[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1628 Introduced in Senate (IS)]

  1st Session
                                S. 1628

  To strengthen the safety net for agricultural producers, to enhance 
   resource conservation and rural development, to provide for farm 
  credit, agricultural research, nutrition, and related programs, to 
   ensure consumers abundant food and fiber, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             November 2 (legislative day, November 1), 2001

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

_______________________________________________________________________

                                 A BILL


 
  To strengthen the safety net for agricultural producers, to enhance 
   resource conservation and rural development, to provide for farm 
  credit, agricultural research, nutrition, and related programs, to 
   ensure consumers abundant food and fiber, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Agriculture, 
Conservation, and Rural Enhancement 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. Definitions.
            Subtitle A--Direct and Counter-Cyclical Payments

Sec. 111. Authorization for use of contracts.
Sec. 112. Elements of contracts.
Sec. 113. Payment yields.
Sec. 114. Base acres.
Sec. 115. Direct payments.
Sec. 116. Counter-cyclical payments.
Sec. 117. Producer agreements.
Sec. 118. Planting flexibility.
Sec. 119. Payment limitations.
             Subtitle B--Loans and Loan Deficiency Payments

Sec. 131. Availability of marketing loans.
Sec. 132. Loan rates for marketing loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Special competitive provisions for extra long staple cotton.
Sec. 138. High moisture feed grains.
Sec. 139. Seed cotton.
Sec. 140. Producer election for 2002 crop.
                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 151. Milk price support program.
Sec. 152. Dairy export incentive and dairy indemnity programs.
Sec. 153. Fluid milk promotion.
Sec. 154. Dairy product mandatory reporting.
Sec. 155. Funding of dairy promotion and research program.
                            Chapter 2--Sugar

Sec. 161. Sugar program.
Sec. 162. Storage facility loans.
Sec. 163. Flexible marketing allotments for sugar.
                           Chapter 3--Peanuts

Sec. 171. Peanut program.
                       Subtitle D--Administration

Sec. 181. Administration.
Sec. 182. Commodity Credit Corporation sales price restrictions.
Sec. 183. Commodity certificates.
Sec. 184. Assignment of payments.
Sec. 185. Suspension of price support authority.
Sec. 186. Conforming amendments.
Sec. 187. Effect of amendments.
             Subtitle E--Miscellaneous Commodity Provisions

Sec. 191. Risk management education.
Sec. 192. Administration and operation of noninsured crop assistance 
                            program.
                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

Sec. 201. Conservation security program.
Sec. 202. Funding.
Sec. 203. Partnerships and cooperation.
Sec. 204. Administrative requirements for conservation programs.
Sec. 205. Reform and consolidation of conservation programs.
Sec. 206. Conservation security program regulations.
Sec. 207. Conforming amendments.
                     Subtitle B--Program Extensions

Sec. 211. Comprehensive conservation enhancement program.
Sec. 212. Conservation reserve program.
Sec. 213. Wetlands reserve program.
Sec. 214. Environmental quality incentives program.
Sec. 215. Resource conservation and development program.
Sec. 216. Wildlife habitat incentive program.
Sec. 217. Agricultural land protection program.
Sec. 218. Grassland reserve program.
Sec. 219. State technical committees.
                            TITLE III--TRADE

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

Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of foreign currencies by private voluntary 
                            organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation, 
                            delivery, and distribution of shelf-stable 
                            prepackaged foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient fortification pilot program.
Sec. 313. International food for education and child nutrition.
Sec. 314. Farmer-to-farmer program.
Sec. 315. Bill Emerson Humanitarian Trust.
Sec. 316. Food for progress.
Sec. 317. Tropical forest conservation.
               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.
        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Emerging markets.
Sec. 332. Reports on inspection of imported meat, poultry, other foods, 
                            animals, and plants.
Sec. 333. Surplus commodities for developing or friendly countries.
Sec. 334. Agricultural trade with Cuba.
Sec. 335. Office of Trade Barrier Rapid Response.
Sec. 336. Sense of Congress concerning agricultural trade policy 
                            objectives.
                      TITLE IV--NUTRITION PROGRAMS

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

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

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Restoration of benefits to legal immigrants.
Sec. 453. Fruit and vegetable pilot program.
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. Amount of guarantee of loans for tribal farm operations; 
                            waiver of limitations for tribal farm 
                            operations and other farm operations.
                 Subtitle C--Administrative Provisions

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

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

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.
                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

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

Sec. 611. Short title.
Sec. 612. National Rural Development Partnership.
        Subtitle C--Consolidated Farm and Rural Development Act

Sec. 621. Water or waste disposal grants.
Sec. 622. Rural business opportunity grants.
Sec. 623. Rural water and wastewater circuit rider program.
Sec. 624. Multijurisdictional regional planning organizations.
Sec. 625. Certified nonprofit organizations sharing expertise.
Sec. 626. Loan guarantees for certain rural development loans.
Sec. 627. Rural firefighters and emergency personnel grant program.
Sec. 628. Emergency community water assistance grant program.
Sec. 629. Water and waste facility grants for Native American tribes.
Sec. 630. Water systems for rural and native villages in Alaska.
Sec. 631. Business and industry direct and guaranteed loans.
Sec. 632. Rural cooperative development grants.
Sec. 633. Value-added intermediary relending program.
Sec. 634. Use of rural development loans and grants for other purposes.
Sec. 635. Simplified application forms for loan guarantees.
Sec. 636. Rural entrepreneurs and microenterprise assistance program.
Sec. 637. Rural seniors.
Sec. 638. Rural telework.
Sec. 639. Historic barn preservation.
Sec. 640. Delta Regional Authority.
Sec. 641. SEARCH grants for small communities.
Sec. 642. Northern Great Plains Regional Authority.
   Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 651. Alternative Agricultural Research and Commercialization 
                            Corporation.
Sec. 652. Telemedicine and distance learning services in rural areas.
             Subtitle E--Rural Electrification Act of 1936

Sec. 661. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 662. Expansion of 911 access.
                       Subtitle F--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. Grants for research on the production and marketing of 
                            alcohols and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 705. Policy research centers.
Sec. 706. Human nutrition intervention and health promotion research 
                            program.
Sec. 707. Pilot research program to combine medical and agricultural 
                            research.
Sec. 708. Nutrition education program.
Sec. 709. Animal health and disease research programs.
Sec. 710. Research on national or regional problems.
Sec. 711. Education grants programs for Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and 
                            education programs.
Sec. 713. Indirect costs.
Sec. 714. Research equipment grants.
Sec. 715. Agricultural research programs.
Sec. 716. Extension education.
Sec. 717. Special authorization for biosecurity planning and response.
Sec. 718. Availability of competitive grant funds.
Sec. 719. Joint requests for proposals.
Sec. 720. Supplemental and alternative crops.
Sec. 721. Aquaculture.
Sec. 722. Rangeland research.
   Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 731. National genetic resources program.
Sec. 732. Biotechnology risk assessment research.
Sec. 733. High-priority research and extension initiatives.
Sec. 734. Nutrient management research and extension initiative.
Sec. 735. Organic agriculture research and extension initiative.
Sec. 736. Agricultural telecommunications program.
Sec. 737. 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.
                   Chaptesubchapter a--generaltutions
Sec. 771.subchapter b--land-grant institutions in insular areas
Sec. 775. Distance education grants program for insular area land-grant 
                            institutions.
Sec. 776. Matching requirements for research and extension formula 
                            funds for insular area land-grant 
                            institutions.
Sec. 777. Education grants for Pacific Islander serving institutions.
                         Subtitle E--Other Laws

Sec. 781. Critical agricultural materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural research facilities.
Sec. 784. Competitive, special, and facilities research grants.
Sec. 785. Risk management education for beginning farmers and ranchers.
Sec. 786. Aquaculture.
                      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.
Sec. 798B. Organic production and market data initiatives.
                       Subtitle G--Administration

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

Sec. 801. Office of International Forestry.
Sec. 802. Mcintire-Stennis cooperative forestry research program.
Sec. 803. Sustainable forestry outreach initiative; renewable resources 
                            extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Sustainable forestry cooperative program.
Sec. 806. Sustainable forest management program.
Sec. 807. Enhanced community fire protection.
Sec. 808. Watershed forestry assistance program.
Sec. 809. General provisions.
Sec. 810. State forest stewardship coordinating committees.
                            TITLE IX--ENERGY

Sec. 901. Findings.
Sec. 902. Consolidated Farm and Rural Development Act.
Sec. 903. Biomass Research and Development Act of 2000.
Sec. 904. Sense of Congress concerning a national renewable fuels 
                            standard.
Sec. 905. Rural Electrification Act of 1936.
                   TITLE X--AGRICULTURAL COMPETITION

                Subtitle A--Agricultural Fair Practices

Sec. 1001. Agricultural fair practices.
                   Subtitle B--Packers and Stockyards

Sec. 1011. Investigation of live poultry dealers.
Sec. 1012. Appointment of outside counsel.
                 Subtitle C--Country of Origin Labeling

Sec. 1021. Country of origin labeling.
 Subtitle D--Referenda on Continuation of Commodity Promotion Programs

Sec. 1031. Referenda on continuation of commodity promotion programs.
            Subtitle E--Perishable Agricultural Commodities

Sec. 1041. Disciplinary violations.
                        TITLE XI--MISCELLANEOUS

Sec. 1101. Cotton classification services.
Sec. 1102. Availability of section 32 funds.
Sec. 1103. Pseudorabies eradication program.
Sec. 1104. Collection and use of agricultural quarantine and inspection 
                            fees.
Sec. 1105. Commodity purchases.
Sec. 1106. Seniors farmers' market nutrition program.
Sec. 1107. National organic certification cost-share program.

                      TITLE I--COMMODITY PROGRAMS

SEC. 101. DEFINITIONS.

    In this title (other than chapter 3 of subtitle C):
            (1) Base acres.--The term ``base acres'' means the base 
        acres established under section 114 for a covered commodity for 
        a farm.
            (2) Considered planted.--The term ``considered planted'' 
        means any acreage on the farm that--
                    (A) producers on a farm were prevented from 
                planting to a crop because of drought, flood, or other 
                natural disaster, or other condition beyond the control 
                of the producers on the farm, as determined by the 
                Secretary; and
                    (B) was not planted to another covered commodity.
            (3) Contract.--The term ``contract'' means a contract 
        entered into under section 111.
            (4) Contract payment.--The term ``contract payment'' means 
        a direct payment and a counter-cyclical payment.
            (5) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers on a farm under 
        section 116.
            (6) Covered commodity.--The term ``covered commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        rice, and oilseeds.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) Direct payment.--The term ``direct payment'' means a 
        payment made to producers on a farm under section 115.
            (9) Extra long staple cotton.--The term `extra long staple 
        cotton' means cotton that--
                    (A) is produced from pure strain varieties of the 
                Barbadense species or any hybrid thereof, or other 
                similar types of extra long staple cotton, designated 
                by the Secretary, having characteristics needed for 
                various end uses for which United States upland cotton 
                is not suitable and grown in irrigated cotton-growing 
                regions of the United States designated by the 
                Secretary or other areas designated by the Secretary as 
                suitable for the production of the varieties or types; 
                and
                    (B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another type gin 
                for experimental purposes.
            (10) Loan commodity.--The term ``loan commodity'' means 
        each contract commodity, extra long staple cotton, wool, 
        mohair, honey, dry peas, lentils, and chickpeas.
            (11) Oilseed.--The term ``oilseed'' means soybeans, 
        sunflower seed, rapeseed, canola, safflower, flaxseed, mustard 
        seed, or, if designated by the Secretary, another oilseed.
            (12) Payment yield.--The term ``payment yield'' means the 
        yield established under section 113 for a farm for a covered 
        commodity.
            (13) Producer.--
                    (A) In general.--The term ``producer'' means an 
                owner, operator, landlord, tenant, or sharecropper 
                that--
                            (i) shares in the risk of producing a crop;
                            (ii) is entitled to share in the crop 
                        available for marketing from a farm or would 
                        have shared had the crop been produced; and
                            (iii) makes contributions of land, labor, 
                        management, equipment, and capital to the 
                        operation of the farm that are at least 
                        commensurate with the producer's share of the 
                        proceeds of the operation.
                    (B) Hybrid seed.--In determining whether a grower 
                of hybrid seed is a producer, the Secretary--
                            (i) shall not take into consideration the 
                        existence of a hybrid seed contract; and
                            (ii) shall ensure that program requirements 
                        do not adversely affect the ability of the 
                        grower to receive a payment under this title.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

            Subtitle A--Direct and Counter-Cyclical Payments

SEC. 111. AUTHORIZATION FOR USE OF CONTRACTS.

    (a) In General.--The Secretary shall offer to enter into a contract 
with eligible producers on a farm containing eligible cropland to 
receive contract payments.
    (b) Eligible Producers.--
            (1) In general.--Subject to paragraph (2), a producer (as 
        defined in section 101) shall be eligible to enter into a 
        contract.
            (2) Tenants.--
                    (A) Share-rent tenants.--A producer on eligible 
                cropland that is a tenant with a share-rent lease of 
                the eligible cropland, regardless of the length of the 
                lease shall be eligible to enter into a contract, if 
                the owner of the eligible cropland enters into the same 
                contract.
                    (B) Cash-rent tenants.--
                            (i) Contracts with long-term leases.--A 
                        producer on eligible cropland that cash rents 
                        the eligible cropland under a lease expiring on 
                        or after the termination of the contract shall 
                        be eligible to enter into a contract.
                            (ii) Contracts with short-term leases.--
                                    (I) In general.--A producer that 
                                cash rents the eligible cropland under 
                                a lease expiring before the termination 
                                of the contract shall be eligible to 
                                enter into a contract.
                                    (II) Owner's contract interest.--
                                The owner of the eligible cropland may 
                                also enter into the same contract.
                                    (III) Consent of owner.--If the 
                                producer elects to enroll less than 100 
                                percent of the eligible cropland in the 
                                contract, the consent of the owner 
                                shall be required for a valid contract.
                            (iii) Contracts with owners.--An owner of 
                        eligible cropland that cash rents the eligible 
                        cropland under a lease with a term that expires 
                        before the end of the 2006 crop year shall be 
                        eligible to enter into a contract after the 
                        lease expires.
    (c) Eligible Cropland.--
            (1) In general.--Land shall be considered to be cropland 
        eligible for coverage under a contract only if the land--
                    (A) has with respect to a covered commodity--
                            (i) base acres attributable to the land 
                        under section 114; and
                            (ii) a payment yield under section 113; or
                    (B) was subject to a conservation reserve contract 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) whose term expired, or was voluntarily 
                terminated, on or after the date of enactment of this 
                Act.
            (2) Quantity of eligible cropland covered by contract.--An 
        eligible producer may enroll as contract acreage all or a 
        portion of the eligible cropland on the farm.
            (3) Voluntary reduction in contract acreage.--An eligible 
        producer that enters into a contract may subsequently reduce 
        the quantity of contract acreage covered by the contract.
    (d) Protection of Interests of Certain Producers.--
            (1) Tenants and sharecroppers.--In carrying out this 
        subtitle, the Secretary shall provide adequate safeguards to 
        protect the interests of tenants and sharecroppers.
            (2) Sharing of payments.--The Secretary shall provide for 
        the sharing of contract payments among the eligible producers 
        on a farm on a fair and equitable basis.

SEC. 112. ELEMENTS OF CONTRACTS.

    (a) Time for Contracting.--
            (1) Commencement.--To the extent practicable, the Secretary 
        shall commence entering into contracts not later than 45 days 
        after the date of enactment of this Act.
            (2) Deadline.--Except as provided in paragraph (3), the 
        Secretary may not enter into a contract after the date that is 
        180 days after the date of enactment of this Act.
            (3) Conservation reserve land.--
                    (A) In general.--At the beginning of each fiscal 
                year, the Secretary shall allow an eligible producer on 
                a farm covered by a conservation reserve contract 
                entered into under section 1231 of the Food Security 
                Act of 1985 (16 U.S.C. 3831) that terminates after the 
                date specified in paragraph (2) to enter into or expand 
                a contract to cover the eligible cropland of the farm 
                that was subject to the former conservation reserve 
                contract.
                    (B) Amount.--Contract payments made for eligible 
                cropland under this paragraph shall be made at the rate 
                and amount determined by the Secretary consistent with 
                this subtitle.
    (b) Duration of Contract.--
            (1) Beginning date.--The term of a contract shall begin 
        with--
                    (A) the 2002 crop of a contract commodity; or
                    (B) in the case of acreage that was subject to a 
                conservation reserve contract described in subsection 
                (a)(3), the date the contract was entered into or 
                expanded to cover the acreage.
            (2) Ending date.--The term of a contract shall extend 
        through the 2006 crop, unless earlier terminated by the 
        producer.

SEC. 113. PAYMENT YIELDS.

    (a) In General.--Subject to subsection (b), the payment yield for 
each of the 2002 through 2006 crops of a covered commodity for a farm 
shall be the greater of--
            (1) the average of the yield per harvested acre for the 
        crop of the covered commodity for the farm for the 1998 through 
        2001 crop years, excluding--
                    (A) any crop year for which the producers on the 
                farm did not plant the covered commodity; and
                    (B) at the option of the producers on the farm, 1 
                additional crop year; or
            (2) the farm program payment yield that would have been 
        established for the producers on the farm for the 2002 crop of 
        the covered commodity under title I of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.).
    (b) Assigned Yields.--In the case of a farm for which a payment 
yield is unavailable for a covered commodity, the Secretary shall 
establish an appropriate payment yield for the covered commodity on the 
farm taking in consideration the payment yields applicable to the 
covered commodity under subsection (a) for similar farms in the area.

SEC. 114. BASE ACRES.

    (a) In General.--Subject to subsection (b), the base acres on a 
farm shall be equal to the average of the acreage planted and 
considered planted to the crop of each covered commodity for harvest on 
the farm during each of the 1998 through 2001 crop years.
    (b) Treatment of Conservation Reserve Contract Acreage.--
            (1) In general.--The Secretary shall provide for an 
        adjustment in the base acres for a farm whenever either of the 
        following circumstances occur:
                    (A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
            (2) Election.--For the fiscal year and crop year in which a 
        base acre adjustment under paragraph (1) is first made, the 
        producers on the farm shall elect to receive--
                    (A) contract payments with respect to the acreage 
                added to the farm under this subsection; or
                    (B) a prorated payment under the conservation 
                reserve contract.
    (c) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base acres for a 
        farm, together with the acreage described in paragraph (2), 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the quantity of base acres for 1 or more covered 
        commodities for the farm as necessary so that the sum of the 
        base acres and acreage described in paragraph (2) does not 
        exceed the actual cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include--
                    (A) any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.); 
                and
                    (B) any other acreage on the farm enrolled in a 
                voluntary conservation program under which production 
                of any agricultural commodity is prohibited.
            (3) Double-cropped acreage.--In applying paragraph (1), the 
        Secretary shall take into account additional acreage as a 
        result of an established double-cropping history on a farm, as 
        determined by the Secretary.

SEC. 115. DIRECT PAYMENTS.

    (a) In General.--For each of the 2003 through 2006 fiscal years, 
the Secretary shall make direct payments available to producers on a 
farm that have entered into a contract under section 111.
    (b) Payment Amount.--The amount of a direct payment to be paid to 
the producers on a farm for a covered commodity for a fiscal year shall 
be obtained by multiplying--
            (1) the payment rate specified in subsection (c);
            (2) the base acres for the covered commodity on the farm; 
        and
            (3) the payment yield for the covered commodity for the 
        farm.
    (c) Payment Rate.--The payment rates used to make direct payments 
with respect to covered commodities for a fiscal year are as follows:
            (1) Wheat, $0.247 per bushel.
            (2) Corn, $0.150 per bushel.
            (3) Grain sorghum, $0.170 per bushel.
            (4) Barley, $0.177 per bushel.
            (5) Oats, $0.127 per bushel.
            (6) Upland cotton, $0.046 per pound.
            (7) Rice, $0.590 per hundredweight.
            (8) Soybeans, $0.250 per bushel.
            (9) Oilseeds (other than soybeans), $0.0057 per pound.
    (d) Time for Payment.--The Secretary shall make direct payments for 
each of the 2003 through 2006 fiscal years not later than September 30 
of the fiscal year.

SEC. 116. COUNTER-CYCLICAL PAYMENTS.

    (a) Target and Total Revenues.--
            (1) In general.--For each of the 2002 through 2006 crop 
        years, the Secretary shall make counter-cyclical payments to 
        producers on farms of a covered commodity if--
                    (A) the total revenue per planted acre of a covered 
                commodity for the crop year determined under paragraph 
                (3); is less than
                    (B) the target revenue per planted acre of the 
                covered commodity determined under paragraph (2).
            (2) Target revenue.--
                    (A) In general.--Subject to subparagraph (B), the 
                target revenue per planted acre of the covered 
                commodity shall be as follows:
                            (i) Wheat, $120.00 per planted acre.
                            (ii) Corn, $272.00 per planted acre.
                            (iii) Grain sorghum, $130.00 per planted 
                        acre.
                            (iv) Barley, $122.00 per planted acre.
                            (v) Oats, $46.00 per planted acre.
                            (vi) Upland cotton, $360.00 per planted 
                        acre.
                            (vii) Rice, $475.00 per planted acre.
                            (viii) Soybeans, $215.00 per planted acre.
                            (ix) Oilseeds (other than soybeans), 
                        $133.00 per planted acre.
                    (B) Adjustment.--For each of the 2003 through 2006 
                crop years, not later than December 31 of the 
                applicable year, the Secretary shall adjust the target 
                revenue per planted acre of a covered commodity to 
                reflect changes in the Prices Paid by Farmers Index, as 
                determined by the Secretary, since the 2002 calendar 
                year.
            (3) Total revenue.--
                    (A) In general.--For each of the 2002 through 2006 
                crop years, the Secretary shall determine the total 
                revenue per planted acre of a covered commodity for the 
                crop year.
                    (B) Amount.--The amount of total revenue per 
                planted acre from each covered commodity for a crop 
                year shall equal--
                            (i) the amount obtained by multiplying--
                                    (I) the average price received by 
                                all farms for the crop of the covered 
                                commodity produced, as determined under 
                                subparagraph (C); by
                                    (II) the quantity of the crop of 
                                the covered commodity produced by all 
                                farms; divided by
                            (ii) the number of acres planted or 
                        considered to the covered commodity.
                    (C) Average price.--The average price of each 
                covered commodity produced under subparagraph (B)(i) 
                for a crop year shall equal the greater of--
                            (i) the loan rate for the crop of the 
                        covered commodity established under section 
                        132; or
                            (ii) the simple average price received for 
                        the crop of the covered commodity for the 
                        marketing year for the crop.
    (b) Counter-Cyclical Payments to Producers.--
            (1) In general.--If the total revenue per planted acre of a 
        covered commodity for a crop year is less than the target 
        revenue per planted acre of the covered commodity, the 
        Secretary shall make payments to eligible producers on a farm 
        of the covered commodity.
            (2) Amount.--The amount of the payments made to eligible 
        producers on a farm for a crop year under this subsection shall 
        equal the amount obtained by multiplying--
                    (A) the payment rate for the covered commodity for 
                the crop year determined under subsection (c); by
                    (B) the payment quantity for the covered commodity 
                for the farm for the crop year determined under 
                subsection (d).
    (c) Payment Rate.--
            (1) In general.--The payment rate for a covered commodity 
        for a crop year under subsection (b)(2)(A) shall equal--
                    (A) the revenue deficiency of the covered commodity 
                for the crop year determined under paragraph (2); 
                divided by
                    (B) the total contract production of the covered 
                commodity for the crop year determined under paragraph 
                (3).
            (2) Revenue deficiency.--
                    (A) In general.--The amount of the revenue 
                deficiency for a covered commodity for a crop year 
                under paragraph (1)(A) shall equal the difference 
                between--
                            (i) the target revenue from the covered 
                        commodity for all farms determined under 
                        subparagraph (B); and
                            (ii) the total revenue from the covered 
                        commodity derived for all farms for a crop year 
                        determined under subparagraph (C).
                    (B) Target revenue for all farms.--The target 
                revenue for a covered commodity for all farms for a 
                crop year shall equal the amount obtained by 
                multiplying--
                            (i) the target revenue per acre for the 
                        covered commodity determined under subsection 
                        (a)(2); by
                            (ii) the base acres attributable to the 
                        covered commodity.
                    (C) Total revenue for all farms.--The total revenue 
                for a covered commodity for all farms for a crop year 
                shall equal the amount obtained by multiplying--
                            (i) the total revenue per acre for the 
                        covered commodity determined under subsection 
                        (a)(3); by
                            (ii) the base acres attributable to the 
                        covered commodity.
            (3) Total contract production.--The contract production of 
        a covered commodity for all farms for a crop year under 
        paragraph (1)(B) shall equal the amount obtained by 
        multiplying--
                    (A) the base acres attributable to the covered 
                commodity for all farms that are covered by a contract; 
                by
                    (B) the average payment yield for all farms for the 
                covered commodity determined under section 113.
    (d) Payment Quantity.--The payment quantity for the covered 
commodity for the farm for the crop year under subsection (b)(2)(B) 
shall equal the amount obtained by multiplying--
            (1) the base acres attributable to the covered commodity 
        for the farm; by
            (2) the payment yield established under section 113 for the 
        farm for a covered commodity.
    (e) Time for Payments.--
            (1) Initial payment.--
                    (A) In general.--At the option of the producers on 
                a farm, the Secretary shall pay 50 percent of the 
                estimated counter-cyclical payment for a crop of a 
                covered commodity for the producers on the farm on a 
                date determined by the Secretary that is not later than 
                180 days after the beginning of the marketing year for 
                the covered commodity.
                    (B) Overestimated payments.--If the amount of the 
                estimated counter-cyclical payment paid to producers on 
                a farm for a crop of a covered commodity under 
                subparagraph (A) exceeds the total amount of the 
                counter-cyclical payment that is payable to the 
                producers on the farm for the crop of the covered 
                commodity under subsection (b)(2), the producers on the 
                farm shall not be required to repay to the Secretary 
                the amount of any overpayment.
            (2) Final payment.--The Secretary shall pay the final 
        amount of the counter-cyclical payment that is payable to the 
        producers on a farm for the crop of a covered commodity under 
        subsection (b)(2) (less the amount of any initial payment made 
        to the producers on the farm for the crop of the covered 
        commodity under paragraph (1)) during the period beginning 31 
        days, and ending 60 days, after the end of the marketing year 
        for the covered commodity.

SEC. 117. PRODUCER AGREEMENTS.

    (a) Compliance With Certain Requirements.--Before the producers on 
a farm may receive contract payments with respect to the farm, the 
producers on the farm shall agree during the fiscal year or crop year, 
as applicable, for which the payments are received, in exchange for the 
payments--
            (1) to comply with applicable highly erodible land 
        conservation requirements under subtitle B of title XII of the 
        Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
            (2) to comply with applicable wetland conservation 
        requirements under subtitle C of title XII of that Act (16 
        U.S.C. 3821 et seq.);
            (3) to comply with the planting flexibility requirements of 
        section 118; and
            (4) to use a quantity of land on the farm equal to the base 
        acres, for an agricultural or conserving use, and not for a 
        nonagricultural commercial or industrial use, as determined by 
        the Secretary.
    (b) Foreclosures.--
            (1) In general.--The Secretary shall not require the 
        producers on a farm to repay a contract payment if the farm has 
        been foreclosed on and the Secretary determines that forgiving 
        the repayment is appropriate to provide fair and equitable 
        treatment.
            (2) Compliance with requirements.--
                    (A) In general.--This subsection shall not void the 
                responsibilities of the producers on a farm under 
                subsection (a) if the producers on the farm continue or 
                resume operation, or control, of the farm.
                    (B) Applicable requirements.--On the resumption of 
                operation or control over the farm by the producers on 
                the farm, the requirements of subsection (a) in effect 
                on the date of the foreclosure shall apply.
    (c) Transfer or Change of Interest in Farm.--
            (1) Termination.--Except as provided in paragraph (5), a 
        transfer of (or change in) the interest of the producers on a 
        farm in base acres for which contract payments are made shall 
        result in the termination of the payments with respect to the 
        base acres, unless the transferee or owner of the acreage 
        agrees to assume all obligations under subsection (a).
            (2) Effective date.--The termination takes effect on the 
        date of the transfer or change.
            (3) Transfer of payment base and yield.--There is no 
        restriction on the transfer of the base acres or payment yield 
        of a farm as part of a transfer or change described in 
        paragraph (1).
            (4) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of subsection 
        (a) if the modifications are consistent with the objectives of 
        subsection (a), as determined by the Secretary.
            (5) Exception.--If a producer entitled to a contract 
        payment dies, becomes incompetent, or is otherwise unable to 
        receive the payment, the Secretary shall make the payment, in 
        accordance with regulations promulgated by the Secretary.
    (d) Review.--A determination of the Secretary under this section 
shall be considered to be an adverse decision for purposes of the 
availability of administrative review of the determination.

SEC. 118. PLANTING FLEXIBILITY.

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

SEC. 119. PAYMENT LIMITATIONS.

    (a) In General.--The total amount of contract payments made 
directly or indirectly to an individual or entity during any applicable 
year may not exceed $100,000.
    (b) Administration.--Notwithstanding section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308), sections 1001A(b), 1001B, and 
1001C of that Act (7 U.S.C. 1308-1(b), 1308-2, 1308-3) shall apply to 
an individual or entity that receives a contract payment.

             Subtitle B--Loans and Loan Deficiency Payments

SEC. 131. AVAILABILITY OF MARKETING LOANS.

    (a) Loans Available.--
            (1) In general.--Subject to section 140, for each of the 
        2002 through 2006 crops of each loan commodity, the Secretary 
        shall make available to producers on a farm nonrecourse 
        marketing loans for loan commodities produced on the farm.
            (2) Terms and conditions.--The loans shall be made under 
        terms and conditions that are prescribed by the Secretary and 
        at the loan rate established under section 132 for the loan 
        commodity.
    (b) Eligible Production.--
            (1) In general.--Subject to section 140, the producers on a 
        farm shall be eligible for a marketing loan under subsection 
        (a) for any quantity of loan commodities produced on the farm 
        that does not exceed 175,000 loan units determined under 
        paragraph (2).
            (2) Loan units.--For purposes of paragraph (1)--
                    (A) each bushel of wheat placed under loan by a 
                producer shall be considered 0.875 loan units;
                    (B) each bushel of corn placed under loan by a 
                producer shall be considered 0.5 loan units;
                    (C) each bushel of grain sorghum placed under loan 
                by a producer shall be considered 0.875 loan units;
                    (D) each bushel of barley placed under loan by a 
                producer shall be considered 0.73 loan units;
                    (E) each bushel of oats placed under loan by a 
                producer shall be considered 1.75 loan units;
                    (F) each pound of upland cotton placed under loan 
                by a producer shall be considered 0.07609 loan units;
                    (G) each hundredweight of rice placed under loan by 
                a producer shall be considered 2.33333 loan units;
                    (H) each bushel of soybeans placed under loan by a 
                producer shall be considered 1 loan unit;
                    (I) each pound of oilseeds (other than soybeans) 
                placed under loan by a producer shall be considered 
                0.0875 loan units;
                    (J) each bushel of extra long staple cotton placed 
                under loan by a producer shall be considered 0.07609 
                loan units;
                    (K) each pound of wool placed under loan by a 
                producer shall be considered 4.375 loan units;
                    (L) each pound of mohair placed under loan by a 
                producer shall be considered 4.375 loan units;
                    (M) each pound of honey placed under loan by a 
                producer shall be considered 1.75 loan units;
                    (N) each pound of dry peas placed under loan by a 
                producer shall be considered 12.5 loan units;
                    (O) each pound of lentils placed under loan by a 
                producer shall be considered 12.5 loan units; and
                    (P) each pound of chickpeas placed under loan by a 
                producer shall be considered 12.5 loan units.
    (c) Compliance With Conservation Requirements.--As a condition of 
the receipt of a marketing loan under subsection (a), the producers on 
a farm shall comply with--
            (1) applicable highly erodible land conservation 
        requirements under subtitle B of title XII of the Food Security 
        Act of 1985 (16 U.S.C. 3811 et seq.); and
            (2) applicable wetland conservation requirements under 
        subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).

SEC. 132. LOAN RATES FOR MARKETING LOANS.

    (a) In General.--Subject to subsection (b) and section 137, the 
loan rate for a loan commodity under section 131 shall be--
            (1) in the case of wheat, $2.94 per bushel;
            (2) in the case of corn, $2.05 per bushel;
            (3) in the case of grain sorghum, $1.98 per bushel;
            (4) in the case of barley, $1.98 per bushel;
            (5) in the case of oats, $1.30 per bushel;
            (6) in the case of upland cotton, $0.545 per pound;
            (7) in the case of rice, $6.90 per hundredweight;
            (8) in the case of soybeans, $5.20 per bushel;
            (9) in the case of oilseeds (other than soybeans), $0.093 
        per pound;
            (10) in the case of extra long staple cotton, $0.7965 per 
        pound;
            (11) in the case of graded wool, $1.00 per pound;
            (12) in the case of nongraded wool, $0.40 per pound;
            (13) in the case of mohair, $4.20 per pound;
            (14) in the case of honey, $0.60 per pound;
            (15) in the case of dry peas, $6.64 per hundredweight;
            (16) in the case of lentils, $12.53 per hundredweight;
            (17) in the case of large chickpeas, $17.09 per 
        hundredweight; and
            (18) in the case of small chickpeas, $7.94 per 
        hundredweight.
    (b) Adjustments.--
            (1) In general.--The Secretary may make appropriate 
        adjustments in the loan rates for any loan commodity for 
        differences in grade, type, quality, location, and other 
        factors.
            (2) Manner.--The adjustments under this subsection shall, 
        to the maximum extent practicable, be made in such manner that 
        the average loan rate for the loan commodity will, on the basis 
        of the anticipated incidence of the factors described in 
        paragraph (1), be equal to the loan rate provided under this 
        section.

SEC. 133. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity, a marketing 
loan under section 131 shall have a term of 9 months beginning on the 
first day of the first month after the month in which the loan is made.
    (b) Extensions.--The Secretary may allow the producers on a farm to 
extend the term of a marketing loan for any loan commodity for 1 
additional 9-month term.

SEC. 134. REPAYMENT OF LOANS.

    (a) Repayment Rates for Loan Commodities (Other Than Cotton and 
Rice).--The Secretary shall permit the producers on a farm to repay a 
marketing loan under section 131 for a loan commodity (other than 
upland cotton, rice, and extra long staple cotton) at a rate that is 
the lesser of--
            (1) the loan rate established for the commodity under 
        section 132, plus interest (as determined by the Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity;
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally; and
                    (E) minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries.
    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary 
shall permit producers on a farm to repay a marketing loan under 
section 131 for upland cotton and rice at a rate that is the lesser 
of--
            (1) the loan rate established for the commodity under 
        section 132, plus interest (as determined by the Secretary); or
            (2) the prevailing world market price for the commodity 
        (adjusted to United States quality and location), as determined 
        by the Secretary.
    (c) Repayment Rate for Extra Long Staple Cotton.--Repayment of a 
loan for extra long staple cotton shall be at the loan rate established 
for the commodity under section 131, plus interest (as determined by 
the Secretary).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 136, the Secretary shall prescribe by regulation--
            (1) a formula to determine the prevailing world market 
        price for each loan commodity, adjusted to United States 
        quality and location; and
            (2) a mechanism by which the Secretary shall announce 
        periodically the prevailing world market price for each loan 
        commodity.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period ending July 31, 2007, 
        the prevailing world market price for upland cotton (adjusted 
        to United States quality and location) established under 
        subsection (c) shall be further adjusted if--
                    (A) the adjusted prevailing world market price is 
                less than 115 percent of the loan rate for upland 
                cotton established under section 132, as determined by 
                the Secretary; and
                    (B) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth as 
                quoted for Middling (M) 1\3/32\-inch cotton delivered 
                C.I.F. Northern Europe is greater than the Friday 
                through Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for Middling (M) 
                1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
                (referred to in this subsection as the ``Northern 
                Europe price'').
            (2) Further adjustment.--Except as provided in paragraph 
        (3), the adjusted prevailing world market price for upland 
        cotton shall be further adjusted on the basis of some or all of 
        the following data, as available:
                    (A) The United States share of world exports.
                    (B) The current level of cotton export sales and 
                cotton export shipments.
                    (C) Other data determined by the Secretary to be 
                relevant in establishing an accurate prevailing world 
                market price for upland cotton (adjusted to United 
                States quality and location).
            (3) Limitation on further adjustment.--The adjustment under 
        paragraph (2) may not exceed the difference between--
                    (A) the Friday through Thursday average price for 
                the lowest-priced United States growth as quoted for 
                Middling 1\3/32\-inch cotton delivered C.I.F. Northern 
                Europe; and
                    (B) the Northern Europe price.

SEC. 135. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--The Secretary may 
make loan deficiency payments available to producers on a farm that 
produce a loan commodity.
    (b) Computation.--A loan deficiency payment under this section 
shall be obtained by multiplying--
            (1) the loan payment rate determined under subsection (c) 
        for the loan commodity; by
            (2) the quantity of the loan commodity produced by the 
        producers on the farm that could be placed under loan under 
        section 131, excluding any quantity for which the producers on 
        the farm obtain a loan under section 131.
    (c) Loan Payment Rate.--For purposes of this section, the loan 
payment rate shall be the amount by which--
            (1) the loan rate established under section 132 for the 
        loan commodity; exceeds
            (2) the rate at which a loan for the commodity may be 
        repaid under section 134.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
    (e) Beneficial Interest.--A producer shall be eligible for a 
payment under this section only if the producers on the farm have a 
beneficial interest in the loan commodity, as determined by the 
Secretary.

SEC. 136. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--During the period beginning on the date of 
        enactment of this Act and ending July 31, 2007, the Secretary 
        shall issue marketing certificates or cash payments, at the 
        option of the recipient, to domestic users and exporters for 
        documented purchases by domestic users and sales for export by 
        exporters made in the week following a consecutive 4-week 
        period in which--
                    (A) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C.I.F. Northern Europe exceeds the Northern 
                Europe price by more than 1.25 cents per pound; and
                    (B) the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                does not exceed 134 percent of the loan rate for upland 
                cotton established under section 132.
            (2) Value of certificates or payments.--The value of the 
        marketing certificates or cash payments shall be based on the 
        amount of the difference (reduced by 1.25 cents per pound) in 
        the prices during the 4th week of the consecutive 4-week period 
        multiplied by the quantity of upland cotton included in the 
        documented sales.
            (3) Administration of marketing certificates.--
                    (A) Redemption, marketing, or exchange.--
                            (i) In general.--The Secretary shall 
                        establish procedures for redeeming marketing 
                        certificates for cash or marketing or exchange 
                        of the certificates for agricultural 
                        commodities owned by the Commodity Credit 
                        Corporation or pledged to the Commodity Credit 
                        Corporation as collateral for a loan in such 
                        manner, and at such price levels, as the 
                        Secretary determines will best effectuate the 
                        purposes of cotton user marketing certificates, 
                        including enhancing the competitiveness and 
                        marketability of United States cotton.
                            (ii) Price restrictions.--Any price 
                        restrictions that would otherwise apply to the 
                        disposition of agricultural commodities by the 
                        Commodity Credit Corporation shall not apply to 
                        the redemption of certificates under this 
                        subsection.
                    (B) Designation of commodities and products.--To 
                the extent practicable, the Secretary shall permit 
                owners of certificates to designate the commodities and 
                products, including storage sites, the owners would 
                prefer to receive in exchange for certificates.
                    (C) Transfers.--Marketing certificates issued to 
                domestic users and exporters of upland cotton may be 
                transferred to other persons in accordance with 
                regulations promulgated by the Secretary.
    (b) Special Import Quota.--
            (1) Establishment.--
                    (A) In general.--The President shall carry out an 
                import quota program during the period beginning on the 
                date of enactment of this Act and ending July 31, 2007, 
                as provided in this subsection.
                    (B) Program requirements.--Except as provided in 
                subparagraph (C), whenever the Secretary determines and 
                announces that for any consecutive 4-week period, the 
                Friday through Thursday average price quotation for the 
                lowest-priced United States growth, as quoted for 
                Middling (M) 1\3/32\-inch cotton, delivered C.I.F. 
                Northern Europe, adjusted for the value of any 
                certificate issued under subsection (a), exceeds the 
                Northern Europe price by more than 1.25 cents per 
                pound, there shall immediately be in effect a special 
                import quota.
                    (C) Tight domestic supply.--During any month for 
                which the Secretary estimates the season-ending United 
                States upland cotton stocks-to-use ratio, as determined 
                under subparagraph (D), to be below 16 percent, the 
                Secretary, in making the determination under 
                subparagraph (B), shall not adjust the Friday through 
                Thursday average price quotation for the lowest-priced 
                United States growth, as quoted for Middling (M) 1\3/
                32\-inch cotton, delivered C.I.F. Northern Europe, for 
                the value of any certificates issued under subsection 
                (a).
                    (D) Season-ending united states stocks-to-use 
                ratio.--For the purposes of making estimates under 
                subparagraph (C), the Secretary shall, on a monthly 
                basis, estimate and report the season-ending United 
                States upland cotton stocks-to-use ratio, excluding 
                projected raw cotton imports but including the quantity 
                of raw cotton that has been imported into the United 
                States during the marketing year.
            (2) Quantity.--The quota shall be equal to 1 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 months 
        for which data are available.
            (3) Application.--The quota shall apply to upland cotton 
        purchased not later than 90 days after the date of the 
        Secretary's announcement under paragraph (1) and entered into 
        the United States not later than 180 days after that date.
            (4) Overlap.--A special quota period may be established 
        that overlaps any existing quota period if required by 
        paragraph (1), except that a special quota period may not be 
        established under this subsection if a quota period has been 
        established under subsection (c).
            (5) Preferential tariff treatment.--The quantity under a 
        special import quota shall be considered to be an in-quota 
        quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade Preference Act 
                (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 (19 
                U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized Tariff 
                Schedule.
            (6) Limitation.--The quantity of cotton entered into the 
        United States during any marketing year under the special 
        import quota established under this subsection may not exceed 
        the equivalent of 5 week's consumption of upland cotton by 
        domestic mills at the seasonally adjusted average rate of the 3 
        months immediately preceding the first special import quota 
        established in any marketing year.
            (7) Definition of special import quota.--In this 
        subsection, the term ``special import quota'' means a quantity 
        of imports that is not subject to the over-quota tariff rate of 
        a tariff-rate quota.
    (c) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an import 
        quota program that provides that whenever the Secretary 
        determines and announces that the average price of the base 
        quality of upland cotton, as determined by the Secretary, in 
        the designated spot markets for a month exceeded 130 percent of 
        the average price of such quality of cotton in the markets for 
        the preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' means, 
                        using the latest official data of the Bureau of 
                        the Census, the Department of Agriculture, and 
                        the Department of the Treasury--
                                    (I) the carry-over of upland cotton 
                                at the beginning of the marketing year 
                                (adjusted to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the current 
                                crop; and
                                    (III) imports to the latest date 
                                available during the marketing year.
                            (ii) Demand.--The term ``demand'' means--
                                    (I) the average seasonally adjusted 
                                annual rate of domestic mill 
                                consumption during the most recent 3 
                                months for which data are available; 
                                and
                                    (II) the larger of--
                                            (aa) average exports of 
                                        upland cotton during the 
                                        preceding 6 marketing years; or
                                            (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                            (iii) Limited global import quota.--The 
                        term ``limited global import quota'' means a 
                        quantity of imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (b).

SEC. 137. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other provision 
of law, during the period beginning on October 1, 2002, and ending on 
July 31, 2007, the Secretary shall carry out a program--
            (1) to maintain and expand the domestic use of extra long 
        staple cotton produced in the United States;
            (2) to increase exports of extra long staple cotton 
        produced in the United States; and
            (3) to ensure that extra long staple cotton produced in the 
        United States remains competitive in world markets.
    (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
            (1) for a consecutive 4-week period, the world market price 
        for the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is below the prevailing United 
        States price for a competing growth of extra long staple 
        cotton; and
            (2) the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is less than 134 percent of the 
        loan rate for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long staple 
cotton produced in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the program under 
this section.
    (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive 4-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive 4-week period.
    (e) Form of Payment.--Payments under this section shall be made 
through the issuance of cash or marketing certificates, at the option 
of eligible recipients of the payments.

SEC. 138. HIGH MOISTURE FEED GRAINS.

    (a) Definition of High Moisture State.--In this section, the term 
``high moisture state'' means corn or grain sorghum having a moisture 
content in excess of Commodity Credit Corporation standards for 
marketing loans made by the Secretary under section 131.
    (b) Recourse Loans.--For each of the 2002 through 2006 crops of 
corn and grain sorghum, the Secretary shall make available recourse 
loans, as determined by the Secretary, to producers on a farm 
containing eligible cropland that--
            (1) normally harvest all or a portion of their crop of corn 
        or grain sorghum in a high moisture state;
            (2) present--
                    (A) certified scale tickets from an inspected, 
                certified commercial scale, including a licensed 
                warehouse, feedlot, feed mill, distillery, or other 
                similar entity approved by the Secretary, pursuant to 
                regulations promulgated by the Secretary; or
                    (B) field or other physical measurements of the 
                standing or stored crop in regions of the United 
                States, as determined by the Secretary, that do not 
                have certified commercial scales from which certified 
                scale tickets may be obtained within reasonable 
                proximity of harvest operation;
            (3) certify that they were the owners of the feed grain at 
        the time of delivery to, and that the quantity to be placed 
        under loan under this subsection was in fact harvested on the 
        farm and delivered to, a feedlot, feed mill, or commercial or 
        on-farm high-moisture storage facility, or to a facility 
        maintained by the users of corn and grain sorghum in a high 
        moisture state; and
            (4) comply with deadlines established by the Secretary for 
        harvesting the corn or grain sorghum and submit applications 
        for loans under this section within deadlines established by 
        the Secretary.
    (c) Eligibility of Acquired Feed Grains.--A loan under this section 
shall be made on a quantity of corn or grain sorghum of the same crop 
acquired by the producers on the farm equivalent to a quantity obtained 
by multiplying--
            (1) the acreage of the corn or grain sorghum in a high 
        moisture state harvested on the farm; by
            (2) the lower of the farm program payment yield or the 
        actual yield on a field, as determined by the Secretary, that 
        is similar to the field from which the corn or grain sorghum 
        was obtained.
    (d) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (as determined by the Secretary).

SEC. 139. SEED COTTON.

    (a) In General.--For each of the 2002 through 2006 crops of upland 
cotton and extra long staple cotton, the Secretary shall make available 
recourse seed cotton loans, as determined by the Secretary, on any 
production.
    (b) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (as determined by the Secretary).

SEC. 140. PRODUCER ELECTION FOR 2002 CROP.

    (a) In General.--Notwithstanding subtitle C of title I of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231 
et seq.), not later than 90 days after the date of enactment of this 
Act, an eligible owner or producer that entered into a production 
flexibility contract under section 111 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7211) that is effect for 
the 2002 crop may elect to--
            (1) receive marketing assistance loans and loan deficiency 
        payments for the 2002 crop in accordance with subtitle C of 
        title I of that Act (7 U.S.C. 7231 et seq.); or
            (2) receive marketing assistance loans and loan deficiency 
        payments for the 2002 crop in accordance with this chapter.
    (b) Conforming Amendments.--
            (1) Section 131(a) of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7231(a)) is amended by 
        striking ``For'' and inserting ``Subject to section 140 of the 
        Agriculture, Conservation, and Rural Enhancement Act of 2001, 
        for''.
            (2) Section 135(a) of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7235(a)) is amended by 
        inserting ``and section 140 of the Agriculture, Conservation, 
        and Rural Enhancement Act of 2001'' after ``subsection (d)''.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 151. MILK PRICE SUPPORT PROGRAM.

    (a) In General.--During the period beginning on January 1, 2002, 
and ending on December 31, 2006, the Secretary shall support the price 
of milk produced in the 48 contiguous States through the purchase of 
cheese, butter, and nonfat dry milk produced from the milk.
    (b) Rate.--During the period specified in subsection (a), the price 
of milk shall be supported at a rate equal to $9.90 per hundredweight 
for milk containing 3.67 percent butterfat.
    (c) Purchase Prices.--
            (1) Uniform prices.--The support purchase prices under this 
        section for each of the products of milk (butter, cheese, and 
        nonfat dry milk) announced by the Secretary shall be the same 
        for all of that product sold by persons offering to sell the 
        product to the Secretary.
            (2) Amount.--The purchase prices shall be sufficient to 
        enable plants of average efficiency to pay producers, on 
        average, a price that is not less than the rate of price 
        support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
            (1) Allocation of purchase prices.--The Secretary may 
        allocate the rate of price support between the purchase prices 
        for nonfat dry milk and butter in a manner that will result in 
        the lowest level of expenditures by the Commodity Credit 
        Corporation or achieve such other objectives as the Secretary 
        considers appropriate.
            (2) Notification of congress.--Not later than 10 days after 
        making or changing an allocation, the Secretary shall notify 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate of the allocation.
            (3) Administration.--Section 553 of title 5, United States 
        Code, shall not apply with respect to the implementation of 
        this section.
            (4) Timing of purchase price adjustments.--The Secretary 
        may make any such adjustments in the purchase prices for nonfat 
        dry milk and butter the Secretary considers to be necessary not 
        more than twice in each calendar year.

SEC. 152. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking 
``2002'' and inserting ``2006''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``1995'' and inserting ``2006''.

SEC. 153. FLUID MILK PROMOTION.

    (a) Definition of Fluid Milk Product.--Section 1999C of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking 
paragraph (3) and inserting the following:
            ``(3) Fluid milk product.--The term `fluid milk product' 
        has the meaning given the term in--
                    ``(A) section 1000.15 of title 7, Code of Federal 
                Regulations, subject to such amendments as may be made 
                by the Secretary; or
                    ``(B) any successor regulation providing a 
                definition of that term that is promulgated pursuant to 
                the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
                reenacted with amendments by the Agricultural Marketing 
                Agreement Act of 1937.''.
    (b) Definition of Fluid Milk Processor.--Section 1999C(4) of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by 
striking ``500,000'' and inserting ``3,000,000''.
    (c) Elimination of Order Termination Date.--Section 1999O of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.

SEC. 154. DAIRY PRODUCT MANDATORY REPORTING.

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

SEC. 155. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Definitions.--Section 111 of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4502) is amended--
            (1) in subsection (k), by striking ``and'' at the end;
            (2) in subsection (l), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(m) the term `imported dairy product' means any dairy 
        product that is imported into the United States, including 
        dairy products imported into the United States in the form of--
                    ``(1) milk, cream, and fresh and dried dairy 
                products;
                    ``(2) butter and butterfat mixtures;
                    ``(3) cheese; and
                    ``(4) casein and mixtures;
            ``(n) the term `importer' means a person that imports an 
        imported dairy product into the United States; and
            ``(o) the term `Customs' means the United States Customs 
        Service.''.
    (b) Representation of Importers on Board.--Section 113(b) of the 
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is 
amended--
            (1) by inserting ``National Dairy Promotion and Research 
        Board.--'' after ``(b)'';
            (2) by designating the first through ninth sentences as 
        paragraphs (1) through (5) and paragraphs (7) through (10), 
        respectively, and indenting the paragraphs appropriately;
            (3) in paragraph (2) (as so designated), by striking 
        ``Members'' and inserting ``Except as provided in paragraph 
        (6), the members''; and
            (4) by inserting after paragraph (5) (as so designated) the 
        following:
            ``(6) Importers.--
                    ``(A) Representation.--The Secretary shall appoint 
                not more than 2 members who represent importers of 
                dairy products and are subject to assessments under the 
                order, to reflect the proportion of domestic production 
                and imports supplying the United States market, as 
                determined by the Secretary on the basis of the average 
                volume of domestic production of dairy products in 
                proportion to the average volume of imports of dairy 
                products in the United States during the previous 3 
                years.
                    ``(B) Additional members; nominations.--The members 
                appointed under this paragraph--
                            ``(i) shall be in addition to the total 
                        number of members appointed under paragraph 
                        (2); and
                            ``(ii) shall be appointed from nominations 
                        submitted by importers under such procedures as 
                        the Secretary determines to be appropriate.''.
    (c) Importer Assessment.--Section 113(g) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--
            (1) by inserting ``Assessments.--'' after ``(g)'';
            (2) by designating the first through fifth sentences as 
        paragraphs (1) through (5), respectively, and indenting 
        appropriately; and
            (3) by adding at the end the following:
            ``(6) Importers.--
                    ``(A) In general.--The order shall provide that 
                each importer of imported dairy products shall pay an 
                assessment to the Board in the manner prescribed by the 
                order.
                    ``(B) Time for payment.--
                            ``(i) In general.--The assessment on 
                        imported dairy products shall be--
                                    ``(I) paid by the importer to 
                                Customs at the time of the entry of the 
                                products into the United States; and
                                    ``(II) remitted by Customs to the 
                                Board.
                            ``(ii) Time of entry.--For purposes of this 
                        subparagraph, entry of the products into the 
                        United States shall be considered to have 
                        occurred when the dairy products are released 
                        from custody of Customs and introduced into the 
                        stream of commerce within the United States.
                            ``(iii) Importers.--For purposes of this 
                        subparagraph, importers include--
                                    ``(I) persons that hold title to 
                                foreign-produced dairy products 
                                immediately on release by Customs; and
                                    ``(II) persons that act on behalf 
                                of others, as agents, brokers, or 
                                consignees, to secure the release of 
                                dairy products from Customs and 
                                introduce the released dairy products 
                                into the stream of commerce.
                    ``(C) Rate.--The rate of assessment on imported 
                dairy products shall be determined in the same manner 
                as the rate of assessment per hundredweight or the 
                equivalent of milk.
                    ``(D) Value of products.--For the purpose of 
                determining the assessment on imported dairy products 
                under subparagraph (C), the value to be placed on 
                imported dairy products shall be established by the 
                Secretary in a fair and equitable manner.
                    ``(E) Use of assessments on imported dairy 
                products.--Assessments collected on imported dairy 
                products shall not be used for foreign market promotion 
                of United States dairy products.''.
    (d) Records.--Section 113(k) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by 
striking ``person receiving'' and inserting ``importer of imported 
dairy products, each person receiving''.
    (e) Importer Eligibility To Vote in Referendum.--Section 116(b) of 
the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is 
amended--
            (1) in the first sentence, by inserting ``and importers'' 
        after ``producers'' each place it appears;
            (2) in the second sentence, by inserting after ``commercial 
        use'' the following: ``and importers voting in the referendum 
        (that have been engaged in the importation of dairy products 
        during the same representative period, as determined by the 
        Secretary)''.
    (f) Conforming Amendments.--Section 110(b) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended--
            (1) in the first sentence--
                    (A) by inserting after ``commercial use'' the 
                following: ``and on imported dairy products''; and
                    (B) by striking ``products produced in the United 
                States.'' and inserting ``products.''; and
            (2) in the second sentence, by inserting after ``produce 
        milk'' the following: ``or the right of any person to import 
        dairy products''.

                            CHAPTER 2--SUGAR

SEC. 161. SUGAR PROGRAM.

