[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1571 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1571

To provide for the continuation of agricultural programs through fiscal 
                               year 2006.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 18, 2001

   Mr. Lugar introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To provide for the continuation of agricultural programs through fiscal 
                               year 2006.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm and Ranch 
Equity Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Short title.
Sec. 102. Purposes.
                 Subtitle A--Farm Financial Protection

Sec. 111. Definitions.
Sec. 112. Risk management contract.
Sec. 113. Whole farm revenue insurance.
Sec. 114. Risk management stabilization accounts.
Sec. 115. Risk management options available in marketplace.
Sec. 116. Conforming amendments.
              Subtitle B--Phase Out of Commodity Programs

Sec. 121. Prohibition on agricultural price support and production 
                            adjustment.
Sec. 122. Agricultural Market Transition Act.
Sec. 123. Agricultural Adjustment Act of 1938.
Sec. 124. Commodity Credit Corporation Charter Act.
Sec. 125. Agricultural Act of 1949.
Sec. 126. Agricultural Adjustment Act.
Sec. 127. Agricultural Act of 1970.
Sec. 128. General commodity provisions.
Sec. 129. Specific commodity provisions.
Sec. 130. Effect of amendments.
Sec. 131. Crop.
                         TITLE II--CONSERVATION

             Subtitle A--Working Land Conservation Programs

Sec. 201. Environmental quality incentives program.
Sec. 202. Conservation reserve program.
Sec. 203. Wetlands reserve program.
Sec. 204. Farmland and grassland protection program.
Sec. 205. Wildlife Habitat Incentive Program.
            Subtitle B--Miscellaneous Reforms and Extensions

Sec. 211. Privacy of personal information relating to natural resources 
                            conservation programs.
Sec. 212. Reform and consolidation of conservation programs.
Sec. 213. Certification of private providers of technical assistance.
Sec. 214. National environmental benefits index.
Sec. 215. Extension of conservation authorities.
Sec. 216. Technical amendments.
Sec. 217. Effect of amendments.
                            TITLE III--TRADE

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

Sec. 301. Levels of assistance.
Sec. 302. Food Aid Consultative Group.
Sec. 303. Assistance for stockpiling and rapid transportation, 
                            delivery, and distribution of shelf-stable 
                            prepackaged foods.
Sec. 304. Prepositioning.
Sec. 305. Expiration date.
Sec. 306. Micronutrient fortification pilot program.
Sec. 307. Farmer-to-farmer program.
Sec. 308. Bill Emerson Humanitarian Trust.
               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.
Sec. 326. Exporter assistance initiative.
        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Emerging markets.
Sec. 332. Sense of the Senate concerning unilateral sanctions.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Dairy export incentive program.
                      TITLE IV--NUTRITION PROGRAMS

Sec. 401. Short title.
                     Subtitle A--Food Stamp Program

Sec. 411. Categorical eligibility for recipients of cash assistance.
Sec. 412. Disregarding of infrequent and unanticipated income.
Sec. 413. Simplified treatment of individuals complying with child 
                            support orders.
Sec. 414. Coordinated and simplified definition of income.
Sec. 415. Exclusion of interest and dividend income.
Sec. 416. Alignment of standard deduction with poverty line.
Sec. 417. Simplified dependent care deduction.
Sec. 418. Alternative procedures to assist elderly and disabled 
                            persons.
Sec. 419. Simplified determination of housing costs.
Sec. 420. Simplified determination of utility costs.
Sec. 421. Simplified determination of earned income.
Sec. 422. Simplified determination of deductions.
Sec. 423. Simplified resource eligibility limit.
Sec. 424. Exclusion of licensed vehicles from financial resources.
Sec. 425. Exclusion of retirement accounts from financial resources.
Sec. 426. Coordinated and simplified definition of resources.
Sec. 427. Alternative issuance systems in disasters.
Sec. 428. Simplified reporting systems.
Sec. 429. Simplified time limit.
Sec. 430. Preservation of access to electronic benefits.
Sec. 431. Cost-neutrality for electronic benefit transfer systems.
Sec. 432. Simplified procedures for residents of certain group 
                            facilities.
Sec. 433. Simplified determinations of continuing eligibility.
Sec. 434. Simplified application procedures for the elderly and 
                            disabled.
Sec. 435. Transitional food stamps for families moving from welfare.
Sec. 436. Quality control.
Sec. 437. Improvement of calculation of State performance measures.
Sec. 438. Bonuses for States that demonstrate high performance.
Sec. 439. Simplified funding rules for employment and training 
                            programs.
Sec. 440. Reauthorization of food stamp program.
Sec. 441. Expanded grant authority.
Sec. 442. Exemption of waivers from cost-neutrality requirement.
Sec. 443. Program simplification demonstration projects.
Sec. 444. Consolidated block grants.
Sec. 445. Expanded availability of commodities.
                  Subtitle B--Miscellaneous Provisions

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Work requirement for legal immigrants.
Sec. 453. Qualified aliens.
Sec. 454. Congressional Hunger Fellows Program.
Sec. 455. 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. Loans for tribal farm operations.
Sec. 513. Refinancing of other debt.
                 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. 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. Effect of amendments.
Sec. 554. Effective date.
                      TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Rural America Empowerment and Development

Sec. 601. Full funding of pending rural development loan and grant 
                            applications.
Sec. 602. Broadband access for rural America.
Sec. 603. Value-added agricultural product market development grants.
Sec. 604. National Rural Development Information Clearinghouse.
Sec. 605. White House Conference on Rural America.
Sec. 606. Bioenergy and biochemical projects.
           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. Rural development assistance organizations.
Sec. 625. Emergency community water assistance grant program.
Sec. 626. Water and waste facility grants for Native American tribes.
Sec. 627. Water systems for rural and native villages in Alaska.
Sec. 628. Rural cooperative development grants.
Sec. 629. Value-added intermediary relending program.
Sec. 630. Use of rural development loans and grants for other purposes.
Sec. 631. Simplified application forms for loan guarantees.
Sec. 632. Grants for emergency weather radio transmitters.
Sec. 633. Programs for rural seniors.
Sec. 634. Rural community advancement program.
Sec. 635. Delta Regional Authority.
Sec. 636. SEARCH grants for small communities.
   Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 641. Alternative Agricultural Research and Commercialization 
                            Corporation.
Sec. 642. Telemedicine and distance learning services in rural areas.
         Subtitle E--Miscellaneous Rural Development Provisions

Sec. 651. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 652. Expansion of 911 access.
                       Subtitle F--Miscellaneous

Sec. 661. Senate confirmation requirement for Rural Utilities Service 
                            Administrator.
                       Subtitle G--Effective Date

Sec. 671. Effective date.
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. Policy research centers.
Sec. 705. Nutrition education program.
Sec. 706. Animal health and disease research programs.
Sec. 707. Education grants programs for Hispanic-serving institutions.
Sec. 708. Competitive grants for international agricultural science and 
                            education programs.
Sec. 709. Indirect costs.
Sec. 710. Research equipment grants.
Sec. 711. Agricultural research programs.
Sec. 712. Extension education.
Sec. 713. Special authorization for biosecurity planning and response.
Sec. 714. Availability of competitive grant funds.
Sec. 715. Joint requests for proposals.
Sec. 716. Supplemental and alternative crops.
Sec. 717. Aquaculture.
Sec. 718. Rangeland research.
   Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 731. National genetic resources program.
Sec. 732. High-priority research and extension initiatives.
Sec. 733. Nutrient management research and extension initiative.
Sec. 734. Organic agriculture research and extension initiative.
Sec. 735. Agricultural telecommunications program.
Sec. 736. 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. Office of Pest Management Policy.
                     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 centennial centers.
Sec. 762. Matching funds requirement for research and extension 
                            activities.
          Chapter 4--Land-Grant Institutions in Insular Areas

Sec. 771. Distance education grants program for insular area land-grant 
                            institutions.
Sec. 772. Matching requirements for research and extension formula 
                            funds for insular area land-grant 
                            institutions.
Sec. 773. Education grants for Pacific Islander serving institutions.
                   Chapter 5--Land-grant Institutions

Sec. 776. Priority-setting process.
                         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. Biomass research and development.
                      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 and increasing 
                            capacity for research on biosecurity and 
                            animal and plant health diseases.
Sec. 798. Rural policy research.
Sec. 798A. Priority for farmers and ranchers participating in 
                            conservation programs.
                       Subtitle G--Administration

Sec. 799. Effect of amendments.
                          TITLE VIII--FORESTRY

Sec. 801. Office of International Forestry.
Sec. 802. Renewable resources extension activities.
Sec. 803. Forestry incentives program.
Sec. 804. Sustainable forestry assistance program.
                            TITLE IX--ENERGY

Sec. 901. Carbon sequestration demonstration program.
                         TITLE X--MISCELLANEOUS

            Subtitle A--Agriculture Infrastructure Security

Sec. 1001. Agriculture Infrastructure Security Fund.
Sec. 1002. Agriculture Infrastructure Security Commission.
Subtitle B--Outreach and Assistance for Socially Disadvantaged Farmers 
                              and Ranchers

Sec. 1011. Outreach and assistance for socially disadvantaged farmers 
                            and ranchers.

                      TITLE I--COMMODITY PROGRAMS

SEC. 101. SHORT TITLE.

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

SEC. 102. PURPOSES.

    The purposes of this title are--
            (1) to encourage producers to select strategies for 
        managing risk in the farming or ranching operation of the 
        producer by providing financial assistance that can be applied 
        to the risk management strategy that the producer believes best 
        addresses the unique financial, business, and agricultural 
        conditions of the farm or ranch of the producer; and
            (2) to provide new programs that--
                    (A) allow producers to address the risk management 
                strategies that best suit the farming or ranching 
                operation of the producer; and
                    (B) do not distort commercial markets and are 
                consistent with international obligations of the United 
                States.

                 Subtitle A--Farm Financial Protection

SEC. 111. DEFINITIONS.

    In this subtitle:
            (1) Adjusted gross revenue.--The term ``adjusted gross 
        revenue'' means the adjusted gross income for all agricultural 
        enterprises of a producer in an applicable 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--
                            (i) a voucher received under section 112; 
                        and
                            (ii) 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 commodity.--The term ``agricultural 
        commodity'' means any agricultural commodity, food, feed, 
        fiber, or livestock.
            (3) 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.
            (4) Applicable year.--The term ``applicable year'' means 
        the year during which the producer elects to receive a voucher 
        under a risk management contract.
            (5) 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.
            (6) 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 $20,000 in average 
                adjusted gross revenue for each of 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 adjusted gross 
                revenue for each of the preceding 5 taxable years, has 
                at least $20,000 in estimated income from all 
                agricultural enterprises for the applicable year, as 
                determined by the Secretary.
            (7) Risk management contract.--The term ``risk management 
        contract'' means a contract entered into under section 112 
        annually for each applicable year.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 112. RISK MANAGEMENT CONTRACT.

    (a) Offer.--The Secretary shall offer to enter into a risk 
management contract annually for each of the 2003 through 2006 crops 
with each producer that is engaged in the production of an agricultural 
commodity for an applicable year.
    (b) Voucher.--
            (1) In general.--Under a risk management contract, the 
        Secretary shall pay to a producer a voucher that is equivalent 
        in value to the average adjusted gross revenue of the producer.
            (2) Payment rate.--The payment rate for a voucher each year 
        shall be equal to the total of--
                    (A) 6 percent for the amount of the average 
                adjusted gross revenue of a producer that is less than 
                $250,000;
                    (B) 4 percent for the amount of the average 
                adjusted gross revenue of a producer that is $250,000 
                or more but less than $500,000;
                    (C) 1 percent for the amount of the average 
                adjusted gross revenue of a producer that is $500,000 
                or more but less than $1,000,000; and
                    (D) 0 percent for the amount of the average 
                adjusted gross revenue of a producer that is $1,000,000 
                or more.
    (c) Eligibility.--
            (1) In general.--An individual or entity may not receive 
        directly or indirectly a voucher that is equal in value to more 
        than $30,000 in a year.
            (2) Ineligible entities.--An entity shall be ineligible to 
        receive a voucher under this section if the entity is--
                    (A) an agency of the Federal Government, a State, 
                or a political subdivision of a State;
                    (B) an entity that has shares traded on a public 
                stock exchange; or
                    (C) another entity, as determined by the Secretary.
            (3) Verification.--The Secretary shall determine which 
        individuals or entities are eligible for a voucher under this 
        section by using social security numbers or taxpayer 
        identification numbers, respectively.
    (d) Terms.--
            (1) In general.--In exchange for a voucher under a risk 
        management contract, a producer shall--
                    (A) purchase whole farm revenue insurance coverage 
                under section 525 of the Federal Crop Insurance Act (as 
                added by section 113(a)) that provides a revenue 
                guarantee of at least 80 percent of the average 
                adjusted gross revenue of the producer at a payment 
                rate of 100 percent;
                    (B) contribute an amount that is at least equal to 
                the amount of the voucher to an Account established 
                under section 114; or
                    (C) redeem the voucher for a cash payment and use 
                the payment to carry out 1 or more risk management 
                strategies for the farm under section 115 that are 
                sufficient to guarantee a net income from all 
                agricultural enterprises of the producer for the 
                applicable year that is at least 80 percent of the 
                average adjusted gross revenue of the producer.
            (2) Conservation compliance.--In addition to implementing 1 
        of the risk management strategies under paragraph (1), a 
        producer shall agree, in exchange for a voucher, to--
                    (A) 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.); and
                    (B) comply with applicable wetland conservation 
                requirements under subtitle C of title XII of that Act 
                (16 U.S.C. 3821 et seq.).
            (3) Excess voucher amounts.--
                    (A) Whole farm revenue insurance coverage.--If a 
                producer elects to use a voucher to purchase whole farm 
                revenue insurance coverage under section 525 of the 
                Federal Crop Insurance Act (as added by section 113(a)) 
                and the amount of the voucher exceeds the premium for 
                the coverage, the producer may only deposit the amount 
                of the voucher that exceeds the premium into an Account 
                in accordance with section 114.
                    (B) Risk management options.--If a producer elects 
                to use a voucher to carry out 1 or more risk management 
                strategies under section 115 and the amount of the 
                voucher exceeds the amount necessary to carry out the 
                strategies, the producer may only deposit the amount of 
                the voucher that exceeds the amount necessary to carry 
out the strategies into an Account in accordance with section 114.
            (4) Tenants and sharecroppers.--In carrying out this 
        subtitle, the Secretary shall provide adequate safeguards to 
        protect the interests of tenants and sharecroppers.
    (e) Administration.--
            (1) Application.--A producer that elects to enter into a 
        risk management contract for an applicable year shall submit an 
        application to the Secretary prior to the beginning of the 
        calendar year in which the voucher would be paid.
            (2) Payment of voucher.--The Secretary shall make available 
        to the producer the full amount of the voucher required to be 
        paid for the applicable year not earlier than October 1 of the 
        applicable year.
            (3) Internet.--The Secretary shall facilitate the contract 
        process required under this section, to the maximum extent 
        practicable, by using the Internet.
            (4) Compliance.--The Secretary shall perform random audits 
        of producers that enter into risk management contracts to 
        ensure that the producers comply with the risk management 
        contracts.
            (5) Violations.--If a producer has accepted a risk 
        management payment for an applicable year and the producer 
        fails to comply with subsection (d) with respect to the 
        applicable year, the producer--
                    (A) shall refund to the Secretary an amount equal 
                to the amount of the voucher; and
                    (B) may be determined to be ineligible to receive a 
                voucher under this subtitle for a period of not to 
                exceed 5 years, as determined by the Secretary.
    (f) Sharing of Benefits.--The Secretary shall provide for the 
sharing of benefits under this subtitle among all producers on a farm 
on a fair and equitable basis.
    (g) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this section.

SEC. 113. WHOLE FARM REVENUE INSURANCE.

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

``SEC. 525. WHOLE FARM REVENUE INSURANCE.

    ``(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, excluding revenue earned from 
        nonagricultural sources, as determined by the Secretary--
                    ``(A) by taking into account gross receipts from 
                the sale of all crops and livestock on all agricultural 
                enterprises of the producer, including insurance 
                indemnities resulting from losses in the agricultural 
                enterprises;
                    ``(B) 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
                    ``(C) as represented on--
                            ``(i) a schedule F of the Federal income 
                        tax returns; or
                            ``(ii) a comparable tax form related to the 
                        agricultural enterprises of the producer, as 
                        approved by the Secretary.
            ``(2) Agricultural commodity.--The term `agricultural 
        commodity' means any agricultural commodity, livestock (as 
        defined in section 523(b)(1)), food, feed, or fiber.
            ``(3) Agricultural enterprise.--The term `agricultural 
        enterprise' means the production and marketing of all 
        agricultural commodities (including livestock) on a farm or 
        ranch.
            ``(4) Average adjusted gross revenue.--The term `average 
        adjusted gross revenue' means--
                    ``(A) the average adjusted gross revenue of a 
                producer for 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.
    ``(b) Revenue Insurance.--If a producer elects to use a voucher in 
accordance with section 112(d)(1)(A) of the Farm and Ranch Equity Act 
of 2001, the producer may use the voucher to obtain insurance that 
provides a revenue guarantee for all agricultural enterprises of the 
producer.
    ``(c) Revenue Guarantee.--The amount of the revenue guarantee for a 
policy of revenue insurance under this section for the agricultural 
enterprises of a producer shall be equal to the product obtained by 
multiplying--
            ``(1) the coverage level; by
            ``(2) the average adjusted gross revenue of the producer.
    ``(d) Coverage Level.--The coverage level for whole farm revenue 
insurance under this section shall be 80 percent of the average 
adjusted gross revenue of a producer.
    ``(e) Purchase of Multiperil or Revenue Coverages.--A producer that 
purchases coverage under this section shall not be required to purchase 
other policies of multiperil or revenue coverage under this title.
    ``(f) Administration.--In providing a policy of whole farm revenue 
insurance to a producer under this section, the Secretary shall--
            ``(1) offer the policy through a reinsurance agreement with 
        a private insurance company;
            ``(2) ensure that the policy is actuarially sound;
            ``(3) require the producer to pay administrative fees and 
        premiums for the policy in accordance with subsections (c)(10) 
        and (d), respectively, of section 508; and
            ``(4) pay a portion of the premium for the policy in an 
        amount that does not exceed the amount authorized under section 
        508(e)(2)(F).
    ``(g) Delivery Required.--Notwithstanding any other provision of 
law, each insurance company that is reinsured under the Standard 
Reinsurance Agreement shall offer a whole farm revenue insurance policy 
described in this section.
    ``(h) Reinsurance Years.--This section shall apply to each of the 
2003 through 2006 reinsurance years.''.
    (b) Conforming Amendment.--Section 508(e)(2)(F) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)(F)) is amended by inserting 
``(including whole farm revenue insurance)'' after ``not based on 
individual yield''.

SEC. 114. RISK MANAGEMENT STABILIZATION ACCOUNTS.

    (a) Definition of Account.--In this section, the term ``Account'' 
means a Risk Management Stabilization Account that is established in 
the name of a participating producer in a bank or financial institution 
that is selected by the producer and approved by the Secretary, 
consisting of--
            (1) contributions of the producer; and
            (2) matching contributions of the Secretary.
    (b) Establishment.--If a producer elects to use a voucher in 
accordance with section 112(d)(1)(B), the producer shall establish an 
Account under which--
            (1) the producer shall provide monetary contributions to 
        the Account;
            (2) the Secretary shall provide matching contributions to 
        the Account; and
            (3) the producer may withdraw accumulated funds from the 
        Account.
    (c) Deposits.--
            (1) Producer contribution.--A producer shall deposit an 
        amount that is at least equal to the amount of the voucher 
        determined under section 112(b).
            (2) Matching contribution.--
                    (A) In general.--Subject to subparagraph (C), the 
                Secretary shall provide a matching contribution that is 
                equal to the amount deposited by the producer into the 
                Account.
                    (B) Value.--Before a voucher is deposited into an 
                Account under subparagraph (A), the voucher shall have 
                no value during the applicable year.
                    (C) Contributions exceeding voucher.--The amount of 
                any producer contributions into the Account that exceed 
                the amount of the voucher shall not be eligible for 
                matching contributions.
            (3) 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.
    (d) Maximum Account Balance.--The balance of an Account of a 
producer may not exceed 150 percent of the average adjusted gross 
revenue of the producer.
    (e) Use.--Funds credited to the Account--
            (1) shall be available for withdrawal by a producer, in 
        accordance with subsection (f); and
            (2) may be used for purposes determined by the producer.
    (f) Withdrawal.--
            (1) In general.--Subject to paragraphs (2) and (3), a 
        producer may withdraw funds from the Account if the estimated 
        net income for an applicable year from the agricultural 
        enterprises of the producer is less than the average adjusted 
        gross revenue of the producer.
            (2) Amount.--The amount of a withdrawal by a producer from 
        an Account may not exceed the difference between (as determined 
        by the Secretary)--
                    (A) the average adjusted gross revenue of the 
                producer; and
                    (B) the estimated net income for the agricultural 
                enterprises of the producer for the year for which a 
                withdrawal occurs.
            (3) 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.
    (g) Administration.--The Secretary shall administer this section 
through the Farm Service Agency and local and county offices of the 
Department of Agriculture.
    (h) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this section.

SEC. 115. RISK MANAGEMENT OPTIONS AVAILABLE IN MARKETPLACE.

    (a) Definition of Regulated Exchange.--The term ``regulated 
exchange'' means a board of trade (as defined in section 1a of the 
Commodity Exchange Act (7 U.S.C. 1a)) that is designated as a contract 
market under section 2(a)(1)(C) of that Act (7 U.S.C. 2a(a)(1)(C)).
    (b) Farm Price Protection.--If a producer elects to use a voucher 
in accordance with section 112(d)(1)(C), the producer shall redeem the 
voucher for a cash payment and use the payment to carry out 1 or more 
risk management strategies for the farm described in subsection (c) 
during the applicable year that are sufficient to guarantee a net 
income from all agricultural enterprises of the producer for the 
applicable year that is at least 80 percent of the average adjusted 
gross revenue of the producer.
    (c) Risk Management Strategies.--A producer may use a cash payment 
obtained under subsection (b) to purchase--
            (1) crop or revenue insurance available under the Federal 
        Crop Insurance Act (7 U.S.C. 1501 et seq.) (other than whole 
        farm revenue insurance under section 525 of that Act) or 
        private insurance (such as hail coverage);
            (2) a future or option on a regulated exchange, as 
        determined by the Secretary;
            (3) an agricultural trade option, purchased other than on a 
        regulated exchange, for an agricultural commodity produced by 
        the producer that is--
                    (A) an equity option (as defined in section 1256(g) 
                of the Internal Revenue Code of 1986); or
                    (B) a hedging transaction (as defined in section 
                1256(e)(2) of that Code);
            (4) a cash forward or other marketing contract;
            (5) a trust that is authorized by Federal law for eligible 
        farming businesses that may be established to accept tax 
        deductible contributions; or
            (6) other type of farm price protection that is available 
        in the private sector and approved by the Secretary.

