The term `renewable energy' means 
        energy derived from a wind, solar, biomass, geothermal, or 
        hydrogen source.
            ``(2) Rural area.--The term `rural area' includes any area 
        that is not within the boundaries of--
                    ``(A) a city, town, village, or borough having a 
                population of more than 20,000; or
                    ``(B) an urbanized area (as determined by the 
                Secretary).
    ``(b) Loans, Loan Guarantees, and Grants.--The Secretary shall make 
loans, loan guarantees, and grants to rural electric cooperatives and 
other rural electric utilities (as determined by the Secretary) to 
promote the development of economically and environmentally sustainable 
renewable energy projects to serve the needs of rural communities or 
for rural economic development.
    ``(c) Interest Rate.--A loan made or guaranteed under subsection 
(b) shall bear interest at a rate not exceeding 4 percent.
    ``(d) Use of Funds.--
            ``(1) Grants.--A recipient of a grant under subsection (a) 
        may use the grant funds to pay up to 75 percent of the cost of 
        an economic feasibility study or technical assistance for a 
        renewable energy project.
            ``(2) Loans.--If a renewable energy project is determined 
        to be economically feasible, a recipient of a loan or loan 
        guarantee under subsection (a) may use the loan funds to pay a 
        percentage of the cost of the project determined by the 
        Secretary.
    ``(e) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $9,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            ``(3) Loan and interest subsidies.--In the case of a loan 
        or loan guarantee under subsection (a), the Secretary shall use 
        funds under paragraph (1) to pay the cost of loan and interest 
        subsidies necessary to carry out this section.''.

SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) greenhouse gas emissions resulting from human activity 
        present potential risks and potential opportunities for 
        agricultural and forestry production;
            (2) there is a need to identify cost-effective methods that 
        can be used in the agricultural and forestry sectors to reduce 
        the threat of climate change;
            (3) deforestation and other land use changes account for 
        approximately 1,600,000,000 of the 7,900,000,000 metric tons of 
        the average annual worldwide quantity of carbon emitted during 
        the 1990s;
            (4) ocean and terrestrial systems each sequestered 
        approximately 2,300,000,000 metric tons of carbon annually, 
        resulting in a sequestration of 60 percent of the annual human-
        induced emissions of carbon during the 1990s;
            (5) there are opportunities for increasing the quantity of 
        carbon that can be stored in terrestrial systems through 
        improved, human-induced agricultural and forestry practices;
            (6) increasing the carbon content of soil helps to reduce 
        erosion, reduce flooding, minimize the effects of drought, 
        prevent nutrients and pesticides from washing into water 
        bodies, and contribute to water infiltration, air and water 
        holding capacity, and good seed germination and plant growth;
            (7) tree planting and wetland restoration could play a 
        major role in sequestering carbon and reducing greenhouse gas 
        concentrations in the atmosphere;
            (8) nitrogen management is a cost-effective method of 
        addressing nutrient overenrichment in the estuaries of the 
        United States and of reducing emissions of nitrous oxide;
            (9) animal feed and waste management can be cost-effective 
        methods to address water quality issues and reduce emissions of 
        methane; and
            (10) there is a need to--
                    (A) demonstrate that carbon sequestration in soils, 
                plants, and forests and reductions in greenhouse gas 
                emissions through nitrogen and animal feed and waste 
                management can be measured and verified; and
                    (B) develop and refine quantification, 
                verification, and auditing methodologies for carbon 
                sequestration and greenhouse gas emission reductions on 
                a project by project basis.
    (b) Program.--Title IV of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as amended by 
section 750) is amended by adding at the end the following:

``SEC. 412. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible project.--The term `eligible project' means 
        a project that is likely to result in--
                    ``(A) demonstrable reductions in net emissions of 
                greenhouse gases; or
                    ``(B) demonstrable net increases in the quantity of 
                carbon sequestered in soils and forests.
            ``(2) Environmental trade.--The term `environmental trade' 
        means a transaction between an emitter of a greenhouse gas and 
        an agricultural producer or farmer-owned cooperative under 
        which the emitter pays to the agricultural producer or farmer-
        owned cooperative a fee to sequester carbon or otherwise reduce 
        emissions of greenhouse gases.
            ``(3) Panel.--The term `panel' means the panel of experts 
        established under subsection (b)(4)(A).
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting in consultation with--
                    ``(A) the Under Secretary of Agriculture for 
                Natural Resources and Environment;
                    ``(B) the Under Secretary of Agriculture for 
                Research, Education, and Economics;
                    ``(C) the Chief Economist of the Department; and
                    ``(D) the panel.
    ``(b) Demonstration Program.--
            ``(1) Establishment.--Subject to the availability of 
        appropriations, the Secretary shall establish a program to 
        provide grants, on a competitive, cost-shared basis, to 
        agricultural producers, non-industrial private forest owners 
        and farmer-owned cooperatives, to assist in paying the costs 
        incurred in measuring, estimating, monitoring, verifying, 
        auditing, and testing methodologies involved in environmental 
        trades (including costs incurred in employing certified 
        independent third persons to carry out those activities).
            ``(2) Conditions for receipt of grant.--As a condition of 
        the acceptance of a grant under paragraph (1), an agricultural 
        producer, non-industrial forest owner and farmer-owned 
        cooperatives shall--
                    ``(A) establish a carbon and greenhouse gas 
                monitoring, verification, and reporting system that 
                meets such requirements as the Secretary shall 
                prescribe; and
                    ``(B) under the system and through the use of an 
                independent third party for any necessary monitoring, 
                verifying, reporting, and auditing, measure and report 
                to the Secretary the quantity of carbon sequestered, or 
                the quantity of greenhouse gas emissions reduced, as a 
                result of the conduct of an eligible project.
            ``(3) Criteria for award of grant.--
                    ``(A) In general.--In awarding a grant for an 
                eligible project under paragraph (1), the Secretary 
                shall take into consideration--
                            ``(i) the likelihood of the eligible 
                        project in succeeding in achieving greenhouse 
                        gas emissions reductions and net carbon 
                        sequestration increases; and
                            ``(ii) the usefulness of the information to 
                        be obtained from the eligible project in 
                        determining how best to quantify, monitor, and 
                        verify sequestered carbon or reductions in 
                        greenhouse gas emissions.
                    ``(B) Eligibility criteria.--To be eligible for a 
                grant under paragraph (1), a project shall (as 
                determined by the Secretary)--
                            ``(i) be designed to--
                                    ``(I) achieve long-term 
                                sequestration of carbon or long-term 
                                reductions in greenhouse gas emissions;
                                    ``(II) address concerns regarding 
                                leakage and permanence; or
                                    ``(III) promote additionality; and
                            ``(ii) not involve--
                                    ``(I) the reforestation of land 
                                that has been deforested since 1990; or
                                    ``(II) the conversion of native 
                                grassland.
                    ``(C) Priority criteria.--The Secretary shall give 
                priority in awarding a grant under paragraph (1) to an 
                eligible project that--
                            ``(i) involves multiple parties, a whole 
                        farm approach, or any other approach, such as 
                        the aggregation of land areas, that would--
                                    ``(I) increase the environmental 
                                benefits or reduce the transaction 
                                costs of the eligible project; and
                                    ``(II) reduce the costs of 
                                measuring, monitoring, and verifying 
                                any net sequestration of carbon or net 
                                reduction in greenhouse gas emissions; 
                                and
                            ``(ii) provides certain benefits, such as 
                        improvements in--
                                    ``(I) soil fertility;
                                    ``(II) wildlife habitat;
                                    ``(III) water quality;
                                    ``(IV) soil erosion management;
                                    ``(V) the use of renewable 
                                resources to produce energy;
                                    ``(VI) the avoidance of ecosystem 
                                fragmentation; and
                                    ``(VII) the promotion of ecosystem 
                                restoration with native species.
            ``(4) Panel.--
                    ``(A) In general.--The Secretary shall establish a 
                panel to provide advice and recommendations to the 
                Secretary with respect to criteria for awarding grants 
                under this subsection.
                    ``(B) Composition.--The panel shall be composed of 
                the following representatives, to be appointed by the 
                Secretary:
                            ``(i) Experts from each of--
                                    ``(I) the Department;
                                    ``(II) the Environmental Protection 
                                Agency; and
                                    ``(III) the Department of Energy.
                            ``(ii) Experts from nongovernmental and 
                        academic entities.
            ``(5) Payment of grant funds.--The Secretary shall provide 
        a grant awarded under this section in such number of 
        installments as is necessary to ensure proper implementation of 
        an eligible project.
    ``(c) Dissemination of Information.--As soon as practicable after 
the date of enactment of this section, the Secretary shall establish an 
Internet site through which agricultural producers, non-industrial 
private forest owners and farmer-owned cooperatives may obtain 
information concerning--
            ``(1) potential environmental trades; and
            ``(2) activities of the Secretary under this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2002 through 2006, of which $1,000,000 for each of fiscal years 
2002 through 2006 shall be made available to carry out farmer-owned 
cooperative carbon environmental trade pilot projects, in accordance 
with this section.''.

SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL RENEWABLE FUELS 
              STANDARD.

    It is the sense of Congress that--
            (1) Congress supports and encourages adoption of a national 
        renewable fuels program, under which the motor vehicle fuel 
        placed into commerce by a refiner, blender, or importer shall 
        be composed of renewable fuel measured according to a statutory 
        formula for specified calendar years; and
            (2) the Secretary of Agriculture should ensure that the 
        policies and programs of the Department of Agriculture promote 
        the production of fuels from renewable fuel sources.

SEC. 907. SENSE OF CONGRESS CONCERNING THE BIOENERGY PROGRAM OF THE 
              DEPARTMENT OF AGRICULTURE.

    It is the sense of Congress that--
            (1) ethanol and biofuel production capacity will be needed 
        to phase out the use of methyl tertiary butyl ether in gasoline 
        and the dependence of the United States on foreign oil; and
            (2) the bioenergy program of the Department of Agriculture 
        under part 1424 of title 7, Code of Federal Regulations, should 
        be continued and expanded.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

SEC. 1001. 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--
                            ``(i) processed beef, lamb, and pork food 
                        items; and
                            ``(ii) frozen entrees containing beef, 
                        lamb, and pork.
            ``(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, 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, lamb, and pork, is 
                exclusively from an animal that is exclusively born, 
                raised, and slaughtered in the United States;
                    ``(B) in the case of farm-raised fish, is hatched, 
                raised, harvested, and processed in the United States;
                    ``(C) 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
                    ``(D) in the case of a perishable agricultural 
                commodities or peanut, 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 ensure compliance with the 
regulations promulgated under section 284.
    ``(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 subsection (b), 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 (c)(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 determined 
by the Secretary.

``SEC. 284. REGULATIONS.

    ``(a) In General.--The Secretary may promulgate such regulations as 
are necessary to carry out this subtitle.
    ``(b) Partnerships With States.--In promulgating the regulations, 
the Secretary shall, to the maximum extent practicable, enter into 
partnerships with States with enforcement infrastructure to carry out 
this subtitle.

``SEC. 285. APPLICATION.

    ``This subtitle shall apply to the retail sale of a covered 
commodity beginning on the date that is 180 days after the date of the 
enactment of this subtitle.''.

SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT FOOD 
              PRODUCTS.

    The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) (as 
amended by section 1001) is amended by adding at the end the following:

           ``Subtitle E--Commodity-Specific Grading Standards

``SEC. 291. DEFINITION OF SECRETARY.

    ``In this subtitle, the term `Secretary' means the Secretary of 
Agriculture.

``SEC. 292. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT FOOD 
              PRODUCTS.

    ``An imported carcass, part thereof, meat, or meat food product (as 
defined by the Secretary) shall not bear a label that indicates a 
quality grade issued by the Secretary.

``SEC. 293. REGULATIONS.

    ``The Secretary shall promulgate such regulations as are necessary 
to ensure compliance with, and otherwise carry out, this subtitle.''.

                       Subtitle B--Crop Insurance

SEC. 1011. 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. 1012. 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. 1013. QUALITY LOSS ADJUSTMENT PROCEDURES.

    Section 508(m)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(m)(3)) is amended--
            (1) by striking ``The Corporation'' and inserting the 
        following:
                    ``(A) Review.--The Corporation''; and
            (2) by striking ``Based on'' and inserting the following:
                    ``(B) Procedures.--Effective beginning not later 
                than the 2003 reinsurance year, based on''.

SEC. 1014. CONSERVATION REQUIREMENTS.

    (a) Highly Erodible Land Conservation.--Section 1211(1) of the Food 
Security Act of 1985 (16 U.S.C. 3811(1)) is amended--
            (1) in subparagraph (A), by striking ``production 
        flexibility'';
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) an indemnity payment under the Federal Crop 
                Insurance Act (7 U.S.C. 1501 et seq.);''.
    (b) Wetland Conservation.--Section 1221(b) of the Food Security Act 
of 1985 (16 U.S.C. 3821(b)) is amended--
            (1) in paragraph (1), by striking ``production 
        flexibility'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (1) the following:
            ``(2) A farm storage facility loan made under section 4(h) 
        of the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714b(h)).
            ``(3) A disaster payment.
            ``(4) An indemnity payment under the Federal Crop Insurance 
        Act (7 U.S.C. 1501 et seq.).''.
    (c) Controlled Substances Production Control.--Section 519(b) of 
the Controlled Substances Act (21 U.S.C. 889(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) contract payments under a contract, marketing 
                assistance loans, and any type of price support or 
                payment made available under the Agricultural Market 
                Transition Act (7 U.S.C. 7201 et seq.), the Commodity 
                Credit Corporation Charter Act (15 U.S.C. 714 et seq.), 
                or any other Act;'';
                    (B) by striking subparagraphs (C) and (D) and 
                inserting the following:
                    ``(C) an indemnity payment under the Federal Crop 
                Insurance Act (7 U.S.C. 1501 et seq.);
                    ``(D) a disaster payment; or'';
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) during the crop year--
                    ``(A) a payment made pursuant to a contract entered 
                into under the environmental quality incentives program 
                under chapter 4 of subtitle D of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3839aa et seq.);
                    ``(B) a payment under any other provision of 
                subtitle D of title XII of that Act (16 U.S.C. 3830 et 
                seq.);
                    ``(C) a payment under section 401 or 402 of the 
                Agricultural Credit Act of 1978 (16 U.S.C. 2201, 2202); 
                or
                    ``(D) a payment, loan, or other assistance under 
                section 3 or 8 of the Watershed Protection and Flood 
                Prevention Act (16 U.S.C. 1003 and 1006a).''.

                  Subtitle C--Animal Health Protection

SEC. 1021. SHORT TITLE.

    This subtitle may be cited as the ``Animal Health Protection Act''.

SEC. 1022. 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. 1023. 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'' means--
                    (A) any infectious or noninfectious disease or 
                condition affecting the health of livestock; or
                    (B) any condition detrimental to production of 
                livestock.
            (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) An animal.
                    (L) 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. 1024. RESTRICTION ON IMPORTATION OR ENTRY.

    (a) In General.--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.--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. 1025. 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. 1026. 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. 1027. 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 of determination.--The 
                determination by the Secretary of the amount to be paid 
                under this subsection shall be final and not subject to 
                judicial review.
            (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. 1028. 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 1027(b), on probable 
        cause to believe that the person or means of conveyance is 
        carrying any animal or article quarantined under section 
        1027(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. 1029. 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.--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.

SEC. 1030. 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 regarding the establishment of the veterinary 
accreditation program.

SEC. 1031. 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 With Other Federal Agencies.--
            (1) In general.--The Secretary shall consult with the head 
        of a Federal agency with respect to any activity that is under 
        the jurisdiction of the Federal agency.
            (2) Lead agency.--The Department of Agriculture shall be 
        the lead agency with respect to issues related to pests and 
        diseases of livestock.

SEC. 1032. 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. 1033. 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. 1034. PENALTIES.

    (a) Criminal Penalties.--Any person that knowingly violates this 
subtitle, or that knowingly forges, counterfeits, or, without authority 
from the Secretary, uses, alters, defaces, or destroys any certificate, 
permit, or other document provided under this subtitle shall be guilty 
of a misdemeanor, and, on conviction, shall be fined in accordance with 
title 18, United States Code, imprisoned not more than 1 year, or both.
    (b) Civil Penalties.--
            (1) In general.--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) 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 
        subtitle that 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.--Notwithstanding paragraph (1), the 
                Secretary may summarily suspend the accreditation of a 
                veterinarian who the Secretary has reason to believe 
                has violated this subtitle.
                    (B) Hearings.--The Secretary shall provide the 
                accredited veterinarian with a subsequent notice and an 
                opportunity for a prompt post-suspension hearing on the 
                record.
    (d) 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.
    (e) Guidelines for Civil Penalties.--The Secretary shall coordinate 
with the Attorney General to establish guidelines to determine under 
what circumstances the Secretary may issue a civil penalty or suitable 
notice of warning in lieu of prosecution by the Attorney General of a 
violation of this subtitle.

SEC. 1035. 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 
        subsections (b) and (c) of section 1034.

SEC. 1036. REGULATIONS AND ORDERS.

    The Secretary may promulgate such regulations, and issue such 
orders, as the Secretary determines necessary to carry out this 
subtitle.

SEC. 1037. 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.
    (c) Use of Funds.--In carrying out this subtitle, the Secretary may 
use funds made available to carry out this subtitle for--
            (1) printing and binding, without regard to section 501 of 
        title 44, United States Code;
            (2) the employment of civilian nationals in foreign 
        countries; and
            (3) the construction and operation of research 
        laboratories, quarantine stations, and other buildings and 
        facilities for special purposes.

SEC. 1038. 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) Section 2506 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (21 U.S.C. 114i).
            (13) 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).
            (14) The first section and sections 2, 3, 4, and 6 of the 
        Act of March 3, 1905 (21 U.S.C. 123 through 127).
            (15) 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).
            (16) 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).
            (17) The third paragraph under the heading 
        ``MISCELLANEOUS'' of the Act of May 26, 1910 (21 U.S.C. 131).
            (18) The first section and sections 2 through 6 and 11 
        through 13 of Public Law 87-518 (21 U.S.C. 134 through 134h).
            (19) Public Law 91-239 (21 U.S.C. 135 through 135b).
            (20) Sections 12 through 14 of the Federal Meat Inspection 
        Act (21 U.S.C. 612 through 614).
            (21) 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 1036 that supersedes the 
earlier regulation.