    (a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 18 cents 
per pound for raw cane sugar.
    (b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 22.9 
cents per pound for refined beet sugar.
    (c) Loan Rate Adjustments.--
            (1) Definitions.--In this subsection:
                    (A) Agreement on agriculture.--The term ``Agreement 
                on Agriculture'' means the Agreement on Agriculture 
                referred to in section 101(d)(2) of the Uruguay Round 
                Agreements Act (19 U.S.C. 3511(d)(2)).
                    (B) Major sugar countries.--The term ``major sugar 
                growing, producing, and exporting countries'' means--
                            (i) the countries of the European Union; 
                        and
                            (ii) the 10 foreign countries not covered 
                        by subparagraph (A) that the Secretary 
                        determines produce the greatest quantity of 
                        sugar.
            (2) Adjustments.--The Secretary may reduce the loan rate 
        specified in subsection (a) for domestically grown sugarcane 
        and subsection (b) for domestically grown sugar beets if the 
        Secretary determines that negotiated reductions in export 
        subsidies and domestic subsidies provided for sugar of other 
        major sugar growing, producing, and exporting countries in the 
        aggregate exceed the commitments made as part of the Agreement 
        on Agriculture.
            (3) Extent of reduction.--The Secretary shall not reduce 
        the loan rate under subsection (a) or (b) below a rate that 
        provides an equal measure of support to that provided by other 
        major sugar growing, producing, and exporting countries, based 
        on an examination of both domestic and export subsidies subject 
        to reduction in the Agreement on Agriculture.
            (4) Announcement of reduction.--The Secretary shall 
        announce any loan rate reduction to be made under this 
        subsection as far in advance as is practicable.
    (d) Term of Loans.--
            (1) In general.--A loan under this section during any 
        fiscal year shall be made available not earlier than the 
        beginning of the fiscal year and shall mature at the earlier 
        of--
                    (A) the end of the 9-month period beginning on the 
                first day of the first month after the month in which 
                the loan is made; or
                    (B) the end of the fiscal year in which the loan is 
                made.
            (2) Supplemental loans.--In the case of a loan made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second 
        loan in the subsequent fiscal year, except that the second loan 
        shall--
                    (A) be made at the loan rate in effect at the time 
                the second loan is made; and
                    (B) mature in 9 months less the quantity of time 
                that the first loan was in effect.
    (e) Loan Type; Processor Assurances.--
            (1) Nonrecourse loans.--The Secretary shall carry out this 
        section through the use of nonrecourse loans.
            (2) Processor assurances.--
                    (A) In general.--The Secretary shall obtain from 
                each processor that receives a loan under this section 
                such assurances as the Secretary considers adequate to 
                ensure that the processor will provide payments to 
                producers that are proportional to the value of the 
                loan received by the processor for sugar beets and 
                sugarcane delivered by producers served by the 
                processor.
                    (B) Minimum payments.--The Secretary may establish 
                appropriate minimum payments for purposes of this 
                paragraph.
            (3) Administration.--The Secretary may not impose or 
        enforce any prenotification or similar administrative 
        requirement that has the effect of preventing a processor from 
        choosing to forfeit the loan collateral on the maturity of the 
        loan.
    (f) Loans for In-Process Sugar.--
            (1) Definition of in-process sugars and syrups.--In this 
        subsection, the term ``in-process sugars and syrups'' does not 
        include raw sugar, liquid sugar, invert sugar, invert syrup, or 
        other finished product that is otherwise eligible for a loan 
        under subsection (a) or (b).
            (2) Availability.--The Secretary shall make nonrecourse 
        loans available to processors of a crop of domestically grown 
        sugarcane and sugar beets for in-process sugars and syrups 
        derived from the crops.
            (3) Loan rate.--The loan rate shall be equal to 80 percent 
        of the loan rate applicable to raw cane sugar or refined beet 
        sugar, as determined on the basis of the source material for 
        the in-process sugars and syrups.
            (4) Further processing on forfeiture.--
                    (A) In general.--As a condition on the forfeiture 
                of in-process sugars and syrups serving as collateral 
                for a loan under paragraph (2), the processor shall, 
                within such reasonable time period as the Secretary may 
                prescribe and at no cost to the Commodity Credit 
                Corporation, convert the in-process sugars and syrups 
                into raw cane sugar or refined beet sugar of acceptable 
                grade and quality for sugars eligible for loans under 
                subsection (a) or (b).
                    (B) Transfer to corporation.--Once the in-process 
                sugars and syrups are fully processed into raw cane 
                sugar or refined beet sugar, the processor shall 
                transfer the sugar to the Corporation.
                    (C) Payment to processor.--Subject to subsection 
                (g), on transfer of the sugar, the Secretary shall make 
                a payment to the processor in an amount equal to the 
                difference between--
                            (i) the loan rate for raw cane sugar or 
                        refined beet sugar, as appropriate; and
                            (ii) the loan rate the processor received 
                        under paragraph (1).
            (5) Loan conversion.--If the processor does not forfeit the 
        collateral as described in paragraph (4), but instead further 
        processes the in-process sugars and syrups into raw cane sugar 
        or refined beet sugar and repays the loan on the in-process 
        sugars and syrups, the processor may obtain a loan under 
        subsection (a) or (b) on the raw cane sugar or refined beet 
        sugar, as appropriate.
    (g) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a nonrecourse 
        loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
        per pound.
            (3) Beet sugar.--The penalty for beet sugar shall bear the 
        same relation to the penalty for cane sugar as the marketing 
        assessment for sugar beets bears to the marketing assessment 
        for sugarcane.
            (4) Effect of forfeiture.--Any payments owed producers by a 
        processor that forfeits any sugar pledged as collateral for a 
        nonrecourse loan shall be reduced in proportion to the loan 
        forfeiture penalty incurred by the processor.
    (h) Information Reporting.--
            (1) Duty of processors and refiners to report.--A sugarcane 
        processor, cane sugar refiner, and sugar beet processor shall 
        furnish the Secretary, on a monthly basis, such information as 
        the Secretary may require to administer sugar programs, 
        including the quantity of purchases of sugarcane, sugar beets, 
        and sugar, and production, importation, distribution, and stock 
        levels of sugar.
            (2) Duty of producers to report.--
                    (A) Proportionate share states.--The Secretary 
                shall require a producer of sugarcane located in a 
                State (other than Puerto Rico) in which there are in 
                excess of 250 producers of sugarcane to report, in the 
                manner prescribed by the Secretary, the sugarcane 
                yields and acres planted to sugarcane of the producer.
                    (B) Other states.--The Secretary may require each 
                producer of sugarcane or sugar beets not covered by 
                paragraph (1) to report, in a manner prescribed by the 
                Secretary, the yields and acres planted to sugarcane or 
                sugar beets, respectively, of the producer.
            (3) Duty of importers to report.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall require an importer of sugars, 
                syrups, or molasses to be used for human consumption or 
                to be used for the extraction of sugar for human 
                consumption to report, in the manner prescribed by the 
                Secretary, the quantities of the products imported by 
                the importer and the sugar content or equivalent of the 
                products.
                    (B) Tariff-rate quotas.--Subparagraph (A) shall not 
                apply to sugars, syrups, or molasses that are within 
                the quantities of tariff-rate quotas that are at the 
                lower rate of duties.
            (4) Penalty.--Any person willfully failing or refusing to 
        furnish the information, or furnishing willfully any false 
        information, shall be subject to a civil penalty of not more 
        than $10,000 for each such violation.
            (5) Monthly reports.--Taking into consideration the 
        information received under this subsection, the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    (i) Avoiding Forfeitures; Corporation Inventory Disposition.--
            (1) No cost.--Subject to subsection (e)(3), to the maximum 
        extent practicable, the Secretary shall operate the program 
        established under this section at no cost to the Federal 
        Government by avoiding the forfeiture of sugar to the Commodity 
        Credit Corporation.
            (2) Inventory disposition.--
                    (A) In general.--To carry out paragraph (1), the 
                Commodity Credit Corporation may accept bids to obtain 
                raw cane sugar or refined beet sugar in the inventory 
                of the Corporation from (or otherwise make available 
                such commodities, on appropriate terms and conditions, 
                to) processors of sugarcane and processors of sugar 
                beets (acting in conjunction with the producers of the 
                sugarcane or sugar beets processed by the processors) 
                in return for the reduction of production of raw cane 
                sugar or refined beet sugar, as appropriate.
                    (B) Additional authority.--The authority provided 
                under this paragraph is in addition to any authority of 
                the Corporation under any other law.
    (j) Crops.--This section shall be effective only for the 1996 
through 2006 crops of sugar beets and sugarcane.

SEC. 162. STORAGE FACILITY LOANS.

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

SEC. 163. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    (a) Information Reporting.--Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.
    (b) Estimates.--Section 359b of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359bb) is amended--
            (1) in the section heading--
                    (A) by inserting ``flexible'' before ``marketing''; 
                and
                    (B) by striking ``and crystalline fructose'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Before'' and inserting 
                        ``Not later than August 1 before'';
                            (ii) by striking ``1992 through 1998'' and 
                        inserting ``2002 through 2006'';
                            (iii) in subparagraph (A), by striking 
                        ``(other than sugar'' and all that follows 
                        through ``stocks'';
                            (iv) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (E), respectively;
                            (v) by inserting after subparagraph (A) the 
                        following:
                    ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;'';
                            (vi) in subparagraph (C) (as so 
                        redesignated)--
                                    (I) by striking ``or'' and all that 
                                follows through ``beets''; and
                                    (II) by striking ``and'' following 
                                the semicolon;
                            (vii) by inserting after subparagraph (C) 
                        (as so redesignated) the following:
                    ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane and sugar 
                beets; and''; and
                            (viii) in subparagraph (E) (as so 
                        redesignated)--
                                    (I) by striking ``quantity of 
                                sugar'' and inserting ``quantity of 
                                sugars, syrups, and molasses'';
                                    (II) by inserting ``human'' after 
                                ``imported for'' the first place it 
                                appears;
                                    (III) by inserting after 
                                ``consumption'' the first place it 
                                appears the following: ``or to be used 
                                for the extraction of sugar for human 
                                consumption'';
                                    (IV) by striking ``year'' and 
                                inserting ``year, whether such articles 
                                are under a tariff-rate quota or are in 
                                excess or outside of a tariff rate 
                                quota''; and
                                    (V) by striking ``(other than 
                                sugar'' and all that follows through 
                                ``carry-in stocks'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3);
                    (C) by inserting after paragraph (1) the following:
            ``(2) Exclusion.--The estimates in this section shall not 
        include sugar imported for the production of polyhydric alcohol 
        or to be refined and re-exported in refined form or in products 
        containing sugar.''; and
                    (D) in paragraph (3) (as so redesignated)--
                            (i) in the paragraph heading, by striking 
                        ``Quarterly reestimates'' and inserting 
                        ``Reestimates''; and
                            (ii) by inserting ``as necessary, but'' 
                        after ``a fiscal year'';
            (3) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--By the beginning of each fiscal year, 
        the Secretary shall establish for that fiscal year appropriate 
        allotments under section 359c for the marketing by processors 
        of sugar processed from sugar beets and from domestically-
        produced sugarcane at a level that the Secretary estimates will 
        result in no forfeitures of sugar to the Commodity Credit 
        Corporation under the loan program for sugar established under 
        section 161 of the Agriculture, Conservation, and Rural 
        Enhancement Act of 2001.''; and
                    (B) in paragraph (2), by striking ``or crystalline 
                fructose'';
            (4) by striking subsection (c);
            (5) by redesignating subsection (d) as subsection (c); and
            (6) in subsection (c) (as so redesignated)--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (2) (as so redesignated)--
                            (i) by striking ``or manufacturer'' and all 
                        that follows through ``(2)''; and
                            (ii) by striking ``or crystalline 
                        fructose''.
    (c) Establishment.--Section 359c of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359cc) is amended--
            (1) in the section heading, by inserting ``flexible'' after 
        ``of'';
            (2) in subsection (a), by inserting ``flexible'' after 
        ``establish'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``1,250,000'' 
                and inserting ``1,532,000''; and
                    (B) in paragraph (2), by striking ``to the maximum 
                extent practicable'';
            (4) by striking subsection (c) and inserting the following:
    ``(c) Marketing Allotment for Sugar Derived from Sugar Beets and 
Sugar Derived from Sugarcane.--The overall allotment quantity for the 
fiscal year shall be allotted among--
            ``(1) sugar derived from sugar beets by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by 54.35 percent; and
            ``(2) sugar derived from sugarcane by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by 45.65 percent.'';
            (5) by striking subsection (d) and inserting the following:
    ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
            ``(1) Cane sugar.--Each marketing allotment for cane sugar 
        established under this section may only be filled with sugar 
        processed from domestically grown sugarcane.
            ``(2) Beet sugar.--Each marketing allotment for beet sugar 
        established under this section may only be filled with sugar 
        domestically processed from sugar beets.'';
            (6) by striking subsection (e);
            (7) by redesignating subsection (f) as subsection (e);
            (8) in subsection (e) (as so redesignated)--
                    (A) by striking ``The allotment'' and inserting the 
                following:
            ``(1) In general.--The allotment'';
                    (B) in paragraph (1) (as so redesignated)--
                            (i) by striking ``the 5'' and inserting 
                        ``the'';
                            (ii) by inserting after ``sugarcane is 
                        produced,'' the following: ``after a hearing 
                        (if requested by the affected sugar cane 
                        processors and growers) and on such notice as 
                        the Secretary by regulation may prescribe,''; 
                        and
                            (iii) by striking ``on the basis of past 
                        marketings'' and all that follows through 
                        ``allotments'' and inserting ``as provided in 
                        this subsection and section 
                        359d(a)(2)(A)(iv)''; and
                    (C) by inserting after paragraph (1) (as so 
                designated) the following:
            ``(2) Offshore allotment.--
                    ``(A) Collectively.--Prior to the allotment of 
                sugar derived from sugarcane to any other State, 
                325,000 short tons, raw value shall be allotted to the 
                offshore States.
                    ``(B) Individually.--The collective offshore State 
                allotment provided for under subparagraph (A) shall be 
                further allotted among the offshore States in which 
                sugarcane is produced, after a hearing (if requested by 
                the affected sugar cane processors and growers) and on 
                such notice as the Secretary by regulation may 
                prescribe, in a fair and equitable manner on the basis 
                of--
                            ``(i) past marketings of sugar, based on 
                        the average of the 2 highest years of 
                        production of raw cane sugar from the 1996 
                        through 2000 crops;
                            ``(ii) the ability of processors to market 
                        the sugar covered under the allotments for the 
                        crop year; and
                            ``(iii) past processings of sugar from 
                        sugarcane based on the 3-year average of the 
                        crop years 1998 through 2000.
            ``(3) Mainland allotment.--The allotment for sugar derived 
        from sugarcane, less the amount provided for under paragraph 
        (2), shall be allotted among the mainland States in the United 
        States in which sugarcane is produced, after a hearing (if 
        requested by the affected sugar cane processors and growers) 
        and on such notice as the Secretary by regulation may 
        prescribe, in a fair and equitable manner on the basis of--
                    ``(A) past marketings of sugar, based on the 
                average of the 2 highest years of production of raw 
                cane sugar from the 1996 through 2000 crops;
                    ``(B) the ability of processors to market the sugar 
                covered under the allotments for the crop year; and
                    ``(C) past processings of sugar from sugarcane, 
                based on the 3 crop years with the greatest processings 
                (in the mainland States collectively) during the 1991 
                through 2000 crop years.'';
            (9) by inserting after subsection (e) (as so redesignated) 
        the following:
    ``(f) Filling Cane Sugar Allotments.--Except as provided in section 
359e, a State cane sugar allotment established under subsection (e) for 
a fiscal year may be filled only with sugar processed from sugarcane 
grown in the State covered by the allotment.'';
            (10) in subsection (g)--
                    (A) in paragraph (1), by striking ``359b(a)(2)--'' 
                and all that follows through the comma at the end of 
                subparagraph (C) and inserting ``359b(a)(3), adjust 
                upward or downward marketing allotments in a fair and 
                equitable manner'';
                    (B) in paragraph (2), by striking ``359f(b)'' and 
                inserting ``359f(c)''; and
                    (C) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``Reductions'' and inserting ``Carry-over of 
                        reductions'';
                            (ii) by inserting after ``this subsection, 
                        if'' the following: ``at the time of the 
                        reduction'';
                            (iii) by striking ``price support'' and 
                        inserting ``nonrecourse'';
                            (iv) by striking ``206'' and all that 
                        follows through ``the allotment'' and inserting 
                        ``151 of the Agriculture, Conservation, and 
                        Rural Enhancement Act of 2001,''; and
                            (v) by striking ``, if any,''; and
            (11) by striking subsection (h) and inserting the 
        following:
    ``(h) Suspension of Allotments.--Whenever the Secretary estimates 
or reestimates under section 359b(a), or has reason to believe, that 
imports of sugars, syrups or molasses for human consumption or to be 
used for the extraction of sugar for human consumption, whether under a 
tariff-rate quota or in excess or outside of a tariff-rate quota, will 
exceed 1,532,000 short tons (raw value equivalent), and that the 
imports would lead to a reduction of the overall allotment quantity, 
the Secretary shall suspend the marketing allotments until such time as 
the imports have been restricted, eliminated, or reduced to or below 
the level of 1,532,000 short tons (raw value equivalent).''.
    (d) Allocation.--Section 359d(a)(2) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                            ``(i) In general.--The Secretary'';
                    (B) in the first sentence of clause (i) (as so 
                designated)--
                            (i) by striking ``interested parties'' and 
                        inserting ``the affected sugar cane processors 
                        and growers''; and
                            (ii) by striking ``by taking'' and all that 
                        follows through ``allotment allocated.'' and 
                        inserting ``under this subparagraph.''; and
                    (C) by inserting after clause (i) the following:
                            ``(ii) Multiple processor states.--Except 
                        as provided in clauses (iii) and (iv), the 
                        Secretary shall allocate the allotment for cane 
                        sugar among multiple cane sugar processors in a 
                        single State based on--
                                    ``(I) past marketings of sugar, 
                                based on the average of the 2 highest 
                                years of production of raw cane sugar 
                                from among the 1996 through 2000 crops;
                                    ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotment allocated for the crop 
                                year; and
                                    ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the 3 highest years from among the 1996 
                                through 2000 crop years.
                            ``(iii) Talisman processing facility.--In 
                        the case of allotments under clause (ii) 
                        attributable to the former operations of the 
                        Talisman processing facility, the Secretary 
                        shall allocate the allotment among processors 
                        in the State under clause (i) in accordance 
                        with the agreements of March 25 and 26, 1999, 
                        between the affected processors and the 
                        Department of the Interior.
                            ``(iv) Proportionate share states.--In the 
                        case of States subject to section 359f(c), the 
                        Secretary shall allocate the allotment for cane 
                        sugar among multiple cane sugar processors in a 
                        single state based on--
                                    ``(I) past marketings of sugar, 
                                based on the average of the 2 highest 
                                years of production of raw cane sugar 
                                from among the 1997 through 2001 crop 
                                years;
                                    ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotments allocated for the crop 
                                year; and
                                    ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the 2 highest crop years from the 1997 
                                through 2001 crop years.
                            ``(v) New entrants.--
                                    ``(I) In general.--Notwithstanding 
                                clauses (ii) and (iii), the Secretary, 
                                on application of any processor that 
                                begins processing sugarcane on or after 
                                the date of enactment of this clause, 
                                and after a hearing (if requested by 
                                the affected sugarcane processors and 
                                growers) and on such notice as the 
                                Secretary by regulation may prescribe, 
                                may provide the processor with an 
                                allocation that provides a fair, 
                                efficient and equitable distribution of 
                                the allocations from the allotment for 
                                the State in which the processor is 
                                located.
                                    ``(II) Proportionate share 
                                states.--In the case of proportionate 
                                share States, the Secretary shall 
                                establish proportionate shares in a 
                                quantity sufficient to produce the 
                                sugarcane required to satisfy the 
                                allocations.
                                    ``(III) Limitation.--The allotment 
                                for a new processor under this clause 
                                shall not exceed 50,000 short tons (raw 
                                value).
                            ``(vi) Transfer of ownership.--Except as 
                        otherwise provided in section 359f(c)(8), in 
                        the event that a sugarcane processor is sold or 
                        otherwise transferred to another owner, or 
                        closed as part of an affiliated corporate group 
                        processing consolidation, the Secretary shall 
                        transfer the allotment allocation for the 
                        processor to the purchaser, new owner, or 
                        successor in interest, as applicable, of the 
                        processor.''; and
            (2) in subparagraph (B)--
                    (A) in the first sentence, by striking ``The 
                Secretary'' and inserting the following:
                            ``(i) In general.--The Secretary'';
                    (B) in clause (i) (as so designated)--
                            (i) by striking ``interested parties'' and 
                        inserting ``the affected sugar beet processors 
                        and growers''; and
                            (ii) by striking ``processing capacity'' 
                        and all that follows through ``allotment 
                        allocated'' and inserting the following: ``the 
                        marketings of sugar processed from sugar beets 
                        of any or all of the 1996 through 2000 crops, 
                        and such other factors as the Secretary may 
                        consider appropriate after consultation with 
                        the affected sugar beet processors and 
                        growers.''; and
                    (C) by adding at the end the following:
                            ``(ii) New processors.--In the case of any 
                        processor that has started processing sugar 
                        beets after January 1, 1996, the Secretary 
                        shall provide the processor with an allocation 
                        that provides a fair, efficient and equitable 
                        distribution of the allocations.''.
    (e) Reassignment.--Section 359e(b) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking the ``and'' 
                after the semicolon;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) if after the reassignments, the deficit 
                cannot be completely eliminated, the Secretary shall 
                reassign the estimated quantity of the deficit to the 
                sale of any inventories of sugar held by the Commodity 
                Credit Corporation; and''; and
                    (D) in subparagraph (D) (as so redesignated), by 
                inserting ``and sales'' after ``reassignments''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking the ``and'' 
                after the semicolon;
                    (B) in subparagraph (B), by striking ``reassign the 
                remainder to imports.'' and inserting ``use the 
                estimated quantity of the deficit for the sale of any 
                inventories of sugar held by the Commodity Credit 
                Corporation; and''; and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) if after the reassignments and sales, the 
                deficit cannot be completely eliminated, the Secretary 
                shall reassign the remainder to imports.''.
    (f) Producer Provisions.--Section 359f of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
            (1) in subsection (a)--
                    (A) in the second sentence, by striking 
                ``processor's allocation'' and inserting ``allocation 
                to the processor''; and
                    (B) by adding at the end the following: ``The 
                arbitration should be completed not more than 45 days 
                after the request and shall be completed not more than 
                60 days after the request.'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following:
    ``(b) Sugar Beet Processing Facility Closures.--
            ``(1) In general.--If a sugar beet processing facility is 
        closed and the sugar beet growers that previously delivered 
        beets to the facility desire to deliver their beets to another 
        processing company, the growers may petition the Secretary to 
        modify existing allocations to allow the delivery.
            ``(2) Increased allocation for processing company.--The 
        Secretary may increase the allocation to the processing company 
        to which the growers desire to deliver their sugar beets, with 
        the approval of the processing company, to a level that does 
        not exceed the processing capacity of the processing company, 
        to accommodate the change in deliveries.
            ``(3) Decreased allocation for closed company.--The 
        increased allocation shall be deducted from the allocation to 
        the company that owned the processing facility that has been 
        closed and the remaining allocation will be unaffected.
            ``(4) Timing.--The determinations of the Secretary on the 
        issues raised by the petition shall be made within 60 days 
        after the filing of the petition.''; and
            (4) in subsection (c) (as so redesignated)--
                    (A) in paragraph (3)(A), by striking ``the 
                preceding 5 years'' and inserting ``the 2 highest years 
                from among the 1999, 2000, and 2001 crop years'';
                    (B) in paragraph (4)(A), by striking ``each'' and 
                all that follows through ``in effect'' and inserting 
                ``the 2 highest of the 1999, 2000, and 2001 crop 
                years''; and
                    (C) by inserting after paragraph (7) the following:
            ``(8) Processing facility closures.--
                    ``(A) In general.--If a sugarcane processing 
                facility subject to this subsection is closed and the 
                sugarcane growers that previously delivered sugarcane 
                to the facility desire to deliver their sugarcane to 
                another processing company, the growers may petition 
                the Secretary to modify existing allocations to allow 
                the delivery.
                    ``(B) Increased allocation for processing 
                company.--The Secretary may increase the allocation to 
                the processing company to which the growers desire to 
                deliver the sugarcane, with the approval of the 
                processing company, to a level that does not exceed the 
                processing capacity of the processing company, to 
                accommodate the change in deliveries;
                    ``(C) Decreased allocation for closed company.--The 
                increased allocation shall be deducted from the 
                allocation to the company that owned the processing 
                facility that has been closed and the remaining 
                allocation will be unaffected.
                    ``(D) Timing.--The determinations of the Secretary 
                on the issues raised by the petition shall be made 
                within 60 days after the filing of the petition.''.
    (g) Conforming Amendments.--
            (1) Part VII of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by 
        striking the part heading and inserting the following:

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

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

``SEC. 359. DEFINITIONS.

    ``In this part:
            ``(1) Mainland state.--The term `mainland State' means a 
        State other than an offshore State.
            ``(2) Offshore state.--The term `offshore State' means a 
        sugarcane producing State located outside of the continental 
        United States.
            ``(3) State.--Notwithstanding section 301, the term `State' 
        means the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(4) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.''.
            (3) Section 359g of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1359gg) is amended--
                    (A) by striking ``359f'' each place it appears and 
                inserting ``359f(c)'';
                    (B) in the first sentence of subsection (b), by 
                striking ``3 consecutive'' and inserting ``5 
                consecutive''; and
                    (C) in subsection (c), by inserting ``or adjusted'' 
                after ``share established''.
            (4) Section 359j of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1359jj) is amended to striking subsection (c).

                           CHAPTER 3--PEANUTS

SEC. 171. PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall make 
        nonrecourse loans available to producers of quota peanuts.
            (2) Loan rate.--The national average quota loan rate for 
        quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan amount may 
        not be reduced by the Secretary by any deductions for 
        inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may make 
        adjustments in the loan rate for quota peanuts for location of 
        peanuts and such other factors as are authorized by this 
        section.
            (5) Offers from handlers.--If a producer markets a quota 
        peanut crop, meeting quality requirements for domestic edible 
        use, through the marketing association loan for two consecutive 
        marketing years and the Secretary determines that a handler 
        provided the producer with a written offer, upon delivery, for 
        the purchase of the quota peanut crops at a price equal to or 
        in excess of the quota support price, the producer shall be 
        ineligible for quota price support for the next marketing year. 
        The Secretary shall establish the method by which a producer 
        may appeal a determination under this paragraph regarding 
        ineligibility for quota price support.
    (b) Additional Peanuts.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall make nonrecourse loans available to producers of 
        additional peanuts at such rates as the Secretary finds 
        appropriate, taking into consideration the demand for peanut 
        oil and peanut meal, expected prices of other vegetable oils 
        and protein meals, and the demand for peanuts in foreign 
        markets.
            (2) Limitation.--The Secretary shall establish the support 
        rate on additional peanuts at a level estimated by the 
        Secretary to ensure that there are no losses to the Commodity 
        Credit Corporation on the sale or disposal of the peanuts.
            (3) Announcement.--The Secretary shall announce the loan 
        rate for additional peanuts of each crop not later than 
        February 15 preceding the marketing year for the crop for which 
        the loan rate is being determined.
    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out subsections (a) 
                and (b), the Secretary shall make warehouse storage 
                loans available in each of the producing areas 
                (described in section 1446.95 of title 7 of the Code of 
                Federal Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers that is 
                selected and approved by the Secretary and that is 
                operated primarily for the purpose of conducting the 
                loan activities. The Secretary may not make warehouse 
                storage loans available to any cooperative that is 
                engaged in operations or activities concerning peanuts 
                other than those operations and activities specified in 
                this section and section 358e of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1359a).
                    (B) Administrative and supervisory activities.--An 
                area marketing association shall be used in 
                administrative and supervisory activities relating to 
                loans and marketing activities under this section and 
                section 358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include such 
                costs as the area marketing association reasonably may 
                incur in carrying out the responsibilities, operations, 
                and activities of the association under this section 
                and section 358e of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) In general.--The Secretary shall require that 
                each area marketing association establish pools and 
                maintain complete and accurate records by area and 
                segregation for quota peanuts handled under loan and 
                for additional peanuts placed under loan, except that 
                separate pools shall be established for Valencia 
                peanuts produced in New Mexico.
                    (B) Eligibility to participate in new mexico 
                pools.--
                            (i) In general.--Except as provided in 
                        clause (ii), in the case of the 1996 and 
                        subsequent crops, Valencia peanuts not 
                        physically produced in the State of New Mexico 
                        shall not be eligible to participate in the 
                        pools of the State.
                            (ii) Exception.--A producer of Valencia 
                        peanuts may enter Valencia peanuts that are 
                        produced in Texas into the pools of New Mexico 
                        in a quantity not greater than the average 
                        annual quantity of the peanuts that the 
                        producer entered into the New Mexico pools for 
                        the 1990 through 1995 crops.
                    (C) Types of peanuts.--Bright hull and dark hull 
                Valencia peanuts shall be considered as separate types 
                for the purpose of establishing the pools.
                    (D) Net gains.--Net gains on peanuts in each pool, 
                unless otherwise approved by the Secretary, shall be 
                distributed only to producers who placed peanuts in the 
                pool and shall be distributed in proportion to the 
                value of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool shall 
                consist of the following:
                            (i) Quota peanuts.--For quota peanuts, the 
                        net gains over and above the loan indebtedness 
                        and other costs or losses incurred on peanuts 
                        placed in the pool.
                            (ii) Additional peanuts.--For additional 
                        peanuts, the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool for additional 
                        peanuts.
    (d) Losses.--Losses in quota area pools shall be covered using the 
following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The proceeds due 
        any producer from any pool shall be reduced by the amount of 
        any loss that is incurred with respect to peanuts transferred 
        from an additional loan pool to a quota loan pool by the 
        producer under section 358-1(b)(8) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
            (2) Producers in same pool.--Further losses in an area 
        quota pool shall be offset by reducing the gain of any producer 
        in the pool by the amount of pool gains attributed to the same 
        producer from the sale of additional peanuts for domestic and 
        edible export use.
            (3) Offset within area.--Further losses in an area quota 
        pool shall be offset by any gains or profits from additional 
        peanuts (other than separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) owned or controlled by the Commodity Credit Corporation 
        in that area and sold for domestic edible use, in accordance 
        with regulations issued by the Secretary. This paragraph shall 
        not apply to profits or gains from a farm with 1 acre or less 
        of peanut production.
            (4) First use of marketing assessments.--The Secretary 
        shall use funds collected under subsection (g) (except funds 
        attributable to handlers) to offset further losses in area 
        quota pools. The Secretary shall transfer to the Treasury those 
        funds collected under subsection (g) and available for use 
        under this paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
            (5) Cross compliance.--Further losses in area quota pools, 
        other than losses incurred as a result of transfers from 
        additional loan pools to quota loan pools under section 358-
        1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1358-1(b)(8)), shall be offset by any gains or profits from 
        quota pools in other production areas (other than separate type 
        pools established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the Secretary 
        shall by regulation prescribe.
            (6) Offset generally.--If losses in an area quota pool have 
        not been entirely offset under the preceding paragraphs, 
        further losses shall be offset by any gains or profits from 
        additional peanuts (other than separate type pools established 
        under subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) owned or controlled by the Commodity Credit Corporation 
        and sold for domestic edible use, in accordance with 
        regulations issued by the Secretary. This paragraph shall not 
        apply to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (7) Second use of marketing assessments.--The Secretary 
        shall use funds collected under subsection (g) and attributable 
        to handlers to offset further losses in area quota pools. The 
        Secretary shall transfer to the Treasury those funds collected 
        under subsection (g) and available for use under this paragraph 
        that the Secretary determines are not required to cover losses 
        in area quota pools.
            (8) Increased assessments.--If use of the authorities 
        provided in the preceding paragraphs is not sufficient to cover 
        losses in an area quota pool, the Secretary shall increase the 
        marketing assessment for producers established under subsection 
        (g) by such an amount as the Secretary considers necessary to 
        cover the losses. The increased assessment shall apply only to 
        quota peanuts in the production area covered by the pool. 
        Amounts collected under subsection (g) as a result of the 
        increased assessment shall be retained by the Secretary to 
        cover losses in that pool.
    (e) Disapproval of Quotas.--Notwithstanding any other provision of 
law, no loan for quota peanuts may be made available by the Secretary 
for any crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under loan, the 
        Secretary shall--
                    (A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts of a lesser risk 
                of deterioration;
                    (B) ensure that all Commodity Credit Corporation 
                inventories of peanuts sold for domestic edible use 
                must be shown to have been officially inspected by 
                licensed Department inspectors both as farmer stock and 
                shelled or cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the peanut 
                program so as to improve the quality of domestic 
                peanuts and ensure the coordination of activities under 
                the Peanut Administrative Committee established under 
                Marketing Agreement No. 146, regulating the quality of 
                domestically produced peanuts (under the Agricultural 
                Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
                amendments by the Agricultural Marketing Agreement Act 
                of 1937); and
                    (D) ensure that any changes made in the peanut 
                program as a result of this subsection requiring 
                additional production or handling at the farm level 
                shall be reflected as an upward adjustment in the 
                Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall require 
        that all peanuts in the domestic and export markets fully 
        comply with all quality standards under Marketing Agreement No. 
        146.
    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment shall be 
        made on a per pound basis in an amount equal to 1.1 percent for 
        each of the 1994 and 1995 crops, 1.15 percent for the 1996 
        crop, and 1.2 percent for each of the 1997 through 2006 crops, 
        of the national average quota or additional peanut loan rate 
        for the applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under 
                paragraphs (3) and (4), the first purchaser of peanuts 
                shall--
                            (i) collect from the producer a marketing 
                        assessment equal to the quantity of peanuts 
                        acquired multiplied by--
                                    (I) in the case of each of the 1994 
                                and 1995 crops, .55 percent of the 
                                applicable national average loan rate;
                                    (II) in the case of the 1996 crop, 
                                .6 percent of the applicable national 
                                average loan rate; and
                                    (III) in the case of each of the 
                                1997 through 2006 crops, .65 percent of 
                                the applicable national average loan 
                                rate;
                            (ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the quantity 
                        of peanuts acquired multiplied by .55 percent 
                        of the applicable national average loan rate; 
                        and
                            (iii) remit the amounts required under 
                        clauses (i) and (ii) to the Commodity Credit 
                        Corporation in a manner specified by the 
                        Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means a person 
                acquiring peanuts from a producer except that in the 
                case of peanuts forfeited by a producer to the 
                Commodity Credit Corporation, the term means the person 
                acquiring the peanuts from the Commodity Credit 
                Corporation.
            (3) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are pledged 
        as collateral for a loan made under this section, the producer 
        portion of the assessment shall be deducted from the proceeds 
        of the loan. The remainder of the assessment shall be paid by 
        the first purchaser of the peanuts. For purposes of computing 
        net gains on peanuts under this section, the reduction in loan 
        proceeds shall be treated as having been paid to the producer.
            (5) Penalties.--If any person fails to collect or remit the 
        reduction required by this subsection or fails to comply with 
        the requirements for recordkeeping or otherwise as are required 
        by the Secretary to carry out this subsection, the person shall 
        be liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate for the 
                applicable crop year.
            (6) Enforcement.--The Secretary may enforce this subsection 
        in the courts of the United States.
    (h) Crops.--Subsections (a) through (g) shall be effective only for 
the 1996 through 2006 crops of peanuts.
    (i) Poundage Quotas.--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 ``2006''.

                       Subtitle D--Administration

SEC. 181. ADMINISTRATION.

    (a) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity to carry out 
this title through the Commodity Credit Corporation.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary and the Commodity 
        Credit Corporation, as appropriate, shall promulgate such 
        regulations as are necessary to implement this title.
            (2) Procedure.--The promulgation of the regulations shall 
        be made without regard to--
                    (A) the notice and comment provisions of section 
                553 of title 5, United States Code;
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
                    (C) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'').
            (3) Congressional review of agency rulemaking.--In carrying 
        out this subsection, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.
    (d) Protection of Producers.--The protection afforded by section 
525 of Public Law 106-170 (7 U.S.C. 7212 note) to producers on a farm 
that elect to accelerate the receipt of any payment under a production 
flexibility contract payable under subtitle B of title I of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.) 
shall apply to the initial payment of counter-cyclical payments made 
under section 116(b)(7)(A).

SEC. 182. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.

    (a) General Sales Authority.--The Commodity Credit Corporation may 
sell any commodity owned or controlled by the Corporation at any price 
that the Secretary determines will maximize returns to the Corporation.
    (b) Nonapplication of Sales Price Restrictions.--Subsection (a) 
shall not apply to--
            (1) a sale for a new or byproduct use;
            (2) a sale of peanuts or oilseeds for the extraction of 
        oil;
            (3) a sale for seed or feed if the sale will not 
        substantially impair any loan program;
            (4) a sale of a commodity that has substantially 
        deteriorated in quality or as to which there is a danger of 
        loss or waste through deterioration or spoilage;
            (5) a sale for the purpose of establishing a claim arising 
        out of a contract or against a person that has committed fraud, 
        misrepresentation, or other wrongful act with respect to the 
        commodity;
            (6) a sale for export, as determined by the Corporation; 
        and
            (7) a sale for other than a primary use.
    (c) Presidential Disaster Areas.--
            (1) In general.--Notwithstanding subsection (a), on such 
        terms and conditions as the Secretary may consider in the 
        public interest, the Corporation may make available any 
        commodity or product owned or controlled by the Corporation for 
        use in relieving distress--
                    (A) in any area in the United States (including the 
                Virgin Islands) declared by the President to be an 
                acute distress area because of unemployment or other 
                economic cause, if the President finds that the use 
                will not displace or interfere with normal marketing of 
                agricultural commodities; and
                    (B) in connection with any major disaster 
                determined by the President to warrant assistance by 
                the Federal Government under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.).
            (2) Costs.--Except on a reimbursable basis, the Corporation 
        shall not bear any costs in connection with making a commodity 
        available under paragraph (1) beyond the cost of the commodity 
        to the Corporation incurred in--
                    (A) the storage of the commodity; and
                    (B) the handling and transportation costs in making 
                delivery of the commodity to designated agencies at 1 
                or more central locations in each State or other area.
    (d) Efficient Operations.--Subsection (a) shall not apply to the 
sale of a commodity the disposition of which is desirable in the 
interest of the effective and efficient conduct of the operations of 
the Corporation because of the small quantity of the commodity 
involved, or because of the age, location, or questionable continued 
storability of the commodity.

SEC. 183. COMMODITY CERTIFICATES.

    (a) In General.--In making in-kind payments under this title, the 
Commodity Credit Corporation may--
            (1) acquire and use commodities that have been pledged to 
        the Commodity Credit Corporation as collateral for loans made 
        by the Corporation;
            (2) use other commodities owned by the Commodity Credit 
        Corporation; and
            (3) redeem negotiable marketing certificates for cash under 
        terms and conditions established by the Secretary.
    (b) Methods of Payment.--The Commodity Credit Corporation may make 
in-kind payments--
            (1) by delivery of the commodity at a warehouse or other 
        similar facility;
            (2) by the transfer of negotiable warehouse receipts;
            (3) by the issuance of negotiable certificates, which the 
        Commodity Credit Corporation shall exchange for a commodity 
        owned or controlled by the Corporation in accordance with 
        regulations promulgated by the Corporation; or
            (4) by such other methods as the Commodity Credit 
        Corporation determines appropriate to promote the efficient, 
        equitable, and expeditious receipt of the in-kind payments so 
        that a person receiving the payments receives the same total 
        return as if the payments had been made in cash.
    (c) Administration.--
            (1) Form.--At the option of a person, the Commodity Credit 
        Corporation shall make negotiable certificates authorized under 
        subsection (b)(3) available to the person, in the form of 
        program payments or by sale, in a manner that the Corporation 
        determines will encourage the orderly marketing of commodities 
        pledged as collateral for loans made by the Commodity Credit 
        Corporation.
            (2) Transfer.--A negotiable certificate issued in 
        accordance with this subsection may be transferred to another 
        person in accordance with regulations promulgated by the 
        Secretary.

SEC. 184. ASSIGNMENT OF PAYMENTS.

    (a) In General.--The provisions of section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating 
to assignment of payments, shall apply to payments made under this 
title.
    (b) Notice.--The producers on a farm making the assignment, or the 
assignee, shall provide the Secretary with notice, in such manner as 
the Secretary may require, of any assignment made under this section.

SEC. 185. SUSPENSION OF PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The following provisions 
of the Agricultural Adjustment Act of 1938 shall not be applicable to 
the 1996 through 2006 crops of loan commodities, peanuts, and sugar and 
shall not be applicable to milk during the period beginning on the date 
of enactment of this title and ending on December 31, 2006:
            (1) Parts II through V of subtitle B of title III (7 U.S.C. 
        1326-1351).
            (2) Subsections (a) through (j) of section 358 (7 U.S.C. 
        1358).
            (3) Subsections (a) through (h) of section 358a (7 U.S.C. 
        1358a).
            (4) Subsections (a), (b), (d), and (e) of section 358d (7 
        U.S.C. 1359).
            (5) Part VII of subtitle B of title III (7 U.S.C. 1359aa-
        1359jj), but only with respect to sugar marketings through 
        fiscal year 2002.
            (6) In the case of peanuts, part I of subtitle C of title 
        III (7 U.S.C. 1361-1368).
            (7) In the case of upland cotton, section 377 (7 U.S.C. 
        1377).
            (8) Subtitle D of title III (7 U.S.C. 1379a-1379j).
            (9) Title IV (7 U.S.C. 1401-1407).
    (b) Agricultural Act of 1949.--The following provisions of the 
Agricultural Act of 1949 shall not be applicable to the 1996 through 
2006 crops of loan commodities, peanuts, and sugar and shall not be 
applicable to milk during the period beginning on the date of enactment 
of this title and ending on December 31, 2006:
            (1) Section 101 (7 U.S.C. 1441).
            (2) Section 103(a) (7 U.S.C. 1444(a)).
            (3) Section 105 (7 U.S.C. 1444b).
            (4) Section 107 (7 U.S.C. 1445a).
            (5) Section 110 (7 U.S.C. 1445e).
            (6) Section 112 (7 U.S.C. 1445g).
            (7) Section 115 (7 U.S.C. 1445k).
            (8) Section 201 (7 U.S.C. 1446).
            (9) Title III (7 U.S.C. 1447-1449).
            (10) Title IV (7 U.S.C. 1421-1433d), other than sections 
        404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
            (11) Title V (7 U.S.C. 1461-1469).
            (12) Title VI (7 U.S.C. 1471-1471j).
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 1996 
through 2006.

SEC. 186. CONFORMING AMENDMENTS.

    (a) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``or title I of the Agriculture, 
                Conservation, and Rural Enhancement Act of 2001'' after 
                ``the Agricultural Market Transition Act''; and
                    (B) by inserting ``, or covered commodities, 
                respectively,'' after ``oilseeds''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Description of payments subject to limitation.--The 
        payments referred to in paragraph (2) are the following:
                    ``(A) Any gain realized by a producer from repaying 
                a marketing assistance loan under section 131 of the 
                Agricultural Market Transition Act (7 U.S.C. 7231) or 
                section 111 of the Agriculture, Conservation, and Rural 
                Enhancement Act of 2001 for a crop of any commodity at 
                a lower level than the original loan rate established 
                for the commodity under section 132 of the Agricultural 
                Market Transition Act (7 U.S.C. 7232) or section 132 of 
                the Agriculture, Conservation, and Rural Enhancement 
                Act of 2001, respectively.
                    ``(B) Any loan deficiency payment received for a 
                commodity under section 135 of the Agricultural Market 
                Transition Act (7 U.S.C. 7235) or section 135 of the 
                Agriculture, Conservation, and Rural Enhancement Act of 
                2001.''.
    (b) Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 
1308-3(a)) is amended by inserting ``title I of the Agriculture, 
Conservation, and Rural Enhancement Act of 2001,'' after ``the 
Agricultural Market Transition Act,''.
    (c) The Federal Crop Insurance Act is amended--
            (1) in section 506(h)(3) (7 U.S.C. 1506(h)(3)--
                    (A) by striking ``section 196 of the Agricultural 
                Market Transition Act (7 U.S.C. 7333)'' and inserting 
                ``section 192 of the Agriculture, Conservation, and 
                Rural Enhancement Act of 2001''; and
                    (B) by striking ``such section 196'' and inserting 
                ``section 192 of that Act'';
            (2) in section 508(b)(7)(A) (7 U.S.C. 1508(b)(7)(A)), by 
        inserting ``or title I of the Agriculture, Conservation, and 
        Rural Enhancement Act of 2001'' after ``the Agricultural Market 
        Transition Act'';
            (3) in section 508A(e) (7 U.S.C. 1508a(e)), by striking 
        ``section 196 of the Agricultural Market Transition Act (7 
        U.S.C. 7333)'' and inserting ``section 192 of the Agriculture, 
        Conservation, and Rural Enhancement Act of 2001'';
            (4) in section 515(h)(3)(B) (7 U.S.C. 1515(h)(3)(B)), is 
        amended by striking clause (ii) and inserting the following:
                            ``(ii) The Agricultural Market Transition 
                        Act (7 U.S.C. 7201 et seq.) and title I of the 
                        Agriculture, Conservation, and Rural 
                        Enhancement Act of 2001, including the 
                        noninsured crop disaster assistance program.''; 
                        and
            (5) in section 522(d)(1) (7 U.S.C. 1522(d)(1)), by striking 
        ``section 196 of the Agricultural Market Transition Act (7 
        U.S.C. 7333)'' and inserting ``section 192 of the Agriculture, 
        Conservation, and Rural Enhancement Act of 2001''.
    (d) Title I of the Federal Agriculture Improvement and Reform Act 
of 1996 is amended--
            (1) in subtitle E, by striking sections 163 and 165 (7 
        U.S.C. 7283, 7285); and
            (2) by striking subtitles F, G, and H (7 U.S.C. 7301 et 
        seq.), other than section 191 (7 U.S.C. 7331).
    (e) Section 385 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7334) is amended--
            (1) in subsection (a), by inserting ``, or base acres under 
        title I of the Agriculture, Conservation, and Rural Enhancement 
        Act of 2001,''; and
            (2) in subsection (b), by striking paragraph (1) and 
        inserting the following:
            ``(1) the termination of--
                    ``(A) any contract acreage and production 
                flexibility contract under the Agricultural Market 
                Transition Act (7 U.S.C. 7201 et seq.); and
                    ``(B) any base acres and contract under title I of 
                the Agriculture, Conservation, and Rural Enhancement 
                Act of 2001;''; and
            (3) in subsection (c), by inserting ``and title I of the 
        Agriculture, Conservation, and Rural Enhancement Act of 2001'' 
        after ``Agricultural Market Transition Act''.
    (f) Section 1211(1)(A) of the Food Security Act of 1985 (16 U.S.C. 
3811(1)(A)) is amended by inserting ``title I of the Agriculture, 
Conservation, and Rural Enhancement Act of 2001,'' after ``the 
Agricultural Market Transition Act,''.
    (g) Section 1221(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3811(1)(A)) is amended by inserting ``title I of the Agriculture, 
Conservation, and Rural Enhancement Act of 2001,'' after ``the 
Agricultural Market Transition Act,''.
    (h) Section 519(b)(1) of the Controlled Substances Act (21 U.S.C. 
889(b)(1)) is amended by inserting ``the Agricultural Market Transition 
Act, (7 U.S.C. 7201 et seq.), title I of the Agriculture, Conservation, 
and Rural Enhancement Act of 2001,'' after ``the Agricultural Act of 
1949 (7 U.S.C. 1421 et seq.),''.
    (i) Section 3720B(a) of title 31, United States Code, is amended by 
inserting ``or subtitle B of title I of the Agriculture, Conservation, 
and Rural Enhancement Act of 2001'' after ``the Agricultural Market 
Transition Act (7 U.S.C. 7231 et seq.)''.
    (j) Effective January 1, 2004, the Agricultural Market Transition 
Act (7 U.S.C. 7201 et seq.) is repealed.

SEC. 187. EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--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 to carry out a price support or production 
adjustment program for any of the 1996 through 2001 crops of an 
agricultural commodity established under a provision of law in effect 
immediately before the date of enactment of this title.
    (b) Liability.--A provision of this title or an amendment made by 
this title shall not affect the liability of any person under any 
provision of law as in effect before the date of enactment of this 
title.

             Subtitle E--Miscellaneous Commodity Provisions

SEC. 191. RISK MANAGEMENT EDUCATION.

    (a) In General.--In consultation with the Commodity Futures Trading 
Commission, the Secretary shall provide such education in management of 
the financial risks inherent in the production and marketing of 
agricultural commodities as the Secretary considers appropriate.
    (b) Programs.--As part of the educational activities, the Secretary 
may develop and implement programs to facilitate the participation of 
agricultural producers in--
            (1) commodity futures trading programs;
            (2) forward contracting options; and
            (3) insurance protection programs by assisting and training 
        producers in the usage of the programs.
    (c) Existing Authorities and Resources.--In implementing this 
section, the Secretary may use existing research and extension 
authorities and resources of the Department of Agriculture.

SEC. 192. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE 
              PROGRAM.

    (a) Operation and Administration of Program.--
            (1) In general.--In the case of an eligible crop described 
        in paragraph (2), the Secretary, acting through the Farm 
        Service Agency (referred to in this section as the ``Agency''), 
        shall operate a noninsured crop disaster assistance program to 
        provide coverage equivalent to the catastrophic risk protection 
        otherwise available under section 508(b) of the Federal Crop 
        Insurance Act (7 U.S.C. 1508(b)).
            (2) Eligible crops.--
                    (A) In general.--In this section, the term 
                ``eligible crop'' means each commercial crop or other 
                agricultural commodity (except livestock)--
                            (i) for which catastrophic risk protection 
                        under section 508(b) of the Federal Crop 
                        Insurance Act (7 U.S.C. 1508(b)) is not 
                        available; and
                            (ii) that is produced for food or fiber.
                    (B) Crops specifically included.--The term 
                ``eligible crop'' shall include floricultural, 
                ornamental nursery, and Christmas tree crops, turfgrass 
                sod, seed crops, aquaculture (including ornamental 
                fish), and industrial crops.
                    (C) Combination of similar types or varieties.--At 
                the option of the Secretary, all types or varieties of 
                a crop or commodity, described in subparagraphs (A) and 
                (B), may be considered to be a single eligible crop 
                under this section.
            (3) Cause of loss.--To qualify for assistance under this 
        section, the losses of the noninsured commodity shall be due to 
        drought, flood, or other natural disaster, as determined by the 
        Secretary.
    (b) Application for Noninsured Crop Disaster Assistance.--
            (1) Timely application.--
                    (A) In general.--To be eligible for assistance 
                under this section, a producer shall submit an 
                application for noninsured crop disaster assistance at 
                a local office of the Department.
                    (B) Administration.--The application shall be in 
                such form, contain such information, and be submitted 
                not later than 30 days before the beginning of the 
                coverage period, as determined by the Secretary.
            (2) Records.--To be eligible for assistance under this 
        section, a producer shall provide annually to the Secretary 
        records of crop acreage, yields, and production for each crop, 
        as required by the Secretary.
            (3) Acreage reports.--A producer shall provide annual 
        reports on acreage planted or prevented from being planted, as 
        required by the Secretary, by the designated acreage reporting 
        date for the crop and location as established by the Secretary.
    (c) Loss Requirements.--
            (1) Cause.--To be eligible for assistance under this 
        section, a producer of an eligible crop shall have suffered a 
        loss of a noninsured commodity as the result of a cause 
        described in subsection (a)(3).
            (2) Assistance.--On making a determination described in 
        subsection (a)(3), the Secretary shall provide assistance under 
        this section to producers of an eligible crop that have 
        suffered a loss as a result of the cause described in 
        subsection (a)(3).
            (3) Prevented planting.--Subject to paragraph (1), the 
        Secretary shall make a prevented planting noninsured crop 
        disaster assistance payment if the producer is prevented from 
        planting more than 35 percent of the acreage intended for the 
        eligible crop because of drought, flood, or other natural 
        disaster, as determined by the Secretary.
            (4) Area trigger.--The Secretary shall provide assistance 
        to individual producers without any requirement of an area 
        loss.
    (d) Payment.--The Secretary shall make available to a producer 
eligible for noninsured assistance under this section a payment 
computed by multiplying--
            (1) the quantity that is less than 50 percent of the 
        established yield for the crop; by
            (2)(A) in the case of each of the 1996 through 1998 crop 
        years, 60 percent of the average market price for the crop (or 
        any comparable coverage determined by the Secretary); or
            (B) in the case of each of the 1999 and subsequent crop 
        years, 55 percent of the average market price for the crop (or 
        any comparable coverage determined by the Secretary); by
            (3) a payment rate for the type of crop (as determined by 
        the Secretary) that--
                    (A) in the case of a crop that is produced with a 
                significant and variable harvesting expense, reflects 
                the decreasing cost incurred in the production cycle 
                for the crop that is--
                            (i) harvested;
                            (ii) planted but not harvested; and
                            (iii) prevented from being planted because 
                        of drought, flood, or other natural disaster 
                        (as determined by the Secretary); and
                    (B) in the case of a crop that is not produced with 
                a significant and variable harvesting expense, as 
                determined by the Secretary.
    (e) Yield Determinations.--
            (1) Establishment.--The Secretary shall establish farm 
        yields for purposes of providing noninsured crop disaster 
        assistance under this section.
            (2) Actual production history.--
                    (A) In general.--The Secretary shall determine 
                yield coverage using the actual production history of 
                the producer over a period of not less than the 4 
                previous consecutive crop years and not more than 10 
                consecutive crop years.
                    (B) Quantity.--Subject to paragraph (3), the yield 
                for the year in which noninsured crop disaster 
                assistance is sought shall be equal to the average of 
                the actual production history of the producer during 
                the period considered.
            (3) Assignment of yield.--If a producer does not submit 
        adequate documentation of production history to determine a 
        crop yield under paragraph (2), the Secretary shall assign to 
        the producer a yield equal to not less than 65 percent of the 
        transitional yield of the producer (adjusted to reflect actual 
        production reflected in the records acceptable to the Secretary 
        for continuous years), as specified in regulations issued by 
        the Secretary based on production history requirements.
            (4) Prohibition on assigned yields in certain counties.--
                    (A) In general.--
                            (i) Documentation.--
                                    (I) In general.--If sufficient data 
                                are available to demonstrate that the 
                                acreage of a crop in a county for the 
                                crop year has increased by more than 
                                100 percent over any year in the 
                                preceding 7 crop years or, if data are 
                                not available, if the acreage of the 
                                crop in the county has increased 
                                significantly from the previous crop 
                                years, a producer must provide such 
                                detailed documentation of production 
                                costs, acres planted, and yield for the 
                                crop year for which benefits are being 
                                claimed as is required by the 
                                Secretary.
                                    (II) Insufficient documentation.--
                                If the Secretary determines that the 
                                documentation provided is not 
                                sufficient, the Secretary may require 
                                documenting proof that the crop, had 
                                the crop been harvested, could have 
                                been marketed at a reasonable price.
                            (ii) Prohibition.--Except as provided in 
                        subparagraph (B), a producer that produces a 
                        crop on a farm located in a county described in 
                        clause (i) may not obtain an assigned yield.
                    (B) Exception.--A crop or a producer shall not be 
                subject to this subsection if--
                            (i) the planted acreage of the producer for 
                        the crop has been inspected by a third party 
                        acceptable to the Secretary; or
                            (ii)(I) the County Executive Director and 
                        the State Executive Director recommend an 
                        exemption from the requirement to the 
                        Administrator of the Agency; and
                            (II) the Administrator approves the 
                        recommendation.
            (5) Limitation on receipt of subsequent assigned yield.--A 
        producer that receives an assigned yield for the current year 
        of a natural disaster because required production records were 
        not submitted to the local office of the Department shall not 
        be eligible for an assigned yield for the year of the next 
        natural disaster unless the required production records of the 
        previous 1 or more years (as applicable) are provided to the 
        local office.
            (6) Yield variations due to different farming practices.--
        The Secretary shall ensure that noninsured crop disaster 
        assistance accurately reflects significant yield variations due 
        to different farming practices, such as between irrigated and 
        nonirrigated acreage.
    (f) Contract Payments.--A producer that has received a guaranteed 
payment for production, as opposed to delivery, of a crop pursuant to a 
contract shall have the production of the producer adjusted upward by 
the amount of the production equal to the amount of the contract 
payment received.
    (g) Use of Commodity Credit Corporation.--The Secretary may use the 
funds of the Commodity Credit Corporation to carry out this section.
    (h) Exclusions.--Noninsured crop disaster assistance under this 
section shall not cover losses due to--
            (1) the neglect or malfeasance of the producer;
            (2) the failure of the producer to reseed to the same crop 
        in those areas and under such circumstances where it is 
        customary to reseed; or
            (3) the failure of the producer to follow good farming 
        practices, as determined by the Secretary.
    (i) Payment and Income Limitations.--
            (1) Definitions.--In this subsection:
                    (A) Person.--
                            (i) In general.--The term ``person'' has 
                        the meaning provided the term in regulations 
                        issued by the Secretary.
                            (ii) Administration.--The regulations shall 
                        conform, to the extent practicable, to the 
                        regulations defining the term ``person'' issued 
                        under section 1001 of the Food Security Act of 
                        1985 (7 U.S.C. 1308).
                    (B) Qualifying gross revenues.--The term 
                ``qualifying gross revenues'' means--
                            (i) if a majority of the gross revenue of 
                        the person is received from farming, ranching, 
                        and forestry operations, the gross revenue from 
                        the farming, ranching, and forestry operations 
                        of the person; and
                            (ii) if less than a majority of the gross 
                        revenue of the person is received from farming, 
                        ranching, and forestry operations, the gross 
                        revenue of the person from all sources.
            (2) Payment limitation.--The total amount of payments that 
        a person shall be entitled to receive annually under this 
        section may not exceed $100,000.
            (3) Limitation on multiple benefits for same loss.--
                    (A) In general.--Except as provided in subparagraph 
                (B), if a producer that is eligible to receive benefits 
                under this section is also eligible to receive 
                assistance for the same loss under any other program 
                administered by the Secretary, the producer shall be 
                required to elect whether to receive benefits under 
                this section or under the other program, but not both.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                emergency loans under subtitle C of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961 et seq.).
            (4) Income limitation.--A person that has qualifying gross 
        revenues in excess of the amount specified in section 2266(a) 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 1421 note) (as in effect on November 28, 1990) during 
        the taxable year (as determined by the Secretary) shall not be 
        eligible to receive any noninsured assistance payment under 
        this section.
            (5) Regulations.--The Secretary shall issue regulations 
        prescribing such rules as the Secretary determines necessary to 
        ensure a fair and equitable application of section 1001 of the 
        Food Security Act of 1985 (7 U.S.C. 1308), the general payment 
        limitation regulations of the Secretary, and the limitations 
        established under this subsection.
    (j) Service Fee.--
            (1) In general.--To be eligible to receive assistance for 
        an eligible crop for a crop year under this section, a producer 
        shall pay to the Secretary (at the time at which the producer 
        submits the application under subsection (b)(1)) a service fee 
        for the eligible crop in an amount that is equal to the lesser 
        of--
                    (A) $100 per crop per county; or
                    (B) $300 per producer per county, but not to exceed 
                a total of $900 per producer.
            (2) Waiver.--The Secretary shall waive the service fee 
        required under paragraph (1) in the case of a limited resource 
        farmer, as defined by the Secretary.
            (3) Use.--The Secretary shall deposit service fees 
        collected under this subsection in the Commodity Credit 
        Corporation Fund.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

SEC. 201. CONSERVATION SECURITY PROGRAM.