SEC. 116. CONFORMING AMENDMENTS.

    Section 506(m) of the Federal Crop Insurance Act (7 U.S.C. 1506(m)) 
is amended--
            (1) in paragraph (1), by striking ``participation in the 
        multiple peril crop insurance program'' and inserting ``a 
        covered person to participate in the multiple peril crop 
        insurance program (including whole farm revenue insurance under 
        section 525) or entering into a risk management contract under 
        section 112 of the Farm Financial Protection Act'';
            (2) by striking ``policyholder'' each place it appears and 
        inserting ``covered person''; and
            (3) in paragraph (2), by striking ``policyholders'' and 
        inserting ``covered persons''.

              Subtitle B--Phase Out of Commodity Programs

SEC. 121. PROHIBITION ON AGRICULTURAL PRICE SUPPORT AND PRODUCTION 
              ADJUSTMENT.

    (a) In General.--Notwithstanding any other provision of law, except 
as otherwise provided in this subtitle and effective beginning with the 
2003 crop or the 2003 marketing, reinsurance, fiscal, or calendar year 
(as applicable) for each agricultural commodity, the Secretary of 
Agriculture and the Commodity Credit Corporation may not provide loans, 
purchases, payments, or other operations or take any other action to 
support the price, or adjust or control the production, of an 
agricultural commodity by using the funds, facilities, and authorities 
of the Commodity Credit Corporation or under the authority of any law.
    (b) Exceptions.--Subsection (a) shall not apply to--
            (1) any activities under the Agricultural Adjustment Act (7 
        U.S.C. 601 et seq.), reenacted with amendments by the 
        Agricultural Marketing Act of 1937;
            (2) section 32 of the Act of August 24, 1935 (7 U.S.C. 
        612c; 49 Stat. 774, chapter 641);
            (3) part I of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1311 et seq.); and
            (4) sections 106, 106A, and 106B of the Agricultural Act of 
        1949 (7 U.S.C. 1445, 1445-1, 1445-2).

SEC. 122. AGRICULTURAL MARKET TRANSITION ACT.

    (a) Repeals.--
            (1) 2003 and subsequent crops.--Effective beginning with 
        the 2003 crop, the Agricultural Market Transition Act (7 U.S.C. 
        7201 et seq.) is repealed, other than the following:
                    (A) Subtitle A (7 U.S.C. 7201 et seq.).
                    (B) Sections 131, 132, and 133 (7 U.S.C. 7231, 
                7232, 7233).
                    (C) Subsections (a) through (d) of section 134 (7 
                U.S.C. 7234).
                    (D) Section 135 (7 U.S.C. 7235).
                    (E) Sections 141 and 142 (7 U.S.C. 7251, 7252).
                    (F) Chapter 2 of subtitle D (7 U.S.C. 7271 et 
                seq.).
                    (G) Sections 161 through 165 (7 U.S.C. 7281 et 
                seq.).
                    (H) Subtitle H (7 U.S.C. 7331 et seq.).
            (2) 2003 and subsequent calendar years.--Effective January 
        1, 2003, sections 141 and 142 of the Agricultural Market 
        Transition Act (7 U.S.C. 7251, 7252) are repealed.
            (3) 2006 and subsequent crops.--Effective beginning with 
        the 2006 crop, the following provisions of the Agricultural 
        Market Transition Act (7 U.S.C. 7231 et seq.) are repealed:
                    (A) Subtitle C (7 U.S.C. 7231 et seq.).
                    (B) Chapter 2 of subtitle D (7 U.S.C. 7271 et 
                seq.), other than section 156(f) (7 U.S.C. 7272(f)).
    (b) Availability of Nonrecourse Marketing Assistance Loans.--
Section 131 of the Agricultural Market Transition Act (7 U.S.C. 7231) 
is amended --
            (1) in subsection (a) by striking ``2002'' and inserting 
        ``2005''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Eligible Production.--The producers on a farm shall be 
eligible for a marketing assistance loan under subsection (a) for any 
quantity of a loan commodity produced on the farm.''.
    (c) Loan Rates for Marketing Assistance Loans.--Section 132 of the 
Agricultural Market Transition Act (7 U.S.C. 7232) is amended to read 
as follows:

``SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

    ``(a) Wheat.--The loan rate for a marketing assistance loan under 
section 131 for wheat shall be 90 percent for the 2003 crop, 85 percent 
for the 2004 crop, and 80 percent for the 2005 crop, of the simple 
average price received by producers of wheat, as determined by the 
Secretary, during the marketing years for the immediately preceding 5 
crops of wheat, excluding the year in which the average price was the 
highest and the year in which the average price was the lowest in the 
period.
    ``(b) Feed Grains.--
            ``(1) Corn.--The loan rate for a marketing assistance loan 
        under section 131 for corn shall be 90 percent for the 2003 
        crop, 85 percent for the 2004 crop, and 80 percent for the 2005 
        crop, of the simple average price received by producers of 
        corn, as determined by the Secretary, during the marketing 
        years for the immediately preceding 5 crops of corn, excluding 
        the year in which the average price was the highest and the 
        year in which the average price was the lowest in the period.
            ``(2) Other feed grains.--The loan rate for a marketing 
        assistance loan under section 131 for grain sorghum, barley, 
        and oats, respectively, shall be established at such level as 
        the Secretary determines is fair and reasonable in relation to 
        the rate that loans are made available for corn, taking into 
        consideration the feeding value of the commodity in relation to 
        corn.
    ``(c) Upland Cotton.--The loan rate for a marketing assistance loan 
under section 131 for upland cotton shall be 90 percent for the 2003 
crop, 85 percent for the 2004 crop, and 80 percent for the 2005 crop, 
of the simple average price received by producers of upland cotton, as 
determined by the Secretary, during the marketing years for the 
immediately preceding 5 crops of upland cotton, excluding the year in 
which the average price was the highest and the year in which the 
average price was the lowest in the period.
    ``(d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 131 for extra long staple cotton shall be 
90 percent for the 2003 crop, 85 percent for the 2004 crop, and 80 
percent for the 2005 crop, of the simple average price received by 
producers of extra long staple cotton, as determined by the Secretary, 
during the marketing years for the immediately preceding 5 crops of 
extra long staple cotton, excluding the year in which the average price 
was the highest and the year in which the average price was the lowest 
in the period.
    ``(e) Rice.--The loan rate for a marketing assistance loan under 
section 131 for rice shall be 90 percent for the 2003 crop, 85 percent 
for the 2004 crop, and 80 percent for the 2005 crop, of the simple 
average price received by producers of rice, as determined by the 
Secretary, during the marketing years for the immediately preceding 5 
crops of rice, excluding the year in which the average price was the 
highest and the year in which the average price was the lowest in the 
period.
    ``(f) Oilseeds.--
            ``(1) Soybeans.--The loan rate for a marketing assistance 
        loan under section 131 for soybeans shall be 90 percent for the 
        2003 crop, 85 percent for the 2004 crop, and 80 percent for the 
        2005 crop, of the simple average price received by producers of 
        soybeans, as determined by the Secretary, during the marketing 
        years for the immediately preceding 5 crops of soybeans, 
        excluding the year in which the average price was the highest 
        and the year in which the average price was the lowest in the 
        period.
            ``(2) Sunflower seed, canola, rapeseed, safflower, mustard 
        seed, and flaxseed.--The loan rate for a marketing assistance 
        loan under section 131 for sunflower seed, canola, rapeseed, 
        safflower, mustard seed, and flaxseed, individually, shall be 
        90 percent for the 2003 crop, 85 percent for the 2004 crop, and 
        80 percent for the 2005 crop, of the simple average price 
        received by producers of sunflower seed, individually, as 
        determined by the Secretary, during the marketing years for the 
        immediately preceding 5 crops of sunflower seed, individually, 
        excluding the year in which the average price was the highest 
        and the year in which the average price was the lowest in the 
        period.
            ``(3) Other oilseeds.--The loan rates for a marketing 
        assistance loan under section 131 for other oilseeds shall be 
        established at such level as the Secretary determines is fair 
        and reasonable in relation to the loan rate available for 
        soybeans, except in no event shall the rate for the oilseeds 
        (other than cottonseed) be less than the rate established for 
        soybeans on a per-pound basis for the same crop.''.
    (d) Peanut Program.--Section 155 of the Agricultural Market 
Transition Act (7 U.S.C. 7271) is amended by striking subsections (h) 
and (i) and inserting the following:
    ``(h) Phased Reduction of Loan Rate.--For each of the 2003, 2004, 
and 2005 crops of quota and additional peanuts, the Secretary shall 
lower the loan rate for each succeeding crop in a manner that 
progressively and uniformly lowers the loan rate for quota and 
additional peanuts to $0 for the 2006 crop.
    ``(i) Crops.--This section shall be effective only for the 1996 
through 2005 crops.''.
    (e) Sugar Program.--Section 156 of the Agricultural Market 
Transition Act (7 U.S.C. 7272) is amended--
            (1) in subsection (e), by striking paragraph (1) and 
        inserting the following:
            ``(1) Loans.--The Secretary shall carry out this section 
        through the use of recourse loans.'';
            (2) in subsection (f), by striking ``2003'' each place it 
        appears and inserting ``2006'';
            (3) by redesignating subsection (i) as subsection (j);
            (4) by inserting after subsection (h) the following:
    ``(i) Phased Reduction of Loan Rate.--For each of the 2003, 2004, 
and 2005 crops of sugar beets and sugarcane, the Secretary shall lower 
the loan rate for each succeeding crop in a manner that progressively 
and uniformly lowers the loan rate for sugar beets and sugarcane to $0 
for the 2006 crop.''; and
            (5) in subsection (j) (as redesignated), by striking 
        ``2002'' and inserting ``2005''.
    (f) Conforming Amendments.--
            (1) Flood risk reduction.--Section 385 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7334) 
        is repealed.
            (2) Conservation farm option.--Section 1240M of the Food 
        Security Act of 1985 (16 U.S.C. 3839bb) is repealed.

SEC. 123. AGRICULTURAL ADJUSTMENT ACT OF 1938.

    (a) Repeals.--
            (1) 2003 and subsequent marketing years and crops.--
        Effective beginning with the 2003 marketing or crop year (as 
        applicable), the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1281 et seq.) is repealed, other than the following:
                    (A) The first section (7 U.S.C. 1281).
                    (B) Section 301 (7 U.S.C. 1301).
                    (C) Part I of subtitle B of title III (7 U.S.C. 
                1311 et seq.).
                    (D) Part VI of subtitle B of title III (7 U.S.C. 
                1357 et seq.).
                    (E) Subtitle C of title III (7 U.S.C. 1361 et 
                seq.).
                    (F) Subtitle F of title III (7 U.S.C. 1381 et 
                seq.).
                    (G) Title V (7 U.S.C. 1501 et seq.).
            (2) 2006 and subsequent marketing years and crops.--
        Effective beginning with the 2006 marketing year or crop year 
        (as applicable), part VI of subtitle B of title III (7 U.S.C. 
        1357 et seq.) is repealed.
    (b) Peanut Quota.--
            (1) Extension.--Sections 358-1, 358b(c), 358c(d), and 
        358e(i) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1358-1, 1358b(c), 1358c(d), 1359a(i)) are amended by striking 
        ``2002'' each place it appears and inserting ``2005''.
            (2) Peanut quota.--Part VI of subtitle B of title III of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) 
        is amended by adding at the end the following:

``SEC. 358F. PHASED INCREASE IN QUOTA.

    ``For each of the 2003, 2004, and 2005 crops of quota peanuts, the 
Secretary shall increase the marketing quota and allotment for each 
succeeding marketing year in a manner that progressively and uniformly 
increases the marketing quota to anticipate the elimination of the 
marketing quota for the 2006 crop.''.
    (c) Conforming Amendments.--
            (1) References to parity prices.--Section 302 of the 
        Agricultural Act of 1948 (7 U.S.C. 1301a) is amended by 
        striking subsection (f).
            (2) Transfer of acreage allotments.--Section 706 of the 
        Food and Agriculture Act of 1965 (7 U.S.C. 1305) is repealed.
            (3) Projected yields.--Section 708 of the Food and 
        Agriculture Act of 1965 (7 U.S.C. 1306) is repealed.
            (4) Wheat diversion programs.--Section 327 of the Food and 
        Agriculture Act of 1962 (7 U.S.C. 1339b) is repealed.
            (5) Farm marketing quotas.--The Joint Resolution entitled 
        ``Joint Resolution relating to corn and wheat marketing quotas 
        under the Agricultural Adjustment Act of 1938, as amended'', 
        approved May 26, 1941 (7 U.S.C. 1330 and 1340), is repealed.
            (6) Cotton acreage allotments.--The Act of March 29, 1949 
        (63 Stat. 17, chapter 38; 7 U.S.C. 1344a), is repealed.
            (7) Reconcentration of cotton.--The Act of June 16, 1938 
        (52 Stat. 762, chapter 480; 7 U.S.C. 1383a), is repealed.
            (8) Requirements for corn.--Section 308 of the Agricultural 
        Act of 1956 (7 U.S.C. 1442) is repealed.
            (9) Field measurement.--Section 1112 of the Omnibus Budget 
        Reconciliation Act of 1987 (101 Stat. 1330-8) is amended by 
        striking subsection (c).

SEC. 124. COMMODITY CREDIT CORPORATION CHARTER ACT.

    (a) In General.--Section 5 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (g) as 
        subsections (a) through (f), respectively.
    (b) Conforming Amendment.--Section 619 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1738r) is amended by 
striking ``section 5(f) of the Commodity Credit Corporation Charter 
Act'' and inserting ``section 5(e) of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c(e))''.
    (c) Crops.--The amendments made by this section apply beginning 
with the 2006 crop.

SEC. 125. AGRICULTURAL ACT OF 1949.

    (a) In General.--The Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) is repealed, other than the following:
            (1) The first section (7 U.S.C. 1421 note).
            (2) Sections 106, 106A, and 106B (7 U.S.C. 1445, 1445-1, 
        1445-2).
            (3) Section 416 (7 U.S.C. 1431)
    (b) Conforming Amendments.--
            (1) Amount of assessments.--Section 4609 of the Omnibus 
        Trade and Competitiveness Act of 1988 (7 U.S.C. 624 note; 
        Public Law 100-418) is repealed.
            (2) American agriculture protection program.--Section 1002 
        of the Food and Agriculture Act of 1977 (7 U.S.C. 1310) is 
        repealed.
            (3) Advance recourse loans.--Section 13 of the Food 
        Security Improvements Act of 1986 (7 U.S.C. 1433c-1) is 
        repealed.
            (4) Conversion into fuels.--Section 2001 of the Food and 
        Agriculture Act of 1977 (7 U.S.C. 1435) is amended--
                    (A) by striking subsection (a); and
                    (B) in subsection (b)--
                            (i) by striking the subsection designation;
                            (ii) by redesignating paragraphs (1) 
                        through (4) as subsections (a) through (d), 
                        respectively;
                            (iii) in subsection (a) (as so 
                        redesignated), by striking ``During'' and all 
                        that follows through ``1949, the'' and 
                        inserting ``The''; and
                            (iv) by striking ``subsection'' each place 
                        it appears and inserting ``section''.
            (5) Reimbursement of ccc.--Section 412 of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f) 
        is amended by striking subsection (d).
            (6) Honey assessments.--
                    (A) Section 9 of the Honey Research, Promotion, and 
                Consumer Information Act (7 U.S.C. 4608) is amended--
                            (i) by striking subsection (d);
                            (ii) by redesignating subsections (e) 
                        through (i) as subsections (d) through (h), 
                        respectively;
                            (iii) in subsection (a), by striking ``(d), 
                        (e), and (i)'' and inserting ``(d) and (h)'';
                            (iv) in subsection (f) (as so 
                        redesignated), by striking ``(f)'' and 
                        inserting ``(e)''; and
                            (v) in subsection (g)(1) (as so 
                        redesignated)--
                                    (I) in subparagraph (A), by 
                                striking ``(A)''; and
                                    (II) by striking subparagraph (B).
                    (B) Section 13(b)(2) of the Honey Research, 
                Promotion, and Consumer Information Act (7 U.S.C. 
                4612(b)(2)) is amended--
                            (i) in subparagraph (A)(ii), by striking 
                        ``4608(h)(1)'' and inserting ``4608(g)(1)''; 
                        and
                            (ii) in subparagraph (B)(ii), by striking 
                        ``4608(h)(1)'' and inserting ``4608(g)(1)''.
            (7) Essential agricultural use.--Section 273 of the Biomass 
        Energy and Alcohol Fuels Act of 1980 (15 U.S.C. 3391a) is 
        amended--
                    (A) by adding ``and'' at the end of paragraph (1);
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2).
            (8) Conservation reserve.--
                    (A) Rental payments.--Section 1234(f)(3) of the 
                Food Security Act of 1985 (16 U.S.C. 3834(f)(3)) is 
                amended--
                            (i) by striking ``this Act,'' and inserting 
                        ``this Act or''; and
                            (ii) by striking ``, or the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''.
                    (B) Environmental easement payments.--Section 
                1239C(f)(3) of the Food Security Act of 1985 (16 U.S.C. 
                3839c(f)(3)) is amended--
                            (i) by striking ``this Act,'' and inserting 
                        ``this Act or''; and
                            (ii) by striking ``, or the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''.
            (9) Taxable year for disaster payments.--The second 
        sentence of section 451(d) of the Internal Revenue Code of 1986 
        is amended by striking ``the Agricultural Act of 1949, as 
        amended, or''.
            (10) Interest penalties.--Section 3902(h) of title 31, 
        United States Code, is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.
            (11) Colorado river storage project.--Section 4 of the Act 
        of April 11, 1956 (70 Stat. 107, chapter 203; 43 U.S.C. 620c), 
        is amended by striking ``, as defined in the Agricultural Act 
        of 1949, or any amendment thereof,''.
            (12) Surplus crops.--Section 212 of the Reclamation 
        Projects Authorization and Adjustment Act of 1992 (Public Law 
        102-575; 106 Stat. 4625) is repealed.

SEC. 126. AGRICULTURAL ADJUSTMENT ACT.

    Effective January 1, 2003, section 8c(5) of the Agricultural 
Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by adding at 
the end the following:
                    ``(M) Milk Classes.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this subsection, the 
                        Secretary shall establish--
                                    ``(I) 1 class of milk for fluid 
                                milk; and
                                    ``(II) 1 class of milk for other 
                                uses of milk.
                            ``(ii) Component prices.--The classes of 
                        milk established under clause (i) shall be used 
                        to determine the prices of milk components.''.

SEC. 127. AGRICULTURAL ACT OF 1970.

    Section 813 of the Agricultural Act of 1970 (7 U.S.C. 1427a) is 
repealed.

SEC. 128. GENERAL COMMODITY PROVISIONS.

    (a) Payment Limitations.--Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) is amended by striking paragraph (1) and inserting 
the following:
            ``(1) Limitation on vouchers and payments.--
                    ``(A) Vouchers.--The total amount of vouchers made 
                under section 112 of the Farm Financial Protection Act 
                made directly or indirectly to an individual or entity 
                during any applicable year may not exceed $30,000.
                    ``(B) Environmental quality incentives program.--
                The total amount of payments made under chapter 4 of 
                subtitle D of title XII of the Food Security Act of 
                1985 (16 U.S.C. 3839aa et seq.) made directly or 
                indirectly to an individual or entity during any 
                applicable year may not exceed $50,000.
                    ``(C) Administration.--Notwithstanding any other 
                paragraph of this section, sections 1001A(b), 1001B, 
                and 1001C shall apply to an individual or entity that 
                receives a voucher or payment described in this 
                paragraph.''.
    (b) Normally Planted Acreage.--Section 1001 of the Food and 
Agriculture Act of 1977 (7 U.S.C. 1309) is repealed.
    (c) Normal Supply.--Section 1019 of the Food Security Act of 1985 
(7 U.S.C. 1310a) is repealed.
    (d) Determinations of the Secretary.--Section 1017 of the Food 
Security Act of 1985 (7 U.S.C. 1385 note; Public Law 99-198) is 
repealed.
    (e) Financial Impact Study.--Section 1147 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1421a) is repealed.
    (f) Planting on Set-Aside Acreage.--Section 814 of the Agricultural 
Act of 1970 (7 U.S.C. 1434) is repealed.
    (g) Cost of Production Study.--Section 808 of the Agricultural Act 
of 1970 (7 U.S.C. 1441a) is repealed.
    (h) Storage Payments.--Section 1124 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1445e note; Public Law 
101-624) is repealed.
    (i) Computation of Carryover.--Section 105 of the Agricultural Act 
of 1954 (7 U.S.C. 1745) is repealed.
    (j) Adjustment of Loans.--Section 2(b) of the Act of December 20, 
1944 (12 U.S.C. 1150a(b)), is amended--
            (1) by striking ``Agricultural Adjustment Act (of 1933);''; 
        and
            (2) by striking ``sections 303'' and all that follows 
        through ``adjustment payments;''.
    (k) Targeted Option Payments.--Section 121 of the Food, 
Agriculture, Conservation, and Trade Act Amendments of 1991 (105 Stat. 
1843) is repealed.

SEC. 129. SPECIFIC COMMODITY PROVISIONS.

    (a) Milk.--Section 101 of the Agriculture and Food Act of 1981 (7 
U.S.C. 608c note; Public Law 97-98) is amended by striking subsection 
(b).
    (b) Feed Grains.--
            (1) Recourse loan program for silage.--Section 403 of the 
        Food Security Act of 1985 (7 U.S.C. 1444e-1) is repealed.
            (2) Calculation of refunds.--Section 405 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        1445j note; Public Law 101-624) is repealed.
            (3) Acreage diversion programs.--Section 328 of the Food 
        and Agriculture Act of 1962 (7 U.S.C. 1339c) is repealed.