                     Subtitle D--General Provisions

SEC. 1041. FEES FOR PESTICIDES.

    (a) Maintenance Fee.--
            (1) Amounts for registrants.--Section 4(i)(5) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136a-1(i)(5)) is amended--
                    (A) in subparagraph (A), by striking ``each year'' 
                and all that follows and inserting ``each year $2,300 
                for each registration'';
                    (B) in subparagraph (D)--
                            (i) in clause (i), by striking ``$55,000'' 
                        and inserting ``$70,000''; and
                            (ii) in clause (ii), by striking 
                        ``$95,000'' and inserting ``$120,000''; and
                    (C) in subparagraph (E)(i)--
                            (i) in subclause (I) by striking 
                        ``$38,500'' and inserting ``$46,000''; and
                            (ii) in subclause (II), by striking 
                        ``$66,500'' and inserting ``$80,000''.
            (2) Total amount of fees.--Section 4(i)(5)(C) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136(a)-1(i)(5)(C)) is amended--
                    (A) by striking ``(C)(i) The'' and inserting the 
                following:
                    ``(C) Total amount of fees.--The'';
                    (B) by striking ``$14,000,000 each fiscal year'' 
                and inserting ``$20,000,000 for the period beginning on 
                January 1, 2002, and ending on February 28, 2002''; and
                    (C) by striking clause (ii).
            (3) Definition of small business.--Section 4(i)(5)(E)(ii) 
        of the Federal Insecticide, Fungicide, and Rodenticide Act (7 
        U.S.C. 136a-1(i)(5)(E)(ii)) is amended--
                    (A) in subclause (I), by striking ``150'' and 
                inserting ``500''; and
                    (B) in subclause (II), by striking ``gross revenue 
                from chemicals that did not exceed $40,000,000'' and 
                inserting ``global gross revenue from pesticides that 
                did not exceed $60,000,000''.
            (4) Period of effectiveness.--Section 4(i)(5) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136a-1(i)(5)) is amended by striking subparagraph (H) and 
        inserting the following:
                    ``(H) Period of effectiveness.--This paragraph 
                shall be in effect during the period beginning on 
                January 1, 2002, and ending on February 28, 2002.''.
    (b) Other Fees.--Section 4(i)(6) of the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. 136a-1(i)(6)) is amended by 
striking ``the date of the enactment of this section and ending on 
September 30, 2001'' and inserting ``January 1, 2002, and ending on 
February 28, 2002''.
    (c) Expedited Processing of Similar Applications.--Section 4(k)(3) 
of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
136a-1(k)(3)) is amended--
            (1) in the paragraph heading, by striking ``Expedited'' and 
        inserting ``Review of inert ingredients; expedited''; and
            (2) in subparagraph (A)--
                    (A) by striking ``each of the'' and all that 
                follows through ``such fiscal year'' and inserting 
                ``the period beginning on January 1, 2002, and ending 
                on February 28, 2002, \1/7\ of the maintenance fees 
                collected during the period'';
                    (B) by redesignating clauses (i), (ii), and (iii) 
                as subclauses (I), (II), and (III), respectively, and 
                adjusting the margins appropriately; and
                    (C) by striking ``assure the expedited processing 
                and review of any applicant that'' and inserting the 
                following:
                            ``(i) review and evaluate inert 
                        ingredients; and
                            ``(ii) ensure the expedited processing and 
                        review of any application that--''.
    (d) Pesticide Tolerance Processing Fees.--Section 408(m)(1) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 346a(m)(1)) is 
amended--
            (1) by striking ``The Administrator'' and inserting the 
        following:
                    ``(A) In general.--The Administrator'';
            (2) by striking ``Under the regulations'' and inserting the 
        following:
                    ``(B) Inclusions.--Under the regulations'';
            (3) by redesignating subparagraphs (A), (B), (C), and (D) 
        as clauses (i), (ii), (iii), and (iv), respectively, and 
        adjusting the margins appropriately;
            (4) by striking ``The regulations may'' and inserting the 
        following:
                    ``(C) Waiver; refund.--The regulations may''; and
            (5) by adding at the end the following:
                    ``(D) Annual adjustment of fees.--The Administrator 
                may annually promulgate regulations to implement 
                changes in the amounts in the schedule of pesticide 
                tolerance processing fees in effect on the date of 
                enactment of this subparagraph by the same percentage 
                as the annual adjustment to the Federal General 
                Schedule pay scale under section 5303 of title 5, 
                United States Code.
                    ``(E) Period of effectiveness.--This paragraph 
                shall be in effect during the period beginning on 
                January 1, 2002, and ending on February 28, 2002.''.

SEC. 1042. PEST MANAGEMENT IN SCHOOLS.

    (a) Short Title.--This section may be cited as the ``School 
Environment Protection Act of 2002''.
    (b) Pest Management.--The Federal Insecticide, Fungicide, and 
Rodenticide Act is amended--
            (1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 
        136y) as sections 34 and 35, respectively; and
            (2) by inserting after section 32 (7 U.S.C. 136w-7) the 
        following:

``SEC. 33. PEST MANAGEMENT IN SCHOOLS.

    ``(a) Definitions.--In this section:
            ``(1) Bait.--The term `bait' means a pesticide that 
        contains an ingredient that serves as a feeding stimulant, 
        odor, pheromone, or other attractant for a target pest.
            ``(2) Contact person.--The term `contact person' means an 
        individual who is--
                    ``(A) knowledgeable about school pest management 
                plans; and
                    ``(B) designated by a local educational agency to 
                carry out implementation of the school pest management 
                plan of a school.
            ``(3) Emergency.--The term `emergency' means an urgent need 
        to mitigate or eliminate a pest that threatens the health or 
        safety of a student or staff member.
            ``(4) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 3 
        of the Elementary and Secondary Education Act of 1965.
            ``(5) School.--
                    ``(A) In general.--The term `school' means a 
                public--
                            ``(i) elementary school (as defined in 
                        section 3 of the Elementary and Secondary 
                        Education Act of 1965);
                            ``(ii) secondary school (as defined in 
                        section 3 of that Act);
                            ``(iii) kindergarten or nursery school that 
                        is part of an elementary school or secondary 
                        school; or
                            ``(iv) tribally-funded school.
                    ``(B) Inclusions.--The term `school' includes any 
                school building, and any area outside of a school 
                building (including a lawn, playground, sports field, 
                and any other property or facility), that is 
                controlled, managed, or owned by the school or school 
                district.
            ``(6) School pest management plan.--The term `school pest 
        management plan' means a pest management plan developed under 
        subsection (b).
            ``(7) Staff member.--
                    ``(A) In general.--The term `staff member' means a 
                person employed at a school or local educational 
                agency.
                    ``(B) Exclusions.--The term `staff member' does not 
                include--
                            ``(i) a person hired by a school, local 
                        educational agency, or State to apply a 
                        pesticide; or
                            ``(ii) a person assisting in the 
                        application of a pesticide.
            ``(8) State agency.--The term `State agency' means the an 
        agency of a State, or an agency of an Indian tribe or tribal 
        organization (as those terms are defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)), that exercises primary jurisdiction over matters 
        relating to pesticide regulation.
            ``(9) Universal notification.--The term `universal 
        notification' means notice provided by a local educational 
        agency or school to--
                    ``(A) parents, legal guardians, or other persons 
                with legal standing as parents of each child attending 
                the school; and
                    ``(B) staff members of the school.
    ``(b) School Pest Management Plans.--
            ``(1) State plans.--
                    ``(A) Guidance.--As soon as practicable (but not 
                later than 180 days) after the date of enactment of the 
                School Environment Protection Act of 2002, the 
                Administrator shall develop, in accordance with this 
                section--
                            ``(i) guidance for a school pest management 
                        plan; and
                            ``(ii) a sample school pest management 
                        plan.
                    ``(B) Plan.--As soon as practicable (but not later 
                than 1 year) after the date of enactment of the School 
                Environment Protection Act of 2002, each State agency 
                shall develop and submit to the Administrator for 
                approval, as part of the State cooperative agreement 
                under section 23, a school pest management plan for 
                local educational agencies in the State.
                    ``(C) Components.--A school pest management plan 
                developed under subparagraph (B) shall, at a minimum--
                            ``(i) implement a system that--
                                    ``(I) eliminates or mitigates 
                                health risks, or economic or aesthetic 
                                damage, caused by pests;
                                    ``(II) employs--
                                            ``(aa) integrated methods;
                                            ``(bb) site or pest 
                                        inspection;
                                            ``(cc) pest population 
                                        monitoring; and
                                            ``(dd) an evaluation of the 
                                        need for pest management; and
                                    ``(III) is developed taking into 
                                consideration pest management 
                                alternatives (including sanitation, 
                                structural repair, and mechanical, 
                                biological, cultural, and pesticide 
                                strategies) that minimize health and 
                                environmental risks;
                            ``(ii) require, for pesticide applications 
                        at the school, universal notification to be 
                        provided--
                                    ``(I) at the beginning of the 
                                school year;
                                    ``(II) at the midpoint of the 
                                school year; and
                                    ``(III) at the beginning of any 
                                summer session, as determined by the 
                                school;
                            ``(iii) establish a registry of staff 
                        members of a school, and of parents, legal 
                        guardians, or other persons with legal standing 
                        as parents of each child attending the school, 
                        that have requested to be notified in advance 
                        of any pesticide application at the school;
                            ``(iv) establish guidelines that are 
                        consistent with the definition of a school pest 
                        management plan under subsection (a);
                            ``(v) require that each local educational 
                        agency use a certified applicator or a person 
                        authorized by the State agency to implement the 
                        school pest management plans;
                            ``(vi) be consistent with the State 
                        cooperative agreement under section 23; and
                            ``(vii) require the posting of signs in 
                        accordance with paragraph (4)(G).
                    ``(D) Approval by administrator.--Not later than 90 
                days after receiving a school pest management plan 
                submitted by a State agency under subparagraph (B), the 
                Administrator shall--
                            ``(i) determine whether the school pest 
                        management plan, at a minimum, meets the 
                        requirements of subparagraph (C); and
                            ``(ii)(I) if the Administrator determines 
                        that the school pest management plan meets the 
                        requirements, approve the school pest 
                        management plan as part of the State 
                        cooperative agreement; or
                            ``(II) if the Administrator determines that 
                        the school pest management plan does not meet 
                        the requirements--
                                    ``(aa) disapprove the school pest 
                                management plan;
                                    ``(bb) provide the State agency 
                                with recommendations for and assistance 
                                in revising the school pest management 
                                plan to meet the requirements; and
                                    ``(cc) provide a 90-day deadline by 
                                which the State agency shall resubmit 
                                the revised school pest management plan 
                                to obtain approval of the plan, in 
                                accordance with the State cooperative 
                                agreement.
                    ``(E) Distribution of state plan to schools.--On 
                approval of the school pest management plan of a State 
                agency, the State agency shall make the school pest 
                management plan available to each local educational 
                agency in the State.
                    ``(F) Exception for existing state plans.--If, on 
                the date of enactment of the School Environment 
                Protection Act of 2002, a State has implemented a 
                school pest management plan that, at a minimum, meets 
                the requirements under subparagraph (C) (as determined 
                by the Administrator), the State agency may maintain 
                the school pest management plan and shall not be 
                required to develop a new school pest management plan 
                under subparagraph (B).
            ``(2) Implementation by local educational agencies.--
                    ``(A) In general.--Not later than 1 year after the 
                date on which a local educational agency receives a 
                copy of a school pest management plan of a State agency 
                under paragraph (1)(E), the local educational agency 
                shall develop and implement in each of the schools 
                under the jurisdiction of the local educational agency 
                a school pest management plan that meets the standards 
                and requirements under the school pest management plan 
                of the State agency, as determined by the 
                Administrator.
                    ``(B) Exception for existing plans.--If, on the 
                date of enactment of the School Environment Protection 
                Act of 2002, a State maintains a school pest management 
                plan that, at a minimum, meets the standards and 
                criteria established under this section (as determined 
                by the Administrator), and a local educational agency 
                in the State has implemented the State school pest 
                management plan, the local educational agency may 
                maintain the school pest management plan and shall not 
                be required to develop and implement a new school pest 
                management plan under subparagraph (A).
                    ``(C) Application of pesticides at schools.--A 
                school pest management plan shall prohibit--
                            ``(i) the application of a pesticide (other 
                        than a pesticide, including a bait, gel or 
                        paste, described in paragraph (4)(C)) to any 
                        area or room at a school while the area or room 
                        is occupied or in use by students or staff 
                        members (except students or staff members 
                        participating in regular or vocational 
                        agricultural instruction involving the use of 
                        pesticides); and
                            ``(ii) the use by students or staff members 
                        of an area or room treated with a pesticide by 
                        broadcast spraying, baseboard spraying, 
                        tenting, or fogging during--
                                    ``(I) the period specified on the 
                                label of the pesticide during which a 
                                treated area or room should remain 
                                unoccupied; or
                                    ``(II) if there is no period 
                                specified on the label, the 24-hour 
                                period beginning at the end of the 
                                treatment.
            ``(3) Contact person.--
                    ``(A) In general.--Each local educational agency 
                shall designate a contact person to carry out a school 
                pest management plan in schools under the jurisdiction 
                of the local educational agency.
                    ``(B) Duties.--The contact person of a local 
                educational agency shall--
                            ``(i) maintain information about the 
                        scheduling of pesticide applications in each 
                        school under the jurisdiction of the local 
                        educational agency;
                            ``(ii) act as a contact for inquiries, and 
                        disseminate information requested by parents or 
                        guardians, about the school pest management 
                        plan;
                            ``(iii) maintain and make available to 
                        parents, legal guardians, or other persons with 
                        legal standing as parents of each child 
                        attending the school, before and during the 
                        notice period and after application--
                                    ``(I) copies of material safety 
                                data sheet for pesticides applied at 
                                the school, or copies of material 
                                safety data sheets for end-use 
                                dilutions of pesticides applied at the 
                                school, if data sheets are available;
                                    ``(II) labels and fact sheets 
                                approved by the Administrator for all 
                                pesticides that may be used by the 
                                local educational agency; and
                                    ``(III) any final official 
                                information related to the pesticide, 
                                as provided to the local educational 
                                agency by the State agency; and
                            ``(iv) for each school, maintain all 
                        pesticide use data for each pesticide used at 
                        the school (other than antimicrobial pesticides 
                        (as defined in clauses (i) and (ii) of section 
                        2(mm)(1)(A))) for at least 3 years after the 
                        date on which the pesticide is applied; and
                            ``(v) make that data available for 
                        inspection on request by any person.
            ``(4) Notification.--
                    ``(A) Universal notification.--At the beginning of 
                each school year, at the midpoint of each school year, 
                and at the beginning of any summer session (as 
                determined by the school), a local educational agency 
                or school shall provide to staff members of a school, 
                and to parents, legal guardians, and other persons with 
                legal standing as parents of students enrolled at the 
                school, a notice describing the school pest management 
                plan that includes--
                            ``(i) a summary of the requirements and 
                        procedures under the school pest management 
                        plan;
                            ``(ii) a description of any potential pest 
                        problems that the school may experience 
                        (including a description of the procedures that 
                        may be used to address those problems);
                            ``(iii) the address, telephone number, and 
                        website address of the Office of Pesticide 
                        Programs of the Environmental Protection 
                        Agency; and
                            ``(iv) the following statement (including 
                        information to be supplied by the school as 
                        indicated in brackets):
`As part of a school pest management plan, __________ (insert school 
name) may use pesticides to control pests. The Environmental Protection 
Agency (EPA) and __________ (insert name of State agency exercising 
jurisdiction over pesticide registration and use) registers pesticides 
for that use. EPA continues to examine registered pesticides to 
determine that use of the pesticides in accordance with instructions 
printed on the label does not pose unreasonable risks to human health 
and the environment. Nevertheless, EPA cannot guarantee that registered 
pesticides do not pose risks, and unnecessary exposure to pesticides 
should be avoided. Based in part on recommendations of a 1993 study by 
the National Academy of Sciences that reviewed registered pesticides 
and their potential to cause unreasonable adverse effects on human 
health, particularly on the health of pregnant women, infants, and 
children, Congress enacted the Food Quality Protection Act of 1996. 
That law requires EPA to reevaluate all registered pesticides and new 
pesticides to measure their safety, taking into account the unique 
exposures and sensitivity that pregnant women, infants, and children 
may have to pesticides. EPA review under that law is ongoing. You may 
request to be notified at least 24 hours in advance of pesticide 
applications to be made and receive information about the applications 
by registering with the school. Certain pesticides used by the school 
(including baits, pastes, and gels) are exempt from notification 
requirements. If you would like more information concerning any 
pesticide application or any product used at the school, contact 
__________ (insert name and phone number of contact person).'.
                    ``(B) Notification to persons on registry.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and paragraph (5)--
                                    ``(I) notice of an upcoming 
                                pesticide application at a school shall 
                                be provided to each person on the 
                                registry of the school not later than 
                                24 hours before the end of the last 
                                business day during which the school is 
                                in session that precedes the day on 
                                which the application is to be made; 
                                and
                                    ``(II) the application of a 
                                pesticide for which a notice is given 
                                under subclause (I) shall not commence 
                                before the end of the business day.
                            ``(ii) Notification concerning pesticides 
                        used in curricula.--If pesticides are used as 
                        part of a regular vocational agricultural 
                        curriculum of the school, a notice containing 
                        the information described in subclauses (I), 
                        (IV), (VI), and (VII) of clause (iii) for all 
                        pesticides that may be used as a part of that 
                        curriculum shall be provided to persons on the 
                        registry only once at the beginning of each 
                        academic term of the school.
                            ``(iii) Contents of notice.--A notice under 
                        clause (i) shall contain--
                                    ``(I) the trade name, common name 
                                (if applicable), and Environmental 
                                Protection Agency registration number 
                                of each pesticide to be applied;
                                    ``(II) a description of each 
                                location at the school at which a 
                                pesticide is to be applied;
                                    ``(III) a description of the date 
                                and time of application, except that, 
                                in the case of an outdoor pesticide 
                                application, a notice shall include at 
                                least 3 dates, in chronological order, 
                                on which the outdoor pesticide 
                                application may take place if the 
                                preceding date is canceled;
                                    ``(IV) information that the State 
                                agency shall provide to the local 
                                educational agency, including a 
                                description of potentially acute and 
                                chronic effects that may result from 
                                exposure to each pesticide to be 
                                applied based on--
                                            ``(aa) a description of 
                                        potentially acute and chronic 
                                        effects that may result from 
                                        exposure to each pesticide to 
                                        be applied, as stated on the 
                                        label of the pesticide approved 
                                        by the Administrator;
                                            ``(bb) information derived 
                                        from the material safety data 
                                        sheet for the end-use dilution 
                                        of the pesticide to be applied 
                                        (if available) or the material 
                                        safety data sheets; and
                                            ``(cc) final, official 
                                        information related to the 
                                        pesticide prepared by the 
                                        Administrator and provided to 
                                        the local educational agency by 
                                        the State agency;
                                    ``(V) a description of the purpose 
                                of the application of the pesticide;
                                    ``(VI) the address, telephone 
                                number, and website address of the 
                                Office of Pesticide Programs of the 
                                Environmental Protection Agency; and
                                    ``(VII) the statement described in 
                                subparagraph (A)(iv) (other than the 
                                ninth sentence of that statement).
                    ``(C) Notification and posting exemption.--A notice 
                or posting of a sign under subparagraph (A), (B), or 
                (G) shall not be required for the application at a 
                school of--
                            ``(i) an antimicrobial pesticide;
                            ``(ii) a bait, gel, or paste that is 
                        placed--
                                    ``(I) out of reach of children or 
                                in an area that is not accessible to 
                                children; or
                                    ``(II) in a tamper-resistant or 
                                child-resistant container or station; 
                                and
                            ``(iii) any pesticide that, as of the date 
                        of enactment of the School Environment 
                        Protection Act of 2002, is exempt from the 
                        requirements of this Act under section 25(b) 
                        (including regulations promulgated at section 
                        152 of title 40, Code of Federal Regulations 
                        (or any successor regulation)).
                    ``(D) New staff members and students.--After the 
                beginning of each school year, a local educational 
                agency or school within a local educational agency 
                shall provide each notice required under subparagraph 
                (A) to--
                            ``(i) each new staff member who is employed 
                        during the school year; and
                            ``(ii) the parent or guardian of each new 
                        student enrolled during the school year.
                    ``(E) Method of notification.--A local educational 
                agency or school may provide a notice under this 
                subsection, using information described in paragraph 
                (4), in the form of--
                            ``(i) a written notice sent home with the 
                        students and provided to staff members;
                            ``(ii) a telephone call;
                            ``(iii) direct contact;
                            ``(iv) a written notice mailed at least 1 
                        week before the application; or
                            ``(v) a notice delivered electronically 
                        (such as through electronic mail or facsimile).
                    ``(F) Reissuance.--If the date of the application 
                of the pesticide needs to be extended beyond the period 
                required for notice under this paragraph, the school 
                shall issue a notice containing only the new date and 
                location of application.
                    ``(G) Posting of signs.--
                            ``(i) In general.--Except as provided in 
                        paragraph (5)--
                                    ``(I) a school shall post a sign 
                                not later than the last business day 
                                during which school is in session 
                                preceding the date of application of a 
                                pesticide at the school; and
                                    ``(II) the application for which a 
                                sign is posted under subclause (I) 
                                shall not commence before the time that 
                                is 24 hours after the end of the 
                                business day on which the sign is 
                                posted.
                            ``(ii) Location.--A sign shall be posted 
                        under clause (i)--
                                    ``(I) at a central location 
                                noticeable to individuals entering the 
                                building; and
                                    ``(II) at the proposed site of 
                                application.
                            ``(iii) Administration.--A sign required to 
                        be posted under clause (i) shall--
                                    ``(I) remain posted for at least 24 
                                hours after the end of the application;
                                    ``(II) be--
                                            ``(aa) at least 8\1/2\ 
                                        inches by 11 inches for signs 
                                        posted inside the school; and
                                            ``(bb) at least 4 inches by 
                                        5 inches for signs posted 
                                        outside the school; and
                                    ``(III) contain--
                                            ``(aa) information about 
                                        the pest problem for which the 
                                        application is necessary;
                                            ``(bb) the name of each 
                                        pesticide to be used;
                                            ``(cc) the date of 
                                        application;
                                            ``(dd) the name and 
                                        telephone number of the 
                                        designated contact person; and
                                            ``(ee) the statement 
                                        contained in subparagraph 
                                        (A)(iv).
                            ``(iv) Outdoor pesticide applications.--
                                    ``(I) In general.--In the case of 
                                an outdoor pesticide application at a 
                                school, each sign shall include at 
                                least 3 dates, in chronological order, 
                                on which the outdoor pesticide 
                                application may take place if the 
                                preceding date is canceled.
                                    ``(II) Duration of posting.--A sign 
                                described in subclause (I) shall be 
                                posted after an outdoor pesticide 
                                application in accordance with clauses 
                                (ii) and (iii).
            ``(5) Emergencies.--
                    ``(A) In general.--A school may apply a pesticide 
                at the school without complying with this part in an 
                emergency, subject to subparagraph (B).
                    ``(B) Subsequent notification of parents, 
                guardians, and staff members.--Not later than the 
                earlier of the time that is 24 hours after a school 
                applies a pesticide under this paragraph or on the 
                morning of the next business day, the school shall 
                provide to each parent or guardian of a student listed 
                on the registry, a staff member listed on the registry, 
                and the designated contact person, notice of the 
                application of the pesticide in an emergency that 
                includes--
                            ``(i) the information required for a notice 
                        under paragraph (4)(G); and
                            ``(ii) a description of the problem and the 
                        factors that required the application of the 
                        pesticide to avoid a threat to the health or 
                        safety of a student or staff member.
                    ``(C) Method of notification.--The school may 
                provide the notice required by paragraph (B) by any 
                method of notification described in paragraph (4)(E).
                    ``(D) Posting of signs.--Immediately after the 
                application of a pesticide under this paragraph, a 
                school shall post a sign warning of the pesticide 
                application in accordance with clauses (ii) through 
                (iv) of paragraph (4)(B).
    ``(c) Relationship to State and Local Requirements.--Nothing in 
this section (including regulations promulgated under this section)--
            ``(1) precludes a State or political subdivision of a State 
        from imposing on local educational agencies and schools any 
        requirement under State or local law (including regulations) 
        that is more stringent than the requirements imposed under this 
        section; or
            ``(2) establishes any exception under, or affects in any 
        other way, section 24(b).
    ``(d) Exclusion of Certain Pest Management Activities.--Nothing in 
this section (including regulations promulgated under this section) 
applies to a pest management activity that is conducted--
            ``(1) on or adjacent to a school; and
            ``(2) by, or at the direction of, a State or local agency 
        other than a local educational agency.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (c) Conforming Amendment.--The table of contents in section 1(b) of 
the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. prec. 
121) is amended by striking the items relating to sections 30 through 
32 and inserting the following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
                            and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
        ``(a) In general.
        ``(b)(1) Minor use pesticide data.
        ``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Pest management in schools.
        ``(a) Definitions.
            ``(1) Bait.
            ``(2) Contact person.
            ``(3) Emergency.
            ``(4) Local educational agency.
            ``(5) School.
            ``(6) Staff member.
            ``(7) State agency.
            ``(8) Universal notification.
        ``(b) School pest management plans.
            ``(1) State plans.
            ``(2) Implementation by local educational agencies.
            ``(3) Contact person.
            ``(4) Notification.
            ``(5) Emergencies.
        ``(c) Relationship to State and local requirements.
        ``(d) Exclusion of certain pest management activities.
        ``(e) Authorization of appropriations.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.
    (d) Effective Date.--This section and the amendments made by this 
section take effect on October 1, 2002.