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

       ``CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

             ``Subchapter A--Conservation Security Program

``SEC. 1238. DEFINITIONS.

    ``In this subchapter:
            ``(1) Base payment.--The term `base payment' means the 
        amount paid to an owner or operator under a conservation 
        security contract that is comprised of the sum of the amounts 
        described in clauses (i) and (ii) of subparagraphs (B), (C), or 
        (D) of section 1238C(b)(1), as appropriate.
            ``(2) Bonus amount.--The term `bonus amount' means the 
        amount paid to an owner or operator under a conservation 
        security contract consisting of the sum of the amounts 
        described in clauses (iii) and (iv) of subparagraph (B), of 
        clause (iii) of subparagraph (C) or (D), of section 
        1238C(b)(1), as appropriate.
            ``(3) Conservation practice.--The term `conservation 
        practice' means a land-based farming technique that--
                    ``(A) requires planning, implementation, 
                management, and maintenance; and
                    ``(B) promotes 1 or more of the purposes described 
                in section 1238A(a).
            ``(4) Conservation security contract.--The term 
        `conservation security contract' means a contract described in 
        section 1238A(e).
            ``(5) Conservation security plan.--The term `conservation 
        security plan' means a plan described in section 1238A(c).
            ``(6) Conservation security program.--The term 
        `conservation security program' means the program established 
        under section 1238A(a).
            ``(7) Continuous signup.--The term `continuous signup' 
        means land enrolled under section 1231(b)(4).
            ``(8) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term by section 4 of the Indian Health Care 
        Improvement Act (25 U.S.C. 1603).
            ``(9) Nutrient management.--The term `nutrient management' 
        means management of the quantity, source, placement, form, and 
        timing of the land application of nutrients and other additions 
        to soil on land enrolled in the conservation security program--
                    ``(A) to achieve or maintain adequate soil 
                fertility for agricultural production;
                    ``(B) to minimize the potential for loss of 
                environmental quality, including soil, water, fish and 
                wildlife habitat, and air and water quality; and
                    ``(C) to reduce energy consumption.
            ``(10) Resource of concern.--The term `resource of concern' 
        means a conservation priority of a State and locality under 
        section 1238A(c)(3).
            ``(11) Resource-conserving crop.--The term `resource-
        conserving crop' means--
                    ``(A) a perennial grass;
                    ``(B) a legume grown for use as--
                            ``(i) forage;
                            ``(ii) seed for planting; or
                            ``(iii) green manure;
                    ``(C) a legume-grass mixture;
                    ``(D) a small grain grown in combination with a 
                grass or legume, whether interseeded or planted in 
                succession; and
                    ``(E) such other plantings, including trees and 
                annual grasses, as the Secretary considers appropriate 
                for a particular area.
            ``(12) Resource-conserving crop rotation.--The term 
        `resource-conserving crop rotation' means a crop rotation 
        that--
                    ``(A) includes at least 1 resource-conserving crop;
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth; and
                    ``(D) interrupts pest cycles.
            ``(13) Resource management system.--The term `resource 
        management system' means a system of conservation practices and 
        management relating to land or water use that is designed to 
        prevent resource degradation and permit sustained use of land 
        and water, as defined in accordance with the Natural Resources 
        Conservation Service technical guide.
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service.
            ``(15) Tier i conservation practice.--The term `Tier I 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(5)(A).
            ``(16) Tier ii conservation practice.--The term `Tier II 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(5)(B).
            ``(17) Tier iii conservation practice.--The term `Tier III 
        conservation practice' means a conservation practice described 
        in section 1238A(d)(5)(C).

``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--Beginning in fiscal year 2003, the Secretary 
shall establish a conservation security program to assist owners and 
operators of agricultural operations to promote, as is applicable for 
each operation--
            ``(1) conservation of soil, water, energy, and other 
        related resources;
            ``(2) soil quality protection and improvement;
            ``(3) water quality protection and improvement;
            ``(4) air quality protection and improvement;
            ``(5) soil, plant, or animal health and well-being;
            ``(6) diversity of flora and fauna;
            ``(7) on-farm conservation and regeneration of biological 
        resources, including plant and animal germplasm;
            ``(8) wetland restoration, conservation, and enhancement;
            ``(9) wildlife habitat management, with special emphasis on 
        species identified by any natural heritage program of the 
        applicable State;
            ``(10) reduction of greenhouse gas emissions and 
        enhancement of carbon sequestration;
            ``(11) environmentally sound management of invasive 
        species;
            ``(12) enhancement of conservation technology and resource 
        management practices approved by the Secretary; or
            ``(13) any similar conservation purpose (as determined by 
        the Secretary).
    ``(b) Eligibility.--
            ``(1) Eligible owners and operators.--To be eligible to 
        participate in the conservation security program (other than to 
        receive technical assistance under section 1238C(f) for the 
        development of conservation security contracts), an owner or 
        operator shall--
                    ``(A) develop and submit to the Secretary, and 
                obtain the approval of the Secretary of, a conservation 
                security plan that meets the requirements of subsection 
                (c)(1); and
                    ``(B) enter into a conservation security contract 
                with the Secretary to carry out the conservation 
                security plan.
            ``(2) Eligible land.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C)(iii), private agricultural land 
                (including cropland, grassland, prairie land, pasture 
                land, and rangeland) shall be eligible for enrollment 
                in the conservation security program.
                    ``(B) Forested land.--Private forested land shall 
                be eligible for enrollment in the conservation security 
                program if the forested land is integrated into the 
                agricultural operation described in subparagraph (A), 
                including land that is used for--
                            ``(i) alley cropping;
                            ``(ii) forest farming;
                            ``(iii) forest buffers;
                            ``(iv) windbreaks;
                            ``(v) silvopasture systems; and
                            ``(vi) such other uses as the Secretary may 
                        determine to be appropriate.
                    ``(C) Exclusions.--
                            ``(i) Conservation reserve program.--Land 
                        enrolled in the conservation reserve program 
                        under subchapter B of chapter 1 shall not be 
                        eligible for enrollment in the conservation 
                        security program except for land described in 
                        section 1231(b)(4).
                            ``(ii) Wetlands reserve program.--Land 
                        enrolled in the wetlands reserve program 
                        established under subchapter C of chapter 1 
                        shall not be eligible for enrollment in the 
                        conservation security program.
                            ``(iii) Conversion to cropland.--Land that 
                        is converted to cropland after the date of 
                        enactment of this subchapter shall not be 
                        eligible for enrollment in the conservation 
                        security program.
    ``(c) Conservation Security Plans.--
            ``(1) In general.--A conservation security plan shall--
                    ``(A) identify the resources and designated land to 
                be conserved under the conservation security plan;
                    ``(B) describe--
                            ``(i) the tier of conservation practices, 
                        and the particular conservation practices to be 
                        implemented, maintained, or improved, in 
                        accordance with subsection (d) on the land 
                        covered by the conservation security contract 
                        for the specified term; and
                            ``(ii) as appropriate for the land covered 
                        by the conservation security contract, the 
                        minimum number and scope of conservation 
                        practices described in clause (i) that are 
                        required to be carried out on the land before 
                        the owner or operator is eligible to receive--
                                    ``(I) a base payment; and
                                    ``(II) a bonus amount, if the owner 
                                or operator implements, maintains, or 
                                improves any conservation practice in 
                                addition to the conservation practices 
                                described in clause (i);
                    ``(C) contain a schedule for the implementation, 
                maintenance, or improvement of the conservation 
                practices described in the conservation security plan 
                during the term of the conservation security contract;
                    ``(D) meet the requirements of the highly erodible 
                land and wetland conservation requirements of subtitles 
                B and C; and
                    ``(E) identify sustainable economic uses to be 
                applied to the land that--
                            ``(i) maintain the agricultural nature of 
                        land; and
                            ``(ii) are consistent with the natural 
                        resource and environmental benefits of the 
                        conservation security plan; and
                    ``(F) contain such other terms as the Secretary 
                determines to be appropriate.
            ``(2) Comprehensive planning.--The Secretary shall 
        encourage owners and operators that enter into conservation 
        security contracts--
                    ``(A) to undertake a comprehensive examination of 
                the opportunities for conserving natural resources and 
                improving the profitability, environmental health, and 
                quality of life in relation to their entire 
                agricultural operation;
                    ``(B) to develop a long-term strategy for 
                implementing, monitoring, and evaluating conservation 
                practices and environmental results in the entire 
                agricultural operation;
                    ``(C) to participate in other Federal, State, 
                local, or private conservation programs;
                    ``(D) to maintain the agricultural integrity of the 
                land; and
                    ``(E) to adopt innovative conservation technologies 
                and management practices.
            ``(3) State and local conservation priorities.--To the 
        maximum extent practicable and in a manner consistent with the 
        conservation security program, each conservation security plan 
        shall address the minimum number of conservation priorities of 
        the State and locality in which the agricultural operation is 
        located (as determined by the State conservationist in 
        consultation with the State technical committee established 
        under subtitle G and the local subcommittee of the State 
        technical committee) as the Secretary determines to be 
        appropriate.
            ``(4) Submission of plan.--
                    ``(A) In general.--During the development of a 
                conservation security plan by an owner or operator and 
                the Secretary, the Secretary shall supply to the owner 
                or operator a statement of the minimum number, type, 
                and scope of conservation practices described in 
                paragraph (1)(B)(ii).
                    ``(B) Approval for base payments.--If a 
                conservation security plan submitted to the Secretary 
                contains the minimum number, type, and scope of 
                conservation practices referred to in paragraph 
                (1)(B)(ii)--
                            ``(i) the Secretary may approve the 
                        conservation security plan; and
                            ``(ii) the owner or operator of the 
                        conservation security plan, on approval of and 
                        compliance with the plan, as determined by the 
                        Secretary, shall be eligible to receive a base 
                        payment.
                    ``(C) Approval for bonus amounts.--If a 
                conservation security plan submitted to the Secretary 
                contains a proposal for the implementation, 
                maintenance, or improvement of a conservation practice 
                that is greater than the minimum number, type, and 
                scope of a conservation practice referred to in 
                paragraph (1)(B)(ii)(I), the Secretary may increase the 
                base payment of the owner or operator by such bonus 
                amount as the Secretary determines is appropriate.
    ``(d) Conservation Practices.--
            ``(1) In general.--
                    ``(A) Establishment of tiers.--The Secretary shall 
                establish 3 tiers of conservation practices that are 
                eligible for payment under a conservation security 
                contract.
                    ``(B) Eligible conservation practices.--
                            ``(i) In general.--The Secretary shall make 
                        eligible for payment under a conservation 
                        security contract land management, vegetative, 
                        and structural practices that--
                                    ``(I) are necessary to achieve the 
                                objectives of the conservation security 
                                plan; and
                                    ``(II) primarily provide for and 
                                have as the primary purpose resource 
                                protection and environmental 
                                improvement.
                            ``(ii) Determination.--
                                    ``(I) In general.--In determining 
                                the eligibility of a practice described 
                                in clause (i), the Secretary shall 
                                require the lowest cost alternatives be 
                                used to fulfill the objectives of the 
                                conservation security plan.
                                    ``(II) Limitation.--Notwithstanding 
                                subclause (I), the adoption of 
                                innovative technologies shall, to the 
                                maximum extent practicable, not be 
                                limited.
            ``(2) On-farm research and demonstration.--With respect to 
        land enrolled in the conservation security program that will be 
        maintained using a Tier II conservation practice or Tier III 
        conservation practice, the Secretary may approve a conservation 
        security plan that includes on-farm conservation research and 
        demonstration activities, including--
                    ``(A) total farm planning;
                    ``(B) total resource management;
                    ``(C) integrated farming systems;
                    ``(D) germplasm conservation and regeneration;
                    ``(E) greenhouse gas reduction and carbon 
                sequestration;
                    ``(F) agro-ecological restoration and wildlife 
                habitat restoration;
                    ``(G) agro-forestry;
                    ``(H) invasive species control;
                    ``(I) energy conservation and management;
                    ``(J) farm and environmental results monitoring and 
                evaluation; or
                    ``(K) participation in research projects relating 
                to water conservation and management through--
                            ``(i) recycling or reuse of water; or
                            ``(ii) more efficient irrigation of 
                        farmland.
            ``(3) Use of handbook and guides.--
                    ``(A) In general.--In determining eligible 
                conservation practices under the conservation security 
                program, the Secretary shall use the National Handbook 
                of Conservation Practices and the field office 
                technical guides of the Natural Resources Conservation 
                Service.
                    ``(B) Conservation practice standards.--To the 
                maximum extent practicable, the Secretary shall 
                establish guidance standards for implementation of 
                eligible conservation practices that shall include 
                measurable goals for enhancing and preventing 
                degradation of resources.
                    ``(C) Adjustments.--
                            ``(i) In general.--After providing notice 
                        and an opportunity for public participation, 
                        the Secretary shall make such adjustments to 
                        the National Handbook of Conservation Practices 
                        as are necessary to carry out this chapter.
                            ``(ii) Effect on plan.--If the Secretary 
                        makes an adjustment to a practice under clause 
                        (i), the Secretary may require an adjustment to 
                        a conservation security plan in effect as of 
                        the date of the adjustment if the Secretary 
                        determines that the plan, without the 
                        adjustment, would significantly interfere with 
                        achieving the purposes of the conservation 
                        security program.
                    ``(D) Pilot testing.--
                            ``(i) In general.--Under any of the 3 tiers 
                        of conservation practices established under 
                        paragraph (5), the Secretary may approve 
                        requests by an owner or operator for pilot 
                        testing of new technologies and innovative 
                        conservation practices and systems.
                            ``(ii) Incorporation into standards.--After 
                        evaluation by the Secretary and provision of 
                        notice and an opportunity for public 
                        participation, the Secretary may incorporate 
                        new technologies and innovative conservation 
                        practices and systems into the standards for 
                        implementation of conservation practices 
                        established under paragraph (1).
            ``(4) Tiers.--To carry out this subsection, the Secretary 
        shall establish the following 3 tiers of conservation 
        practices, the minimum requirements for which shall be 
        determined by the State conservationist in consultation with 
        the State technical committee established under subtitle G and 
        the local subcommittee of the State technical committee:
                    ``(A) Tier i conservation practices.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier I conservation practices shall, at a 
                        minimum--
                                    ``(I) if applicable, address at 
                                least 1 resource of concern to the 
                                particular agricultural operation;
                                    ``(II) apply to the total 
                                agricultural operation or to a 
                                particular unit of the agricultural 
                                operation;
                                    ``(III) cover--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
                                        conservation security contract; 
                                        and
                                    ``(IV) meet applicable standards 
                                for implementation of conservation 
                                practices established under paragraph 
                                (4).
                            ``(ii) Conservation practices.--Tier I 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator, 1 or more of the 
                        following basic conservation activities:
                                    ``(I) Soil conservation, quality, 
                                and residue management.
                                    ``(II) Invasive species management.
                                    ``(III) Fish and wildlife habitat 
                                management, with special emphasis on 
                                species identified by any natural 
                                heritage program of the applicable 
                                State or the appropriate State agency.
                                    ``(IV) Fish and wildlife 
                                conservation and enhancement.
                                    ``(V) Air quality management.
                                    ``(VI) Energy conservation 
                                measures.
                                    ``(VII) Biological resource 
                                conservation and regeneration.
                                    ``(VIII) Animal health management.
                                    ``(IX) Plant and animal germplasm 
                                conservation, evaluation, and 
                                development.
                                    ``(X) Contour farming.
                                    ``(XI) Strip cropping.
                                    ``(XII) Cover cropping.
                                    ``(XIII) Sediment dams.
                                    ``(XIV) Any other conservation 
                                practice that the Secretary determines 
                                to be to be appropriate and comparable 
                                to other conservation practices 
                                described in this clause.
                            ``(iii) Tier ii conservation practices.--A 
                        conservation security plan for land enrolled in 
                        the conservation security program that will be 
                        maintained using Tier I conservation practices 
                        may include Tier II conservation practices.
                    ``(B) Tier ii conservation practices.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier II conservation practices shall, at a 
                        minimum--
                                    ``(I) address at least 1 resource 
                                of concern, as specified in the 
                                conservation security plan covering the 
                                total agricultural operation;
                                    ``(II) cover--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
                                        conservation security contract; 
                                        and
                                    ``(III) meet applicable resource 
                                management system criteria for the 
                                chosen resource of concern of the 
                                agricultural operation.
                            ``(ii) Conservation practices.--Tier II 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator, 1 or more of the 
                        following land use adjustment or protection 
                        practices:
                                    ``(I) Resource-conserving crop 
                                rotations.
                                    ``(II) Controlled, rotational 
                                grazing.
                                    ``(III) Conversion of portions of 
                                cropland from a soil-depleting use to a 
                                soil-conserving use, including 
                                production of cover crops.
                                    ``(IV) Partial field conservation 
                                practices (including windbreaks, grass 
                                waterways, shelter belts, filter 
                                strips, riparian buffers, wetland 
                                buffers, contour buffer strips, living 
                                snow fences, crosswind trap strips, 
                                field borders, wildlife corridors, and 
                                critical area planting appropriate to 
                                the agricultural operation).
                                    ``(V) Fish and wildlife habitat 
                                conservation and restoration.
                                    ``(VI) Native grassland and prairie 
                                protection and restoration.
                                    ``(VII) Wetland protection and 
                                restoration.
                                    ``(VIII) Agroforestry practices and 
                                systems.
                                    ``(IX) Any other conservation 
                                practice involving modification of the 
                                use of land (including advanced till 
                                practices) that the Secretary 
                                determines to be appropriate and 
                                comparable to other conservation 
                                practices described in this clause.
                    ``(C) Tier iii conservation practices.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier III conservation practices shall, at a 
                        minimum--
                                    ``(I) address all applicable 
                                resources of concern in the total 
                                agricultural operation;
                                    ``(II) cover--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
                                        conservation security contract; 
                                        and
                                    ``(III) meet applicable resource 
                                management system criteria.
                            ``(ii) Conservation practices.--Tier III 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator, development, 
                        implementation, and maintenance of a 
                        conservation security plan that, over the term 
                        of the conservation security contract--
                                    ``(I) integrates a full complement 
                                of conservation practices to foster 
                                environmental enhancement and the long-
                                term sustainability of the natural 
                                resource base of an agricultural 
                                operation; and
                                    ``(II) improves profitability and 
                                quality of life associated with the 
                                agricultural operation.
    ``(e) Conservation Security Contracts.--
            ``(1) Contracts.--
                    ``(A) In general.--On approval of a conservation 
                security plan of an owner or operator, the Secretary 
                shall enter into a conservation security contract with 
                the owner or operator to enroll the land covered by the 
                conservation security plan in the conservation security 
                program.
                    ``(B) Required components.--A conservation security 
                contract shall specifically describe--
                            ``(i) the minimum criteria that an owner or 
                        operator is required to meet to receive a base 
                        payment; and
                            ``(ii) the minimum conservation practices 
                        that an owner or operator is required to 
                        implement, maintain, or improve to receive a 
                        bonus amount.
            ``(2) Term.--Subject to paragraphs (3) and (4)--
                    ``(A) a conservation security contract for land 
                enrolled in the conservation security program that will 
                be maintained using 1 or more Tier I conservation 
                practices shall have a term of 5 years; and
                    ``(B) a conservation security contract for land 
                enrolled in the conservation security program that will 
                be maintained using a Tier II conservation practice or 
                Tier III conservation practice shall have a 5-year to 
                10-year term, as determined by the owner or operator.
            ``(3) Modifications.--
                    ``(A) Optional modifications.--
                            ``(i) In general.--An owner or operator may 
                        apply to the Secretary to modify the 
                        conservation security plan in a manner 
                        consistent with the purposes of the 
                        conservation security program.
                            ``(ii) Approval by the secretary.--To be 
                        effective, any modification under clause (i)--
                                    ``(I) shall be approved by the 
                                Secretary; and
                                    ``(II) shall authorize the 
                                Secretary to redetermine, if necessary, 
                                the amount and timing of the payments 
                                under the conservation security 
                                contract and section 1238C(b)(1).
                    ``(B) Other modifications.--
                            ``(i) In general.--The Secretary may in 
                        writing require an owner or operator to modify 
                        a conservation security contract before the 
                        expiration of the conservation security 
                        contract if--
                                    ``(I) the Secretary determines that 
                                a change made to the type, size, 
                                management, or other aspect of the 
                                agricultural operation of the owner or 
                                operator would, without the 
                                modification of the contract, 
                                significantly interfere with achieving 
                                the purposes of the conservation 
                                security program; or
                                    ``(II) the Secretary makes a change 
                                to the National Handbook of 
                                Conservation Practices under subsection 
                                (d)(3)(C).
                            ``(ii) Payments.--The Secretary may adjust 
                        the amount and timing of the payment schedule 
                        under the conservation security contract to 
                        reflect any modifications required under this 
                        subparagraph.
                            ``(iii) Deadline.--The Secretary may 
                        terminate a conservation security contract if a 
                        modification required under this subparagraph 
                        is not submitted to the Secretary in the form 
                        of an amended conservation security contract by 
                        the date that is 90 days after the date on 
                        which the Secretary issues a written request 
                        for the modification.
                            ``(iv) Termination.--An owner or operator 
                        that is required to modify a conservation 
                        security contract under this subparagraph may, 
                        in lieu of modifying the contract--
                                    ``(I) terminate the conservation 
                                security contract; and
                                    ``(II) retain payments received 
                                under the conservation security 
                                contract, if the owner or operator 
                                fully complied with the terms and 
                                conditions of the conservation security 
                                contract before termination of the 
                                contract.
            ``(4) Renewal.--
                    ``(A) In general.--At the option of an owner or 
                operator, the conservation security contract of the 
                owner or operator may be renewed, for a term described 
                in subparagraph (B), if--
                            ``(i) the owner or operator agrees to any 
                        modification of the applicable conservation 
                        security contract that the Secretary determines 
                        to be necessary to achieve the purposes of the 
                        conservation security program;
                            ``(ii) the Secretary determines that the 
                        owner or operator has complied with the terms 
                        and conditions of the conservation security 
                        contract, including the conservation security 
                        plan; and
                            ``(iii) in the case of a conservation 
                        security contract for land previously enrolled 
                        using only Tier I conservation practices, the 
                        owner or operator agrees to increase the level 
                        of conservation treatment on land enrolled in 
                        the conservation security program by--
                                    ``(I) adopting new conservation 
                                practices; or
                                    ``(II) expanding existing practices 
                                to meet the resource management systems 
                                criteria.
                    ``(B) Terms of renewal.--Under subparagraph (A)--
                            ``(i) a conservation security contract for 
                        land enrolled in the conservation security 
                        program that will be maintained using only Tier 
                        I conservation practices may be renewed for 5-
                        year terms;
                            ``(ii) a conservation security contract for 
                        land enrolled in the conservation security 
                        program that will be maintained using only Tier 
                        II conservation practices or Tier III 
                        conservation practices shall be renewed for 5-
                        year to 10-year terms, at the option of the 
                        owner or operator; and
                            ``(iii) previous participation in the 
                        conservation security program does not bar 
                        renewal more than once.
    ``(f) No Violation for Noncompliance Due to Circumstances Beyond 
the Control of the Owner or Operator.--The Secretary shall include in 
the conservation security contract a provision, and may modify a 
conservation security contract under subsection (e)(3)(B), to ensure 
that an owner or operator shall not be considered in violation of a 
conservation security contract for failure to comply with the 
conservation security contract due to circumstances beyond the control 
of the owner or operator, including a disaster or related condition, as 
determined by the Secretary.

``SEC. 1238B. DUTIES OF OWNERS AND OPERATORS.

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

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

    ``(a) Advance Payment.--At the time at which an owner or operator 
enters into a conservation security contract, the Secretary shall, at 
the option of the owner or operator, make an advance payment to the 
owner or operator in an amount not to exceed--
            ``(1) in the case of a contract to maintain Tier I 
        conservation practices, the greater of--
                    ``(A) $1,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary;
            ``(2) in the case of a contract to maintain Tier II 
        conservation practices, the greater of--
                    ``(A) $2,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary; or
            ``(3) in the case of a contract to maintain Tier III 
        conservation practices, the greater of--
                    ``(A) $3,000; or
                    ``(B) 20 percent of the value of the annual payment 
                under the contract, as determined by the Secretary.
    ``(b) Annual Payments.--
            ``(1) Criteria for determining amount of payments.--
                    ``(A) Base rate.--In this paragraph, the term `base 
                rate' means the average county rental rate for the 
                specific land use during the 2001 crop year, or another 
                appropriate average county rate for the 2001 crop year, 
                as determined by the Secretary.
                    ``(B) Payments.--A payment for a conservation 
                practice under this paragraph shall be determined in 
                accordance with subparagraphs (C) through (F).
                    ``(C) Tier i conservation practices.--The payment 
                for a conservation security contract covering only Tier 
                I conservation practices shall be comprised of the sum 
                of the following:
                            ``(i) An amount equal to 6 percent of the 
                        base rate for land covered by the contract.
                            ``(ii) An amount equal to the cost of 
                        practices described in the conservation 
                        security contract, based on average county 
                        costs for practices for the 2001 crop year, 
                        comprised of--
                                    ``(I) 100 percent of the cost of 
                                the adoption of new, and the cost of 
                                maintenance of new and existing, 
                                management practices;
                                    ``(II) 100 percent of the cost of 
                                maintenance of existing land-based 
                                structural practices approved by the 
                                Secretary; and
                                    ``(III)(aa) subject to item (bb), 
                                75 percent of the cost of adoption of 
                                new land-based structural practices 
                                (or, in the case of a limited resource 
                                or beginning farmer or rancher (as 
                                defined in section 343(a) of the 
                                Consolidated Farm and Rural Development 
                                Act (7 U.S.C. 1991(a))), 90 percent of 
                                the cost of that adoption); or
                                    ``(bb) in a case in which a 
                                structural practice for which a similar 
                                structural practice under the 
                                environmental quality incentives 
                                program established under chapter 4 
                                would require maintenance, if the owner 
                                or operator agrees to provide, without 
                                reimbursement, substantially equivalent 
                                maintenance, the amount specified in 
                                item (aa).
                            ``(iii) A bonus amount determined by the 
                        Secretary for implementing or adopting 1 or 
                        more of the following practices:
                                    ``(I) A practice adopted or 
                                maintained that maximizes the 
                                objectives of the conservation security 
                                program beyond the minimum requirements 
                                of the practices adopted or maintained.
                                    ``(II) A practice adopted or 
                                maintained to address eligible resource 
                                and conservation concerns that are not 
                                identified as local conservation 
                                priorities.
                                    ``(III) A practice adopted or 
                                maintained to address national priority 
                                concerns, as determined by the 
                                Secretary.
                                    ``(IV) Participation by the owner 
                                or operator in a conservation research 
                                project.
                                    ``(V) Participation by the owner or 
                                operator in a watershed or regional 
                                resource conservation plan that 
                                involves at least 75 percent of owners 
                                or operators in a targeted area.
                                    ``(VIII) Recordkeeping, monitoring, 
                                and evaluation carried out by the owner 
                                or operator that furthers the purposes 
                                of the conservation security program.
                            ``(iv) A bonus amount determined by the 
                        Secretary that reflects the status of an owner 
                        or operator as a beginning farmer or rancher 
                        (as defined in section 343(a) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1991(a)).
                    ``(D) Tier ii conservation practices.--The payment 
                for a conservation security contract covering Tier II 
                conservation practices shall be comprised of the sum of 
                the following:
                            ``(i) An amount equal to 11 percent of the 
                        base rate for land covered by the conservation 
                        security contract.
                            ``(ii) An amount equal to the costs of 
                        practices described in the conservation 
                        security contract, based on average county 
                        costs for practices for the 2001 crop year, 
                        described in subparagraph (C)(ii).
                            ``(iii) A bonus amount determined by the 
                        Secretary in accordance with clauses (iii) and 
                        (iv) of subparagraph (C) (including 
                        consideration of any practices adopted or 
                        maintained by the owner or operator that exceed 
                        resource management system standards).
                    ``(E) Tier iii conservation practices.--The payment 
                for a conservation security contract covering Tier III 
                conservation practices shall be comprised of the sum of 
                the following:
                            ``(i) An amount equal to 20 percent of the 
                        base rate for land covered by the conservation 
                        security contract.
                            ``(ii) An amount equal to the costs of 
                        practices described in the conservation 
                        security contract, based on average county 
                        costs for practices for the 2001 crop year, 
                        described in subparagraph (C)(ii).
                            ``(iii) A bonus amount determined by the 
                        Secretary in accordance with subparagraph 
                        (D)(iii).
                    ``(F) Exclusion of costs for purchase or 
                maintenance of equipment or non-land based 
                structures.--A payment under this subchapter shall not 
                include any amount for the purchase or maintenance of 
                equipment or a non-land based structure.
            ``(2) Time of payment.--The Secretary shall provide 
        payments under a conservation security contract as soon as 
        practicable after October 1 of each fiscal year.
            ``(3) Limitation on payments.--
                    ``(A) In general.--Subject to paragraphs (1), (2), 
                (4), and (5), under a conservation security contract, 
                the Secretary shall, in amounts and for a term 
                specified in the conservation security contract and 
                taking into account any advance payments, make an 
                annual payment to the individual or entity in an amount 
                not to exceed--
                            ``(i) in the case of a contract to maintain 
                        Tier I conservation practices, $20,000;
                            ``(ii) in the case of a contract to 
                        maintain Tier II conservation practices, 
                        $35,000; or
                            ``(iii) in the case of a contract to 
                        maintain Tier III conservation practices, 
                        $50,000.
                    ``(B) Limitation on nonbonus payments.--In applying 
                the payment limitation under each of clauses (i), (ii), 
                and (iii) of subparagraph (A), an individual or entity 
                may not receive payments described in clauses (i) and 
                (ii) of paragraph (3)(C), (3)(D), or (3)(E), as 
                appropriate, in an amount that exceeds 75 percent of 
                the applicable payment limitation.
                    ``(C) Other usda payments.--If an owner or operator 
                has the same practices on the same land enrolled in the 
                conservation security program and 1 or more other 
                conservation programs administered by the Secretary, 
                the Secretary shall include all payments, other than 
                payments for conservation easements, from the 
                conservation security program and the other 
                conservation programs in applying the annual payment 
                limitations this paragraph.
                    ``(D) Non-usda payments.--Payments received from a 
                Federal program not administered by the Secretary, or 
                administered by any State, local, or private 
                agricultural program, shall not be considered an annual 
                payment for purposes of the annual payment limitations 
                under this paragraph.
                    ``(E) Commensurate share.--To be eligible to 
                receive a payment under this subchapter, an individual 
                or entity shall make contributions of land, labor, 
                management, equipment, and capital to the operation of 
                the farm that are at least commensurate with the share 
                of the proceeds of the operation of the individual or 
                entity.
            ``(4) Land enrolled in other conservation programs.--
        Notwithstanding any other provision of law, if an owner or 
        operator has land enrolled in another conservation program 
        administered by the Secretary and has applied to enroll the 
        same land in the conservation security program, the owner or 
        operator may elect to--
                    ``(A) convert the contract under the other 
                conservation program to a conservation security 
                contract, without penalty, except that this 
                subparagraph shall not apply to a long-term or 
                permanent conservation easement; or
                    ``(B) have each annual payment to the owner or 
                operator under this subsection reduced to reflect 
                payment for practices the owner or operator receives 
                under the other conservation program, except that the 
                annual payment under this subsection may include 
                incentives for qualified practices that enhance or 
                extend the conservation benefit achieved under the 
                other conservation program.
            ``(5) Waste storage or treatment facilities.--A payment to 
        an owner or operator under this subchapter shall not be 
        provided for the purpose of construction or maintenance of 
        animal waste storage or treatment facilities or associated 
        waste transport or transfer devices for animal feeding 
        operations.
    ``(c) Regulations.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations that--
                    ``(A) provide that no individual or entity, 
                directly or indirectly, may receive payments exceeding 
                the applicable amount specified in subsection (a) or 
                (b);
                    ``(B) provide for adequate safeguards to protect 
                the interests of tenants and sharecroppers, including 
                provision for sharing payments, on a fair and equitable 
                basis; and
                    ``(C) prescribe such other rules as the Secretary 
                determines to be necessary to ensure a fair and 
                reasonable application of the limitations established 
                under subsections (a) and (b).
            ``(2) Penalties for schemes or devices.--
                    ``(A) In general.--If the Secretary determines that 
                an individual or entity has adopted a scheme or device 
                to evade, or that has the purpose of evading, the 
                regulations promulgated under paragraph (1), the 
                individual or entity shall be ineligible to participate 
                in the conservation security program for the year for 
                which the scheme or device was adopted and each of the 
                following 5 years.
                    ``(B) Fraud.--If the Secretary determines that 
                fraud was committed in connection with the scheme or 
                device, the individual or entity shall be ineligible to 
                participate in the conservation security program for 
                the year for which the scheme or device was adopted and 
                each of the following 10 years.
    ``(d) Termination.--
            ``(1) In general.--Subject to section 1238B, the Secretary 
        shall allow an owner or operator to terminate the conservation 
        security contract.
            ``(2) Payments.--The owner or operator may retain any or 
        all payments received under a terminated conservation security 
        contract if--
                    ``(A) the owner or operator is in full compliance 
                with the terms and conditions (including any 
                maintenance requirements) of the conservation security 
                contract as of the date of the termination; and
                    ``(B) the Secretary determines that termination of 
                the contract will not defeat the goals described in the 
                conservation security plan of the owner or operator.
    ``(e) Transfer or Change of Interest in Land Subject to 
Conservation Security Contract.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        transfer, or change in the interest, of an owner or operator in 
        land subject to a conservation security contract shall result 
        in the termination of the conservation security contract.
            ``(2) Transfer of duties and rights.--Paragraph (1) shall 
        not apply if, not later than 60 days after the date of the 
        transfer or change in the interest in land, the transferee of 
        the land provides written notice to the Secretary that all 
        duties and rights under the conservation security contract have 
        been transferred to the transferee.
    ``(f) Technical Assistance.--
            ``(1) In general.--For each fiscal year, the Secretary 
        shall provide technical assistance to owners and operators for 
        the development and implementation of conservation security 
        contracts, in an amount not to exceed 20 percent of funds 
        expended for the fiscal year.
            ``(2) Coordination by the secretary.--The Secretary shall 
        provide overall technical coordination and leadership for the 
        conservation security program, including final approval of all 
        conservation security plans.
    ``(g) Conservation Security Pilot Program.--
            ``(1) In general.--The Secretary, in cooperation with 
        appropriate State agencies, may establish a pilot program to 
        demonstrate and evaluate the implementation of a conservation 
        security program in a State described in paragraph (2).
            ``(2) Eligible state.--The State referred to in paragraph 
        (1) is a State selected by the Secretary--
                    ``(A) in consultation with the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate; and
                    ``(B) after taking into consideration--
                            ``(i) the percentage of private working 
                        land in the State; and
                            ``(ii) infrastructure in the State that is 
                        available to implement the pilot program under 
                        paragraph (1).''.

SEC. 202. FUNDING.

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

SEC. 203. PARTNERSHIPS AND COOPERATION.

    Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is 
amended by adding at the end the following:
    ``(f) Partnerships and Cooperation.--
            ``(1) In general.--In carrying out any program under 
        subtitle D, the Secretary may designate special projects, as 
        recommended by the State Conservationist, with advice from the 
        State technical committee, to enhance technical and financial 
        assistance provided to producers to address environmental 
        issues affected by agricultural production with respect to--
                    ``(A) meeting the purposes of--
                            ``(i) the Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.) or comparable 
                        State 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, such as 
                wetland (including State or multi-State projects to 
                facilitate surface and ground water conservation, to 
                protect water quality, or for protection of endangered 
                or threatened species or habitat, such as conservation 
                corridors).
            ``(2) Incentives.--To realize the objectives of the special 
        projects under paragraph (1), the Secretary may 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) Flexibility.--
                    ``(A) In general.--The Secretary may enter into 
                agreements with States to allow greater flexibility to 
                adjust the application of eligibility criteria, 
                approved practices, innovative conservation practices, 
                and other elements of the programs under this subtitle 
                to better reflect unique local circumstances and goals 
                in a manner that is consistent with--
                            ``(i) environmental enhancement and long 
                        term sustainability of the natural resource 
                        base; and
                            ``(ii) the purposes of this subtitle.
                    ``(B) Plan.--Each party to an agreement under 
                subparagraph (A) shall submit to the Secretary, for 
                approval by the Secretary, a special project area or 
                priority area program plan for each program to be 
                carried out by the party that includes--
                            ``(i) a description of the proposed 
                        adjustments to program implementation 
                        (including a description of how those 
                        adjustments will accelerate the achievement of 
                        environmental benefits);
                            ``(ii) an analysis of the contribution 
                        those adjustments will make to the 
                        effectiveness of programs in achieving the 
                        purposes of the special project or priority 
                        area program;
                            ``(iii) a timetable for reevaluating the 
                        need for or performance of those proposed 
                        adjustments;
                            ``(iv) a description of non-Federal 
                        programs and resources that will contribute to 
                        achieving the objectives of the special project 
                        or priority area program; and
                            ``(v) a plan for regular monitoring, 
                        evaluation, and reporting of progress toward 
                        the objectives of the special project or 
                        priority area program.
            ``(4) Unused funding.--Any funds made available for a 
        fiscal year under this subsection that are not obligated by 
        September 30 of the fiscal year may be used to carry out other 
        activities under this chapter during future fiscal years.''.

SEC. 204. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

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

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

    ``(a) Good Faith Reliance.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, except as provided in paragraph (4), the Secretary shall 
        provide equitable relief to an owner or operator that has 
        entered into a contract under a conservation program 
        administered by the Secretary, and that is subsequently 
        determined to be in violation of the contract, if the owner or 
        operator in attempting to comply with the terms of the contract 
        and enrollment requirements--
                    ``(A) took actions in good faith reliance on the 
                action or advice of an employee of the Secretary; and
                    ``(B) had no knowledge that the actions taken were 
                in violation of the contract.
            ``(2) Types of relief.--The Secretary shall--
                    ``(A) to the extent the Secretary determines that 
                an owner or operator has been injured by good faith 
                reliance described in paragraph (1), allow the owner or 
                operator--
                            ``(i) to retain payments received under the 
                        contract;
                            ``(ii) to continue to receive payments 
                        under the contract;
                            ``(iii) to keep all or part of the land 
                        covered by the contract enrolled in the 
                        applicable program under this chapter;
                            ``(iv) to reenroll all or part of the land 
                        covered by the contract in the applicable 
                        program under this chapter; or
                            ``(v) to receive any other equitable relief 
                        the Secretary considers appropriate; and
                    ``(B) require the owner or operator to take such 
                actions as are necessary to remedy any failure to 
                comply with the contract.
            ``(3) Relationship to other law.--The authority to provide 
        relief under this subsection shall be in addition to any other 
        authority provided in this or any other Act.
            ``(4) Exceptions.--This section shall not apply to--
                    ``(A) any pattern of conduct in which an employee 
                of the Secretary takes actions or provides advice with 
                respect to an owner or operator that the employee and 
                the owner or operator know are inconsistent with 
                applicable law (including regulations); or
                    ``(B) an owner or operator takes any action, 
                independent of any advice or authorization provided by 
                an employee of the Secretary, that the owner or 
                operator knows or should have known to be inconsistent 
                with applicable law (including regulations).
            ``(5) Applicability of relief.--Relief under this section 
        shall be available for contracts in effect on the date of 
        enactment of this section.
    ``(b) Education, Outreach, Monitoring, and Evaluation.--In carrying 
out any conservation program administered by the Secretary, the 
Secretary--
            ``(1) shall provide education, outreach, monitoring, 
        evaluation, and related services to agricultural producers 
        (including owners and operators of small and medium-sized 
        farms, socially disadvantaged agricultural producers, and 
        limited resource agricultural producers);
            ``(2) may enter into contracts with private nonprofit, 
        community-based organizations and educational institutions with 
        demonstrated experience in providing the services described in 
        paragraph (1), to provide those services; and
            ``(3) shall use such sums as are necessary from funds of 
        the Commodity Credit Corporation to carry out activities 
        described in paragraphs (1) and (2).
    ``(c) Socially Disadvantaged and Limited Resource Owners and 
Operators.--The Secretary shall provide outreach, training, and 
technical assistance specifically to encourage and assist socially 
disadvantaged and limited resource owners and operators to participate 
in conservation programs administered by the Secretary.
    ``(d) Program Evaluation.--The Secretary shall maintain data 
concerning conservation security plans, conservation practices planned 
or implemented, environmental outcomes, economic costs, and related 
matters under conservation programs administered by the Secretary.
    ``(e) Mediation and Informal Hearings.--If the Secretary makes a 
decision under a conservation program administered by the Secretary 
that is adverse to an owner or operator, at the request of the owner or 
operator, the Secretary shall provide the owner or operator with 
mediation services or an informal hearing on the decision.
    ``(f) Exemption From Automatic Sequester.--Notwithstanding any 
other provision of law, no order issued for any fiscal year under 
section 252 of the Balanced Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 902) shall affect any payment a conservation program 
administered by the Secretary.
    ``(g) Reports.--Not later than 18 months after the date of 
enactment of this subsection and at the end of each 2-year period 
thereafter, the Secretary shall submit to Congress a report evaluating 
the results of each conservation program administered by the Secretary, 
including--
            ``(1) an evaluation of the scope, quality, and outcomes of 
        the conservation practices carried out under the program; and
            ``(2) recommendations for achieving specific and 
        quantifiable improvements for the purposes of each of the 
        programs.
    ``(h) Technical Assistance.--
            ``(1) In general.--Under any conservation program 
        administered by the Secretary, subject to paragraph (2), 
        technical assistance provided by persons certified under 
        paragraph (3) (including farmers and ranchers) may include--
                    ``(A) conservation planning;
                    ``(B) design, installation, and certification of 
                conservation practices;
                    ``(C) training for producers; and
                    ``(D) such other activities as the Secretary 
                determines to be appropriate.
            ``(2) Outside assistance.--
                    ``(A) In general.--The Secretary may contract 
                directly with qualified persons not employed by the 
                Department to provide conservation technical 
                assistance.
                    ``(B) Payment by secretary.--
                            ``(i) In general.--The Secretary may 
                        provide a payment or voucher to an owner or 
                        operator enrolled in a conservation program 
                        administered by the Secretary if the owner or 
                        operator chooses to obtain technical assistance 
                        from a person certified to provide technical 
                        assistance under this section.
                            ``(ii) Determination.--In determining 
                        whether to provide a payment or voucher under 
                        clause (i), the Secretary shall seek to 
                        maximize the assistance received from qualified 
                        persons to most expeditiously and efficiently 
                        achieve the objectives of this title.
            ``(3) Certification of private providers of technical 
        assistance.--
                    ``(A) Establishment of procedures.--The Secretary 
                shall establish procedures for certifying persons not 
                employed by the Department to provide technical 
                assistance in planning, designing, or certifying any 
                aspect of a particular project under any conservation 
                program administered by the Secretary to agricultural 
                producers and landowners participating, or seeking to 
                participate, in conservation programs administered by 
                the Secretary.
                    ``(B) Standards.--The Secretary shall establish 
                standards for the conduct of--
                            ``(i) the certification process conducted 
                        by the Secretary; and
                            ``(ii) periodic recertification by the 
                        Secretary of providers.
                    ``(C) Certification required.--A provider may not 
                provide to any producer technical assistance described 
                in subparagraph (B) unless the provider is certified by 
                the Secretary.
                    ``(E) Fee.--
                            ``(i) In general.--In exchange for 
                        certification or recertification, a private 
                        provider shall pay a fee to the Secretary in an 
                        amount determined by the Secretary.
                            ``(ii) Account.--A fee paid to the 
                        Secretary under clause (i) shall be--
                                    ``(I) credited to the account in 
                                the Treasury that incurs costs relating 
                                to implementing this section; and
                                    ``(II) made available to the 
                                Secretary for use for conservation 
                                programs administered by the Secretary, 
                                without further appropriation, until 
                                expended.
                    ``(F) Other requirements.--The Secretary may 
                establish such other requirements as the Secretary 
                determines are necessary to carry out this subsection.
    ``(i) Confidentiality.--
            ``(1) In general.--In accordance with section 552(b)(3) of 
        title 5, United States Code, to maintain confidentiality, the 
        Secretary shall not release or disclose publicly the 
        conservation plan of an owner or operator under any component 
        of a conservation program administered by the Secretary, or any 
        related records, unless the Secretary--
                    ``(A) releases the information in an anonymous or 
                aggregated form; and
                    ``(B) obtains the consent of the owner or operator 
                prior to releasing the information.
            ``(2) Applicability to other federal agencies.--The 
        confidentiality restrictions described in paragraph (1) shall 
        apply to any Federal agency that obtains from the Secretary any 
        plan or record described in that paragraph.
    ``(j) Indian Tribes.--In carrying out any conservation program 
administered by the Secretary on land under the jurisdiction of an 
Indian tribe, the Secretary shall cooperate with the tribal government 
of the Indian tribe to ensure, to the maximum extent practicable, that 
the program is administered--
            ``(1) in a fair and equitable manner; and
            ``(2) in accordance with any Federal law (including a 
        regulation) applicable to the Indian tribe.
    ``(k) Beginning Farmers and Ranchers and Indian Tribes.--In 
carrying out any conservation program administered by the Secretary, 
the Secretary may provide to beginning farmers and ranchers (as 
identified by the Secretary) and Indian tribes, incentives to 
participate in the conservation program to--
            ``(1) foster new farming opportunities; and
            ``(2) enhance environmental stewardship over the long 
        term.''.

SEC. 205. 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, 
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, 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. 206. CONSERVATION SECURITY PROGRAM REGULATIONS.

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

SEC. 207. CONFORMING AMENDMENTS.

    (a) Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) 
is amended by striking ``ECARP'' each place it appears and inserting 
``CCEP''.
    (b) Section 1230A of the Food Security Act of 1985 (16 U.S.C. 
3830a) is repealed.
    (c) Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) 
is amended by striking the section heading and inserting the following:

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

                     Subtitle B--Program Extensions

SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

    (a) In General.--Section 1230(a)(1) of the Food Security Act of 
1985 (16 U.S.C. 3830(a)(1)) is amended by striking ``2002'' and 
inserting ``2006''.
    (b) Funding.--Section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended--
            (1) by striking ``2002'' and inserting ``2006'';
            (2) by inserting ``(including the provision of technical 
        assistance)'' after ``the programs''; and
            (3) in paragraph (2), by striking ``subchapter C'' and 
        inserting ``subchapters C and D''.

SEC. 212. CONSERVATION RESERVE PROGRAM.

    (a) Reauthorization.--
            (1) In general.--Section 1231 of the Food Security Act of 
        1985 (16 U.S.C. 3831) is amended--
                    (A) in subsections (a), (b)(3), and (d), by 
                striking ``2002'' each place it appears and inserting 
                ``2006''; and
                    (B) in subsection (h)(1), by striking ``the 2001 
                and 2002'' and inserting ``each of the 2002 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 Priority Areas.--
            (1) In general.--Section 1230(c) of the Food Security Act 
        of 1985 (16 U.S.C. 3830(c)) is amended by adding at the end the 
        following:
            ``(4) Priority.--In designating conservation priority areas 
        under paragraph (1), the Secretary shall give priority to areas 
        in which designated land would facilitate the most rapid 
        completion of projects that--
                    ``(A) are ongoing as of the date of the 
                application; and
                    ``(B) meet the objectives of a program established 
                under this title.''.
            (2) Eligibility.--Section 1231(b) of the Food Security Act 
        is amended--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) highly erodible cropland that--
                    ``(A)(i) if permitted to remain untreated could 
                substantially reduce the production capability for 
                future generations; or
                    ``(ii) cannot be farmed in accordance with a 
                conservation plan that complies with the requirements 
                of subtitle B; and
                    ``(B) the Secretary determines had a cropping 
                history or potential for cropping for 3 of the 6 years 
                preceding the date of enactment of the Agriculture, 
                Conservation, and Rural Enhancement Act of 2001 (except 
                for land enrolled in the conservation reserve program 
                on that date);'';
                    (B) in paragraph (4)--
                            (i) by striking ``croplands'' each place it 
                        appears and inserting ``lands''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) the portion of land in a field not enrolled in the 
        conservation reserve where more than 50 percent of the land in 
        the field is enrolled as a buffer, if the land is enrolled as 
        part of the buffer.''.
            (3) CRP priority areas.--Section 1231(f) of the Food 
        Security Act of 1985 (16 U.S.C. 3831(f)) is amended by adding 
        at the end the following:
            ``(5) Priority.--In designating conservation priority areas 
        under paragraph (1), the Secretary shall give priority to areas 
        in which designated land would facilitate the most rapid 
        completion of projects that--
                    ``(A) are ongoing as of the date of the 
                application; and
                    ``(B) meet the objectives of the program 
                established under this subchapter.''.
    (c) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (2) by striking ``36,400,000'' and inserting 
        ``40,000,000''; and
            (3) by adding at the end the following:
            ``(2) Reservation.--Of the acres maintained under paragraph 
        (1), the Secretary shall reserve not less than 4,000,000 acres 
        under--
                    ``(A) a program of conservation activities 
                described in a notice issued on March 24, 1998 (63 Fed. 
                Reg. 14109) or a successor program; or
                    ``(B) the conservation reserve enhancement program 
                described in a notice issued on May 27, 1998 (63 Fed. 
                Reg. 28965) or a successor program.''.
    (d) Duration of Contracts; Hardwood Trees.--Section 1231(e) of the 
Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended--
            (1) in paragraph (1), by striking ``shall enter into 
        contracts of not less than 10, nor more than 15, years.'' and 
        inserting the following: ``may enter into contracts--
                    ``(A) for permanent easements on land enrolled in 
                the conservation reserve program that is not covered by 
                a hardwood tree contract, covering not to exceed 
                3,000,000 acres, for 30 or more years; and
                    ``(B) covering any remaining acreage, with terms of 
                not less than 10, nor more than 15, years.''; and
            (2) in paragraph (2)--
                    (A) by striking ``In the'' and inserting the 
                following:
                    ``(A) In general.--In the'';
                    (B) by striking ``The Secretary'' and inserting the 
                following:
                    ``(B) Existing hardwood tree contracts.--The 
                Secretary''; and
                    (C) by adding at the end the following:
                    ``(C) Extension of hardwood tree contracts.--
                            ``(i) In general.--In the case of land 
                        devoted to hardwood trees under a contract 
                        entered into under this subchapter before the 
                        date of enactment of this subparagraph, the 
                        Secretary may extend the contract for a term of 
                        not more than 15 years.
                            ``(ii) Base payments.--The amount of a base 
                        payment for a contract extended under clause 
                        (i)--
                                    ``(I) shall be determined by the 
                                Secretary; but
                                    ``(II) shall not exceed 50 percent 
                                of the base payment that was applicable 
                                to the contract before the contract was 
                                extended.''.
    (e) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231(h) of the Food Security Act of 1985 
(16 U.S.C. 3831(h)) is amended--
            (1) in the subsection heading, by striking ``Pilot''; and
            (2) in subsection (a)--
                    (A) in paragraph (1), by striking ``During the 2001 
                and 2002 calendar years, the Secretary shall carry out 
                a pilot program'' and inserting ``During the period of 
                calendar years 2002 through 2006, the Secretary shall 
                carry out a program; and
                    (B) in paragraph (2), by striking ``pilot''.
    (f) Vegetative Cover; Haying and Grazing; Wind Turbines.--Section 
1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is 
amended--
            (1) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by inserting ``and'' after 
                the semicolon at the end; and
                    (C) by adding at the end the following:
                    ``(C) in the case of marginal pasture land, an 
                owner or operator shall not be required to plant trees 
                if native prairie grass may be retained or restored;'';
            (2) in paragraph (7)--
                    (A) by striking ``that the Secretary'' and 
                inserting ``that'';
                    (B) in subparagraph (A)--
                            (i) by striking ``may permit'' and 
                        inserting ``the Secretary'';
                            (ii) by striking clause (i) and inserting 
                        the following:
                            ``(i) may permit haying and grazing in 
                        accordance with subsection (f)(1);'';
                            (iii) by striking clause (ii) and inserting 
                        the following:
                            ``(ii) may permit haying or grazing on that 
                        land--
                                    ``(I) for maintenance purposes; or
                                    ``(II) in a case in which grazing 
                                is incidental, as determined by the 
                                Secretary; and''; and
                            (iv) by adding at the end the following:
                            ``(iii) notwithstanding the amount of a 
                        base payment limited by section 1234(c)(2) and 
                        specified in a contract entered into under this 
                        chapter, shall reduce the amount of the base 
                        payment paid to an owner or operator of land 
                        used for haying or grazing under clause (i) or 
                        (ii)(I), or on which 1 or more wind turbines 
                        are installed under subsection (f)(2), by an 
                        amount determined by the Secretary to be 
                        commensurate with the value of the reduction of 
                        benefit gained by enrollment of the land in the 
                        conservation reserve program.''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``six projects, no more 
                        than one of which may be in any State,'' and 
                        inserting ``6 projects, not more than 1 of 
                        which may be in any State and the total acreage 
                        of which 6 projects shall not exceed 250,000 
                        acres,''; and
                            (ii) in clause (iv), by striking 
                        ``harvested;'' and inserting ``harvested; 
                        and''; and
                            (iii) by striking subparagraph (C);
            (3) in paragraph (9), by striking ``and'' at the end;
            (4) by redesignating paragraph (10) as paragraph (11); and
            (5) by inserting after paragraph (9) the following:
            ``(10) with respect to any contract entered into after the 
        date of enactment of the Agriculture, Conservation, and Rural 
        Enhancement Act of 2001--
                    ``(A) not to produce an agricultural commodity for 
                the duration of the contract on any other highly 
                erodible land that the owner or operator owns on, or 
                purchases on or after, that date, unless the highly 
                erodible land--
                            ``(i) has a history of being used to 
                        produce an agricultural commodity other than a 
                        forage crop; or
                            ``(ii) is being used as a homestead or 
                        building site at the time of purchase; and
                    ``(B) on a violation of a contract described in 
                subparagraph (A), to be subject to the sanctions under 
                paragraph (5); and''.
    (g) Economic Uses.--Section 1232 of the Food Security Act of 1985 
(8906 U.S.C. 3832) is amended by adding at the end the following:
    ``(f) Additional Economic Uses.--
            ``(1) Haying and grazing.--
                    ``(A) In general.--The Secretary may permit haying 
                and grazing on land enrolled in the conservation 
                reserve program in accordance with this paragraph and a 
                haying and grazing management plan approved by the 
                Secretary.
                    ``(B) Conditions.--An owner or operator of a tract 
                of land enrolled in the conservation reserve program 
                may hay or graze the tract--
                            ``(i)(I) not more than once in every 3-year 
                        period, as determined by the Secretary, if the 
                        entire tract is hayed or grazed; or
                            ``(II) in the case of a portion of the 
                        tract not to exceed \1/3\ of the tract each 
                        year, if--
                                    ``(aa) the tract consists of at 
                                least 80 acres; and
                                    ``(bb) the portion of the tract 
                                used for haying or grazing is not 
                                reused until such time as the remainder 
                                of the tract is used for haying and 
                                grazing;
                            ``(ii) in accordance with requirements 
                        developed by the State Technical Committee 
                        under subparagraph (C);
                            ``(iii) if all hay (including bales) is 
                        removed from the tract not later than October 1 
                        of the applicable year;
                            ``(iv) if the unused portion of each tract 
                        is left in a single contiguous block; and
                            ``(v) the haying or grazing does not defeat 
                        any objective of the conservation reserve 
                        program.
                    ``(C) State technical committee requirements.--
                Taking into consideration the purposes of the 
                conservation reserve program, the State Technical 
                Committee of the State in which a tract used for haying 
                or grazing under this paragraph is located shall--
                            ``(i) develop appropriate requirements for 
                        vegetative management on land enrolled in the 
                        conservation reserve program; and
                            ``(ii) identify periods during which haying 
                        and grazing under this paragraph may be 
                        conducted.
            ``(2) Wind turbines.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may permit an owner or operator of land that 
                is enrolled in the conservation reserve program, but 
                that is not enrolled under continuous signup (as 
                defined in section 1238) to install wind turbines on 
                the land.
                    ``(B) Number; location.--The Secretary shall 
                determine the number and location of wind turbines that 
                may be installed on a tract of land under subparagraph 
                (A), taking into account--
                            ``(i) the location, size, and other 
                        physical characteristics of the land;
                            ``(ii) the extent to which the land 
                        contains wildlife and wildlife habitat; and
                            ``(iii) the purposes of the conservation 
                        reserve program.''.
    (h) Priority for State Easement Programs.--Section 1234(c)(3) of 
the Food Security Act of 1985 (16 U.S.C. 3834(c)(3)) is amended--
            (1) by striking ``Secretary may'' and inserting 
        ``Secretary'';
            (2) in subparagraph (A)--
                    (A) by striking ``take into'' and inserting ``may 
                take into''; and
                    (B) by striking ``and'' at the end;
            (3) in subparagraph (B)--
                    (A) by striking ``establish'' and inserting ``may 
                establish''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following:
                    ``(C) shall give priority to offers from owners and 
                operators under section 1231(e)(1) from States in which 
                a State program to provide technical or other 
                assistance relating to permanent easements is in 
                effect.''.
    (i) Additional Eligible Practices.--Section 1234 of the Food 
Security Act of 1985 (16 U.S.C. 3834) is amended by adding at the end 
the following:
    ``(i) Payments.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall provide signing incentive payments under the conservation 
        reserve program to owners and operators that implement a 
        practice for--
                    ``(A) the preservation of shallow water areas for 
                wildlife;
                    ``(B) the establishment of permanent vegetative 
                cover, such as contour grass strips and cross-wind trap 
                strips; or
                    ``(C) the preservation of wellhead protection 
                areas.
            ``(2) Other practices.--The Secretary shall administer 
        paragraph (1) in a manner that does not reduce the amount of 
        payments made by the Secretary for other practices under the 
        conservation reserve program.''.
    (j) County Participation.--Section 1243(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3843(b)(1)) is amended by striking ``The 
Secretary'' and inserting ``Except for land enrolled under continuous 
signup or under the conservation reserve enhancement program described 
in a notice issued on May 27, 1998 (63 Fed. Reg. 28965) (or a successor 
program), the Secretary''.
    (k) Study on Economic Effects.--Not later than 270 days after the 
date of enactment of this Act, the Secretary of Agriculture shall 
submit to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes the economic effects on rural 
communities resulting from the conservation reserve program established 
under subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.).