SEC. 130. EFFECT OF AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided in this 
title and notwithstanding any other provision of law, this subtitle and 
the amendments made by this subtitle 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 2002 crops, or for any of the 1996 through 2002 
marketing, reinsurance, fiscal, or calendar years, as applicable, under 
a provision of law in effect immediately before the enactment of this 
subtitle.
    (b) Liability.--A provision of this title or an amendment made by 
this subtitle shall not affect the liability of any person under any 
provision of law as in effect immediately before of enactment of this 
subtitle.

SEC. 131. CROP.

    This subtitle and the amendments made by this subtitle apply 
beginning with the 2003 crop of each agricultural commodity or the 2003 
marketing, reinsurance, fiscal, or calendar year, as applicable.

                         TITLE II--CONSERVATION

             Subtitle A--Working Land Conservation Programs

SEC. 201. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``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 this title, the 
        Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), 
        the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the Clean 
        Air Act (42 U.S.C. 7401 et seq.), and other Federal, State, 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, 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) 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 goals 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) land treatment practices;
                            ``(iii) nutrient management;
                            ``(iv) recordkeeping;
                            ``(v) feed management; and
                            ``(vi) 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.
            ``(2) Eligible land.--The term `eligible land' means 
        agricultural land (including cropland, 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.
            ``(3) Land management practice.--The term `land management 
        practice' means a site-specific nutrient or manure management, 
        integrated pest management, irrigation management, tillage or 
        residue management, grazing management, air quality management, 
        or other land management practice carried out on eligible land 
        that the Secretary determines is needed to protect, in the most 
        cost-effective manner, water, soil, or related resources from 
        degradation.
            ``(5) Livestock.--The term `livestock' means dairy cattle, 
        beef cattle, laying hens, broilers, turkeys, swine, sheep, and 
        such other animals as determined by the Secretary.
            ``(6) 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) Limitation.--The term `maximize environmental 
                benefits per dollar expended' does not require the 
                Secretary--
                            ``(i) to provide 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.
            ``(7) Practice.--The term `practice' means 1 or more 
        structural practices, land management practices, and 
        comprehensive nutrient management planning practices.
            ``(8) Producer.--The term `producer' means a person that is 
        engaged in livestock or agricultural production, as determined 
        by the Secretary.
            ``(9) 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 2003 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, through an 
        environmental quality incentives program in accordance with 
        this chapter.
            ``(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 environmental quality incentives program 
        to--
                    ``(A) any producer that is eligible for assistance 
                under this chapter; 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 chapter--
            ``(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 than 3, nor more than 
                10, years, as determined appropriate by the Secretary, 
                depending on the practice or practices that are the 
                basis of the contract; and
            ``(2) each farm may not adopt more than 1 structural 
        practice involving nutrient management during the period of 
        fiscal years 2003 through 2006.
    ``(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 maximizes 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 
                when 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 
                        this subtitle 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 this chapter.
    ``(d) Cost-Share Payments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Federal share of cost-share payments to a producer proposing to 
        implement 1 or more practices shall be not more than 75 percent 
        of the projected cost of the practice, as determined by the 
        Secretary.
            ``(2) Exceptions.--
                    ``(A) Limited resource and beginning farmers; 
                natural disasters.--The Secretary may increase the 
                maximum Federal share under paragraph (1) to not more 
                than 90 percent if the producer is a limited resource 
                farmer or a beginning farmer or to address a natural 
                disaster, as determined by the Secretary.
                    ``(B) Cost-share assistance from other sources.--
                Any cost-share payments received by a producer from a 
                State or private organization or person for the 
                implementation of 1 or more practices shall be in 
                addition to the Federal share of cost-share 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 this 
        chapter if the producer receives cost-share payments or other 
        benefits for the same practice on the same land under chapter 1 
        and this chapter.
    ``(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 this chapter 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 
        this chapter 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 this chapter shall not affect the eligibility 
        of the producer to receive technical assistance under other 
        authorities of law available to the Secretary.
            ``(5) Non-federal assistance.--
                    ``(A) In general.--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, or any other 
                governmental or nongovernmental organization or person 
                considered appropriate to assist in providing the 
                technical assistance necessary to develop and implement 
                conservation plans under the program.
                    ``(B) Private sources.--
                            ``(i) In general.--The Secretary shall 
                        ensure that the processes of writing and 
                        developing proposals and plans for contracts 
                        under this chapter, and of assisting in the 
                        implementation of practices covered by the 
                        contracts, are open to qualified private 
                        persons, including--
                                    ``(I) agricultural producers;
                                    ``(II) representatives from 
                                agricultural cooperatives;
                                    ``(III) agricultural input retail 
                                dealers;
                                    ``(IV) certified crop advisers;
                                    ``(V) persons providing technical 
                                consulting services; and
                                    ``(VI) other persons, as determined 
                                appropriate by the Secretary.
                            ``(ii) Other conservation programs.--The 
                        requirements of this subparagraph shall also 
                        apply to each other conservation program of the 
                        Department of Agriculture.
            ``(6) 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 private 
                person earlier than the producer would otherwise 
                receive the technical assistance from the Secretary.
                    ``(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 private person 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 private persons 
                        that have been certified by the Secretary under 
                        section 16 of the Soil Conservation and 
                        Domestic Allotment Act shall be eligible to 
                        provide technical assistance under this 
                        subsection.
                            ``(ii) Quality assurance.--The Secretary 
                        shall ensure that certified private 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 environmental 
                        quality incentives 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 private 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) Partnerships and Cooperation.--
            ``(1) Purposes.--The Secretary may designate special 
        projects, as recommended by the State Conservationist, with 
        advice from the State technical committee, to enhance technical 
        and financial assistance provided to several producers within a 
        specific area to address environmental issues affected by 
        agricultural production with respect to--
                    ``(A) meeting the purposes and requirements of--
                            ``(i) the Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.) or comparable 
                        State laws in impaired or threatened 
                        watersheds;
                            ``(ii) the Safe Drinking Water Act (42 
                        U.S.C. 300f et seq.) or comparable State laws 
                        in watersheds providing water for drinking 
                        water supplies; or
                            ``(iii) the Clean Air Act (42 U.S.C. 7401 
                        et seq.) or comparable State laws; or
                    ``(B) watersheds of special significance or other 
                geographic areas of environmental sensitivity; or
                    ``(C) enhancing the technical capacity of producers 
                to facilitate community-based planning, implementation 
                of special projects, and conservation education 
involving multiple producers within an area.
            ``(2) Incentives.--To realize the objectives of the special 
        projects under paragraph (1), the Secretary shall provide 
        incentives to producers participating in the special projects 
        to encourage partnerships and sharing of technical and 
        financial resources among producers and among producers and 
        governmental and nongovernmental organizations.
            ``(3) Funding.--
                    ``(A) In general.--The Secretary shall make 
                available 5 percent of funds provided for each fiscal 
                year under this chapter to carry out this subsection.
                    ``(B) Special projects.--The purposes of the 
                special projects under this subsection shall be to 
                encourage--
                            ``(i) producers to cooperate in the 
                        installation and maintenance of conservation 
                        systems that affect multiple agricultural 
                        operations;
                            ``(ii) sharing of information and technical 
                        and financial resources; and
                            ``(iii) cumulative environmental benefits 
                        across operations of producers.
            ``(4) Flexibility.--
                    ``(A) In general.--The Secretary may enter into 
                agreements with States, local governmental and 
                nongovernmental organizations, and persons to allow 
                greater flexibility to adjust the application of 
                eligibility criteria, approved practices, innovative 
                conservation practices, and other elements of the 
                programs described in subparagraph (B) to better 
                reflect unique local circumstances and goals in a 
                manner that is consistent with the purposes of this 
                chapter.
                    ``(B) Applicable programs.--Subparagraph (A) shall 
                apply to--
                            ``(i) the environmental quality incentives 
                        program established by this chapter;
                            ``(ii) the program to establish 
                        conservation buffers announced on March 24, 
                        1998 (63 Fed. Reg. 14109) or a successor 
                        program;
                            ``(iii) the conservation reserve 
                        enhancement program announced on May 27, 1998 
                        (63 Fed. Reg. 28965) or a successor program; 
                        and
                            ``(iv) the wetlands reserve program 
                        established under subchapter C of chapter 1.
            ``(5) Unused funding.--Any funds made available for a 
        fiscal year under this subsection that are not obligated by 
        June 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.
    ``(h) 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.

    ``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 
        involving--
                    ``(i) comprehensive nutrient management;
                    ``(ii) water quality, particularly in impaired 
                watersheds;
                    ``(iii) soil erosion; or
                    ``(iv) air quality;
            ``(B) are provided in conservation priority areas 
        established under section 1230(c); or
            ``(C) are provided in special projects under section 
        1240B(g) 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.

``SEC. 1240D. DUTIES OF PRODUCERS.

    ``To receive technical assistance, cost-share payments, or 
incentive payments under this chapter, a producer shall agree--
            ``(1) to implement an environmental quality incentives 
        program plan that describes conservation and environmental 
        goals 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 this chapter;
            ``(3) on the violation of a term or condition of the 
        contract at any time the producer has control of the land, to 
        refund any cost-share or incentive payment received with 
        interest, and forfeit any future payments under this chapter, 
        as determined by the Secretary;
            ``(4) on the transfer of the right and interest of the 
        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 this chapter, as 
        determined by the Secretary;
            ``(5) to supply information as required by the Secretary to 
        determine compliance with the environmental quality incentives 
        program plan and requirements of the program; and
            ``(6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the 
environmental quality incentives program plan.

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

    ``(a) In General.--To be eligible to receive technical assistance, 
cost-share payments, or incentive payments under the environmental 
quality incentives program, an owner or producer of a livestock or 
agricultural operation must submit to the Secretary for approval a plan 
of operations that incorporates practices covered under this chapter, 
and is based on such principles, as the Secretary considers necessary 
to carry out the program, including a description of the practices to 
be implemented and the objectives to be met by the implementation of 
the plan.
    ``(b) Avoidance of Duplication.--The Secretary shall, to the 
maximum extent practicable, eliminate duplication of planning 
activities under the environmental quality incentives 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 an 
environmental quality incentives 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 
may not exceed--
            ``(1) $50,000 for any fiscal year; or
            ``(2) $150,000 for any multiyear contract.
    ``(b) Attribution.--An individual or entity may not receive, 
directly or indirectly, payments under this chapter that exceed $50,000 
for any fiscal year.
    ``(c) Verification.--The Secretary shall identify individuals and 
entities that are eligible for a payment under this chapter using 
social security numbers and taxpayer identification numbers, 
respectively.

``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

    ``(a) In General.--From funds made available to carry out this 
chapter, the Secretary shall use $100,000,000 for each fiscal year to 
pay the Federal share 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 environmental quality incentives 
program.
    ``(b) Use.--The Secretary shall 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 this chapter;
            ``(2) implement innovative projects, such as--
                    ``(A) market-based pollution credit trading; and
                    ``(B) provision of funds to promote adoption of 
                best management practices and the storing of carbon in 
                the soil; and
            ``(3) leverage funds made available to carry out this 
        chapter with matching funds provided by State and local 
        governments and private organizations to promote environmental 
        enhancement and protection in conjunction with agricultural 
        production.
    ``(c) Federal Share.--The Federal share of a grant made to carry 
out a project under this section 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 June 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. WORKING LAND ENVIRONMENTAL IMPROVEMENT OPTION.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to provide incentives to producers on agricultural 
        working land to attain increased environmental benefits by 
        implementing a systems approach to the conservation needs on 
        the farm or ranch of the producer;
            ``(2) to target conservation systems instead of individual 
        conservation practices;
            ``(3) to emphasize more comprehensive, multiyear agreements 
        that enable a more integrated natural resource plan for the 
        farm or ranch of the producer; and
            ``(4) to emphasize conservation systems that are based on 
        land management instead of structural practices or land 
        retirement.
    ``(b) Definition of Conservation System.--In this section, the term 
`conservation system' means a set of multiple conservation practices 
that--
            ``(1) address 1 or more natural resources on a farm or 
        ranch of a producer;
            ``(2) requires planning, implementation, management, and 
        maintenance;
            ``(3) promotes 1 or more conservation purposes identified 
        in the plan developed and approved by the Secretary under 
        section 1240D;
            ``(4) has not been implemented on the applicable 
        agricultural land of the producer before receipt of a payment 
        under this section; and
            ``(5) involves--
                    ``(A) a basic conservation activity, such as pest 
                management, contour farming, residue management, 
                nutrient management, or similar activities, as 
                determined by the Secretary;
                    ``(B) a land use adjustment or protection activity, 
                such as resource-conserving crop rotation, controlled, 
                rotational grazing, or similar activities, as 
                determined by the Secretary; or
                    ``(C) an activity that fosters the long-term 
                sustainability of all natural resources on the 
                agricultural operation, as determined by the Secretary.
    ``(c) Establishment.--
            ``(1) In general.--The Secretary shall establish a program 
        that is designed to--
                    ``(A) function as part of the environmental quality 
                incentives program under this chapter; and
                    ``(B) provide an option for producers to receive a 
                bonus payment for engaging in new and more 
                environmentally beneficial conservation practices on 
                agricultural working land.
            ``(2) Contract.--
                    ``(A) In general.--In exchange for a producer 
                entering into a working land environmental improvement 
                option contract, the Secretary shall provide an annual 
                bonus payment, in an amount determined by the 
                Secretary, to the producer in accordance with the 
                contract.
                    ``(B) Relation to equip.--A contract under this 
                section may be a component of, or separate from, a 
                contract under section 1240B.
                    ``(C) Term.--A contract entered into under this 
                section shall have a term of not less than 5, nor more 
                than 10, years.
                    ``(D) Linkage.--The Secretary shall not require 
                that any producer enter into a contract under any other 
                program under this chapter to be eligible to receive a 
                bonus payment under a contract entered into under this 
                section.
            ``(3) Conservation system plan.--
                    ``(A) In general.--A conservation system plan 
                developed under this section that incorporates an 
                integrated approach to conservation of natural 
                resources on the farm or ranch of a producer may be 
                included in a plan developed under section 1240D, under 
                which conservation goals are achieved through 
                individual practices.
                    ``(B) Eligible systems.--A conservation system that 
                is eligible for a bonus payment under this section may 
                be associated with a land management practice, 
                structural practice, or comprehensive nutrient 
                management practice that has been otherwise approved by 
                the Secretary under this chapter.
            ``(4) Identification of conservation systems.--The State 
        Conservationist and State Technical Committee for each State 
        shall identify conservation activities that, in combination--
                    ``(A) address the geographical, agronomic, and 
                environmental conditions that are unique to the State 
                or area; and
                    ``(B) qualify as conservation systems under this 
                section.
            ``(5) Bonus payments.--A producer that implements a 
        conservation system shall be eligible to receive an annual 
        bonus payment that is in addition to any incentive payment, 
        cost share payment, or technical assistance available to the 
        producer under this chapter.
    ``(d) Evaluation of Contract Offers.--
            ``(1) Evaluation factors.--In order to maximize 
        environmental benefits per dollar expended under this section, 
        the Secretary shall establish a list of multiple evaluation 
        factors that are to be used to evaluate and rank the 
        conservation systems proposed by producers.
            ``(2) Required priority factors.--The Secretary shall give 
        priority to offers that--
                    ``(A) demonstrate the prior use of a conservation 
                activity, such as conservation tillage;
                    ``(B) address multiple natural resource 
                conservation goals;
                    ``(C) implement more comprehensive conservation 
                systems; or
                    ``(D) are submitted by a limited resource farmer, 
                beginning farmer, or Indian tribe (as defined in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b)), as 
                determined by the Secretary.
            ``(3) Discretionary factors.--Additional evaluation factors 
        may include--
                    ``(A) the number of farms and ranches within the 
                soil and water conservation district in which the 
                agricultural operation of the producer is located;
                    ``(B) with respect to the agricultural operation of 
                the producer--
                            ``(i) soil erosion;
                            ``(ii) the potential for pesticide and 
                        nutrient leaching;
                            ``(iii) animal waste generation; and
                            ``(iv) wetland; and
                    ``(C) other factors, as determined by the 
                Secretary.
            ``(4) Points.--Each evaluation factor shall be accorded a 
        point value as determined by the Secretary.
            ``(5) Offers.--Each offer of a producer to enter into a 
        contract under this section shall be ranked by the Secretary 
        according to the number of points assigned the conservation 
        system proposed in the offer.
    ``(e) Procedure for Ranking and Selecting Offers.--
            ``(1) Local environmental problems and priorities.--Each 
        soil and water conservation district, or local working group, 
        as designated by the Secretary, shall--
                    ``(A) identify the environmental problems that 
                exist within the district; and
                    ``(B) determine which conservation systems and 
                practices would best ameliorate the environmental 
                problems of the district; and
                    ``(C) make recommendations to the State 
                conservationist and State technical committee of the 
                respective State concerning the issues described in 
                subparagraphs (A) and (B).
            ``(2) State conservationist.--The State conservationist for 
        each State, in consultation with the State technical committee, 
        shall--
                    ``(A) summarize the information and recommendations 
                provided by each soil and water conservation district 
                of the State; and
                    ``(B) transmit the information and recommendations 
                to the Secretary (including a detailed description of 
                intended priorities for funding within the State).
            ``(3) State funding allocations.--
                    ``(A) In general.--The Secretary may use the 
                information and recommendations supplied by each State 
                Conservationist, including natural resource 
                inventories, statistical studies, and reports, to 
                determine funding allocations under this section for 
                each State.
                    ``(B) Elements of allocation determinations.--A 
                funding allocation shall be determined on the basis 
                of--
                            ``(i) the evaluation factors described in 
                        subsection (d); and
                            ``(ii) the information and recommendations 
                        summarized by State conservationists under 
                        paragraph (2)(A).
                    ``(C) Notification.--The State conservationist for 
                each State shall be notified of the funding allocation 
                for the State.
            ``(4) Ranking, selection of offers, and award of bonus 
        payments.--
                    ``(A) Ranking offers.--The State conservationist of 
                the appropriate State, in consultation with the State 
                technical committee and the soil and water conservation 
                district in which the agricultural operation of a 
                producer is located, shall rank each offer according 
                to--
                            ``(i) the criteria established by the 
                        Secretary; and
                            ``(ii) the number of points awarded to the 
                        offer.
                    ``(B) Acceptance of offers.--Based on the ranking 
                of each offer of a producer by the State and the 
                availability of funds for the State, the State 
                conservationist may accept offers of producers that 
                will receive bonus payments.
                    ``(C) Determination of bonus payments.--The State 
                conservationist, in consultation with the State 
                technical committee, and in consultation with the soil 
                and water conservation district in which the 
                agricultural operation of a producer is located, shall 
                determine the amount of the bonus payment applicable to 
                the conservation system that the producer offers to 
                implement.
                    ``(D) Determination of amount of bonus payments.--
                The amount of an annual bonus payment, to the extent 
                practicable, shall be determined by the State 
                conservationist, in consultation with the State 
                technical committee and the soil and water conservation 
                district in which the agricultural operation of the 
                producer is located, using criteria established under 
                the guidelines described in subparagraph (E).
                    ``(E) Guidelines.--The criteria used to determine 
                the amount of a bonus payment may be--
                            ``(i) as objective and transparent as 
                        practicable; and
                            ``(ii) based on--
                                    ``(I) to the maximum extent 
                                practicable, outcome-based factors 
                                relating to the natural resource and 
                                environmental benefits that result from 
                                the adoption, maintenance, and 
                                improvement in implementation of the 
                                conservation practice carried out by 
                                the producer;
                                    ``(II) system-based factors, 
                                including--
                                            ``(aa) the level and extent 
                                        of conservation systems to be 
                                        established or maintained;
                                            ``(bb) the cost of the 
                                        adoption, maintenance, and 
                                        improvement in implementation 
                                        of the conservation system;
                                            ``(cc) the income loss that 
                                        would be experienced, or 
                                        economic value that would be 
                                        forgone, by the producer 
                                        because of land use adjustments 
                                        resulting from the adoption, 
                                        maintenance, and improvement of 
                                        the conservation system; and
                                            ``(dd) the extent to which 
                                        compensation would ensure 
                                        maintenance and improvement of 
                                        the conservation system; and
                                    ``(III) such other factors as the 
                                Secretary determines to be appropriate 
                                to encourage participation under this 
                                section.
    ``(f) Limitation on Assistance.--The total amount of bonus payments 
a producer may receive under this section shall not exceed $25,000 for 
any fiscal year.
    ``(g) Funding.--Of the funds made available to carry out this 
chapter, the Secretary shall use to carry out this section--
            ``(1) $100,000,000 for fiscal year 2003;
            ``(2) $150,000,000 for fiscal year 2004; and
            ``(3) $400,000,000 for each of fiscal years 2005 and 
        2006.''.
    (b) Funding.--Section 1241(b) of the Food Security Act of 1985 (16 
U.S.C. 3841(b)) is amended--
            (1) in paragraph (1), by striking ``$130,000,000'' and all 
        that follows through ``2002,'' and inserting ``$750,000,000 for 
        fiscal year 2003, $1,250,000,000 for fiscal year 2004, and 
        $2,150,000,000 for each of fiscal years 2005 through 2006,''; 
        and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Obligation of funds.--
                    ``(A) In general.--If a contract under the 
                environmental quality incentives program under chapter 
                4 of subtitle D is terminated prior to the end of the 
                term of the contract and funds obligated for the 
                contract are remaining, the remaining funds may be used 
                to carry out any other contract under the program 
                during the same fiscal year in which the original 
                contract was terminated.
                    ``(B) Additional uses of funds.--Funding for 
                contracts that terminate under the program administered 
                under subchapter B of chapter 1 may be transferred to, 
                and used to carry out, the program under chapter 4 of 
                subtitle D.''.
    (c) Cooperation With Other Government Agencies.--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. 202. CONSERVATION RESERVE PROGRAM.