SEC. 1043. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING 
              LIVESTOCK.

    (a) In General.--Section 202 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 192), is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (2) by inserting after subsection (e) the following:
    ``(f) Own, feed, or control livestock intended for slaughter (for 
more than 14 days prior to slaughter and acting through the packer or a 
person that directly or indirectly controls, or is controlled by or 
under common control with, the packer), except that this subsection 
shall not apply to--
            ``(1) a cooperative or entity owned by a cooperative, if a 
        majority of the ownership interest in the cooperative is held 
        by active cooperative members that--
                    ``(A) own, feed, or control livestock; and
                    ``(B) provide the livestock to the cooperative for 
                slaughter; or
            ``(2) a packer that is owned or controlled by producers of 
        a type of livestock, if during a calendar year the packer 
        slaughters less than 2 percent of the head of that type of 
        livestock slaughtered in the United States; or''; and
            (3) in subsection (h) (as so redesignated), by striking 
        ``or (e)'' and inserting ``(e), or (f)''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by subsection (a) take effect on the date of enactment of 
        this Act.
            (2) Transition rules.--In the case of a packer that on the 
        date of enactment of this Act owns, feeds, or controls 
        livestock intended for slaughter in violation of section 202(f) 
        of the Packers and Stockyards Act, 1921 (as amended by 
        subsection (a)), the amendments made by subsection (a) apply to 
        the packer--
                    (A) in the case of a packer of swine, beginning on 
                the date that is 18 months after the date of enactment 
                of this Act; and
                    (B) in the case of a packer of any other type of 
                livestock, beginning as soon as practicable, but not 
                later than 180 days, after the date of enactment of 
                this Act, as determined by the Secretary of 
                Agriculture.

SEC. 1044. PACKERS AND STOCKYARDS.

    (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) Livestock contractor.--The term `livestock 
        contractor' means any person engaged in the business of 
        obtaining livestock under a livestock production contract for 
        the purpose of slaughtering the livestock or selling the 
        livestock for slaughter, if--
                    ``(A) the livestock is obtained by the person in 
                commerce; or
                    ``(B) the livestock (including livestock products 
                from the livestock) obtained by the person is sold or 
                shipped in commerce.
            ``(13) Livestock production contract.--The term `livestock 
        production contract' means any growout contract or other 
        arrangement under which a livestock production contract grower 
        raises and cares for the livestock in accordance with the 
        instructions of another person.
            ``(14) Livestock production contract grower.--The term 
        `livestock production contract grower' means any person engaged 
        in the business of raising and caring for livestock in 
        accordance with the instructions of another person.''.
    (b) 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 livestock 
        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 
                ``, livestock 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 livestock 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 livestock contractor, and'' after 
                ``packer,'' each place it appears.
    (c) Right to Discuss Terms of Contract.--The Packers and Stockyards 
Act, 1921 (7 U.S.C. 181 et seq.), is amended by adding at the end the 
following:

``SEC. 417. RIGHT TO DISCUSS TERMS OF CONTRACT.

    ``(a) In General.--Notwithstanding a provision in any contract for 
the sale or production of livestock or poultry 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 any contract with--
            ``(1) a legal adviser;
            ``(2) a lender;
            ``(3) an accountant;
            ``(4) an executive or manager;
            ``(5) a landlord;
            ``(6) a family member; or
            ``(7) a Federal or State agency with responsibility for--
                    ``(A) enforcing a statute designed to protect a 
                party to the contract; or
                    ``(B) administering this Act.
    ``(b) Effect on State Laws.--Subsection (a) does not affect State 
laws that address confidentiality provisions in contracts for the sale 
or production of livestock or poultry.''.

SEC. 1045. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY 
              LIVESTOCK.

    (a) In General.--Title III of the Packers and Stockyards Act, 1921, 
is amended by inserting after section 317 (7 U.S.C. 217a) the 
following:

``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY 
              LIVESTOCK.

    ``(a) Definitions.--In this section:
            ``(1) Humanely euthanized.--The term `humanely euthanized' 
        means to kill an animal by mechanical, chemical, or other means 
        that immediately render the animal unconscious, with this state 
        remaining until the animal's death.
            ``(2) Nonambulatory livestock.--The term `nonambulatory 
        livestock' means any livestock that is unable to stand and walk 
        unassisted.
    ``(b) Unlawful Practices.--
            ``(1) In general.--It shall be unlawful under section 312 
        for any stockyard owner, market agency, or dealer to buy, sell, 
        give, receive, transfer, market, hold, or drag any 
        nonambulatory livestock unless the nonambulatory livestock has 
        been humanely euthanized.
            ``(2) Exceptions.--
                    ``(A) Non-gipsa farms.--Paragraph (1) shall not 
                apply to any farm the animal care practices of which 
                are not subject to the authority of the Grain 
                Inspection, Packers, and Stockyards Administration.
                    ``(B) Veterinary care.--Paragraph (1) shall not 
                apply in a case in which nonambulatory livestock 
                receive veterinary care intended to render the 
                livestock ambulatory.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) takes 
        effect 1 year after the date of the enactment of this Act.
            (2) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        promulgate regulations consistent with the amendment, relating 
        to the handling, treatment, and disposition of nonambulatory 
        livestock at livestock marketing facilities or by dealers.

SEC. 1046. ARBITRATION CLAUSES.

    Title IV of the Packers and Stockyards Act, 1921, is amended by 
inserting after section 413 (7 U.S.C. 228b-4) the following:

``SEC. 413A. ARBITRATION CLAUSES.

    ``Notwithstanding any other provision of law, in the case of a 
contract for the sale or production of livestock or poultry under this 
Act that is entered into or renewed after the date of enactment of this 
section and that includes a provision that requires arbitration of a 
dispute arising from the contract, a person that seeks to resolve a 
dispute under the contract may, notwithstanding the terms of the 
contract, elect--
            ``(1) to arbitrate the dispute in accordance with the 
        contract; or
            ``(2) to resolve the dispute in accordance with any other 
        lawful method of dispute resolution, including mediation and 
        civil action.''.

SEC. 1047. COTTON CLASSIFICATION 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. 473), is amended by striking ``2002'' and inserting ``2006''.

SEC. 1048. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

    Section 1324 of the Food Security Act of 1985 (7 U.S.C. 1631) is 
amended--
            (1) in subsection (c)(4)--
                    (A) in subparagraph (B), by striking ``signed,'' 
                and inserting ``signed, authorized, or otherwise 
                authenticated by the debtor,'';
                    (B) by striking subparagraph (C);
                    (C) in subparagraph (D)--
                            (i) in clause (iii), by adding ``and'' 
                        after the semicolon at the end; and
                            (ii) 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 
                        growing or located;''; and
                    (D) by redesignating subparagraphs (D) through (I) 
                as subparagraphs (C) through (H), respectively;
            (2) in subsection (e)--
                    (A) in paragraph (1)(A)--
                            (i) in clause (ii)--
                                    (I) in subclause (III), by adding 
                                ``and'' after the semicolon at the end; 
                                and
                                    (II) 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 growing or located;''; and
                            (iii) in clause (v), by inserting 
                        ``contains'' before ``any payment''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``subparagraph'' and inserting ``subsection''; 
                        and
                            (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
            (3) subsection (g)(2)(A)--
                    (A) in clause (ii)--
                            (i) in subclause (III), by adding ``and'' 
                        after the semicolon at the end; and
                            (ii) 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 growing 
                        or located;''; and
                    (B) in clause (v), by inserting ``contains'' before 
                ``any payment''.

SEC. 1049. IMPROVED STANDARDS FOR THE CARE AND TREATMENT OF CERTAIN 
              ANIMALS.

    (a) Socialization Plan; Breeding Restrictions.--Section 13(a)(2) of 
the Animal Welfare Act (7 U.S.C. 2143(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(C) for the socialization of dogs intended for 
                sale as pets with other dogs and people, through 
                compliance with a performance standard developed by the 
                Secretary based on the recommendations of veterinarians 
                and animal welfare and behavior experts that--
                            ``(i) identifies actions that dealers and 
                        inspectors shall take to ensure adequate 
                        socialization; and
                            ``(ii) identifies a set of behavioral 
                        measures that inspectors shall use to evaluate 
                        adequate socialization; and
                    ``(D) for addressing the initiation and frequency 
                of breeding of female dogs so that a female dog is 
                not--
                            ``(i) bred before the female dog has 
                        reached at least 1 year of age; and
                            ``(ii) whelped more frequently than 3 times 
                        in any 24-month period.''.
    (b) Suspension or Revocation of License, Civil Penalties, Judicial 
Review, and Criminal Penalties.--Section 19 of the Animal Welfare Act 
(7 U.S.C. 2149) is amended--
            (1) by striking ``Sec. 19. (a) If the Secretary'' and 
        inserting the following:

``SEC. 19. SUSPENSION OR REVOCATION OF LICENSE, CIVIL PENALTIES, 
              JUDICIAL REVIEW, AND CRIMINAL PENALTIES.

    ``(a) Suspension or Revocation of License.--
            ``(1) In general.--If the Secretary'';
            (2) in subsection (a)--
                    (A) in paragraph (1) (as designated by paragraph 
                (1)), by striking ``if such violation'' and all that 
                follows and inserting ``if the Secretary determines 
                that 1 or more violations have occurred.''; and
                    (B) by adding at the end the following:
            ``(2) License revocation.--If the Secretary finds that any 
        person licensed as a dealer, exhibitor, or operator of an 
        auction sale subject to section 12, has committed a serious 
        violation (as determined by the Secretary) of any rule, 
        regulation, or standard governing the humane handling, 
        transportation, veterinary care, housing, breeding, 
        socialization, feeding, watering, or other humane treatment of 
        dogs under section 12 or 13 on 3 or more separate inspections 
        within any 8-year period, the Secretary shall--
                    ``(A) suspend the license of the person for 21 
                days; and
                    ``(B) after providing notice and a hearing not more 
                than 30 days after the third violation is noted on an 
                inspection report, revoke the license of the person 
                unless the Secretary makes a written finding that 
                revocation is unwarranted because of extraordinary 
                extenuating circumstances.'';
            (3) in subsection (b), by striking ``(b) Any dealer'' and 
        inserting ``(b) Civil Penalties.--Any dealer'';
            (4) in subsection (c), by striking ``(c) Any dealer'' and 
        inserting ``(c) Judicial Review.--Any dealer''; and
            (5) in subsection (d), by striking ``(d) Any dealer'' and 
        inserting ``(d) Criminal Penalties.--Any dealer''.
    (c) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Agriculture shall promulgate such 
regulations as are necessary to carry out the amendments made by this 
section, including development of the standards required by the 
amendments made by subsection (a).