SEC. 213. WETLANDS RESERVE PROGRAM.

    (a) Technical Assistance.--Section 1237(a) of the Food Security Act 
of 1985 (16 U.S.C. 3837(a)) is amended by inserting ``(including the 
provision of technical assistance)'' before the period at the end.
    (b) Maximum Enrollment.--Section 1237(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3837(b)(1)) is amended--
            (1) by striking ``The total number'' and all that follows 
        through the end of the paragraph and inserting the following: 
        ``Not more than 250,000 acres may be enrolled in the wetlands 
        reserve program in any calendar year.''.
    (c) Reauthorization.--Section 1237(c) of the Food Security Act of 
1985 (16 U.S.C. 3837(c)) is amended by striking ``2002'' and inserting 
``2006''.

SEC. 214. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Purposes.--Section 1240 of the Food Security Act of 1985 (16 
U.SC. 3839aa) is amended to read as follows:

``SEC. 1240. PURPOSES.

    ``The purposes of the environmental quality incentives program 
established by this chapter are--
            ``(1) to maximize environmental benefits per dollar 
        expended; and
            ``(2) to provide--
                    ``(A) flexible technical and financial assistance 
                to farmers and ranchers that face the most serious 
                threats to soil, water, and related natural resources, 
                including grazing lands, wetlands, and wildlife 
                habitat;
                    ``(B) assistance to farmers and ranchers in--
                            ``(i) complying with this title;
                            ``(ii) carrying out environmental 
                        enhancement; and
                            ``(iii) implementing means of energy 
                        production that are consistent with the program 
                        established under this chapter;
                    ``(C) assistance to farmers and ranchers in making 
                beneficial, cost-effective changes to cropping systems, 
                grazing management, manure, nutrient, pest, or 
                irrigation management, land uses, or other measures 
                needed to conserve and improve soil, water, and related 
                natural resources; and
                    ``(D) assistance in the consolidation and 
                simplification of the conservation planning process to 
                reduce administrative burdens on producers.''.
    (b) Structural Practices Eligible for Financial Assistance.--
Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) is 
amended--
            (1) by redesignating paragraph (5) as paragraph (6);
            (2) in paragraph (1), by inserting ``private'' after 
        ``means'';
            (3) by inserting after paragraph (4) the following:
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service.''; and
            (4) in paragraph (6)(A) (as redesignated by paragraph (1)), 
        by inserting ``on eligible land'' after ``practice''.
    (c) Innovative Technologies.--
            (1) Definition of innovative technology.--Section 1240A of 
        the Food Security Act of 1985 (16 U.S.C. 3839aa-1) is amended--
                    (A) by redesignating paragraphs (2) through (5) as 
                paragraphs (3) through (6), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Innovative technology.--The term `innovative 
        technology' includes technology that, as determined by the 
        Secretary--
                    ``(A) maximizes environmental benefits;
                    ``(B) complements agricultural production; and
                    ``(C) may be adopted in a practical manner.''.
            (2) Use of innovative technology.--Section 1240B(a)(2) of 
        the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(2)) is 
        amended by adding at the end the following:
            ``(3) Use of innovative technology.--With respect to a 
        contract under this chapter providing for financial assistance 
        for a confined livestock operation, the Secretary shall give 
        priority to a producer that uses an innovative technology in 
        connection with a structural practice or land management 
        practice.''.
    (d) Reauthorization.--Section 1240B(a)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2002'' and 
inserting ``2006''.
    (e) Contracts Providing Financial Assistance for a Structural 
Practice.--Section 1240B(c) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-2(c)) is amended by adding at the end the following:
            ``(3) Maintenance of structures.--A contract providing for 
        financial assistance to an owner or operator for a structural 
        practice--
                    ``(A) shall require maintenance of the structural 
                practice for the life of the practice, regardless of 
                whether land covered by the contract is sold during 
                that period; and
                    ``(B) may be modified only with the approval of the 
                Secretary.
            ``(4) Condition for animal waste management facilities.--An 
        owner or operator may receive financial assistance for an 
        animal waste management facility under this chapter only if--
                    ``(A) the facility is subject to a comprehensive 
                nutrition management plan approved by the Secretary; 
                and
                    ``(B) the owner or operator receives no cost share 
                assistance for the facility under any other program 
                administered by the Secretary.''.
    (f) Cost-Share Payments.--Section 1240B(e) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(e)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) by striking ``A producer'' and 
                        inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), a producer''; and
                            (ii) by adding at the end the following:
                            ``(ii) Waiver.--The Secretary may provide a 
                        waiver to the limitation under clause (i) for 
                        any facility if--
                                    ``(I) the facility is owned by 
                                multiple producers;
                                    ``(II) the producers transfer 
                                animals at the facility, for additional 
                                feeding or finishing, to separate 
                                facilities owned, at least in part, by 
                                the same multiple producers;
                                    ``(III) the separate facilities, 
                                the total number of which shall not 
                                exceed the total number of producers 
                                that own the facilities, are not large 
                                confined animal feeding operations, as 
                                determined by the Secretary;
                                    ``(IV) the payment or benefit to 
                                each producer under this subsection is 
                                commensurate to the contribution of 
                                each producer to the jointly owned 
                                operation; and
                                    ``(V) the share of a each producer 
                                of the payment or benefit, in 
                                combination with any other payment or 
                                benefit received under the program 
                                established under this chapter, does 
                                not exceed the payment limits of the 
                                program.''; and
                    (B) by adding at the end the following:
                    ``(D) Limited-resource livestock operations.--
                Notwithstanding subparagraphs (A), (B), and (C), the 
                Federal share of a cost-share payment to a producer 
                that owns or operates a limited-resource livestock 
                operation (as defined by the Secretary) shall be 90 
                percent.''; and
            (2) in paragraph (3), by striking subparagraph (C).
    (g) Priority for Use of Innovative Practices.--Section 1240C of the 
Food Security Act of 1985 (16 U.S.C. 3839aa-3) is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) are provided to producers using innovative 
        technologies, as determined by the Secretary.''.
    (h) Limitation on Payments.--Section 1240G of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-7) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Payments.--
            ``(1) In general.--The total amount of cost-share and 
        incentive payments paid to a producer under this chapter may 
        not exceed $100,000 for the period of fiscal years 2002 through 
        2006.
            ``(2) Regulations.--In carrying out this chapter, the 
        Secretary shall promulgate regulations to ensure, to the 
        maximum extent practicable, that provide that no individual or 
        entity, directly or indirectly, may receive payments exceeding 
        the applicable amount specified in paragraph (1).''.
    (i) Funding.--Section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Environmental Quality Incentives Program.--
            ``(1) In general.--Subject to paragraphs (2) and (3), of 
        the funds of the Commodity Credit Corporation, the Secretary 
        shall make available $650,000,000 for fiscal year 2002, 
        $800,000,000 for fiscal year 2003, $900,000,000 for fiscal year 
        2004, and $950,000,000 for each of fiscal years 2005 and 2006, 
        to remain available until expended, for providing technical 
        assistance, cost-share payments, incentive payments, and 
        education under the environmental quality incentives program 
        under chapter 4 of subtitle D.
            ``(2) Loan program.--
                    ``(A) In general.--Of the amounts made available 
                under paragraph (1), the Secretary shall deposit into 
                the fund established by section 1240H(e) not to exceed 
                $100,000,000 for each fiscal year.
                    ``(B) Applicability of other laws.--For the 
                purposes of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a et seq.), this subsection shall be treated 
                as if enacted in an Act of appropriation.
            ``(3) Livestock production.--For each of fiscal years 2002 
        through 2006, 50 percent of the funding available for technical 
        assistance, cost-share payments, incentive payments, and 
        education under the environmental quality incentives program 
        shall be targeted at practices relating to livestock 
        production.''.
    (j) Loan Program for Structural Practices.--Chapter 4 of subtitle D 
of title XII of the Food Security Act of 1985 is amended by striking 
section 1240H (16 U.S.C. 3839aa-8) and inserting the following:

``SEC. 1240H. LOAN PROGRAM FOR STRUCTURAL PRACTICES.

    ``(a) In General.--The Secretary shall establish a loan program to 
provide loans to owners and producers of confined livestock operations 
to assist the owners and producers in installing structural practices 
under this chapter.
    ``(b) Requirements.--An owner or producer that seeks to receive a 
loan under this section shall--
            ``(1) comply with requirements of this chapter relating to 
        the receipt of cost-share assistance (including the submission 
        to the Secretary of a management plan); and
            ``(2) submit to the Secretary, in such form and including 
        such information as the Secretary may require, an application 
        for the loan.
    ``(c) Maximum Loan Amounts and Rates.--
            ``(1) Individual loans.--A loan made to an owner or 
        producer under this section--
                    ``(A) shall not exceed $150,000; and
                    ``(B) shall have an interest rate equal to the then 
                current cost of money to the Government of the United 
                States for loans of similar maturity.
            ``(2) Aggregate annual amount.--The annual aggregate amount 
        of loans made under this section shall not exceed $100,000,000.
    ``(d) Interest.--Interest paid on a loan made under this section 
shall be credited to and become a part of the Fund.
    ``(e) Loan Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund to be used in carrying out the 
        program under this section (referred to in this section as the 
        `Fund'), consisting of--
                    ``(A) such amounts as are deposited in the Fund 
                under section 1241(b)(2);
                    ``(B) such interest as is paid on loans made under 
                subsection (d); and
                    ``(C) any interest earned on investment of amounts 
                in the Fund under paragraph (3).
            ``(2) Expenditures from fund.--
                    ``(A) In general.--Subject to subparagraph (B), on 
                request by the Secretary, the Secretary of the Treasury 
                shall transfer from the Fund to the Secretary such 
                amounts as the Secretary determines are necessary to 
                pay the cost of loans to owners and producers under 
                this section.
                    ``(B) Administrative expenses.--An amount not 
                exceeding 5 percent of the amounts in the Fund shall be 
                available in each fiscal year to pay the administrative 
                expenses necessary to carry out the program under this 
                section.
            ``(3) Investment of amounts.--
                    ``(A) In general.--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. Investments may be made only 
                in interest-bearing obligations of the United States.
                    ``(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.
            ``(4) Transfers of amounts.--
                    ``(A) In general.--The amounts required to be 
                transferred to the Fund under this section 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.''.

SEC. 215. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

      ``Subtitle H--Resource Conservation and Development Program

``SEC. 1528. DEFINITIONS.

    ``In this subtitle:
            ``(1) Area plan.--The term `area plan' means a resource 
        conservation and use plan that is developed by a council for a 
        designated area of a State or States through a planning process 
        and that includes 1 or more of the following elements:
                    ``(A) A land conservation element, the purpose of 
                which is to control erosion and sedimentation.
                    ``(B) A water management element that provides 1 or 
                more clear environmental or conservation benefits, the 
                purpose of which is to provide for--
                            ``(i) the conservation, use, and quality of 
                        water, including irrigation and rural water 
                        supplies;
                            ``(ii) the mitigation of floods and high 
                        water tables;
                            ``(iii) the repair and improvement of 
                        reservoirs;
                            ``(iv) the improvement of agricultural 
                        water management; and
                            ``(v) the improvement of water quality.
                    ``(C) A community development element, the purpose 
                of which is--
                            ``(i) the development of resources-based 
                        industries;
                            ``(ii) the protection of rural industries 
                        from natural resource hazards;
                            ``(iii) the development of adequate rural 
                        water and waste disposal systems;
                            ``(iv) the improvement of recreation 
                        facilities;
                            ``(v) the improvement in the quality of 
                        rural housing;
                            ``(vi) the provision of adequate health and 
                        education facilities;
                            ``(vii) the satisfaction of essential 
                        transportation and communication needs; and
                            ``(viii) the promotion of food security, 
                        economic development, and education.
                    ``(D) A land management element, the purpose of 
                which is--
                            ``(i) energy conservation;
                            ``(ii) the protection of agricultural land, 
                        as appropriate, from conversion to other uses;
                            ``(iii) farmland protection; and
                            ``(iv) the protection of fish and wildlife 
                        habitats.
            ``(2) Board.--The term `Board' means the Resource 
        Conservation and Development Policy Advisory Board established 
        under section 1533(a).
            ``(3) Council.--The term `council' means a nonprofit entity 
        (including an affiliate of the entity) operating in a State 
        that is--
                    ``(A) established by volunteers or representatives 
                of States, local units of government, Indian tribes, or 
                local nonprofit organizations to carry out an area plan 
                in a designated area; and
                    ``(B) designated by the chief executive officer or 
                legislature of the State to receive technical 
                assistance and financial assistance under this 
                subtitle.
            ``(4) Designated area.--The term `designated area' means a 
        geographic area designated by the Secretary to receive 
        technical assistance and financial assistance under this 
        subtitle.
            ``(5) Financial assistance.--The term `financial 
        assistance' means a grant, cooperative agreement, or loan 
        provided by the Secretary (or the Secretary and other Federal 
        agencies) to a council, or association of councils, to carry 
        out an area plan in a designated area, including assistance 
        provided for planning, analysis, feasibility studies, training, 
        education, and other activities necessary to carry out the area 
        plan.
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term by section 4 of the Indian Health Care 
        Improvement Act (25 U.S.C. 1603).
            ``(7) Local unit of government.--The term `local unit of 
        government' means--
                    ``(A) any county, city, town, township, parish, 
                village, or other general-purpose subdivision of a 
                State; and
                    ``(B) any local or regional special district or 
                other limited political subdivision of a State, 
                including any soil conservation district, school 
                district, park authority, and water or sanitary 
                district.
            ``(8) Nonprofit organization.--The term `nonprofit 
        organization' means any organization that is--
                    ``(A) described in section 501(c) of the Internal 
                Revenue Code of 1986; and
                    ``(B) exempt from taxation under section 501(a) of 
                the Internal Revenue Code of 1986.
            ``(9) Planning process.--The term `planning process' means 
        actions taken by a council to develop and carry out an 
        effective area plan in a designated area, including development 
        of the area plan, goals, objectives, policies, implementation 
        activities, evaluations and reviews, and the opportunity for 
        public participation in the actions.
            ``(10) Project.--The term `project' means a project that is 
        carried out by a council to achieve any of the elements of an 
        area plan.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(12) State.--The term ``State'' means any of the States, 
        the District of Columbia, or any territory or possession of the 
        United States.
            ``(13) Technical assistance.--The term `technical 
        assistance' means any service provided by the Secretary or 
        agent of the Secretary, including--
                    ``(A) inventorying, evaluating, planning, 
                designing, supervising, laying out, and inspecting 
                projects;
                    ``(B) providing maps, reports, and other documents 
                associated with the services provided;
                    ``(C) providing assistance for the long-term 
                implementation of area plans; and
                    ``(D) providing services of an agency of the 
                Department of Agriculture to assist councils in 
                developing and carrying out area plans.

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

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

``SEC. 1530. SELECTION OF DESIGNATED AREAS.

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

``SEC. 1531. AUTHORITY OF THE SECRETARY.

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

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

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

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

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

``SEC. 1534. EVALUATION OF PROGRAM.

    ``(a) In General.--The Secretary, in consultation with councils, 
shall evaluate the program established under this subtitle to determine 
whether the program is effectively meeting the needs of, and the 
objectives identified by, States, units of government, Indian tribes, 
nonprofit organizations, and councils participating in, or served by, 
the program.
    ``(b) Report.--Not later than December 31, 2011, the Secretary 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report describing the results of the 
evaluation, together with any recommendations of the Secretary for 
continuing, terminating, or modifying the program.

``SEC. 1535. LIMITATION ON ASSISTANCE.

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

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

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

``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 216. WILDLIFE HABITAT INCENTIVE PROGRAM.

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

                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

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

    ``(a) Definition of Program.--In this section, the term `program' 
means the wildlife habitat incentive program established under 
subsection (b).
    ``(b) Establishment.--In consultation with the State technical 
committees established under section 1261 of the Food Security Act of 
1985 (16 U.S.C. 3861), the Secretary shall establish a program to be 
known as the `wildlife habitat incentive program'.
    ``(c) Cost-Share Payments.--Under the program, the Secretary shall 
make cost-share payments to owners of eligible land to develop wildlife 
habitat approved by the Secretary.
    ``(d) Easements.--
            ``(1) In general.--Under the program, the Secretary shall 
        establish procedures to acquire and enroll eligible land in the 
        program, for 30-year terms and permanent easements, to assist 
        owners of eligible land to restore and protect essential plant 
        and animal habitat, as determined by the Secretary.
            ``(2) Eligible land.--
                    ``(A) In general.--For purposes of enrolling an 
                easement in the program, land to which the easement 
                applies shall be considered to be eligible if the 
                Secretary, in consultation with the appropriate State 
                fish and wildlife departments, determines that--
                            ``(i) the land maximizes wildlife habitat 
                        benefits, values, and functions;
                            ``(ii) the owner of the land has developed 
                        a site-level habitat restoration and protection 
                        plan that is consistent, to the maximum extent 
                        practicable, with a State habitat conservation 
                        plan; and
                            ``(iii) taking into consideration the cost 
                        of the restoration, the likelihood of the 
                        successful targeted habitat restoration 
                        described in the plan, and the resulting 
                        wildlife benefits, merit inclusion of the land 
                        in the program.
                    ``(B) Priority for certain state land.--In 
                enrolling easements in the program, the Secretary may 
                give priority to land identified as having priority for 
                restoration or protection in a State plan for the 
                protection of essential plant and animal habitat 
                developed by the State technical committee, in 
                cooperation with--
                            ``(i) Federal and State fish and wildlife 
                        agencies;
                            ``(ii) members of the State agricultural 
                        sector;
                            ``(iii) nongovernmental conservation 
                        organizations; and
                            ``(iv) the natural heritage program of the 
                        State.
            ``(3) Ineligible land.--The Secretary shall not acquire or 
        enroll in the program any easement that is enrolled under any 
        other Federal easement program administered by the Secretary at 
        the time at which the acquisition or enrollment is considered.
            ``(4) Easements and agreements.--Sections 1237A through 
        1237F of the Food Security Act of 1985 (16 U.S.C. 3837a through 
        3837f) shall apply to an easement enrolled in the program.
    ``(e) Technical Assistance.--The Secretary shall use not more than 
8 percent of amounts made available to carry out this section to 
provide technical assistance under this subsection.
    ``(f) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section--
            ``(1) $50,000,000 for fiscal year 2002;
            ``(2) $60,000,000 for fiscal year 2003;
            ``(3) $65,000,000 for fiscal year 2004;
            ``(4) $70,000,000 for fiscal year 2005; and
            ``(5) $100,000,000 for fiscal year 2006.''.

``SEC. 1240N. WATERSHED RISK REDUCTION.

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

SEC. 217. AGRICULTURAL LAND PROTECTION PROGRAM.

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

          ``Subchapter B--Agricultural Land Protection Program

``SEC. 1238H. DEFINITIONS.

    ``In this subchapter:
            ``(1) Eligible land.--
                    ``(A) In general.--The term `eligible land' means 
                agricultural land that--
                            ``(i)(I) has prime, unique, or other 
                        productive soil; or
                            ``(II) contains historical or 
                        archaeological resources; and
                            ``(ii) is subject to a pending offer for 
                        purchase from--
                                    ``(I) any agency of any State or 
                                local government or an Indian tribe 
                                (including a farmland protection board 
                                or land resource council established 
                                under State law); or
                                    ``(II) any organization that--
                                            ``(aa) is organized for, 
                                        and at all times since the 
                                        formation of the organization, 
                                        has been operated principally 
                                        for, 1 or more of the 
                                        conservation purposes specified 
                                        in clause (i), (ii), or (iii) 
                                        of section 170(h)(4)(A) of the 
                                        Internal Revenue Code of 1986;
                                            ``(bb) is an organization 
                                        described in section 501(c)(3) 
                                        of that Code that is exempt 
                                        from taxation under section 
                                        501(a) of that Code;
                                            ``(cc) is described in 
                                        section 509(a)(2) of that Code; 
                                        or
                                            ``(dd) is described in 
                                        section 509(a)(2) of that Code.
                    ``(B) Inclusions.--The term `eligible land' 
                includes--
                            ``(i) cropland;
                            ``(ii) ranchland; and
                            ``(iii) prairie.
                    ``(C) Exclusion.--The term `eligible land' does not 
                include forest land.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(3) Program.--The term `program' means the agricultural 
        land protection program established under section 1238I(a).

``SEC. 1238I. AGRICULTURAL LAND PROTECTION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a program to be 
known as the `agricultural land protection program', under which the 
Secretary shall purchase conservation easements and other interests in 
eligible land.
    ``(b) Condition for Enrollment.--Eligible land enrolled in the 
program shall be subject to system requirements as described in a 
conservation plan--
            ``(1) developed in accordance with the National Handbook of 
        Conservation Practices and the field office technical guides of 
        the Natural Resources Conservation Service; and
            ``(2) approved by the Secretary.
    ``(c) Priority.--In enrolling eligible land in the program, the 
Secretary shall give priority to eligible land that remains in 
agricultural production throughout the period of enrollment.
    ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use the amounts specified in 
        paragraph (3) for each fiscal year to--
                    ``(A) purchase conservation easements (including 
                30-year easements, in cases in which State law limits 
                easements to 30 years or in which the Secretary 
                determines that such a term is appropriate) and other 
                interests in eligible land, the Federal share of which 
                shall not exceed 50 percent;
                    ``(B) provide such financial assistance or 
                incentives, in the form of a cost-share not to exceed--
                            ``(i) 75 percent of the cost of the 
                        assistance or incentives, as the Secretary 
                        determines are appropriate to encourage and 
                        assist owners of eligible land with the 
                        installation and adoption of conservation 
                        measures associated with the protection of 
                        natural resources on the eligible land; and
                            ``(ii) 5 percent of the total amount made 
                        available to provide assistance or incentives; 
                        and
                    ``(C) provide not more than 8 percent of the amount 
                of funds made available for a fiscal year to provide 
                technical assistance to administer the program.
            ``(2) Non-federal share.--In a case in which a State or 
        local government purchases an easement under paragraph (1)(A), 
        not more than 25 percent of the non-Federal share of the cost 
        of the easement may be provided--
                    ``(A) by a private landowner; or
                    ``(B) in the form of in-kind goods or services.
            ``(3) Amounts.--The amounts referred to in paragraph (1) 
        are--
                    ``(A) $175,000,000 for fiscal year 2002;
                    ``(B) $200,000,000 for fiscal year 2003;
                    ``(C) $225,000,000 for fiscal year 2004; and
                    ``(D) $250,000,000 for each of fiscal years 2005 
                and 2006.''.

SEC. 218. GRASSLAND RESERVE PROGRAM.

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

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238N. ESTABLISHMENT.

    ``(a) In General.--The Secretary, acting through the Natural 
Resource Conservation Service, may establish a grassland protection 
program (referred to in this subchapter as `the program') to assist 
owners in restoring and protecting eligible land described in 
subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 1,000,000 acres.
            ``(2) Methods of enrollment.--The Secretary shall enroll 
        land in the program through--
                    ``(A) permanent easements or 30-year easements; or
                    ``(B) in a State that imposes a maximum duration 
                for such an easement, for the maximum duration allowed 
                under State law.
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that the land is private land that 
is--
            ``(1) natural grassland (including prairie and land covered 
        in shrubs or forb) that is indigenous to the locality;
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by eligible land; and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is restored to a natural condition; or
            ``(3) land that is incidental to land described in 
        paragraph (1) or (2), if the incidental land is determined by 
        the Secretary to be necessary for the efficient administration 
        of an easement.

``SEC. 1238O. EASEMENTS AND AGREEMENTS.

    ``(a) In General.--To be eligible to enroll land in the program, 
the owner of the land shall enter into an agreement with the 
Secretary--
            ``(1) to grant to the Secretary an easement over the 
        eligible land;
            ``(2) to create and record an appropriate deed restriction 
        in accordance with applicable State law to reflect the 
        easement;
            ``(3) to provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(4) to provide proof of unencumbered title to the 
        underlying fee interest in the land that is the subject of the 
        easement;
            ``(5) to comply with the terms of the easement and 
        restoration agreement; and
            ``(6) comply with a conservation plan for the land that 
        is--
                    ``(A) developed in accordance with the National 
                Handbook of Conservation Practices and the field office 
                technical guides of the Natural Resources Conservation 
                Service; and
                    ``(B) approved by the Secretary.
    ``(b) Terms of Easement.--An easement under subsection (a) shall--
            ``(1) permit--
                    ``(A) grazing on the land in a manner that is 
                consistent with the conservation plan that does not 
                interfere with the protection of natural resources;
                    ``(B) haying or mowing after the nesting and chick-
                rearing season for birds only--
                            ``(i) for management purposes; and
                            ``(ii) as determined to be appropriate by 
                        the State conservationist under a conservation 
                        plan approved by the Secretary; and
                    ``(C) fire rehabilitation, construction of fire 
                breaks, and fences (including placement of the posts 
                necessary for fences);
            ``(2) prohibit--
                    ``(A) the production of row crops, fruit trees, 
                vineyards, or any other agricultural commodity that 
                requires breaking the soil surface; and
                    ``(B) except as permitted under paragraph (1)(C), 
                the conduct of any other activities that would disturb 
                the surface of the land covered by the easement, 
                including--
                            ``(i) plowing; and
                            ``(ii) disking; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out this subchapter or to 
        facilitate the administration of this subchapter.
    ``(c) Evaluation and Ranking of Easement Applications.--
            ``(1) In general.--The Secretary, in conjunction with State 
        technical committees, shall establish criteria to evaluate and 
        rank applications for easements under this subchapter.
            ``(2) Criteria.--In establishing the criteria, the 
        Secretary shall emphasize plant and animal biodiversity and 
        grassland and other eligible land under the greatest threat of 
        conversion.
    ``(d) Violations.--
            ``(1) In general.--On the violation of a term or condition 
        of an easement or restoration agreement entered into under this 
        section--
                    ``(A) the easement shall remain in force; and
                    ``(B) the Secretary may require the owner to refund 
                all or part of any payments received by the owner under 
                this subchapter, including interest on the payments as 
                determined appropriate by the Secretary.
            ``(2) Periodic inspections.--
                    ``(A) In general.--The Secretary shall conduct 
                periodic inspections of land subject to easements under 
                this subchapter to ensure that the terms of the 
                easement and any applicable restoration agreements are 
                being met.
                    ``(B) Limitation.--The Secretary may not prohibit 
                the owner, or a representative of the owner, from being 
                present during a periodic inspection.

``SEC. 1238P. DUTIES OF SECRETARY.

    ``(a) In General.--In return for the granting of an easement by an 
owner under this subchapter, the Secretary shall, in accordance with 
this section,--
            ``(1) make easement payments;
            ``(2) pay the Federal share of the cost of restoration; and
            ``(3) provide technical assistance to the owner.
    ``(b) Easement Payments.--
            ``(1) Amount.--In return for the granting of an easement by 
        an owner under this subchapter, the Secretary shall make 
        easement payments to the owner in an amount equal to--
                    ``(A) in the case of a permanent easement, the fair 
                market value of the land less grazing value of the land 
                encumbered by the easement; and
                    ``(B) in the case of a 30-year easement or an 
                easement for the maximum duration allowed under 
                applicable State law, 30 percent of the fair market 
                value of the land less the grazing value of the land 
                for the period during which the land is encumbered by 
                the easement.
            ``(2) Schedule.--The Secretary shall provide payments under 
        this subsection--
                    ``(A) with respect to any cost sharing obligation, 
                as soon as practicable after the obligation is 
                incurred; and
                    ``(B) with respect to any annual easement payment 
                obligation incurred by the Secretary, as soon as 
                practicable after October 1 of each year.
    ``(c) Federal Share of Cost of Restoration.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall make payments to the owner of not more than 75 percent of 
        the cost of carrying out measures and practices necessary to 
        restore eligible functions and values.
            ``(2) Aggregate amount.--The Secretary shall use not more 
        than 5 percent of amounts made available to carry out this 
        subchapter to make payments under paragraph (1).
    ``(d) Technical Assistance.--The Secretary shall use not more than 
8 percent of amounts made available to carry out this subchapter to 
provide technical assistance under this subsection.
    ``(e) Other Payments.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        easement payment received by an owner under this subchapter 
        shall be in addition to, and shall not affect, the total amount 
        of payments that the owner is otherwise eligible to receive 
        under any other Federal law.
            ``(2) Prohibition on duplicative assistance.--An owner that 
        receives an easement payment under this chapter may not receive 
        a payment for the same easement under any other program.

``SEC. 1238Q. REGULATIONS.

    ``Not later than 180 days after the date of enactment of this 
subchapter, the Secretary shall promulgate such regulations as are 
necessary to carry out this subchapter.''.

SEC. 219. STATE TECHNICAL COMMITTEES.

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

                ``Subtitle G--State Technical Committees

``SEC. 1261. ESTABLISHMENT.

    ``(a) In General.--The Secretary shall establish in each State a 
technical committee to assist the Secretary in the technical 
considerations relating to implementation of any private land 
conservation program administered by the Secretary.
    ``(b) Standards.--Not later than 180 days after the date of 
enactment of the Agriculture, Conservation, and Rural Enhancement Act 
of 2001, the Secretary shall develop standards to be used by each State 
technical committee in the development of technical guidelines under 
section 1262(b) for the implementation of the conservation programs 
under this title.
    ``(c) Composition.--Each State technical committee established 
under subsection (a) shall be composed of professional resource 
managers that represent a variety of disciplines in the soil, water, 
wetland, and wildlife sciences, including representatives from among--
            ``(1) the Natural Resources Conservation Service (a 
        representative of which shall serve as Chair of the Committee);
            ``(2) the Farm Service Agency;
            ``(3) the Forest Service;
            ``(4) the Extension Service;
            ``(5) the Fish and Wildlife Service;
            ``(6) such State departments and agencies as the Secretary 
        determines to be appropriate, including--
                    ``(A) a State fish and wildlife agency;
                    ``(B) a State forester or equivalent State 
                official;
                    ``(C) a State water resources agency;
                    ``(D) a State department of agriculture;
                    ``(E) a State soil conservation agency; and
                    ``(F) land grant universities;
            ``(7) other individuals or agency personnel with expertise 
        in soil, water, wetland, and wildlife management as the 
        Secretary determines to be appropriate;
            ``(8) agricultural producers with demonstrable conservation 
        expertise;
            ``(9) nonprofit organizations with demonstrable 
        conservation expertise;
            ``(10) persons knowledgeable about conservation techniques; 
        and
            ``(11) agribusinesses.

``SEC. 1262. RESPONSIBILITIES.

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

                            TITLE III--TRADE

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

SEC. 301. UNITED STATES POLICY.

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

SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.

     Section 202 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722) is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(3) Program diversity.--The Administrator shall--
                    ``(A) encourage eligible organizations to propose 
                and implement program plans to address 1 or more 
                aspects of the program under section 201; and
                    ``(B) consider proposals that incorporate a variety 
                of program objectives and strategic plans based on the 
                identification by eligible organizations of appropriate 
                activities to assist development in foreign 
                countries.'';
            (2) in subsection (e)(1), by striking ``not less than 
        $10,000,000, and not more than $28,000,000,'' and inserting 
        ``not less than 5 percent nor more than 10 percent''; and
            (3) by adding at the end the following:
    ``(h) Certified Institutional Partners.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations and issue guidelines to permit private voluntary 
        organizations and cooperatives to be certified as institutional 
        partners.
            ``(2) Requirements.--To become a certified institutional 
        partner, a private voluntary organization or cooperative shall 
        submit to the Secretary a certification of organizational 
        capacity that describes--
                    ``(A) the financial, programmatic, commodity 
                management, and auditing abilities and practices of the 
                organization or cooperative; and
                    ``(B) the capacity of the organization or 
                cooperative to carry out projects in particular 
                countries.
            ``(3) Multi-country proposals.--A certified institutional 
        partner shall be eligible to--
                    ``(A) submit a single proposal for 1 or more 
                countries that are the same as, or similar to, those 
                countries in which the certified institutional partner 
                has already demonstrated organizational capacity;
                    ``(B) receive expedited review and approval of the 
                proposal; and
                    ``(C) receive commodities and assistance under this 
                section for use in 1 or more countries.''.

SEC. 303. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY 
              ORGANIZATIONS AND COOPERATIVES.

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

SEC. 304. LEVELS OF ASSISTANCE.

    Section 204 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``that for each 
                of fiscal years 1996 through 2002 is not less than 
                2,025,000 metric tons.'' and inserting ``that is not 
                less than--
                    ``(A) 2,100,000 metric tons for fiscal year 2002;
                    ``(B) 2,200,000 metric tons for fiscal year 2003;
                    ``(C) 2,300,000 metric tons for fiscal year 2004; 
                and
                    ``(D) 2,400,000 metric tons for fiscal year 2005; 
                and
                    ``(E) 2,500,000 metric tons for fiscal year 
                2006.''; and
                    (B) in paragraph (2), by striking ``1996 through 
                2002'' and inserting ``2002 through 2006''; and
            (2) in subsection (b)(1)--
                    (A) by striking ``75 percent'' and inserting ``50 
                percent''; and
                    (B) by inserting ``(including crude degummed 
                soybean oil and soybean meal)'' after ``bagged 
                commodities''.

SEC. 305. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1725) is amended--
            (1) in subsection (a), by inserting ``, policies, 
        guidelines,'' after ``regulations'';
            (2) in subsection (d), by inserting ``policies,'' after 
        ``regulations,'' each place it appears; and
            (3) in subsection (f), by striking ``2002'' and inserting 
        ``2006''.

SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.

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

SEC. 307. ADMINISTRATION.

    Section 207 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726a) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) Recipient countries.--A proposal to enter into a 
        nonemergency food assistance agreement under this title shall 
        identify the recipient country or countries that are the 
        subject of the agreement.
            ``(2) Timing.--Not later than 120 days after the date of 
        submission to the Administrator of a proposal submitted by an 
        eligible organization under this title, the Administrator shall 
        determine whether to accept the proposal.'';
            (2) in subsection (b), by striking ``guideline'' each place 
        it appears and inserting ``guideline or policy''; and
            (3) in subsection (d), by striking ``a United States field 
        mission'' and inserting ``an eligible organization with an 
        approved program''.

SEC. 308. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
              DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED 
              FOODS.

    Section 208(f) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1726b(f)) is amended by striking ``and 2002'' and 
inserting ``through 2006''.

SEC. 309. SALE PROCEDURE.

    Section 403 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1733) is amended by adding at the end the 
following:
    ``(l) Sale Procedure.--
            ``(1) In general.--Subsections (b) and (h) shall apply to 
        sales of commodities in recipient countries to generate 
        proceeds to carry out projects under titles II and III of this 
        Act, section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 
        1431(b)), and section 1110 of the Food for Progress Act of 1985 
        (7 U.S.C. 1736o).
            ``(2) Currencies.--Sales of commodities described in 
        paragraph (1) may be in United States dollars or in a different 
        currency.
            ``(3) Sale price.--Sales of commodities described in 
        paragraph (1) shall be made at the reasonable market price in 
        the economy of the recipient country, as determined by the 
        Secretary or the Administrator, as appropriate.''.

SEC. 310. 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. 311. 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. 312. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

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

SEC. 313. INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION.

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

``SEC. 417. INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION.

    ``(a) Definitions.--In this section:
            ``(1) Eligible commodity.--The term `eligible commodity' 
        means--
                    ``(A) an agricultural commodity; and
                    ``(B) a vitamin or mineral produced--
                            ``(i) in the United States; or
                            ``(ii) in limited situations determined by 
                        the Secretary, outside the United States.
            ``(2) Eligible organization.--The term `eligible 
        organization' means a private voluntary organization, 
        cooperative, or intergovernmental organization, as determined 
        by the Secretary.
            ``(3) Program.--The term `Program' means the International 
        Food for Education and Child Nutrition Program established 
        under subsection (b)(1).
            ``(4) Recipient country.--The term `recipient country' 
        means 1 or more developing countries covered by a plan approved 
        under subsection (d)(1)(A)(ii).
    ``(b) Program Establishment.--
            ``(1) In general.--In cooperation with other countries, the 
        Secretary shall establish, and the Department of Agriculture 
        shall act as the lead Federal agency for, the International 
        Food for Education and Child Nutrition Program, through which 
        the Secretary shall provide to eligible organizations eligible 
        commodities and technical and nutritional assistance for pre-
        school and school-age children in connection with education 
        programs to improve food security and enhance educational 
        opportunities for pre-school age and primary-school age 
        children in recipient countries.
            ``(2) Administration.--In carrying out the Program, the 
        Secretary may use the personnel and other resources of the Food 
        and Nutrition Service and other agencies of the Department of 
        Agriculture.
    ``(c) Purchase and Donation of Eligible Commodities and Provision 
of Assistance.--
            ``(1) In general.--Under the Program, the Secretary shall 
        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.
            ``(2) Other donor countries.--Consistent with the Program, 
        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.
            ``(3) 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 
        section.
    ``(d) Plans and Agreements.--
            ``(1) In general.--To be eligible to receive eligible 
        commodities and assistance under this section, an eligible 
        organization shall--
                    ``(A)(i) submit to the Secretary a plan that 
                describes the manner in which--
                            ``(I) the eligible commodities and 
                        assistance will be used in 1 or more recipient 
                        countries to meet the requirements of this 
                        section; and
                            ``(II) the role of the government in the 
                        recipient countries in carrying out the plan; 
                        and
                    ``(ii) obtain the approval of the Secretary for the 
                plan; and
                    ``(B) enter into an agreement with the Secretary 
                establishing the terms and conditions for use of the 
                eligible commodities and assistance.
            ``(2) Multiyear agreements.--
                    ``(A) In general.--An agreement under paragraph 
                (1)(B) may provide for eligible commodities and 
                assistance on a multiyear basis.
                    ``(B) Local capacity.--The Secretary shall 
                facilitate, to the extent the Secretary determines is 
                appropriate, the development of agreements under 
                paragraph (1)(B) that, on a multiyear basis, strengthen 
                local capacity for implementing and managing assistance 
                programs.
            ``(3) Streamlined procedures.--The Secretary shall develop 
        streamlined procedures for the development, review, and 
        approval of plans submitted under paragraph (1)(A) by eligible 
        organizations that demonstrate organizational capacity and the 
        ability to develop, implement, monitor, and report on, and 
        provide accountability for, activities carried out under this 
        section.
            ``(4) Graduation.--An agreement under paragraph (1)(B) 
        shall include provisions--
                    ``(A)(i) to sustain the benefits to the education, 
                enrollment, and attendance of children in schools in 
                the targeted communities when the provision of 
                commodities and assistance to a recipient country under 
                the Program terminates; and
                    ``(ii) to estimate the period of time required for 
                the recipient country or eligible organization to 
                provide assistance described in subsection (b)(1) 
                without additional assistance provided under this 
                section; or
                    ``(B) to otherwise provide other long-term benefits 
                to the targeted populations.
            ``(5) Foreign policy, national security, and humanitarian 
        objectives.--
                    ``(A) Approval of plans.--In consultation with the 
                Secretary of State and other appropriate foreign policy 
                officials, the Secretary may establish additional 
                criteria for the approval of agreements entered into 
                under paragraph (1)(B) that reflect the foreign policy, 
                national security, or humanitarian objectives of the 
                United States.
                    ``(B) Criteria.--Criteria established under 
                subparagraph (A) may include--
                            ``(i) targeting recipient countries in a 
                        manner that is consistent with the objectives; 
                        and
                            ``(ii) providing a priority for recipient 
                        countries with a significant number of refugees 
                        with low prospects of returning to their homes 
                        in the near future.
                    ``(C) International coalition against terrorism.--
                In establishing an international coalition for the 
                purpose of responding to acts of international 
                terrorism described in section 2(b) of Public Law 107-
                40, the President may recognize the donation of 
                eligible commodities, and the provision of technical 
                and nutritional assistance, by a recipient country 
                under the Program as a valid form of participation in 
                the coalition.
    ``(e) Effective Use of Eligible Commodities.--The Secretary shall 
ensure, to the maximum extent practicable, that each eligible 
organization--
            ``(1) uses eligible commodities made available under this 
        section effectively, in the areas of greatest need, and in a 
        manner that promotes educational development in recipient 
        countries and other purposes of this section;
            ``(2) in using assistance provided under this section, 
        assesses and takes into account the nutritional and educational 
        needs of participating pre-school age and primary-school age 
        children;
            ``(3) works with recipient countries and indigenous 
        institutions or groups in recipient countries to design and 
        carry out mutually acceptable food and education assistance 
        programs for participating pre-school age and primary-school 
        age children;
            ``(4) monitors and reports on the distribution or sale of 
        eligible commodities provided under this section using methods 
        that will facilitate accurate and timely reporting;
            ``(5) periodically evaluates the effectiveness of the 
        Program, including evaluation of whether the food security and 
        education purposes can be sustained in a recipient country if 
        the recipient country is gradually terminated from the 
        assistance in accordance with subsection (d)(4); and
            ``(6) considers means of improving the operation of the 
        Program by the eligible organization and ensuring and improving 
        the quality of the eligible commodities provided under this 
        section, including improvement of the nutrient or micronutrient 
        content of the eligible commodities.
    ``(f) Interagency Coordination on Policy Goals.--The Secretary 
shall consult and collaborate with other Federal agencies having 
appropriate expertise in order to provide assistance under this section 
to promote equal access to education to improve the quality of 
education, combat exploitative child labor, and advance broad-based 
sustainable economic development in recipient countries.
    ``(g) Sales and Barter.--
            ``(1) In general.--Notwithstanding subsection (d)(1)(A), 
        with the approval of the Secretary, an eligible organization 
        may--
                    ``(A) acquire funds or goods by selling or 
                bartering eligible commodities provided under this 
                section within the recipient country or countries in 
                the same region as the recipient country; and
                    ``(B) use the funds or goods to improve food 
                security and enhance educational opportunities for pre-
                school age and primary-school age children within the 
                recipient country, including implementation and 
                administrative costs incurred in carrying out this 
                subsection.
            ``(2) Payment of administrative costs.--An eligible 
        organization that receives payment for administrative costs 
        under paragraph (1) shall not be eligible to receive payment 
        for the same administrative costs under subsection (h)(3).
    ``(h) Eligible Costs.--Subject to subsections (d)(1) and (m), the 
Secretary shall pay all or part of--
            ``(1) the costs and charges described in paragraphs (1) 
        through (5) and (7) of section 406(b) with respect to an 
        eligible commodity;
            ``(2) the internal transportation, storage, and handling 
        costs incurred in distributing the eligible commodity, if the 
        Secretary determines that--
                    ``(A) the recipient country is a low income, net 
                food-importing country that--
                            ``(i) meets the poverty criteria 
                        established by the International Bank for 
                        Reconstruction and Development for Civil Works 
                        Preference; or
                            ``(ii) has a national government that is 
                        committed to or is working toward, through a 
                        national action plan, the World Declaration on 
                        Education for All convened in 1990 in Jomtien, 
                        Thailand, and the follow-up Dakar Framework for 
                        Action of the World Education Forum in 2000; 
                        and
                    ``(B) payment is appropriate in light of such other 
                factors as the Secretary considers appropriate; and
            ``(3) the projected costs of an eligible organization for 
        administration, sales, monitoring, and technical assistance 
        under a plan approved by the Secretary under subsection 
        (d)(1)(A) (including an itemized budget), taking into 
        consideration, as determined by the Secretary--
                    ``(A) the projected amount of such costs itemized 
                by category; and
                    ``(B) the projected amount of assistance received 
                from other donors.
    ``(i) Displacement.--Subsections (a)(2), (b), and (h) of section 
403 shall apply to this section.
    ``(j) Audits and Training.--The Secretary shall take such actions 
as the Secretary considers appropriate to support, monitor, audit, and 
provide necessary training in proper management under the Program.
    ``(k) 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--
            ``(1) the results of the implementation of the Program 
        during the applicable year, including the impact on the 
        enrollment, attendance, and performance of children in primary 
        schools targeted under the Program; and
            ``(2) the level of commitments by, and the potential for 
        obtaining additional goods and assistance from, other countries 
        for the purposes of this section during subsequent years.
    ``(l) Independence of Authorities.--Each authority granted under 
this section shall be in addition to, and not in lieu of, any authority 
granted to the Secretary or the Commodity Credit Corporation under any 
other provision of law.--
    ``(m) Funding.--
            ``(1) In general.--Subject to paragraphs (2) and (3), for 
        each of fiscal years 2002 through 2005, the Secretary shall use 
        the funds, facilities, and authorities of the Commodity Credit 
        Corporation to carry out this section.
            ``(2) Maximum amount.--Subject to paragraph (3), the amount 
        of funds of the Commodity Credit Corporation used to carry out 
        this section shall not exceed $250,000,000 for fiscal years 
        2002 through 2005.
            ``(3) Use limitations.--Of the funds provided under 
        paragraph (2), the Secretary may use to carry out subsection 
        (h)(3) not more than $35,000,000 for each of fiscal years 2002 
        through 2005.''.
    (b) Conforming Amendments.--
            (1) Section 404(b)(4) of the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1734(b)(4)) is amended by 
        inserting ``with respect to agreements entered into under this 
        Act (other than section 417),'' after ``(4)''.
            (2) Section 406(d) of the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1736(d)) is amended by 
        inserting ``(other than section 417)'' after ``this Act''.
            (3) Section 412(b)(1) of the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1736f(b)(1)) is amended by 
        inserting ``(other than section 417)'' after ``this Act'' each 
        place it appears.

SEC. 314. FARMER-TO-FARMER PROGRAM.

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

SEC. 315. 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''.

SEC. 316. FOOD FOR PROGRESS.

    (a) Reauthorization.--The Food for Progress Act of 1985 (7 U.S.C. 
1736o) is amended in subsections (f)(3), (g), and (k) by striking 
``2002'' each place it appears and inserting ``2006''.
    (b) Transportation Costs.--Section 1110(f)(3) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(f)(3)) is amended by striking 
``$30,000,000 (or, in the case of fiscal year 1999, $35,000,000)'' and 
inserting ``$55,000,000''.
    (c) Amounts of Commodities.--Section 1110(g) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(g)) is amended by striking ``Not 
more than 500,000'' and inserting ``Not less than 400,000''.
    (d) Multiyear Basis.--Section 1110(j) of the Food for Progress Act 
of 1985 (7 U.S.C. 1736o(j)) is amended by striking ``may'' and 
inserting ``may, and is encouraged to,''.
    (e) Increase in Funding.--Section 1110(l)(1) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(l)(1)) is amended--
            (1) by striking ``fiscal years 1996 through 2002'' and 
        inserting ``fiscal years 2002 through 2006''; and
            (2) by striking ``$10,000,000 (or in the case of fiscal 
        year 1999, $12,000,000)'' and inserting ``$15,000,000''.
    (f) Monetization.--Section 1110(l)(3) of the Food for Progress Act 
of 1985 (7 U.S.C. 1736o(l)(3)) is amended by striking ``local 
currencies derived from'' and inserting ``proceeds of''.
    (g) Smooth Program Delivery.--Section 1110 of the Food for Progress 
Act of 1985 (7 U.S.C. 1736o) is amended by adding at the end the 
following:
    ``(p) Timely Approval.--
            ``(1) In general.--The Secretary is encouraged to finalize 
        program agreements and resource requests for programs under 
        this section--
                    ``(A) before the beginning of each fiscal year; or
                    ``(B) as soon as funds are made available for the 
                fiscal year.
            ``(2) Report.--Not later than December 1 of each year, the 
        Secretary shall submit to the Committee on Agriculture and the 
        Committee on International Relations of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that contains--
                    ``(A) a list of programs, countries, and 
                commodities approved to date for assistance under this 
                section; and
                    ``(B) a statement of the total amount of funds 
                approved to date for transportation and administrative 
                costs under this section.
    ``(q) Certified Institutional Partners.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations and guidelines to permit private voluntary 
        organizations and cooperatives to be certified as institutional 
        partners.
            ``(2) Requirements.--To become a certified institutional 
        partner, a private voluntary organization or cooperative shall 
        submit to the Secretary a certification of organizational 
        capacity that describes--
                    ``(A) the financial, programmatic, commodity 
                management, and auditing abilities and practices of the 
                organization or cooperative; and
                    ``(B) the capacity of the organization or 
                cooperative to carry out projects in particular 
                countries.
            ``(3) Multi-country proposals.--A certified institutional 
        partner shall be eligible to--
                    ``(A) submit a single proposal for 1 or more 
                countries that are the same as, or similar to, those 
                countries in which the certified institutional partner 
                has already demonstrated organizational capacity;
                    ``(B) receive expedited review and approval of the 
                proposal; and
                    ``(C) request commodities and assistance under this 
                section for use in 1 or more countries.''.

SEC. 317. TROPICAL FOREST CONSERVATION.

    (a) Reduction of Debt Owed to the United States as a Result of 
Concessional Loans.--Section 806(a)(2)(C) of the Tropical Forest 
Conservation Act of 1998 (22 U.S.C. 2431d(a)(2)(C)) is amended by 
striking ``fiscal year 2001'' and inserting ``each of fiscal years 2001 
through 2006''.
    (b) Reduction of Debt Owed to the United States as a Result of 
Extended Credits.--Section 807(a)(2)(A)(iii) of the Tropical Forest 
Conservation Act of 1998 (22 U.S.C. 2431e(a)(2)(A)(iii)) is amended by 
striking ``fiscal year 2001'' and inserting ``each of fiscal years 2001 
through 2006''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Term of Supplier Credit Program.--Section 202(a)(2) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is amended by 
striking ``180'' and inserting ``360''.
    (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) 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''.
    (d) Report.--Section 211 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641) is amended by adding at the end the following:
    ``(d) Report on Agricultural Export Credit Programs.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, and annually thereafter, the 
        Secretary shall submit to the Committee on Agriculture and the 
        Committee on International Relations of the House of 
        Representatives and the Committee on Agriculture, Nutrition and 
        Forestry of the Senate a report on the status of multilateral 
        negotiations regarding agricultural export credit programs at 
        the World Trade Organization and the Organization of Economic 
        Cooperation and Development in fulfillment of Article 10.2 of 
        the Agreement on Agriculture (as described in section 101(d)(2) 
        of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2))).
            ``(2) Classified information.--The report under paragraph 
        (1) shall be submitted in unclassified form, but may contain a 
        classified annex.''.

SEC. 322. MARKET ACCESS PROGRAM.

    Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(c)(1)) is amended by striking ``2002'' and inserting ``2001, 
$100,000,000 for fiscal year 2002, $120,000,000 for fiscal year 2003, 
$145,000,000 for fiscal year 2004, $170,000,000 for fiscal year 2005, 
and $200,000,000 for fiscal year 2006''.

SEC. 323. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301(e)(1)(G) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking ``fiscal year 
2002'' and inserting ``each of fiscal years 2002 through 2006''.
    (b) Unfair Trade Practices.--Section 102(5)(A) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iii) changes United States export terms 
                        of trade through a deliberate change in the 
                        dollar exchange rate of a competing 
                        exporter.''.

SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    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) In General.--To carry out this title, the Secretary shall use 
funds of the Commodity Credit Corporation, or in commodities of the 
Commodity Credit Corporation of a value of the following amounts:
            ``(1) For fiscal year 2002, $37,500,000.
            ``(2) For fiscal year 2003, $40,000,000.
            ``(3) For fiscal year 2004 and each subsequent fiscal year, 
        $42,500,000.
    ``(b) Additional Criterion.--Of funds or commodities provided under 
subsection (a) in excess of $28,000,000 for any fiscal year, at least 
50 percent shall be reserved for--
            ``(1) eligible trade organizations that have never 
        participated in the program under this title; or
            ``(2) programs in countries that have not been targeted 
        previously by the program under this title.''.

        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. REPORTS ON INSPECTION OF IMPORTED MEAT, POULTRY, OTHER FOODS, 
              ANIMALS, AND PLANTS.

    Section 361(i)(4)(B) of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3421(i)(4)(B)) is amended by striking 
``2004'' and inserting ``2006''.

SEC. 333. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.

    (a) Use of Currencies.--Section 416(b)(7)(D) of the Agricultural 
Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
            (1) in clauses (i) and (iii), by striking ``foreign 
        currency'' each place it appears;
            (2) in clause (ii)--
                    (A) in the first sentence, by striking ``Foreign 
                currencies'' and inserting ``Proceeds''; and
                    (B) in the second sentence, by striking ``foreign 
                currency''; and
            (3) in clause (iv)--
                    (A) by striking ``Foreign currency proceeds'' and 
                inserting ``Proceeds'';
                    (B) by striking ``country of origin'' the second 
                place it appears and all that follows through ``as 
                necessary to expedite'' and inserting ``country of 
                origin as necessary to expedite''; and
                    (C) by striking ``; or'' and all that follows and 
                inserting a period.
    (b) Implementation of Agreements.--Section 416(b)(8) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended--
            (1) by striking ``(8)(A)'' and all that follows through 
        ``(B) The Secretary'' and inserting the following:
            ``(8) Administrative provisions.--
                    ``(A) Procedure.--
                            ``(i) Estimate of commodities.--Not later 
                        than October 31 of each fiscal year, the 
                        Secretary shall publish in the Federal Register 
                        an estimate of the quantity of each commodity 
                        that will be available for distribution under 
                        this section for the fiscal year.
                            ``(ii) Program agreements.--
                                    ``(I) Timing.--The Secretary is 
                                encouraged to finalize program 
                                agreements under this section not later 
                                than December 31 of each fiscal year.
                                    ``(II) Direct delivery.--In 
                                addition to practices in effect on the 
                                date of enactment of this subclause, 
                                the Secretary may approve an agreement 
                                that provides for direct delivery of 
                                eligible commodities to milling or 
                                processing facilities more than 50 
                                percent of the interest in which is 
                                owned by United States citizens in 
                                recipient countries, with proceeds of 
                                transactions transferred in cash to 
                                eligible organizations to carry out 
                                approved projects.
                    ``(B) Regulations.--The Secretary''.

SEC. 334. AGRICULTURAL TRADE WITH CUBA.

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

SEC. 335. OFFICE OF TRADE BARRIER RAPID RESPONSE.

    Subtitle B of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6931 et seq.) is amended by adding at the end the 
following:

``SEC. 228. OFFICE OF TRADE BARRIER RAPID RESPONSE.

    ``(a) In General.--The Secretary shall establish for the 
Department, in the Foreign Agricultural Service, the Office of Trade 
Barrier Rapid Response (referred to in this section as the `Office').
    ``(b) Responsibilities.--The Office shall be responsible for--
            ``(1) conducting outreach with domestic and foreign 
        consumers on issues of general interest to United States 
        farmers and ranchers; and
            ``(2) assisting exporters of agricultural commodities, 
        including by making a grant, in situations in which an exporter 
        faces an unwarranted or arbitrary barrier to trade due to 
        disease or a food safety concern.
    ``(c) Staff.--The staff of the Office shall include at least 1 
specialist with expertise on issues of agricultural biotechnology.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $5,000,000 for each fiscal year.
            ``(2) Grants.--Of amounts made available under paragraph 
        (1) for a fiscal year, the Secretary shall reserve at least 
        $2,000,000 to make grants under subsection (b)(2).''.