    (a) Extension of Program.--
            (1) In general.--Section 1231 of the Food Security Act of 
        1985 (16 U.S.C. 3831) is amended--
                    (A) in subsections (a) and (b)(3), by striking 
                ``2002'' each place it appears and inserting ``2006'';
                    (B) in subsection (d)--
                            (i) by striking ``2002'' and inserting 
                        ``2006''; and
                            (ii) by striking ``36,400,000'' and 
                        inserting ``40,000,000''; and
                    (C) in subsection (h)(1), by striking ``the 2001 
                and 2002'' and inserting ``each of the 2001 through 
                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 Buffers and Conservation Reserve Enhancement 
Program.--Section 1231 of the Food Security Act of 1985 (16 U.S.C. 
3831) is amended--
            (1) in subsection (b)(4)--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(E) if the Secretary determines that the cropland 
                is a part of a field and is no longer feasible to farm 
                as a result of the remainder of the field having been 
                enrolled--
                            ``(i) to establish conservation buffers as 
                        part of the program announced on March 24, 1998 
                        (63 Fed. Reg. 14109) or a successor program; or
                            ``(ii) into the conservation reserve 
                        enhancement program announced on May 27, 1998 
                        (63 Fed. Reg. 28965) or a successor program.''; 
                        and
            (2) in subsection (d)--
                    (A) by striking ``2002'' and inserting ``2006''; 
                and
                    (B) by inserting before the period at the end the 
                following: ``, of which not less than 4,000,000 acres 
                shall be enrolled--
            ``(1) to establish conservation buffers as part of the 
        program announced on March 24, 1998 (63 Fed. Reg. 14109) or a 
        successor program; and
            ``(2) through the conservation reserve enhancement program 
        announced on May 27, 1998 (63 Fed. Reg. 28965) or a successor 
        program.''.
    (c) Hardwood Trees.--Section 1231(e)(2) of the Food Security Act of 
1985 (16 U.S.C. 3831(e)(2)) is amended--
            (1) by striking ``In the'' and inserting the following:
                    ``(A) In general.--In the'';
            (2) by striking ``The Secretary'' and inserting the 
        following:
                    ``(B) Existing hardwood tree contracts.--The 
                Secretary''; and
            (3) 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, on the 
                        request of the owner or operator of the land, 
                        the Secretary shall extend the contract for a 
                        term of 15 years.
                            ``(ii) Rental payments.--The amount of a 
                        rental payment for a contract extended under 
                        clause (i) shall be 50 percent of the rental 
                        payment that was applicable to the contract 
                        before the contract was extended.''.
    (d) Haying and Grazing on Buffer Strips.--Section 1232(a)(7) of the 
Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
            (1) by striking ``except that the Secretary--'' and 
        inserting ``except that--'';
            (2) in subparagraph (A)--
                    (A) by striking ``(A) may'' and inserting ``(A) the 
                Secretary may''; and
                    (B) by striking ``and'' at the end;
            (3) in subparagraph (B)--
                    (A) by striking ``(B) shall'' and inserting ``(B) 
                the Secretary shall''; and
                    (B) by striking the period at the end and inserting 
                a semicolon;
            (4) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (5) by adding at the end the following:
                    ``(D) for maintenance purposes, the Secretary shall 
                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 announced on March 24, 1998 
                        (63 Fed. Reg. 14109) or a successor program; 
                        and
                            ``(ii) into the conservation reserve 
                        enhancement program announced on May 27, 1998 
                        (63 Fed. Reg. 28965) or a successor program.''.
    (e) Cost Share for Hardwood Trees.--Section 1234(b)(3) of the Food 
Security Act of 1985 (16 U.S.C. 3834(b)(3)) is amended by striking ``4-
year'' and inserting ``5-year''.
    (f) Base History.--Section 1236 of the Food Security Act of 1985 
(16 U.S.C. 3836) is amended by striking subsection (d) and inserting 
the following:
    ``(d) Reduction or Termination of Cropland.--
            ``(1) In general.--In addition to any other remedy 
        available under any other law, the Secretary may reduce or 
        terminate the quantity of cropland base and allotment history 
        preserved under subsection (c) for acreage with respect to 
        which a violation of a term or condition of a contract covering 
        that acreage occurs.
            ``(2) Required termination.--The Secretary shall terminate 
        the cropland base and allotment history for all cropland--
                    ``(A) enrolled under this subchapter; and
                    ``(B) used for--
                            ``(i) the planting of hardwood trees under 
                        section 1231(e)(2);
                            ``(ii) the pilot program under section 
                        1231(h); or
                            ``(iii) enrollment--
                                    ``(I) to establish conservation 
                                buffers as part of the program 
                                announced on March 24, 1998 (63 Fed. 
                                Reg. 14109) or a successor program; or
                                    ``(II) in the program announced on 
                                May 27, 1998 (63 Fed. Reg. 28965) or a 
                                successor program.''.
    (g) Funding.--Section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended--
            (1) by striking ``1996 through 2002'' and inserting ``2003 
        through 2006''; and
            (2) in paragraph (1), by inserting ``, including technical 
        assistance'' before the semicolon at the end.

SEC. 203. WETLANDS RESERVE PROGRAM.

    (a) Maximum Enrollment.--Section 1237(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking ``975,000 
acres'' and inserting ``1,975,000 acres''.
    (b) Extension of Program.--Section 1237(c) of the Food Security Act 
of 1985 (16 U.S.C. 3837(c)) is amended by striking ``2002'' and 
inserting ``2006''.
    (c) 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.--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, including hypoxia, 
        eutrophication, wildlife habitat, flooding, and groundwater 
        recharge.
            ``(3) Limitation.--The total number of acres that may be 
        covered by agreements entered into under this subsection shall 
        not exceed 50,000 acres for each calendar year.''.
    (d) 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)''.
    (e) Technical Assistance.--Section 1241(a)(2) of the Food Security 
Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by inserting ``, 
including technical assistance'' before the semicolon at the end.

SEC. 204. FARMLAND AND GRASSLAND PROTECTION PROGRAM.

    Section 388 of the Federal Agriculture Improvement and Reform Act 
of 1996 (16 U.S.C. 3830 note; Public Law 104-127) is amended to read as 
follows:

``SEC. 388. FARMLAND AND GRASSLAND PROTECTION PROGRAM.

    ``(a) Definition of Agricultural Land.--In this section, the term 
`agricultural land' means land on a farm or ranch that is--
            ``(1) cropland;
            ``(2) rangeland or grassland;
            ``(3) pastureland; or
            ``(4) private forest land.
    ``(b) Establishment.--The Secretary of Agriculture shall establish 
and carry out a farmland protection program under which the Secretary 
shall purchase conservation easements or other interests in 
agricultural land with prime, unique, or other productive soil that is 
subject to a pending offer for the purpose of protecting topsoil by 
limiting nonagricultural uses of the land from--
            ``(1) any agency of any State or local government, or 
        federally recognized Indian tribe, including farmland 
        protection boards and land resource councils established under 
        State law; and
            ``(2) any organization that--
                    ``(A) is organized for, and at all times since the 
                formation of the organization has been operated 
                principally for, 1 or more of the conservation purposes 
                specified in clauses (i), (ii), and (iii) of section 
                170(h)(4)(A) of the Internal Revenue Code of 1986;
                    ``(B) is an organization described in section 
                501(c)(3) of that Code that is exempt from taxation 
                under section 501(a) of that Code;
                    ``(C) is described in section 509(a)(2) of that 
                Code; or
                    ``(D) is described in section 509(a)(3) of that 
                Code and is controlled by an organization described in 
                section 509(a)(2) of that Code.
    ``(c) Conservation Plan.--Any agricultural land for which a 
conservation easement or other interest is purchased under this section 
shall be subject to the requirements of a conservation plan that 
ensures that continued agricultural use of the agricultural land--
            ``(1) will not degrade the environment; and
            ``(2) in the case of cropland, will require the conversion 
        of the agricultural land to less intensive uses, at the option 
        of the Secretary.
    ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available $65,000,000 for 
        each of fiscal years 2003 through 2006 for providing technical 
        assistance and purchasing conservation easements under this 
        section.
            ``(2) Cost sharing.--
                    ``(A) Federal share.--The Federal share of the cost 
                of purchasing a conservation easement or other interest 
                described in subsection (b) shall not exceed 50 
                percent.
                    ``(B) Non-federal share.--The non-Federal share of 
                the cost of any project relating to the purchase of a 
                conservation easement under this section may be made in 
                the form of donations from any non-Federal source 
                (including donations of conservation easements in a 
                project area) that materially advance the goals of the 
                project, as determined by the Secretary.''.

SEC. 205. WILDLIFE HABITAT INCENTIVE PROGRAM.

    Section 387(c) of the Federal Agriculture Improvement and Reform 
Act of 1996 (16 U.S.C. 3836a(c)) is amended by striking ``a total of 
$50,000,000 shall be made available for fiscal years 1996 through 
2002'' and inserting ``the Secretary shall make available $50,000,000 
for each of fiscal years 2003 through 2006''.

            Subtitle B--Miscellaneous Reforms and Extensions

SEC. 211. PRIVACY OF PERSONAL INFORMATION RELATING TO NATURAL RESOURCES 
              CONSERVATION PROGRAMS.

    Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended--
            (1) by redesignating sections 1244 and 1245 (16 U.S.C. 
        3844, 3845) as sections 1245 and 1246, respectively; and
            (2) by inserting after section 1243 (16 U.S.C. 3843) the 
        following:

``SEC. 1244. PRIVACY OF PERSONAL INFORMATION RELATING TO NATURAL 
              RESOURCES CONSERVATION PROGRAMS.

    ``(a) Information Received for Technical and Financial 
Assistance.--
            ``(1) In general.--In accordance with section 552(b)(3) of 
        title 5, United States Code, except as provided in paragraph 
        (3) and subsection (c), information described in paragraph (2) 
        --
                    ``(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 of Agriculture.
            ``(2) Information.--The information referred to in 
        paragraph (1) is information--
                    ``(A) provided to, or developed by, the Secretary 
                (including a contractor of the Secretary) for the 
                purpose of providing technical or financial assistance 
                to an owner or producer with respect to any natural 
                resources conservation program administered by the 
                Natural Resources Conservation Service or the Farm 
                Service Agency; and
                    ``(B) that is proprietary to the agricultural 
                operation or land that is a part of an agricultural 
                operation of the owner or producer.
            ``(3) Exception.--Information compiled by the Secretary, 
        such as a list of owners or producers that have received 
        payments from the Secretary and the amounts received, shall 
        be--
                    ``(A) considered to be public information; and
                    ``(B) may be released to any person or any Federal, 
                State, local, or tribal agency outside the Department 
                of Agriculture.
    ``(b) Inventory, Monitoring, and Site Specific Information.--Except 
as provided in subsection (c) and notwithstanding any other provision 
of law, in order to maintain the personal privacy, confidentiality, and 
cooperation of owners and producers, and to maintain the integrity of 
sample sites, the specific geographic locations of the National 
Resources Inventory of the Department of Agriculture data gathering 
sites and the information generated by those sites--
            ``(1) shall not be considered to be public information; and
            ``(2) shall not be released to any person or Federal, 
        State, local, or tribal agency outside the Department of 
        Agriculture.
    ``(c) Exceptions.--
            ``(1) Release and disclosure for enforcement.--The 
        Secretary may release or disclose to the Attorney General 
        information covered by subsection (a) or (b) to the extent 
        necessary to enforce the natural resources conservation 
        programs referred to in subsection (a).
            ``(2) Disclosure to cooperating persons and agencies.--
                    ``(A) In general.--The Secretary may release or 
                disclose information covered by subsection (a) or (b) 
                to a person or Federal, State, local, or tribal agency 
                working in cooperation with the Secretary in providing 
                technical and financial assistance described in 
                subsection (a) or collecting information from National 
                Resources Inventory data gathering sites.
                    ``(B) Use of information.--The person or Federal, 
                State, local, or tribal agency that receives 
                information described in subparagraph (A) 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 
                        National Resources Inventory data gathering 
                        sites.
            ``(3) Statistical and aggregate information.--Information 
        covered by subsection (b) may be disclosed to the public if the 
        information has been transformed into a statistical or 
        aggregate form that does not allow the identification of any 
        individual owner, producer, or specific data gathering site.
            ``(4) Consent of owner or producer.--
                    ``(A) In general.--An owner or producer may consent 
                to the disclosure of information described in 
                subsection (a) or (b).
                    ``(B) Condition of other programs.--The 
                participation of the owner or producer in, and the 
                receipt of any benefit by the owner or producer under, 
                this title or any other program administered by the 
                Secretary may not be conditioned on the owner or 
                operator providing consent under this paragraph.
    ``(d) 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 section.''.

SEC. 212. REFORM AND CONSOLIDATION OF CONSERVATION PROGRAMS.

    (a) In General.--The Secretary of Agriculture shall develop a plan 
for--
            (1) consolidating conservation programs administered by the 
        Secretary that are targeted at agricultural land; and
            (2) to the maximum extent practicable--
                    (A) designing forms that are applicable to all such 
                conservation programs;
                    (B) reducing and consolidating paperwork 
                requirements for such 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.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that describes the plan 
developed under subsection (a), including any recommendations for 
implementation of the plan.
    (c) National Conservation Plan.--Not later than 180 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 plan 
and estimated budget for implementing the appraisal of the soil, water, 
and related resources of the Nation contained in the National 
Conservation Program under section 5 of the Soil and Water Resources 
Conservation Act of 1977 (16 U.S.C. 2004) as the primary vehicle for 
managing conservation on agricultural land in the United States.

SEC. 213. CERTIFICATION OF PRIVATE PROVIDERS OF TECHNICAL ASSISTANCE.

    The Soil Conservation and Domestic Allotment Act is amended by 
inserting after section 15 (16 U.S.C. 590o) the following:

``SEC. 16. CERTIFICATION OF PRIVATE PROVIDERS OF TECHNICAL ASSISTANCE.

    ``(a) Establishment.--The Secretary of Agriculture shall establish 
procedures for certifying private persons to provide technical 
assistance to agricultural producers and landowners participating in 
conservation programs administered by the Secretary.
    ``(b) Standards.--The Secretary shall establish standards for the 
conduct of--
            ``(1) the certification process conducted by the Secretary; 
        and
            ``(2) periodic recertification by the Secretary of private 
        providers.
    ``(c) Certification Required.--A private provider may not provide 
technical assistance under any conservation program administered by the 
Secretary without certification approved by the Secretary.
    ``(d) Fee.--In exchange for certification, a private provider shall 
pay a fee to the Secretary in an amount determined by the Secretary.
    ``(e) Provider.--Except as provided in section 1240B(f)(6) of the 
Food Security Act of 1985 (7 U.S.C. 3839aa-(f)(6)), the Secretary shall 
determine under what individual cases and conservation programs 
technical assistance may be delivered by private providers or by the 
Secretary.
    ``(f) Other Requirements.--The Secretary may establish other 
requirements as the Secretary determines are necessary to carry out 
this section.''.

SEC. 214. NATIONAL ENVIRONMENTAL BENEFITS INDEX.

    (a) Study.--Not later than January 1, 2003, the Secretary of 
Agriculture shall request the National Academy of Sciences to conduct a 
study--
            (1) to identify the natural resources targeted in 
        conservation programs administered by the Secretary;
            (2) to identify the environmental goals of the conservation 
        programs; and
            (3) to develop a single environmental benefits index that 
        may be applied to all conservation programs that would allow--
                    (A) personnel and funding of the Department of 
                Agriculture to be better targeted at conservation 
                priorities;
                    (B) to facilitate the more effective participation 
                of owners and producers in the conservation programs; 
                and
                    (C) to maximize environmental benefits per dollar 
                expended.
    (b) Reports.--Not later than 18 months after the date on which the 
study under subsection (a) is commenced, 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--
            (1) describes the results of the study conducted under 
        subsection (a); and
            (2) includes any appropriate recommendations and a model 
        environmental benefits index described in subsection (a)(3).
    (c) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section $2,000,000 for 
fiscal year 2003.

SEC. 215. EXTENSION OF CONSERVATION AUTHORITIES.

    (a) ECARP Authority.--Section 1230(a)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3830(a)(1)) is amended by striking ``2002'' and 
inserting ``2006''.
    (b) Flood Risk Reduction.--Section 385(a) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7334(a)) is 
amended by striking ``2002'' and inserting ``2006''.
    (c) Resource Conservation and Development Program.--Section 1538 of 
the Agriculture and Food Act of 1981 (16 U.S.C. 3461) is amended in the 
first sentence by striking ``2002'' and inserting ``2006''.

SEC. 216. TECHNICAL AMENDMENTS.

    (a) Delineation of Wetlands; Exemptions to Program Ineligibility.--
            (1) References to producer.--Section 322(e) of the Federal 
        Agriculture Improvement and Reform Act of 1996 (Public Law 104-
        127; 110 Stat. 991) is amended by inserting ``each place it 
        appears'' before ``and inserting''.
            (2) Good faith exemption.--Section 1222(h)(2) of the Food 
        Security Act of 1985 (16 U.S.C. 3822(h)(2)) is amended by 
        striking ``to actively'' and inserting ``to be actively''.
            (3) Determinations.--Section 1222(j) of the Food Security 
        Act of 1985 (16 U.S.C. 3822(j)) is amended by striking 
        ``National'' and inserting ``Natural''.
    (b) Wildlife Habitat Incentive Program.--Section 387 of the Federal 
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is 
amended in the section heading by striking ``incentives'' and inserting 
``incentive''.

SEC. 217. EFFECT OF AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided in this 
title and notwithstanding any other provision of law, this title and 
the amendments made by this title shall not affect the authority of the 
Secretary of Agriculture to carry out a conservation program for any of 
the 1996 through 2002 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 title or an amendment made by 
this title 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.

                            TITLE III--TRADE

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

SEC. 301. LEVELS OF ASSISTANCE.

    Section 204(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724(a)) is amended by striking ``2002'' each 
place it appears and inserting ``2006''.

SEC. 302. 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. 303. 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. 304. 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. 305. 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. 306. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    Section 415 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736g-2) is amended by striking subsection (d).

SEC. 307. 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 ``2002'' and inserting ``2006''; and
            (2) by striking ``0.4'' and inserting ``0.5''.

SEC. 308. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended in subsection (b)(2)(B)(i) and paragraphs (1) and 
(2) of subsection (h) by striking ``2002'' each place it appears and 
inserting ``2006''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) 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''.
    (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) Commercial Sales to China.--The Secretary of Agriculture shall 
evaluate the eligibility of the People's Republic of China for 
financing under the export credit guarantee program in light of the 
country risk profile and bank credit ceiling analyses for that country, 
which, as of the date of enactment of this Act, may preclude financing 
under the program.

SEC. 322. MARKET ACCESS PROGRAM.

    (a) Funding.--Section 211(c)(1) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)) is amended by striking ``not less than 
$200,000,000'' and all that follows through ``1996 through 2002'' and 
inserting ``$110,000,000 for fiscal year 2003, $110,000,000 for fiscal 
year 2004, and $130,000,000 for each of fiscal years 2005 and 2006''.
    (b) United States Quality Export Initiative.--
            (1) Findings.--Congress finds that--
                    (A) the market access program and foreign market 
                development program target generic and value-added 
                products, with little emphasis on the high quality of a 
                United States product; and
                    (B) new promotional tools are needed to enable 
                United States products to compete in higher margin, 
                international markets on the basis of quality.
            (2) Amendment.--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.--Using the authorities under this 
        section, the Secretary shall develop a competition in which, 
        using practical and objective criteria, several products are 
        selected to carry the `U.S. Quality' seal.
            ``(2) Promotional activities.--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.''.

SEC. 323. EXPORT ENHANCEMENT PROGRAM.

    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''.

SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    The Agricultural Trade Act of 1978 is amended by striking section 
703 (7 U.S.C. 5723) and inserting the following:

``SEC. 703. FUNDING.

    ``(a) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this title.
    ``(b) Funding.--
            ``(1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall make 
        available to carry out this title--
                    ``(A) $31,500,000 for fiscal year 2003;
                    ``(B) $36,000,000 for fiscal year 2004;
                    ``(C) $37,500,000 for fiscal year 2005; and
                    ``(D) $43,250,000 for fiscal year 2006.
            ``(2) New entrants and markets.--
                    ``(A) Goals.--The Secretary shall encourage--
                            ``(i) the participation of additional 
                        eligible trade organizations; and
                            ``(ii) the development of new markets for 
                        United States agricultural commodities in 
                        foreign countries.
                    ``(B) Targeted funding.--Of funds made available 
                under paragraph (1), the Secretary shall use to 
                accomplish the goals under subparagraph (A)--
                            ``(i) $2,000,000 for fiscal year 2003;
                            ``(ii) $4,250,000 for fiscal year 2004;
                            ``(iii) $5,000,000 for fiscal year 2005; 
                        and
                            ``(iv) $7,875,000 for fiscal year 2006.
            ``(3) Use of unobligated funds.--For each fiscal year, 
        funds described in paragraph (2)(B) that are not obligated by 
        July 1 of the fiscal year may be used for any purpose 
        authorized under this title.''.

SEC. 325. FOOD FOR PROGRESS.

    (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

``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.
            ``(4) Eligible commodity.--The term `eligible commodity' 
        means an agricultural commodity 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, or intergovernmental organization, 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) Intergovernmental organization.--
                    ``(A) In general.--The term `intergovernmental 
                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 `intergovernmental 
                organization' does not include an organization that is 
                primarily an agency or instrumentality of the 
                government of a foreign country.
            ``(9) Private voluntary organization.--
                    ``(A) In general.--The term `private voluntary 
                organization' means a nonprofit, intergovernmental 
                organization that--
                            ``(i) receives--
                                    ``(I) funds from private sources; 
                                and
                                    ``(II) voluntary contributions of 
                                money, staff time, or in-kind support 
                                from the public; and
                            ``(ii) is engaged in or is planning to 
                        engage in nonreligious voluntary, charitable, 
                        or development assistance activities.
                    ``(B) In united states.--The term `private 
                voluntary organization', when used with respect to an 
                organization in the United States, means 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 the Code.
            ``(10) Produced in the united states.--The term `produced 
        in the United States', used with respect to a product of an 
        agricultural commodity, excludes a product of an agricultural 
        commodity that contains 1 or more ingredients that are not 
        produced in the United States if those ingredients are 
        commercially available in the United States at fair and 
        reasonable prices.
            ``(11) 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.
            ``(12) Recipient country.--The term `recipient country' 
        means a developing country covered by a program.

``SEC. 802. FOOD FOR PROGRESS PROGRAM.