SEC. 1050. EXPANSION OF STATE MARKETING PROGRAMS.

    (a) State Marketing Programs.--Section 204(b) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1623(b)) is amended--
            (1) by striking ``(b) The'' and all that follows through 
        ``: Provided, That no'' and inserting the following:
    ``(b) State Marketing Programs.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall make available 
        $7,000,000 for fiscal year 2003, $8,000,000 for fiscal year 
        2004, and $10,000,000 for each of fiscal years 2005 and 2006 
        for allotment to State departments of agriculture, State 
        bureaus and departments of markets, State agricultural 
        experiment stations, and other appropriate State agencies for 
        cooperative projects in marketing service and in marketing 
        research to effectuate the purposes of--
                    ``(A) title II of this Act; and
                    ``(B) the Farmer's Market Promotion Program 
                established under section 6 of the Farmer-to-Consumer 
                Direct Marketing Act of 1976.
            ``(2) Small farms and limited resource farmers.--Of the 
        funds made available under paragraph (1), a priority shall be 
        given for initiatives designed to support direct and other 
        marketing efforts of small farms and limited resource farmers.
            ``(3) State funds.--No'';
            (2) by striking ``The funds which'' and inserting the 
        following:
            ``(4) Additional funds.--The funds that'';
            (3) by striking ``The allotments'' and inserting the 
        following:
            ``(5) Recipient agencies.--The allotments'';
            (4) by striking ``Such allotments'' and inserting the 
        following:
            ``(6) Cooperative agreements.--The allotments''; and
            (5) by striking ``Should duplication'' and inserting the 
        following:
            ``(7) Duplication.--If duplication''.
    (b) Farmers' Market Promotion Program.--
            (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.''.
            (3) Farmers' market promotion program.--The Farmer-to-
        Consumer Direct Marketing Act of 1976 (7 U.S.C. 3001 et seq.) 
        is amended by inserting after section 5 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.--The purposes of the Program are--
            ``(1) 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 infrastructure; and
            ``(2) to develop, or aid in the development of, new 
        farmers' markets, roadside stands, community-supported 
        agriculture programs, and other direct producer-to-consumer 
        infrastructure.
    ``(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) Amount.--
            ``(1) In general.--Under the Program, the amount of a grant 
        to an eligible entity for any 1 project shall be not more than 
        $500,000 for any 1 fiscal year.
            ``(2) Availability.--The amount of a grant to an eligible 
        entity for a project shall be available until expended or until 
        the date on which the project terminates.
    ``(f) Cost Sharing.--
            ``(1) In general.--The share of the costs of a project 
        covered by a grant awarded under the Program shall not exceed 
        60 percent.
            ``(2) Grantee share.--
                    ``(A) Form.--The non-Federal share of the cost of a 
                project carried out under the Program may be paid in 
                the form of cash or the provision of services, 
                materials, or other in-kind contributions.
                    ``(B) Limitation.--The value of any real or 
                personal property owned by an eligible entity as of the 
                date on which the eligible entity submits a proposal 
                for a project under the Program shall not be credited 
                toward the grantee share required under this paragraph.
    ``(g) Funding.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $10,000,000 for each of fiscal years 
        2002 through 2006.
            ``(2) Limitation.--Except for funds made available pursuant 
        to section 204(b) of the Agricultural Marketing Act of 1946 (7 
        U.S.C. 1623(b)), no amounts may be made available to carry out 
        this section unless specifically provided by an appropriation 
        Act.''.

SEC. 1051. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

    Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) is 
amended by striking ``excludes horses not used for research purposes 
and'' and inserting the following: ``excludes birds, rats of the genus 
Rattus, and mice of the genus Mus bred for use in research, horses not 
used for research purposes, and''.

SEC. 1052. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL 
              WELFARE ACT.

    (a) Penalties and Foreign Commerce Provisions of the Animal Welfare 
Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended--
            (1) in subsection (e)--
                    (A) by inserting ``Penalties.--'' after ``(e)'';
                    (B) by striking ``$5,000'' and inserting 
                ``$15,000''; and
                    (C) by striking ``1 year'' and inserting ``2 
                years''; and
            (2) in subsection (g)(2)(B), by inserting at the end before 
        the semicolon the following: ``or from any State into any 
        foreign country''.
    (b) Effective Date.--The amendments made by this section take 
effect 30 days after the date of the enactment of this Act.

SEC. 1053. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL 
              FIGHTING.

    (a) Prohibition on Interstate Movement of Animals for Animal 
Fighting.--Section 26(d) of the Animal Welfare Act (7 U.S.C. 2156(d)) 
is amended to read as follows:
    ``(d) Activities Not Subject to Prohibition.--This section does not 
apply to the selling, buying, transporting, or delivery of an animal in 
interstate or foreign commerce for any purpose, so long as the purpose 
does not include participation of the animal in an animal fighting 
venture.''.
    (b) Effective Date.--The amendment made by this section take effect 
30 days after the date of the enactment of this Act.

SEC. 1054. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
              AND RANCHERS.

    (a) In General.--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) Definitions.--In this subsection:
                    ``(A) Department.--The term `Department' means the 
                Department of Agriculture.
                    ``(B) Eligible entity.--The term `eligible entity' 
                means--
                            ``(i) 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 this 
                                subsection; and
                                    ``(III) has not engaged in 
                                activities prohibited under section 
                                501(c)(3) of the Internal Revenue Code 
                                of 1986;
                            ``(ii)(I) an 1890 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;
                            ``(II) a 1994 institution (as defined in 
                        section 2 of that Act);
                            ``(III) an Indian tribal community college;
                            ``(IV) an Alaska Native cooperative 
                        college;
                            ``(V) a 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)); and
                            ``(VI) 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; and
                    ``(iii) 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.
                    ``(C) Secretary.--The term `Secretary' means the 
                Secretary of Agriculture.
            ``(2) Program.--The Secretary 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.
            ``(3) Requirements.--The outreach and technical assistance 
        program under paragraph (2) 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.
            ``(4) 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.
            ``(5) 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 2006.
                    ``(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 
                section 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.''.
    (b) Definition of Socially Disadvantaged Group.--Section 2501(e)(1) 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(1)) is amended by striking ``racial or ethnic'' and inserting 
``gender, racial, or ethnic''.

SEC. 1055. WILD FISH AND WILD SHELLFISH.

    Section 2104 of the Organic Foods Production Act of 1990 (7 U.S.C. 
6503) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Wild Fish and Wild Shellfish.--
            ``(1) In general.--Notwithstanding section 2107(a)(1), the 
        Secretary may allow, through regulations promulgated after 
        public notice and opportunity for comment, wild fish or wild 
        shellfish harvested from salt water to be certified or labeled 
        as organic.
            ``(2) Consultation and accommodation.--In carrying out 
        paragraph (1), the Secretary shall--
                    ``(A) consult with--
                            ``(i) the Secretary of Commerce;
                            ``(ii) the National Organic Standards Board 
                        established under section 2119;
                            ``(iii) producers, processors, and sellers; 
                        and
                            ``(iv) other interested members of the 
                        public; and
                    ``(B) to the maximum extent practicable, 
                accommodate the unique characteristics of the 
                industries in the United States that harvest and 
                process wild fish and shellfish.''.

SEC. 1056. 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 by adding at the 
end the following:
    ``(f) Assistant Secretary of Agriculture for Civil Rights.--
            ``(1) Definition of socially disadvantaged farmer or 
        rancher.--In this subsection, 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)).
            ``(2) Establishment of position.--The Secretary shall 
        establish within the Department the position of Assistant 
        Secretary of Agriculture for Civil Rights.
            ``(3) Appointment.--The Assistant Secretary of Agriculture 
        for Civil Rights shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            ``(4) Duties.--The Assistant Secretary of Agriculture for 
        Civil Rights shall--
                    ``(A) enforce and coordinate compliance with all 
                civil rights laws and related laws--
                            ``(i) by the agencies of the Department; 
                        and
                            ``(ii) under all programs of the Department 
                        (including all programs supported with 
                        Department funds);
                    ``(B) ensure that--
                            ``(i) the Department has measurable goals 
                        for treating customers and employees fairly and 
                        on a nondiscriminatory basis; and
                            ``(ii) the goals and the progress made in 
                        meeting the goals are included in--
                                    ``(I) strategic plans of the 
                                Department; and
                                    ``(II) annual reviews of the plans;
                    ``(C) compile and publicly disclose data used in 
                assessing civil rights compliance in achieving on a 
                nondiscriminatory basis participation of socially 
                disadvantaged farmers and ranchers in programs of the 
                Department;
                    ``(D)(i) hold Department agency heads and senior 
                executives accountable for civil rights compliance and 
                performance; and
                    ``(ii) assess performance of Department agency 
                heads and senior executives on the basis of success 
                made in those areas;
                    ``(E) ensure, to the maximum extent practicable--
                            ``(i) a sufficient level of participation 
                        by socially disadvantaged farmers and ranchers 
                        in deliberations of county and area committees 
                        established under section 8(b) of the Soil 
                        Conservation and Domestic Allotment Act (16 
                        U.S.C. 590h(b)); and
                            ``(ii) that participation data and election 
                        results involving the committees are made 
                        available to the public; and
                    ``(F) perform such other functions as may be 
                prescribed by the Secretary.''.
    (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 under section 218(f).''.

SEC. 1057. 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) Determination of participation.--In determining the 
        rates under paragraph (1), the Secretary shall consider, for 
        each county and State, the number of socially disadvantaged 
        farmers and ranchers of each race, ethnicity, and gender in 
        proportion to the total number of farmers and ranchers 
        participating in each program.''.
    (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 
                                Agriculture, Conservation, and Rural 
                                Enhancement 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 
                                        additional voting members 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.''.

SEC. 1058. ANIMAL ENTERPRISE TERRORISM.

    (a) In General.--Section 43 of title 18, United States Code, is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Offense.--
            ``(1) In general.--It shall be unlawful for a person to--
                    ``(A) travel in interstate or foreign commerce, or 
                use or cause to be used the mail or any facility in 
                interstate or foreign commerce, for the purpose of 
                causing physical disruption to the functioning of an 
                animal enterprise; and
                    ``(B) intentionally damage or cause the loss of any 
                property (including an animal or record) used by the 
                animal enterprise, or conspire to do so.
    ``(b) Penalties.--
            ``(1) Economic damage.--A person that, in the course of a 
        violation of subsection (a), causes economic damage to an 
        animal enterprise in an amount less than $10,000 shall be 
        imprisoned not more than 6 months, fined under this title, or 
        both.
            ``(2) Major economic damage.--A person that, in the course 
        of a violation of subsection (a), causes economic damage to an 
        animal enterprise in an amount equal to or greater than $10,000 
        shall be imprisoned not more than 3 years, fined under this 
        title, or both.
            ``(3) Serious bodily injury.--A person that, in the course 
        of a violation of subsection (a), causes serious bodily injury 
        to another individual shall be imprisoned not more than 20 
        years, fined under this title, or both.
            ``(4) Death.--A person that, in the course of a violation 
        of subsection (a), causes the death of an individual shall be 
        imprisoned for life or for any term of years, fined under this 
        title, or both.''; and
            (2) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``restitution--'' and inserting ``restitution 
                for--'';
                    (B) in paragraph (1)--
                            (i) by striking ``for''; and
                            (ii) by striking ``and'' at the end;
                    (C) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(3) any other economic damage resulting from the 
        offense.''.

SEC. 1059. 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 ``2006''.

SEC. 1060. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.

    Section 5402(d)(2) of title 39, United States Code (as amended by 
section 651(2) of Public Law 107-67 (115 Stat. 557)), is amended by 
striking subparagraph (C).

SEC. 1061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
              FARMWORKERS.

    Section 2281 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (42 U.S.C. 5177a) is amended--
            (1) in subsection (a), by striking ``, not to exceed 
        $20,000,000 annually,''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $40,000,000 for each of fiscal 
years 2002 through 2006.''.

SEC. 1062. TREE ASSISTANCE PROGRAM.

    (a) In General.--Section 194 of the Federal Agriculture Improvement 
and Reform Act of 1996 (Public Law 104-127; 110 Stat. 945) is amended 
to read as follows:

``SEC. 194. TREE ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(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, and other natural occurrences, as determined 
        by the Secretary.
            ``(3) Tree.--The term `tree' includes trees, bushes, and 
        vines.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Eligibility.--
            ``(1) Loss.--Subject to paragraph (2), the Secretary shall 
        provide assistance in accordance with subsection (c) to 
        eligible orchardists that, as determined by the Secretary--
                    ``(A) planted trees for commercial purposes; and
                    ``(B) lost those trees as a result of a natural 
                disaster.
            ``(2) Limitation.--An eligible orchardist shall qualify for 
        assistance under subsection (c) only if the tree mortality rate 
        of the orchardist, as a result of the natural disaster, exceeds 
        15 percent (adjusted for normal mortality), as determined by 
        the Secretary.
            ``(c) Assistance.--
            ``(1) In general.--Assistance provided by the Secretary to 
        eligible orchardists for losses described in subsection (b) 
        shall consist of--
                    ``(A) 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
                    ``(B) at the discretion of the Secretary, 
                sufficient tree seedlings to reestablish the stand.
            ``(2) Limitation on Assistance.--
                    ``(A) Limitation.--The total amount of payments 
                that a person may receive under this section shall not 
                exceed--
                            ``(i) $100,000; or
                            ``(ii) an equivalent value in tree 
                        seedlings.
                    ``(B) Regulations.--The Secretary shall promulgate 
                regulations that--
                            ``(i) define the term `person' for the 
                        purposes of this section (which definition 
                        shall conform, to the 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
                            ``(ii) prescribe such rules as the 
                        Secretary determines are necessary to ensure a 
                        fair and reasonable application of the 
                        limitation established under this section.
    ``(d) Authorization of appropriations.--Notwithstanding section 
161, there is authorized to be appropriated such sums as are necessary 
to carry out this section for each of fiscal years 2002 through 
2006.''.
    (b) Application Date.--The amendment made by subsection (a) shall 
apply to tree losses that are incurred as a result of a natural 
disaster after January 1, 2000.

SEC. 1063. PRECLEARANCE QUARANTINE INSPECTIONS.

    The Food, Agriculture, Conservation, and Trade Act of 1990 is 
amended by inserting after section 2505 (Public Law 101-624; 104 Stat. 
4068) the following:

``SEC. 2505A. PRECLEARANCE QUARANTINE INSPECTIONS.

    ``(a) In General.--Subject to subsection (b), the Secretary of 
Agriculture, acting through the Administrator of the Animal and Plant 
Health Inspection Service, shall conduct, at all direct departure and 
interline airports in the State of Hawaii, preclearance quarantine 
inspections of persons, baggage, cargo, and any other articles destined 
for movement from the State of Hawaii to--
            ``(1) the continental United States;
            ``(2) Guam;
            ``(3) Puerto Rico; or
            ``(4) the Virgin Islands of the United States.
    ``(b) Limitation.--Subsection (a) shall not be implemented 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 a 
fiscal year 2002 appropriation Act other than the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2002 (Public Law 107-76).''.

SEC. 1064. 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 ``54 months''.