SEC. 336. SENSE OF CONGRESS CONCERNING AGRICULTURAL TRADE POLICY 
              OBJECTIVES.

    It is the sense of Congress that the principal negotiating 
objective of the United States with respect to agriculture in all 
multilateral, regional, and bilateral negotiations is to obtain 
competitive opportunities for United States exports in foreign markets 
substantially equivalent to the competitive opportunities afforded 
foreign exports in United States markets and to achieve fairer and more 
open conditions of trade in bulk and value-added commodities by--
            (1) reducing or eliminating, by a date certain, tariffs or 
        other charges that decrease market opportunities for United 
        States exports, giving priority to products that are subject to 
        significantly higher tariffs or subsidy regimes of major 
        producing countries;
            (2) reducing or eliminating subsidies that decrease market 
        opportunities for United States exports or unfairly distort 
        agriculture markets to the detriment of the United States;
            (3) developing, strengthening, and clarifying rules and 
        effective dispute settlement mechanisms to eliminate practices 
        that unfairly decrease United States market access 
        opportunities or distort agricultural markets to the detriment 
        of the United States, including--
                    (A) unfair or trade-distorting activities of state 
                trading enterprises and other administrative 
                mechanisms, with emphasis on requiring price 
                transparency in the operation of state trading 
                enterprises and such other mechanisms;
                    (B) unjustified trade restrictions or commercial 
                requirements affecting new technologies, including 
                biotechnology;
                    (C) unjustified sanitary or phytosanitary 
                restrictions, including restrictions that are not based 
                on scientific principles, in contravention of the 
                Uruguay Round Agreements;
                    (D) other unjustified technical barriers to trade; 
                and
                    (E) restrictive and nontransparent rules in the 
                administration of tariff rate quotas;
            (4) improving import relief mechanisms to recognize the 
        unique characteristics of perishable agriculture;
            (5) taking into account whether a party to the negotiations 
        has--
                    (A) failed to adhere to the provisions of an 
                existing bilateral trade agreement with the United 
                States; or
                    (B) circumvented obligations under a multilateral 
                trade agreement to which the United States is a 
                signatory; and
            (6) otherwise ensuring that countries that accede to the 
        World Trade Organization--
                    (A) have made meaningful market liberalization 
                commitments in agriculture; and
                    (B) make progress in fulfilling those commitments 
                over time.

                      TITLE IV--NUTRITION PROGRAMS

SEC. 401. SHORT TITLE.

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

                     Subtitle A--Food Stamp Program

SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

    (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)(6)) is amended by adding at the end the following: ``and 
child support payments made by a household member to or for an 
individual who is not a member of the household if the household member 
is legally obligated to make the payments,''.
    (b) Simplified Procedure.--Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended--
            (1) in subsection (e), by striking paragraph (4) and 
        inserting the following:
            ``(4) Deduction for child support payments.--
                    ``(A) In general.--In lieu of providing an 
                exclusion for legally obligated child support payments 
                made by a household member under subsection (d)(6), a 
                State agency may elect to provide a deduction for the 
                amount of the payments.
                    ``(B) Order of determining deductions.--A deduction 
                under this paragraph shall be determined before the 
                computation of the excess shelter expense deduction 
                under paragraph (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, at the option of the State agencies, to determine the 
        amount of the legally obligated child support payments made, 
        including procedures to allow the State agency to rely on 
        information from the agency responsible for implementing the 
        program under part D of title IV of the Social Security Act (42 
        U.S.C. 661 et seq.) concerning payments made in prior months in 
        lieu of obtaining current information from the household.
            ``(2) Duration of determination of amount of support 
        payments.--If a State agency makes a determination of the 
        amount of support payments of a household under paragraph (1), 
        the State agency may provide that the amount of the exclusion 
        or deduction for the household shall not change until the 
        eligibility of the household is next redetermined under section 
        11(e)(4).''.

SEC. 412. SIMPLIFIED DEFINITION OF INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
            (1) by striking ``and (15)'' and inserting ``(15)''; and
            (2) by inserting before the period at the end the 
        following: ``, (16) at the option of the State agency, any 
        educational loans on which payment is deferred, grants, 
        scholarships, fellowships, veterans' educational benefits, and 
        the like (other than loans, grants, scholarships, fellowships, 
        veterans' educational benefits, and the like excluded under 
        paragraph (3)), to the extent that they are required to be 
        excluded under title XIX of the Social Security Act (42 U.S.C. 
        1396 et seq.), (17) at the option of the State agency, any 
        State complementary assistance program payments that are 
        excluded for the purpose of determining eligibility for medical 
        assistance under section 1931 of the Social Security Act (42 
        U.S.C. 1396u-1), and (18) at the option of the State agency, 
        any types of income that the State agency does not consider 
        when determining eligibility for (A) cash benefits under a 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) or the amount of such benefits, or 
        (B) medical assistance under section 1931 of the Social 
        Security Act (42 U.S.C. 1396u-1), except that this paragraph 
        does not authorize a State agency to exclude wages or salaries, 
        benefits under title I, II, IV, X, XIV, or XVI of the Social 
        Security Act (42 U.S.C. 1381 et seq.), regular payments from a 
        government source (such as unemployment benefits and general 
        assistance), worker's compensation, or such other types of 
        income the consideration of which the Secretary determines by 
        regulation to be essential to equitable determinations of 
        eligibility and benefit levels''.

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

    Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is 
amended by striking paragraph (1) and inserting the following:
            ``(1) Standard deduction.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the Secretary shall allow for each 
                household a standard deduction that is equal to the 
                greater of--
                            ``(i) the applicable percentage specified 
                        in subparagraph (D) of the applicable income 
                        standard of eligibility established under 
                        subsection (c)(1); or
                            ``(ii) the minimum deduction specified in 
                        subparagraph (E).
                    ``(B) Guam.--The Secretary shall allow for each 
                household in Guam a standard deduction that is--
                            ``(i) equal to the applicable percentage 
                        specified in subparagraph (D) of twice the 
                        income standard of eligibility established 
                        under subsection (c)(1) for the 48 contiguous 
                        States and the District of Columbia; but
                            ``(ii) not less than the minimum deduction 
                        for Guam specified in subparagraph (E).
                    ``(C) Households of 6 or more members.--The income 
                standard of eligibility established under subsection 
                (c)(1) for a household of 6 members shall be used to 
                calculate the standard deduction for each household of 
                6 or more members.
                    ``(D) Applicable percentage.--For the purpose of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) 8 percent for each of fiscal years 
                        2002 through 2007;
                            ``(ii) 8.5 percent for each of fiscal years 
                        2008 through 2010; and
                            ``(iii) 9 percent for fiscal year 2011 and 
                        each subsequent fiscal year.
                    ``(E) Minimum deduction.--The minimum deduction 
                shall be $134, $229, $189, $269, and $118 for the 48 
                contiguous States and the District of Columbia, Alaska, 
                Hawaii, Guam, and the Virgin Islands of the United 
                States, respectively.''.

SEC. 414. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

    (a) In General.--Section 5(e)(7) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(7)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``A household'' and inserting the 
                following:
                            ``(i) In general.--A household''; and
                    (B) by adding at the end the following:
                            ``(ii) Inclusion of certain payments.--In 
                        determining the shelter expenses of a household 
                        under this paragraph, the State agency shall 
                        include any required payment to the landlord of 
                        the household without regard to whether the 
                        required payment is designated to pay specific 
                        charges.''; and
            (2) by adding at the end the following:
                    ``(D) Homeless households.--
                            ``(i) Alternative deduction.--In lieu of 
                        the deduction provided under subparagraph (A), 
                        a State agency may elect to allow a household 
                        in which all members are homeless individuals, 
                        but that is not receiving free shelter 
                        throughout the month, to receive a deduction of 
                        $143 per month.
                            ``(ii) Ineligibility.--The State agency may 
                        make a household with extremely low shelter 
                        costs ineligible for the alternative deduction 
                        under clause (i).''.
    (b) Conforming Amendments.--Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (6) and (7) as 
                paragraphs (5) and (6), respectively; and
            (2) in subsection (k)(4)(B), by striking ``subsection 
        (e)(7)'' and inserting ``subsection (e)(6)''.

SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.

    Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as amended 
by section 414(b)(1)(B)) is amended--
            (1) in subclause (I)(bb), by inserting ``(without regard to 
        subclause (III))'' after ``Secretary finds''; and
            (2) by adding at the end the following:
                                    ``(III) Inapplicability of certain 
                                restrictions.--Clauses (ii)(II) and 
                                (ii)(III) shall not apply in the case 
                                of a State agency that has made the use 
                                of a standard utility allowance 
                                mandatory under subclause (I).''.

SEC. 416. SIMPLIFIED PROCEDURE FOR DETERMINATION OF EARNED INCOME.

    Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(f)(1)) 
is amended by adding at the end the following:
                    ``(C) Simplified determination of earned income.--
                            ``(i) In general.--A State agency may elect 
                        to determine monthly earned income by 
                        multiplying weekly income by 4 and biweekly 
                        income by 2.
                            ``(ii) Adjustment of earned income 
                        deduction.--A State agency that makes an 
                        election described in clause (i) shall adjust 
                        the earned income deduction under subsection 
                        (e)(2)(B) to the extent necessary to prevent 
                        the election from resulting in increased costs 
                        to the food stamp program, as determined 
                        consistent with standards promulgated by the 
                        Secretary.''.

SEC. 417. SIMPLIFIED 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 cash 
                benefits under a program funded under part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et seq.).
                    ``(B) Limitations.--Subparagraph (A) does not 
                authorize a State agency to exclude--
                            ``(i) cash;
                            ``(ii) licensed vehicles;
                            ``(iii) amounts in any account in a 
                        financial institution that are readily 
                        available to the household; or
                            ``(iv) any other similar type of resource 
                        the inclusion in financial resources of which 
                        the Secretary determines by regulation to be 
                        essential to equitable determinations of 
                        eligibility under the food stamp program, 
                        except to the extent that any of those types of 
                        resources are excluded under another paragraph 
                        of this subsection.''.

SEC. 418. 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. 419. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

    Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)) 
is amended--
            (1) in subparagraph (B), by striking ``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. 420. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.

    (a) In General.--Section 6(o) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(o)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking ``subsection 
                (d)(4)'' and all that follows and inserting 
                ``subsection (d)(4); and''; and
                    (C) by adding at the end the following:
                    ``(D) a job search program or job search training 
                program if--
                            ``(i) the program meets standards 
                        established by the Secretary to ensure that the 
                        participant is continuously and actively 
                        seeking employment in the private sector; and
                            ``(ii) no position is currently available 
                        for the participant in an employment or 
                        training program that meets the requirements of 
                        subparagraph (C).'';
            (2) in paragraph (2)--
                    (A) by striking ``36-month'' and inserting ``24-
                month'';
                    (B) by striking ``3'' and inserting ``6''; and
                    (C) in subparagraph (D), by striking ``(4), (5), or 
                (6)'' and inserting ``(4), or (5)'';
            (3) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the individual is'';
                    (B) in each of subparagraphs (A) through (E), by 
                inserting ``the individual is'' after the subparagraph 
                designation;
                    (C) in subparagraph (D), by striking ``or'' at the 
                end;
                    (D) in subparagraph (E), by striking the period at 
                the end and inserting ``; or''; and
                    (E) by adding at the end the following:
                    ``(F) in the case of an individual who would 
                otherwise be ineligible under paragraph (2), the 
                individual meets the work requirement of subparagraph 
                (A), (B), or (C) of paragraph (2).'';
            (4) by striking paragraph (5);
            (5) in paragraph (6)(A)(ii)--
                    (A) in subclause (III), by adding ``and'' at the 
                end;
                    (B) in subclause (IV)--
                            (i) by striking ``3'' and inserting ``6''; 
                        and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (C) by striking subclause (V); and
            (6) by redesignating paragraphs (6) and (7) as paragraphs 
        (5) and (6), respectively.
    (b) Conforming Amendment.--Section 16(h)(1)(B)(i)(I) of the Food 
Stamp Act of 1977 (7 U.S.C. 2015(h)(1)(B)(i)(I)) is amended by striking 
``section 6(o)(6)(A))'' and inserting ``section 6(o)(5)(A))''.
    (c) 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. 421. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

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

SEC. 422. 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. 423. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN GROUP 
              FACILITIES.

    (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 
2017) is amended by adding at the end the following:
    ``(f) Simplified Procedures for Residents of Certain Group 
Facilities.--
            ``(1) In general.--At the option of the State agency, 
        allotments for residents of facilities described in 
        subparagraph (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. 424. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE 
              INTERNET.

    Section 11(e)(2)(B)(ii) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(2)(B)(ii)) is amended--
            (1) by inserting ``(I)'' after ``(ii)'';
            (2) in subclause (I) (as designated by paragraph (1)), by 
        adding ``and'' at the end; and
            (3) by adding at the end the following:
                    ``(II) if the State agency maintains a website for 
                the State agency, shall make the application available 
                on the website in each language in which the State 
                agency makes a printed application available;''.

SEC. 425. SIMPLIFIED DETERMINATIONS OF CONTINUING ELIGIBILITY.

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

SEC. 426. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION EFFORTS.

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

SEC. 427. 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 
        benefits 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 
        benefits are 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 benefits 
        were terminated, adjusted for--
                    ``(A) the change in household income as a result of 
                the termination of cash benefits; and
                    ``(B) any changes in circumstances that may result 
                in an increase in the food stamp allotment of the 
                household and that the household elects to report.
            ``(4) Determination of future eligibility.--In the final 
        month of the transitional benefits period under paragraph (2), 
        the State agency may--
                    ``(A) require the household to cooperate in a 
                redetermination of eligibility; and
                    ``(B) initiate a new eligibility review period for 
                the household without regard to whether the preceding 
                eligibility review period has expired.
            ``(5) Limitation.--A household shall not be eligible for 
        transitional benefits under this subsection if the household--
                    ``(A) loses eligibility under section 6;
                    ``(B) is sanctioned for a failure to perform an 
                action required by Federal, State, or local law 
                relating to a cash benefits 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. 428. REFORM OF QUALITY CONTROL SYSTEM.

    (a) In General.--Section 16(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Under such system'' and all that 
                follows through ``(A) the Secretary'' and inserting the 
                following: ``The system referred to in the preceding 
                sentence shall have the following elements:
                    ``(A) The Secretary'';
                    (B) in subparagraph (A)--
                            (i) by striking ``one percentage point to a 
                        maximum of 60'' and inserting ``\1/2\ of 1 
                        percentage point to a maximum of 55''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period; and
                    (C) by striking subparagraph (B) and all that 
                follows and inserting the following:
                    ``(B) Investigation and initial sanctions.--
                            ``(i) Investigation.--Except as provided 
                        under subparagraph (C), for any fiscal year in 
                        which the Secretary determines that a 95 
                        percent statistical probability exists that the 
                        payment error rate of a State agency exceeds 
                        the national performance measure for payment 
                        error rates announced under paragraph (6) by 
                        more than 1 percentage point, other than for 
                        good cause shown, the Secretary shall 
                        investigate the administration by the State 
                        agency of the food stamp program unless the 
                        Secretary determines that sufficient 
                        information is already available to review the 
                        administration by the State agency.
                            ``(ii) Initial sanctions.--If an 
                        investigation under clause (i) results in a 
                        determination that the State agency has been 
                        seriously negligent (as determined under 
                        standards promulgated by the Secretary), the 
                        State agency shall pay the Secretary an amount 
                        that reflects the extent of such negligence (as 
                        determined under standards promulgated by the 
                        Secretary), not to exceed 5 percent of the 
                        amount provided to the State agency under 
                        subsection (a) for the fiscal year.
                    ``(C) Additional sanctions.--If, for any fiscal 
                year, the Secretary determines that a 95 percent 
                statistical probability exists that the payment error 
                rate of a State agency exceeds the national performance 
                measure for payment error rates announced under 
                paragraph (6) by more than 1 percentage point, other 
                than for good cause shown, and that the State agency 
                was sanctioned under this paragraph or was the subject 
                of an investigation or review under subparagraph (B)(i) 
                for each of the 2 immediately preceding fiscal years, 
                the State agency shall pay to the Secretary an amount 
                equal to the product obtained by multiplying--
                            ``(i) the value of all allotments issued by 
                        the State agency in the fiscal year;
                            ``(ii) the lesser of--
                                    ``(I) the ratio that--
                                            ``(aa) the amount by which 
                                        the payment error rate of the 
                                        State agency for the fiscal 
                                        year exceeds by more than 1 
                                        percentage point the national 
                                        performance measure for the 
                                        fiscal year; bears to
                                            ``(bb) 10 percent; or
                                    ``(II) 1; and
                            ``(iii) the amount by which the payment 
                        error rate of the State agency for the fiscal 
                        year exceeds by more than 1 percentage point 
                        the national performance measure for the fiscal 
                        year.
                    ``(D) Corrective action plans.--The Secretary shall 
                foster management improvements by the States by 
                requiring State agencies to develop and implement 
                corrective action plans to reduce payment errors.'';
            (2) in paragraph (2)(A), by inserting before the semicolon 
        the following: ``, as adjusted downward as appropriate under 
        paragraph (10)'';
            (3) in paragraph (4), by striking ``(4)'' and all that 
        follows through the end of the first sentence and inserting the 
        following:
            ``(4) Reporting requirements.--The Secretary may require a 
        State agency to report any factors that the Secretary considers 
        necessary to determine a State agency's payment error rate, 
        enhanced administrative funding, claim for payment error under 
        paragraph (1), or performance under the performance measures 
        under paragraph (11).'';
            (4) in paragraph (5), by striking ``(5)'' and all that 
        follows through the end of the second sentence and inserting 
        the following:
            ``(5) Procedures.--To facilitate the implementation of this 
        subsection, each State agency shall expeditiously submit to the 
        Secretary data concerning the operations of the State agency in 
        each fiscal year sufficient for the Secretary to establish the 
        payment error rate for the State agency for the fiscal year, to 
        comply with paragraph (10), and to determine the amount of 
        enhanced administrative funding under paragraph (1)(A), high 
        performance bonus payments under paragraph (11), or claims 
        under subparagraph (B) or (C) of paragraph (1).'';
            (5) in the first sentence of paragraph (6), by inserting 
        ``(but determined without regard to paragraph (10))'' before 
        ``times that''; and
            (6) by adding at the end the following:
            ``(10) Adjustments of payment error rate.--
                    ``(A) In general.--
                            ``(i) 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) Additional adjustments.--For fiscal year 2003 
                and each fiscal year thereafter, the Secretary may make 
                such additional adjustments to the payment error rate 
                determined under paragraph (2)(A) as the Secretary 
                determines to be consistent with achieving the purposes 
                of this Act.''.
    (b) Applicability.--Except as otherwise provided in the amendments 
made by subsection (a), the amendments made by subsection (a) shall 
apply to fiscal year 2001 and each fiscal year thereafter.

SEC. 429. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE MEASURES.

    Section 16(c)(8) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(c)(8)) is amended--
            (1) in subparagraph (B), by striking ``180 days after the 
        end of the fiscal year'' and inserting ``the first June 30 
        after the end of the fiscal year referred to in subparagraph 
        (A)''; and
            (2) in subparagraph (C), by striking ``30 days thereafter'' 
        and inserting ``the first June 30 after the end of the fiscal 
        year referred to in subparagraph (A)''.

SEC. 430. HIGH PERFORMANCE BONUS PAYMENTS TO STATES.

    (a) In General.--Section 16(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(c)) (as amended by section 428(a)(6)) is amended by adding 
at the end the following:
            ``(11) Additional performance measures.--
                    ``(A) In general.--In addition to the performance 
                measures under paragraph (1), the Secretary shall 
                measure the performance of State agencies in each 
                fiscal year with respect to--
                            ``(i) compliance with the deadlines under 
                        paragraphs (3) and (9) of section 11(e);
                            ``(ii) the percentage of negative 
                        eligibility decisions that are made correctly; 
                        and
                            ``(iii) the ratio, expressed as a 
                        percentage, that--
                                    ``(I) the number of households in 
                                the State that--
                                            ``(aa) receive food stamps;
                                            ``(bb) have incomes less 
                                        than 130 percent of the poverty 
                                        line (as defined in section 673 
                                        of the Community Services Block 
                                        Grant Act (42 U.S.C. 9902));
                                            ``(cc) have annual earnings 
                                        equal to at least 1000 times 
                                        the Federal minimum hourly rate 
                                        under the Fair Labor Standards 
                                        Act of 1938 (29 U.S.C. 201 et 
                                        seq.); and
                                            ``(dd) have children under 
                                        age 18; bears to
                                    ``(II) the number of households in 
                                the State that meet the criteria 
                                specified in items (bb) through (dd) of 
                                subclause (I).
                    ``(B) Rankings of state agencies.--
                            ``(i) In general.--For each fiscal year, 
                        the Secretary shall determine--
                                    ``(I) the relative ranking of each 
                                State agency with respect to each 
                                performance measure specified in 
                                subparagraph (A) based on the level of 
                                performance by the State agency with 
                                respect to the performance measure in 
                                the most recent year for which the 
                                Secretary determines that reliable data 
                                are available; and
                                    ``(II) the relative ranking of each 
                                State agency with respect to each 
                                performance measure specified in 
                                subparagraph (A) based on the 
                                improvement in the level of performance 
                                by the State agency with respect to the 
                                performance measure between the 2 most 
                                recent years for which the Secretary 
                                determines that reliable data are 
                                available.
                            ``(ii) Selection of higher ranking.--For 
                        each State agency and each of the 3 performance 
                        measures specified in subparagraph (A), the 
                        Secretary shall select the higher of the 2 
                        rankings determined under clause (i).
                            ``(iii) Determination of average ranking.--
                        The Secretary shall--
                                    ``(I) determine, for each State 
                                agency, the average of the 3 rankings 
                                selected for the State agency under 
                                clause (ii); and
                                    ``(II) identify the 10 State 
                                agencies with the highest average 
                                ranking.
                    ``(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.--At the time at 
                                which the Secretary makes the 
                                notifications required under paragraph 
                                (8) for fiscal year 2002 and each 
                                fiscal year thereafter, the Secretary 
                                shall--
                                            ``(aa) make 1 high 
                                        performance bonus payment of 
                                        $10,000,000; and
                                            ``(bb) allocate the high 
                                        performance bonus payment in 
                                        accordance with subclauses (II) 
                                        and (III).
                                    ``(II) Allocation of payment.--For 
                                each fiscal year, the Secretary shall 
                                allocate the high performance bonus 
                                payment for the fiscal year among the 
                                10 State agencies identified under 
                                subparagraph (B)(iii)(II) in the ratio 
                                that--
                                            ``(aa) the caseload of each 
                                        such State agency; bears to
                                            ``(bb) the caseloads of all 
                                        such State agencies.
                                    ``(III) Allocation in event of a 
                                tie.--If the Secretary determines that 
                                2 or more State agencies have the same 
                                average ranking under subparagraph 
                                (B)(iii), the portion of the bonus 
                                payment allocable to those State 
                                agencies shall be divided among those 
                                State agencies in an equitable manner 
                                determined by the Secretary.
                                    ``(IV) 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.
                    ``(D) Investigation and correction of 
                deficiencies.--
                            ``(i) In general.--For any fiscal year in 
                        which the Secretary determines that a 95 
                        percent statistical probability exists that the 
                        performance of a State agency with respect to 
                        any of the performance measures specified in 
                        subparagraph (A) is substantially worse than a 
                        level that the Secretary determines to be 
                        reasonable, other than for good cause shown, 
                        the Secretary shall investigate the 
                        administration by the State agency of the food 
                        stamp program.
                            ``(ii) Corrective action.--If an 
                        investigation under clause (i) results in a 
                        determination that the administration by the 
                        State agency has been deficient, the Secretary 
                        shall require the State agency to take prompt 
                        corrective action.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to fiscal year 2003 and each fiscal year thereafter.

SEC. 431. EMPLOYMENT AND TRAINING PROGRAM.

    (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp Act of 
1977 (7 U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``, to remain available until 
                expended,''; and
                    (B) by striking clause (vii) and inserting the 
                following:
                            ``(vii) for each of fiscal years 2002 
                        through 2006, $90,000,000, to remain available 
                        until expended.'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Allocation.--Funds made available under 
                subparagraph (A) shall be made available to and 
                reallocated among State agencies under a reasonable 
                formula that--
                            ``(i) is determined and adjusted by the 
                        Secretary; and
                            ``(ii) takes into account the number of 
                        individuals who are not exempt from the work 
                        requirement under section 6(o).''; and
            (3) by striking subparagraphs (E) through (G) and inserting 
        the following:
                    ``(E) Additional allocations for states that ensure 
                availability of work opportunities.--
                            ``(i) In general.--In addition to the 
                        allocations under subparagraph (A), from funds 
                        made available under section 18(a)(1), the 
                        Secretary shall allocate not more than 
                        $25,000,000 for each of fiscal years 2002 
                        through 2006 to reimburse a State agency that 
                        is eligible under clause (ii) for the 
                        additional costs of serving food stamp 
                        recipients who--
                                    ``(I) are not eligible for an 
                                exception under section 6(o)(3); and
                                    ``(II) are placed in and comply 
                                with a program described in 
                                subparagraph (B) or (C) of section 
                                6(o)(2).
                            ``(ii) Eligibility.--To be eligible for an 
                        additional allocation under clause (i), a State 
                        agency shall--
                                    ``(I) exhaust the allocation to the 
                                State agency under subparagraph (A) 
                                (including any reallocation that has 
                                been made available under subparagraph 
                                (C)); and
                                    ``(II) make and comply with a 
                                commitment to offer a position in a 
                                program described in subparagraph (B) 
                                or (C) of section 6(o)(2) to each 
                                applicant or recipient who--
                                            ``(aa) is in the last month 
                                        of the 6-month period described 
                                        in section 6(o)(2);
                                            ``(bb) is not eligible for 
                                        an exception under section 
                                        6(o)(3);
                                            ``(cc) is not eligible for 
                                        a waiver under section 6(o)(4); 
                                        and
                                            ``(dd) is not eligible for 
                                        an exemption under section 
                                        6(o)(5).''.
    (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)''.
    (e) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 432. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS.

    (a) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``2002'' and inserting ``2006''; and
            (2) in subparagraph (B)(ii), by striking ``2002'' and 
        inserting ``2006''.
    (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by 
striking ``2002'' and inserting ``2006''.
    (c) Grants To Improve Food Stamp Participation.--Section 
17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is 
amended in the first sentence by striking ``2002'' and inserting 
``2006''.
    (d) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the first 
sentence by striking ``2002'' and inserting ``2006''.

SEC. 433. COORDINATION OF PROGRAM INFORMATION EFFORTS.

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

SEC. 434. 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. 435. ACCESS AND OUTREACH PILOT PROJECTS.

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

SEC. 436. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.

    (a) Consolidated Funding.--Section 19(a)(1) of the Food Stamp Act 
of 1977 (7 U.S.C. 2028(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``the Commonwealth of Puerto Rico'' 
                and inserting ``governmental entities specified in 
                subparagraph (D)'';
                    (B) in clause (ii), by striking ``and'' at the end; 
                and
                    (C) by striking clause (iii) and all that follows 
                and inserting the following:
            ``(iii) for fiscal year 2002, $1,356,000,000; and
            ``(iv) for each of fiscal years 2003 through 2006, the 
        amount provided in clause (iii), as adjusted by the percentage 
        by which the thrifty food plan has been adjusted under section 
        3(o)(4) between June 30, 2001, and June 30 of the immediately 
        preceding fiscal year;
to pay the expenditures for nutrition assistance programs for needy 
persons as described in subparagraphs (B) and (C).'';
            (2) in subparagraph (B)--
                    (A) by striking ``(B) The'' and inserting the 
                following:
                    ``(B) Maximum payments to commonwealth of puerto 
                rico.--
                            ``(i) In general.--The'';
                    (B) by inserting ``of Puerto Rico'' after 
                ``Commonwealth'' each place it appears; and
                    (C) by adding at the end the following:
                            ``(ii) Exception for expenditures for 
                        certain systems.--Notwithstanding subparagraph 
                        (A) and clause (i), the Commonwealth of Puerto 
                        Rico may spend not more than $6,000,000 of the 
                        amount required to be paid to the Commonwealth 
                        for fiscal year 2002 under subparagraph (A) to 
                        pay 100 percent of the costs of--
                                    ``(I) upgrading and modernizing the 
                                electronic data processing system used 
                                to carry out nutrition assistance 
                                programs for needy persons; and
                                    ``(II) implementing systems to 
                                simplify the determination of 
                                eligibility to receive that nutrition 
                                assistance.''; and
            (3) by adding at the end the following:
                    ``(C) American samoa.--For each fiscal year, the 
                Secretary shall reserve 0.4 percent of the funds made 
                available under subparagraph (A) for payment to 
                American Samoa to pay 100 percent of the expenditures 
                for a nutrition assistance program extended under 
                section 601(c) of Public Law 96-597 (48 U.S.C. 
                1469d(c)).
                    ``(D) Governmental entity.--A governmental entity 
                specified in this subparagraph is--
                            ``(i) the Commonwealth of Puerto Rico; and
                            ``(ii) for fiscal year 2003 and each fiscal 
                        year thereafter, American Samoa.''.
    (b) Conforming Amendment.--Section 24 of the Food Stamp Act of 1977 
(7 U.S.C. 2033) is repealed.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section take effect on October 1, 2002.
            (2) Exception for expenditures for certain systems.--The 
        amendments made by subsection (a)(2) take effect on the date of 
        enactment of this Act.

SEC. 437. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
amended--
            (1) in subsection (b)(2)(B), by striking ``2002'' and 
        inserting ``2006'';
            (2) in subsection (d)--
                    (A) in paragraph (3), by striking ``or'' at the 
                end; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) encourage long-term planning activities, and 
        multisystem, interagency approaches with multistakeholder 
        collaborations, that build the long-term capacity of 
        communities to address the food and agriculture problems of the 
        communities, such as food policy councils and food planning 
        associations; or
            ``(5) meet, as soon as practicable, specific neighborhood, 
        local, or State food and agriculture needs, including needs 
        for--
                    ``(A) infrastructure improvement and development;
                    ``(B) planning for long-term solutions; or
                    ``(C) the creation of innovative marketing 
                activities that mutually benefit farmers and low-income 
                consumers.'';
            (3) in subsection (e)(1), by striking ``50'' and inserting 
        ``75''; and
            (4) in subsection (h)(2), by striking ``2002'' and 
        inserting ``2007''.

SEC. 438. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE 
              PROGRAM.

    Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``1997 through 2002'' and inserting 
                ``2002 through 2006''; and
                    (B) by striking ``$100,000,000'' and inserting 
                ``$140,000,000''; and
            (2) by adding at the end the following:
    ``(c) Use of Funds for Related Costs.--For each of fiscal years 
2002 through 2006, the Secretary shall use $10,000,000 of the funds 
made available under subsection (a) to pay the direct and indirect 
costs of States relating to the processing, storing, transporting, and 
distributing to eligible recipient agencies of--
            ``(1) commodities purchased by the Secretary under 
        subsection (a); and
            ``(2) commodities acquired from other sources, including 
        commodities acquired by gleaning (as defined in section 111(a) 
        of the Hunger Prevention Act of 1988 (7 U.S.C. 612c note; 
        Public Law 100-435)).''.

SEC. 439. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY PROBLEMS.

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

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

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

SEC. 440. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Agriculture shall submit to Congress a report on--
            (1) the difficulties in using electronic benefit transfer 
        systems in issuance of food stamp benefits under the Food Stamp 
        Act of 1977 (7 U.S.C. 2011 et seq.);
            (2) the extent to which there exists fraud, and the types 
        of fraud that exist, in use of the electronic benefit transfer 
        systems; and
            (3) the efforts being made by the Secretary of Agriculture, 
        retailers, electronic benefit transfer system contractors, and 
        States to address the problems described in paragraphs (1) and 
        (2).

SEC. 441. VITAMIN AND MINERAL SUPPLEMENTS.

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

                  Subtitle B--Miscellaneous Provisions

SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

    (a) Commodity Distribution Program.--Section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended in the first sentence by striking ``2002'' 
and inserting ``2006''.
    (b) Commodity Supplemental Food Program.--Section 5 of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Grants Per Assigned Caseload Slot.--
            ``(1) In general.--In carrying out the program under 
        section 4 (referred to in this section as the `commodity 
        supplemental food program'), for each of fiscal years 2002 
        through 2006, the Secretary shall provide to each State agency 
        from funds made available to carry out that section (including 
        any such funds remaining available from the preceding fiscal 
        year), a grant per assigned caseload slot for administrative 
        costs incurred by the State agency and local agencies in the 
        State in operating the commodity supplemental food program.
            ``(2) Amount of grants.--
                    ``(A) Fiscal year 2002.--The amount of each grant 
                per caseload slot for fiscal year 2002 shall be equal 
                to the amount of the grant per caseload slot for fiscal 
                year 2001, as determined by the Secretary, adjusted by 
                the percentage change between--
                            ``(i) the value of the State and local 
                        government price index, as published by the 
                        Bureau of Economic Analysis of the Department 
                        of Commerce, for the 12-month period ending 
                        June 30, 2000; and
                            ``(ii) the best estimate available (as of 
                        the beginning of the fiscal year) of the value 
                        of that index for the 12-month period ending 
                        June 30, 2002.
                    ``(B) Fiscal years 2003 through 2006.--For each of 
                fiscal years 2003 through 2006, the amount of each 
                grant per caseload slot shall be equal to the amount of 
                the grant per caseload slot for the preceding fiscal 
                year adjusted by the percentage change between--
                            ``(i) the value of the State and local 
                        government price index, as published by the 
                        Bureau of Economic Analysis of the Department 
                        of Commerce, for the 12-month period ending 
                        June 30 of the second preceding fiscal year; 
                        and
                            ``(ii) the best estimate available (as of 
                        the beginning of the fiscal year) of the value 
                        of that index for the 12-month period ending 
                        June 30 of the fiscal year.''; and
            (2) in subsection (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 by striking ``2002'' and inserting ``2006''.

SEC. 452. RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.

    (a) Restoration of Benefits to All Qualified Alien Children.--
            (1) In general.--Section 402(a)(2)(J) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1612(a)(2)(J)) is amended by striking ``who'' and all 
        that follows through ``is under'' and inserting ``who is 
        under''.
            (2) Conforming amendments.--
                    (A) Section 403(c)(2) of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996 (8 U.S.C. 1613(c)(2)) is amended by adding at 
                the end the following:
                    ``(L) Assistance or benefits under the Food Stamp 
                Act of 1977 (7 U.S.C. 2011 et seq.) to the extent that 
                a qualified alien is eligible under subparagraph (B) or 
                (J) of section 402(a)(2).''.
                    (B) Section 421(d) of the Personal Responsibility 
                and Work Opportunity Reconciliation Act of 1996 (8 
                U.S.C. 1631(d)) is amended by adding at the end the 
                following:
            ``(3) This section shall not apply to assistance or 
        benefits under the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
        seq.) to the extent that a qualified alien is eligible under 
        section 402(a)(2)(J).''.
                    (C) Section 5(i)(2)(E) of the Food Stamp Act of 
                1977 (7 U.S.C. 2014(i)(2)(E)) is amended by inserting 
                before the period at the end the following: ``, or to 
                any child who is under 18 years of age''.
            (3) Applicability.--The amendments made by this subsection 
        shall apply to fiscal year 2004 and each fiscal year 
        thereafter.
    (b) Work Requirement for Legal Immigrants.--
            (1) Working immigrant families.--Section 
        402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
        inserting ``40 (or 16, in the case of the specified Federal 
        program described in paragraph (3)(B))''.
            (2) Conforming amendments.--
                    (A) Section 213A(a)(3)(A) of the Immigration and 
                Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
                striking ``40'' and inserting ``40 (or 16, in the case 
                of the specified Federal program described in section 
                402(a)(3)(B) of the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996 (8 U.S.C. 
                1612(a)(3)(B)))''.
                    (B) Section 421(b)(2)(A) of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996 (8 U.S.C. 1631(b)(2)(A)) is amended by striking 
                ``40'' and inserting ``40 (or 16, in the case of the 
                specified Federal program described in section 
                402(a)(3)(B))''.
    (c) Restoration of Benefits to Refugees and Asylees.--Section 
402(a)(2) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``programs described 
        in paragraph (3)'' and inserting ``program described in 
        paragraph (3)(A)''; and
            (2) by adding at the end the following:
                    ``(L) Food stamp exception for refugees and 
                asylees.--With respect to eligibility for benefits for 
                the specified Federal program described in paragraph 
                (3)(B), paragraph (1) shall not apply to an alien with 
                respect to which an action described in subparagraph 
                (A) was taken and was not revoked.''.
    (d) Restoration of Benefits to Disabled Aliens.--Section 
402(a)(2)(F) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(F)) is amended--
            (1) by striking the subparagraph heading and inserting 
        ``Exception for disabled aliens'';
            (2) by striking ``(i) was'' and all that follows through 
        ``in the case'' and inserting the following:
                            ``(i) in the case''; and
            (3) by striking ``(II)'' and inserting ``(ii)''.

SEC. 453. FRUIT AND VEGETABLE PILOT PROGRAM.

    (a) In General.--In the school year beginning July 2002, the 
Secretary of Agriculture shall use funds made available under section 
32 of the Act of August 24, 1935 (7 U.S.C. 612c), to conduct a pilot 
program to make available to students, in 25 elementary or secondary 
schools in each of 4 States, and in elementary or secondary schools on 
1 Indian reservation, free fruits and vegetables throughout the school 
day in--
            (1) a cafeteria;
            (2) a student lounge; or
            (3) another designated room of the school.
    (b) Publicity.--A school that participates in the pilot program 
shall widely publicize within the school the availability of free 
fruits and vegetables under the pilot program.
    (c) Evaluation of Pilot Program.--
            (1) In general.--At the end of the school year during which 
        the pilot program is carried out, the Secretary of Agriculture 
        shall conduct an evaluation of the results of the pilot program 
        to determine--
                    (A) whether students took advantage of the pilot 
                program;
                    (B) whether interest in the pilot program increased 
                or lessened over time; and
                    (C) what effect, if any, the pilot program had on 
                vending machine sales.
            (2) Funding.--The Secretary shall use $200,000 of the funds 
        described in subsection (a) to carry out the evaluation under 
        this subsection.

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) a commitment to social change;
                                    (III) leadership potential or 
                                leadership experience;
                                    (IV) diverse life experience;
                                    (V) proficient writing and speaking 
                                skills;
                                    (VI) an ability to live in poor or 
                                diverse communities; and
                                    (VII) 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.--The Program may 
                make such other expenditures as the Program considers 
                necessary to carry out this section, but excluding 
                project development.
    (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 any or all of 
the amendments until October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 501. DIRECT LOANS.

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

SEC. 502. FINANCING OF BRIDGE LOANS.

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

SEC. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

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

SEC. 504. JOINT FINANCING ARRANGEMENTS.

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

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

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

SEC. 506. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR 
              RANCHER PROGRAMS.

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

SEC. 507. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1935) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``30 percent'' 
                and inserting ``40 percent''; and
                    (B) in paragraph (3), by striking ``10 years'' and 
                inserting ``20 years''; and
            (2) in subsection (c)(3)(B), by striking ``10-year'' and 
        inserting ``20-year''.

SEC. 508. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    (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.

    ``(a) In General.--Not later than October 1, 2002, the Secretary 
shall carry out a pilot program in not fewer than 10 geographically 
dispersed States, as determined by the Secretary, to guarantee up to 5 
loans per State in each of fiscal years 2003 through 2006 made by a 
private seller of a farm or ranch to a qualified beginning farmer or 
rancher on a contract land sale basis, if the loan meets applicable 
underwriting criteria and a commercial lending institution agrees to 
serve as escrow agent.
    ``(b) Date of Commencement of Program.--The Secretary shall 
commence the pilot program on making a determination that guarantees of 
contract land sales present a risk that is comparable with the risk 
presented in the case of guarantees to commercial lenders.''.
    (b) Regulations.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        promulgate such regulations as are necessary to implement the 
        amendment made by subsection (a).
            (2) Procedure.--The promulgation of the regulations and 
        administration of the amendment made by subsection (a) shall be 
        made without regard to--
                    (A) the notice and comment provisions of section 
                553 of title 5, United States Code;
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
                    (C) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'').
            (3) Congressional review of agency rulemaking.--In carrying 
        out the amendment made by subsection (a), the Secretary shall 
        use the authority provided under section 808 of title 5, United 
        States Code.

                      Subtitle B--Operating Loans

SEC. 511. DIRECT LOANS.

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

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

    (a) Amount of Guarantee of Loans for Tribal Operations.--Section 
309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1929(h)) is amended--
            (1) in paragraph (4), by striking ``paragraphs (5) and 
        (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
            (2) by adding at the end the following:
            ``(7) Amount of guarantee of loans for tribal operations.--
        In the case of an operating loan made to a 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) Waivers.--
                    ``(A) Tribal farm and ranch 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.
                    ``(B) Other farm and ranch operations.--On a case-
                by-case determination not subject to administrative 
                appeal, the Secretary may grant a borrower a waiver, 1 
                time only for a period of 2 years, of the limitation 
                under paragraph (1)(C) for a direct operating loan if 
                the borrower demonstrates to the satisfaction of the 
                Secretary that--
                            ``(i) the borrower has a viable farm or 
                        ranch operation;
                            ``(ii) the borrower applied for commercial 
                        credit from at least 2 commercial lenders;
                            ``(iii) the borrower was unable to obtain a 
                        commercial loan (including a loan guaranteed by 
                        the Secretary); and
                            ``(iv) the borrower successfully has 
                        completed, or will complete within 1 year, 
                        borrower training under section 359 (from which 
                        requirement the Secretary shall not grant a 
                        waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

SEC. 521. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP 
              LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS.

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

SEC. 522. DEBT SETTLEMENT.

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

SEC. 523. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE 
              COLLECTION AGENCIES.

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

SEC. 524. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.

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

SEC. 525. ANNUAL REVIEW OF BORROWERS.

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

SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

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

SEC. 527. INVENTORY PROPERTY.

    Section 335(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1985(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in clause (i), by striking ``75 days'' 
                        and inserting ``135 days''; and
                            (ii) by adding at the end the following:
                            ``(iv) Combining and dividing of 
                        property.--To the maximum extent practicable, 
                        the Secretary shall maximize the opportunity 
                        for beginning farmers and ranchers to purchase 
                        real property acquired by the Secretary under 
                        this title by combining or dividing inventory 
                        parcels of the property in such manner as the 
                        Secretary determines to be appropriate.''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``75 days'' and inserting 
                        ``135 days''; and
                            (ii) by striking ``75-day period'' and 
                        inserting ``135-day period'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Previous lease.--In the case of real property 
        acquired before April 4, 1996, that the Secretary leased before 
        April 4, 1996, not later than 60 days after the lease expires, 
        the Secretary shall offer to sell the property in accordance 
        with paragraph (1).''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)''; and
                    (B) by adding at the end the following:
                    ``(C) Offer to sell or grant for farmland 
                preservation.--For the purpose of farmland 
                preservation, the Secretary shall--
                            ``(i) in consultation with the State 
                        Conservationist of each State in which 
                        inventory property is located, identify each 
                        parcel of inventory property in the State that 
                        should be preserved for agricultural use; and
                            ``(ii) offer to sell or grant an easement, 
                        restriction, development right, or similar 
                        legal right to each parcel identified under 
                        clause (i) to a State, a political subdivision 
                        of a State, or a private nonprofit organization 
                        separately from the underlying fee or other 
                        rights to the property owned by the United 
                        States.''.

SEC. 528. DEFINITIONS.

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

SEC. 529. LOAN AUTHORIZATION LEVELS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--The Secretary may make or guarantee 
        loans under subtitles A and B from the Agricultural Credit 
        Insurance Fund provided for in section 309 for not more than 
        $3,750,000,000 for each of fiscal years 2002 through 2006, of 
        which, for each fiscal year--
                    ``(A) $750,000,000 shall be for direct loans, of 
                which--
                            ``(i) $200,000,000 shall be for farm 
                        ownership loans under subtitle A; and
                            ``(ii) $550,000,000 shall be for operating 
                        loans under subtitle B; and
                    ``(B) $3,000,000,000 shall be for guaranteed loans, 
                of which--
                            ``(i) $1,000,000,000 shall be for 
                        guarantees of farm ownership loans under 
                        subtitle A; and
                            ``(ii) $2,000,000,000 shall be for 
                        guarantees of operating loans under subtitle 
                        B.''; and
                    (B) in paragraph (2)(A)(ii), by striking ``farmers 
                and ranchers'' and all that follows and inserting 
                ``farmers and ranchers 35 percent for each of fiscal 
                years 2002 through 2006.''; and
            (2) in subsection (c), by striking the last sentence.

SEC. 530. INTEREST RATE REDUCTION PROGRAM.

    Section 351 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1999) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Program.--'' and all that follows 
                through ``The Secretary'' and inserting ``Program.--The 
                Secretary''; and
                    (B) by striking paragraph (2);
            (2) by striking subsection (c) and inserting the following:
    ``(c) Amount of Interest Rate Reduction.--
            ``(1) In general.--In return for a contract entered into by 
        a lender under subsection (b) for the reduction of the interest 
        rate paid on a loan, the Secretary shall make payments to the 
        lender in an amount equal to not more than 100 percent of the 
        cost of reducing the annual rate of interest payable on the 
        loan, except that such payments shall not exceed the cost of 
        reducing the rate by more than--
                    ``(A) in the case of a borrower other than a 
                beginning farmer or rancher, 3 percent; and
                    ``(B) in the case of a beginning farmer or rancher, 
                4 percent.
            ``(2) Beginning farmers and ranchers.--The percentage 
        reduction of the interest rate for which payments are 
        authorized to be made for a beginning farmer or rancher under 
        paragraph (1) shall be 1 percent more than the percentage 
        reduction for farmers and ranchers that are not beginning 
        farmers or ranchers.''; and
            (3) in subsection (e), by striking paragraph (2) and 
        inserting the following:
            ``(2) Maximum amount of funds.--
                    ``(A) In general.--The total amount of funds used 
                by the Secretary to carry out this section for a fiscal 
                year shall not exceed $750,000,000.
                    ``(B) Beginning farmers and ranchers.--
                            ``(i) In general.--The Secretary shall 
                        reserve not less than 25 percent of the funds 
                        used by the Secretary under subparagraph (A) to 
                        make payments for guaranteed loans made to 
                        beginning farmers and ranchers.
                            ``(ii) Duration of reservation of funds.--
                        Funds reserved for beginning farmers or 
                        ranchers under clause (i) for a fiscal year 
                        shall be reserved only until April 1 of the 
                        fiscal year.''.

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

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

SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT.

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

SEC. 533. ANNUAL REVIEW OF BORROWERS.

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

                        Subtitle D--Farm Credit

SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

    (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm Credit 
Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
            (1) by striking clause (iii); and
            (2) by redesignating clause (iv) as clause (iii).
    (b) Other System Banks; Associations.--Section 4.18A of the Farm 
Credit Act of 1971 (12 U.S.C. 2206a) is amended--
            (1) in subsection (a)(1), by striking ``3.11(11)(B)(iv)'' 
        and inserting ``3.11(11)(B)(iii)''; and
            (2) by striking subsection (c).

SEC. 542. BANKS FOR COOPERATIVES.

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

SEC. 543. INSURANCE CORPORATION PREMIUMS.

    (a) Reduction in Premiums for GSE-Guaranteed Loans.--
            (1) In general.--Section 5.55 of the Farm Credit Act of 
        1971 (12 U.S.C. 2277a-4) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``government-guaranteed loans 
                                provided for in subparagraph (C)'' and 
                                inserting ``loans provided for in 
                                subparagraphs (C) and (D)'';
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (C), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(D) the annual average principal outstanding for 
                such year on the guaranteed portions of Government 
                Sponsored Enterprise-guaranteed loans made by the bank 
                that are in accrual status, multiplied by a factor, not 
                to exceed 0.0015, determined by the Corporation at the 
                sole discretion of the Corporation.''; and
                            (ii) by adding at the end the following:
            ``(4) Definition of government sponsored enterprise-
        guaranteed loan.--In this section and sections 1.12(b) and 
        5.56(a), the term `Government Sponsored Enterprise-guaranteed 
        loan' means a loan or credit, or portion of a loan or credit, 
        that is guaranteed by an entity that is chartered by Congress 
        to serve a public purpose and the debt obligations of which are 
        not explicitly guaranteed by the United States, including the 
        Federal National Mortgage Association, the Federal Home Loan 
        Mortgage Corporation, the Federal Home Loan Bank System, and 
        the Federal Agricultural Mortgage Corporation, but not 
        including any other institution of the Farm Credit System.''; 
        and
                    (B) in subsection (e)(4)(B), by striking 
                ``government-guaranteed loans described in subsection 
                (a)(1)(C)'' and inserting ``loans described in 
                subparagraph (C) or (D) of subsection (a)(1)''.
            (2) Conforming amendments.--
                    (A) Section 1.12(b) of the Farm Credit Act of 1971 
                (12 U.S.C. 2020(b)) is amended--
                            (i) in paragraph (1), by inserting ``and 
                        Government Sponsored Enterprise-guaranteed 
                        loans (as defined in section 5.55(a)(4)) 
                        provided for in paragraph (4)'' after 
                        ``government-guaranteed loans (as defined in 
                        section 5.55(a)(3)) provided for in paragraph 
                        (3)'';
                            (ii) in paragraph (2), by striking ``and'' 
                        at the end;
                            (iii) in paragraph (3), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(4) the annual average principal outstanding for such 
        year on the guaranteed portions of Government Sponsored 
        Enterprise-guaranteed loans (as so defined) made by the 
        association, or by the other financing institution and funded 
        by or discounted with the Farm Credit Bank, that are in accrual 
        status, multiplied by the factor, not to exceed 0.0015, 
        determined by the Corporation for the purpose of setting the 
        premium for such guaranteed portions of loans under section 
        5.55(a)(1)(D).''.
                    (B) Section 5.56(a) of the Farm Credit Act of 1971 
                (12 U.S.C. 2277a-5(a)) is amended--
                            (i) in paragraph (1), by inserting ``and 
                        Government Sponsored Enterprise-guaranteed 
                        loans (as defined in section 5.55(a)(4))'' 
                        after ``government-guaranteed loans'';
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraphs (5) and (6), respectively; 
                        and
                            (iii) by inserting after paragraph (3) the 
                        following:
            ``(4) the annual average principal outstanding on the 
        guaranteed portions of Government Sponsored Enterprise-
        guaranteed loans (as defined in section 5.55(a)(4)) that are in 
        accrual status;''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date on which Farm Credit System Insurance Corporation 
premiums are due from insured Farm Credit System banks under section 
5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) for calendar 
year 2001.

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

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

                     Subtitle E--General Provisions

SEC. 551. INAPPLICABILITY OF FINALITY RULE.

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

SEC. 552. TECHNICAL AMENDMENTS.

    (a) Section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)) is amended by striking ``Disaster Relief and 
Emergency Assistance Act'' each place it appears and inserting ``Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.)''.
    (b) Section 336(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1986(b)) is amended in the second sentence by striking 
``provided for in section 332 of this title''.
    (c) Section 359(c)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking 
``established pursuant to section 332,''.
    (d) Section 360(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006b(a)) is amended by striking ``established pursuant 
to section 332''.

SEC. 553. 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) and section 
543(b), this title and the amendments made by this title take effect on 
October 1, 2001.
    (b) Board of Directors of the Federal Agricultural Mortgage 
Corporation.--The amendments made by section 544 take effect on the 
date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

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

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

   ``Subtitle G--National Rural Cooperative and Business Equity Fund

``SEC. 383A. SHORT TITLE.

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

``SEC. 383B. PURPOSE.

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

``SEC. 383C. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authorized private investor.--The term `authorized 
        private investor' means an individual, legal entity, or 
        affiliate or subsidiary of an individual or legal entity that--
                    ``(A) is eligible to receive a loan guarantee under 
                this title;
                    ``(B) is eligible to receive a loan guarantee under 
                the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
                seq.);
                    ``(C) is created under the National Consumer 
                Cooperative Bank Act (12 U.S.C. 3011 et seq.);
                    ``(D) is an insured depository institution subject 
                to section 383E(b)(2);
                    ``(E) is a Farm Credit System institution under the 
                Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or
                    ``(F) is determined by the Fund to be an 
                appropriate investor in the Fund.
            ``(2) Board.--The term `Board' means the board of directors 
        of the Fund established under section 383G.
            ``(3) Fund.--The term `Fund' means the National Rural 
        Cooperative and Business Equity Fund established under section 
        383D.
            ``(4) Group of similar authorized private investors.--The 
        term `group of similar investors' means any 1 of the following:
                    ``(A) Insured depository institutions with total 
                assets of more than $250,000,000.
                    ``(B) Insured depository institutions with total 
                assets equal to or less than $250,000,000.
                    ``(C) Farm Credit System institutions under the 
                Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.).
                    ``(D) Cooperative financial institutions (other 
                than Farm Credit System institutions).
                    ``(E) Private investors, other than those described 
                in subparagraphs (A) through (D), authorized by the 
                Secretary.
                    ``(F) Other nonprofit organizations, including 
                credit unions.
            ``(5) Insured depository institution.--The term `insured 
        depository institution' means any bank or savings association 
        the deposits of which are insured under the Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.).
            ``(6) Rural area.--The term `rural area' means an area that 
        is located--
                    ``(A) outside a standard metropolitan statistical 
                area; or
                    ``(B) within a community that has a population of 
                50,000 inhabitants or less.
            ``(7) Rural business.--The term `rural business' means a 
        rural cooperative, a value-added agricultural enterprise, or 
        any other business located or locating in a rural area.

``SEC. 383D. ESTABLISHMENT.