    ``(a) In General.--To provide agricultural commodities to support 
the introduction or expansion of free trade enterprises in national 
economies, and to provide food or nutrition assistance, the Secretary 
shall establish the Food for Progress Program under which the Secretary 
may enter into agreements (including multiyear agreements) with--
            ``(1) the governments of emerging democracies;
            ``(2) private voluntary organizations;
            ``(3) nonprofit agricultural organizations and 
        cooperatives;
            ``(4) intergovernmental organizations; and
            ``(5) other private entities.
    ``(b) Considerations.--In determining whether to enter into an 
agreement to establish a program under subsection (a), the Secretary 
shall take into consideration whether a potential recipient country is 
committed to carrying out, or is carrying out, policies that promote--
            ``(1) economic freedom;
            ``(2) private production of food commodities for domestic 
        consumption; and
            ``(3) the creation and expansion of efficient domestic 
        markets for the purchase and sale of those commodities.
    ``(c) 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.
    ``(d) 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 commodities and funds 
provided to the eligible organization under this title.
    ``(e) 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.).
    ``(f) Quality Assurance.--The Secretary shall ensure, to the 
maximum extent practicable, that each eligible organization 
participating in 1 or more programs under this section--
            ``(1) uses eligible commodities made available under this 
        title--
                    ``(A) in an effective manner;
                    ``(B) in the areas of greatest need; and
                    ``(C) in a manner that promotes the purposes of 
                this title;
            ``(2) in using eligible commodities, assesses and takes 
        into account the needs of recipient countries and the target 
        populations of those countries;
            ``(3) to the maximum extent practicable consistent with the 
        purposes of this title, uses the lowest cost means of 
        delivering eligible commodities and providing other assistance 
        authorized under this title;
            ``(4) works with recipient countries and indigenous 
        institutions or groups in recipient countries to design and 
        carry out mutually acceptable programs authorized in subsection 
        (g)(2)(C)(i);
            ``(5) 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;
            ``(6) 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
            ``(7) considers means of improving the operation of the 
        program of the eligible organization.
    ``(g) 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 only 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 a recipient country or 
                countries adjacent to the recipient country, unless, as 
                determined by the Secretary--
                            ``(i) the sale or barter within the 
                        recipient country or adjacent countries is not 
                        practicable; and
                            ``(ii) the sale or barter within countries 
                        other than the recipient country or adjacent 
                        countries 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 reimburse, within a recipient country or 
                other country in the same region, the costs incurred by 
                an eligible organization 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.
    ``(h) 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 commodities that would otherwise be made;
            ``(2) disrupting world prices of agricultural commodities; 
        or
            ``(3) disrupting normal patterns of commercial trade with 
        foreign countries.
    ``(i) 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 
        under this title.
    ``(j) Military Distribution of Assistance.--
            ``(1) In general.--The Secretary shall ensure, to the 
        maximum extent practicable, that agricultural commodities made 
        available under this section are provided without regard to--
                    ``(A) the political affiliation, geographic 
                location, ethnic, tribal, or religious identity of the 
                recipient; or
                    ``(B) any extraneous factors.
            ``(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.
    ``(k) Budget.--The cost of commodities made available under this 
section, and the expenses incurred in connection with the provision of 
those commodities--
            ``(1) 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.); and
            ``(2) may not be considered expenditures for international 
        affairs and finance.
    ``(l) International Education and Nutrition Program.--
            ``(1) In general.--In cooperation with other countries, the 
        Secretary shall establish an initiative within the Food for 
        Progress Program under this title to be known as the 
        `International 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 may enter into agreements with eligible 
        organizations--
                    ``(A) to purchase, acquire, and donate eligible 
                commodities to eligible organizations; and
                    ``(B) to provide technical and nutritional 
                assistance.
            ``(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) 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) 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 initiative established 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.
    ``(m) Commodity Credit Corporation.--
            ``(1) In general.--Subject to paragraphs (4) through (6), 
        the Secretary may use the funds, facilities, and authorities of 
        the Corporation to carry out this title.
            ``(2) Funding.--
                    ``(A) In general.--Subject to paragraph (3), from 
                the funds of the Corporation, the Secretary shall make 
                available to carry out this title $490,000,000 for each 
                of fiscal years 2003 through 2006.
                    ``(B) Authorization of appropriations.--In addition 
                to funds made available under subparagraph (A), there 
                are authorized to be appropriated such sums as are 
                necessary to carry out this title.
            ``(3) International education and nutrition program.--Of 
        the funds made available under paragraph (2), the Secretary may 
        use not more than $300,000,000 for each fiscal year to carry 
        out the initiative established under subsection (l).
            ``(4) 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.
            ``(5) Eligible costs and expenses.--
                    ``(A) In general.--Subject to subparagraph (B), 
                with respect to an eligible commodity made available 
                under this title, 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 transportation and associated 
                        distribution costs incurred in moving the 
                        commodity (including repositioned commodities) 
                        from designated points of entry or ports of 
                        entry abroad to storage and distribution sites;
                            ``(vii) the charges for general average 
                        contributions arising out of the ocean 
                        transport of commodities transferred; and
                            ``(viii) the costs, in addition to costs 
                        authorized by clauses (i) through (vii), 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 
                subparagraph (A)(i), not more than $40,000,000 of funds 
                made available under paragraph (2) may be used to cover 
                costs under this paragraph unless authorized in advance 
                in an appropriation Act.
            ``(6) Payment of administrative costs.--An eligible 
        organization that receives payment for administrative costs 
        through monetization of the eligible commodity under subsection 
        (g)(2) shall not be eligible to receive payment for the same 
        administrative costs through direct payments under paragraph 
        (5)(A)(viii)(I).''.
    (b) Conforming Amendment.--The Food Security Act of 1985 is amended 
by striking section 1110 (7 U.S.C. 1736o).

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) Amendment.--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 agricultural products, 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 agricultural products.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection (a)--
            ``(1) $1,000,000 for each of fiscal years 2003 and 2004; 
        and
            ``(2) $500,000 for each of fiscal years 2005 and 2006.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 331. 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 in 
subsections (a) and (d)(1)(A)(i) by striking ``2002'' each place it 
appears and inserting ``2006''.

SEC. 332. SENSE OF THE SENATE CONCERNING UNILATERAL SANCTIONS.

    It is the sense of the Senate that--
            (1) the current statutory prohibition on the imposition of 
        unilateral sanctions involving agricultural commodities, 
        medicine, and medical devices should apply to all foreign 
        countries, except when--
                    (A) the United States is at war with, or 
                hostilities are imminent with, a particular country;
                    (B) an agricultural commodity, medicine, or medical 
                device can be used for dual purposes; or
                    (C) a particular country sponsors terrorism;
            (2) the International Trade Commission should periodically 
        review and report to the President on each unilateral sanction 
        in effect to determine the cost-effectiveness of the sanction, 
        including--
                    (A) the economic activity that is prohibited, 
                restricted, or conditioned by the unilateral 
                agricultural sanction; and
                    (B) the national interest that would be jeopardized 
                if the unilateral sanction were ended; and
            (3) in response to the report of the International Trade 
        Commission, the President should recommend whether the 
        unilateral sanction should be continued, modified, or repealed.

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 
                as--
                            ``(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;
                                    ``(II) the emerging markets program 
                                under section 1542 (7 U.S.C. 3292); or
                                    ``(III) the Cochran Fellowship 
                                Program under section 1543 (7 U.S.C. 
                                3293); or
                            ``(ii) applied directly to foreign market 
                        development cooperators through the foreign 
                        market development cooperator program under 
                        section 702 of the Agricultural Trade Act of 
                        1978 (7 U.S.C. 5722).
            ``(4) Rapid response.--
                    ``(A) In general.--The Secretary shall assist 
                agricultural exporters of the United States 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 2003 
                through 2006.
            ``(4) Funding.--
                    ``(A) Commodity credit corporation.--The Secretary 
                shall use the funds, facilities, and authorities of the 
                Commodity Credit Corporation to carry out this 
                subsection.
                    ``(B) Funding amount.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall make 
                available to carry out this subsection $15,000,000 for 
                each of fiscal years 2003 through 2006.''.

SEC. 334. 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''.

                      TITLE IV--NUTRITION PROGRAMS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Food Stamp Simplification Act of 
2001''.

                     Subtitle A--Food Stamp Program

SEC. 411. CATEGORICAL ELIGIBILITY FOR RECIPIENTS OF CASH ASSISTANCE.

    Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 2014(a)) is 
amended--
            (1) in the second sentence, by striking ``receives 
        benefits'' and inserting ``receives cash assistance''; and
            (2) in the third sentence, by striking ``receives 
        benefits'' and inserting ``receives cash assistance''.

SEC. 412. DISREGARDING OF INFREQUENT AND UNANTICIPATED INCOME.

    Section 5(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)(2)) 
is amended by striking ``$30'' and inserting ``$100''.

SEC. 413. SIMPLIFIED TREATMENT OF INDIVIDUALS COMPLYING WITH CHILD 
              SUPPORT ORDERS.

    (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: 
``including 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 (7).''; 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 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 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. 414. COORDINATED AND 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), (18) at the option of the State agency, any 
        types of income that the State agency does not consider when 
        determining eligibility for, or the amount of, 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 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, 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. 415. EXCLUSION OF INTEREST AND DIVIDEND INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) (as 
amended by section 414(2)) is amended by inserting before the period at 
the end the following: ``, and (19) any interest or dividend income 
received by a member of the household''.

SEC. 416. ALIGNMENT OF STANDARD DEDUCTION WITH POVERTY LINE.

    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 fiscal year 2002;
                            ``(ii) 8.5 percent for each of fiscal years 
                        2003 through 2005;
                            ``(iii) 9 percent for each of fiscal years 
                        2006 through 2008;
                            ``(iv) 9.5 percent for each of fiscal years 
                        2009 and 2010; and
                            ``(v) 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.''.

SEC. 417. SIMPLIFIED DEPENDENT CARE DEDUCTION.

    Section 5(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(3)) 
is amended by adding at the end the following:
                    ``(C) Standard dependent care allowances.--
                            ``(i) Establishment of allowances.--
                                    ``(I) In general.--In determining 
                                the dependent care deduction under this 
                                paragraph, in lieu of requiring the 
                                household to establish the actual 
                                dependent care costs of the household, 
                                a State agency may use standard 
                                dependent care allowances established 
                                under subclause (II) for each dependent 
                                for whom the household incurs costs for 
                                care.
                                    ``(II) Amendment to state plan.--A 
                                State agency that elects to use 
                                standard dependent care allowances 
                                under subclause (I) shall submit for 
                                approval by the Secretary an amendment 
                                to the State plan of operation under 
                                section 11(d) that--
                                            ``(aa) describes the 
                                        allowances that the State 
                                        agency will use; and
                                            ``(bb) includes supporting 
                                        documentation.
                            ``(ii) Household election.--
                                    ``(I) In general.--Except as 
                                provided in clause (iii), a household 
                                may elect to have the dependent care 
                                deduction of the household based on 
                                actual dependent care costs rather that 
                                the allowances established under clause 
                                (i).
                                    ``(II) Frequency.--The Secretary 
                                may by regulation limit the frequency 
                                with which households may make the 
                                election described in subclause (I) or 
                                reverse the election.
                            ``(iii) Mandatory dependent care 
                        allowances.--The State agency may make the use 
                        of standard dependent care allowances 
                        established under clause (i) mandatory for all 
                        households that incur dependent care costs.''.

SEC. 418. ALTERNATIVE PROCEDURES TO ASSIST ELDERLY AND DISABLED 
              PERSONS.

    Section 5(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(6)) 
is amended--
            (1) in subparagraph (A), by striking ``A household'' and 
        inserting ``At the option of the State agency, a household'';
            (2) in subparagraph (B)(i), by striking ``shall offer an 
        eligible household under subparagraph (A)'' and inserting 
        ``that elects to offer a deduction under subparagraph (A) shall 
        offer an eligible household''; and
            (3) by adding at the end the following:
                    ``(C) Alternative procedures to assist elderly and 
                disabled members with medical expenses.--Any State 
                agency that elects not to offer the deduction under 
                this paragraph shall establish procedures to treat an 
                application from an elderly or disabled member for an 
                allotment under this Act as an application for coverage 
                under section 1902(a)(10)(E) of the Social Security Act 
                (42 U.S.C. 1396a(a)(10)(E)) unless the member declines 
                the coverage.''.

SEC. 419. 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. 420. SIMPLIFIED DETERMINATION OF UTILITY COSTS.

    Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as amended 
by section 419(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. 421. SIMPLIFIED 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. 422. 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 421) 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. 423. 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''.

SEC. 424. EXCLUSION OF LICENSED VEHICLES FROM FINANCIAL RESOURCES.

    (a) In General.--Section 5(g)(2) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(g)(2)) is amended--
            (1) in subparagraph (B)--
                    (A) in clause (iii), by adding ``and'' at the end;
                    (B) by striking clause (iv); and
                    (C) by redesignating clause (v) as clause (iv);
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) Excluded vehicles.--The Secretary shall 
                exclude from financial resources any licensed vehicle 
                used for household transportation.''; and
            (3) by striking subparagraph (D).
    (b) Conforming Amendment.--Section 17 of the Food Stamp Act of 1977 
(7 U.S.C. 2026) is amended by striking subsection (h).

SEC. 425. EXCLUSION OF RETIREMENT ACCOUNTS FROM FINANCIAL RESOURCES.

    Section 5(g)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(g)(2)(B)) (as amended by section 424(a)(1)) is amended by striking 
clause (iv) and inserting the following:
                            ``(iv) any savings account (other than a 
                        retirement account (including an individual 
                        account)).''.

SEC. 426. COORDINATED AND 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) amounts in any account in a 
                        financial institution that are readily 
                        available to the household; or
                            ``(iii) 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. 427. 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. 428. SIMPLIFIED REPORTING SYSTEMS.

    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 ``monthly'' and 
        inserting ``periodic''; 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. 429. SIMPLIFIED TIME LIMIT.

    (a) In General.--Section 6(o) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(o)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``36-month'' and inserting ``12-
                month'';
                    (B) by striking ``3'' and inserting ``6''; and
                    (C) in subparagraph (D), by striking ``(4), (5), or 
                (6)'' and inserting ``(4), or (5)'';
            (2) by striking paragraph (5);
            (3) in paragraph (6)(A)(ii)--
                    (A) in subclause (III), by adding ``and'' at the 
                end;
                    (B) in subclause (IV), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subclause (V); and
            (4) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively.
    (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. 430. 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) Protection of the elderly, the disabled, and 
                others having difficulty with 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 contract to operate an electronic benefit 
transfer system that a State agency enters into after the date of 
enactment of this Act.

SEC. 431. COST-NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Section 7(i)(2)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2016(i)(2)(A)) is amended by striking ``system to ensure'' and all that 
follows and inserting ``system;''.

SEC. 432. SIMPLIFIED 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 (A), (B), 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) Authorized delay in issuance.--The State 
                agency may delay issuance 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. 433. 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 
                419(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. 434. SIMPLIFIED APPLICATION PROCEDURES FOR THE ELDERLY AND 
              DISABLED.

    (a) In General.--Section 11(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(i)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``income shall be informed'' and 
                inserting the following: ``income shall be--
                    ``(A) informed'';
                    (B) by striking ``program and be assisted'' and 
                inserting the following: ``program;
                    ``(B) assisted''; and
                    (C) by striking ``office and be certified'' and 
                inserting the following: ``office; and
                    ``(C) certified''; and
            (2) by adding at the end the following:
            ``(3) Dual-purpose applications.--
                    ``(A) In general.--Under regulations promulgated by 
                the Secretary after consultation with the Commissioner 
                of Social Security, a State agency may enter into a 
                memorandum of understanding with the Commissioner 
under which an application for supplemental security income benefits 
under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) 
from a household composed entirely of applicants for or recipients of 
those benefits shall also be considered to be an application for 
benefits under the food stamp program.
                    ``(B) Certification; reporting requirements.--A 
                household covered by a memorandum of understanding 
                under subparagraph (A)--
                            ``(i) shall be certified based exclusively 
                        on information provided to the Commissioner, 
                        including such information as the Secretary 
                        shall require to be collected under the terms 
                        of any memorandum of understanding under this 
                        paragraph; and
                            ``(ii) shall not be subject to any 
                        reporting requirement under section 6(c).
                    ``(C) Exceptions to value of allotment.--The 
                Secretary shall provide by regulation for such 
                exceptions to section 8(a) as are necessary because a 
                household covered by a memorandum of understanding 
                under subparagraph (A) did not complete an application 
                under subsection (e)(2).
                    ``(D) Coverage.--In accordance with standards 
                promulgated by the Secretary, a memorandum of 
                understanding under subparagraph (A) need not cover all 
                classes of applicants and recipients referred to in 
                subparagraph (A).
                    ``(E) Exemption from certain application 
                procedures.--In the case of any member of a household 
                covered by a memorandum of understanding under 
                subparagraph (A), the Commissioner shall not be 
                required to comply with--
                            ``(i) subparagraph (B) or (C) of paragraph 
                        (1); or
                            ``(ii) subsection (j)(1)(B).
                    ``(F) Right to apply under regular program.--The 
                Secretary shall ensure that each household covered by a 
                memorandum of understanding under subparagraph (A) is 
                informed that the household may--
                            ``(i)(I) submit an application under 
                        subsection (e)(2); and
                            ``(II) have the eligibility and value of 
                        the allotment of the household under the food 
                        stamp program determined without regard to this 
                        paragraph; or
                            ``(ii) decline to participate in the food 
                        stamp program.
                    ``(G) Transition provision.--Notwithstanding the 
                requirement for the promulgation of regulations under 
                subparagraph (A), the Secretary may approve a request 
                from a State agency to enter into a memorandum of 
                understanding in accordance with this paragraph during 
                the period--
                            ``(i) beginning on the date of enactment of 
                        this paragraph; and
                            ``(ii) ending on the earlier of--
                                    ``(I) the date of promulgation of 
                                the regulations; or
                                    ``(II) the date that is 3 years 
                                after the date of enactment of this 
                                paragraph.''.
    (b) Conforming Amendments.--Section 11(j)(1) of the Food Stamp Act 
of 1977 (7 U.S.C. 2020(j)(1)) is amended--
            (1) by striking ``shall be informed'' and inserting the 
        following: ``shall be--
            ``(A) informed''; and
            (2) by striking ``program and informed'' and inserting the 
        following: ``program; and
            ``(B) informed''.

SEC. 435. 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 to receive an 
                authorization card; 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. 436. QUALITY CONTROL.

    (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), by striking ``Under such system'' and 
        all that follows and inserting the following: ``The system 
        referred to in the preceding sentence shall have the following 
        elements:
                    ``(A) 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.
                    ``(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.
                            ``(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 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.'';
            (2) in paragraph (2)(A), by inserting before the semicolon 
        the following: ``, as adjusted downward as appropriate under 
        paragraph (10)'';
            (3) in the first sentence of paragraph (4), by striking ``, 
        enhanced administrative funding,'' and all that follows and 
        inserting ``under this subsection, high performance bonus 
        payment under paragraph (11), or claim for payment error under 
        paragraph (1).'';
            (4) in the first sentence of paragraph (5), by striking 
        ``to establish'' and all that follows and inserting the 
        following: ``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 any high performance bonus payment 
        of the State agency under paragraph (11) or claim under 
        paragraph (1).'';
            (5) in the first sentence of paragraph (6), by striking 
        ``incentive payments or claims pursuant to paragraphs (1)(A) 
        and (1)(C),'' and inserting ``claims under paragraph (1),''; 
        and
            (6) by adding at the end the following:
            ``(10) Adjustments of payment error rate.--
                    ``(A) In general.--
                            ``(i) Fiscal year 2002.--Subject to clause 
                        (ii), for fiscal year 2002, in applying 
                        paragraph (1), the Secretary shall adjust the 
                        payment error rate determined under paragraph 
                        (2)(A) as necessary to eliminate any increases 
                        in errors that result from the State agency's 
                        serving a higher percentage of households with 
                        earned income, households with 1 or more 
                        members who are not United States citizens, or 
both, than the lesser of, as the case may be--
                                    ``(I) the percentage of households 
                                of the corresponding type that receive 
                                food stamps nationally; or
                                    ``(II) the percentage of--
                                            ``(aa) households with 
                                        earned income that received 
                                        food stamps in the State in 
                                        fiscal year 1992; or
                                            ``(bb) households with 
                                        members who are not United 
                                        States citizens that received 
                                        food stamps in the State in 
                                        fiscal year 1998.
                            ``(ii) Expanded applicability to state 
                        agencies subject to sanctions.--In the case of 
                        a State agency subject to sanctions for fiscal 
                        year 2001 or any fiscal year thereafter under 
                        paragraph (1), the adjustments described in 
                        clause (i) shall apply to the State agency for 
                        the fiscal year.
                    ``(B) Continuation or modification of 
                adjustments.--For fiscal year 2003 and each fiscal year 
                thereafter, the Secretary may determine whether the 
                continuation or modification of the adjustments 
                described in subparagraph (A)(i) or the substitution of 
                other adjustments is most consistent with achieving the 
                purposes of this Act.''.
    (b) Conforming Amendment.--Section 22(h) of the Food Stamp Act of 
1977 (7 U.S.C. 2031(h)) is amended by striking the last sentence.
    (c) 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. 437. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE MEASURES.

    Section 16(c)(8)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(c)(8)(C)) is amended by striking ``30 days thereafter'' and 
inserting ``the first June 30 after the end of the fiscal year referred 
to in subparagraph (A)''.