SEC. 1065. 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 $3,500,000 for fiscal year 2002, $3,500,000 for each 
of fiscal years 2003 and 2004, and $3,000,000 for fiscal year 2005 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. 1066. 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, of whom--
                            (i) 4 shall be appointed by the Majority 
                        Leader of the Senate;
                            (ii) 3 shall be appointed by the Minority 
                        Leader of the Senate;
                            (iii) 4 shall be appointed by the Speaker 
                        of the House of Representatives;
                            (iv) 3 shall be appointed by the Minority 
                        Leader of the House of Representatives; and
                            (v) 1 shall--
                                    (I) be appointed jointly by the 
                                Speaker of the House of Representatives 
                                and the Majority Leader of the Senate; 
                                and
                                    (II) serve as chairperson.
                    (B) Eligibility.--Members of the Commission--
                            (i) shall be knowledgeable or have 
                        expertise or training in matters under the 
                        jurisdiction of the Commission;
                            (ii) shall represent, at a minimum--
                                    (I) consumer groups;
                                    (II) food processors, producers, 
                                and retailers;
                                    (III) public health professionals;
                                    (IV) food inspectors;
                                    (V) former or current food safety 
                                regulators;
                                    (VI) members of academia; or
                                    (VII) any other interested 
                                individuals; and
                            (iii) shall not be Federal employees.
                    (C) 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.
                    (D) Consultation.--The Speaker of the House of 
                Representatives, the Minority Leader of the House of 
                Representatives, the Majority Leader of the Senate, and 
                the Minority Leader of the Senate shall consult among 
                themselves prior to appointing the members of the 
                Commission under subparagraph (A) to achieve, to the 
                maximum extent practicable--
                            (i) consensus on the appointments; and
                            (ii) fair and equitable representation of 
                        various points of view with respect to matters 
                        reviewed by the Commission.
                    (E) 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 later of--
                            (i) the date of appointment of the final 
                        member of the Commission; or
                            (ii) the date on which funds authorized to 
                        be appropriated under subsection (f)(1) are 
                        made available.
                    (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.
                    (C) Consensus.--
                            (i) In general.--To the maximum extent 
                        practicable, the Commission shall carry out the 
                        duties of the Commission by reaching consensus.
                            (ii) Voting.--
                                    (I) In general.--If the Commission 
                                is unable to achieve consensus with 
                                respect to a particular decision, the 
                                Commission shall vote on the decision.
                                    (II) Authority.--Each member of the 
                                Commission shall have 1 vote, which 
                                vote shall be accorded the same weight 
                                as a vote of each other voting member.
    (b) Duties.--
            (1) Recommendations.--
                    (A) In general.--The Commission shall make specific 
                recommendations that build on and implement, to the 
                maximum extent practicable, the recommendations 
                contained in the report of the National Academy of 
                Sciences entitled ``Ensuring Safe Food from Production 
                to Consumption'' and that shall serve as the basis for 
                draft legislative language to--
                            (i) improve the food safety system;
                            (ii) improve public health;
                            (iii) create a harmonized, central 
                        framework for managing Federal food safety 
                        programs (including outbreak management, 
                        standard-setting, inspection, monitoring, 
                        surveillance, risk assessment, enforcement, 
                        research, and education);
                            (iv) enhance the effectiveness of Federal 
                        food safety resources; and
                            (v) eliminate, to the maximum extent 
                        practicable, gaps, conflicts, duplication, and 
                        failures in the food safety system.
                    (B) Components.--Recommendations made by the 
                Commission under subparagraph (A) shall, at a minimum, 
                address--
                            (i) all food available commercially in the 
                        United States, including meat, poultry, eggs, 
                        seafood, and produce;
                            (ii) the application of all resources based 
                        on risk, including resources for inspection, 
                        research, enforcement, and education;
                            (iii) shortfalls, redundancy, and 
                        inconsistency in laws (including regulations); 
                        and
                            (iv) the use of science-based methods, 
                        performance standards, and preventative control 
                        systems to ensure the safety of the food supply 
                        of the United States.
            (2) 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 comprehensive report that includes--
                    (A) the findings, conclusions, and recommendations 
                of the Commission;
                    (B) a summary of any reports submitted to the 
                Commission under subsection (e) by--
                            (i) the Advisory Commission on 
                        Intergovernmental Relations; and
                            (ii) the National Academy of Sciences;
                    (C) a summary of any other material used by the 
                Commission in the preparation of the report under this 
                paragraph; and
                    (D) 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 or, at the direction of the 
        Commission, any subcommittee or member of 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, receive such evidence, and administer such oaths, as 
        the Commission or such subcommittee or member considers 
        advisable.
            (2) Witness allowances and fees.--
                    (A) In general.--Section 1821 of title 28, United 
                States Code, shall apply to a witness requested to 
                appear at a hearing of the Commission.
                    (B) Expenses.--The per diem and mileage allowances 
                for a witness shall be paid from funds available to pay 
                the expenses of the Commission.
            (3) Information from federal agencies.--
                    (A) In general.--The Commission may secure 
                directly, from any Federal Department or agency, such 
                information as the Commission considers necessary to 
                carry out the duties of the Commission under subsection 
                (b).
                    (B) Provision of information.--
                            (i) In general.--Subject to subparagraph 
                        (C), on the request of the Commission, the head 
                        of a department or agency described in 
                        subparagraph (A) shall furnish information 
                        requested by the Commission to the Commission.
                            (ii) Administration.--The furnishing of 
                        information by a department or agency to the 
                        Commission shall not be considered a waiver of 
                        any exemption available to the department or 
                        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 subsection (e) 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--
                                    (I) to an employee of the 
                                Commission described in clause (i), for 
                                the purpose of receiving, reviewing, or 
                                processing the information;
                                    (II) in compliance with a court 
                                order; or
                                    (III) in any case in which the 
                                information is publicly released by the 
                                Commission in an aggregate or summary 
                                form that does not directly or 
                                indirectly disclose--
                                            (aa) the identity of any 
                                        person or business entity; or
                                            (bb) any information the 
                                        release of which is prohibited 
                                        under section 1905 of title 18, 
                                        United States Code.
    (d) Commission Personnel Matters.--
            (1) Compensation of members.--A member of the Commission 
        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) 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.
            (3) Staff.--
                    (A) In general.--The Chairperson of the Commission 
                may, without regard to the civil service laws 
                (including regulations), appoint and terminate 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 V 
                        of the Executive Schedule under section 5316 of 
                        title 5, United States Code.
            (4) Detail of federal government employees.--
                    (A) In general.--Notwithstanding any other 
                provision of law (including an Act of appropriation), 
                an employee of the Federal Government may be detailed 
                to the Commission, without reimbursement, for such 
                period of time as the Commission may require.
                    (B) Civil service status.--The detail of the 
                employee shall be without interruption or loss of civil 
                service status or privilege.
            (5) 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 V of the Executive Schedule under section 
        5316 of that title.
    (e) Contracts for Research.--
            (1) Advisory commission on intergovernmental relations.--
                    (A) In general.--In carrying out the duties of the 
                Commission under subsection (b), the Commission may 
                enter into contracts with the Advisory Commission on 
                Intergovernmental Relations under which the Advisory 
                Commission on Intergovernmental Relations shall conduct 
                a thorough review of, and shall catalogue, all 
                applicable Federal, State, local, and tribal laws, 
                regulations, and ordinances that pertain to food safety 
                in the United States.
                    (B) Report.--A contract under subparagraph (A) 
                shall require that, not later than 240 days after the 
                date on which the Commission first meets, the Advisory 
                Commission on Intergovernmental Relations shall submit 
                to the Commission a report that describes the results 
                of the services rendered by the Advisory Commission on 
                Intergovernmental Relations under the contract.
            (2) National academy of sciences.--
                    (A) In general.--In carrying out the duties of the 
                Commission under subsection (b), the Commission may 
                enter in contracts with the National Academy of 
                Sciences to obtain research or other assistance.
                    (B) Report.--A contract under subparagraph (A) 
                shall require that, not later than 240 days after the 
                date on which the Commission first meets, the National 
                Academy of Sciences shall submit to the Commission a 
                report that describes the results of the services to be 
                rendered by the National Academy of Sciences under the 
                contract.
            (3) Other organizations.--Nothing in this subsection limits 
        or otherwise affects the ability of the Commission to enter 
        into a contract with an entity or organization that is not 
        described in paragraph (1) or (2) to obtain assistance in 
        conducting research necessary to carry out the duties of the 
        Commission under subsection (b).
    (f) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $3,000,000.
            (2) Limitation.--No payment may be made under subsection 
        (d) or (e) except to the extent provided for in advance in an 
        appropriations Act.
    (g) 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).

SEC. 1067. HUMANE METHODS OF ANIMAL SLAUGHTER.

    It is the sense of Congress that--
            (1) the Secretary of Agriculture should--
                    (A) resume tracking the number of violations of 
                Public Law 85-765 (7 U.S.C. 1901 et seq.) and report 
                the results and relevant trends annually to Congress; 
                and
                    (B) fully enforce Public Law 85-765 by ensuring 
                that humane methods in the slaughter of livestock--
                            (i) prevent needless suffering;
                            (ii) result in safer and better working 
                        conditions for persons engaged in the 
                        slaughtering of livestock;
                            (iii) bring about improvement of products 
                        and economies in slaughtering operations; and
                            (iv) 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; 
                        and
            (2) it should be 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.

SEC. 1068. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.

    Section 424 of the Plant Protection Act (7 U.S.C. 7734) is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Criminal Penalties.--
            ``(1) In general.--A person that knowingly violates this 
        title shall be subject to criminal penalties in accordance with 
        this subsection.
            ``(2) Major violations.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), a person that commits a violation of this title 
                described in this subparagraph shall be guilty of a 
                felony and, on conviction, shall be imprisoned not more 
                than 5 years, fined not more than $25,000, or both, in 
                the case of a violation of this title involving--
                            ``(i) plant pests;
                            ``(ii) more than 50 pounds of plants;
                            ``(iii) more than 5 pounds of plant 
                        products;
                            ``(iv) more than 50 pounds of noxious 
                        weeds;
                            ``(v) possession with intent to distribute 
                        or sell items described in clause (i), (ii), 
                        (iii), or (iv), knowing the items have been 
                        involved in a violation of this title; or
                            ``(vi) forging, counterfeiting, or without 
                        authority from the Secretary, using, altering, 
                        defacing, or destroying a certificate, permit, 
                        or other document provided under this title.
                    ``(B) Multiple violations.--On the second and any 
                subsequent conviction of a person of a violation of 
                this title described in subparagraph (A), the person 
                shall be imprisoned not more than 10 years or fined not 
                more than $50,000, or both.
                    ``(C) Intent to harm agriculture of united 
                states.--In the case of a knowing movement in violation 
                of this title by a person of a plant, plant product, 
                biological control organism, plant pest, noxious weed, 
                article, or means of conveyance into, out of, or within 
                the United States, with the intent to harm the 
                agriculture of the United States by introduction into 
                the United States or dissemination of a plant pest or 
                noxious weed within the United States, the person shall 
                be imprisoned not less than 10 nor more than 20 years, 
                fined not more than $500,000, or both.
            ``(3) Other violations.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                person shall be imprisoned not more than 1 year, fined 
                not more than $1,000, or both, in the case of a 
                violation of this title involving--
                            ``(i) 50 pounds or less of plants;
                            ``(ii) 5 pounds or less of plant products; 
                        or
                            ``(iii) 50 pounds or less of noxious weeds.
                    ``(B) Multiple violations.--On the second and any 
                subsequent conviction of a person that commits a 
                violation of this title described in this subparagraph 
                shall be guilty of a misdemeanor and, on conviction, of 
                a violation of this title described in subparagraph 
                (A), the person shall be imprisoned not more than 3 
                years, fined not more than $10,000, or both.'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (e), (f), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Criminal Forfeiture.--
            ``(1) In general.--In imposing a sentence on a person 
        convicted of a violation of this title, in addition to any 
        other penalty imposed under this section and irrespective of 
        any provision of State law, a court shall order that the person 
        forfeit to the United States--
                    ``(A) any of the property of the person used to 
                commit or to facilitate the commission of the violation 
                (other than a misdemeanor); and
                    ``(B) any property, real or personal, constituting, 
                derived from, or traceable to any proceeds that the 
                person obtained directly or indirectly as a result of 
                the violation.
            ``(2) Procedures.--All property subject to forfeiture under 
        this subsection, any seizure and disposition of the property, 
        and any proceeding relating to the forfeiture shall be subject 
        to the procedures of section 413 of the Comprehensive Drug 
        Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), other 
        than subsections (d) and (q).
            ``(3) Proceeds.--The proceeds from the sale of any 
        forfeited property, and any funds forfeited, under this 
        subsection shall be used--
                    ``(A) first, to reimburse the Department of 
                Justice, the United States Postal Service, and the 
                Department of the Treasury for any costs incurred by 
                the Departments and the Service to initiate and 
                complete the forfeiture proceeding;
                    ``(B) second, to reimburse the Office of Inspector 
                General of the Department of Agriculture for any costs 
                incurred by the Office in the law enforcement effort 
                resulting in the forfeiture;
                    ``(C) third, to reimburse any Federal or State law 
                enforcement agency for any costs incurred in the law 
                enforcement effort resulting in the forfeiture; and
                    ``(D) fourth, by the Secretary to carry out the 
                functions of the Secretary under this title.''; and
            (4) by inserting after subsection (c) (as redesignated by 
        paragraph (2)) the following:
    ``(c) Civil Forfeiture.--
            ``(1) In general.--There shall be subject to forfeiture to 
        the United States any property, real or personal--
                    ``(A) used to commit or used knowingly to 
                facilitate the commission of a violation (other than a 
                misdemeanor) described in subsection (a); or
                    ``(B) constituting, derived from, or traceable to 
                proceeds of a violation described in subsection (a).
            ``(2) Procedures.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                procedures of chapter 46 of title 18, United States 
                Code, relating to civil forfeitures shall apply to a 
                seizure or forfeiture under this subsection, to the 
                extent that the procedures are applicable and 
                consistent with this subsection.
                    ``(B) Performance of duties.--Duties imposed on the 
                Secretary of the Treasury under chapter 46 of title 18, 
                United States Code, shall be performed with respect to 
                seizures and forfeitures under this subsection by 
                officers, employees, agents, and other persons 
                designated by the Secretary of Agriculture.'.

SEC. 1069. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.

    (a) Effective Period.--Section 3(2) of Public Law 98-138 (Public 
Law 98-138; 97 Stat. 870) is amended by striking ``twenty'' and 
inserting ``40''.
    (b) Authorization of Appropriations.--Public Law 98-138 (97 Stat. 
866) is amended by adding at the end the following:

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to the Secretary of the 
Interior to carry out the activities of the Connecticut River Atlantic 
Salmon Commission $9,000,000 for each of fiscal years 2002 through 
2010.''.

SEC. 1070. BEAR PROTECTION.

    (a) Short Title.--This section may be cited as the ``Bear 
Protection Act of 2002''.
    (b) Findings.--Congress finds that--
            (1) all 8 extant species of bear--Asian black bear, brown 
        bear, polar bear, American black bear, spectacled bear, giant 
        panda, sun bear, and sloth bear--are listed on Appendix I or II 
        of the Convention on International Trade in Endangered Species 
        of Wild Fauna and Flora (27 UST 1087; TIAS 8249);
            (2)(A) Article XIV of CITES provides that Parties to CITES 
        may adopt stricter domestic measures regarding the conditions 
        for trade, taking, possession, or transport of species listed 
        on Appendix I or II; and
            (B) the Parties to CITES adopted a resolution in 1997 
        (Conf. 10.8) urging the Parties to take immediate action to 
        demonstrably reduce the illegal trade in bear parts;
            (3)(A) thousands of bears in Asia are cruelly confined in 
        small cages to be milked for their bile; and
            (B) the wild Asian bear population has declined 
        significantly in recent years as a result of habitat loss and 
        poaching due to a strong demand for bear viscera used in 
        traditional medicines and cosmetics;
            (4) Federal and State undercover operations have revealed 
        that American bears have been poached for their viscera;
            (5) while most American black bear populations are 
        generally stable or increasing, commercial trade could 
        stimulate poaching and threaten certain populations if the 
        demand for bear viscera increases; and
            (6) prohibitions against the importation into the United 
        States and exportation from the United States, as well as 
        prohibitions against the interstate trade, of bear viscera and 
        products containing, or labeled or advertised as containing, 
        bear viscera will assist in ensuring that the United States 
        does not contribute to the decline of any bear population as a 
        result of the commercial trade in bear viscera.
    (c) Purpose.--The purpose of this section is to ensure the long-
term viability of the world's 8 bear species by--
            (1) prohibiting interstate and international trade in bear 
        viscera and products containing, or labeled or advertised as 
        containing, bear viscera;
            (2) encouraging bilateral and multilateral efforts to 
        eliminate such trade; and
            (3) ensuring that adequate Federal legislation exists with 
        respect to domestic trade in bear viscera and products 
        containing, or labeled or advertised as containing, bear 
        viscera.
    (d) Definitions.--In this section:
            (1) Bear viscera.--The term ``bear viscera'' means the body 
        fluids or internal organs, including the gallbladder and its 
        contents but not including the blood or brains, of a species of 
        bear.
            (2) CITES.--The term ``CITES'' means the Convention on 
        International Trade in Endangered Species of Wild Fauna and 
        Flora (27 UST 1087; TIAS 8249).
            (3) Import.--The term ``import'' means to land on, bring 
        into, or introduce into any place subject to the jurisdiction 
        of the United States, regardless of whether the landing, 
        bringing, or introduction constitutes an importation within the 
        meaning of the customs laws of the United States.
            (4) Person.--The term ``person'' means--
                    (A) an individual, corporation, partnership, trust, 
                association, or other private entity;
                    (B) an officer, employee, agent, department, or 
                instrumentality of--
                            (i) the Federal Government;
                            (ii) any State or political subdivision of 
                        a State; or
                            (iii) any foreign government; and
                    (C) any other entity subject to the jurisdiction of 
                the United States.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (6) State.--The term ``State'' means a State, the District 
        of Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, the Commonwealth of the Northern Mariana 
        Islands, American Samoa, and any other territory, commonwealth, 
        or possession of the United States.
            (7) Transport.--The term ``transport'' means to move, 
        convey, carry, or ship by any means, or to deliver or receive 
        for the purpose of movement, conveyance, carriage, or shipment.
    (e) Prohibited Acts.--
            (1) In general.--Except as provided in paragraph (2), a 
        person shall not--
                    (A) import into, or export from, the United States 
                bear viscera or any product, item, or substance 
                containing, or labeled or advertised as containing, 
                bear viscera; or
                    (B) sell or barter, offer to sell or barter, 
                purchase, possess, transport, deliver, or receive, in 
                interstate or foreign commerce, bear viscera or any 
                product, item, or substance containing, or labeled or 
                advertised as containing, bear viscera.
            (2) Exception for wildlife law enforcement purposes.--A 
        person described in subsection (d)(4)(B) may import into, or 
        export from, the United States, or transport between States, 
        bear viscera or any product, item, or substance containing, or 
        labeled or advertised as containing, bear viscera if the 
        importation, exportation, or transportation--
                    (A) is solely for the purpose of enforcing laws 
                relating to the protection of wildlife; and
                    (B) is authorized by a valid permit issued under 
                Appendix I or II of CITES, in any case in which such a 
                permit is required under CITES.
    (f) Penalties and Enforcement.--
            (1) Criminal penalties.--A person that knowingly violates 
        subsection (e) shall be fined under title 18, United States 
        Code, imprisoned not more than 1 year, or both.
            (2) Civil penalties.--
                    (A) Amount.--A person that knowingly violates 
                subsection (e) may be assessed a civil penalty by the 
                Secretary of not more than $25,000 for each violation.
                    (B) Manner of assessment and collection.--A civil 
                penalty under this paragraph shall be assessed, and may 
                be collected, in the manner in which a civil penalty 
                under the Endangered Species Act of 1973 may be 
                assessed and collected under section 11(a) of that Act 
                (16 U.S.C. 1540(a)).
            (3) Seizure and forfeiture.--Any bear viscera or any 
        product, item, or substance imported, exported, sold, bartered, 
        attempted to be imported, exported, sold, or bartered, offered 
        for sale or barter, purchased, possessed, transported, 
        delivered, or received in violation of this subsection 
        (including any regulation issued under this subsection) shall 
        be seized and forfeited to the United States.
            (4) Regulations.--After consultation with the Secretary of 
        the Treasury and the United States Trade Representative, the 
        Secretary shall issue such regulations as are necessary to 
        carry out this subsection.
            (5) Enforcement.--The Secretary, the Secretary of the 
        Treasury, and the Secretary of the department in which the 
        Coast Guard is operating shall enforce this subsection in the 
        manner in which the Secretaries carry out enforcement 
        activities under section 11(e) of the Endangered Species Act of 
        1973 (16 U.S.C. 1540(e)).
            (6) Use of penalty amounts.--Amounts received as penalties, 
        fines, or forfeiture of property under this subsection shall be 
        used in accordance with section 6(d) of the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3375(d)).
    (g) Discussions Concerning Bear Conservation and the Bear Parts 
Trade.--In order to seek to establish coordinated efforts with other 
countries to protect bears, the Secretary shall continue discussions 
concerning trade in bear viscera with--
            (1) the appropriate representatives of Parties to CITES; 
        and
            (2) the appropriate representatives of countries that are 
        not parties to CITES and that are determined by the Secretary 
        and the United States Trade Representative to be the leading 
        importers, exporters, or consumers of bear viscera.
    (h) Certain Rights Not Affected.--Except as provided in subsection 
(e), nothing in this section affects--
            (1) the regulation by any State of the bear population of 
        the State; or
            (2) any hunting of bears that is lawful under applicable 
        State law (including regulations).