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

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

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

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

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

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

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

SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended by 
section 601) is amended by adding at the end the following:

            ``Subtitle H--Rural Business Investment Program

``SEC. 384A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Articles.--The term `articles' means articles of 
        incorporation for an incorporated body and the functional 
        equivalent or other similar documents specified by the 
        Secretary for other business entities.
            ``(2) Developmental venture capital.--The term 
        `developmental venture capital' means capital in the form of 
        equity capital investments rural business concerns make with a 
        primary objective of fostering economic development in rural 
        areas.
            ``(3) Employee welfare benefit plan; pension plan.--
                    ``(A) In general.--The terms `employee welfare 
                benefit plan' and `pension plan' have the meanings 
                given the terms in section 3 of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1002).
                    ``(B) Inclusions.--The terms `employee welfare 
                benefit plan' and `pension plan' include--
                            ``(i) public and private pension or 
                        retirement plans subject to this subtitle; and
                            ``(ii) similar plans not covered by this 
                        subtitle that have been established and that 
                        are maintained by the Federal Government or any 
                        State (including by a political subdivision, 
                        agency, or instrumentality of the Federal 
                        Government or a State) for the benefit of 
                        employees.
            ``(4) Equity capital.--The term `equity capital' means 
        common or preferred stock or a similar instrument, including 
        subordinated debt with equity features.
            ``(5) Leverage.--The term `leverage' includes--
                    ``(A) debentures purchased or guaranteed by the 
                Secretary;
                    ``(B) participating securities purchased or 
                guaranteed by the Secretary; and
                    ``(C) preferred securities outstanding as of the 
                date of enactment of this subtitle.
            ``(6) License.--The term `license' means a license issued 
        by the Secretary as provided in section 384I(c).
            ``(7) Limited liability company.--The term `limited 
        liability company' means a business entity that is organized 
        and operating in accordance with a State limited liability 
        company law approved by the Secretary.
            ``(8) Member.--The term `member' means, with respect to a 
        licensee that is a limited liability company, a holder of an 
        ownership interest or a person otherwise admitted to membership 
        in the limited liability company.
            ``(9) Operational assistance.--The term `operational 
        assistance' means management, marketing, and other technical 
        assistance that assists a rural business concern with business 
        development.
            ``(10) Participation agreement.--The term `participation 
        agreement' means an agreement, between the Secretary and a 
        company granted final approval under section 384D(e), that 
        requires the company to make investments in smaller enterprises 
        in rural areas.
            ``(11) Private capital.--
                    ``(A) In general.--The term `private capital' means 
                the sum of--
                            ``(i) the paid-in capital and paid-in 
                        surplus of a corporate licensee, the 
                        contributed capital of the partners of a 
                        partnership licensee, or the equity investment 
                        of the members of a limited liability company 
                        licensee; and
                            ``(ii) unfunded binding commitments, from 
                        investors that meet criteria established by the 
                        Secretary to contribute capital to the 
                        licensee, except that unfunded commitments may 
                        be counted as private capital for purposes of 
                        approval by the Secretary of any request for 
                        leverage, but leverage shall not be funded 
                        based on the commitments.
                    ``(B) Exclusions.--The term `private capital' does 
                not include--
                            ``(i) any funds borrowed by a licensee from 
                        any source;
                            ``(ii) any funds obtained through the 
                        issuance of leverage; or
                            ``(iii) any funds obtained directly or 
                        indirectly from the Federal Government or any 
                        State (including by a political subdivision, 
                        agency, or instrumentality of the Federal 
                        Government or a State), except for--
                                    ``(I) funds from the National Rural 
                                Cooperative and Business Equity Fund, 
                                which shall be considered to be 50 
                                percent Federal funds;
                                    ``(II) funds obtained from the 
                                business revenues (excluding any 
                                governmental appropriation) of any 
                                federally chartered or government-
                                sponsored corporation established prior 
                                to the date of enactment of this 
                                subtitle;
                                    ``(III) funds invested by an 
                                employee welfare benefit plan or 
                                pension plan; and
                                    ``(IV) any qualified nonprivate 
                                funds (if the investors of the 
                                qualified nonprivate funds do not 
                                control, directly or indirectly, the 
                                management, board of directors, general 
                                partners, or members of the licensee).
            ``(12) Qualified nonprivate funds.--The term `qualified 
        nonprivate funds' means any--
                    ``(A) funds directly or indirectly invested in any 
                applicant or licensee on or before the date of 
                enactment of this subtitle, by any Federal agency, 
                other than the Department of Agriculture, under a 
                provision of law explicitly mandating the inclusion of 
                those funds in the definition of the term `private 
                capital'; and
                    ``(B) funds invested in any applicant or licensee 
                by 1 or more entities of any State (including by a 
                political subdivision, agency, or instrumentality of 
                the State and including any guarantee extended by those 
                entities) in an aggregate amount that does not exceed 
                33 percent of the private capital of the applicant or 
                licensee.
            ``(13) Rural area.--
                    ``(A) In general.--The term `rural area' means a 
                city, town, or unincorporated area with a population of 
                50,000 inhabitants or less.
                    ``(B) Exclusion.--The term `rural area' does not 
                include an urbanized area immediately adjacent to a 
                city, town, or unincorporated area with a population of 
                50,000 inhabitants or less.
            ``(14) Rural business concern.--The term `rural business 
        concern' means--
                    ``(A) a public, private, or cooperative for-profit 
                or nonprofit organization;
                    ``(B) a for-profit or nonprofit business controlled 
                by an Indian tribe on a Federal or State reservation or 
                other federally recognized Indian tribal group; or
                    ``(C) any other person;
        that primarily operates in a rural area, as determined by the 
        Secretary.
            ``(15) Rural business investment company.--The term `Rural 
        Business Investment Company' means a company that--
                    ``(A) has been granted final approval by the 
                Secretary under section 384D(e); and
                    ``(B) has entered into a participation agreement 
                with the Secretary.
            ``(16) Smaller enterprise.--The term `smaller enterprise' 
        means any rural business concern that, together with its 
        affiliates--
                    ``(A) has--
                            ``(i) a net financial worth of not more 
                        than $6,000,000, as of the date on which 
                        assistance is provided under this subtitle to 
                        that rural business concern; and
                            ``(ii) an average net income for the 2-year 
                        period preceding the date on which assistance 
                        is provided under this subtitle to that rural 
                        business concern, of not more than $2,000,000, 
                        after Federal income taxes (excluding any 
                        carryover losses) except that, for purposes of 
                        this clause, if the rural business concern is 
                        not required by law to pay Federal income taxes 
                        at the enterprise level, but is required to 
                        pass income through to the shareholders, 
                        partners, beneficiaries, or other equitable 
                        owners of the business concern, the net income 
                        of the business concern shall be determined by 
                        allowing a deduction in an amount equal to the 
                        sum of--
                                    ``(I) if the rural business concern 
                                is not required by law to pay State 
                                (and local, if any) income taxes at the 
                                enterprise level, the net income 
                                (determined without regard to this 
                                clause), multiplied by the marginal 
                                State income tax rate (or by the 
                                combined State and local income tax 
                                rates, as applicable) that would have 
                                applied if the business concern were a 
                                corporation; and
                                    ``(II) the net income (so 
                                determined) less any deduction for 
                                State (and local) income taxes 
                                calculated under subclause (I), 
                                multiplied by the marginal Federal 
                                income tax rate that would have applied 
                                if the rural business concern were a 
                                corporation; or
                    ``(B) satisfies the standard industrial 
                classification size standards established by the 
                Administrator of the Small Business Administration for 
                the industry in which the rural business concern is 
                primarily engaged.
            ``(17) State.--The term `State' means each of the States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, and any territory or possession of the United 
        States.

``SEC. 384B. PURPOSES.

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

``SEC. 384C. ESTABLISHMENT.

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

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

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a Rural Business Investment Company, in the program 
established under this subtitle if--
            ``(1) the company is a newly formed for-profit entity or a 
        newly formed for-profit subsidiary of such an entity;
            ``(2) the company has a management team with experience in 
        community development financing or relevant venture capital 
        financing; and
            ``(3) the company will invest in enterprises that will 
        create wealth and job opportunities in rural areas, with an 
        emphasis on smaller businesses.
    ``(b) Application.--To participate, as a Rural Business Investment 
Company, in the program established under this subtitle, a company 
meeting the eligibility requirements of subsection (a) shall submit an 
application to the Secretary that includes--
            ``(1) a business plan describing how the company intends to 
        make successful developmental venture capital investments in 
        identified rural areas;
            ``(2) information regarding the community development 
        finance or relevant venture capital qualifications and general 
        reputation of the management of the company;
            ``(3) a description of how the company intends to work with 
        community organizations and to seek to address the unmet 
        capital needs of the communities served;
            ``(4) a proposal describing how the company intends to use 
        the grant funds provided under this subtitle to provide 
        operational assistance to smaller enterprises financed by the 
        company, including information regarding whether the company 
        intends to use licensed professionals, when necessary, on the 
        staff of the company or from an outside entity;
            ``(5) with respect to binding commitments to be made to the 
        company under this subtitle, an estimate of the ratio of cash 
        to in-kind contributions;
            ``(6) a description of the criteria to be used to evaluate 
        whether and to what extent the company meets the objectives of 
        the program established under this subtitle;
            ``(7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the business plan of the company; 
        and
            ``(8) such other information as the Secretary may require.
    ``(c) Issuance of License.--
            ``(1) Submission of application.--Each applicant for a 
        license to operate as a Rural Business Investment Company under 
        this subtitle shall submit to the Secretary an application, in 
        a form and including such documentation as may be prescribed by 
        the Secretary.
            ``(2) Procedures.--
                    ``(A) Status.--Not later than 90 days after the 
                initial receipt by the Secretary of an application 
                under this subsection, the Secretary shall provide the 
                applicant with a written report describing the status 
                of the application and any requirements remaining for 
                completion of the application.
                    ``(B) Approval or disapproval.--Within a reasonable 
                time after receiving a completed application submitted 
                in accordance with this subsection and in accordance 
                with such requirements as the Secretary may prescribe 
                by regulation, the Secretary shall--
                            ``(i) approve the application and issue a 
                        license for the operation to the applicant, if 
                        the requirements of this section are satisfied; 
                        or
                            ``(ii) disapprove the application and 
                        notify the applicant in writing of the 
                        disapproval.
            ``(3) Matters considered.--In reviewing and processing any 
        application under this subsection, the Secretary--
                    ``(A) shall determine whether--
                            ``(i) the applicant meets the requirements 
                        of subsections (d) and (e); and
                            ``(ii) the management of the applicant is 
                        qualified and has the knowledge, experience, 
                        and capability necessary to comply with this 
                        subtitle;
                    ``(B) shall take into consideration--
                            ``(i) the need for and availability of 
                        financing for rural business concerns in the 
                        geographic area in which the applicant is to 
                        commence business;
                            ``(ii) the general business reputation of 
                        the owners and management of the applicant; and
                            ``(iii) the probability of successful 
                        operations of the applicant, including adequate 
                        profitability and financial soundness; and
                    ``(C) shall not take into consideration any 
                projected shortage or unavailability of leverage.
    ``(d) Approval; Designation.--The Secretary may approve an 
applicant to operate as a Rural Business Investment Company under this 
subtitle and designate the applicant as such a company, if--
            ``(1) the Secretary determining the application satisfies 
        the requirements of subsection (b); and
            ``(2) the area in which the company is to conduct its 
        operations, and the establishment of branch offices or agencies 
        (if authorized by the articles), are approved by the Secretary; 
        and
            ``(3) the applicant enters into a participation agreement 
        with the Secretary.

``SEC. 384E. DEBENTURES.

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

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

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

``SEC. 384G. FEES.

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

``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--
            ``(1) Authority.--In accordance with this section, the 
        Secretary may make grants to Rural Business Investment 
        Companies and to other entities, as authorized by this 
        subtitle, to provide operational assistance to smaller 
        enterprises financed, or expected to be financed, by the 
        entities.
            ``(2) Terms.--Grants made under this subsection shall be 
        made over a multiyear period (not to exceed 10 years) under 
        such other terms as the Secretary may require.
            ``(3) Use of funds.--The proceeds of a grant made under 
        this paragraph may be used by the company receiving the grant 
        only to--
                    ``(A) provide operational assistance in connection 
                with an equity investment (made with capital raised 
                after the effective date of this subtitle) in a 
                business located in a rural area; or
                    ``(B) pay operational expenses of the company.
            ``(4) Submission of plans.--A Rural Business Investment 
        Company shall be eligible for a grant under this section only 
        if the company submits to the Secretary, in such form and 
        manner as the Secretary may require, a plan for use of the 
        grant.
            ``(5) Grant amount.--
                    ``(A) Rural business investment companies.--The 
                amount of a grant made under this subsection to a Rural 
                Business Investment Company shall be equal to the 
                lesser of--
                            ``(i) 50 percent of the amount of resources 
                        (in cash or in kind) raised by the company; or
                            ``(ii) $1,000,000.
                    ``(B) Other entities.--The amount of a grant made 
                under this subsection to any entity other than a Rural 
                Business Investment Company shall be equal to the 
                resources (in cash or in kind) raised by the entity in 
                accordance with the requirements applicable to Rural 
                Business Investment Companies under this subtitle.
    ``(b) Supplemental Grants.--
            ``(1) In general.--The Secretary may make supplemental 
        grants to Rural Business Investment Companies and to other 
        entities, as authorized by this subtitle under such terms as 
        the Secretary may require, to provide additional operational 
        assistance to smaller enterprises financed, or expected to be 
        financed, by the Rural Business Investment Companies and other 
        entities.
            ``(2) Matching requirement.--The Secretary may require, as 
        a condition of any supplemental grant made under this 
        subsection, that the company or entity receiving the grant 
        provide from resources (in cash or in kind), other than 
        resources provided by the Secretary, a matching contribution 
        equal to the amount of the supplemental grant.

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

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

``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

    ``(a) In General.--Except as provided in subsection (b) and 
notwithstanding any other provision of law, any national bank, any 
member bank of the Federal Reserve System, any Federal savings 
association, and (to the extent permitted under applicable State law) 
any insured bank that is not a member of the Federal Reserve System, 
may invest in any Rural Business Investment Company or in any entity 
established to invest solely in Rural Business Investment Companies.
    ``(b) Limitation.--No bank or association described in subsection 
(a) may make investments described in subsection (a) that are greater 
than 5 percent of the capital and surplus of the bank or association.

``SEC. 384K. REPORTING REQUIREMENT.

    ``Each Rural Business Investment Company that participates in the 
program established under this subtitle shall provide to the Secretary 
such information as the Secretary may require, including--
            ``(1) information relating to the measurement criteria that 
        the company proposed in the program application of the company; 
        and
            ``(2) in each case in which the company under this subtitle 
        makes an investment in, or a loan or grant to, a business that 
        is not located in a rural area, a report on the number and 
        percentage of employees of the business who reside in those 
        areas.

``SEC. 384L. EXAMINATIONS.

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

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

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

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

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

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

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

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

    ``Using the procedures for removing or suspending a director or an 
officer of a licensee established by the Secretary, the Secretary may 
remove or suspend any director or officer of any Rural Business 
Investment Company.

``SEC. 384Q. REGULATIONS.

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

``SEC. 384R. FUNDING.

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

SEC. 603. FULL FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
              APPLICATIONS.

    (a) Definition of Application.--In this section, the term 
``application'' does not include an application for a loan, loan 
guarantee, or grant that, as of the date of enactment of this Act, is 
in the preapplication phase of consideration under regulations of the 
Secretary of Agriculture in effect on the date of enactment of this 
Act.
    (b) Account.--There is established in the Treasury of the United 
States an account to be known as the ``Rural America Infrastructure 
Development Account'' (referred to in this section as the ``Account'') 
to fund rural development loans, loan guarantees, and grants described 
in subsection (d) that are pending on the date of enactment of this 
Act.
    (c) Funding.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary of Agriculture such sums as are 
        necessary to carry out this section, to remain available until 
        expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.
    (d) Use of Funds.--
            (1) Eligible programs.--Subject to paragraph (2), the 
        Secretary shall use the funds in the Account to provide funds 
        for applications that are pending on the date of enactment of 
        this Act for--
                    (A) community facility direct loans under section 
                306(a)(1) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1926(a)(1));
                    (B) community facility grants under paragraph (19), 
                (20), or (21) of section 306(a) of that Act (7 U.S.C. 
                1926(a));
                    (C) water or waste disposal grants or direct loans 
                under paragraph (1) or (2) of section 306(a) of that 
                Act (7 U.S.C. 1926(a));
                    (D) rural water or wastewater technical assistance 
                and training grants under section 306(a)(14) of that 
                Act (7 U.S.C. 1926(a)(14));
                    (E) business and industry guaranteed loans 
                authorized under section 310B(a)(1)(A) of that Act (7 
                U.S.C. 1932(a)(1)(A)); 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. 604. RURAL ENDOWMENT PROGRAM.

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

                 ``Subtitle I--Rural Endowment Program

``SEC. 385A. PURPOSE.

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

``SEC. 385B. DEFINITIONS.

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

``SEC. 385C. RURAL ENDOWMENT PROGRAM.

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

``SEC. 385D. FEDERAL INTERAGENCY WORKING GROUP ON RURAL DEVELOPMENT.

    ``(a) In General.--There is established an interagency working 
group to be known as the `Federal Interagency Working Group on Rural 
Development'.
    ``(b) Composition.--The Federal Interagency Working Group shall be 
composed of the following agency heads or their designees:
            ``(1) The Secretary of Agriculture.
            ``(2) The Secretary of Commerce.
            ``(3) The Secretary of Defense.
            ``(4) The Secretary of Education.
            ``(5) The Secretary of Energy.
            ``(6) The Secretary of Health and Human Services.
            ``(7) The Secretary of Housing and Urban Development.
            ``(8) The Secretary of the Interior.
            ``(9) The Attorney General.
            ``(10) The Secretary of Labor.
            ``(11) The Secretary of Transportation.
            ``(12) The Secretary of the Treasury.
            ``(13) The Administrator of the Environmental Protection 
        Agency.
            ``(14) The Administrator of the Small Business 
        Administration.
            ``(15) The Chairman of the Federal Communications 
        Commission.
            ``(16) The Chairman of the National Endowment for the Arts.
    ``(c) Duties.--The Federal Interagency Working Group shall--
            ``(1) advise the President, the Secretary, and Congress on 
        matters relating to rural development policy;
            ``(2) oversee coordination by the field offices of agencies 
        represented on the Federal Interagency Working Group of 
        technical assistance to recipients of endowment grants under 
        section 385C(d); and
            ``(3) submit to the President and Congress reports on 
        matters relating to rural development policy that, in the 
        judgment of the Federal Interagency Working Group, require 
        action by the President or Congress.
    ``(d) Coordination.--The Secretary shall convene meetings and 
coordinate the work of the Federal Interagency Working Group.

``SEC. 385E. FUNDING.

    ``(a) In General.--The Secretary shall use $265,000,000 of funds of 
the Commodity Credit Corporation to carry out this subtitle.
    ``(b) Schedule for Obligations.--Of the amounts made available 
under subsection (a)--
            ``(1) not more than $5,000,000 for fiscal year 2002 shall 
        be used to carry out section 385C(d);
            ``(2) not less than $250,000,000 for the period of fiscal 
        years 2003 and 2004 shall be used to carry out section 385C(f); 
        and
            ``(3) not less than $2,000,000 for each of fiscal years 
        2002 through 2006 shall be used to carry out section 
        385C(h).''.

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

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

                   ``TITLE VI--RURAL BROADBAND ACCESS

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

    ``(a) Purpose.--The purpose of this section is to provide grants, 
loans, and other extensions of credit to provide funds for the costs of 
the construction, improvement, and acquisition of facilities and 
equipment for broadband service in eligible rural communities.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        means any technology identified by the Secretary as having the 
        capacity to transmit data to enable a subscriber to the service 
        to originate and receive high-quality voice, data, graphics, or 
        video.
            ``(2) Eligible rural community.--The term `eligible rural 
        community' means any incorporated or unincorporated place 
        that--
                    ``(A) has not more than 20,000 inhabitants, based 
                on the most recent available population statistics of 
                the Bureau of the Census; and
                    ``(B) is not located in an area designated as a 
                Metropolitan Area by the Office of Management and 
                Budget.
    ``(c) Grants.--The Secretary shall make grants to eligible entities 
described in subsection (e)(1) to provide funds for the construction, 
improvement, or acquisition of facilities and equipment (including 
consumer equipment) for the provision of broadband service in eligible 
rural communities.
    ``(d) Loans and Other Extensions of Credit.--The Secretary shall 
make loans or other extensions of credit to eligible entities described 
in subsection (e)(2) to provide funds for the construction, 
improvement, or acquisition of facilities and equipment (including 
consumer equipment) for the provision of broadband service in eligible 
rural communities.
    ``(e) Eligible Entities.--
            ``(1) Grants.--To be eligible to obtain a grant under this 
        section, an entity must--
                    ``(A) be a nonprofit entity;
                    ``(B) be eligible to obtain a loan to furnish, 
                improve, or extend a rural telecommunications service 
                under this Act; and
                    ``(C) submit to the Secretary a proposal for a 
                project that meets the requirements of subsection (g).
            ``(2) Loans and extensions of credit.--To be eligible to 
        obtain a loan or extension of credit under this section, an 
        entity must--
                    ``(A) be eligible to obtain a loan to furnish, 
                improve, or extend a rural telecommunications service 
                under this Act; and
                    ``(B) submit to the Secretary a proposal for a 
                project that meets the requirements of subsection (g).
    ``(f) Broadband Service.--The Secretary shall, from time to time as 
advances in technology warrant, review and recommend modifications of 
rate-of-data transmission criteria for purposes of the identification 
of broadband service technologies under subsection (b)(1).
    ``(g) Technological Neutrality.--For purposes of determining 
whether or not to make a grant, loan, or other extension of credit for 
a project under this section, the Secretary shall not take into 
consideration the type of technology proposed to be used under the 
project.
    ``(h) Terms and Conditions for Loans and Extensions of Credit.--A 
loan or other extension of credit under subsection (d) shall--
            ``(1) be made available in accordance with the requirements 
        of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
        seq.);
            ``(2) bear interest at an annual rate of, as determined by 
        the Secretary--
                    ``(A) 4 percent per annum; or
                    ``(B) the current applicable market rate; and
            ``(3) have a term not to exceed the useful life of the 
        assets constructed, improved, or acquired with the proceeds of 
        the loan or extension of credit.
    ``(i) Use of Loan Proceeds to Refinance Loans for Deployment of 
Broadband Service.--Notwithstanding any other provision of this Act, 
the proceeds of any loan made by the Secretary under this Act may be 
used by the recipient of such loan for the purpose of refinancing an 
outstanding obligation of the recipient on another loan if the use of 
such proceeds for that purpose will further the construction, 
improvement, or acquisition of facilities and equipment (including 
consumer equipment) for the provision of broadband service in eligible 
rural communities.
    ``(j) Inapplicability of Administrative Provisions.--Except as 
otherwise provided in this section, the provisions of titles I, II, and 
III shall not apply with respect to the making of grants, loans, or 
other extensions of credit under this section.
    ``(k) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2002, and each October 
        1 thereafter through October 1, 2005, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $100,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.
            ``(3) Allocation of funds.--
                    ``(A) In general.--From amounts made available for 
                each fiscal year under paragraph (1), the Secretary 
                shall make grants, loans, and extensions of credit to 
                eligible entities in States using--
                            ``(i) reserves established for the fiscal 
                        year under subparagraph (B); and
                            ``(ii) any amounts that are made available 
                        for the fiscal year under subparagraph (C).
                    ``(B) Reserves.--
                            ``(i) In general.--Subject to subparagraph 
                        (C), the Secretary shall establish a reserve 
                        for each State for each fiscal year under 
                        paragraph (1) for making grants, loans, and 
                        extensions of credit to eligible entities in 
                        the State.
                            ``(ii) Amount.--The amount of a reserve 
                        established for a State for a fiscal year under 
                        clause (i) shall bear the same ratio to 
                        reserves established for all States for the 
                        fiscal year as the number of communities with a 
                        population of 2,500 inhabitants or less in the 
                        State bears to the number of communities with a 
                        population of 2,500 inhabitants or less in all 
                        States, as determined on the basis of the last 
                        available census.
                    ``(C) Unobligated amounts.--Any amounts in the 
                reserve established for a State for a fiscal year under 
                subparagraph (B) that are not obligated by July 1 of 
                the fiscal year shall be available to the Secretary to 
                make grants, loans, and extensions of credit under this 
                section to eligible entities in any State, as 
                determined by the Secretary.
            ``(4) Applicability of other laws.--For the purposes of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.), this 
        subsection shall be treated as if enacted in an Act of 
        appropriation.
    ``(l) Termination of authority.--
            ``(1) In general.--No grant, loan, or other extension of 
        credit may be made under this section after September 30, 2006.
            ``(2) Effect on validity of grant, loan, or extension of 
        credit.--Notwithstanding paragraph (1), any grant, loan, or 
        extension of credit made under this section before the date 
        specified in paragraph (1) shall be valid.''.
    (b) Assistance for Rural Public Television Stations for High-Speed 
Telecommunications Services and Educational Programming.--Section 2333 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
950aaa-2) is amended by adding at the end the following:
    ``(j) High-Speed Telecommunications Services and Educational 
Programming Through Public Television Stations.--
            ``(1) In general.--In addition to any other financial 
        assistance provided under this title, the Secretary may provide 
        financial assistance under this title to public television 
        stations serving rural areas in order to permit such public 
        television stations--
                    ``(A) to provide high-speed telecommunications 
                services to schools and communities in rural areas; and
                    ``(B) to provide educational programming to such 
                schools and communities.
            ``(2) Requirements.--The Secretary shall establish 
        requirements for eligibility for financial assistance under 
        this subsection, including requirements regarding the 
        telecommunications services and educational programming to be 
        provided using such assistance.''.
    (c) Streamlining Access to Local Television.--
            (1) Approval of loan guarantees.--Section 1004 of the 
        Launching Our Communities' Access to Local Television Act of 
        2000 (47 U.S.C. 1103) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by striking ``section 5'' and 
                                inserting ``section 1005''; and
                                    (II) by striking ``section 11'' and 
                                inserting ``section 1011'';
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraph (D); 
                                and
                                    (II) by redesignating subparagraphs 
                                (E) and (F) as subparagraphs (D) and 
                                (E), respectively;
                            (iii) in paragraph (3)--
                                    (I) by striking subparagraph (A); 
                                and
                                    (II) in subparagraph (B), by 
                                striking ``(B)'';
                    (B) by striking subsection (c);
                    (C) by redesignating subsections (d) through (k) as 
                subsections (c) through (j), respectively;
                    (D) in subsection (c) (as redesignated by 
                subparagraph (C))--
                            (i) in paragraph (1)--
                                    (I) by striking ``subsection (g)'' 
                                and inserting ``subsection (f)''; and
                                    (II) by striking ``section 3'' and 
                                inserting ``section 1003'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (D)(iii), by 
                                inserting ``(other than the Federal 
                                Financing Bank)'' after ``governmental 
                                entity''; and
                                    (II) in subparagraph (F), by 
                                striking ``subsection (g)'' and 
                                inserting ``subsection (f)''; and
                            (iii) in paragraph (3)(B)(iii), by striking 
                        ``(the'' and all that follows through ``the 
                        applicant'';
                    (E) in subsection (e)(2) (as redesignated by 
                subparagraph (C))--
                            (i) by striking ``80 percent'' each place 
                        it appears and inserting ``90 percent''; and
                            (ii) by striking ``subsection (d)(2)(A)'' 
                        and inserting ``subsection (c)(2)(A)''; and
                    (F) in subsection (g)(2)(D) (as redesignated by 
                subparagraph (C))--
                            (i) in the first sentence, by striking 
                        ``section 5'' and inserting ``section 1005''; 
                        and
                            (ii) in the third sentence, by striking 
                        ``subsection (d)(2)(E) of this section'' and 
                        inserting ``subsection (c)(2)(E)''; and
                    (G) in subsection (j) (as redesignated by 
                subparagraph (C)), by striking ``subsection (j)'' and 
                inserting ``subsection (i)''.
            (2) Administration of loan guarantees.--Section 1005 of the 
        Launching Our Communities' Access to Local Television Act of 
        2000 (47 U.S.C. 1104) is amended--
                    (A) in subsection (a), by striking ``sections 3 and 
                4'' and inserting ``sections 1003 and 1004'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)(D), by striking 
                        ``section 6(a)(2)'' and inserting ``section 
                        1006(a)(2)'';
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraph (B); 
                                and
                                    (II) by redesignating subparagraph 
                                (C) as subparagraph (B); and
                            (iii) in paragraph (3)--
                                    (I) by striking ``superior'' and 
                                inserting ``equal''; and
                                    (II) by striking ``section 
                                4(d)(3)(B)(iii)'' and inserting 
                                ``1004(d)(3)(B)(iii)'';
                    (C) by striking subsections (d) and (o);
                    (D) by redesignating subsections (e) through (n) 
                and (p) as subsections (d) through (m) and (n), 
                respectively;
                    (E) in subsection (d)(3) (as redesignated by 
                subparagraph (D)), by striking ``section 4(g)'' and 
                inserting ``section 1004(g)'';
                    (F) by striking subsection (e) (as redesignated by 
                subparagraph (D)) and inserting the following:
    ``(e) Penalty.--The Administrator may assess against and collect 
from an applicant for a loan guarantee under this Act for a project 
covered by section 1004(e)(1) a penalty not to exceed 3 times the 
interest due on the guaranteed loan of the applicant under this Act if 
the applicant has acted in a manner that willfully defrauds the Federal 
Government.''; and
                    (G) in subsection (m) (as redesignated by 
                subparagraph (D))--
                            (i) in paragraph (1), by striking ``The 
                        Board'' and inserting ``To the extent 
                        appropriations are not made available to pay 
                        administrative costs under this Act, the 
                        Board''; and
                            (ii) in paragraph (3), by striking 
                        subparagraph (C) and inserting the following:
                    ``(C) Limitation on fees.--The aggregate amount of 
                fees imposed by this subsection shall not exceed the 
                lesser of--
                            ``(i) the actual amount of administrative 
                        costs under this Act; or
                            ``(ii) \1/10\ of 1 percent of the amount of 
                        the loan guarantee.''.
            (3) Definitions.--Section 1010 of the Launching Our 
        Communities' Access to Local Television Act of 2000 (47 U.S.C. 
        1108) is amended--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively; and
                    (C) in paragraph (3), by striking ``paragraphs (1) 
                through (3)'' and inserting ``paragraphs (1) and (2)''.
    (d) Funds for Loan Guarantees for Access To Local Television in 
Nonserved and Underserved Areas.--
            (1) In general.--On January 1, 2002, out of the funds in 
        the Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture 
        $75,000,000 to pay the costs of guaranteeing loans under the 
        Launching Our Communities' Access to Local Television Act of 
        2000 (47 U.S.C. 1101 et seq.), to remain available until 
        expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.
            (3) Applicability of other laws.--For the purposes of the 
        Launching Our Communities' Access to Local Television Act of 
        2000 (47 U.S.C. 1101 et seq.) and the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a et seq.), this subsection shall be 
        treated as if enacted in an Act of appropriation.

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

    Section 231 of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1621 note; Public Law 106-224) is amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively;
            (2) by striking subsection (a) and inserting the following:
    ``(a) Definition of Value-Added Agricultural Product.--The term 
`value-added agricultural product' means any agricultural commodity or 
product that--
            ``(1) has undergone a greater level of processing; and
            ``(2) as a result of the greater level of processing--
                    ``(A) the customer base for the agricultural 
                commodity or product has been expanded; and
                    ``(B) a greater portion of the revenue derived from 
                the processing of the agricultural commodity or product 
                is available to the producer of the commodity or 
                product.
    ``(b) Grant Program.--
            ``(1) Purposes.--The purposes of this subsection are--
                    ``(A) to increase the share of the food and 
                agricultural system profit received by agricultural 
                producers;
                    ``(B) to increase the number and quality of rural 
                self-employment opportunities in agriculture and 
                agriculturally-related businesses and the number and 
                quality of jobs in agriculturally-related businesses;
                    ``(C) to help maintain a diversity of size in farms 
                and ranches by stabilizing the number of small and mid-
                sized farms;
                    ``(D) to increase the diversity of food and other 
                agricultural products available to consumers, including 
                nontraditional crops and products and products grown or 
                raised in a manner that enhances the value of the 
                products to the public;
                    ``(E) to conserve and enhance the quality of land, 
                water, and energy resources, wildlife habitat, and 
                other landscape values and amenities in rural areas.
            ``(2) Authorization for grants.--For each of fiscal years 
        2002 through 2006, the Secretary shall use $75,000,000 of the 
        funds of the Commodity Credit Corporation to award competitive 
        grants--
                    ``(A) to an eligible independent producer (as 
                determined by the Secretary) of a value-added 
                agricultural product to assist the producer--
                            ``(i) to develop a business plan for viable 
                        marketing opportunities for the value-added 
                        agricultural product; or
                            ``(ii) to develop strategies that are 
                        intended to create marketing opportunities for 
                        the producer; and
                    ``(B) to an eligible nonprofit entity (as 
                determined by the Secretary) to assist the entity--
                            ``(i) to develop a business plan for viable 
                        marketing opportunities in emerging markets for 
                        a value-added agricultural product; or
                            ``(ii) to develop strategies that are 
                        intended to create marketing opportunities in 
                        emerging markets for the value-added 
                        agricultural product.
            ``(3) Amount of grant.--
                    ``(A) In general.--The total amount provided under 
                this subsection to a grant recipient may not exceed 
                $500,000.
                    ``(B) Limitation.--The Secretary shall, to the 
                extent practicable, make not less than \2/3\ of the 
                grants under this subsection in an amount not to exceed 
                $200,000.
            ``(4) Grantee strategies.--A grantee under paragraph (2) 
        shall use the grant--
                    ``(A) to develop a business plan or perform a 
                feasibility study to establish a viable marketing 
                opportunity for a value-added agricultural product; or
                    ``(B) to provide capital to establish alliances or 
                business ventures that allow the producer of the value-
                added agricultural product to better compete in 
                domestic or international markets.
            ``(5) Grants for marketing or processing certified organic 
        agricultural products.--
                    ``(A) In general.--Out of any amount that is made 
                available to the Secretary for a fiscal year under 
                paragraph (2), the Secretary shall use not less than 5 
                percent of the amount for grants to assist producers of 
                certified organic agricultural products in post-farm 
                marketing or processing of the products through a 
                business or cooperative ventures that--
                            ``(i) expand the customer base of the 
                        certified organic agricultural products; and
                            ``(ii) increase the portion of product 
                        revenue available to the producers.
                    ``(B) Certified organic agricultural product.--For 
                the purposes of this paragraph, a certified organic 
                agricultural product does not have to meet the 
                requirements of the definition of `value-added 
                agricultural product' under subsection (a).
                    ``(C) Unobligated amounts.--Any amounts made 
                available under subparagraph (A) that are not obligated 
                by July 1 of the fiscal year shall be available to the 
                Secretary to make grants under paragraph (2).'';
            (3) in subsection (c) (as redesignated)--
                    (A) by striking ``subsection (a)(2)'' and inserting 
                ``subsection (b)(2)'';
                    (B) by striking ``$5,000,000'' and inserting ``7.5 
                percent''; and
                    (C) by striking ``subsection (a)'' and inserting 
                ``subsection (b)''; and
            (4) in subsection (d) (as redesignated), by striking 
        ``subsections (a) and (b)'' and inserting ``subsections (b) and 
        (c)''.

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

``SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ``(a) Definitions.--In this section:
            ``(1) Agency with rural responsibilities.--The term `agency 
        with rural responsibilities' means any executive agency (as 
        defined in section 105 of title 5, United States Code) that--
                    ``(A) implements Federal law targeted at rural 
                areas, including--
                            ``(i) the Act of April 24, 1950 (commonly 
                        known as the `Granger-Thye Act') (64 Stat. 82, 
                        chapter 9);
                            ``(ii) the Intergovernmental Cooperation 
                        Act of 1968 (82 Stat. 1098);
                            ``(iii) section 41742 of title 49, United 
                        States Code;
                            ``(iv) the Rural Development Act of 1972 
                        (86 Stat. 657);
                            ``(v) the Rural Development Policy Act of 
                        1980 (94 Stat. 1171);
                            ``(vi) the Rural Electrification Act of 
                        1936 (7 U.S.C. 901 et seq.);
                            ``(vii) amendments made to section 334 of 
                        the Public Health Service Act (42 U.S.C. 254g) 
                        by the Rural Health Clinics Act of 1983 (97 
                        Stat. 1345); and
                            ``(viii) the Rural Housing Amendments of 
                        1983 (97 Stat. 1240) and the amendments made by 
                        the Rural Housing Amendments of 1983 to title V 
                        of the Housing Act of 1949 (42 U.S.C. 1471 et 
                        seq.); or
                    ``(B) administers a program that has a significant 
                impact on rural areas, including--
                            ``(i) the Appalachian Regional Commission;
                            ``(ii) the Department of Agriculture;
                            ``(iii) the Department of Commerce;
                            ``(iv) the Department of Defense;
                            ``(v) the Department of Education;
                            ``(vi) the Department of Energy;
                            ``(vii) the Department of Health and Human 
                        Services;
                            ``(viii) the Department of Housing and 
                        Urban Development;
                            ``(ix) the Department of the Interior;
                            ``(x) the Department of Justice;
                            ``(xi) the Department of Labor;
                            ``(xii) the Department of Transportation;
                            ``(xiii) the Department of the Treasury;
                            ``(xiv) the Department of Veterans Affairs;
                            ``(xv) the Environmental Protection Agency;
                            ``(xvi) the Federal Emergency Management 
                        Administration;
                            ``(xvii) the Small Business Administration;
                            ``(xviii) the Social Security 
                        Administration;
                            ``(xix) the Federal Reserve System;
                            ``(xx) the United States Postal Service;
                            ``(xxi) the Corporation for National 
                        Service;
                            ``(xxii) the National Endowment for the 
                        Arts and the National Endowment for the 
                        Humanities; and
                            ``(xxiii) other agencies, commissions, and 
                        corporations.
            ``(2) Coordinating committee.--The term `Coordinating 
        Committee' means the National Rural Development Coordinating 
        Committee established by subsection (c).
            ``(3) Partnership.--The term `Partnership' means the 
        National Rural Development Partnership 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; and
                    ``(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.
            ``(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) notwithstanding any other provision of law, 
                review and comment on policies, regulations, and 
                proposed legislation that affect or would affect rural 
                areas;
                    ``(F) provide technical assistance to State rural 
                development councils for the implementation of Federal 
                programs;
                    ``(G) notwithstanding any other provision of law, 
                develop and facilitate strategies to reduce or 
                eliminate administrative and regulatory impediments; 
                and
                    ``(H) require each State receiving funds under this 
                section to submit an annual report on the use of the 
                funds by the State, including a description of 
                strategic plans, goals, performance measures, and 
                outcomes for the State rural development council of the 
                State.
            ``(4) Election not to participate.--An agency with rural 
        responsibilities that elects not to participate in the 
        Partnership and the Coordinating Committee shall submit to 
        Congress a report that describes--
                    ``(A) how the programmatic responsibilities of the 
                Federal agency that target or have an impact on rural 
                areas are better achieved without participation by the 
                agency in the Partnership; and
                    ``(B) a more effective means of partnership-
                building and collaboration to achieve the programmatic 
                responsibilities of the agency.
    ``(d) State Rural Development Councils.--
            ``(1) Establishment.--Notwithstanding chapter 63 of title 
        31, United States Code, each State may elect to participate in 
        the Partnership by entering into an agreement with the 
        Secretary to establish a State rural development council.
            ``(2) State diversity.--Each State rural development 
        council shall--
                    ``(A) have a nonpartisan membership that is broad 
                and representative of the economic, social, and 
                political diversity of the State; and
                    ``(B) carry out programs and activities in a manner 
                that reflects the diversity of the State.
            ``(3) Duties.--A State rural development council shall--
                    ``(A) facilitate collaboration among Federal, 
                State, local, and tribal governments and the private 
                and nonprofit sectors in the planning and 
                implementation of programs and policies that target or 
                have an impact on rural areas of the State;
                    ``(B) enhance the effectiveness, responsiveness, 
                and delivery of Federal and State programs in rural 
                areas of the State;
                    ``(C) gather and provide to the Coordinating 
                Committee and other appropriate organizations 
                information on the condition of rural areas in the 
                State;
                    ``(D) monitor and report on policies and programs 
                that address, or fail to address, the needs of the 
                rural areas of the State;
                    ``(E) provide comments to the Coordinating 
                Committee and other appropriate organizations on 
                policies, regulations, and proposed legislation that 
                affect or would affect the rural areas of the State;
                    ``(F) notwithstanding any other provision of law, 
                in conjunction with the Coordinating Committee, 
                facilitate the development of strategies to reduce or 
                eliminate conflicting or duplicative administrative or 
                regulatory requirements of Federal, State, local, and 
                tribal governments;
                    ``(G) use grant or cooperative agreement funds 
                provided by the Partnership under an agreement entered 
                into under paragraph (1) to--
                            ``(i) retain an Executive Director and such 
                        support staff as are necessary to facilitate 
                        and implement the directives of the State rural 
                        development council; and
                            ``(ii) pay expenses associated with 
                        carrying out subparagraphs (A) through (F); and
                    ``(H)(i) provide to the Coordinating Committee an 
                annual plan with goals and performance measures; and
                    ``(ii) submit to the Coordinating Committee an 
                annual report on the progress of the State rural 
                development council in meeting the goals and measures.
            ``(4) Authorities.--A State rural development council may--
                    ``(A) solicit funds to supplement and match funds 
                provided under paragraph (3)(G); and
                    ``(B) engage in activities, in addition to those 
                specified in paragraph (3), appropriate to accomplish 
                the purposes for which the State rural development 
                council is established.
            ``(5) Comments or recommendations.--A State rural 
        development council may provide comments and recommendations to 
        an agency with rural responsibilities related to the activities 
        of the State rural development council within the State.
            ``(6) Actions of state rural development council members.--
        When carrying out a program or activity authorized by a State 
        rural development council or this subtitle, a member of the 
        council shall be regarded as a full-time employee of the 
        Federal Government for purposes of chapter 171 of title 28, 
        United States Code, and the Federal Advisory Committee Act (5 
        U.S.C. App.).
            ``(7) Federal participation in state rural development 
        councils.--
                    ``(A) In general.--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.
    ``(e) Administrative Support of the Partnership.--
            ``(1) Detail of employees.--
                    ``(A) In general.--In order to provide experience 
                in intergovernmental collaboration, the head of an 
                agency with rural responsibilities that elects to 
                participate in the Partnership may, and is encouraged 
                to, detail an employee of the agency with rural 
                responsibilities to the Partnership without 
                reimbursement for a period of up to 12 months.
                    ``(B) Civil service status.--The detail shall be 
                without interruption or loss of civil service status or 
                privilege.
            ``(2) Additional support.--The Secretary shall provide for 
        any additional support staff to the Partnership as the 
        Secretary determines to be necessary to carry out the duties of 
        the Partnership.
    ``(f) Funding.--
            ``(1) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as are necessary to carry out 
                this section.
                    ``(B) Amount of financial assistance.--In providing 
                financial assistance to State rural development 
                councils, the Secretary and heads of other Federal 
                agencies shall provide assistance that, to the maximum 
                extent practicable, is--
                            ``(i) uniform in amount; and
                            ``(ii) targeted to newly created State 
                        rural development councils.
                    ``(C) Federal share.--The Secretary shall develop a 
                plan to decrease, over time, the Federal share of the 
                cost of the core operations of State rural development 
                councils.
            ``(2) Federal agencies.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law limiting the ability of an agency to 
                provide funds to the Partnership with other agencies, 
                in order to carry out the purposes described in 
                subsection (b)(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. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 623) is amended by added at 
the end the following:
            ``(23) Multijurisdictional regional planning 
        organizations.--
                    ``(A) Definition of rural area.--In this paragraph, 
                the term `rural area' has the meaning given the term in 
                section 377.
                    ``(B) Grants.--The Secretary shall provide grants 
                to multijurisdictional regional planning and 
                development organizations to pay the Federal share of 
                the cost of providing assistance to local governments 
                to improve the infrastructure, services, and business 
                development capabilities of local governments and local 
                economic development organizations.
                    ``(C) Priority.--In determining which organizations 
                will receive a grant under this paragraph, the 
                Secretary shall provide a priority to an organization 
                that--
                            ``(i) serves a rural area that, during the 
                        most recent 5-year period--
                                    ``(I) had a net out-migration of 
                                inhabitants, or other population loss, 
                                from the rural area that equals or 
                                exceeds 5 percent of the population of 
                                the rural area; or
                                    ``(II) had a median household 
                                income that is less than the 
                                nonmetropolitan median household income 
                                of the United States; and
                            ``(ii) has a history of providing 
                        substantive assistance to local governments and 
                        economic development organizations.
                    ``(D) Federal share.--The Federal share of a grant 
                provided under this paragraph shall be not more than 75 
                percent of the cost of providing assistance described 
                in subparagraph (B).
                    ``(E) Maximum amount of grants.--The amount of a 
                grant provided to an organization under this paragraph 
                shall not exceed $100,000.
                    ``(F) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $30,000,000 for each of fiscal years 2003 
                through 2006.''.

SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING EXPERTISE.

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

SEC. 626. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS.

    (a) Loan Guarantees for Water, Wastewater, and Essential Community 
Facilities Loans.--Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1925(a)) (as amended by section 625) is 
amended by adding at the end the following:
            ``(25) Loan guarantees for water, wastewater, and essential 
        community facilities loans.--
                    ``(A) In general.--The Secretary may guarantee any 
                community facilities and water and waste facilities 
                loans under paragraph (1) to finance bonds for water 
                and waste facilities.
                    ``(B) Requirements.--To be eligible for a loan 
                guarantee under subparagraph (A), an individual or 
                entity offering to purchase the loan must demonstrate 
                to the Secretary that the person has--
                            ``(i) the capabilities and resources 
                        necessary to service the loan in a manner that 
                        ensures the continued performance of the loan, 
                        as determined by the Secretary; and
                            ``(ii) the ability to generate capital to 
                        provide borrowers of the loan with the 
                        additional credit necessary to properly service 
                        the loan.''.
    (b) Loan Guarantees for Certain Loans.--Section 310B of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended 
by adding at the end the following:
    ``(h) Loan Guarantee for Certain Loans.--The Secretary may 
guarantee loans made in subsection (a) to finance the issuance of bonds 
for the projects described in section 306(a)(25).''.

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

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) (as amended by section 626(a)) is amended by adding 
at the end the following:
            ``(26) Rural firefighters and emergency medical personnel 
        grant program.--
                    ``(A) In general.--The Secretary may make grants to 
                units of general local government and Indian tribes (as 
                defined in section 4 of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450b)) to pay 
                the cost of training firefighters and emergency medical 
                personnel in firefighting, emergency medical practices, 
                and responding to hazardous materials and bioagents in 
                rural areas.
                    ``(B) Use of funds.--
                            ``(i) Scholarships.--
                                    ``(I) In general.--Not less than 60 
                                percent of the amounts made available 
                                for competitively awarded grants under 
                                this paragraph shall be made available 
                                for partial scholarships for training 
                                at training centers approved by the 
                                Secretary.
                                    ``(II) Priority.--In awarding 
                                grants under this clause, the Secretary 
                                shall give priority to grant applicants 
                                with relatively low transportation 
                                costs considering the location of the 
                                recipient.
                            ``(ii) Grants for training centers.--
                                    ``(I) Existing centers.--
                                            ``(aa) In general.--A grant 
                                        under subparagraph (A) may be 
                                        used to provide financial 
                                        assistance to State and 
                                        regional centers that provide 
                                        training for firefighters and 
                                        emergency medical personnel for 
                                        improvements to the training 
                                        facility, equipment, and 
                                        personnel.
                                            ``(bb) Limitation.--Not 
                                        more than $2,000,000 shall be 
                                        provided to any single training 
                                        center for any fiscal year 
                                        under this subclause.
                                    ``(II) Establishment of new 
                                centers.--
                                            ``(aa) In general.--A grant 
                                        under subparagraph (A) may be 
                                        used to provide the Federal 
                                        share of the costs of 
                                        establishing a regional 
                                        training center for 
                                        firefighters and emergency 
                                        medical personnel.
                                            ``(bb) Federal share.--The 
                                        amount of a grant under this 
                                        subclause for a training center 
                                        shall not exceed 50 percent of 
                                        the cost of establishing the 
                                        training center.
                    ``(C) Funding.--
                            ``(i) In general.--Out of any funds in the 
                        Treasury not otherwise appropriated, the 
                        Secretary of the Treasury shall transfer to the 
                        Secretary of Agriculture to carry out this 
                        paragraph--
                                    ``(I) not later than 30 days after 
                                the date of enactment of this Act, 
                                $10,000,000; and
                                    ``(II) on October 1, 2002, and each 
                                October 1 thereafter through October 1, 
                                2005, $30,000,000.
                            ``(ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive the 
                        funds and shall accept the funds transferred 
                        under clause (i), without further 
                        appropriation.
                            ``(iii) Availability of funds.--Funds 
                        transferred under clause (i) shall remain 
                        available until expended.''.

SEC. 628. 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. 629. 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. 630. 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. 631. BUSINESS AND INDUSTRY DIRECT AND GUARANTEED LOANS.

    (a) In General.--Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended--
            (1) by striking ``Sec. 310B. (a) The'' and inserting the 
        following:

``SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.

    ``(a) Loans for Private Business Enterprises.--
            ``(1) In general.--The''; and
            (2) in subsection (a)--
                    (A) in the first sentence--
                            (i) by striking ``of (1) improving'' and 
                        inserting ``of--
                    ``(A) improving'';
                            (ii) by striking ``control, (2) the 
                        conservation, development, and use of'' and 
                        inserting ``control;
                    ``(B) conserving, developing, and using'';
                            (iii) by striking ``areas, (3) reducing'' 
                        and inserting ``areas;
                    ``(C) reducing'';
                            (iv) by striking ``areas, and (4) to 
                        facilitate'' and inserting ``areas; and
                    ``(D) facilitating'';
                            (v) by striking ``For the purposes of this 
                        subsection, the'' and inserting the following:
            ``(5) Definitions.--In this subsection:
                    ``(B) Solar energy.--The'';
                            (vi) by striking ``Such loans'' and 
                        inserting the following:
            ``(2) Loan guarantees.--Loans described in paragraph (1)'';
                            (vii) by moving paragraph (2) (as amended 
                        by clause (vi)) to appear after paragraph (1) 
                        (as amended by paragraph (1));
                            (viii) by striking ``As used in this 
                        subsection, the'' and inserting the following:
                    ``(A) Acquaculture.--The'';
                            (ix) by moving subparagraph (A) (as amended 
                        by clause (viii)) to appear before subparagraph 
                        (B) of paragraph (5) (as amended by clause 
                        (v));
                            (x) by striking ``No loan'' and inserting 
                        the following:
            ``(3) Loan limitation.--No loan'';
                            (xi) by moving paragraph (3) (as amended by 
                        clause (x)) to appear after paragraph (2) (as 
                        amended by clause (vi)); and
                            (xii) by inserting after paragraph (3) (as 
                        amended by clauses (x) and (xi)) the following:
            ``(4) Business and industry direct and guaranteed loans.--
                    ``(A) Rural communities.--The Secretary may 
                guarantee a loan under paragraph (1)A) in any city, 
                town, or unincorporated area that has a population of 
                50,000 inhabitants or less, other than an urbanized 
                area immediately adjacent to a city, town, or 
                unincorporated area that has a population in excess of 
                50,000 inhabitants.
                    ``(B) Cooperative stock share program.--
                            ``(i) In general.--The Secretary may 
                        guarantee a loan under paragraph (1)(A) to 
                        farmers, ranchers, or cooperatives for the 
                        purpose of providing startup capital stock for 
                        the expansion or creation of a cooperative 
                        venture that will process agricultural 
                        commodities or otherwise process value-added 
                        agricultural product.
                            ``(ii) Financial condition.--In determining 
                        the appropriateness of a loan guarantee under 
                        this subparagraph, the Secretary--
                                    ``(I) shall fully review the 
                                feasibility and other relevant aspects 
                                of the cooperative venture to be 
                                established;
                                    ``(II) may not require a review of 
                                the financial condition or statements 
                                of any individual farmer or rancher 
                                involved in the loan guarantee; and
                                    ``(III) shall base any guarantee, 
                                to the maximum extent practicable, on 
                                the merits of the cooperative venture 
                                to be established.
                            ``(iii) Collateral.--As a condition of 
                        making a loan guarantee under this 
                        subparagraph, the Secretary may not require 
                        additional collateral by a farmer or rancher, 
                        other than stock purchased or issued pursuant 
                        to the loan and guarantee of the loan.
                    ``(C) Loans for cooperatives.--
                            ``(i) Metropolitan areas.--The Secretary 
                        may make a loan under paragraph (1)(A) to a 
                        cooperative that is headquartered in a 
                        metropolitan area if the loan is used to 
                        provide assistance described in paragraph 
                        (1)(A) in a rural area.
                            ``(ii) Farmers and ranchers.--The Secretary 
                        may make a loan under paragraph (1)(A) to a 
                        farmer or rancher to join a cooperative in 
                        order to sell the agricultural commodities or 
                        products produced by the farmer or rancher.
                    ``(D) Appraisals.--The Secretary may require that 
                any appraisal made in connection with a loan under 
                paragraph (1)(A) be conducted by a specialized 
                appraiser that uses standards that are similar to 
                standards used for similar purposes in the private 
                sector, as determined by the Secretary.
                    ``(E) Fees.--The Secretary may assess an annual fee 
                for any loan made under paragraph (1)(A) in an amount 
                that does not exceed 2 percent of the balance due on 
                the loan.''.
    (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B)(ii) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1927(a)(6)(B)(ii)) is amended 
        by striking ``clause (1) of section 310B(a)'' and inserting 
        ``section 310B(a)(1)(A)''.
            (2) Section 381E(d)(3)(B) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by 
        striking ``section 310B(a)(1)'' and inserting ``section 
        310B(a)(1)(A)''.

SEC. 632. 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. 633. 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 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. 634. 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)(1), 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)(1); and
            ``(3) satisfies such additional requirements as are 
        established by the Secretary.''.

SEC. 635. 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;
                    ``(B) water or waste disposal grants or direct or 
                guaranteed loans under paragraph (1) or (2) of section 
                306(a) the amount or principal loan amount, 
                respectively, of which is $300,000 or less; and
                    ``(C) business and industry guaranteed loans under 
                section 310B(a)(1)(A) 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. 636. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE PROGRAM.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Economically disadvantaged microentrepreneur.--The 
        term `economically disadvantaged microentrepreneur' means an 
        owner, majority owner, or developer of a microenterprise that 
        has the ability to compete in the private sector but has been 
        impaired due to diminished capital and credit opportunities, as 
        compared to other microentrepreneurs in the industry.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(3) Intermediary.--The term `intermediary' means a 
        private, nonprofit entity that provides assistance--
                    ``(A) to a microenterprise development 
                organization; or
                    ``(B) for a microenterprise development program.
            ``(4) Low-income individual.--The term `low-income 
        individual' means an individual with an income (adjusted for 
        family size) of not more than the greater of--
                    ``(A) 80 percent of median income of the area; or
                    ``(B) 80 percent of the statewide nonmetropolitan 
                area median income.
            ``(5) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $35,000 provided to a 
        rural entrepreneur.
            ``(6) Microenterpise.--The term `microenterprise' means a 
        sole proprietorship, joint enterprise, limited liability 
        company, partnership, corporation, or cooperative that--
                    ``(A) has 5 or fewer employees; and
                    ``(B) is unable to obtain sufficient credit, 
                equity, or banking services, as determined by the 
                Secretary.
            ``(7) Microenterprise development organization.--
                    ``(A) In general.--The term `microenterprise 
                development organization' means a nonprofit entity that 
                provides training and technical assistance to rural 
                entrepreneurs and access to capital or another service 
                described in subsection (c) to rural entrepreneurs.
                    ``(B) Inclusions.--The term `microenterprise 
                development organization' includes an organization 
                described in subparagraph (A) with a demonstrated 
                record of delivering services to economically 
                disadvantaged microentrepreneurs.
            ``(8) Microenterprise development program.--The term 
        `microenterprise development organization' means a program 
        administered by a organization serving a rural area.
            ``(9) Microentrepreneur.--The term `microentrepreneur' 
        means the owner, operator, or developer of a microenterprise.
            ``(10) Program.--The term `program' means the rural 
        entrepreneur and microenterprise program established under 
        subsection (b)(1).
            ``(11) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) a microenterprise development organization or 
                microenterprise development program that has a 
                demonstrated record of delivering microenterprise 
                services to rural entrepreneurs, as demonstrated by the 
                development of an effective plan of action and the 
                possession of necessary resources to deliver 
                microenterprise services to rural entrepreneurs 
                effectively, as determined by the Secretary;
                    ``(B) an intermediary that has a demonstrated 
                record of delivery assistance to microenterprise 
                development organizations or microenterprise 
                development programs;
                    ``(C) a microenterprise development organization or 
                microenterprise development program that--
                            ``(i) serves rural entrepreneurs; and
                            ``(ii) enters into an agreement with a 
                        local community, in conjunction with a State or 
                        local government or Indian tribe, to provide 
                        assistance described in subsection (c);
                    ``(D) an Indian tribe, the tribal government of 
                which certifies to the Secretary that no 
                microenterprise development organization or 
                microenterprise development program exists under the 
                jurisdiction of the Indian tribe; or
                    ``(E) a group of 2 or more organizations or Indian 
                tribes described in subparagraph (A), (B), (C), or (D) 
                that agree to act jointly as a qualified organization 
                under this section.
            ``(12) Rural area.--The term `rural area' has the meaning 
        given the term in section 383C.
            ``(13) Rural capacity building service.--The term `rural 
        capacity building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization or 
                microenterprise development program; and
                    ``(B) serves rural areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other related 
                services to rural entrepreneurs.
            ``(14) Rural entrepreneur.--The term `rural entrepreneur' 
        means a microentrepreneur, or prospective microentrepreneur--
                    ``(A) the principal place of business of which is 
                in a rural area; and
                    ``(B) that is unable to obtain sufficient training, 
                technical assistance, or microcredit elsewhere, as 
                determined by the Secretary.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Business-Cooperative 
        Service.
            ``(16) Training and technical assistance.--
                    ``(A) In general.--The term `training and technical 
                assistance' means assistance provided to rural 
                entrepreneurs to develop the skills the rural 
                entrepreneurs need to plan, market, and manage their 
                own business.
                    ``(B) Inclusions.--The term `training and technical 
                assistance' includes assistance provided for the 
                purpose of--
                            ``(i) enhancing business planning, 
                        marketing, management, or financial management 
                        skills; and
                            ``(ii) obtaining microcredit.
            ``(17) Tribal government.--The term `tribal government' 
        means the governing body of an Indian tribe.
    ``(b) Establishment.--
            ``(1) In general.--In each of fiscal years 2002 through 
        2006, the Secretary shall use $10,000,000 of the funds of the 
        Commodity Credit Corporation to establish a rural entrepreneur 
        and microenterprise program.
            ``(2) Purpose.--The purpose of the program shall be to 
        provide low and moderate income individuals with--
                    ``(A) the skills necessary to establish new small 
                businesses in rural areas; and
                    ``(B) continuing technical assistance as the 
                individuals begin operating the small businesses.
    ``(c) Assistance.--
            ``(1) In general.--The Secretary may make a grant under 
        this section to a qualified organization to--
                    ``(A) provide training, technical assistance, or 
                microcredit to a rural entrepreneur;
                    ``(B) provide training, operational support, or a 
                rural capacity building service to a qualified 
                organization to assist the qualified organization in 
                developing microenterprise training, technical 
                assistance, and other related services;
                    ``(C) assist in researching and developing the best 
                practices in delivering training, technical assistance, 
                and microcredit to rural entrepreneurs; and
                    ``(D) to carry out such other projects and 
                activities as the Secretary determines are consistent 
                with the purposes of this section.
            ``(2) Allocation.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), of the amount of funds made available for a fiscal 
                year to make grants under this section, the Secretary 
                shall ensure that--
                            ``(i) not less than 75 percent of funds are 
                        used to carry out activities described in 
                        paragraph (1)(A); and
                            ``(ii) not more than 25 percent of the 
                        funds are used to carry out activities 
                        described in subparagraphs (B) through (D) of 
                        paragraph (1).
                    ``(B) Limitation on grant amount.--No single 
                qualified organization may receive more than 10 percent 
                of the total funds that are made available for a fiscal 
                year to carry out this section.
                    ``(C) Administrative expenses.--Not more than 15 
                percent of assistance received by a qualified 
                organization for a fiscal year under this section may 
                be used for administrative expenses.
    ``(d) Subgrants.--Subject to such regulations as the Secretary may 
promulgate, a qualified organization that receives a grant under this 
section may use the grant to provide assistance to other qualified 
organizations, such as small or emerging qualified organizations.
    ``(e) Low-Income Individuals.--The Secretary shall ensure that not 
less than 50 percent of the grants made under this section is used to 
benefit low-income individuals identified by the Secretary, including 
individuals residing on Indian reservations.
    ``(f) Diversity.--In making grants under this section, the 
Secretary shall ensure, to the maximum extent practicable, that grant 
recipients include qualified organizations--
            ``(1) of varying sizes; and
            ``(2) that serve racially and ethnically diverse 
        populations.
    ``(g) Cost Sharing.--
            ``(1) Federal share.--The Federal share of the cost of a 
        project carried out using funds from a grant under this section 
        shall be 75 percent.
            ``(2) Form of non-federal share.--The non-Federal share of 
        the cost of a project described in paragraph (1) may be 
        provided--
                    ``(A) in cash (including through fees, grants 
                (including community development block grants), and 
                gifts); or
                    ``(B) in kind.''.