SEC. 438. 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 436(a)(6)) is amended--
            (1) in the first sentence of paragraph (1), by striking 
        ``enhanced administrative funding to States with the lowest 
        error rates.'' and inserting ``bonus payments to States that 
        demonstrate high levels of performance.''; and
            (2) by adding at the end the following:
            ``(11) High performance bonus payments.--
                    ``(A) In general.--For each fiscal year, the 
                Secretary shall--
                            ``(i) measure the performance of each State 
                        agency with respect to each of the performance 
                        measures specified in subparagraph (B); and
                            ``(ii) subject to subparagraph (D), make 
                        high performance bonus payments to the State 
                        agencies with the highest achievement with 
                        respect to those performance measures.
                    ``(B) Performance measures.--The performance 
                measures specified in this subparagraph are--
                            ``(i)(I) the greatest dollar amount of 
                        total claims collected in the fiscal year as a 
                        proportion of the overpayment dollar amount in 
                        the previous fiscal year; and
                            ``(II) the greatest percentage point 
                        improvement under clause (i)(I) from the 
                        previous fiscal year to the fiscal year;
                            ``(ii) the greatest improvement from the 
                        previous fiscal year to the fiscal year in the 
                        ratio, expressed as a percentage, that--
                                    ``(I) the number of households in 
                                the State that--
                                            ``(aa) 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));
                                            ``(bb) are eligible for 
                                        food stamp benefits; and
                                            ``(cc) receive food stamps 
                                        benefits; bears to
                                    ``(II) the number of households in 
                                the State that--
                                            ``(aa) have incomes less 
                                        than 130 percent of the poverty 
                                        line (as so defined); and
                                            ``(bb) are eligible for 
                                        food stamp benefits;
                            ``(iii) the lowest overpayment error rate;
                            ``(iv) the greatest percentage point 
                        improvement from the previous fiscal year to 
                        the fiscal year in the overpayment error rate;
                            ``(v) the lowest negative error rate;
                            ``(vi) the greatest percentage point 
                        improvement from the previous year to the 
                        fiscal year in the negative error rate;
                            ``(vii) the lowest underpayment error rate;
                            ``(viii) the greatest percentage point 
                        improvement from the previous year to the 
                        fiscal year in the underpayment error rate;
                            ``(ix) the greatest percentage of new 
                        applications processed within the deadlines 
                        established under paragraphs (3) and (9) of 
                        section 11(e); and
                            ``(x) the least average period of time 
                        needed to process applications under paragraphs 
                        (3) and (9) of section 11(e).
                    ``(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)(5)(A).
                            ``(ii) Amount of payments.--
                                    ``(I) In general.--For each fiscal 
                                year, the Secretary shall--
                                            ``(aa) make 1 high 
                                        performance bonus payment of 
                                        $10,000,000 for each of the 10 
                                        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) Payment for performance 
                                measure concerning claims collected.--
                                For each fiscal year, the Secretary 
                                shall allocate the high performance 
                                bonus payment made for the performance 
                                measure under subparagraph (B)(i) among 
                                the 20 State agencies with the highest 
                                performance in the performance measure 
in the ratio that--
                                            ``(aa) the caseload of each 
                                        such State agency; bears to
                                            ``(bb) the caseloads of all 
                                        such State agencies.
                                    ``(III) Payments for other 
                                performance measures.--For each fiscal 
                                year, the Secretary shall allocate the 
                                high performance bonus payment made for 
                                the performance measure under each of 
                                clauses (ii) through (x) of 
                                subparagraph (B) among the 10 State 
                                agencies with the highest performance 
                                in the performance measure in the ratio 
                                that--
                                            ``(aa) the caseload of each 
                                        such State agency; bears to
                                            ``(bb) the caseloads of all 
                                        such State agencies.
                            ``(iii) Determination of highest 
                        performers.--
                                    ``(I) In general.--In determining 
                                the highest performers under clause 
                                (ii), the Secretary shall calculate 
                                applicable percentages to 2 decimal 
                                places.
                                    ``(II) Determination in event of a 
                                tie.--If, under subclause (I), 2 or 
                                more State agencies have the same 
                                percentage with respect to a 
                                performance measure, the Secretary 
                                shall calculate the percentage for the 
                                performance measure to as many decimal 
                                places as are necessary to determine 
                                which State agency has the greatest 
                                percentage.
                    ``(D) Limitations for state agencies subject to 
                sanctions.--If, for any fiscal year, a State agency is 
                subject to a sanction under paragraph (1)--
                            ``(i) the State agency shall not be 
                        eligible for a high performance bonus payment 
                        under clause (iii), (iv), (vii), or (viii) of 
                        subparagraph (B) for the fiscal year; and
                            ``(ii) the State agency shall not receive a 
                        high performance bonus payment for which the 
                        State agency is otherwise eligible under this 
                        paragraph for the fiscal year until the 
                        obligation of the State agency under the 
                        sanction has been satisfied (as determined by 
                        the Secretary).
                    ``(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) shall 
apply to fiscal year 2003 and each fiscal year thereafter.

SEC. 439. SIMPLIFIED FUNDING RULES FOR EMPLOYMENT AND TRAINING 
              PROGRAMS.

    (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) to remain available until 
                        expended--
                                    ``(I) for fiscal year 2002, 
                                $122,000,000;
                                    ``(II) for fiscal year 2003, 
                                $129,000,000;
                                    ``(III) for fiscal year 2004, 
                                $135,000,000;
                                    ``(IV) for fiscal year 2005, 
                                $142,000,000; and
                                    ``(V) for fiscal year 2006, 
                                $149,000,000.'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Allocation.--Funds made available under 
                subparagraph (A) shall be made available to and 
                reallocated among State agencies under a reasonable 
                formula that--
                            ``(i) is determined and adjusted by the 
                        Secretary; and
                            ``(ii) takes into account the number of 
                        individuals who are not exempt from the work 
                        requirement under section 6(o).''; and
            (3) by striking subparagraphs (E) through (G).
    (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 
``$25 per month'' and inserting ``an amount not less than $25 per 
month''.
    (d) Federal Reimbursement.--Section 16(h)(3) of the Food Stamp Act 
of 1977 (7 U.S.C. 2025(h)(3)) is amended by striking ``$25'' and 
inserting ``the limit established by the State agency under section 
6(d)(4)(I)(i)(I)''.

SEC. 440. REAUTHORIZATION OF FOOD STAMP PROGRAM.

    (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. 441. 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'' and inserting 
        ``make'';
            (2) by striking ``agencies,'' and inserting ``agencies 
        under this section to''; and
            (3) 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. 442. EXEMPTION OF WAIVERS FROM COST-NEUTRALITY REQUIREMENT.

    Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)) is amended by adding at the end the following:
                    ``(E) Cost neutrality.--
                            ``(i) Requirements for waivers.--
                                    ``(I) Estimation of costs and 
                                savings of waivers.--Before approving a 
                                waiver for any demonstration project 
                                proposed under this subsection, the 
                                Secretary shall estimate the costs or 
                                savings likely to result from the 
                                waiver.
                                    ``(II) Approval of waivers.--The 
                                Secretary shall not approve any waiver 
                                that the Secretary estimates will 
                                increase costs to the Federal 
                                Government unless--
                                            ``(aa) exigent 
                                        circumstances require the 
                                        approval of the waiver;
                                            ``(bb) the increase in 
                                        costs is insignificant; or
                                            ``(cc) the increase in 
                                        costs is necessary for a 
                                        designated research 
                                        demonstration project under 
                                        clause (ii).
                                    ``(III) Multiyear cost 
                                neutrality.--A waiver shall not be 
                                considered to increase costs to the 
                                Federal Government based on the impact 
                                of the waiver in any 1 fiscal year if 
                                the waiver is not expected to increase 
                                costs to the Federal Government over 
                                any 3-fiscal year period that includes 
                                the fiscal year.
                            ``(ii) Exemption from cost-neutrality 
                        requirement for certain projects.--
                                    ``(I) In general.--For each fiscal 
                                year, the Secretary may designate 
                                research demonstration projects that--
                                            ``(aa) have a substantial 
                                        likelihood of producing 
                                        information on important issues 
                                        of food stamp program design or 
                                        operation; and
                                            ``(bb) the Secretary 
                                        estimates are likely to 
                                        increase costs to the Federal 
                                        Government by a total of not 
                                        more than $50,000,000 during 
                                        the period of fiscal years 2002 
                                        through 2006.
                                    ``(II) Exemption.--A project 
                                described in subclause (I) shall be 
                                exempt from clause (i).
                            ``(iii) Offsets in other programs.--In 
                        making determinations of costs to the Federal 
                        Government under this subparagraph, the 
                        Secretary shall estimate and consider savings 
                        to the Federal Government in other programs in 
                        such a manner as the Secretary determines to be 
                        appropriate.
                            ``(iv) No look-back.--The Secretary shall 
                        not be required to adjust any estimate made 
                        under this subparagraph to reflect the actual 
                        costs of a demonstration project as implemented 
                        by a State agency.''.

SEC. 443. PROGRAM SIMPLIFICATION DEMONSTRATION PROJECTS.

    (a) Enhanced Waiver Authority.--Section 17 of the Food Stamp Act of 
1977 (7 U.S.C. 2026) is amended by striking subsection (e) and 
inserting the following:
    ``(e) Program Simplification Demonstration Projects.--
            ``(1) In general.--With the approval of the Secretary, not 
        more than 5 State agencies may carry out demonstration projects 
        to test, for a period of not more than 3 years, promising 
        approaches to simplifying the food stamp program.
            ``(2) Types of demonstration projects.--Each demonstration 
        project under paragraph (1) shall test changes in food stamp 
        program rules in not more than 1 of the following 2 areas:
                    ``(A)(i) Reporting requirements under section 6(c).
                    ``(ii) Verification methods under section 11(e)(3) 
                (including reliance on data from preceding periods that 
                can be obtained or verified electronically).
                    ``(iii) A combination of reporting requirements and 
                verification methods.
                    ``(B) The income standard of eligibility 
                established under section 5(c)(1), deductions under 
                section 5(e), and income budgeting procedures under 
                section 5(f).
            ``(3) Selection of demonstration projects.--
                    ``(A) In general.--The Secretary shall establish a 
                competitive process to select, from all projects 
                proposed by State agencies, the demonstration projects 
                to be carried out under this subsection based on which 
                projects have the greatest likelihood of producing 
                useful information on important issues of food stamp 
                program design or operation, as determined by the 
                Secretary.
                    ``(B) Goals.--In selecting demonstration projects, 
                the Secretary shall seek, at a minimum, to achieve a 
                balance between--
                            ``(i) simplifying the food stamp program;
                            ``(ii) reducing administrative burdens on 
                        State agencies, households, and other 
                        individuals and entities;
                            ``(iii) providing nutrition assistance to 
                        individuals most in need; and
                            ``(iv) improving access to nutrition 
                        assistance.
                    ``(C) Projects not eligible for selection.--The 
                Secretary shall not select any demonstration project 
                under this subsection that the Secretary determines 
                does not have a strong likelihood of producing useful 
                information on important issues of food stamp program 
                design or operation.
                    ``(D) Diversity of approaches and areas.--In 
                selecting demonstration projects to be carried out 
                under this subsection, the Secretary shall seek to 
                include--
                            ``(i) projects that take diverse 
                        approaches;
                            ``(ii) at least 1 project that will operate 
                        in an urban area; and
                            ``(iii) at least 1 project that will 
                        operate in a rural area.
                    ``(E) Maximum aggregate cost of projects.--The 
                estimated aggregate cost of projects selected by the 
                Secretary under this subsection shall not exceed 
                $90,000,000.
            ``(4) Size of area.--Each demonstration project selected 
        under this subsection shall be carried out in an area that 
        contains not more than the greater of--
                    ``(A) one-third of the total households receiving 
                allotments in the State; or
                    ``(B) the minimum number of households needed to 
                measure the effects of the demonstration projects.
            ``(5) Evaluations.--
                    ``(A) In general.--The Secretary shall provide, 
                through contract or other means, for detailed, 
                statistically valid evaluations to be conducted of each 
                demonstration project carried out under this 
                subsection.
                    ``(B) Minimum requirements.--Each evaluation under 
                subparagraph (A)--
                            ``(i) shall include the study of control 
                        groups or areas; and
                            ``(ii) shall analyze, at a minimum, the 
                        effects of the project design on--
                                    ``(I) costs of the food stamp 
                                program;
                                    ``(II) State administrative costs;
                                    ``(III) the integrity of the food 
                                stamp program, including errors as 
                                measured under section 16(c);
                                    ``(IV) participation by households 
                                in need of nutrition assistance; and
                                    ``(V) changes in allotment levels 
                                experienced by--
                                            ``(aa) households of 
                                        various income levels;
                                            ``(bb) households with 
                                        elderly, disabled, and employed 
                                        members;
                                            ``(cc) households with high 
                                        shelter costs relative to the 
                                        incomes of the households; and
                                            ``(dd) households receiving 
                                        subsidized housing, child care, 
                                        or health insurance.
                    ``(C) Funding.--From funds made available to carry 
                out this Act, the Secretary shall reserve not more than 
                $6,000,000 to conduct evaluations under this paragraph.
            ``(6) Report to congress.--Not later than January 1, 2006, 
        the Secretary shall submit to Congress a report on the impact 
        of the demonstration projects carried out under this subsection 
        on the food stamp program, including the effectiveness of the 
        demonstration projects in--
                    ``(A) delivering nutrition assistance to households 
                most at risk; and
                    ``(B) reducing administrative burdens.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B)(iv)(III)(ii) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(ii)) is amended 
by striking ``paragraph'' and inserting ``section''.

SEC. 444. CONSOLIDATED BLOCK GRANTS.

    (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), by inserting ``of Puerto Rico'' 
        after ``Commonwealth'' each place it appears; 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 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) Conforming Amendment.--Section 24 of the Food Stamp Act of 1977 
(7 U.S.C. 2033) is repealed.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2002.

SEC. 445. EXPANDED AVAILABILITY OF COMMODITIES.

    Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is 
amended--
            (1) by striking ``From amounts'' and inserting the 
        following:
            ``(1) In general.--From amounts'';
            (2) by striking ``for each of fiscal years 1997 through 
        2002, the Secretary shall purchase $100,000,000 of'' and 
        inserting ``the Secretary shall use the amount specified in 
        paragraph (2) to purchase''; and
            (3) by adding at the end the following:
            ``(2) Amounts.--The amounts specified in this paragraph 
        are--
                    ``(A) for each of fiscal years 1997 through 2001, 
                $100,000,000; and
                    ``(B) for each of fiscal years 2002 through 2006, 
                $140,000,000.''.

                  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 in subsections (a)(2) and (d)(2) by 
striking ``2002'' each place it appears and inserting ``2006''.
    (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. WORK REQUIREMENT FOR LEGAL IMMIGRANTS.

    (a) 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, in the case of the specified Federal program 
described in paragraph (3)(B), 16)''.
    (b) Conforming Amendments.--
            (1) 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, 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)), 16)''.
            (2) 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.).''.
            (3) 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, in the case of the specified Federal program described in 
        section 402(a)(3)(B), 16)''.

SEC. 453. QUALIFIED ALIENS.

    Section 402(a)(2) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended 
by adding at the end the following:
                    ``(L) Food stamp exception for certain qualified 
                aliens.--With respect to eligibility for benefits for 
                the specified Federal program described in paragraph 
                (3)(B), paragraph (1) shall not apply to any individual 
                who has continuously resided in the United States as a 
                qualified alien for a period of 5 years or more.''.

SEC. 454. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

    (a) Short Title.--This section may be cited as the ``Congressional 
Hunger Fellows Act of 2001''.
    (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. 455. EFFECTIVE DATE.

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

    (a) In General.--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.

    ``Not later than October 1, 2002, the Secretary may initiate 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) Regulations.--The promulgation of the regulations and 
administration of the amendment made by subsection (a) 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'').

                      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. LOANS FOR TRIBAL FARM OPERATIONS.

    (a) Guarantee Amount.--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 Native American 
        farmer or rancher 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) Waiver for loans for tribal operations.--The 
        Secretary shall waive the limitation under paragraph (1)(C) for 
        a direct loan made under this subtitle to a Native American 
        farmer or rancher 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.''.

SEC. 513. REFINANCING OF OTHER DEBT.

    Section 312(a)(9)(B)(ii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1942(a)(9)(B)(ii)) is amended by striking 
``debt'' and inserting ``nondelinquent debt''.

                 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 offer to sell or 
                grant an easement, restriction, development right, or 
                similar legal right to real property 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 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 
                agreement as determined by the Secretary in accordance 
                with this section, 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) with the approval of the Secretary, 
                        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 (iv), 
                        the Secretary may accept an agricultural use 
                        protection and conservation easement from the 
                        borrower for all or part of the real security 
                        property subject to the shared appreciation 
                        agreement in lieu of payment of the recapture 
                        amount.
                            ``(ii) Valuation.--The Secretary shall 
                        reduce the amount of the recapture payment by 
                        the amount that is equal to the value of the 
                        easement.
                            ``(iii) Term.--The term of an easement 
                        accepted by the Secretary under this 
                        subparagraph shall be not less than 20 years.
                            ``(iv) 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.
                            ``(v) Replacement of method of satisfying 
                        obligation.--With the approval of the 
                        Secretary, 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 not 
apply to a shared appreciation agreement that terminated before the 
effective date of this title and for which the recapture amount as of 
the effective date of this title--
            (1) has been paid in full by the borrower; or
            (2) is past due.

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. 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. EFFECT OF AMENDMENTS.

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

SEC. 554. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (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 541 take effect on the 
date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Rural America Empowerment and Development

SEC. 601. 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 pre-application 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) Payment.--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 Account such sums as are necessary to carry out 
        this section.
            (2) Entitlement.--The Secretary of Agriculture--
                    (A) shall be entitled to receive the funds 
                transferred to the Account under paragraph (1);
                    (B) shall accept the funds; and
                    (C) shall use the funds to carry out this section.
            (3) Availability of funds.--Funds provided under this 
        subsection shall remain available for obligation until 
        expended.
    (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) business and industry guaranteed loans 
                authorized under section 310B(a)(1) of that Act (7 
                U.S.C. 1932(a)(1)); and
                    (F) 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. 602. BROADBAND ACCESS FOR RURAL AMERICA.

    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. DEFINITIONS.

    ``In this title:
            ``(1) Broadband service.--The term `broadband service' 
        means telecommunications service (including service provided 
        over copper wire, fiber, wireless, cable, or satellite) capable 
        of delivering large quantities of data to and from a customer 
        at the greater of--
                    ``(A) a minimum speed of 200 kilobits per second; 
                or
                    ``(B) an alternative minimum speed considered by 
                the Federal Communications Commission as broadband.
            ``(2) Eligible entity.--The term `eligible entity' means 1 
        or more of the following entities capable of providing, or 
        proposing to provide, broadband service in a rural area:
                    ``(A) An institution of higher education.
                    ``(B) A cooperative.
                    ``(C) A corporation.
                    ``(D) An Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450b)).
                    ``(E) A limited dividend or mutual association that 
                is incorporated or is a limited liability company.
                    ``(F) A nonprofit organization.
                    ``(G) A State or local government.
                    ``(H) Other public entity.
            ``(3) Rural area.--The term `rural area' means any area of 
        a State that--
                    ``(A) is outside a metropolitan statistical area 
                designated by the Director of the Office of Management 
                and Budget; and
                    ``(B) is not included within the boundaries of any 
                incorporated or unincorporated city, village, or 
                borough having a population in excess of 25,000 
                inhabitants.
            ``(4) State.--The term `State' means any of the States, the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Federated 
        States of Micronesia, the Republic of the Marshall Islands, the 
        Republic of Palau, and the Virgin Islands of the United States.

``SEC. 602. LOANS.

    ``(a) In General.--To the extent qualified applications are 
available for the loans, the Secretary may make loans to eligible 
entities to provide or improve broadband services in rural areas where 
the Secretary determines the services are not adequate.
    ``(b) Interest Rate.--The interest rate charged for a loan under 
this section shall--
            ``(1) be determined by the Secretary; and
            ``(2) reflect the current cost of funds to the Department 
        of the Treasury for obligations of comparable maturity to the 
        remaining term of the loan.
    ``(c) Repayment.--No loan may be made under this section unless the 
Secretary--
            ``(1) is reasonably certain that the borrower will be able 
        to repay the loan; and
            ``(2) determines that the borrower has provided security 
        for the loan that is adequate to assure repayment of the loan.
    ``(d) Loan Terms.--
            ``(1) In general.--The Secretary shall prescribe the terms 
        and conditions for loans made under this section.
            ``(2) Length of loans.--The term of a loan shall not exceed 
        the useful life of the assets, as a whole, financed by the 
        loan.

``SEC. 603. GRANTS.

    ``(a) In General.--To the extent qualified applications are 
available for the loans, the Secretary may make grants to eligible 
entities to provide or improve broadband services in remote rural areas 
that the Secretary determines are not receiving broadband services.
    ``(b) Duration.--To be eligible to obtain a grant under this 
section, an applicant for the grant shall demonstrate to the Secretary 
that the project financed by the grant will be sustained for a 
reasonable period, as determined by the Secretary.
    ``(c) Restriction.--The Secretary may not make both a loan under 
section 602, and a grant under this section, to finance the same 
project.
    ``(d) Approval of Grant Applications.--In approving applications 
for grants under this section, the Secretary shall consider--
            ``(1) the need for the broadband services to be provided 
        and the benefits from the services;
            ``(2) the economic need of the rural area to be served; and
            ``(3) other factors determined appropriate by the 
        Secretary.

``SEC. 604. PLANNING GRANTS FOR ENHANCING ACCESS TO BROADBAND SERVICE.

    ``(a) In General.--The Secretary may make grants, on a competitive 
basis to States, local governments, and community or regional entities 
engaged in activities and partnerships between public and private 
entities that are designed to develop business plans, to be completed 
in not more than 3 years, for bringing broadband service to rural areas 
in the most appropriate technological manner practicable.
    ``(b) Matching Requirement.--As a condition of receiving a grant 
under this section, a recipient of a grant shall provide a matching 
contribution from non-Federal sources that is equal to the amount of 
the grant.
    ``(c) Administrative Costs.--The Secretary may use not more than 4 
percent of the funds made available for grants for a fiscal year under 
this section for administrative costs incurred by the Secretary in 
carrying out this section.
    ``(d) Buildings and Facilities.--Funds made available for grants 
under this section may not be used for--
            ``(1) the construction of a new building or facility;
            ``(2) the acquisition or improvement of an existing 
        building or facility; or
            ``(3) the leasing of office space.

``SEC. 605. SURVEY OF BROADBAND ACCESS NEEDS.

    ``(a) In General.--Out of appropriations made available to agencies 
in the rural development mission area of the Department of Agriculture, 
the Secretary shall carry out a survey of State economic development 
agencies to determine the broadband service needs of current and 
prospective businesses located in, or prospectively locating to, rural 
areas.
    ``(b) Report.--Not later than 1 year after the date of enactment of 
this title, 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 
survey.
    ``(c) Exemption.--The Secretary shall carry out the survey required 
by this section without regard to chapter 35 of title 44, United States 
Code (commonly known as the `Paperwork Reduction Act of 1995').

``SEC. 606. CONSULTATION.

    ``In carrying out this title, the Secretary is encouraged to 
consult with--
            ``(1) the Federal Communications Commission;
            ``(2) the Secretary of Commerce; and
            ``(3) the National Academy of Sciences.