SEC. 1071. REENACTMENT OF FAMILY FARMER BANKRUPTCY PROVISIONS.

    (a) Reenactment.--Notwithstanding any other provision of law, 
chapter 12 of title 11, United States Code, is hereby reenacted.
    (b) Conforming Repeal.--Section 302(f) of Public Law 99-554 (100 
Stat. 3124) is repealed.
    (c) Effective Date.--This section shall be deemed to have taken 
effect on October 1, 2001.

SEC. 1072. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING 
              LIVESTOCK.

    (a) In General.--Section 202 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 192(f)) (as amended by section 1043(a)), is amended by 
striking subsection (f) and inserting the following:
    ``(f) Own or feed livestock directly, through a subsidiary, or 
through an arrangement that gives the packer operational, managerial, 
or supervisory control over the livestock, or over the farming 
operation that produces the livestock, to such an extent that the 
producer is no longer materially participating in the management of the 
operation with respect to the production of the livestock, except that 
this subsection shall not apply to--
            ``(1) an arrangement entered into within 14 days before 
        slaughter of the livestock by a packer, a person acting through 
        the packer, or a person that directly or indirectly controls, 
        or is controlled by or under common control with, the packer;
            ``(2) a cooperative or entity owned by a cooperative, if a 
        majority of the ownership interest in the cooperative is held 
        by active cooperative members that--
                    ``(A) own, feed, or control livestock; and
                    ``(B) provide the livestock to the cooperative for 
                slaughter; or
            ``(3) a packer that is owned or controlled by producers of 
        a type of livestock, if during a calendar year the packer 
        slaughters less than 2 percent of the head of that type of 
        livestock slaughtered in the United States; or''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by subsection (a) take effect on the date of enactment of 
        this Act.
            (2) Transition rules.--In the case of a packer that on the 
        date of enactment of this Act owns, feeds, or controls 
        livestock intended for slaughter in violation of section 202(f) 
        of the Packers and Stockyards Act, 1921 (as amended by 
        subsection (a)), the amendments made by subsection (a) apply to 
        the packer--
                    (A) in the case of a packer of swine, beginning on 
                the date that is 18 months after the date of enactment 
                of this Act; and
                    (B) in the case of a packer of any other type of 
                livestock, beginning as soon as practicable, but not 
                later than 180 days, after the date of enactment of 
                this Act, as determined by the Secretary of 
                Agriculture.

SEC. 1073. EQUITY AND FAIRNESS FOR THE PROMOTION OF IMPORTED HASS 
              AVOCADOS.

    Section 1205 of the Hass Avocado Promotion, Research, and 
Information Act (contained in H.R. 5426 of the One Hundred Sixth 
Congress, as introduced on October 6, 2000 and as enacted by Public Law 
106-387) is amended--
            (1) in subsection (b)(2) after subparagraph (B) insert--
                    ``(C) Future allocation.--After 5 years, the United 
                States Department of Agriculture has discretion to 
                revisit the issue of seat allocation on the board.''.
            (2) in subsection (h)(1)(C)(iii) by striking everything in 
        the first sentence following ``shall'' and inserting in lieu 
        thereof ``be paid not less than 30 days after the avocado 
        clears customs, unless deemed not feasible as determined by the 
        Commissioner of Customs in consultation with the Secretary of 
        Agriculture.''.

SEC. 1074. SENSE OF THE SENATE REGARDING SOCIAL SECURITY SURPLUS FUNDS.

    (a) Findings.--
            (1) Since both political parties have pledged not to misuse 
        social security surplus funds by spending them for other 
        purposes.
            (2) Since under the Administration's fiscal year 2003 
        budget, the Federal Government is projected to spend the social 
        security surplus for other purposes in each of the next 10 
        years.
            (3) Since permanent extension of the inheritance tax repeal 
        would cost, according to the Administration's estimate, 
        approximately $104,000,000,000 over the next 10 years, all of 
        which would further reduce the social security surplus.
    (b) Sense of the Senate.--Therefore it is the sense of the Senate 
that no social security surplus funds should be used to pay to make 
currently scheduled tax cuts permanent or for wasteful spending.

SEC. 1075. SENSE OF THE SENATE ON PERMANENT REPEAL OF ESTATE TAXES.

    (a) Findings.--
            (1) The Economic Growth and Tax Relief Reconciliation Act 
        of 2001 provided substantial relief from Federal estate and 
        gift taxes beginning this year and repealed the Federal estate 
        tax for one year beginning on January 1, 2010.
            (2) The Economic Growth and Tax Relief Reconciliation Act 
        of 2001 contains a ``sunset'' provision that reinstates the 
        Federal estate tax at its 2001 level beginning on January 1, 
        2011.
    (b) Sense of the Senate.--Therefore, it is the sense of the Senate 
that the repeal of the estate tax should be made permanent by 
eliminating the sunset provision's applicability to the estate tax.

SEC. 1076. COMMERCIAL FISHERIES FAILURE.

    (a) In General.--In addition to amounts appropriated or otherwise 
made available by this Act, there are appropriated to the Department of 
Agriculture $10,000,000 for fiscal year 2002, which shall be 
transferred to the Commodity Credit Corporation to provide, in 
consultation with the Secretary of Commerce, 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 under 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 Interim Final Rule.--The program shall be 
carried out in accordance with the Interim Final Rule under part 648 of 
title 50, Code of Federal Regulations, or any corresponding regulation 
or rule promulgated thereunder.
    (d) Sunset.--The authority provided by subsection (a) shall 
terminate 1 year after the date of enactment of this Act and no amount 
may be made available under this section thereafter.

SEC. 1077. REVIEW OF STATE MEAT INSPECTION PROGRAMS.

    (a) Findings.--Congress finds that--
            (1) the goal of a safe and wholesome supply of meat and 
        meat food products throughout the United States would be better 
        served if a consistent set of requirements, established by the 
        Federal Government, were applied to all meat and meat food 
        products, whether produced under State inspection or Federal 
        inspection;
            (2) under such a system, Federal and State meat inspection 
        programs would function together to create a seamless 
        inspection system to ensure food safety and inspire consumer 
        confidence in the food supply in interstate commerce; and
            (3) such a system would ensure the viability of State meat 
        inspection programs, which should help to foster the viability 
        of small establishments.
    (b) Review.--Not later than September 30, 2003, the Secretary of 
Agriculture shall conduct a comprehensive review of each State meat and 
poultry inspection program, which shall include--
            (1) an analysis of the effectiveness of the State program; 
        and
            (2) identification of changes that are necessary to enable 
        the possible future transformation of the State program to a 
        State meat and poultry inspection program that includes the 
        mandatory antemortem and postmortem inspection, reinspection, 
        sanitation, and related requirements of the Federal Meat 
        Inspection Act (21 U.S.C. 601 et seq.) and the Poultry Products 
        Inspection Act (21 U.S.C. 451 et seq.) (including the 
        regulations, directives, notices, policy memoranda, and other 
        regulatory requirements of those Acts).
    (c) Comment.--In carrying out subsection (a), the Secretary shall, 
to the maximum extent practicable, obtain comment from interested 
parties.
    (d) Funding.--There are authorized to be appropriated such sums as 
are necessary to carry out this section.

SEC. 1078. AGRICULTURAL RESEARCH AND TECHNOLOGY.

    (a) Scientific Studies.--
            (1) In general.--The Secretary of Agriculture shall 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 the scientific studies.
    (b) Research and Extension Grant Program.--The Secretary shall 
establish a program to provide research and extension grants to 
eligible entities (as determined by the Secretary) to develop, for 
livestock production--
            (1) prevention and control methodologies for infectious 
        animal diseases that affect trade; and
            (2) laboratory tests to expedite detection of--
                    (A) infected livestock; and
                    (B) the presence of diseases within herds or flocks 
                of livestock.
    (c) Vaccines.--
            (1) Vaccine storage study.--The Secretary shall--
                    (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 
        shall take such actions as are necessary to obtain the required 
        additional doses of the vaccine.
    (d) Veterinary Training.--The Secretary shall 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.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2002 through 2006.

SEC. 1079. OFFICE OF SCIENCE TECHNOLOGY POLICY.

    (a) In General.--The President may--
            (1) establish within the Office of Science and Technology 
        Policy a noncareer, senior executive service appointment 
        position for a Veterinary Advisor; and
            (2) appoint an individual to the position.
    (b) Qualifications; Duties.--The individual appointed to the 
position described in subsection (a) shall--
            (1) hold the degree of Doctor of Veterinary Medicine from 
        an accredited or approved college of veterinary medicine; and
            (2) provide to the science advisor of the President 
        expertise in--
                    (A) exotic and endemic animal disease detection, 
                prevention, and control;
                    (B) food safety; and
                    (C) animal agriculture.
    (c) Executive Schedule Pay Rates.--Section 5313 of title 5, United 
States Code, is amended by adding at the end the following:
            ``Veterinary Advisor, Office of Science and Technology 
        Policy.''.

SEC. 1079A. 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''), in consultation with the Secretary of 
the Interior, 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) natural resource management programs;
            (2) incentive programs; and
            (3) farm income support programs.
    (b) Administration.--The Secretary shall carry out programs 
described in subsection (a) in a manner that, to the maximum extent 
practicable, is consistent with the American Indian Agricultural 
Resource Management Act (25 U.S.C. 3701 et seq.).
    (c) Fact-Finding Team.--The Secretary shall establish a fact-
finding team to obtain input from local officials and program 
recipients to assist in carrying out this section.
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes actions taken to carry out this section, including a plan to 
implement the actions.

SEC. 1079B. ASSISTANCE FOR GEOGRAPHICALLY DISADVANTAGED FARMERS AND 
              RANCHERS.

    (a) Definitions.--In this section:
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (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 
                        geographically disadvantaged farmers and 
                        ranchers;
                            (ii) has provided to the Secretary 
                        documentary evidence of work with 
                        geographically disadvantaged farmers and 
                        ranchers during the 2-year period preceding the 
                        submission of an application for assistance 
                        under this section; and
                            (iii) has not engaged in activities 
                        prohibited under section 501(c)(3) of the 
                        Internal Revenue Code of 1986;
                    (B)(i) a land-grant college or university that is 
                located in 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 701(a)) or in a State other than 1 
                of the 48 contiguous States; and
                    (ii) 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 agricultural education or other 
                agriculture-related services to geographically 
                disadvantaged farmers and ranchers in a region; and
                    (C) an Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)) or national tribal organization that 
                has demonstrated experience in providing agriculture 
                education or other agriculturally related services to 
                geographically disadvantaged farmers and ranchers in a 
                region.
            (3) Geographically disadvantaged farmer or rancher.--The 
        term ``geographically disadvantaged farmer or rancher'' means a 
        farmer or rancher in 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 701(a)) or in a State, other than one of the 48 
        contiguous States.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Program.--The Secretary shall carry out an assistance program 
to encourage and assist geographically disadvantaged farmers and 
ranchers--
            (1) in owning and operating farms and ranches; and
            (2) in participating equitably in the full range of 
        agricultural programs offered by the Department.
    (c) Requirements.--The assistance program under subsection (b) 
shall--
            (1) enhance coordination of technical assistance and 
        education efforts authorized under various agricultural 
        programs; and
            (2) include information on, and assistance with--
                    (A) commodity, conservation, credit, rural, and 
                business development programs;
                    (B) application and bidding procedures;
                    (C) farm and risk management;
                    (D) marketing; and
                    (E) other activities essential to participation in 
                agricultural and other programs of the Department.
    (d) Grants and Contracts.--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 section.
    (e) Report.--Not later than 1 year after funds are made available 
to carry out this section, the Secretary shall submit to Congress a 
report that identifies barriers to efficient and competitive 
transportation of inputs and products by geographically disadvantaged 
farmers and ranchers.
    (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 2006.

SEC. 1079C. SENSE OF SENATE REGARDING USE OF THE NAME GINSENG.

    It is the sense of the Senate that the Commissioner of Food and 
Drugs should promulgate regulations to ensure that, for the purposes of 
section 403 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
343), the name ``ginseng'' or any name that includes the word 
``ginseng'' shall be used in reference only to an herb or herbal 
ingredient that--
            (1) is a part of a plant of 1 of the species of the genus 
        Panax; and
            (2) is produced in compliance with United States law 
        regarding the use of pesticides.

SEC. 1079D. 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 
                that produces (as of the date of enactment of this 
                subsection) the highest quantity of specialty crops for 
                which adjusted gross revenue insurance under this title 
                is not available.
                    ``(B) Selection criteria.--In carrying out 
                subparagraph (A), the Corporation shall include in the 
                pilot program counties that (as determined by the 
                Corporation) produce a significant quantity of 
                specialty crops.''.

SEC. 1079E. PASTEURIZATION.

    For the purposes of any provision of Federal law under which a food 
or food product is required to undergo a treatment of pasteurization, 
the term ``pasteurization'' means any safe treatment that--
            (1) is a treatment prescribed as pasteurization applicable 
        to the food or food product under any Federal law (including a 
        regulation); or
            (2) has been demonstrated to the satisfaction of the 
        Secretary of Health and Human Services to achieve a level of 
        reduction in the food or food product of the microorganisms of 
        public health concern that--
                    (A) is at least as protective of the public health 
                as a treatment described in paragraph (1); and
                    (B) is effective for a period that is at least as 
                long as the shelf life of the food or food product when 
                stored under normal, moderate, and severe abuse 
                conditions.

                    Subtitle E--Studies and Reports

SEC. 1081. REPORT ON POUCHED AND CANNED SALMON.

    (a) In General.--Not later than 120 days after the date of 
enactment of this Act, the Secretary of Agriculture (referred to in 
this section as the ``Secretary'') 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, that 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. 1082. SETTLEMENT AGREEMENT REPORT.

    Not later than December 31, 2002, and annually thereafter through 
2006, the Comptroller General of the United States 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. 1083. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.

    (a) Findings.--Congress finds that--
            (1) in 2000, the Committee on Genetically Modified Pest-
        Protected Plants of the Board on Agriculture and Natural 
        Resources of the National Research Council made several 
        recommendations concerning food safety, ecological research, 
        and monitoring needs for transgenic crops with plant 
        incorporated protectants; and
            (2) the Committee recommended enhancements to certain 
        operational aspects of the regulatory framework for 
        agricultural biotechnology, such as--
                    (A) improving coordination and enhanced consistency 
                of review across all regulatory agencies; and
                    (B) clarifying the scope of the regulatory 
                jurisdiction of the Animal and Plant Health Inspection 
                Service.
    (b) Sense of Congress.--It is the sense of Congress that, not later 
than 90 days after the date of enactment of this Act, the Secretary of 
Agriculture should--
            (1) review the recommendations described in subsection (a); 
        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 of Agriculture, including agencies that develop or 
        implement programs or objectives relating to marketing, 
        regulation, food safety, research, education, or economics.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $10,000,000 for fiscal year 2002; and
            (2) such sums as are necessary for each subsequent fiscal 
        year.

SEC. 1084. STUDY OF CREATION OF LITTER BANK BY UNIVERSITY OF ARKANSAS.

    (a) In General.--The Secretary of Agriculture shall conduct a study 
to evaluate the creation of a litter bank by the Department of 
Agriculture at the University of Arkansas for the purpose of enhancing 
health and viability of watersheds in areas with large concentrations 
of animal producing units.
    (b) Components.--In conducting the study, 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.--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 that describes the 
results of the study.

SEC. 1085. 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 primarily the result of 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.
    (c) Report.--Not later than 150 days after the date of enactment of 
this Act, the Secretary shall submit report 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.

SEC. 1086. REPORT ON SALE AND USE OF PESTICIDES FOR AGRICULTURAL USES.

    Not later than 120 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. 1087. REPORT ON RATS, MICE, AND BIRDS.

    (a) In General.--Not later than 1 year after date 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 
implications of including rats, mice, and birds within the definition 
of animal under the Animal Welfare Act (7 U.S.C. 2131 et seq.).
    (b) Requirements.--The report under subsection (a) shall--
            (1) be completed by the Comptroller General of the United 
        States;
            (2) contain a description of the number and types of 
        entities that currently use rats, mice, and birds, and are not 
        subjected to regulations of the Department of Agriculture;
            (3) contain estimates of the numbers of rats, mice, and 
        birds currently used in research facilities that are not 
        currently regulated by the United States Department of 
        Agriculture;
            (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 levels of protection to rats, mice, and birds 
        as is provided for species currently regulated by the 
        Department of Agriculture, detailing the costs associated with 
        individual regulatory requirements;
            (5) 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 after a 
        rule extending the definition to include rats, mice, and birds 
        goes into effect; and
            (6) contain recommendations for ensuring that the 
        regulatory burden is no greater than that already applied to 
        rodent species under the Animal Welfare Act (7 U.S.C. 2131 et 
        seq.).

SEC. 1088. TASK FORCE ON NATIONAL INSTITUTES FOR PLANT AND AGRICULTURAL 
              SCIENCES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Agriculture shall establish a task force 
to evaluate the merits of establishing 1 or more National Institutes 
for Plant and Agricultural Sciences.
    (b) Membership.--
            (1) In general.--The Task Force shall consist of at least 8 
        members, appointed by the Secretary, that--
                    (A) have a broad-based background in food, 
                nutrition, biotechnology, crop production methods, 
                environmental science, or related disciplines; and
                    (B) are familiar with the infrastructure used to 
                conduct Federal and private research, including--
                            (i) the National Institutes of Health;
                            (ii) the National Science Foundation;
                            (iii) the National Aeronautics and Space 
                        Administration;
                            (iv) the Department of Energy laboratory 
                        system;
                            (v) the Agricultural Research Service; and
                            (vi) the Cooperative State Research 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, including institutions 
        of higher education.
            (3) Plant and agricultural sciences research.--Of the 
        members appointed under paragraph (1), the Secretary shall 
        appoint at least 2 members that have an extensive background 
        and preeminence in the field of plant 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 in depth 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) evaluate and compare--
                    (A) publicly funded agricultural and plant sciences 
                research activities, including competitively awarded 
                research; and
                    (B) privately funded agricultural and plant 
                sciences research activities;
            (2) evaluate and compare--
                    (A) competitive publicly funded agricultural 
                research activities; and
                    (B) other forms of publicly funded research, such 
                as medical research;
        including an assessment of the methods of evaluation, 
        administration, and funding;
            (3) evaluate the need for competitive public plant and 
        agricultural sciences research necessary--
                    (A) to increase crop yields and productivity;
                    (B) to improve environmental quality;
                    (C) to enhance the value of farm output to 
                agricultural producers and consumers;
                    (D) to promote health and improve nutrition;
                    (E) to enhance food safety; and
                    (F) to increase effective agricultural production 
                to meet the future needs of the growing population of 
                the world, especially in developing countries;
            (4) evaluate the merits of establishing 1 or more National 
        Institutes for Plant and Agricultural Sciences, that is similar 
        to the National Institute of Health--
                    (A) to coordinate competitive, innovative research 
                and technological development and innovation;
                    (B) to ensure the necessary supply of scientific 
                personnel in order to ensure the competitiveness of the 
                United States in an increasingly global trade market 
                for agricultural products; and
                    (C) to facilitate the integration of scientific 
                advances from medical sciences, engineering, and 
                information technologies into plant and agricultural 
                sciences; and
            (5) if establishment of 1 or more National Institutes for 
        Plant and Agricultural Sciences is recommended, provide further 
        recommendations to the Secretary, including recommendations 
        on--
                    (A) the structure for establishing the Institutes;
                    (B) the location of the Institutes in 1 or more 
                multistate regions with preeminence in plant, 
                agricultural, and related biological sciences 
                (including in existing Federal plant and animal 
                research facilities and land grant institutions), in 
                order--
                            (i) to use all relevant fields of 
                        knowledge; and
                            (ii) to promote collaborative and 
                        interdisciplinary research; and
                    (C) the amount of funding necessary to establish 
                the Institutes.
    (d) Report.--Not later than July 1, 2003, 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 a report that describes the results of the evaluation 
conducted under this section, including recommendations described in 
subsection (c)(5).

                 Subtitle F--Organic Products Promotion

SEC. 1091. SHORT TITLE.

    This subtitle may be cited as the ``Organic Products Promotion, 
Research, and Information Act of 2002''.

SEC. 1092. DEFINITIONS.

    In this subtitle:
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' means--
                    (A) agricultural, horticultural, viticultural, and 
                dairy products;
                    (B) livestock and the products of livestock;
                    (C) the products of poultry and bee raising;
                    (D) the products of forestry or commercial 
                fisheries;
                    (E) other commodities raised or produced on farms, 
                as determined appropriate by the Secretary; and
                    (F) products processed or manufactured from 
                products specified in the preceding subparagraphs, as 
                determined appropriate by the Secretary.
            (2) Board.--The term ``Board'' means the National Organic 
        Products Board established under section 1094(b).
            (3) Commodity promotion law.--The term ``commodity 
        promotion law'' has the meaning given the term in section 
        501(a) of the Federal Agriculture Improvement and Reform Act of 
        1996 (7 U.S.C. 7401(a)).
            (4) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member or employee of 
        the Board has a direct or indirect financial interest in a 
        person that performs a service for, or enters into a contract 
        with, the Board for anything of economic value.
            (5) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (6) First handler.--The term ``first handler'' means--
                    (A) the first person that buys or takes possession 
                of an organic product from a producer for marketing; 
                and
                    (B) in a case in which a producer markets an 
                organic product directly to consumers, the producer.
            (7) Importer.--The term ``importer'' means any person that 
        imports an organic product from outside the United States for 
        sale in the United States as a principal or as an agent, 
        broker, or consignee of any person.
            (8) Information.--The term ``information'' means 
        information and programs that are designed to increase--
                    (A) efficiency in processing; and
                    (B) the development of new markets, marketing 
                strategies, increased marketing efficiency, and 
                activities to enhance the image of organic products on 
                a national or international basis.
            (9) Market.--The term ``market'' means to sell or to 
        otherwise dispose of an organic product in interstate, foreign, 
        or intrastate commerce.
            (10) Order.--The term ``order'' means the order issued by 
        the Secretary under section 1093 that provides for a program of 
        generic promotion, research, and information regarding organic 
        products designed to--
                    (A) strengthen the position of organic products in 
                the marketplace;
                    (B) maintain and expand existing domestic and 
                foreign markets and uses for organic products;
                    (C) develop new markets and uses for organic 
                products; or
                    (D) assist producers in meeting conservation 
                objectives.
            (11) Organically produced.--The term ``organically 
        produced'', with respect to an agricultural product, means 
        produced and handled in accordance with the Organic Foods 
        Production Act of 1990 (7 U.S.C. 6501 et seq.).
            (12) Organic product.--The term ``organic product'' means 
        an agricultural product that is organically produced.
            (13) Organic products industry.--The term ``organic 
        products industry'' includes nonprofit and other organizations 
        representing the interests of producers, first handlers, and 
        importers of organic products.
            (14) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (15) Producer.--The term ``producer'' means any person that 
        is engaged in the production and sale of an organic product in 
        the United States.
            (16) Promotion.--The term ``promotion'' means any action 
        taken by the Board under the order, including paid advertising, 
        to present a favorable image of organic products to the public 
        to improve the competitive position of organic products in the 
        marketplace and to stimulate sales of organic products.
            (17) Research.--The term ``research'' means any type of 
        test, study, or analysis designed to advance the image, 
        desirability, use, marketability, production, product 
        development, or quality of an organic product.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (19) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (20) Suspend.--The term ``suspend'' means to issue a rule 
        under section 553 of title 5, United States Code, to 
        temporarily prevent the operation of the order during a 
        particular period of time specified in the rule.
            (21) Terminate.--The term ``terminate'' means to issue a 
        rule under section 553 of title 5, United States Code, to 
        cancel permanently the operation of the order beginning on a 
        date certain specified in the rule.
            (22) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

SEC. 1093. ISSUANCE OF ORDERS.

    (a) Order.--
            (1) In general.--To effectuate the purpose of this 
        subtitle, the Secretary may issue, and amend from time to time, 
        an order applicable to--
                    (A) producers of organic products;
                    (B) the first handlers of organic products (and 
                other persons in the marketing chain, as appropriate); 
                and
                    (C) the importers of organic products.
            (2) National scope.--The order shall be national in scope.
    (b) Procedure for Issuance.--
            (1) Development or receipt of proposed order.--A proposed 
        order with respect to organic products may be--
                    (A) prepared by the Secretary at any time on or 
                after January 1, 2004; or
                    (B) submitted to the Secretary on or after January 
                1, 2004, by--
                            (i) an association of producers of organic 
                        products; or
                            (ii) any other person that may be affected 
                        by the issuance of the order with respect to 
                        organic products.
            (2) Consideration of proposed order.--If the Secretary 
        determines that a proposed order is consistent with and will 
        effectuate the purpose of this subtitle, the Secretary shall--
                    (A) publish the proposed order in the Federal 
                Register; and
                    (B) give due notice and opportunity for public 
                comment on the proposed order.
            (3) Preparation of final order.--After notice and 
        opportunity for public comment under paragraph (2) regarding a 
        proposed order, the Secretary shall--
                    (A) take into consideration the comments received 
                in preparing a final order; and
                    (B) ensure, to the maximum extent practicable, that 
                the final order is in conformity with the terms, 
                conditions, and requirements of this subtitle.
    (c) Issuance and Effective Date.--
            (1) In general.--Except as provided in paragraph (2), if 
        the Secretary determines that the order is consistent with and 
        will effectuate the purpose of this subtitle, the Secretary 
        shall issue the final order.
            (2) Exception.--Paragraph (1) shall not apply in a case in 
        which an initial referendum is conducted under section 1097(a).
            (3) Effective date.--The final order shall be issued and 
        shall take effect not later than 270 days after the date of 
        publication of the proposed order that was the basis for the 
        final order.

SEC. 1094. REQUIRED TERMS IN ORDER.

    (a) In General.--The order shall contain the terms and conditions 
specified in this section.
    (b) Board.--
            (1) Establishment.--The order shall establish a National 
        Organic Products Board to carry out a program of generic 
        promotion, research, and information relating to organic 
        products that effectuates the purposes of this subtitle.
            (2) Board membership.--
                    (A) Number of members.--
                            (i) In general.--The Board shall consist of 
                        the number of members determined by the 
                        Secretary, in consultation with the organic 
                        products industry.
                            (ii) Alternate members.--In addition to the 
                        members described in clause (i), the Secretary 
                        may appoint alternate members of the Board.
                    (B) Appointment.--
                            (i) In general.--The Secretary shall 
                        appoint members of the Board (including any 
                        alternate members) from among producers, first 
                        handlers, and importers of organic products 
                        that elect to pay the assessment described in 
                        section 1096, and others in the marketing 
                        chain, as appropriate.
                            (ii) Members of the public.--The Secretary 
                        may appoint 1 or more members of the general 
                        public to the Board.
                    (C) Nominations.--The Secretary may make 
                appointments from nominations made in accordance with 
                the method described in the order.
                    (D) Geographical and industry representation.--To 
                ensure fair and equitable representation of organic 
                producers and others covered by the order, the 
                composition of the Board shall reflect--
                            (i) the geographical distribution of the 
                        production of organic products in the United 
                        States;
                            (ii) the quantity or value of organic 
                        products covered by the order imported into the 
                        United States; and
                            (iii) the variations in the United States 
                        in the scale of organic production operations.
            (3) Reapportionment of board membership.--In accordance 
        with rules issued by the Secretary, at least once in each 4-
        year period, the Board shall--
                    (A) review the geographical distribution in the 
                United States of the production of organic products in, 
                variations in the scale of organic production 
                operations in, and quantity or value of organic 
                products imported into, the United States; and
                    (B) as necessary, recommend to the Secretary the 
                reapportionment of the Board membership to reflect 
                changes in that geographical distribution of 
                production, variations in scale of organic production 
                operations, or quantity or value imported.
            (4) Notice.--
                    (A) Vacancies.--The order shall provide for notice 
                of Board vacancies to the organic products industry.
                    (B) Meetings.--
                            (i) In general.--The Board shall provide 
                        prior notice of meetings of the Board to--
                                    (I) the Secretary, to permit the 
                                Secretary, or a designated 
                                representative of the Secretary, to 
                                attend the meetings; and
                                    (II) the public.
                            (ii) Attendance.--A meeting of the Board 
                        shall be open to the public.
            (5) Term of office.--
                    (A) In general.--The members and any alternate 
                members of the Board shall each serve for a term of 3 
                years, except that the members and any alternate 
                members initially appointed to the Board shall serve 
                for terms of not more than 2, 3, and 4 years, as 
                specified by the order.
                    (B) Limitation on consecutive terms.--A member or 
                alternate member may serve not more than 2 consecutive 
                terms.
                    (C) Continuation of term.--Notwithstanding 
                subparagraph (B), each member or alternate member shall 
                continue to serve until a successor is appointed by the 
                Secretary.
                    (D) Vacancies.--A vacancy arising before the 
                expiration of a term of office of an incumbent member 
                or alternate of the Board shall be filled in a manner 
                provided for in the order.
            (6) Compensation.--
                    (A) In general.--Members and any alternate members 
                of the Board shall serve without compensation.
                    (B) Travel expenses.--If approved by the Board, 
                members or alternate members shall be reimbursed for 
                reasonable travel expenses, which may include a per 
                diem allowance or actual subsistence incurred while 
                away from their homes or regular places of business in 
                the performance of services for the Board.
    (c) Powers and Duties of Board.--The order shall specify the powers 
and duties of the Board established under the order, including the 
power and duty--
            (1) to administer, and collect assessments under, the order 
        in accordance with the terms and conditions of the order;
            (2) to develop and recommend to the Secretary for 
        approval--
                    (A) such bylaws as are necessary for the 
                functioning of the Board;
                    (B) such rules as are necessary to administer the 
                order; and
                    (C) such activities as are authorized to be carried 
                out under the order;
            (3) to meet, organize, and select from among the members of 
        the Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines to be appropriate;
            (4) to employ persons, other than the members, as the Board 
        considers necessary to assist the Board in carrying out the 
        duties of the Board (and to determine the compensation and 
        specify the duties of those persons);
            (5) subject to subsection (e), to develop and carry out 
        generic promotion, research, and information activities 
        relating to organic products;
            (6) to prepare and submit for the approval of the 
        Secretary, before the beginning of each fiscal year--
                    (A) rates of assessment under section 1096; and
                    (B) an annual budget of the anticipated expenses to 
                be incurred in the administration of the order, 
                including the probable cost of each promotion, 
                research, and information activity proposed to be 
                developed or carried out by the Board;
            (7) to borrow funds necessary for the startup expenses of 
        the order;
            (8) subject to subsection (f), to enter into contracts or 
        agreements to develop and carry out generic promotion, 
        research, and information activities relating to organic 
        products;
            (9) to pay the cost of the activities with--
                    (A) assessments collected under section 1096;
                    (B) earnings from invested assessments; and
                    (C) other funds;
            (10)(A) to keep records that accurately reflect the actions 
        and transactions of the Board;
            (B) to keep and report minutes of each meeting of the Board 
        to the Secretary; and
            (C) to furnish the Secretary with any information or 
        records the Secretary requests;
            (11) to receive, investigate, and report to the Secretary 
        complaints of violations of the order; and
            (12) after providing public notice and an opportunity to 
        comment, to recommend to the Secretary such amendments to the 
        order as the Board considers appropriate.
    (d) Prohibited Activities.--The Board may not engage in, and shall 
prohibit the employees and agents of the Board from engaging in--
            (1) any action that would be a conflict of interest;
            (2) using funds collected by the Board under the order, any 
        action carried out for the purpose of influencing any 
        legislation or governmental action or policy (other than 
        recommending to the Secretary amendments to the order); and
            (3) any advertising (including promotion, research, and 
        information activities authorized to be carried out under the 
        order) that may be false or misleading or disparaging to 
        another agricultural commodity.
    (e) Activities and Budgets.--
            (1) Activities.--The order shall require the Board 
        established under the order to submit to the Secretary for 
        approval plans and projects for promotion, research, or 
        information relating to organic products.
            (2) Budgets.--
                    (A) Submission to secretary.--
                            (i) In general.--The order shall require 
                        the Board established under the order to submit 
                        to the Secretary for approval a budget of the 
                        anticipated annual expenses and disbursements 
                        of the Board to be paid to administer the 
                        order.
                            (ii) Submission.--The budget shall be 
                        submitted--
                                    (I) before the beginning of a 
                                fiscal year; and
                                    (II) as frequently as is necessary 
                                after the beginning of the fiscal year.
                    (B) Reimbursement of secretary.--The order shall 
                require that the Secretary be reimbursed for all 
                expenses incurred by the Secretary in the 
                implementation, administration, and supervision of the 
                order.
            (3) Incurring expenses.--The Board may incur the expenses 
        described in paragraph (2) and other expenses for the 
        administration, maintenance, and functioning of the Board as 
        authorized by the Secretary.
            (4) Payment of expenses.--
                    (A) In general.--Expenses incurred under paragraph 
                (3) shall be paid by the Board using--
                            (i) assessments collected under section 
                        1096;
                            (ii) earnings obtained from assessments; 
                        and
                            (iii) other income of the Board.
                    (B) Borrowed funds.--Any funds borrowed by the 
                Board shall be expended only for startup costs and 
                capital outlays.
            (5) Limitation on spending.--For fiscal years beginning 3 
        or more years after the date of the establishment of the Board, 
        the Board may not expend for administration (except for 
        reimbursements to the Secretary required under paragraph 
        (2)(B)), maintenance, and functioning of the Board in a fiscal 
        year an amount that exceeds 15 percent of the assessment and 
        other income received by the Board for the fiscal year.
    (f) Contracts and Agreements.--
            (1) In general.--The order shall provide that, with the 
        approval of the Secretary, the Board established under the 
        order may--
                    (A) enter into contracts and agreements to carry 
                out generic promotion, research, and information 
                activities relating to organic products, including 
                contracts and agreements with producer associations or 
                other entities as considered appropriate by the 
                Secretary; and
                    (B) pay the cost of approved generic promotion, 
                research, and information activities using--
                            (i) assessments collected under section 
                        1096;
                            (ii) earnings obtained from assessments; 
                        and
                            (iii) other income of the Board.
            (2) Requirements.--Each contract or agreement shall provide 
        that any person that enters into the contract or agreement with 
        the Board shall--
                    (A) develop and submit to the Board a proposed 
                activity together with a budget that specifies the cost 
                to be incurred to carry out the activity;
                    (B) keep accurate records of all of transactions of 
                the person relating to the contract or agreement;
                    (C) account for funds received and expended in 
                connection with the contract or agreement;
                    (D) make periodic reports to the Board of 
                activities conducted under the contract or agreement; 
                and
                    (E) make such other reports as the Board or the 
                Secretary considers relevant.
    (g) Records of Board.--
            (1) In general.--The order shall require the Board--
                    (A)(i) to maintain such records as the Secretary 
                may require; and
                    (ii) to make the records available to the Secretary 
                for inspection and audit;
                    (B) to collect and submit to the Secretary, at any 
                time the Secretary may specify, any information the 
                Secretary may request;
                    (C) to account for the receipt and disbursement of 
                all funds in the possession, or under the control, of 
                the Board; and
                    (D) to make public to the participants in the order 
                the minutes of Board meetings and actions of the Board.
            (2) Audits.--The order shall require the Board to have--
                    (A) its records audited by an independent auditor 
                at the end of each fiscal year; and
                    (B) a report of the audit submitted directly to the 
                Secretary.
    (h) Periodic Evaluation.--
            (1) In general.--In accordance with section 501(c) of the 
        Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7401(c)), the order shall require the Board to provide 
        for the independent evaluation of all generic promotion, 
        research, and information activities carried out under the 
        order.
            (2) Results.--The results of an evaluation described in 
        paragraph (1), with any confidential business information 
        expunged, shall be made available for public review by 
        producers, first handlers, importers, and other participants in 
        the order.
            (3) Conforming amendment.--Section 501(a) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
        7401(a)) is amended--
                    (A) in paragraph (17), by striking ``or'' at the 
                end;
                    (B) in paragraph (18), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(19) section 1094(h) of the Organic Products Promotion, 
        Research, and Information Act of 2002.''.
    (i) Books and Records of Persons Covered by Order.--
            (1) In general.--The order shall require that producers, 
        first handlers and other persons in the marketing chain, as 
        appropriate, and importers covered by the order shall--
                    (A) maintain records sufficient to ensure 
                compliance with the order and regulations;
                    (B) submit to the Board any information required by 
                the Board to carry out the responsibilities of the 
                Board under the order; and
                    (C) make the records described in subparagraph (A) 
                available, during normal business hours, for inspection 
                by employees or agents of the Board or the Department, 
                including any records necessary to verify information 
                required under subparagraph (B).
            (2) Time requirement.--Any record required to be maintained 
        under paragraph (1) shall be maintained for such time period as 
        the Secretary may prescribe.
            (3) Other information.--The Secretary may use, and may 
        authorize the Board to use under this subtitle, information 
        regarding persons subject to the order that is collected by the 
        Department under any other law.
            (4) Confidentiality of information.--
                    (A) In general.--Except as otherwise provided in 
                this subtitle, all information obtained under paragraph 
                (1) or as part of a referendum under section 1097 shall 
                be kept confidential by all officers, employees, and 
                agents of the Department and of the Board.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed only if--
                            (i) the Secretary considers the information 
                        relevant; and
                            (ii) the information is revealed in a 
                        judicial proceeding or administrative hearing--
                                    (I) brought at the direction or on 
                                the request of the Secretary; or
                                    (II) to which the Secretary or any 
                                officer of the Department is a party.
                    (C) Other exceptions.--This paragraph shall not 
                prohibit--
                            (i) the issuance of general statements 
                        based on reports or on information relating to 
                        a number of persons subject to the order if the 
                        statements do not identify the information 
                        furnished by any person; or
                            (ii) the publication, by direction of the 
                        Secretary, of--
                                    (I) the name of any person 
                                violating any order; and
                                    (II) a statement of the particular 
                                provisions of the order violated by the 
                                person.
                    (D) Penalty.--Any person that willfully violates 
                this subsection shall be subject, on conviction, to a 
                fine of not more than $1,000 or to imprisonment for not 
                more than 1 year, or both.
            (5) Withholding information.--This subsection shall not 
        authorize the withholding of information from Congress.