``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 603. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    Section 231 of the Agriculture Risk Protection Act of 2000 (7 
U.S.C. 1621 note; Public Law 106-224) is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
            (2) by inserting after the section heading the following:
    ``(a) Definition of Value-Added Agricultural Product.--In this 
section, the term `value-added agricultural product' means any 
agricultural commodity or product that has been subject to a greater 
level of processing that--
            ``(1) expands the market for the agricultural commodity or 
        product; and
            ``(2) results in a greater portion of the revenue derived 
        from the processing of the agricultural commodity or product 
        being made available to the initial producer of the 
        agricultural commodity or product.'';
            (3) in subsection (b) (as so redesignated)--
                    (A) in paragraph (1)--
                            (i) by striking ``Of the'' and all that 
                        follows through ``Secretary to'' and inserting 
                        ``The Secretary may''; and
                            (ii) by striking ``value-added agricultural 
                        commodities and products of agricultural 
                        commodities'' and inserting ``value-added 
                        agricultural products''; and
                            (iii) in subparagraph (A), by striking 
                        ``value-added agricultural commodity or product 
                        of an agricultural commodity'' and inserting 
                        ``value-added agricultural product'';
                    (B) in paragraph (3)(A), by striking ``value-added 
                agricultural commodity or product of an agricultural 
                commodity'' and inserting ``value-added agricultural 
                product''; and
                    (C) by adding at the end the following:
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each of fiscal years 2003 through 2006.'';
            (4) in subsection (c)(1) (as so redesignated)--
                    (A) by striking ``subsection (a)(2)'' and inserting 
                ``subsection (b)(2)'';
                    (B) by striking ``subsection (a)'' and inserting 
                ``subsection (b)''; and
                    (C) in subparagraph (A), by striking ``value-added 
                agricultural commodities and products of agricultural 
                commodities'' and inserting ``value-added agricultural 
                products''; and
            (5) in subsection (d) (as so redesignated), by striking 
        ``subsection (a) or (b)'' and inserting ``subsection (b) or 
        (c)''.

SEC. 604. 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 governments, institutions of 
higher education, and nonprofit and for-profit 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.''.

SEC. 605. WHITE HOUSE CONFERENCE ON RURAL AMERICA.

    (a) In General.--The President may call and conduct a White House 
Conference on Rural America (referred to in this section as the 
``Conference'') which shall be held not earlier than November 1, 2002, 
and not later than October 30, 2004.
    (b) Purpose.--The purpose of the Conference shall be to bring 
together the resources of governmental agencies and the private and 
nonprofit sectors to develop policy recommendations and integrative 
strategies for addressing the unique challenges facing rural areas of 
the United States.
    (c) Composition.--
            (1) In general.--The Conference shall be comprised of--
                    (A) representatives of organizations devoted to 
                rural development;
                    (B) members of Congress;
                    (C) representatives of the Department of 
                Agriculture and other Federal agencies;
                    (D) State, local, and tribal elected officials and 
                representatives;
                    (E) representatives of land-grant colleges and 
                universities, State and tribal extension services, and 
                State rural development councils; and
                    (F) individuals with special knowledge of and 
                expertise in rural and community development, 
                cooperative business, agricultural credit, venture 
capital, health care, and rural demography.
            (2) Selection.--Of the participants in the Conference 
        described in paragraph (1)--
                    (A) \1/3\ of the members shall be selected by the 
                President;
                    (B) \1/3\ of the members shall be selected by the 
                Chairman and the ranking member of the Committee of the 
                Committee on Agriculture of the House of 
                Representatives; and
                    (C) \1/3\ of the members shall be selected by the 
                Chairman and the ranking member of the Committee of the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.
            (3) Representation.--In selecting the participants of the 
        Conference, the President and the Chairman of each Committee 
        referred to in paragraph (2) shall ensure, to the maximum 
        extent practicable, that the participants are representative of 
        the ethnic, racial, and linguistic diversity of rural areas of 
        the United States.
    (d) Report.--
            (1) Report to president.--Not later than 120 days after the 
        termination of the Conference, the Conference shall submit to 
        the President a report that contains the findings and 
        recommendations of the Conference.
            (2) Report made public and to congress.--Not later than 90 
        days after receipt by the President, the President shall--
                    (A) make the report public; and
                    (B) transmit to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate a 
                copy of the report and a statement of the President 
                containing recommendations for implementing the report.
            (3) Publication and distribution.--
                    (A) In general.--The Conference may publish and 
                distribute the report described in paragraph (1).
                    (B) Mandatory distribution.--The Conference shall 
                provide a copy of a report published under subparagraph 
                (A), at no cost to--
                            (i) each Federal depository library; and
                            (ii) on request--
                                    (I) each State, tribal, and local 
                                elected official in a rural area of the 
                                United States; and
                                    (II) each State rural development 
                                council.
    (e) Funding.--
            (1) Payment.--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 $2,000,000 to the President to carry out this section.
            (2) Entitlement.--The President--
                    (A) shall be entitled to receive the funds 
                transferred under paragraph (1);
                    (B) shall accept the funds; and
                    (C) shall use the funds to carry out this section.
            (3) Availability of funds.--Funds provided under this 
        subsection shall remain available for obligation until 
        expended.

SEC. 606. BIOENERGY AND BIOCHEMICAL PROJECTS.

    (a) Rural Development.--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. 376. BIOENERGY AND BIOCHEMICAL PROJECTS.

    ``In carrying out rural development loan, loan guarantee, and grant 
programs under this title, the Secretary shall provide a priority for 
bioenergy and biochemical projects.''.
    (b) Rural Utilities.--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. BIOENERGY AND BIOCHEMICAL PROJECTS.

    ``In carrying out rural electric loan, loan guarantee, and grant 
programs under this Act, the Secretary shall provide a priority for 
bioenergy and biochemical projects.''.

           Subtitle B--National Rural Development Partnership

SEC. 611. SHORT TITLE.

    This subtitle may be cited as the ``National Rural Development 
Partnership Act of 2001''.

SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Subtitle E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009 et seq.) is amended by adding at the end the following:

``SEC. 381P. 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 established by 
        subsection (b).
            ``(4) Rural area.--The term `rural area' means--
                    ``(A) all the territory of a State that is not 
                within the boundary of any standard metropolitan 
                statistical area designated by the Director of the 
                Office of Management and Budget;
                    ``(B) all territory within any standard 
                metropolitan statistical area described in subparagraph 
                (A) 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; and
                    ``(C) such areas as a State rural development 
                council may identify as rural.
            ``(5) 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) 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; and
                    ``(G) develop and facilitate strategies to reduce 
                or eliminate administrative and regulatory impediments.
            ``(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) facilitate the formulation of local needs 
                assessments for the rural areas of the State and 
                participate in the development of criteria for the 
                distribution of Federal funds to the rural areas of the 
                State;
                    ``(F) 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;
                    ``(G) 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;
                    ``(H) 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 (G); and
                    ``(I)(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)(H); 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) In general.--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.
                    ``(B) Agency.--The agency with rural 
                responsibilities shall provide to the State rural 
                development council a written response to the comments 
                or recommendations.
            ``(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.--Subject to subparagraph (B), a 
                Federal employee may participate in a State rural 
                development council.
                    ``(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.
            ``(8) Performance evaluations.--In conducting a performance 
        evaluation of an employee of an agency with rural 
        responsibilities, the agency may consider any comments 
        submitted by a State rural development council.
    ``(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) Funding formula.--In the case of general 
                financial support provided by the Federal Government to 
                all State rural development councils, such support 
                shall be, to the maximum extent practicable, uniform in 
                amount.
            ``(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)(3), 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.
    ``(g) Matching Requirements for State Rural Development Councils.--
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 determined by the Secretary that is 
not less than 33 percent of the amount of Federal funds received under 
an agreement under subsection (d)(1).
    ``(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 in the first sentence by striking 
``$590,000,000'' and inserting ``$1,500,000,000''.

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 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) 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. RURAL DEVELOPMENT ASSISTANCE 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) Rural development assistance organizations.--
                    ``(A) Definition of rural area.--In this paragraph, 
                the term `rural area' has the meaning given the term in 
                section 381P.
                    ``(B) Grants.--The Secretary shall provide grants 
                to certified organizations to pay the Federal share of 
                the cost of providing technical assistance in 1 or more 
                rural development fields to eligible entities.
                    ``(C) 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 a 
                        list of certified organizations available to 
                        the public.
                    ``(D) Priority.--In determining which certified 
                organizations will receive a grant under this 
                paragraph, the Secretary shall provide a priority to a 
                certified 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 United States; and
                            ``(ii) has a history of providing 
                        substantive assistance to local governments and 
                        economic development organizations.
                    ``(E) Eligible entities.--To receive technical 
                assistance from a certified organization under this 
                paragraph, an entity shall--
                            ``(i) be--
                                    ``(I) a cooperative;
                                    ``(II) an Indian tribe (as defined 
                                in section 4 of the Indian Self-
                                Determination and Education Assistance 
                                Act (25 U.S.C. 450b));
                                    ``(III) a local government;
                                    ``(IV) an economic development 
                                organization; and
                                    ``(V) a business; and
                            ``(ii) serve a population, at least 25 
                        percent of which is located in a rural area.
                    ``(F) Uses of grants.--A certified organization 
                shall use a grant provided under this paragraph to 
                improve the capability of an eligible entity to assist 
                communities in rural areas--
                            ``(i) to develop and implement economic 
                        development strategies;
                            ``(ii) to perform analyses of 
                        infrastructure needs; and
                            ``(iii) to provide assistance to local 
                        governments and individuals concerning the 
                        availability of economic assistance from any 
                        source.
                    ``(G) Maximum amount of grants.--The amount of a 
                grant provided to a certified organization under this 
                paragraph shall not exceed $100,000.
                    ``(H) Federal share.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Federal share of a grant 
                        provided under this paragraph shall be not more 
                        than 75 percent of the cost incurred by a 
                        certified organization to provide technical 
                        assistance to an eligible entity.
                            ``(ii) Reduction or waiver of non-federal 
                        share.--In response to information provided by 
                        a certified organization, the Secretary may 
                        reduce or waive the non-Federal share required 
                        under this paragraph for reasons of hardship or 
                        to further the purposes of this paragraph.
                    ``(I) 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. 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. 626. 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. 627. 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. 628. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    Section 310B(e)(9) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(e)(9)) is amended by striking ``2002'' and inserting 
``2006''.

SEC. 629. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

    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) Value-Added Intermediary Relending Program.--
            ``(1) In general.--In accordance with this subsection, the 
        Secretary shall make loans under 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 shall 
        be 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.''.

SEC. 630. 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 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. 631. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

    Section 333A(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1983a(g)) (as amended by section 526) is amended by striking 
``(g)(1)'' and all that follows through the end of paragraph (1) 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.''.

SEC. 632. 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 606(a)) is amended by 
adding at the end the following:

``SEC. 377. 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.--The Federal share of 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. 633. PROGRAMS FOR RURAL SENIORS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 632) is amended by adding 
at the end the following:

``SEC. 378. PROGRAMS FOR RURAL SENIORS.

    ``(a) Interagency Coordinating Committee.--
            ``(1) In general.--The Secretary shall establish an 
        interagency coordinating committee (referred to in this 
        subsection as the `Committee') to examine the special problems 
        of rural seniors.
            ``(2) Membership.--The Committee shall be comprised of--
                    ``(A) the Undersecretary of Agriculture for Rural 
                Development, who shall serve as chairperson of the 
                Committee;
                    ``(B) 2 representatives of the Secretary of Health 
                and Human Services, of whom--
                            ``(i) 1 shall have expertise in the field 
                        of health care; and
                            ``(ii) 1 shall have expertise in the field 
                        of programs under the Older Americans Act of 
                        1965 (42 U.S.C. 3001 et seq.);
                    ``(C) 1 representative of the Secretary of Housing 
                and Urban Development;
                    ``(D) 1 representative of the Secretary of 
                Transportation; and
                    ``(E) representatives of such other Federal 
                agencies as the Secretary may designate.
            ``(3) Duties.--The Committee shall--
                    ``(A) study health care, transportation, 
                technology, housing, accessibility, and other areas of 
                need of rural seniors;
                    ``(B) identify successful examples of senior care 
                programs in rural communities that could serve as 
                models for other rural communities; and
                    ``(C) not later than 1 year after the date of 
                enactment of this section, submit to the Secretary 
                recommendations for administrative and legislative 
                action.
    ``(b) Grants.--
            ``(1) In general.--The Secretary, acting through the 
        Administrator of the Rural Housing Service, shall make grants 
        to nonprofit organizations to pay the Federal share of the cost 
        of programs that demonstrate creativity in promoting wellness, 
        affordable housing, technology adaptation, and transportation, 
        for seniors.
            ``(2) Federal share.--The Federal share shall be 50 
        percent.
            ``(3) Leveraging.--In selecting programs to receive grants 
        under paragraph (1), the Secretary shall give priority to 
        proposals that leverage resources to meet multiple rural 
        community goals.
    ``(c) Funding.--
            ``(1) Interagency coordinating committee.--Funds available 
        to any Federal agency may be used to carry out interagency 
        activities under subsection (a).
            ``(2) Grants.--There is authorized to be appropriated to 
        carry out subsection (b) $10,000,000 for each of fiscal years 
        2003 through 2006.''.

SEC. 634. RURAL COMMUNITY ADVANCEMENT PROGRAM.

    (a) Rural Community Advancement Program Account.--Section 381E of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009d) is 
amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 381E. RURAL COMMUNITY ADVANCEMENT PROGRAM ACCOUNT.'';

            (2) by striking subsection (a) and inserting the following:
    ``(a) Establishment.--There is established in the Treasury of the 
United States a program account which shall be known as the Rural 
Community Advancement Program Account (in this subtitle referred to as 
the `Program Account').'';
            (3) in subsection (b)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4);
            (4) by striking ``Trust Fund'' each place it appears and 
        inserting ``Program Account'';
            (5) by striking subsection (e) and inserting the following:
    ``(e) Reservations in Accounts.--
            ``(1) Reservation.--Of the amount made available to carry 
        out the functions described in subsection (d)(1) for a fiscal 
        year--
                    ``(A) 15 percent of the amount shall be reserved 
                for carrying out projects that benefit senior citizens; 
                and
                    ``(B) 10 percent of the amount shall be reserved 
                for projects that increase the availability of child 
                day care facilities.
            ``(2) Release.--Funds reserved under this subsection for a 
        fiscal year shall be reserved only until April 1 of the fiscal 
        year.''; and
            (6) by striking subsection (h).
    (b) Transfers of Funds.--Section 381F of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009e) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Transfer Authority.--
            ``(1) General authority.--During any fiscal year, the State 
        director of any State, subject to the approval of the 
        Secretary, may transfer from each account specified in section 
        381E(b) a total of not more than 25 percent of the amount in 
        the account that is initially allocated by the Secretary for 
        the State for the fiscal year to any other account in which 
        amounts are allocated for the State for the fiscal year.
            ``(2) Incentive authority.--The percentage of funds 
        authorized to be transferred under paragraph (1) shall be 
        increased to 35 percent for a State if the State director 
        demonstrates to the satisfaction of the Secretary that local 
        community and tribal development directors were included in the 
        preparation of the strategic plan required under section 381D.
            ``(3) Limitation.--A State director shall not use the 
        transfer authorities under this subsection to increase the 
        amount of an account by more than 25 percent of the amount 
        allocated to the State for that account for a fiscal year.'';
            (2) by striking subsection (b);
            (3) by redesignating subsection (c) as subsection (b); and
            (4) in subsection (b) (as redesignated by paragraph (3))--
                    (A) by striking ``Exceptions.--Subsections (a) and 
                (b)'' and inserting ``Exception for Lack of 
                Applications.--Subsection (a)''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``(A)''; and
                                    (II) by striking ``; or'' and 
                                inserting a period; and
                            (ii) by striking subparagraph (B).
    (c) Grants to States; Guarantee and Commitment to Guarantee 
Loans.--Subtitle E of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2009 et seq.) is amended--
            (1) by striking sections 381G and 381H (7 U.S.C. 2009f, 
        2009g); and
            (2) by redesignating sections 381I through 381O (7 U.S.C. 
        2009h through 2009n) and section 381P (as added by section 612 
        of this Act) as sections 381G through 381N, respectively.
    (d) Rural Venture Capital Demonstration Program.--Section 381N of 
the Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(2)) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``From amounts in 
                the national reserve account of the Trust Fund, the'' 
                and inserting ``The''; and
                    (B) in paragraph (3), by striking ``2002'' and 
                inserting ``2006''; and
            (2) by adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (e) Report.--Not later than 18 months 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 implementation of 
the amendments made by this section.

SEC. 635. DELTA REGIONAL AUTHORITY.

    (a) 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''.
    (b) 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''.

SEC. 636. SEARCH GRANTS FOR SMALL COMMUNITIES.

    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--SEARCH Grants for Small Communities

``SEC. 383A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Council.--The term `council' means an independent 
        citizens' council established by section 383B(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 383B(e)(3).
            ``(5) Small community.--The term `small community' means an 
        incorporated or unincorporated rural community having a 
        population of not more than 2,500 individuals.
            ``(6) State.--The term `State' has the meaning given the 
        term in section 381A.

``SEC. 383B. 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) and subsection 
                (d)(2)(C), 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; and
                            ``(ii) reside in a small community 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.--An agent, employee, 
                or official 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.
            ``(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 (b)(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 (b)(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. 383C. 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. 383D. FUNDING.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out section 383B(c) $51,000,000, of which not to 
exceed $1,000,000 shall be used to make grants under section 
383B(c)(3).
    ``(b) Actual Appropriation.--If funds to carry out section 383B(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 383B(b), the 
funds that would have been made available to the State under section 
383B(c) on submission by the State of a successful application under 
section 383B(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 383B(c)).''.

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

SEC. 641. 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. 642. 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. 651. 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 may 
guarantee payments on bonds or notes issued by cooperative lenders if 
the proceeds of the bonds or notes are used for electrification or 
telephone purposes eligible for assistance under this Act.
    ``(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 amount of such guaranteed bonds or 
        notes outstanding of the lender would exceed the 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; or
                    ``(B) the bond or note issued by the lender is not 
                of reasonable and sufficient quality.
            ``(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) approved by the Secretary after the 
                        date of enactment of this section;
                            ``(ii) made by the lender for 
                        electrification or telephone purposes that are 
                        eligible for assistance under this Act; and
                            ``(iii) made concurrently with a loan 
                        approved by the Secretary under this Act for 
                        such a purpose.
            ``(5) Total amount.--The total amount of guarantees 
        outstanding under this section at any time shall not exceed 
        $500,000,000.
    ``(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 a fee paid for the guarantee 
        of a bond or note under this section shall be equal to 12.5 
        basis points of the amount of the unpaid principal of the loan 
        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 establish a limit on the number 
        of guarantees issued under this section.
            ``(3) Department opinion.--On the 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.--There are authorized to be 
appropriated such sums as are necessary to cover the cost of providing 
guarantees of bonds and notes under this section.
    ``(f) Termination.--The authority provided under this section shall 
terminate on September 30, 2006.''.
    (b) Administration of Cushion of Credit Payments Program.--Section 
313(b)(2)(B) of the Rural Electrification Act of 1936 (7 U.S.C. 
940c)(b)(2)(B)) is amended by inserting ``, acting through the Rural 
Utilities Service,'' after ``Secretary''.
    (c) 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. 652. 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.''.

                       Subtitle F--Miscellaneous

SEC. 661. SENATE CONFIRMATION REQUIREMENT FOR RURAL UTILITIES SERVICE 
              ADMINISTRATOR.

    (a) Repeal.--Section 232 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6942(b)) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsection (c) as subsection (b).
    (b) Succession.--Any official who is serving as Administrator of 
the Rural Utilities Service on the effective date of this section and 
who was appointed by the President, by and with the advice and consent 
of the Senate--
            (1) may be considered to be serving in the position of 
        Administrator of the Rural Utilities Service as established by 
        the Secretary; and
            (2) shall be not be required to be reappointed by the 
        Secretary to that position by reason of the enactment of this 
        section.

                       Subtitle G--Effective Date

SEC. 671. EFFECTIVE DATE.

    This title and the amendments made by this title take effect on 
October 1, 2002.

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 the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Federated 
        States of Micronesia, the Republic of the Marshall Islands, the 
        Republic of Palau, and 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 any of the States, 
        the District of Columbia, and 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 the Federated States of 
Micronesia, the Republic of the Marshall Islands, or 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. POLICY RESEARCH CENTERS.

    Section 1419A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 705. 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. 706. 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. 707. 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. 708. 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. 709. 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 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.--The limitation on indirect costs contained in 
subsection (a) shall not apply to a grant awarded competitively under 
section 9 of the Small Business Act (15 U.S.C. 638).''.

SEC. 710. 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 Grant.--The amount of a grant made to an eligible 
institution under this section shall 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 $10,000,000 for each of fiscal 
years 2003 through 2006.''.

SEC. 711. 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. 712. 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 2003 through 2006.''.

SEC. 713. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

    Section 1465 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (91 Stat. 1018) is amended to read as 
follows:

``SEC. 1465. 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 fiscal years 2003 through 2007.
    ``(b) Use of Funds.--Using any authority available to the 
Secretary, the Secretary shall use funds made available under this 
section to carry out agricultural research, education, and extension 
activities necessary--
            ``(1) to reduce the vulnerability of the United States food 
        and agricultural system to chemical or biological attack;
            ``(2) to counter any such chemical or biological attack; or
            ``(3) to respond to any such chemical or biological 
        attack.''.

SEC. 714. 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. 715. 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. 716. 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. 717. 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. 718. 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''.

   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. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2002'' and 
inserting ``2006''.

SEC. 733. 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. 734. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925b(e)) is amended by striking ``2002'' and 
inserting ``2006''.

SEC. 735. 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. 736. 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(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621(b)) is amended--
            (1) by striking ``In general.--'' and inserting ``In 
        general.--
                    ``(A) Transfers for fiscal years 1998 through 
                2001.--'';
            (2) by striking ``2002'' and inserting ``2001''; and
            (3) by adding at the end the following:
                    ``(B) Transfers for fiscal years 2003 through 
                2006.--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 $360,000,000 to the 
                Account.''.

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(i)(1) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is amended 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. 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''.

                     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.--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, in 
                the previous fiscal year, must have expended on 
                multistate activities an amount equivalent to not less 
                than 25 percent of the funds paid to the State under 
subsections (b) and (c) for the previous 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 previous 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, infeasibility, 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.--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, in the previous fiscal year, must have expended 
                on activities that integrate cooperative research and 
                extension (referred to in this section as `integrated 
                activities') 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 previous 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, infeasibility, 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) 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 the second sentence; and
            (2) in the third sentence, by striking ``Beginning'' 
        through ``6 per centum'' and inserting ``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''.
    (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 Agriculture 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 CENTENNIAL CENTERS.

    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''.

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 previous 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

SEC. 771. 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.) is amended by adding at the end the 
following:

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

``SEC. 1484. 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. 772. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION FORMULA 
              FUNDS FOR INSULAR AREA LAND-GRANT INSTITUTIONS.

    (a) Experiment Stations.--Section 3(d) of the Hatch Act of 1887 (7 
U.S.C. 361c(d)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) Exception for insular areas.--
                    ``(A) In general.--Effective beginning for fiscal 
                year 2003, in lieu of the matching funds requirement of 
                paragraph (1), the insular areas of the Commonwealth of 
                Puerto Rico, Guam, and the Virgin Islands of the United 
                States shall provide matching funds from non-Federal 
                sources in an amount equal to not less than 50 percent 
                of the formula funds distributed by the Secretary to 
                each of the insular areas, respectively, under this 
                section.
                    ``(B) Waivers.--The Secretary may waive the 
                matching fund requirement of subparagraph (A) for any 
                fiscal year if the Secretary determines that the 
                government of the insular area will be unlikely to meet 
                the matching requirement for the fiscal year.''.
    (b) Cooperative Agricultural Extension.--Section 3(e) of the Smith-
Lever Act (7 U.S.C. 343(e)) is amended by striking paragraph (4) and 
inserting the following:
            ``(4) Exception for insular areas.--
                    ``(A) In general.--Effective beginning for fiscal 
                year 2003, in lieu of the matching funds requirement of 
                paragraph (1), the insular areas of the Commonwealth of 
                Puerto Rico, Guam, and the Virgin Islands of the United 
                States shall provide matching funds from non-Federal 
                sources in an amount equal to not less than 50 percent 
                of the formula funds distributed by the Secretary to 
                each of the insular areas, respectively, under this 
                section.
                    ``(B) Waivers.--The Secretary may waive the 
                matching fund requirement of subparagraph (A) for any 
                fiscal year if the Secretary determines that the 
                government of the insular area will be unlikely to meet 
                the matching requirement for the fiscal year.''.

SEC. 773. EDUCATION GRANTS FOR PACIFIC ISLANDER SERVING INSTITUTIONS.

    Section 759(b) of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C. 
3242(b)), is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (2), (3), and (4), respectively;
            (2) by inserting after the subsection heading the 
        following:
            ``(1) Definition of pacific islander serving institution.--
        In this subsection, the term `Pacific Islander serving 
        institution' includes--
                    ``(A) a land-grant institution in Guam, American 
                Samoa, or the Commonwealth of the Northern Mariana 
                Islands; and
                    ``(B) the College of Micronesia.'';
            (3) in paragraph (2) (as so redesignated), by striking 
        ``Native Hawaiian serving institutions'' the second place it 
        appears and inserting ``Native Hawaiian serving institutions or 
        Pacific Islander serving institutions; and
            (4) in paragraph (3) (as so redesignated)--
                    (A) by striking ``Native Hawaiian serving 
                institutions'' each place it appears and inserting 
                ``Native Hawaiian serving institutions or Pacific 
                Islander serving institutions''; and
                    (B) in subparagraph (C), by inserting ``and 
                affiliated Pacific insular areas served by Pacific 
                Islander serving institutions'' after ``United 
                States''.

                   CHAPTER 5--LAND-GRANT INSTITUTIONS

SEC. 776. PRIORITY-SETTING PROCESS.

    Section 102(c) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7612(c)) 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 diverse agricultural crop, 
        geographic, and cultural communities.''.

                         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.

    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.''.

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. BIOMASS RESEARCH AND DEVELOPMENT.

    Sections 307(f) and 310 of the Biomass Research and Development Act 
of 2000 (7 U.S.C. 7624 note; Public Law 106-224) are amended by 
striking ``2005'' each place it appears and inserting ``2006''.

                      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 Agricultural Research 
        Service and the role of the 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 foster training, education, outreach, 
and technical assistance initiatives for beginning farmers or ranchers.
    (c) Grants.--
            (1) In general.--In carrying out this section, the 
        Secretary may 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 combination 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, 
        local, or regionally-based network or partnership of public or 
        private entities, which may include--
                    (A) a State cooperative extension service;
                    (B) a Federal or State agency;
                    (C) a community-based and nongovernmental 
                organization;
                    (D) a college or university (including an 
                institution awarding an associate's degree); or
                    (E) any other appropriate entities, 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 limited 
        resource and socially disadvantaged beginning 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.
    (d) Education Teams.--
            (1) In general.--The Secretary shall establish, and develop 
        curricula for, beginning farmer and rancher education teams to 
        conduct educational programs and workshops for beginning 
        farmers or ranchers in diverse geographical areas of the United 
States.
            (2) Curriculum.--In developing the curricula for the 
        education teams, 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.--In carrying out this subsection, the 
        Secretary shall cooperate, to the maximum extent practicable, 
        with--
                    (A) State cooperative extension services;
                    (B) Federal and State agencies;
                    (C) community-based and nongovernmental 
                organizations;
                    (D) colleges and universities (including community 
                colleges) or foundations maintained by a college or 
                university; and
                    (E) other appropriate entities, as determined by 
                the Secretary.
    (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; and
            (2) national, State, and local organizations, and other 
        persons, with expertise in operating beginning farmer and 
        rancher programs.
    (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) notwithstanding chapter 63 of title 
                        31, United States Code, accept contributions 
                        from cooperating entities 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, 
                        to remain available to the Secretary without 
                        further appropriation and remain available 
                        until expended; and
                            (ii) be in addition to any funds made 
                        available under paragraph (2).
            (2) 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. 797. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
              AGRICULTURAL RESEARCH AND INCREASING CAPACITY FOR 
              RESEARCH ON BIOSECURITY AND ANIMAL AND PLANT HEALTH 
              DISEASES.

    (a) 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.
    (b) Increasing Capacity for Research on Biosecurity and Animal and 
Plant Health Diseases.--It is the sense of Congress that funding for 
the Agricultural Research Service, the Animal and Plant Health 
Inspection Service, and other agencies of the Department of Agriculture 
with responsibilities for biosecurity should be increased as necessary 
to improve the capacity of the agencies to conduct research and 
analysis of, and respond to, bioterrorism and animal and plant 
diseases.

SEC. 798. RURAL POLICY RESEARCH.

    (a) In General.--The Secretary may award competitive research 
grants for 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, and value-added enterprises;
            (7) farm management, including strategic planning, business 
        and marketing opportunities, risk management, natural resources 
        and environmental management, 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.
    (b) 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.
    (c) Eligible Grantees.--The Secretary may make a grant under this 
section to--
            (1) an individual;
            (2) a college or university or a research foundation 
        maintained by a college or university;
            (3) a State cooperative institution;
            (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.
    (d) Term.--A grant under this section shall have a term that does 
not exceed 5 years.
    (e) 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.
    (f) 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.
    (g) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        such sums as are necessary to carry out this section.
            (2) Availability of funds.--Funds for grants under this 
        section shall be available to the Secretary for obligation for 
        a 2-year period.

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 or any Act enacted after the date of 
enactment of this Act, the Secretary of Agriculture shall give priority 
to using farms or ranches of farmers or ranchers that participate in 
Federal agricultural conservation programs.

                       Subtitle G--Administration

SEC. 799. EFFECT OF AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided in this 
title and notwithstanding any other provision of law, this title and 
the amendments made by this title shall not affect the authority of the 
Secretary of Agriculture to carry out a research, extension, or 
education program for any of the 1996 through 2002 fiscal years under a 
provision of law in effect immediately before the enactment of this 
Act.
    (b) Liability.--A provision of this title or an amendment made by 
this title shall not affect the liability of any person under any 
provision of law as in effect immediately before the enactment of this 
Act.

                          TITLE VIII--FORESTRY

SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(7 U.S.C. 6704(d)) is amended by striking ``2002'' and inserting 
``2006''.

SEC. 802. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

    (a) Authorization of Appropriations.--Section 6 of the Renewable 
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the 
first sentence by striking ``2002'' and inserting ``2006''.
    (b) Effective 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. 803. 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. 804. SUSTAINABLE FORESTRY ASSISTANCE PROGRAM.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
striking section 6 (16 U.S.C. 2103b) and inserting the following:

``SEC. 6. SUSTAINABLE FORESTRY ASSISTANCE 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 
                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) the soil and water and air quality of 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 
                provide income and employment that contribute to the 
                economic 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 private nonindustrial forest land 
                are being faced with increased pressure to make that 
                land available for development and other uses;
                    ``(H)(i) complex, long-rotation forest investments, 
                including sustainable hardwood management are often the 
                most difficult commitments for owners of small areas of 
                nonindustrial private forest land; and
                    ``(ii) such investments in a small area of 
                nonindustrial private forest land should receive 
                consideration equal to that given to owners of larger 
                areas of nonindustrial private forest land under cost-
                share programs; and
                    ``(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.
            ``(2) Purposes.--The purposes of this section are--
                    ``(A) to strengthen the commitment of the Secretary 
                to sustainable forestry; 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) Definitions.--In this section:
            ``(1) Committee.--The term `Committee' means a State Forest 
        Stewardship Coordinating Committee.
            ``(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) Initiative.--The term `initiative' means the 
        Sustainable Forestry Assistance Program established under 
        subsection (c)(1).
            ``(4) Management plan.--The term `management plan' means a 
        stewardship, forest, or stand management plan submitted under 
        subsection (f)(3)(A).
            ``(5) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' means rural land, as 
        determined by the Secretary, that--
                    ``(A)(i) has existing tree cover; or
                    ``(ii) is suitable for growing trees; and
                    ``(B) is owned by any nonindustrial private 
                individual, group, association, corporation, Indian 
                tribe, or other private legal entity.
            ``(6) Owner.--The term `owner' means an owner of 
        nonindustrial private forest land.
            ``(7) State forester.--The term `State forester' means the 
        director or other head of a State forestry agency (or an 
        equivalent State official).
    ``(c) Establishment.--
            ``(1) In general.--In consultation with State foresters, 
        the Secretary shall establish a sustainable forestry assistance 
        program to--
                    ``(A) provide financial, technical, educational, 
                and related 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 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 shall implement the 
        initiative in coordination with--
                    ``(A) the Committees; and
                    ``(B) State foresters.
    ``(d) State Priority Plan.--As a condition of receipt of funding 
under the initiative, a State shall develop, in consultation with the 
committee of the State, and submit to the Secretary, a 5-year plan that 
describes the funding priorities of the State in meeting the goals of 
the initiative.
    ``(e) Objectives.--In implementing the initiative, the Secretary 
shall allocate resources of the Secretary among States in accordance 
with subsection (k) to ensure, in accordance with the plan of each 
State described in subsection (d)--
            ``(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 preservation of fish and wildlife habitat;
            ``(5) the enhancement of soil 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.
    ``(f) Eligibility.--
            ``(1) Conditions.--
                    ``(A) In general.--An owner shall be eligible to 
                receive cost-share assistance under the initiative if 
                the owner--
                            ``(i) agrees to develop and implement, in 
                        cooperation with, and with the approval of, the 
                        State forester (or the head of a private sector 
                        program in consultation with the State 
                        forester), a management plan (or other written 
                        plan) that addresses site-specific activities 
                        and practices;
                            ``(ii) agrees to implement approved 
                        activities in accordance with a 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.--
                Subject to paragraph (2), the Secretary may approve the 
                provision of cost-share assistance to an owner that 
                owns more than 1,000 acres of nonindustrial private 
                forest land if the Secretary, in consultation with the 
                appropriate Committee, determines that significant 
                public benefits will accrue as a result of the 
                approval.
            ``(2) Limitations.--
                    ``(A) Quantity of land.--The Secretary shall not 
                approve the provision of cost-share assistance under 
                paragraph (1) to any owner that owns more than 5,000 
                acres of nonindustrial private forest land.
                    ``(B) Duplicative assistance.--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 the forestry incentives program under section 4.
            ``(3) Management plan.--An owner that seeks to enroll 
        nonindustrial private forest land in the initiative shall--
                    ``(A) submit to the State forester a management 
                plan that--
                            ``(i) meets the requirements of this 
                        section; and
                            ``(ii)(I) is prepared by a professional 
                        resource manager;
                            ``(II) identifies and describes projects 
                        and activities to be carried out by the owner 
                        to protect soil, water, range, 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; and
                            ``(III) is approved by the State forester; 
                        and
                    ``(B) agree that all projects and activities 
                conducted on the land shall be consistent with the 
                management plan.
            ``(4) State priorities.--The Secretary, in consultation 
        with the appropriate State forester and Committee, may 
        establish State priorities for cost sharing under the 
        initiative that will promote the forest management objectives 
        of the State.
    ``(g) Approved Activities.--
            ``(1) In general.--The Secretary, in consultation with the 
        appropriate Committee, shall develop for each State a list of 
        approved forest activities and practices eligible for cost-
        share assistance under the initiative.
            ``(2) Types of activities.--Approved activities and 
        practices under paragraph (1) shall consist of activities and 
        practices to establish, restore, manage, maintain, and enhance 
        forests and trees through--
                    ``(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 application of State-developed 
                        forestry best management practices; and
                            ``(ii) the planting of trees in riparian 
                        areas;
                    ``(E) the preservation of habitat for flora and 
                fauna;
                    ``(F) the enhanced management and maintenance of 
                native vegetation on land vital to water quality;
                    ``(G)(i) the control, detection, monitoring, and 
                prevention of the spread of invasive species and pests 
                on forest land; and
                    ``(ii) the provision of resources for the 
                restoration of forest land affected by invasive species 
                and pests;
                    ``(H) 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;
                    ``(I) the development of management plans;
                    ``(J) the management or development of fish and 
                wildlife habitat;
                    ``(K) the acquisition of permanent easements to 
                maintain forest cover; and
                    ``(L) the conduct of other activities approved by 
                the Secretary, in coordination with the appropriate 
                Committees.
    ``(h) Cooperation.--In implementing the initiative, the Secretary 
shall cooperate with--
            ``(1) other Federal, State, and local natural resource 
        management agencies;
            ``(2) Committees;
            ``(3) institutions of higher education; and
            ``(4) the private sector.
    ``(i) Cost Sharing.--
            ``(1) In general.--An owner may receive cost-share 
        assistance from the Secretary, as the Secretary determines 
        appropriate, for the cost of--
                    ``(A) developing a management plan; and
                    ``(B) implementing approved projects and activities 
                in accordance with the management plan.
            ``(2) Rate; schedule.--The Secretary shall determine the 
        rate and timing of cost-share payments.
            ``(3) 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.
    ``(j) Failure To Comply.--
            ``(1) In general.--The Secretary shall establish a 
        procedure to recoup cost-share payments made to an owner under 
        this section in any case in which the owner fails to implement 
        a project or activity in accordance with the management plan.
            ``(2) Additional authority.--The authority under paragraph 
        (1) is in addition to any other authority available to the 
        Secretary.
    ``(k) Distribution.--The Secretary shall distribute funds available 
for cost sharing under the initiative among States only after 
considering--
            ``(1) the total acreage of nonindustrial private forest 
        land in each State that is environmentally fragile (considering 
        the objectives of the initiative as described in subsection 
        (e));
            ``(2) the potential productivity of that land;
            ``(3) the number of owners eligible for cost sharing in 
        each State;
            ``(4) the opportunities to enhance nontimber resources on 
        that land;
            ``(5) the anticipated demand for timber and nontimber 
        resources in each State;
            ``(6) the need to improve forest health to minimize the 
        damaging effects of catastrophic fire, insects, disease, or 
        weather;
            ``(7) the need and demand for agroforestry practices in 
        each State;
            ``(8) the need to maintain and enhance the forest landbase; 
        and
            ``(9) the need for afforestation, reforestation, and timber 
        stand improvement.
    ``(l) Commodity Credit Corporation.--
            ``(1) In general.--The Secretary shall use the funds, 
        facilities, and authorities of the Commodity Credit Corporation 
        to carry out this section.
            ``(2) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section $70,000,000 for each of fiscal years 2003 through 
        2006.''.

                            TITLE IX--ENERGY

SEC. 901. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) greenhouse gas emissions resulting from human activity 
        present potential risks and potential opportunities for 
        production agriculture;
            (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) Amendment.--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. 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 under which the emitter pays to the 
agricultural producer 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.--The Secretary shall establish a 
        program to provide grants, on a competitive, cost-shared basis, 
        to agricultural producers 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 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 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) 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;
                            ``(ii) is designed to achieve long-term 
                        sequestration of carbon or long-term reductions 
                        in greenhouse gas emissions;
                            ``(iii) is designed to address concerns 
                        concerning leakage;
                            ``(iv) provides certain other benefits, 
                        such as improvements in--
                                    ``(I) soil fertility;
                                    ``(II) wildlife habitat;
                                    ``(III) water quality;
                                    ``(IV) soil erosion management; and
                                    ``(V) the use of renewable 
                                resources to produce energy; or
                            ``(v) does not involve the reforestation of 
                        land that has been deforested since 1990.
            ``(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) Methodology Grant Program.--
            ``(1) Establishment.--The Secretary shall establish a 
        program to provide grants to determine the best methodologies 
        for estimating and measuring increases or decreases in--
                    ``(A) agricultural greenhouse gas emissions; and
                    ``(B) the quantity of carbon sequestered in soils 
                and forests.
            ``(2) Eligible recipients.--The Secretary shall award a 
        grant under paragraph (1), on a competitive basis, to a college 
        or university, or other research institution, that seeks to 
        demonstrate the viability of a methodology described in 
        paragraph (1).
    ``(d) 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 may obtain 
information concerning--
            ``(1) potential environmental trades; and
            ``(2) activities of the Secretary under this section.
    ``(e) 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.

``SEC. 410. PROCUREMENT AND TESTING OF BIOBASED PRODUCTS.

    ``(a) In General.--The Secretary, in consultation with the heads of 
other Federal agencies, shall establish a program to require Federal 
agencies to purchase biobased products that the Secretary determines 
are--
            ``(1) environmentally preferable; and
            ``(2) comparable to nonbiobased products in price, 
        availability, and performance.
    ``(b) Grants.--The Secretary may make grants to eligible persons 
(as determined by the Secretary) to assist in collecting data 
concerning testing of, and performing lifecycle analyses of, biobased 
products for use in making the determination under subsection (a).
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000 for each of fiscal 
years 2003 through 2006.''.

            Subtitle A--Agriculture Infrastructure Security

SEC. 1001. AGRICULTURE INFRASTRUCTURE SECURITY FUND.

    (a) Definitions.--
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Fund.--The term ``Fund'' means the Agriculture 
        Infrastructure Security Fund Account established by subsection 
        (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) 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 or transferred to the Fund under subsection (d).
    (c) 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.
    (d) Deposits Into Fund.--
            (1) Initial appropriation.--
                    (A) In general.--Out of any moneys in the Treasury 
                not otherwise appropriated, there is appropriated to 
                the Fund $400,000,000 for fiscal year 2002.
                    (B) Entitlement.--The Secretary--
                            (i) shall be entitled to receive the funds 
                        referred to in subparagraph (A): and
                            (ii) shall accept the funds.
            (2) Subsequent authorization of appropriations.--There are 
        authorized to be appropriated to the Fund such sums as are 
        necessary for each of fiscal years 2003 through 2006.
            (3) Contributions and other proceeds.--The Secretary shall 
        deposit into the Fund any funds received--
                    (A) as proceeds from the sale of assets under 
                subsection (f); or
                    (B) as gifts under subsection (g).
            (4) Availability of funds.--Amounts in the Fund shall 
        remain available until expended without further Act of 
        appropriation.
    (e) 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, 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 (c), 
                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 acquisition of specialized 
                services relating to the purposes specified in 
                subsection (c); and
                    (C) notwithstanding chapter 63 of title 31, United 
                States Code, the costs of entering into cooperative 
                arrangements with State, local and tribal governments, 
                and other public and private entities, to carry out 
                programs relating to the purposes specified in 
                subsection (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.--For any fiscal year, 
                not more than 1 percent of the amounts remaining in the 
                Fund may be used for administrative expenses of the 
                Secretary in carrying out the activities described in 
                paragraph (1).
    (f) 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 custody of the 
        Department (including land and facilities at the Beltsville 
        Agricultural Research Center) used for the purposes specified 
        in subsection (c).
            (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 
        (d)(3)(A).
    (g) Gifts.--
            (1) In general.--To carry out the purposes specified in 
        subsection (c), the Secretary may accept gifts (including 
        bequests) of funds, property, 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 (d)(3)(B).

SEC. 1002. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.

    (a) Definitions.--In this section:
            (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; or
                            (II) a Forest Service facility;
                            (ii) a Federal agricultural facility in the 
                        process of being planned or being constructed; 
                        or
                            (iii) any other facility under the 
                        jurisdiction of the Secretary.
            (2) Commission.--The term ``Commission'' means the 
        Agriculture Infrastructure Security Commission established 
        under subsection (b).
            (3) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Establishment of Commission.--The Secretary shall establish a 
commission to be known as the ``Agriculture Infrastructure Security 
Commission'' to carry out the duties described in subsection (g).
    (c) 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 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 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 a member of 
        the Commission shall be made not later than 90 days after the 
        date of enactment of this Act.
    (d) 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.
    (e) 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.
    (f) Chairperson.--The Secretary shall select a Chairperson from 
among the voting members of the Commission.
    (g) Duties.--
            (1) In general.--The Commission shall--
                    (A) advise the Secretary on the uses of the 
                Agriculture Infrastructure Security Fund established by 
                section 1001;
                    (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 Act, 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.--
                                Upon 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.
    (h) 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.
    (i) Authorization of Appropriations.--
            (1) Fiscal year 2002.--For the purpose of establishing the 
        Commission, the Secretary shall use, for fiscal year 2002, such 
        sums from the Agriculture Infrastructure Security Fund 
        established by section 1001 as the Secretary determines to be 
        appropriate.
            (2) Fiscal years 2003 through 2006.--There are authorized 
        to be appropriated to carry out this section such sums as are 
        necessary for each of fiscal years 2002 through 2006.

Subtitle B--Outreach and Assistance for Socially Disadvantaged Farmers 
                              and Ranchers

SEC. 1011. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
              AND RANCHERS.

    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) provides 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) does not engage in 
                                activities prohibited under section 
                                501(c)(3) of the Internal Revenue Code 
                                of 1986;
                            ``(ii)(I) 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));
                            ``(II) an Indian tribal community college;
                            ``(III) an Alaska Native cooperative 
                        college;
                            ``(IV) 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
                            ``(V) 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.--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.
            ``(5) Funding.--There is authorized to be appropriated to 
        carry out this subsection, $25,000,000 for each fiscal year.''.
                                 <all>