SEC. 1095. PERMISSIVE TERMS IN ORDER.

    (a) Exemptions.--The order may contain--
            (1) authority for the Secretary to exempt from the order 
        any de minimis quantity of organic products otherwise covered 
        by the order; and
            (2) authority for the Board to require satisfactory 
        safeguards against improper use of the exemption.
    (b) Different Payment and Reporting Schedules.--The order may 
contain authority for the Board to designate different payment and 
reporting schedules to recognize differences in organic product 
industry marketing practices and procedures used in different 
production and importing areas.
    (c) Activities.--
            (1) In general.--The order may contain authority to develop 
        and carry out research, promotion, and information activities 
        designed to expand, improve, or make more efficient the 
        marketing or use of organic products in domestic and foreign 
        markets.
            (2) Applicable authority.--Section 1094(e) shall apply with 
        respect to activities authorized under this subsection.
    (d) Reserve Funds.--The order may contain authority to reserve 
funds from assessments collected under section 1096 to permit an 
effective and continuous coordinated program of research, promotion, 
and information in years in which the yield from assessments may be 
reduced, except that the amount of funds reserved may not exceed the 
greatest aggregate amount of the anticipated disbursements specified in 
budgets approved under section 1094(e) by the Secretary for any 2 
fiscal years.
    (e) Generic Activities.--The order may contain authority to provide 
credits of assessments in accordance with section 1096(d) for those 
individuals that contribute to other similar generic research, 
promotion, and information programs at the State, regional, or local 
level.
    (f) Other Authority.--The order may contain authority to take any 
other action that--
            (1) is not inconsistent with the purpose of this subtitle, 
        any term or condition specified in section 1094, or any rule 
        issued to carry out this subtitle; and
            (2) is necessary to administer the order.

SEC. 1096. ASSESSMENTS.

    (a) In General.--A producer, first handler, or importer of an 
organic product may elect to pay an assessment under the order.
    (b) Payment.--If a first handler or importer of an organic product 
elects to pay an assessment, the assessment shall be, as appropriate--
            (1) paid by first handlers with respect to the organic 
        product produced and marketed in the United States; and
            (2) paid by importers with respect to the organic product 
        imported into the United States, if the imported organic 
        product is covered by the order under section 1095(f).
    (c) Collection.--Any assessment collected under the order shall be 
remitted to the Board at the time and in the manner prescribed by the 
order.
    (d) Limitation on Assessments.--Not more than 1 assessment may be 
collected on a first handler or importer under subsection (a) with 
respect to any organic product.
    (e) Investment of Assessments.--Pending disbursement of assessments 
under a budget approved by the Secretary, the Board may invest 
assessments collected under this section in--
            (1) obligations of the United States or any agency of the 
        United States;
            (2) general obligations of any State or any political 
        subdivision of a State;
            (3) interest-bearing accounts or certificates of deposit of 
        financial institutions that are members of the Federal Reserve 
        System; or
            (4) obligations fully guaranteed as to principal and 
        interest by the United States.
    (f) Credits.--Notwithstanding any other provision of law or any 
order issued under any commodity promotion law, the Secretary shall 
permit a producer, first handler, or importer of an organic product 
that pays an assessment to the Board to receive a credit for the 
assessment against any assessment that would otherwise be paid by the 
producer, first handler, or importer under an order issued under 
another commodity promotion law.

SEC. 1097. REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--For the purpose of ascertaining whether 
        the persons to be covered by the order favor the order going 
        into effect, the Secretary shall conduct an initial referendum 
        among persons that, during a representative period determined 
        by the Secretary, engaged in--
                    (A) the production or handling of organic products; 
                or
                    (B) the importation of organic products.
            (2) Procedure.--The results of the referendum shall be 
        determined in accordance with subsection (e).
    (b) Subsequent Referendum.--Not later than 3 years after the date 
on which assessments were first carried out under the order, and at 
least once every 4 years thereafter, for the purpose of ascertaining 
whether the persons covered by the order favor the continuation, 
suspension, or termination of the order, the Secretary shall conduct a 
referendum among persons that, during a representative period 
determined by the Secretary, have engaged in--
            (1) the production or handling of organic products; or
            (2) the importation of organic products.
    (c) Additional Referenda.--For the purpose of ascertaining whether 
persons covered by the order favor the continuation, suspension, or 
termination of the order, the Secretary shall conduct additional 
referenda--
            (1) at the request of the Board; or
            (2) at the request of 10 percent or more of the number of 
        persons eligible to vote under subsection (b).
    (d) Optional Referenda.--The Secretary may conduct a referendum at 
any time to determine whether the continuation, suspension, or 
termination of the order or a provision of the order is favored by 
persons eligible to vote under subsection (b).
    (e) Approval of Order.--The order may provide for the approval of 
the order in a referendum by a majority of persons voting in the 
referendum.
    (f) Manner of Conducting Referenda.--
            (1) In general.--A referendum conducted under this section 
        shall be conducted in the manner determined by the Secretary to 
        be appropriate.
            (2) Advance registration.--If the Secretary determines that 
        an advance registration of eligible voters in a referendum is 
        necessary before the voting period to facilitate the conduct of 
        the referendum, the Secretary may institute the advance 
        registration procedures--
                    (A) by mail;
                    (B) in person through the use of national and local 
                offices of the Department; or
                    (C) by such other means as may be prescribed by the 
                Secretary.
            (3) Voting.--Eligible voters may vote in the referendum--
                    (A) by mail ballot;
                    (B) in person; or
                    (C) by such other means as may be prescribed by the 
                Secretary.
            (4) Notice.--
                    (A) In general.--Not later than 30 days before the 
                date on which a referendum is conducted under this 
                section with respect to the order, the Secretary shall 
                notify the organic product industry, in such manner as 
                determined to be appropriate by the Secretary, of the 
                period during which voting in the referendum will 
                occur.
                    (B) Contents.--The notice shall explain any 
                registration and voting procedures established under 
                this subsection.
    (g) Results of Referenda.--The results of referenda conducted under 
this section shall be made available to the public.

SEC. 1098. PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
            (1) In general.--A person subject to the order may file 
        with the Secretary a petition--
                    (A) stating that the order, any provision of the 
                order, or any obligation imposed in connection with the 
                order, is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearing.--The Secretary shall give the petitioner an 
        opportunity for a hearing on the petition, in accordance with 
        regulations promulgated by the Secretary.
            (3) Ruling.--
                    (A) In general.--After the hearing, the Secretary 
                shall make a ruling on the petition.
                    (B) Finality.--The ruling shall be final, subject 
                to review in accordance with subsection (b).
            (4) Limitation on petition.--Any petition filed under this 
        subsection challenging the order, any provision of the order, 
        or any obligation imposed in connection with the order, shall 
        be filed not later than 2 years after the effective date of the 
        order, provision, or obligation subject to challenge in the 
        petition.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States for any district in which a person that is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review the final ruling on the 
        petition of the person, if a complaint for that purpose is 
        filed not later than 20 days after the date of the entry of the 
        final ruling by the Secretary under subsection (a)(3).
            (2) Process.--Service of process in a proceeding may be 
        made on the Secretary by delivering a copy of the complaint to 
        the Secretary.
            (3) Remands.--If the court determines that the ruling is 
        not in accordance with law, the court shall remand the matter 
        to the Secretary with directions--
                    (A) to make such ruling as the court determines to 
                be in accordance with law; or
                    (B) to take such further action as, in the opinion 
                of the court, the law requires.
    (c) Effect on Enforcement Proceedings.--The pendency of a petition 
filed under subsection (a) or an action commenced under subsection (b) 
shall not operate as a stay of any action authorized by section 1098A 
to be taken to enforce this subtitle, including any rule, order, or 
penalty in effect under this subtitle.

SEC. 1098A. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States shall 
have jurisdiction specifically to enforce, and to prevent and restrain 
a person from violating, the order issued, or any regulation 
promulgated, under this subtitle.
    (b) Referral to Attorney General.--A civil action authorized to be 
brought under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary shall not be required 
to refer to the Attorney General a violation of this subtitle if the 
Secretary believes that the administration and enforcement of this 
subtitle would be adequately served by--
            (1) providing a suitable written notice or warning to the 
        person that committed the violation; or
            (2) conducting an administrative action under this section.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--A person that willfully violates the 
        order or regulation promulgated by the Secretary under this 
        subtitle may be assessed by the Secretary a civil penalty of 
        not less than $1,000 and not more than $10,000 for each 
        violation.
            (2) Separate offense.--Each violation and each day during 
        which there is a failure to comply with the order, or with any 
        regulation promulgated by the Secretary, shall be considered to 
        be a separate offense.
            (3) Cease-and-desist orders.--In addition to, or in lieu 
        of, a civil penalty, the Secretary issue an order requiring a 
        person to cease and desist from violating--
                    (A) the order; or
                    (B) any regulation promulgated under this subtitle.
            (4) Notice and hearing.--No order assessing a penalty or 
        cease-and-desist order may be issued by the Secretary under 
        this subsection unless the Secretary provides notice and an 
        opportunity for a hearing on the record with respect to the 
        violation.
            (5) Finality.--An order assessing a penalty, or a cease-
        and-desist order issued under this subsection by the Secretary, 
        shall be final and conclusive unless the person against whom 
        the order is issued files an appeal from the order with the 
        United States court of appeals, as provided in subsection (d).
    (d) Review by Court of Appeals.--
            (1) In general.--A person against whom an order is issued 
        under subsection (c) may obtain review of the order by--
                    (A) filing, not later than 30 days after the person 
                receives notice of the order, a notice of appeal in--
                            (i) the United States court of appeals for 
                        the circuit in which the person resides or 
                        carries on business; or
                            (ii) the United States Court of Appeals for 
                        the District of Columbia Circuit; and
                    (B) simultaneously sending a copy of the notice of 
                appeal by certified mail to the Secretary.
            (2) Record.--The Secretary shall file with the court a 
        certified copy of the record on which the Secretary has 
        determined that the person has committed a violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence on the record.
    (e) Failure To Obey Cease-And-Desist Orders.--
            (1) In general.--A person that fails to obey a valid cease-
        and-desist order issued by the Secretary under this section, 
        after an opportunity for a hearing, shall be subject to a civil 
        penalty assessed by the Secretary of not less than $1,000 and 
        not more than $10,000 for each offense.
            (2) Separate violations.--Each day during which the failure 
        continues shall be considered to be a separate violation of the 
        cease-and-desist order.
    (f) Failure To Pay Penalties.--
            (1) In general.--If a person fails to pay a civil penalty 
        imposed under this section by the Secretary, the Secretary 
        shall refer the matter to the Attorney General for recovery of 
        the amount assessed in the district court of the United States 
        for any district in which the person resides or carries on 
        business.
            (2) Reviewability.--In the action, the validity and 
        appropriateness of the order imposing the civil penalty shall 
        not be subject to review.
    (g) Additional Remedies.--The remedies provided in this section 
shall be in addition to, and not exclusive of, other remedies that may 
be available.

SEC. 1098B. INVESTIGATIONS AND POWER TO SUBPOENA.

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

SEC. 1098C. SUSPENSION OR TERMINATION.

    (a) Mandatory Suspension or Termination.--The Secretary shall 
suspend or terminate an order or a provision of an order if the 
Secretary determines that--
            (1) an order or a provision of an order obstructs or does 
        not tend to effectuate the purpose of this subtitle; or
            (2) an order or a provision of an order is not favored by 
        persons voting in a referendum conducted under section 1097.
    (b) Implementation of Suspension or Termination.--If, as a result 
of a referendum conducted under section 1097, the Secretary determines 
that an order is not approved, the Secretary shall--
            (1) not later than 180 days after making the determination, 
        suspend or terminate, as the case may be, collection of 
        assessments under the order; and
            (2) as soon as practicable, suspend or terminate, as the 
        case may be, activities under the order in an orderly manner.

SEC. 1098D. AMENDMENTS TO ORDERS.

    The provisions of this subtitle applicable to an order shall be 
applicable to any amendment to an order, except that section 1097 shall 
not apply to an amendment.

SEC. 1098E. EFFECT ON OTHER LAWS.

    Except as otherwise expressly provided in this subtitle, this 
subtitle shall not affect or preempt any other Federal or State law 
authorizing promotion or research relating to an organic product.

SEC. 1098F. REGULATIONS.

    The Secretary may promulgate such regulations as are necessary to 
carry out this subtitle and the power vested in the Secretary under 
this subtitle.

SEC. 1098G. AUTHORIZATION OF APPROPRIATIONS.

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

                       Subtitle G--Administration

SEC. 1099. REGULATIONS.

    (a) In General.--The Secretary of Agriculture may promulgate such 
regulations as are necessary to implement this Act and the amendments 
made by this Act.
    (b) Procedure.--The promulgation of the regulations and 
administration of title I and sections 459 and 508 and the amendments 
made by title I and sections 459 and 508 shall be made without regard 
to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
subsection (b), the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

SEC. 1099A. EFFECT OF AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided in this 
Act and notwithstanding any other provision of law, this Act and the 
amendments made by this Act shall not affect the authority of the 
Secretary of Agriculture to carry out an agricultural market 
transition, price support, or production adjustment program for any of 
the 1996 through 2001 crop, fiscal, or calendar years under a provision 
of law in effect immediately before the date of enactment of this Act.
    (b) Liability.--A provision of this Act or an amendment made by 
this Act shall not affect the liability of any person under any 
provision of law as in effect immediately before the date of enactment 
of this Act.

SEC. 1099B. COMMODITY CREDIT CORPORATION FUNDING.

    Except for funds made available through a user fee or funds made 
available in an appropriation act, notwithstanding any other provision 
of this Act or an amendment made by this Act, any funds that are made 
available through the transfer of funds from the Secretary of the 
Treasury to the Secretary of Agriculture expressly under this Act or an 
amendment made by this Act shall be made available through funds of the 
Commodity Credit Corporation.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                               H. R. 2646

_______________________________________________________________________

                               AMENDMENT

_______________________________________________________________________

                           February 14, 2002

                    Ordered to be printed as passed