SEC. 637. RURAL SENIORS.

    (a) Interagency Coordinating Committee for Rural Seniors.--Subtitle 
D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et 
seq.) (as amended by section 636) is amended by adding at the end the 
following:

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

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

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

    ``(a) In General.--The Secretary shall make grants to nonprofit 
organizations (including cooperatives) to pay the Federal share of the 
cost of programs that--
            ``(1) provide facilities, equipment, and technology for 
        seniors in a rural area; and
            ``(2) may be replicated in other rural areas.
    ``(b) Federal Share.--The Federal share of a grant under this 
section shall be 10 percent.
    ``(c) Leveraging.--In selecting programs to receive grants under 
section, the Secretary shall give priority to proposals that leverage 
resources to meet multiple rural community goals.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2003 through 2006.''.
    (c) Reservation of Community Facilities Program Funds for Senior 
Facilities.--Section 306(a)(19) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end 
the following:
                    ``(C) Reservation of funds for senior facilities.--
                            ``(i) In general.--For each fiscal year, 
                        not less than 12.5 percent of the funds made 
                        available to carry out this paragraph shall be 
                        reserved for grants to pay the Federal share of 
                        the cost of developing and constructing senior 
                        facilities, or carrying out other projects that 
                        mainly benefit seniors, in rural areas.
                            ``(ii) Insufficient applications.--If, for 
                        any fiscal year, the Secretary determines that 
                        there will be an insufficient quantity of 
                        applications for grants described in clause (i) 
                        to use the funds reserved under clause (i), the 
                        Secretary may use the excess reserved funds to 
                        make grants for any other purpose authorized 
                        under this paragraph.''.
    (d) Reservation of Community Facilities Program Funds for 
Children's Day Care Facilities.--Section 306(a)(19) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) (as amended by 
subsection (c)) is amended by adding at the end the following:
                    ``(D) Reservation of funds for children's day care 
                facilities.--
                            ``(i) In general.--For each fiscal year, 
                        not less than 10 percent of the funds made 
                        available to carry out this paragraph shall be 
                        reserved for grants to pay the Federal share of 
                        the cost of developing and constructing day 
                        care facilities for children in rural areas.
                            ``(ii) Insufficient applications.--If, for 
                        any fiscal year, the Secretary determines that 
                        there will be an insufficient quantity of 
                        applications for grants described in clause (i) 
                        to use the funds reserved under clause (i), the 
                        Secretary may use the excess reserved funds to 
                        make grants for any other purpose authorized 
                        under this paragraph.''.

SEC. 638. RURAL TELEWORK.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 637(b)) is amended by 
adding at the end the following:

``SEC. 379B. RURAL TELEWORK.

    ``(a) Definitions.--In this section:
            ``(1) Eligible organization.--The term `eligible 
        organization' means a nonprofit entity, an educational 
        institution, an Indian tribe (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)), or any other organization that meets the 
        requirements of this section and such other requirements as are 
        established by the Secretary.
            ``(2) Institute.--The term `institute' means a regional 
        rural telework institute established using a grant under this 
        subsection (b).
            ``(3) Rural area.--The terms `rural' and `rural area' have 
        the meaning given the terms in section 384A.
            ``(4) Secretary.--The term `Secretary' means the Secretary, 
        acting through the Administrator of the Rural Utility Service.
            ``(5) Telework.--The term `telework' means the use of 
        telecommunications to perform work functions at a rural work 
        center located outside the place of business of an employer.
    ``(b) Rural Telework Institute.--
            ``(1) In general.--The Secretary shall make grants to an 
        eligible organization to pay the Federal share of the cost of 
        establishing and operating a regional rural telework institute 
        to carry out projects described in paragraph (4).
            ``(2) Eligible organizations.--The Secretary shall 
        establish criteria that an organization shall meet to be 
        eligible to receive a grant under this subsection.
            ``(3) Deadline for initial grants.--Not later than 1 year 
        after the date on which funds are first made available to carry 
        out this subsection, the Secretary shall make the initial 
        grants under this section.
            ``(4) Projects.--The institute shall use grant funds 
        obtained under this subsection to carry out a 5-year project--
                    ``(A) to serve as a clearinghouse for telework 
                research and development;
                    ``(B) to conduct outreach to rural communities and 
                rural workers;
                    ``(C) to develop and share best practices in rural 
                telework within the region and throughout the United 
                States;
                    ``(D) to develop innovative, market-driven telework 
                projects and joint ventures with the private sector 
                that employ workers in rural areas in jobs that promote 
                economic self-sufficiency;
                    ``(E) to share information about the design and 
                implementation of telework arrangements;
                    ``(F) to support private sector businesses that are 
                transitioning to telework;
                    ``(G) to support and assist telework projects and 
                individuals at the State and local level; and
                    ``(H) to perform such other functions as the 
                Secretary considers appropriate.
            ``(5) Non-federal share.--
                    ``(A) In general.--As a condition of receiving a 
                grant under this subsection, an eligible organization 
                shall agree to obtain, after the application of the 
                eligible organization has been approved and notice of 
                award has been issued, contributions from non-Federal 
                sources that are equal to--
                            ``(i) during each of the first, second, and 
                        third years of a project, 50 percent of the 
                        amount of the grant; and
                            ``(ii) during each of the fourth and fifth 
                        years of the project, 100 percent of the amount 
                        of the grant.
                    ``(B) Indian tribes.--Notwithstanding subparagraph 
                (A), an Indian tribe may use Federal funds made 
                available to the tribe for self-governance to pay the 
                non-Federal contributions required under subparagraph 
                (A).
                    ``(C) Form.--The non-Federal contributions required 
                under subparagraph (A) may be in the form of in-kind 
                contributions, including office equipment, office 
                space, and services.
    ``(c) Telework Grants.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the Secretary shall make grants to eligible entities to pay the 
        Federal share of the cost of--
                    ``(A) obtaining equipment and facilities to 
                establish or expand telework locations in rural areas; 
                and
                    ``(B) operating telework locations in rural areas.
            ``(2) Eligible organizations.--To be eligible to receive a 
        grant under this subsection, an eligible entity shall--
                    ``(A) be a nonprofit organization or educational 
                institution in a rural area; and
                    ``(B) submit to, and receive the approval of, the 
                Secretary of an application for the grant that 
                demonstrates that the eligible entity has adequate 
                resources and capabilities to establish or expand a 
                telework location in a rural area.
            ``(3) Non-federal share.--
                    ``(A) In general.--As a condition of receiving a 
                grant under this subsection, an eligible organization 
                shall agree to obtain, after the application of the 
                eligible organization has been approved and notice of 
                award has been issued, contributions from non-Federal 
                sources that are equal to \2/3\ of the amount of the 
                grant.
                    ``(B) Indian tribes.--Notwithstanding subparagraph 
                (A), an Indian tribe may use Federal funds made 
                available to the tribe for self-governance to pay the 
                non-Federal contributions required under subparagraph 
                (A).
                    ``(C) Sources.--The non-Federal contributions 
                required under subparagraph (A)--
                            ``(i) may be in the form of in-kind 
                        contributions, including office equipment, 
                        office space, and services; and
                            ``(ii) may not be made from funds made 
                        available for community development block 
                        grants under title I of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        5301 et seq.).
            ``(4) Duration.--The Secretary may not provide a grant 
        under this subsection to establish, expand, or operate a 
        telework location in a rural area after the date that is 2 
        years after the establishment of the telework location.
            ``(5) Maximum amount of grant.--The amount of a grant 
        provided to an eligible entity under this subsection shall not 
        exceed $500,000.
    ``(d) Applicability of Certain Federal Law.--An entity that 
receives funds under this section shall be subject to the provisions of 
Federal law (including regulations), administered by the Secretary of 
Labor or the Equal Employment Opportunity Commission, that govern the 
responsibilities of employers to employees.
    ``(e) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall promulgate regulations 
to carry out this section.
    ``(f) Authorization of Appropriation.--There is authorized to be 
appropriated to carry out this section $30,000,000 for each fiscal 
year, of which $5,000,000 shall be provided to establish an institute 
under subsection (b).''.

SEC. 639. HISTORIC BARN PRESERVATION.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 638) is amended by adding 
at the end the following:

``SEC. 379C. HISTORIC BARN PRESERVATION.

    ``(a) Definitions.--In this section:
            ``(1) Barn.--The term `barn' means a building (other than a 
        dwelling) on a farm, ranch, or other agricultural operation 
        for--
                    ``(A) housing animals;
                    ``(B) storing or processing crops;
                    ``(C) storing and maintaining agricultural 
                equipment; or
                    ``(D) serving an essential or useful purpose 
                related to agriculture on the adjacent land.
            ``(2) Historic barn.--The term `historic barn' means a barn 
        that--
                    ``(A) is at least 50 years old;
                    ``(B) retains sufficient integrity of design, 
                materials, and construction to clearly identify the 
                barn as an agricultural building; and
                    ``(C) meets the criteria for listing on National, 
                State, or local registers or inventories of historic 
                structures.
            ``(3) Secretary.--The term `Secretary' means the Secretary, 
        acting through the Undersecretary of Rural Development.
            ``(4) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) a State department of agriculture (or a 
                designee);
                    ``(B) a national or State nonprofit organization 
                that--
                            ``(i) is exempt from tax under section 
                        501(c)(3) of the Internal Revenue Code of 1986; 
                        and
                            ``(ii) has experience or expertise, as 
                        determined by the Secretary, in the 
                        identification, evaluation, rehabilitation, 
                        preservation, or protection of historic barns; 
                        and
                    ``(C) a State historic preservation office.
    ``(b) Program.--The Secretary shall establish a historic barn 
preservation program--
            ``(1) to assist States in developing a listing of historic 
        barns;
            ``(2) to collect and disseminate information on historic 
        barns;
            ``(3) to foster educational programs relating to the 
        history, construction techniques, rehabilitation, and 
        contribution to society of historic barns; and
            ``(4) to sponsor and conduct research on--
                    ``(A) the history of barns; and
                    ``(B) best practices to protect and rehabilitate 
                historic barns from the effects of decay, fire, arson, 
                and natural disasters.
    ``(c) Grants.--
            ``(1) In General.--The Secretary may make grants to, or 
        enter into contracts or cooperative agreements with, eligible 
        applicants to carry out an eligible project under paragraph 
        (2).
            ``(2) Eligible Projects.--A grant under this subsection may 
        be made to an eligible entity for a project--
                    ``(A) to rehabilitate or repair a historic barn;
                    ``(B) to preserve a historic barn through--
                            ``(i) the installation of a fire protection 
                        system, including fireproofing or fire 
                        detection system and sprinklers; and
                            ``(ii) the installation of a system to 
                        prevent vandalism; and
                    ``(C) to identify, document, and conduct research 
                on a historic barn to develop and evaluate appropriate 
                techniques or best practices for protecting historic 
                barns.
            ``(3) Requirements.--An eligible applicant that receives a 
        grant for a project under this subsection shall comply with any 
        standards established by the Secretary of the Interior for 
        historic preservation projects.
    ``(d) Funding.--There is authorized to be appropriated to carry out 
this section, $25,000,000 for the period of fiscal years 2002 through 
2006, to remain available until expended.''.

SEC. 640. 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. 641. SEARCH GRANTS FOR SMALL COMMUNITIES.

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

           ``Subtitle J--SEARCH Grants for Small Communities

``SEC. 386A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Council.--The term `council' means an independent 
        citizens' council established by section 386B(d).
            ``(2) Environmental project.--
                    ``(A) In general.--The term `environmental project' 
                means a project that--
                            ``(i) improves environmental quality; and
                            ``(ii) is necessary to comply with an 
                        environmental law (including a regulation).
                    ``(B) Inclusion.--The term `environmental project' 
                includes an initial feasibility study of a project.
            ``(3) Region.--The term `region' means a geographic area of 
        a State, as determined by the Governor of the State.
            ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
        for special environmental assistance for the regulation of 
        communities and habitat awarded under section 386B(e)(3).
            ``(5) Small community.--The term `small community' means an 
        incorporated or unincorporated rural community with a 
        population of 2,500 inhabitants or less.
            ``(6) State.--The term `State' has the meaning given the 
        term in section 384A.

``SEC. 386B. SEARCH GRANT PROGRAM.

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

    ``Not later than September 1 of the first fiscal year for which a 
SEARCH grant is awarded by a council, and annually thereafter, the 
council shall submit to the Secretary a report that--
            ``(1) describes the number of SEARCH grants awarded during 
        the fiscal year;
            ``(2) identifies each small community that received a 
        SEARCH grant during the fiscal year;
            ``(3) describes the project or purpose for which each 
        SEARCH grant was awarded, including a statement of the benefit 
        to public health or the environment of the environmental 
        project receiving the grant funds; and
            ``(4) describes the status of each project or portion of a 
        project for which a SEARCH grant was awarded, including a 
        project or portion of a project for which a SEARCH grant was 
        awarded for any fiscal year before the fiscal year in which the 
        report is submitted.

``SEC. 386D. FUNDING.

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

SEC. 642. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

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

         ``Subtitle K--Northern Great Plains Regional Authority

``SEC. 387A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authority.--The term `Authority' means the Northern 
        Great Plains Regional Authority established by section 387B.
            ``(2) Region.--The term `region' means the States of Iowa, 
        Minnesota, Nebraska, North Dakota, and South Dakota.
            ``(3) Federal grant program.--The term `Federal grant 
        program' means a Federal grant program to provide assistance 
        in--
                    ``(A) acquiring or developing land;
                    ``(B) constructing or equipping a highway, road, 
                bridge, or facility; or
                    ``(C) carrying out other economic development 
                activities.

``SEC. 387B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the Northern Great 
        Plains Regional Authority.
            ``(2) Composition.--The Authority shall be composed of--
                    ``(A) a Federal member, to be appointed by the 
                President, with the advice and consent of the Senate; 
                and
                    ``(B) the Governor (or a designee of the Governor) 
                of each State in the region that elects to participate 
                in the Authority.
            ``(3) Cochairpersons.--The Authority shall be headed by--
                    ``(A) the Federal member, who shall serve--
                            ``(i) as the Federal cochairperson; and
                            ``(ii) as a liaison between the Federal 
                        Government and the Authority; and
                    ``(B) a State cochairperson, who--
                            ``(i) shall be a Governor of a 
                        participating State in the region; and
                            ``(ii) shall be elected by the State 
                        members for a term of not less than 1 year.
    ``(b) Alternate Members.--
            ``(1) State alternates.--The State member of a 
        participating State may have a single alternate, who shall be--
                    ``(A) a resident of that State; and
                    ``(B) appointed by the Governor of the State.
            ``(2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            ``(3) Quorum.--A State alternate shall not be counted 
        toward the establishment of a quorum of the Authority in any 
        instance in which a quorum of the State members is required to 
        be present.
            ``(4) Delegation of power.--No power or responsibility of 
        the Authority specified in paragraphs (2) and (3) of subsection 
        (c), and no voting right of any Authority member, shall be 
        delegated to any person--
                    ``(A) who is not an Authority member; or
                    ``(B) who is not entitled to vote in Authority 
                meetings.
    ``(c) Voting.--
            ``(1) In general.--A decision by the Authority shall 
        require a majority vote of the Authority (not including any 
        member representing a State that is delinquent under subsection 
        (g)(2)(C)) to be effective.
            ``(2) Quorum.--A quorum of State members shall be required 
        to be present for the Authority to make any policy decision, 
        including--
                    ``(A) a modification or revision of an Authority 
                policy decision;
                    ``(B) approval of a State or regional development 
                plan; and
                    ``(C) any allocation of funds among the States.
            ``(3) Project and grant proposals.--The approval of project 
        and grant proposals shall be--
                    ``(A) a responsibility of the Authority; and
                    ``(B) conducted in accordance with section 387I.
            ``(4) Voting by alternate members.--An alternate member 
        shall vote in the case of the absence, death, disability, 
        removal, or resignation of the Federal or State representative 
        for which the alternate member is an alternate.
    ``(d) Duties.--The Authority shall--
            ``(1) develop, on a continuing basis, comprehensive and 
        coordinated plans and programs to establish priorities and 
        approve grants for the economic development of the region, 
        giving due consideration to other Federal, State, and local 
        planning and development activities in the region;
            ``(2) not later than 220 days after the date of enactment 
        of this subtitle, establish priorities in a development plan 
        for the region (including 5-year regional outcome targets);
            ``(3) assess the needs and assets of the region based on 
        available research, demonstrations, investigations, 
        assessments, and evaluations of the region prepared by Federal, 
        State, and local agencies, universities, local development 
        districts, and other nonprofit groups;
            ``(4) formulate and recommend to the Governors and 
        legislatures of States that participate in the Authority forms 
        of interstate cooperation;
            ``(5) work with State and local agencies in developing 
        appropriate model legislation;
            ``(6)(A) enhance the capacity of, and provide support for, 
        local development districts in the region; or
            ``(B) if no local development district exists in an area in 
        a participating State in the region, foster the creation of a 
        local development district;
            ``(7) encourage private investment in industrial, 
        commercial, and other economic development projects in the 
        region; and
            ``(8) cooperate with and assist State governments with 
        economic development programs of participating States.
    ``(e) Administration.--In carrying out subsection (d), the 
Authority may--
            ``(1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print 
        or otherwise reproduce and distribute a description of the 
        proceedings and reports on actions by the Authority as the 
        Authority considers appropriate;
            ``(2) authorize, through the Federal or State cochairperson 
        or any other member of the Authority designated by the 
        Authority, the administration of oaths if the Authority 
        determines that testimony should be taken or evidence received 
        under oath;
            ``(3) request from any Federal, State, or local department 
        or agency such information as may be available to or procurable 
        by the department or agency that may be of use to the Authority 
        in carrying out duties of the Authority;
            ``(4) adopt, amend, and repeal bylaws and rules governing 
        the conduct of Authority business and the performance of 
        Authority duties;
            ``(5) request the head of any Federal department or agency 
        to detail to the Authority such personnel as the Authority 
        requires to carry out duties of the Authority, each such detail 
        to be without loss of seniority, pay, or other employee status;
            ``(6) request the head of any State department or agency or 
        local government to detail to the Authority such personnel as 
        the Authority requires to carry out duties of the Authority, 
        each such detail to be without loss of seniority, pay, or other 
        employee status;
            ``(7) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                    ``(A) making arrangements or entering into 
                contracts with any participating State government; or
                    ``(B) otherwise providing retirement and other 
                employee benefit coverage;
            ``(8) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            ``(9) enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as are necessary 
        to carry out Authority duties, including any contracts, leases, 
        or cooperative agreements with--
                    ``(A) any department, agency, or instrumentality of 
                the United States;
                    ``(B) any State (including a political subdivision, 
                agency, or instrumentality of the State); or
                    ``(C) any person, firm, association, or 
                corporation; and
            ``(10) establish and maintain a central office and field 
        offices at such locations as the Authority may select.
    ``(f) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with the Authority; and
            ``(2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this subtitle, in 
        accordance with applicable Federal laws (including 
        regulations).
    ``(g) Administrative Expenses.--
            ``(1) In general.--Administrative expenses of the Authority 
        (except for the expenses of the Federal cochairperson, 
        including expenses of the alternate and staff of the Federal 
        cochairperson, which shall be paid solely by the Federal 
        Government) shall be paid--
                    ``(A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses; and
                    ``(B) by the States in the region participating in 
                the Authority, in an amount equal to 50 percent of the 
                administrative expenses.
            ``(2) State share.--
                    ``(A) In general.--The share of administrative 
                expenses of the Authority to be paid by each State 
                shall be determined by the Authority.
                    ``(B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    ``(C) Delinquent states.--If a State is delinquent 
                in payment of the State's share of administrative 
                expenses of the Authority under this subsection--
                            ``(i) no assistance under this subtitle 
                        shall be furnished to the State (including 
                        assistance to a political subdivision or a 
                        resident of the State); and
                            ``(ii) no member of the Authority from the 
                        State shall participate or vote in any action 
                        by the Authority.
    ``(h) Compensation.--
            ``(1) Federal cochairperson.--The Federal cochairperson 
        shall be compensated by the Federal Government at level III of 
        the Executive Schedule in subchapter II of chapter 53 of title 
        5, United States Code.
            ``(2) Alternate federal cochairperson.--The alternate 
        Federal cochairperson--
                    ``(A) shall be compensated by the Federal 
                Government at level V of the Executive Schedule 
                described in paragraph (1); and
                    ``(B) when not actively serving as an alternate for 
                the Federal cochairperson, shall perform such functions 
                and duties as are delegated by the Federal 
                cochairperson.
            ``(3) State members and alternates.--
                    ``(A) In general.--A State shall compensate each 
                member and alternate representing the State on the 
                Authority at the rate established by law of the State.
                    ``(B) No additional compensation.--No State member 
                or alternate member shall receive any salary, or any 
                contribution to or supplementation of salary from any 
                source other than the State for services provided by 
                the member or alternate to the Authority.
            ``(4) Detailed employees.--
                    ``(A) In general.--No person detailed to serve the 
                Authority under subsection (e)(6) shall receive any 
                salary or any contribution to or supplementation of 
                salary for services provided to the Authority from--
                            ``(i) any source other than the State, 
                        local, or intergovernmental department or 
                        agency from which the person was detailed; or
                            ``(ii) the Authority.
                    ``(B) Violation.--Any person that violates this 
                paragraph shall be fined not more than $5,000, 
                imprisoned not more than 1 year, or both.
                    ``(C) Applicable law.--The Federal cochairperson, 
                the alternate Federal cochairperson, and any Federal 
                officer or employee detailed to duty on the Authority 
                under subsection (e)(5) shall not be subject to 
                subparagraph (A), but shall remain subject to sections 
                202 through 209 of title 18, United States Code.
            ``(5) Additional personnel.--
                    ``(A) Compensation.--
                            ``(i) In general.--The Authority may 
                        appoint and fix the compensation of an 
                        executive director and such other personnel as 
                        are necessary to enable the Authority to carry 
                        out the duties of the Authority.
                            ``(ii) Exception.--Compensation under 
                        clause (i) shall not exceed the maximum rate 
                        for the Senior Executive Service under section 
                        5382 of title 5, United States Code, including 
                        any applicable locality-based comparability 
                        payment that may be authorized under section 
                        5304(h)(2)(C) of that title.
                    ``(B) Executive director.--The executive director 
                shall be responsible for--
                            ``(i) the carrying out of the 
                        administrative duties of the Authority;
                            ``(ii) direction of the Authority staff; 
                        and
                            ``(iii) such other duties as the Authority 
                        may assign.
                    ``(C) No federal employee status.--No member, 
                alternate, officer, or employee of the Authority 
                (except the Federal cochairperson of the Authority, the 
                alternate and staff for the Federal cochairperson, and 
                any Federal employee detailed to the Authority under 
                subsection (e)(5)) shall be considered to be a Federal 
                employee for any purpose.
    ``(i) Conflicts of Interest.--
            ``(1) In general.--Except as provided under paragraph (2), 
        no State member, alternate, officer, or employee of the 
        Authority shall participate personally and substantially as a 
        member, alternate, officer, or employee of the Authority, 
        through decision, approval, disapproval, recommendation, the 
        rendering of advice, investigation, or otherwise, in any 
        proceeding, application, request for a ruling or other 
        determination, contract, claim, controversy, or other matter in 
        which, to knowledge of the member, alternate, officer, or 
        employee--
                    ``(A) the member, alternate, officer, or employee;
                    ``(B) the spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State) of the member, alternate, 
                officer, or employee, in which the member, alternate, 
                officer, or employee is serving as officer, director, 
                trustee, partner, or employee; or
                    ``(C) any person or organization with whom the 
                member, alternate, officer, or employee is negotiating 
                or has any arrangement concerning prospective 
                employment;
        has a financial interest.
            ``(2) Disclosure.--Paragraph (1) shall not apply if the 
        State member, alternate, officer, or employee--
                    ``(A) immediately advises the Authority of the 
                nature and circumstances of the proceeding, 
                application, request for a ruling or other 
                determination, contract, claim, controversy, or other 
                particular matter presenting a potential conflict of 
                interest;
                    ``(B) makes full disclosure of the financial 
                interest; and
                    ``(C) before the proceeding concerning the matter 
                presenting the conflict of interest, receives a written 
                determination by the Authority that the interest is not 
                so substantial as to be likely to affect the integrity 
                of the services that the Authority may expect from the 
                State member, alternate, officer, or employee.
            ``(3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 
        2 years, or both.
    ``(j) Validity of Contracts, Loans, and Grants.--The Authority may 
declare void any contract, loan, or grant of or by the Authority in 
relation to which the Authority determines that there has been a 
violation of any provision under subsection (h)(4), subsection (i), or 
sections 202 through 209 of title 18, United States Code.

``SEC. 387C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    ``(a) In General.--The Authority may approve grants to States, 
local governments, and public and nonprofit organizations for projects, 
approved in accordance with section 387I--
            ``(1) to develop the transportation and telecommunication 
        infrastructure of the region for the purpose of facilitating 
        economic development in the region (except that grants for this 
        purpose may only be made to States, local governments, and 
        nonprofit organizations);
            ``(2) to assist the region in obtaining the job training, 
        employment-related education, and business development (with an 
        emphasis on entrepreneurship) that are needed to build and 
        maintain strong local economies;
            ``(3) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        improving basic public services;
            ``(4) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for 
        equipping industrial parks and related facilities; and
            ``(5) to otherwise achieve the purposes of this subtitle.
    ``(b) Funding.--
            ``(1) In general.--Funds for grants under subsection (a) 
        may be provided--
                    ``(A) entirely from appropriations to carry out 
                this section;
                    ``(B) in combination with funds available under 
                another Federal or Federal grant program; or
                    ``(C) from any other source.
            ``(2) Priority of funding.--To best build the foundations 
        for long-term economic development and to complement other 
        Federal and State resources in the region, Federal funds 
        available under this subtitle shall be focused on the 
        activities in the following order or priority:
                    ``(A) Basic public infrastructure in distressed 
                counties and isolated areas of distress.
                    ``(B) Transportation and telecommunication 
                infrastructure for the purpose of facilitating economic 
                development in the region.
                    ``(C) Business development, with emphasis on 
                entrepreneurship.
                    ``(D) Job training or employment-related education, 
                with emphasis on use of existing public educational 
                institutions located in the region.
            ``(3) Federal share in grant programs.--Notwithstanding any 
        provision of law limiting the Federal share in any grant 
        program, funds appropriated to carry out this section may be 
        used to increase a Federal share in a grant program, as the 
        Authority determines appropriate.

``SEC. 387D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may 
be unable to take maximum advantage of Federal grant programs for which 
the States and communities are eligible because--
            ``(1) they lack the economic resources to meet the required 
        matching share; or
            ``(2) there are insufficient funds available under the 
        applicable Federal grant law authorizing the program to meet 
        pressing needs of the region.
    ``(b) Federal Grant Program Funding.--In accordance with subsection 
(c), the Federal cochairperson may use amounts made available to carry 
out this subtitle, without regard to any limitations on areas eligible 
for assistance or authorizations for appropriation under any other Act, 
to fund all or any portion of the basic Federal contribution to a 
project or activity under a Federal grant program in the region in an 
amount that is above the fixed maximum portion of the cost of the 
project otherwise authorized by applicable law, but not to exceed 90 
percent of the costs of the project (except as provided in section 
387F(b)).
    ``(c) Certification.--
            ``(1) In general.--In the case of any program or project 
        for which all or any portion of the basic Federal contribution 
        to the project under a Federal grant program is proposed to be 
        made under this section, no Federal contribution shall be made 
        until the Federal official administering the Federal law 
        authorizing the contribution certifies that the program or 
        project--
                    ``(A) meets the applicable requirements of the 
                applicable Federal grant law; and
                    ``(B) could be approved for Federal contribution 
                under the law if funds were available under the law for 
                the program or project.
            ``(2) Certification by authority.--
                    ``(A) In general.--The certifications and 
                determinations required to be made by the Authority for 
                approval of projects under this subtitle in accordance 
                with section 387I--
                            ``(i) shall be controlling; and
                            ``(ii) shall be accepted by the Federal 
                        agencies.
                    ``(B) Acceptance by federal cochairperson.--Any 
                finding, report, certification, or documentation 
                required to be submitted to the head of the department, 
                agency, or instrumentality of the Federal Government 
                responsible for the administration of any Federal grant 
                program shall be accepted by the Federal cochairperson 
                with respect to a supplemental grant for any project 
                under the program.

``SEC. 387E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
              ADMINISTRATIVE EXPENSES.

    ``(a) Definition of Local Development District.--In this section, 
the term `local development district' means an entity that--
            ``(1) is--
                    ``(A) a planning district in existence on the date 
                of enactment of this subtitle that is recognized by the 
                Economic Development Administration of the Department 
                of Commerce; or
                    ``(B) where an entity described in subparagraph (A) 
                does not exist--
                            ``(i) organized and operated in a manner 
                        that ensures broad-based community 
                        participation and an effective opportunity for 
                        other nonprofit groups to contribute to the 
                        development and implementation of programs in 
                        the region;
                            ``(ii) governed by a policy board with at 
                        least a simple majority of members consisting 
                        of elected officials or employees of a general 
                        purpose unit of local government who have been 
                        appointed to represent the government;
                            ``(iii) certified to the Authority as 
                        having a charter or authority that includes the 
                        economic development of counties or parts of 
                        counties or other political subdivisions within 
                        the region--
                                    ``(I) by the Governor of each State 
                                in which the entity is located; or
                                    ``(II) by the State officer 
                                designated by the appropriate State law 
                                to make the certification; and
                            ``(iv)(I) a nonprofit incorporated body 
                        organized or chartered under the law of the 
                        State in which the entity is located;
                            ``(II) a nonprofit agency or 
                        instrumentality of a State or local government;
                            ``(III) a public organization established 
                        before the date of enactment of this subtitle 
                        under State law for creation of multi-
                        jurisdictional, area-wide planning 
                        organizations; or
                            ``(IV) a nonprofit association or 
                        combination of bodies, agencies, and 
                        instrumentalities described in subclauses (I) 
                        through (III); and
            ``(2) has not, as certified by the Federal cochairperson--
                    ``(A) inappropriately used Federal grant funds from 
                any Federal source; or
                    ``(B) appointed an officer who, during the period 
                in which another entity inappropriately used Federal 
                grant funds from any Federal source, was an officer of 
                the other entity.
    ``(b) Grants to Local Development Districts.--
            ``(1) In general.--The Authority may make grants for 
        administrative expenses under this section.
            ``(2) Conditions for grants.--
                    ``(A) Maximum amount.--The amount of any grant 
                awarded under paragraph (1) shall not exceed 80 percent 
                of the administrative expenses of the local development 
                district receiving the grant.
                    ``(B) Maximum period.--No grant described in 
                paragraph (1) shall be awarded to a State agency 
                certified as a local development district for a period 
                greater than 3 years.
                    ``(C) Local share.--The contributions of a local 
                development district for administrative expenses may be 
                in cash or in kind, fairly evaluated, including space, 
                equipment, and services.
    ``(c) Duties of Local Development Districts.--A local development 
district shall--
            ``(1) operate as a lead organization serving multicounty 
        areas in the region at the local level; and
            ``(2) serve as a liaison between State and local 
        governments, nonprofit organizations (including community-based 
        groups and educational institutions), the business community, 
        and citizens that--
                    ``(A) are involved in multijurisdictional planning;
                    ``(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    ``(C) provide leadership and civic development 
                assistance.

``SEC. 387F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this subtitle, and annually thereafter, the Authority, in 
accordance with such criteria as the Authority may establish, shall 
designate--
            ``(1) as distressed counties, counties in the region that 
        are the most severely and persistently distressed and 
        underdeveloped and have high rates of poverty, unemployment, or 
        outmigration;
            ``(2) as nondistressed counties, counties in the region 
        that are not designated as distressed counties under paragraph 
        (1); and
            ``(3) as isolated areas of distress, areas located in 
        nondistressed counties (as designated under paragraph (2)) that 
        have high rates of poverty, unemployment, or outmigration.
    ``(b) Distressed Counties.--
            ``(1) In general.--The Authority shall allocate at least 75 
        percent of the appropriations made available under section 387M 
        for programs and projects designed to serve the needs of 
        distressed counties and isolated areas of distress in the 
        region.
            ``(2) Funding limitations.--The funding limitations under 
        section 387D(b) shall not apply to a project providing 
        transportation or telecommunication or basic public services to 
        residents of 1 or more distressed counties or isolated areas of 
        distress in the region.
    ``(c) Nondistressed Counties.--
            ``(1) In general.--Except as provided in this subsection, 
        no funds shall be provided under this subtitle for a project 
        located in a county designated as a nondistressed county under 
        subsection (a)(2).
            ``(2) Exceptions.--
                    ``(A) In general.--The funding prohibition under 
                paragraph (1) shall not apply to grants to fund the 
                administrative expenses of local development districts 
                under section 387E(b).
                    ``(B) Multicounty projects.--The Authority may 
                waive the application of the funding prohibition under 
                paragraph (1) to--
                            ``(i) a multicounty project that includes 
                        participation by a nondistressed county; or
                            ``(ii) any other type of project;
                if the Authority determines that the project could 
                bring significant benefits to areas of the region 
                outside a nondistressed county.
                    ``(C) Isolated areas of distress.--For a 
                designation of an isolated area of distress for 
                assistance to be effective, the designation shall be 
                supported--
                            ``(i) by the most recent Federal data 
                        available; or
                            ``(ii) if no recent Federal data are 
                        available, by the most recent data available 
                        through the government of the State in which 
                        the isolated area of distress is located.
    ``(d) Transportation, Telecommunication, and Basic Public 
Infrastructure.--The Authority shall allocate at least 50 percent of 
any funds made available under section 387M for transportation, 
telecommunication, and basic public infrastructure projects authorized 
under paragraphs (1) and (3) of section 387C(a).

``SEC. 387G. DEVELOPMENT PLANNING PROCESS.

    ``(a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the State 
member.
    ``(b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
387B(d)(2).
    ``(c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State may--
            ``(1) consult with--
                    ``(A) local development districts; and
                    ``(B) local units of government; and
            ``(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).
    ``(d) Public Participation.--
            ``(1) In general.--The Authority and applicable State and 
        local development districts shall encourage and assist, to the 
        maximum extent practicable, public participation in the 
        development, revision, and implementation of all plans and 
        programs under this subtitle.
            ``(2) Regulations.--The Authority shall develop guidelines 
        for providing public participation described in paragraph (1), 
        including public hearings.

``SEC. 387H. PROGRAM DEVELOPMENT CRITERIA.

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

``SEC. 387I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    ``(a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
subtitle shall be reviewed by the Authority.
    ``(b) Evaluation by State Member.--An application for a grant or 
any other assistance for a project under this subtitle shall be made 
through and evaluated for approval by the State member of the Authority 
representing the applicant.
    ``(c) Certification.--An application for a grant or other 
assistance for a project shall be approved only on certification by the 
State member that the application for the project--
            ``(1) describes ways in which the project complies with any 
        applicable State development plan;
            ``(2) meets applicable criteria under section 387H;
            ``(3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            ``(4) otherwise meets the requirements of this subtitle.
    ``(d) Votes for Decisions.--On certification by a State member of 
the Authority of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Authority under section 387B(c) shall be required for approval of the 
application.

``SEC. 387J. CONSENT OF STATES.

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

``SEC. 387K. RECORDS.

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

``SEC. 387L. ANNUAL REPORT.

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

``SEC. 387M. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Authority to carry out this subtitle $30,000,000 for each of fiscal 
years 2002 through 2006, to remain available until expended.
    ``(b) Administrative Expenses.--Not more than 5 percent of the 
amount appropriated under subsection (a) for a fiscal year shall be 
used for administrative expenses of the Authority.
    ``(c) Minimum State Share of Grants.--Notwithstanding any other 
provision of this subtitle, for any fiscal year, the aggregate amount 
of grants received by a State and all persons or entities in the State 
under this subtitle shall be not less than \1/3\ of the product 
obtained by multiplying--
            ``(1) the aggregate amount of grants under this subtitle 
        for the fiscal year; and
            ``(2) the ratio that--
                    ``(A) the population of the State (as determined by 
                the Secretary of Commerce based on the most recent 
                decennial census for which data are available); bears 
                to
                    ``(B) the population of the region (as so 
                determined).

``SEC. 387N. TERMINATION OF AUTHORITY.

    ``This subtitle and the authority provided under this subtitle 
expire on October 1, 2006.''.

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

SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              CORPORATION.

    (a) Repeal of Corporation Authorization.--Subtitle G of title XVI 
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5901 et seq.) is repealed.
    (b) Disposition of Assets.--On the date of enactment of this Act--
            (1) the assets, both tangible and intangible, of the 
        Alternative Agricultural Research and Commercialization 
        Corporation (referred to in this section as the 
        ``Corporation''), including the funds in the Alternative 
        Agricultural Research and Commercialization Revolving Fund as 
        of the date of enactment of this Act, are transferred to the 
        Secretary of Agriculture; and
            (2) notwithstanding the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471 et seq.), the Secretary 
        shall have authority to manage and dispose of the assets 
        transferred under paragraph (1) in a manner that, to the 
        maximum extent practicable, provides the greatest return on 
        investment.
    (c) Use of Assets.--
            (1) In general.--Funds transferred under subsection (b), 
        and any income from assets or proceeds from the sale of assets 
        transferred under subsection (b), shall be deposited into an 
        account in the Treasury, and shall remain available to the 
        Secretary until expended, without further appropriation, to 
        pay--
                    (A) any outstanding claims or obligations of the 
                Corporation; and
                    (B) the costs incurred by the Secretary in carrying 
                out this section.
            (2) Final disposition.--On final disposition of all assets 
        transferred under subsection (b), any funds remaining in the 
        account described in paragraph (1) shall be transferred into 
        miscellaneous receipts in the Treasury.
    (d) Conforming Amendments.--
            (1) The following provisions are repealed:
                    (A) Section 730 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 5902 note; 
                Public Law 104-127).
                    (B) Section 9101(3)(Q) of title 31, United States 
                Code.
            (2) Section 401(c) of the Agricultural Research, Education, 
        and Extension Reform Act of 1998 (7 U.S.C. 7621(c)) is amended 
        by striking paragraph (1) and inserting the following:
            ``(1) Technical assistance capability of equity funds.--
        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 increase the 
        technical assistance capability of equity funds.''.
            (3) Section 793(c)(1)(A)(ii)(II) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 
        2204f(c)(1)(A)(ii)(II)) is amended by striking ``subtitle G of 
        title XVI and''.

SEC. 652. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) In General.--Section 2335A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is amended by 
striking ``2002'' and inserting ``2006''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``1997'' and inserting 
``2006''.

             Subtitle E--Rural Electrification Act of 1936

SEC. 661. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

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

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

    ``(a) In General.--Subject to subsection (b), the Secretary 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) 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. 662. EXPANSION OF 911 ACCESS.

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

``SEC. 315. EXPANSION OF 911 ACCESS.

    ``(a) In General.--Subject to such terms and conditions as the 
Secretary may prescribe, the Secretary may make telephone loans under 
this title to State or local governments, Indian tribes (as defined in 
section 4 of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450b)), or other public entities for facilities and 
equipment to expand 911 access in underserved rural areas.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

                       Subtitle F--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. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
              ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
              COMMODITIES AND FOREST PRODUCTS.

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

SEC. 705. POLICY RESEARCH CENTERS.

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

SEC. 706. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 707. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
              RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 708. 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. 709. 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. 710. RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 711. 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. 712. 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. 713. 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 ``35 percent 
        (or a lesser 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. 714. 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 may not exceed $500,000.
    ``(d) Prohibition on Charge of Equipment as Indirect Costs.--The 
cost of acquisition or depreciation of equipment purchased with a grant 
under this section shall not be--
            ``(1) charged as an indirect cost against another Federal 
        grant; or
            ``(2) included as part of the indirect cost pool for 
        purposes of calculating the indirect cost rate of an eligible 
        institution.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2003 through 2006.''.

SEC. 715. 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. 716. 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. 717. 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 2006.
    ``(b) Use of Funds.--Using any authority available to the 
Secretary, the Secretary shall use funds made available under this 
section to carry out agricultural research, education, and extension 
activities 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. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1469 (7 U.S.C. 3315) 
the following:

``SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    ``Except as otherwise provided by law, funds made available to the 
Secretary to carry out a competitive agricultural research, education, 
or extension grant program under this or any other Act shall be 
available for obligation for a 2-year period beginning on October 1 of 
the fiscal year for which the funds are made available.''.

SEC. 719. JOINT REQUESTS FOR PROPOSALS.

    (a) Purposes.--The purposes of this section are--
            (1) to reduce the duplication of administrative functions 
        relating to grant awards and administration among Federal 
        agencies conducting similar types of research, education, and 
        extension programs;
            (2) to maximize the use of peer review resources in 
        research, education, and extension programs; and
            (3) to reduce the burden on potential recipients that may 
        offer similar proposals to receive competitive grants under 
        different Federal programs in overlapping subject areas.
    (b) Authority.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1473A 
(7 U.S.C. 3319a) the following:

``SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.

    ``(a) In General.--In carrying out any competitive agricultural 
research, education, or extension grant program authorized under this 
or any other Act, the Secretary may cooperate with 1 or more other 
Federal agencies (including the National Science Foundation) in issuing 
joint requests for proposals, awarding grants, and administering 
grants, for similar or related research, education, or extension 
projects or activities.
    ``(b) Transfer of Funds.--
            ``(1) Secretary.--The Secretary may transfer funds to, or 
        receive funds from, a cooperating Federal agency for the 
        purpose of carrying out the joint request for proposals, making 
        awards, or administering grants.
            ``(2) Cooperating agency.--The cooperating Federal agency 
        may transfer funds to, or receive funds from, the Secretary for 
        the purpose of carrying out the joint request for proposals, 
        making awards, or administering grants.
            ``(3) Limitations.--Funds transferred or received under 
        this subsection shall be--
                    ``(A) used only in accordance with the laws 
                authorizing the appropriation of the funds; and
                    ``(B) made available by grant only to recipients 
                that are eligible to receive the grant under the laws.
    ``(c) Administration.--
            ``(1) Secretary.--The Secretary may delegate authority to 
        issue requests for proposals, make grant awards, or administer 
        grants, in whole or in part, to a cooperating Federal agency.
            ``(2) Cooperating federal agency.--The cooperating Federal 
        agency may delegate to the Secretary authority to issue 
        requests for proposals, make grant awards, or administer 
        grants, in whole or in part.
    ``(d) Regulations; Rates.--The Secretary and a cooperating Federal 
agency may agree to make applicable to recipients of grants--
            ``(1) the post-award grant administration regulations and 
        indirect cost rates applicable to recipients of grants from the 
        Secretary; or
            ``(2) the post-award grant administration regulations and 
        indirect cost rates applicable to recipients of grants from the 
        cooperating Federal agency.
    ``(e) Joint Peer Review Panels.--Subject to section 1413B, the 
Secretary and a cooperating Federal agency may establish joint peer 
review panels for the purpose of evaluating grant proposals.''.

SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by 
striking ``2002'' and inserting ``2006''.

SEC. 721. AQUACULTURE.

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

SEC. 722. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``2002'' and inserting ``2006''.

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

SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.

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

SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    Section 1668 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5921) is amended--
            (1) by redesignating subsections (e) through (g) as 
        subsections (f) through (h), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Grant Priority.--In selecting projects for which grants shall 
be made under this section, the Secretary shall give priority to public 
and private research or educational institutions and organizations the 
goals of which include--
            ``(1) formation of interdisciplinary teams to review or 
        conduct research during the preapproval process for, and answer 
        questions raised by, the release of new genetically modified 
        agricultural products;
            ``(2) conduct of studies to answer questions relating to 
        biosafety of genetically modified agricultural products;
            ``(3) development of an identity preservation system for 
        genetically modified agricultural products based on the 
        International Standards Organization platform; or
            ``(4) establishment of international partnerships for 
        research and education on biosafety issues, including 
        development of standards to facilitate transboundary movement 
        of plant and animal products of the United States.''.

SEC. 733. 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. 734. 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. 735. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925b) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(4) determining desirable traits for organic commodities 
        using advanced genomics;
            ``(5) pursuing classical and marker-assisted breeding for 
        publicly held varieties of crops and animals optimized for 
        organic systems; and
            ``(6) identifying marketing and policy constraints on the 
        expansion of organic agriculture.''; and
            (2) in subsection (e), by striking ``2002'' and inserting 
        ``2006''.

SEC. 736. 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. 737. 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)(1) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) is amended--
            (1) by striking ``In general.--'' and inserting ``In 
        general.--
                    ``(A) Transfers for fiscal years 1998 through 
                2002.--''; and
            (2) by inserting 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 $145,000,000 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 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7628) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Research Grants.--
            ``(1) In general.--To assist health scientists in obtaining 
        a better understanding of foreign and emerging animal diseases 
        and in developing vaccines, diagnostics, and other control 
        measures for animal diseases, the Secretary may make grants to 
        consortia of land-grant colleges and universities to enhance 
        the ability of the consortia to carry out multi-State research 
        projects that emphasize--
                    ``(A) development and evaluation of rapid 
                diagnostic techniques for animal disease agents 
                considered to be risks for agricultural bioterrorism 
                attack; and
                    ``(B) development of vaccines to prevent animal 
                diseases.
            ``(2) Collaboration.--Research under paragraph (1) shall be 
        conducted in collaboration with scientists from the Department, 
        other Federal agencies, universities, and industry.
            ``(3) Evaluation of diagnostic techniques and vaccines.--
        Research on an animal disease under paragraph (1) shall include 
        evaluation of diagnostic techniques and vaccines under field 
        conditions in countries in which the animal disease occurs.''; 
        and
            (2) in subsection (e), 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 preceding 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 preceding fiscal year.
                    ``(B) Determination of amount.--In determining 
                compliance with subparagraph (A), the Secretary shall 
                include all cooperative extension funds expended by the 
                State in the preceding fiscal year, including Federal, 
                State, and local funds.
            ``(3) Reduction of percentage.--The Secretary may reduce 
        the minimum percentage required to be expended for multistate 
        activities under paragraph (2) by a State in a case of 
        hardship, 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 preceding 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 preceding fiscal 
                year.
                    ``(B) Determination of amount.--In determining 
                compliance with subparagraph (A), the Secretary shall 
                include all cooperative research and extension funds 
                expended by the State in the prior fiscal year, 
                including Federal, State, and local funds.
            ``(2) Reduction of percentage.--The Secretary may reduce 
        the minimum percentage required to be expended for integrated 
        activities under paragraph (1) by a State in a case of 
        hardship, 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 preceding fiscal year.
    ``(d) Waivers.--Notwithstanding subsection (f), for any of fiscal 
years 2003 through 2006, the Secretary may waive the matching funds 
requirement under subsection (c) for any amount above the level of 50 
percent for an eligible institution of a State if the Secretary 
determines that the State will be unlikely to meet the matching 
requirement.''.

                   CHAPTER 4--LAND-GRANT INSTITUTIONS

                         Subchapter A--General

SEC. 771. PRIORITY-SETTING PROCESS.

    Section 102(c) 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.''.

         Subchapter B--Land-Grant Institutions in Insular Areas

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

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) 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. 776. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION FORMULA 
              FUNDS FOR INSULAR AREA LAND-GRANT INSTITUTIONS.

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

SEC. 777. 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''.

                         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''.

                      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 appropriated 
funds 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 shall make competitive grants to support new and 
        established local and regional training, education, outreach, 
        and technical assistance initiatives for beginning farmers or 
        ranchers, including programs and services (as appropriate) 
        relating to--
                    (A) mentoring, apprenticeships, and internships;
                    (B) resources and referral;
                    (C) assisting beginning farmers or ranchers in 
                acquiring land from retiring farmers and ranchers;
                    (D) innovative farm and ranch transfer strategies;
                    (E) entrepreneurship and business training;
                    (F) model land leasing contracts;
                    (G) financial management training;
                    (H) whole farm planning;
                    (I) conservation assistance;
                    (J) risk management education;
                    (K) diversification and marketing strategies;
                    (L) curriculum development;
                    (M) understanding the impact of 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 partner, as determined by 
                the Secretary.
            (3) Term of grant.--The term of a grant under this 
        subsection shall not exceed 3 years.
            (4) Matching requirement.--To be eligible to receive a 
        grant under this subsection, a recipient shall provide a match 
        in the form of cash or in-kind contributions in an amount equal 
        to 25 percent of the funds provided by the grant.
            (5) Set-aside.--Not less than 25 percent of funds used to 
        carry out this subsection for a fiscal year shall be used to 
        support programs and services that address the needs of 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 research foundations maintained by a 
                college or university; and
                    (E) other appropriate partners, 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;
                            (ii) be available to the Secretary without 
                        further appropriation;
                            (iii) remain available until expended; and
                            (iv) be in addition to any funds made 
                        available under paragraph (2).
            (2) Transfers.--
                    (A) In general.--Not later than 30 days after the 
                date of enactment of this Act, and on October 1, 2002, 
                and each October 1 thereafter through October 1, 2005, 
                out of any funds in the Treasury not otherwise 
                appropriated, the Secretary of the Treasury shall 
                transfer to the Secretary to carry out this section 
                $15,000,000, to remain available for 2 years.
                    (B) Receipt and acceptance.--The Secretary shall be 
                entitled to receive the funds and shall accept the 
                funds transferred under subparagraph (A), without 
                further appropriation.

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

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

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

SEC. 798B. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    The Secretary shall ensure that segregated data on the production 
and marketing of organic agricultural products is included in the 
ongoing baseline of data collection regarding agricultural production 
and marketing.

                       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 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 VIII--FORESTRY

SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

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

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

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

SEC. 803. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE RESOURCES 
              EXTENSION ACTIVITIES.

    (a) Sustainable Forestry Outreach Initiative.--The Renewable 
Resources Extension Act of 1978 is amended by inserting after section 
5A (16 U.S.C. 1674a) the following:

``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

    ``The Secretary shall establish a program, to be known as the 
`Sustainable Forestry Outreach Initiative', to educate landowners 
concerning--
            ``(1) the value and benefits of practicing sustainable 
        forestry;
            ``(2) the importance of professional forestry advice in 
        achieving sustainable forestry objectives; and
            ``(3) the variety of public and private sector resources 
        available to assist the landowners in planning for and 
        practicing sustainable forestry.''.
    (b) Renewable Resources Extension Activities.--
            (1) Authorization of appropriations.--Section 6 of the 
        Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
        amended in the first sentence by striking ``2002'' and 
        inserting ``2006''.
            (2) 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. 804. FORESTRY INCENTIVES PROGRAM.

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

SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Forestry cooperative.--The term `forestry 
        cooperative' means an association that is--
                    ``(A) owned and operated by nonindustrial private 
                forest landowners; and
                    ``(B) comprised of members--
                            ``(i) of which at least 50 percent are 
                        farmers or ranchers; and
                            ``(ii) that use sustainable harvesting 
                        practices on private forest land to create a 
                        long-term, sustainable income stream.
            ``(2) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' has the meaning given the 
        term `nonindustrial private forest lands' in section 5(c).
    ``(b) Establishment.--The Secretary shall establish a program, to 
be known as the `sustainable forestry cooperative program', under which 
the Secretary shall provide, to nonprofit organizations on a 
competitive basis, grants to establish, and support sustainable 
harvesting practices carried out by members of, forestry cooperatives.
    ``(c) Use of Funds.--
            ``(1) In general.--Subject to paragraph (2), funds from a 
        grant provided under this section shall be used for--
                    ``(A) predevelopment, development, start-up, 
                capital acquisition, and marketing costs associated 
                with a forestry cooperative; or
                    ``(B) the development or support of a sustainable 
                forestry practice of a member of a forestry 
                cooperative.
            ``(2) Conditions.--
                    ``(A) Development.--The Secretary shall provide 
                funds under paragraph (1)(A) for the development of a 
                new forestry cooperative only to a nonprofit 
                organization with demonstrated expertise in cooperative 
                development, as determined by the Secretary.
                    ``(B) Compliance with plan.--A sustainable forestry 
                practice developed or supported through the use of 
                funds from a grant under this section shall comply with 
                any applicable standards for sustainable forestry 
                described in a comprehensive forest management plan (as 
                defined in section 6(b)(4)) approved by the State 
                forester (or equivalent State official).
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $2,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further 
        appropriation.''.

SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

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

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

    ``(a) Findings and Purposes.--
            ``(1) Findings.--Congress finds that--
                    ``(A) the United States is becoming increasingly 
                dependent on nonindustrial private forest land to 
                supply necessary market commodities and nonmarket 
                conservation values;
                    ``(B) there is a strong demand for expanded 
                assistance programs for owners of nonindustrial private 
                forest land because the majority of the wood supply of 
                the United States comes from nonindustrial private 
                forest land;
                    ``(C) soil, water, and air quality, fish and 
                wildlife habitat, aesthetic values, and opportunities 
                for outdoor recreation in the United States would be 
                maintained and improved through good stewardship of 
                nonindustrial private forest land;
                    ``(D) the products and services resulting from 
                stewardship of nonindustrial private forest land 
                contribute to the economic, social, and ecological 
                health and diversity of rural communities;
                    ``(E) catastrophic wildfires threaten human lives, 
                property, forests, and other resources;
                    ``(F) Federal and State cooperation in forest fire 
                prevention and control has proven effective and 
                valuable because properly managed forest stands are 
                less susceptible to catastrophic fire, as demonstrated 
                by the catastrophic fire seasons of 1998 and 2000;
                    ``(G) owners of private nonindustrial forest land 
                face increased pressure to make that land available for 
                development and other uses, resulting in forest land 
                loss and fragmentation that reduces the ability of 
                private forest land to provide a full range of societal 
                benefits;
                    ``(H)(i) complex, long-rotation forest investments, 
                including sustainable hardwood management are often the 
                most difficult commitments for owners of nonindustrial 
                private forest land; and
                    ``(ii) such investments on nonindustrial private 
                forest land should receive consideration equal to that 
                given to owners with other management objectives for 
                nonindustrial private forest land under cost-share 
                programs;
                    ``(I) the investment of a single Federal dollar in 
                State and private forestry programs is estimated to 
                leverage, on the average, $9 from State, local, and 
                private sources; and
                    ``(J) comprehensive, multiresource planning 
                assistance made available to each landowner before the 
                provision of technical assistance would provide an 
                opportunity to ensure that the landowner is aware of 
                the many projects and activities eligible for cost-
                share assistance.
            ``(2) Purposes.--The purposes of this section are--
                    ``(A) to strengthen the commitment of the Secretary 
                to sustainable forest management to enhance the 
                productivity of timber, fish and wildlife habitat, soil 
                and water quality, wetland, recreational resources, and 
                aesthetic values of forest land; and
                    ``(B) to establish a coordinated and cooperative 
                Federal, State, and local sustainable forestry program 
                for the establishment, management, maintenance, 
                enhancement, and restoration of forests on 
                nonindustrial private forest land.
    ``(b) 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 Forest Management Program established under 
        subsection (c)(1).
            ``(4) Management plan.--The term `management plan' means a 
        comprehensive stewardship or forest management plan submitted 
        under section 5(f)(1).
            ``(5) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' has the meaning given the 
        term `nonindustrial private forest lands' in section 5(c).
            ``(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.--The Secretary shall establish a 
        sustainable forest management program to--
                    ``(A) provide financial assistance to State 
                foresters; and
                    ``(B) encourage the long-term sustainability of 
                nonindustrial private forest land in the United States 
                by assisting the owners of nonindustrial private forest 
                land 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, through the State 
        foresters, shall implement the initiative--
                    ``(A) in coordination with the Committees; and
                    ``(B) in consultation with--
                            ``(i) other Federal, State, and local 
                        natural resource management agencies;
                            ``(ii) institutions of higher education; 
                        and
                            ``(iii) a full range of private sector 
                        interests.
    ``(d) State Priority Plan.--
            ``(1) In general.--As a condition of receipt of funding 
        under the initiative, a State Forester and the Committee of the 
        State shall jointly develop and submit to the Secretary a 5-
        year plan that describes the funding priorities of the State in 
        meeting the goals of the initiative.
            ``(2) Public participation.--The plan submitted to the 
        Secretary under paragraph (1) shall include documentation of 
        the efforts of the State to provide for public participation in 
        the development of the plan.
    ``(e) Objectives.--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 maintenance and enhancement of fish and wildlife 
        habitat;
            ``(5) the enhancement of soil, air, and water quality;
            ``(6) through the use of agroforestry practices, the 
        reduction of soil erosion and maintenance of soil quality;
            ``(7) the maintenance and enhancement of the forest 
        landbase;
            ``(8) the reduction of the threat of catastrophic 
        wildfires; and
            ``(9) the preservation of aesthetic quality and 
        opportunities for outdoor recreation.
    ``(f) Eligibility.--
            ``(1) Cost share assistance.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), an owner shall be eligible to receive cost-share 
                assistance from a State forester under the initiative 
                if the owner--
                            ``(i) develops a management plan in 
                        accordance with subsection (g) that--
                                    ``(I) addresses site-specific 
                                activities and practices; and
                                    ``(II) is approved by the State 
                                forester;
                            ``(ii) agrees to implement approved 
                        activities in accordance with 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.--
                The Secretary may approve the provision of cost-share 
                assistance to an owner that owns more than 1,000 but 
                less than 5,000 acres of nonindustrial private forest 
                land if the Secretary, in consultation with the 
                appropriate Committee, determines that significant 
                public benefits will accrue as a result of the 
                approval.
            ``(2) Payment for plan development.--The Secretary, through 
        a State forester, may provide cost-share assistance to an owner 
        to develop a management plan.
            ``(3) Limitations.--An owner shall receive no cost-share 
        assistance for management of nonindustrial private forest land 
        under this section if the owner receives cost-share assistance 
        for that land under--
                    ``(A) the forestry incentives program under section 
                4; or
                    ``(B) the stewardship incentives program under 
                section 6.
            ``(4) Rate; schedule.--The Secretary shall determine the 
        rate and timing of cost-share payments.
            ``(5) Amount.--
                    ``(A) Percentage of cost.--Subject to subparagraph 
                (B), a cost-share payment shall not exceed the lesser 
                of an amount equal to--
                            ``(i) 75 percent of the total cost of 
                        implementing the project or activity; or
                            ``(ii) such lesser percentage of the total 
                        cost of implementing the project or activity as 
                        is determined by the appropriate State 
                        forester.
                    ``(B) Aggregate payment limit.--The Secretary shall 
                determine the maximum aggregate amount of cost-share 
                payments that an owner may receive under this section.
            ``(6) State priorities.--The Secretary, in consultation 
        with the appropriate State forester and Committee, and in 
        consultation with a professional resource manager, may 
        establish State priorities for cost sharing under the 
        initiative that, consistent with the objectives of the 
        initiative, will promote the forest management objectives of 
        the State.
    ``(g) Management plan.--An owner that seeks to enroll nonindustrial 
private forest land in the initiative shall--
            ``(1) submit to the State forester a management plan that--
                    ``(A) meets the requirements of this section; and
                    ``(B)(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, air, range, and aesthetic quality, 
                recreation, timber, water, wetland, and fish and 
                wildlife resources on the land in a manner that is 
                compatible with the objectives of the owner;
                    ``(iii) addresses any criteria established by the 
                applicable State and the applicable Committee; and
                    ``(iv)(I) at a minimum, applies to the portion of 
                the land on which any project or activity funded under 
                the initiative will be carried out; or
                    ``(II) in a case in which a project or activity 
                described in subclause (I) may affect acreage outside 
                the portion of the land on which the project or 
                activity is carried out, applies to all land of the 
                owner that is in forest cover and that may potentially 
                be affected by the project or activity; and
            ``(2) agree that all projects and activities conducted on 
        the land shall be consistent with the management plan.
    ``(h) Approved Activities.--
            ``(1) In general.--The Secretary, in consultation with the 
        State forester and the appropriate Committee, shall develop for 
        each State a list of approved forest activities and practices 
        eligible for cost-share assistance 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 planting of trees in riparian 
                        areas; and
                            ``(ii) the enhanced management and 
                        maintenance of native vegetation on land vital 
                        to water quality;
                    ``(E) the preservation, restoration, or development 
                of habitat for plants, fish, and wildlife;
                    ``(F)(i) the control, detection, monitoring, and 
                prevention of the spread of invasive species and pests 
                on nonindustrial private forest land; and
                    ``(ii) the provision of resources for the 
                restoration of nonindustrial private forest land 
                affected by invasive species and pests;
                    ``(G) the restoration of natural forests;
                    ``(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 acquisition of permanent easements to 
                maintain natural forest cover and protect important 
                forest values; and
                    ``(K) the conduct of other activities approved by 
                the Secretary, in consultation with the State forester 
                and the appropriate Committees.
    ``(i) 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.
    ``(j) Reports.--
            ``(1) Interim report.--Not later than 2 years and 180 days 
        after the date of implementation of a State priority plan under 
        subsection (d), the State implementing the plan shall submit to 
        the Secretary an interim report describing the status of 
        projects and activities funded under the plan as of that date.
            ``(2) Final report.--Not later than 5 years after the date 
        of implementation of a State priority plan under subsection 
        (d), the State implementing the plan shall submit to the 
        Secretary a final report describing the status of all projects 
        and activities funded under the plan as of that date.
    ``(k) Distribution.--The Secretary, through the State foresters, 
shall distribute funds available for cost sharing under the initiative 
only after--
            ``(1) assessing public benefits that would result from the 
        distribution; and
            ``(2) considering--
                    ``(A) the total acreage of nonindustrial private 
                forest land in each State (considering the objectives 
                of the initiative as described in subsection (e));
                    ``(B) the potential productivity of that land;
                    ``(C) the number of owners eligible for cost 
                sharing in each State;
                    ``(D) the opportunities to enhance nontimber 
                resources on that land, including--
                            ``(i) the protection of riparian buffers 
                        and forest wetland;
                            ``(ii) the preservation of fish and 
                        wildlife habitat;
                            ``(iii) the enhancement of soil, air, and 
                        water quality; and
                            ``(iv) the preservation of aesthetic 
                        quality and opportunities for outdoor 
                        recreation;
                    ``(E) the anticipated demand for timber and 
                nontimber resources in each State;
                    ``(F) the need to improve forest health to minimize 
                the damaging effects of catastrophic fire, insects, 
                disease, or weather;
                    ``(G) the need and demand for agroforestry 
                practices in each State;
                    ``(H) the need to maintain and enhance the forest 
                landbase; and
                    ``(I) the need for afforestation, reforestation, 
                and timber stand improvement.
    ``(l) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary of Agriculture to 
        carry out this section $48,000,000, to remain available until 
        expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further 
        appropriation.''.

SEC. 807. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) Findings.--Congress finds that--
            (1) the severity and intensity of wildfires have increased 
        dramatically over the past few decades as a result of past fire 
        and land management policies;
            (2) the record 2000 fire season is a prime example of what 
        can be expected if action is not taken to reduce the risk of 
        catastrophic wildfires;
            (3) wildfires threaten not only the forested resources of 
        the United States, but also the thousands of communities 
        intermingled with wildland in the wildland-urban interface;
            (4) wetland forests provide essential ecological services, 
        such as filtering pollutants, buffering important rivers and 
        estuaries, and minimizing flooding, that make the protection 
        and restoration of those forests worthy of special focus;
            (5) the National Fire Plan, if implemented to achieve 
        appropriate priorities, is the proper, coordinated, and most 
        effective means to address the issue of wildfires;
            (6) while adequate authorities exist to address the problem 
        of wildfires at the landscape level on Federal land, there is 
        limited authority to take action on most private land where the 
        largest threat to life and property lies; and
            (7) there is a significant Federal interest in enhancing 
        the protection of communities from wildfire.
    (b) Enhanced Protection.--The Cooperative Forestry Assistance Act 
of 1978 is amended by inserting after section 10 (16 U.S.C. 2106) the 
following:

``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

    ``(a) Cooperative Management Relating to Wildfire Threats.--
Notwithstanding the Federal Fire Prevention and Control Act of 1974 (15 
U.S.C. 2201 et seq.), the Secretary may cooperate with State foresters 
and equivalent State officials to--
            ``(1) assist in the prevention, control, suppression, and 
        prescribed use of fires (including through the provision of 
        financial, technical, and related assistance);
            ``(2) protect communities from wildfire threats;
            ``(3) enhance the growth and maintenance of trees and 
        forests in a manner that promotes overall forest health; and
            ``(4) ensure the continued production of all forest 
        resources, including timber, outdoor recreation opportunities, 
        wildlife habitat, and clean water, through conservation of 
        forest cover on watersheds, shelterbelts, and windbreaks.
    ``(b) Community and Private Land Fire Assistance Program.--
            ``(1) In general.--The Secretary shall establish a program 
        to be known as the `Community and Private Land Fire Assistance 
        Program' (referred to in this section as the `Program')--
                    ``(A) to focus the Federal role in promoting 
                optimal firefighting efficiency at the Federal, State, 
                and local levels;
                    ``(B) to provide increased assistance to Federal 
                projects that establish landscape level protection from 
                wildfires;
                    ``(C) to expand outreach and education programs 
                concerning fire prevention to homeowners and 
                communities; and
                    ``(D) to establish defensible space against 
                wildfires around the homes and property of private 
                landowners.
            ``(2) Administration and implementation.--The Program shall 
        be administered by the Secretary and carried out through the 
        State forester or equivalent State official.
            ``(3) Components.--Notwithstanding any other provision of 
        law, the Secretary may carry out under the Program, on National 
        Forest System land and non-Federal land determined by the 
        Secretary in consultation with State foresters and Committees--
                    ``(A) fuel hazard mitigation and prevention;
                    ``(B) invasive species management;
                    ``(C) multiresource wildfire and community 
                protection planning for traditionally noncommercial 
                wood;
                    ``(D) community and landowner education 
                enterprises, including the program known as `FIREWISE';
                    ``(E) market development and expansion;
                    ``(F) improved use of wood; and
                    ``(G) restoration projects.
            ``(4) Considerations.--Notwithstanding the Competition in 
        Contracting Act of 1984 (10 U.S.C. 2340 note; 98 Stat. 1175) or 
        any other applicable law, in carrying out projects under the 
        Program, the Secretary shall contract with local persons or 
        entities to the maximum extent practicable.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $35,000,000 for 
each of fiscal years 2002 through 2006.''.

SEC. 808. WATERSHED FORESTRY ASSISTANCE PROGRAM.

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

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

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

SEC. 809. GENERAL PROVISIONS.

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

SEC. 810. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

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

                            TITLE IX--ENERGY

SEC. 901. FINDINGS.

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

SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

    The Consolidated Farm and Rural Development Act (as amended by 
section 642) is amended by adding at the end the following:

                       ``Subtitle L--Clean Energy

``SEC. 388A. DEFINITIONS.

    In this subtitle:
            ``(1) Biomass.--The term `biomass' means--
                    ``(A) any organic material from a plant that is 
                planted exclusively for the purpose of being used to 
                produce a biobased product; and
                    ``(B) any solid nonhazardous cellulosic waste 
                material that--
                            ``(i) is segregated from other waste 
                        material; and
                            ``(ii) is derived from--
                                    ``(I) forest-related mill residues, 
                                precommercial thinnings, slash, and 
                                brush, but not including old-growth 
                                timber;
                                    ``(II) animal waste;
                                    ``(III) urban sources, including 
                                waste pallets, crates, dunnage, 
                                manufacturing and construction wood 
                                waste, and landscape or right-of-way 
                                tree trimmings, but not including 
                                unsegregated municipal solid waste 
                                (garbage), or paper that is commonly 
                                recycled; or
                                    ``(IV) agriculture sources, 
                                including orchard tree crops, vineyard, 
                                grain, legumes, sugar, and other crop 
                                by-products or residues.
            ``(2) Renewable energy.--The term `renewable energy' means 
        energy derived from a wind, solar, biomass, geothermal, or 
        hydrogen source.
            ``(3) Rural small business.--The term `rural small 
        business' has the meaning that the Secretary shall prescribe by 
        regulation.

               ``CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT

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

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Biobased product.--The term `biobased product' means 
        a commercial or industrial product (other than food or feed) 
        that utilizes biological products or renewable domestic 
        agricultural (plant, animal, and marine) or forestry materials.
            ``(3) Environmentally preferable.--The term 
        `environmentally preferable', with respect to a product, refers 
        to a product that has a lesser or reduced effect on human 
        health and the environment when compared with competing 
        products that serve the same purpose.
    ``(b) Biobased Product Purchasing.--
            ``(1) Mandatory purchasing requirement for listed biobased 
        products.--
                    ``(A) In general.--Not later than the date that is 
                180 days after the date of enactment of this subtitle, 
                the head of each Federal agency shall ensure that, 
                except as provided in subparagraph (B), in purchasing 
                any product, the Federal agency purchases a biobased 
                product, rather than a comparable nonbiobased product, 
                if the biobased product is listed on the list of 
                biobased products published under subsection (c)(1).
                    ``(B) Biobased product not reasonably comparable.--
                A Federal agency shall not be required to purchase a 
                biobased product under subparagraph (A) if the 
                purchasing procurement officer submits to the Secretary 
                and the Office of Federal Procurement Policy a written 
                determination that the biobased product is not 
                reasonably comparable to nonbiobased products in price, 
                performance, or availability.
                    ``(C) Conflicting requirements.--The Secretary and 
                the Administrator shall jointly promulgate regulations 
                under which Federal agencies shall comply in cases of a 
                conflict between the biobased product purchasing 
                requirement under subparagraph (A) and the recovered 
                material purchasing requirement under section 6002 of 
                the Solid Waste Disposal Act (42 U.S.C. 6962).
            ``(2) Purchasing of nonlisted biobased products.--The head 
        of each Federal agency shall encourage, to the maximum extent 
        practicable, when not required to purchase a biobased product 
        that is listed on the list of biobased products published under 
        subsection (c)(1), that the agency purchases available biobased 
        products that are not listed on the list.
    ``(c) Administrative Action.--
            ``(1) List of biobased products.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subtitle, and annually 
                thereafter, the Secretary, in consultation with the 
                Administrator and the National Institute of Standards 
                and Technology, shall publish a list of biobased 
                products.
                    ``(B) Environmentally preferable biobased 
                products.--To the maximum extent practicable, the 
                Secretary shall include on the list under paragraph (1) 
                biobased products that are environmentally preferable.
                    ``(C) Grants.--The Secretary may make grants to 
                eligible (as determined by the Secretary) persons, 
                businesses, or institutions to assist in collecting 
                data concerning the evaluation of and lifecycle 
                analyses of biobased products for use in making the 
                determinations necessary to carry out paragraph (1).
            ``(2) Guidance.--Not later than 240 days after the date of 
        enactment of this subtitle, the Office of Federal Procurement 
        Policy and FAR Council shall amend the Federal Acquisition 
        Regulation to include guidance on the requirement under 
        subsection (b).
    ``(d) Education and Outreach Program.--The Secretary, in 
cooperation with the Defense Acquisition University and the Federal 
Acquisition Institute, shall conduct education programs for all Federal 
procurement officers regarding the availability and efficacy of 
biobased products and the requirement of subsection (b).
    ``(e) Labeling.--
            ``(1) In general.--The Secretary shall develop a program, 
        similar to the Energy Star program of the Department of Energy 
        and the Environmental Protection Agency, under which the 
        Secretary authorizes producers of environmentally preferable 
        biobased products to use a label that identifies the products 
        as environmentally preferable biobased products.
            ``(2) Environmentally preferable biobased products.--To the 
        maximum extent practicable, the Secretary shall ensure that 
        biobased products authorized to use a label under paragraph (1) 
        are environmentally preferable.
            ``(3) Contracting.--In carrying out paragraph (1), the 
        Secretary may contract with appropriate entities with expertise 
        in product labeling and standard setting.
    ``(f) Goal.--It shall be the goal of each Federal agency in each 
year to purchase biobased products of an aggregate value that is not 
less than 5 percent of the aggregate value of all products purchased by 
the Federal agency during the preceding year.
    ``(g) Reports.--The Secretary and the Office of Federal Procurement 
Policy shall jointly submit to Congress an annual report that, for the 
preceding year, describes the extent of--
            ``(1) compliance by each Federal agency with subsection 
        (b); and
            ``(2) the success of each Federal agency in achieving the 
        goal stated in subsection (f).
    ``(h) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $2,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

``SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to support the 
commercialization of new and emerging technologies for the conversion 
of cellulosic biomass into petroleum substitutes, so as to--
            ``(1) develop transportation fuels and chemicals from 
        renewable sources;
            ``(2) reduce the dependence of the United States on 
        imported oil;
            ``(3) reduce greenhouse gas emissions;
            ``(4) diversify markets for raw agricultural and forestry 
        products; and
            ``(5) create jobs and enhance the economic development of 
        the rural economy.
    ``(b) Definitions.--In this section:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Biomass Research and Development Technical Advisory 
        Committee established by section 306 of the Biomass Research 
        and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 
        106-224).
            ``(2) Biorefinery.--The term `biorefinery' means equipment 
        and processes that--
                    ``(A) convert cellulosic biomass into bioenergy 
                fuels and chemicals; and
                    ``(B) may produce electricity as a byproduct.
            ``(3) Board.--The term `Board' means the Biomass Research 
        and Development Board established by section 305 of the Biomass 
        Research and Development Act of 2000 (7 U.S.C. 7624 note; 
        Public Law 106-224).
    ``(c) Grants.--The Secretary, in addition to exercising authority 
to make loans and loan guarantees under other law, shall make grants to 
eligible entities to assist in paying the cost of development and 
construction of biorefineries to carry out projects to demonstrate the 
commercial viability of 1 or more processes for converting cellulosic 
biomass to fuels or chemicals.
    ``(d) Eligible Entities.--A corporation, farm cooperative, 
association of farmers, national laboratory, university, or consortium 
comprised of any of those entities shall be eligible to receive a grant 
under subsection (c).
    ``(e) Competitive Basis for Awards.--
            ``(1) In general.--The Secretary shall make grants under 
        subsection (c) for not more than 3 projects per year, selected 
        on a competitive basis in consultation with the Board and 
        Advisory Committee.
            ``(2) Selection criteria.--
                    ``(A) In general.--The Secretary shall select 
                projects to receive grants under subsection (c)--
                            ``(i) based primarily on the likelihood 
                        that the projects will demonstrate the 
                        commercial viability of a process for 
                        converting cellulosic biomass to fuels or 
                        chemicals; and
                            ``(ii) based secondarily on the likelihood 
                        that the projects will produce electricity as a 
                        byproduct.
                    ``(B) Criteria.--The criteria to be considered 
                under subparagraph (A) shall include--
                            ``(i) the potential market for the product 
                        or products;
                            ``(ii) the amount of petroleum the product 
                        will displace;
                            ``(iii) the level of financial 
                        participation by the applicants;
                            ``(iv) the unavailability of adequate 
                        funding from other sources;
                            ``(v) the impact on resource conservation 
                        and the environment;
                            ``(vi) the participation of producer 
                        associations and cooperatives; and
                            ``(vii) the timeframe in which the project 
                        will be operational.
    ``(f) Cost Sharing.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Federal share of the cost of a project assisted with a grant 
        under subsection (c) shall not exceed 30 percent of the cost of 
        the project.
            ``(2) Increased federal share.--The Secretary may increase 
        the amount of the Federal share under paragraph (1) to not more 
        than 50 percent for a project that the Secretary finds 
        particularly meritorious.
            ``(3) Form of non-federal share.--The non-Federal share of 
        the cost of a project may be made in the form of cash or the 
        provision of services, material, or other in-kind 
        contributions.
    ``(g) Regulations.--The Secretary may promulgate such regulations 
as are appropriate to carry out this section.
    ``(h) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $15,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

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

    ``(a) Findings.--Congress finds that--
            ``(1) biodiesel fuel use can help reduce greenhouse gas 
        emissions and public health risks associated with air 
        pollution;
            ``(2) biodiesel fuel use enhances energy security by 
        reducing petroleum consumption;
            ``(3) biodiesel fuel is nearing the transition from the 
        research and development phase to commercialization;
            ``(4) biodiesel fuel is still relatively unknown to the 
        public and even to diesel fuel users; and
            ``(5) education of, and provision of technical support to, 
        current and future biodiesel fuel users will be critical to the 
        widespread use of biodiesel fuel.
    ``(b) Establishment.--The Secretary shall, under such terms and 
conditions as are appropriate, offer 1 or more competitive grants to 
eligible entities to educate the public and major stakeholders about 
the benefits of biodiesel fuel use.
    ``(c) Eligible Entities.--To receive a grant under subsection (b), 
an entity--
            ``(1) shall be a nonprofit organization; and
            ``(2) shall have demonstrated expertise in biodiesel fuel 
        production, use, and distribution.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2002 through 2006, to remain available until expended.

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

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

    ``(a) In General.--The Secretary, acting through the Rural Business 
Cooperative Service, in addition to exercising authority to make loans 
and loan guarantees under other law, shall establish a program under 
which the Secretary shall competitively award grants to assist farmers 
and ranchers in projects to establish new farmer or rancher 
cooperatives or other rural business ventures to--
            ``(1) enable farmers and ranchers to become owners of 
        sources of renewable electric energy and marketers of electric 
        energy produced from renewable sources;
            ``(2) provide new income streams for farmers and ranchers, 
        particularly in rural areas;
            ``(3) increase the amount of electricity available from 
        renewable energy sources; and
            ``(4) provide environmental and public health benefits to 
        rural communities and the United States as a whole.
    ``(b) Ownership Requirement.--At least 50 percent of the interest 
in a rural business venture assisted with a grant under subsection (a) 
shall be owned by farmers or ranchers.
    ``(c) Maximum Amount of Grant.--The amount of a grant made under 
subsection (a) shall not exceed $500,000 for a fiscal year.
    ``(d) Cost Sharing.--The Federal share of the cost of a project 
assisted with a grant under subsection (a) shall not exceed 50 percent 
of the cost of the project.
    ``(e) Use of Grant Funds.--
            ``(1) Permitted uses.--A recipient of a grant under 
        subsection (a) may use the grant funds to--
                    ``(A) develop a business plan or perform a 
                feasibility study to establish a viable marketing 
                opportunity for renewable electric energy generation 
                and sale; or
                    ``(B) provide capital for start-up costs associated 
                with the rural business venture or the promotion of the 
                aggregation of renewable electric energy sources.
            ``(2) Prohibited uses.--A recipient of a grant under 
        subsection (a) shall not use the grant funds for planning, 
        repair, rehabilitation, acquisition, or construction of a 
        building or other facility.
    ``(f) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $18,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

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

    ``(a) In General.--The Secretary, acting through the Rural Business 
Cooperative Service, shall make competitive grants to eligible entities 
to enable the eligible entities to carry out a program to assist 
farmers, ranchers, and rural small businesses in becoming more energy 
efficient and in using renewable energy technology.
    ``(b) Eligible Entities.--Entities eligible to carry out a program 
under subsection (a) include--
            ``(1) State energy or agricultural offices;
            ``(2) regional or State-based energy organizations;
            ``(3) land grant or other universities;
            ``(4) farm bureaus or farm organizations;
            ``(5) rural electric cooperatives and utilities; and
            ``(6) nonprofit organizations.
    ``(c) Merit Review.--
            ``(1) Merit review panel.--The Secretary shall establish a 
        merit review panel to review applications for grants under 
        subsection (a) that draws on the expertise of other Federal 
        agencies (including the Department of Energy and the 
        Environmental Protection Agency), industry, and nongovernmental 
        organizations.
            ``(2) Selection criteria.--In reviewing applications of 
        eligible entities to receive grants under subsection (a), the 
        merit review panel shall consider--
                    ``(A) the ability and expertise of the eligible 
                entity in providing professional energy audits and 
                renewable energy assessments;
                    ``(B) the geographic scope of the program proposed 
                by the eligible entity;
                    ``(C) the number of farmers, ranchers, and rural 
                small businesses to be assisted by the program;
                    ``(D) the potential for energy savings and 
                environmental and public health benefits resulting from 
                the program; and
                    ``(E) the plan of the eligible entity for educating 
                farmers, ranchers, and rural small businesses on the 
                benefits of energy efficiency and renewable energy 
                development.
    ``(d) Use of Grant Funds.--A recipient of a grant under subsection 
(a) shall use the grant funds to--
            ``(1)(A) conduct energy audits for farmers, ranchers, and 
        rural small businesses to provide farmers, ranchers, and rural 
        small businesses recommendations for energy efficiency and 
        renewable energy development opportunities, especially wind 
        power; and
            ``(B) conduct workshops on that subject as appropriate;
            ``(2) make farmers, ranchers, and rural small businesses 
        aware of and ensure that they have access to--
                    ``(A) financial assistance under section 388G; and
                    ``(B) other Federal, State, and local financial 
                assistance programs for which farmers, ranchers, and 
                rural small businesses may be eligible; and
            ``(3) arrange private financial assistance to farmers, 
        ranchers, and rural small businesses on favorable terms.
    ``(e) Cost Sharing.--
            ``(1) In general.--A recipient of a grant under subsection 
        (a) that conducts an energy audit for a farmer, rancher, or 
        rural small business under subsection (d)(1) shall require the 
        farmer, rancher, or rural small business to pay at least 25 
        percent of the cost of the audit.
            ``(2) Implementation of recommendations.--If a farmer, 
        rancher, or rural small business substantially implements the 
        recommendations made in connection with an energy audit, the 
        Secretary may reimburse the farmer, rancher, or rural small 
        business the amount that is equal to the share of the cost paid 
        by the farmer, rancher, or rural small business under paragraph 
        (1).
    ``(f) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $20,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

``SEC. 388G. GRANTS TO FARMERS, RANCHERS, AND RURAL SMALL BUSINESSES 
              FOR RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY 
              IMPROVEMENTS.

    ``(a) In General.--The Secretary, in addition to exercising 
authority to make loans and loan guarantees under other law, shall make 
grants to farmers, ranchers, and rural small businesses to--
            ``(1) purchase renewable energy systems; and
            ``(2) make energy efficiency improvements.
    ``(b) Eligibility of Farmers and Ranchers.--To be eligible to 
receive a grant under subsection (a) for a fiscal year, a farmer or 
rancher shall have produced not more than $1,000,000 in market value of 
agricultural products during the preceding fiscal year.
    ``(c) Cost Sharing.--
            ``(1) Renewable energy systems.--
                    ``(A) In general.--The Federal share of the cost of 
                a renewable energy system shall not exceed 50 percent 
                of the cost of the renewable energy system.
                    ``(B) Considerations.--In determining the amount of 
                the Federal share, the Secretary shall take into 
                consideration--
                            ``(i) the type of renewable energy system 
                        to be purchased, with priority given to wind 
                        power systems;
                            ``(ii) the estimated amount of energy to be 
                        generated or displaced by the renewable energy 
                        system;
                            ``(iii) the expected environmental benefits 
                        of the renewable energy system;
                            ``(iv) the extent to which the renewable 
                        energy system will be replicable; and
                            ``(v) other factors as appropriate.
            ``(2) Energy efficiency improvements.--
                    ``(A) In general.--The Federal share of the cost of 
                an energy efficiency improvement shall not exceed 50 
                percent of the cost of the energy efficiency 
                improvement.
                    ``(B) Considerations.--In determining the amount of 
                the Federal share, the Secretary shall take into 
                consideration--
                            ``(i) the estimated payback period of the 
                        improvement;
                            ``(ii) the amount of energy savings 
                        expected to be derived from the improvement; 
                        and
                            ``(iii) other factors as appropriate.
    ``(d) Energy Audit and Renewable Energy Development Program.--
            ``(1) Preference.--In making grants under subsection (a), 
        the Secretary shall give preference to participants in the 
        energy audit and renewable energy development program under 
        section 388F.
            ``(2) Reservation of funding.--The Secretary shall reserve 
        at least 25 percent of the amount made available to carry out 
        this section for each of fiscal years 2002 through 2006 for 
        grants to participants in the energy audit and renewable energy 
        development program under section 388F.
    ``(e) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $35,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the and shall accept the funds transferred 
        under paragraph (1), without further appropriation.

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

    ``(a) In General.--The Secretary, in consultation with the 
Secretary of Energy, shall establish a program under which the 
Secretary shall competitively award grants or enter into contracts or 
cooperative agreements for--
            ``(1) projects to demonstrate the use of hydrogen 
        technologies and fuel cell technologies in farm and rural 
        applications; and
            ``(2) as appropriate, studies of the technical, 
        environmental, and economic viability of innovative hydrogen 
        and fuel cell technologies not ready for demonstration.
    ``(b) Selection Criteria.--In selecting projects for grants, 
contracts, and cooperative agreements under subsection (a)(1), the 
Secretary shall give preference to projects that demonstrate 
technologies that--
            ``(1) are innovative;
            ``(2) use renewable energy sources;
            ``(3) produce multiple sources of energy;
            ``(4) provide significant environmental benefits;
            ``(5) are likely to be economically competitive; and
            ``(6) have potential for commercialization as mass-
        produced, farm-sized systems.
    ``(c) Cost Sharing.--The Federal share of the cost of a project 
assisted with a grant, contract, or cooperative agreement under 
subsection (a) shall not exceed 50 percent of the cost of the project.
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subtitle, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $5,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further appropriation.

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

    ``The Secretary, acting through the Cooperative State Research, 
Education, and Extension Service and in consultation with the Natural 
Resources Conservation Service, regional biomass programs under the 
Department of Energy, and other entities as appropriate, shall provide 
education and technical assistance to farmers and ranchers for the 
development and marketing of renewable energy resources.

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

``SEC. 388J. RESEARCH.

    ``(a) Basic Research.--
            ``(1) In general.--The Secretary shall carry out research 
        in the areas of soil science that promote understanding of--
                    ``(A) the net sequestration of organic carbon in 
                soil; and
                    ``(B) net emissions of other greenhouse gases from 
                agriculture.
            ``(2) Agricultural research service.--The Secretary, acting 
        through the Agricultural Research Service, shall collaborate 
        with other Federal agencies in developing data and carrying out 
        research addressing soil carbon fluxes (losses and gains) and 
        net emissions of methane and nitrous oxide from cultivation and 
        animal management activities.
            ``(3) Cooperative state research extension and education 
        service.--
                    ``(A) In general.--The Secretary, acting through 
                the Cooperative State Research Extension and Education 
                Service, shall establish a competitive grant program to 
                carry out research on the matters described in 
                paragraph (1) by land grant universities and other 
                research institutions.
                    ``(B) Consultation on research topics.--Before 
                issuing a request for proposals for basic research 
                under paragraph (1), the Cooperative State Research, 
                Education, and Extension Service shall consult with the 
                Agricultural Research Service to ensure that proposed 
                research areas are complementary with and do not 
                duplicate research projects underway at the 
                Agricultural Research Service or other Federal 
                agencies.
    ``(b) Applied Research.--
            ``(1) In general.--The Secretary shall carry out applied 
        research in the areas of soil science, agronomy, agricultural 
        economics, and other agricultural sciences to--
                    ``(A) promote understanding of--
                            ``(i) how agricultural and forestry 
                        practices affect the sequestration of organic 
                        and inorganic carbon in soil and net emissions 
                        of other greenhouse gases;
                            ``(ii) how changes in soil carbon pools are 
                        cost-effectively measured, monitored, and 
                        verified; and
                            ``(iii) how public programs and private 
                        market approaches can be devised to incorporate 
                        carbon sequestration in a broader societal 
                        greenhouse gas emission reduction effort;
                    ``(B) develop methods for establishing baselines 
                for measuring the quantities of carbon and other 
                greenhouse gases sequestered; and
                    ``(C) evaluate leakage and performance issues.
            ``(2) Requirements.--To the maximum extent practicable, 
        applied research under paragraph (1) shall--
                    ``(A) draw on existing technologies and methods; 
                and
                    ``(B) strive to provide methodologies that are 
                accessible to a nontechnical audience.
            ``(3) Minimization of adverse environmental impacts.--All 
        applied research under paragraph (1) shall be conducted with an 
        emphasis on minimizing adverse environmental impacts.
            ``(4) Natural resources conservation service.--The 
        Secretary, acting through the Natural Resources Conservation 
        Service, shall collaborate with other Federal agencies in 
        developing new measuring techniques and equipment or adapting 
        existing techniques and equipment to enable cost-effective and 
        accurate monitoring and verification, for a wide range of 
        agricultural and forestry practices, of--
                    ``(A) changes in soil carbon content in 
                agricultural soils, plants, and trees; and
                    ``(B) net emissions of other greenhouse gases.
            ``(5) Cooperative state research extension and education 
        service.--
                    ``(A) In general.--The Secretary, acting through 
                the Cooperative State Research Extension and Education 
                Service, shall establish a competitive grant program to 
                encourage research on the matters described in 
                paragraph (1) by land grant universities and other 
                research institutions.
                    ``(B) Consultation on research topics.--Before 
                issuing a request for proposals for applied research 
                under paragraph (1), the Cooperative State Research, 
                Education, and Extension Service shall consult with the 
                National Resources Conservation Service and the 
                Agricultural Research Service to ensure that proposed 
                research areas are complementary with and do not 
                duplicate research projects underway at the 
                Agricultural Research Service or other Federal 
                agencies.
    ``(c) Research Consortia.--
            ``(1) In general.--The Secretary may designate not more 
        than 2 research consortia to carry out research projects under 
        this section, with the requirement that the consortia propose 
        to conduct basic research under subsection (a) and applied 
        research under subsection (b) .
            ``(2) Selection.--The consortia shall be selected in a 
        competitive manner by the Cooperative State Research, 
        Education, and Extension Service.
            ``(3) Eligible consortium participants.--Entities eligible 
        to participate in a consortium include--
                    ``(A) land grant colleges and universities;
                    ``(B) private research institutions;
                    ``(C) State geological surveys;
                    ``(D) agencies of the Department of Agriculture;
                    ``(E) research centers of the National Aeronautics 
                and Space Administration and the Department of Energy;
                    ``(F) other Federal agencies;
                    ``(G) representatives of agricultural businesses 
                and organizations with demonstrated expertise in these 
                areas; and
                    ``(H) representatives of the private sector with 
                demonstrated expertise in these areas.
            ``(4) Reservation of funding.--If the Secretary designates 
        1 or 2 consortia, the Secretary shall reserve for research 
        projects carried out by the consortium or consortia not more 
        than 25 percent of the amounts made available to carry out this 
        section for a fiscal year.
    ``(d) Standards of Precision.--
            ``(1) Conference.--Not later than 3 years after the date of 
        enactment of this subtitle, the Secretary, acting through the 
        Agricultural Research Service and in consultation with the 
        Natural Resources Conservation Service, shall convene a 
        conference of key scientific experts on carbon sequestration 
        from various sectors (including the government, academic, and 
        private sectors) to--
                    ``(A) discuss and establish benchmark standards of 
                precision for measuring soil carbon content and net 
                emissions of other greenhouse gases;
                    ``(B) designate packages of measurement techniques 
                and modeling approaches to achieve a level of precision 
                agreed on by the participants in the conference; and
                    ``(C) evaluate results of analyses on baseline, 
                permanence, and leakage issues.
            ``(2) Report.--Not later than 180 days after the conclusion 
        of the conference under paragraph (1), the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report on the results of the 
        conference.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $25,000,000 for each of fiscal years 
        2002 through 2006.
            ``(2) Allocation.--Of the amounts made available to carry 
        out this section for a fiscal year, at least 50 percent shall 
        be allocated for competitive grants by the Cooperative State 
        Research, Education, and Extension Service.

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

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

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

    (a) Funding.--The Biomass Research and Development Act of 2000 (7 
U.S.C. 7624 note; Public Law 106-224) is amended--
            (1) in section 307, by striking subsection (f);
            (2) by redesignating section 310 as section 311; and
            (3) by inserting after section 309 the following:

``SEC. 310. FUNDING.

    ``(a) In General.--Not later than 30 days after the date of 
enactment of this section, and on October 1, 2002, and each October 1 
thereafter through October 1, 2005, out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury shall 
transfer to the Secretary to carry out this section $15,000,000, to 
remain available until expended.
    ``(b) Receipt and acceptance.--The Secretary shall be entitled to 
receive the funds and shall accept the funds transferred under 
subsection (a), without further appropriation.''.
    (b) Termination of Authority.--Section 311 of the Biomass Research 
and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) 
(as redesignated by subsection (a)) is amended by striking ``December 
31, 2005'' and inserting ``September 30, 2006''.

SEC. 904. SENSE OF CONGRESS CONCERNING A NATIONAL RENEWABLE FUELS 
              STANDARD.

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

SEC. 905. RURAL ELECTRIFICATION ACT OF 1936.

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

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

    ``(a) Definition of Renewable Energy.--In this section, the term 
`renewable energy' means energy derived from a wind, solar, biomass, 
geothermal, or hydrogen source.
    ``(b) Grants.--The Secretary shall make grants to rural electric 
cooperatives and other rural utilities to promote the development of 
economically and environmentally sustainable renewable energy projects 
to serve the needs of rural communities or for rural economic 
development.
    ``(c) Use of Grant Funds.--A recipient of a grant under subsection 
(a) may use the grant funds--
            ``(1) to pay up to 75 percent of the cost of an economic 
        feasibility study or technical assistance for a renewable 
        energy project; and
            ``(2) if a renewable energy project is determined to be 
        economically feasible, to pay an amount that is equal to not 
        more than 20 percent of the cost of the project.
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this section, and on October 1, 2002, and each 
        October 1 thereafter through October 1, 2005, out of any funds 
        in the Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer to the Secretary to carry out this 
        section $10,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive the funds and shall accept the funds 
        transferred under paragraph (1), without further 
        appropriation.''.

                   TITLE X--AGRICULTURAL COMPETITION

                Subtitle A--Agricultural Fair Practices

SEC. 1001. AGRICULTURAL FAIR PRACTICES.

    The Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.) 
is amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) In General.--This Act may be cited as the `Agricultural Fair 
Practices Act of 1967'.
    ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

        ``Sec. 1. Short title; table of contents.
        ``Sec. 2. Definitions.
                ``TITLE I--AGRICULTURAL TRADE PRACTICES

        ``Sec. 101. Office of Special Counsel for Competition Matters.
        ``Sec. 102. Report on corporate structure.
   ``TITLE II--UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN AGRICULTURAL 
                                COMMERCE

        ``Sec. 201. Prohibition on unfair or deceptive acts or 
                            practices in agricultural commerce.
        ``Sec. 202. Agricultural contracts.
        ``Sec. 203. Production contracts.
        ``Sec. 204. Authority of Secretary to prescribe rules and 
                            regulations.
        ``Sec. 205. Enforcement.
        ``Sec. 206. Effect on other laws.
        ``Sec. 207. Assignment of association dues and fees.
        ``Sec. 208. Severability.

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural commodity.--The term `agricultural 
        commodity' has the meaning given the term in section 102 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            ``(2) Agricultural contract.--The term `agricultural 
        contract' means a marketing contract or a production contract.
            ``(3) Agricultural cooperative.--The term `agricultural 
        cooperative' means an association of persons engaged in the 
        production, marketing, or processing of an agricultural 
        commodity that meets the requirements of the Act entitled `An 
        Act to authorize association of producers of agricultural 
        products' (commonly known as the `Capper-Volstead Act') (7 
        U.S.C. 291 et seq.).
            ``(4) Association of producers.--
                    ``(A) In general.--The term `association of 
                producers' means an association of producers of 
                agricultural products that engages in the marketing of 
                agricultural products or of agricultural services.
                    ``(B) Inclusions.--The term `association of 
                producers' includes--
                            ``(i) a cooperative association (as defined 
                        in section 15(a) of the Agricultural Marketing 
                        Act (12 U.S.C. 1141j(a))); and
                            ``(ii) an association described in the 
                        first section of the Act entitled `An Act to 
                        authorize association of producers of 
                        agricultural products' (commonly known as the 
                        `Capper-Volstead Act') (7 U.S.C. 291).
            ``(5) Capital investment.--The term `capital investment' 
        means an investment in--
                    ``(A) a structure, such as a building or manure 
                storage structure; or
                    ``(B) machinery or equipment associated with 
                producing an agricultural commodity that has a useful 
                life of more than 1 year.
            ``(6) Commission merchant.--The term `commission merchant' 
        means any person engaged in the business of receiving in 
        interstate or foreign commerce any agricultural commodity for 
        sale on commission.
            ``(7) Contract livestock facility.--The term `contract 
        livestock facility' means a facility in which livestock or a 
        product of live livestock is produced under a production 
        contract by a contract producer.
            ``(8) Contractor.--The term `contractor' means a person 
        that, in accordance with a production contract, owns, or will 
        own, an agricultural commodity that is produced by a contract 
        producer.
            ``(9) Contract producer.--The term `contract producer' 
        means a producer that produces an agricultural commodity under 
        a production contract.
            ``(10) Covered person.--
                    ``(A) In general.--The term `covered person' means 
                a dealer, handler, contractor, processor, or commission 
                merchant.
                    ``(B) Exclusions.--The term `covered person' does 
                not include--
                            ``(i) a person described in subparagraph 
                        (A) with respect to sales or marketing of any 
                        agricultural commodity of the person's own 
                        production that does not exceed $10,000,000 per 
                        year; or
                            ``(ii) a person described in subparagraph 
                        (A) if the sales of the agricultural 
                        commodities of the person are in an amount of 
                        less than $10,000,000 per year.
            ``(11) Crop.--The term `crop' means an agricultural 
        commodity produced from a plant.
            ``(12) Dealer.--The term `dealer' means any person engaged 
        in the business of buying, selling, or marketing agricultural 
        commodities in interstate or foreign commerce.
            ``(13) Department.--The term `Department' means the 
        Department of Agriculture.
            ``(14) Handler.--The term `handler' means any person 
        engaged in the business or practice of--
                    ``(A) acquiring agricultural products from 
                producers or associations of producers for processing 
                or sale;
                    ``(B) grading, packaging, handling, storing, or 
                processing agricultural products received from 
                producers or associations of producers;
                    ``(C) contracting or negotiating contracts or other 
                arrangements, written or oral, with or on behalf of 
                producers or associations of producers with respect to 
                the production or marketing of any agricultural 
                product; or
                    ``(D) acting as an agent or broker for a handler in 
                the performance of any function or act described in 
                subparagraph (A), (B), or (C).
            ``(15) Investment requirement.--The term `investment 
        requirement' means a provision in a production contract that 
        requires a contract producer to make a capital investment 
        associated with producing an agricultural commodity that, but 
        for the production contract, the contract producer would not 
        have made.
            ``(16) Livestock.--The term `livestock' means beef cattle, 
        dairy cattle, swine, sheep, or poultry.
            ``(17) Marketing contract.--The term `marketing contract' 
        means a written agreement between a covered person and a 
        producer for the purchase of an agricultural commodity produced 
        or raised by the producer.
            ``(18) Person.--The term `person' includes an individual, 
        partnership, corporation, limited liability company, limited 
        partnership, or association.
            ``(19) Processor.--The term `processor' means--
                    ``(A) any person (other than an agricultural 
                cooperative) engaged in the business of handling, 
                preparing, or manufacturing (including slaughtering) an 
                agricultural commodity or the products of an 
                agricultural commodity for sale or marketing in 
                interstate or foreign commerce; and
                    ``(B) an agricultural cooperative that handles, 
                prepares, or manufactures (including slaughtering) 
                agricultural commodities of its members' own 
                production.
            ``(20) Produce.--The term `produce' means--
                    ``(A) to provide feed or services relating to the 
                care and feeding of livestock, including milking dairy 
                cattle and storing raw milk; or
                    ``(B) to plant, raise, harvest, and store a crop, 
                including preparing soil for planting and applying a 
                fertilizer, soil conditioner, or pesticide to a crop.
            ``(21) Producer.--The term `producer' means a person 
        engaged in the production of an agricultural commodity as a 
        farmer, planter, rancher, dairyman, poultryman, or fruit, 
        vegetable, or nut grower.
            ``(22) Production contract.--
                    ``(A) In general.--The term `production contract' 
                means a written agreement that provides for--
                            ``(i) the production of an agricultural 
                        commodity by a contract producer; or
                            ``(ii) the provision of a management 
                        service relating to the production of an 
                        agricultural commodity by a contract producer.
                    ``(B) Inclusions.--The term `production contract' 
                includes--
                            ``(i) a contract between a contractor and a 
                        contract producer for the production of an 
                        agricultural commodity; and
                            ``(ii) a contract between a contractor and 
                        a contract producer for the provision of a 
                        management service in the production of an 
                        agricultural commodity.
            ``(23) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

                ``TITLE I--AGRICULTURAL TRADE PRACTICES

``SEC. 101. OFFICE OF SPECIAL COUNSEL FOR COMPETITION MATTERS.

    ``(a) Establishment.--
            ``(1) In general.--There is established within the 
        Department an office to be known as the `Office of Special 
        Counsel for Competition Matters'.
            ``(2) Duties.--The Office shall--
                    ``(A) investigate and prosecute violations of this 
                Act and any other Act that the Secretary determines to 
                be appropriate;
                    ``(B) serve as a liaison between the Department and 
                the Department of Justice and the Federal Trade 
                Commission with respect to competition and trade 
                practices in the food and agricultural sector; and
                    ``(C) maintain a staff of attorneys and other 
                professionals with the appropriate expertise.
    ``(b) Special Counsel for Competition Matters.--
            ``(1) In general.--The Office shall be headed by the 
        Special Counsel for Competition Matters, who shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate.
            ``(2) Prosecutorial authority.--Notwithstanding title 28, 
        United States Code, the Special Counsel for Competition Matters 
        shall have the authority to bring any civil or administrative 
        action authorized under this Act or any other Act that the 
        Secretary determines to be appropriate.

``SEC. 102. REPORT ON CORPORATE STRUCTURE.

    ``(a) In General.--A covered person with annual sales in excess of 
$100,000,000 shall annually file with the Secretary a report that 
describes, with respect to domestic activities and foreign activities, 
the strategic alliances, ownership in other covered persons, joint 
ventures, subsidiaries, brand names, and interlocking boards of 
directors with other covered persons.
    ``(b) Confidentiality.--A report filed under subsection (a) shall 
be confidential commercial or financial information for the purposes of 
section 552(b)(4) of title 5, United States Code.

   ``TITLE II--UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN AGRICULTURAL 
                                COMMERCE

``SEC. 201. PROHIBITION ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN 
              AGRICULTURAL COMMERCE.

    ``(a) Unfair or Deceptive Acts or Practices in Agricultural 
Commerce.--Any unfair or deceptive act or practice in or affecting the 
marketing, receiving, purchasing, sale, or contracting for the 
production of any agricultural commodity by any covered person shall be 
unlawful.
    ``(b) Unfair or Deceptive Acts or Practices Concerning Producer 
Associations.--It shall be unlawful for any covered person knowingly--
            ``(1)(A) to interfere with, restrain, or coerce any 
        producer in the exercise of the right of the producer to join 
        and belong to, or to refrain from joining or belonging to, an 
        association of producers; or
            ``(B) to refuse to deal with any producer because of the 
        exercise of the right of the producer to join and belong to the 
        association;
            ``(2) to discriminate against any producer with respect to 
        price, quantity, quality, or other terms of purchase, 
        acquisition, or other handling of an agricultural product 
        because of the membership of the producer in, or the contract 
        of the producer with, an association of producers;
            ``(3) to coerce or intimidate any producer to enter into, 
        maintain, breach, cancel, or terminate a membership agreement 
        or marketing contract with an association of producers or a 
        contract with a covered person;
            ``(4) to pay or loan money, give any thing of value, or 
        offer any other inducement or reward to a producer for refusing 
        to or ceasing to belong to an association of producers;
            ``(5) to make false reports about the finances, management, 
        or activities of an association of producers or handlers;
            ``(6) to conspire, combine, agree, or arrange with any 
        other person to do, or aid or abet the performance of, any act 
        made unlawful by this Act;
            ``(7)(A) to interfere with the formation or administration 
        of any association of producers; or
            ``(B) to contribute financial or other support to an 
        association of producers; or
            ``(8) to fail to bargain in good faith.
    ``(c) Unfair or Deceptive Acts or Practices in Agricultural 
Contracts.--It shall be unlawful for a covered person that is a party 
to an agricultural contract--
            ``(1) to fail to act in good faith (as defined in 
        applicable State law provisions of the Uniform Commercial Code) 
        with respect to the performance and enforcement of the 
        agricultural contract;
            ``(2) to fail to include 1 or more cover pages that 
        disclose provisions of the agricultural contract relating to--
                    ``(A) duration;
                    ``(B) termination;
                    ``(C) renewal and renegotiation standards;
                    ``(D) responsibility for environmental damage;
                    ``(E) factors to be used in determining payment;
                    ``(F) responsibility for obtaining and complying 
                with Federal, State, and local permits;
                    ``(G) assignability;
                    ``(H) the applicable State law and venue;
                    ``(I) the effect of oral modifications;
                    ``(J) remedies for breach;
                    ``(K) in the case of a livestock or poultry 
                production contract, the minimum number of animals 
                subject to the contract;
                    ``(L) other rules or provisions incorporated in the 
                contract by reference; and
                    ``(M) any other terms that the Secretary determines 
                to be appropriate for disclosure; or
            ``(3) to violate any of the requirements relating to 
        production contracts under section 203.
    ``(d) Public Policy Considerations.--
            ``(1) In general.--In determining whether an act or 
        practice is unfair, a court may consider established public 
        policies as evidence to be considered with all other evidence.
            ``(2) Limitation.--Notwithstanding paragraph (1), public 
        policy considerations may not serve as a primary basis for the 
        determination.

``SEC. 202. AGRICULTURAL CONTRACTS.

    ``(a) Confidentiality.--Any provision of an agricultural contract 
that requires that the agricultural contract remain confidential is 
void, except as the provision applies to a trade secret to which 
section 552 of title 5, United States Code, applies.
    ``(b) Arbitration.--Any provision of an agricultural contract that 
requires arbitration of a dispute arising from the agricultural 
contract is void.

``SEC. 203. PRODUCTION CONTRACTS.

    ``(a) Right of Contract Producers To Cancel Production Contracts.--
            ``(1) In general.--A contract producer may cancel a 
        production contract by mailing a cancellation notice to the 
        contractor not later than the later of--
                    ``(A) the date that is 3 business days after the 
                date on which the production contract is executed; or
                    ``(B) any cancellation date specified in the 
                production contract.
            ``(2) Disclosure.--A production contract shall clearly 
        disclose--
                    ``(A) the right of the contract producer to cancel 
                the production contract;
                    ``(B) the method by which the contract producer may 
                cancel the production contract; and
                    ``(C) the deadline for canceling the production 
                contract.
    ``(b) Production Contract Liens.--
            ``(1) Definition of lien starting date.--In this 
        subsection, the term `lien starting date' means--
                    ``(A) in the case of an annual crop, the date on 
                which the annual crop is planted;
                    ``(B) in the case of a perennial crop, the starting 
                date on which the perennial crop is subject to a 
                production contract;
                    ``(C) in the case of livestock, the date on which 
                the livestock arrive at the contract livestock 
                facility; and
                    ``(D) in the case of milk or any other product of 
                live livestock, the date on which the milk or other 
                product is produced.
            ``(2) Liens.--In the case of a production contract that 
        provides for the production of an agricultural commodity by a 
        contract producer, the contract producer shall have a lien in 
        the amount owed to the contract producer under the production 
        contract on--
                    ``(A)(i) the agricultural commodity until the 
                agricultural commodity is sold or processed (including 
                slaughtered) by the contractor; and
                    ``(ii) the cash proceeds of the sale of the 
                agricultural commodity, including any cash provided as 
                part of the sale; and
                    ``(B) any property of the contractor that may be 
                subject to a security interest.
            ``(3) Lien period.--A lien for the production of an 
        agricultural commodity under this subsection shall apply during 
        the period--
                    ``(A) beginning on the lien starting date; and
                    ``(B) ending 1 year after the agricultural 
                commodity is no longer under the control of the 
                contract producer.
            ``(4) Perfecting of liens.--To perfect a lien for the 
        production of an agricultural commodity under this subsection, 
        a contract producer shall file a lien statement under 
        applicable State law provisions based on Article 9 of the 
        Uniform Commercial Code.
            ``(5) Priority of liens.--A lien created under this 
        subsection shall be superior to, and have priority over, any 
        conflicting lien or security interest in the agricultural 
        commodity, including a lien or security interest that was 
        perfected prior to the creation of the lien under this 
        subsection.
            ``(6) Enforcement.--
                    ``(A) Control.--Before an agricultural commodity 
                leaves the control of a contract producer, the contract 
                producer may foreclose a lien created under this 
                subsection in the manner provided for the foreclosure 
                of a secured transaction under applicable State law 
                provisions based on Article 9 of the Uniform Commercial 
                Code.
                    ``(B) Post-control.--After an agricultural 
                commodity leaves the control of the contract producer, 
                the contract producer may enforce the lien in the 
                manner provided under applicable State law provisions 
                based on Article 9 of the Uniform Commercial Code.
            ``(7) Election of other remedies.--In lieu of obtaining a 
        lien under this subsection, a contract producer described in 
        paragraph (2) may seek to collect funds due under a production 
        contract in accordance with--
                    ``(A) the Packers and Stockyards Act, 1921 (7 
                U.S.C. 181 et seq.); or
                    ``(B) the Perishable Agricultural Commodities Act, 
                1930 (7 U.S.C. 499a et seq.).
    ``(c) Production Contracts Involving Investment Requirements.--
            ``(1) Applicability.--This subsection applies only to a 
        production contract between a contract producer and a 
        contractor if, but for the production contract, the contract 
        producer would not have made a capital investment of $100,000 
        or more.
            ``(2) Restrictions on contract termination.--
                    ``(A) Notice of termination.--Except as provided in 
                subparagraph (C), a contractor shall not terminate or 
                cancel a production contract unless the contractor 
                provides the contract producer with written notice of 
                the intention of the contractor to terminate or cancel 
                the production contract at least 90 days before the 
                effective date of the termination or cancellation.
                    ``(B) Requirements.--The written notice required 
                under subparagraph (A) shall include alleged causes of 
                the termination.
                    ``(C) Exceptions.--A contractor may terminate or 
                cancel a production contract without notice as required 
                under subparagraph (A) if the basis for the termination 
                or cancellation is--
                            ``(i) a voluntary abandonment of the 
                        contractual relationship by the contract 
                        producer, such as a complete failure of the 
                        contract producer to perform under the 
                        production contract;
                            ``(ii) the conviction of the contract 
                        producer of an offense of fraud or theft 
                        committed against the contractor; or
                            ``(iii) the natural end of the production 
                        contract in accordance with the terms of the 
                        production contract.
                    ``(D) Right to cure.--
                            ``(i) In general.--If, not later than 90 
                        days after the date on which the contract 
                        producer receives written notice under 
                        subparagraph (A), the contract producer 
                        remedies each cause of the breach of contract 
                        alleged in the written notice, the contractor 
                        may not terminate or cancel a production 
                        contract under this paragraph.
                            ``(ii) No admission of breach.--The remedy 
                        or attempt to remedy the causes for the breach 
                        of contract by the contract producer under 
                        clause (i) does not constitute an admission of 
                        breach of contract.
    ``(d) Additional Capital Investments in Production Contracts.--
            ``(1) In general.--A covered person shall not require a 
        contract producer to make additional capital investments in 
        connection with a production contract that exceed the initial 
        investment requirements of the production contract.
            ``(2) Exceptions.--Notwithstanding paragraph (1), a covered 
        person may require additional capital investments if--
                    ``(A) the additional capital investments are offset 
                by reasonable additional consideration, including 
                compensation or a modification to the terms of the 
                production contract; and
                    ``(B) the contract producer agrees in writing that 
                there is acceptable and satisfactory consideration for 
                the additional capital investment.

``SEC. 204. AUTHORITY OF SECRETARY TO PROMULGATE RULES AND REGULATIONS.

    ``The Secretary, acting through the Special Counsel for Competition 
Matters, may promulgate such rules and regulations as are necessary to 
carry out this Act, including rules and regulations--
            ``(1) relating to unfair or deceptive acts or practices in 
        agriculture;
            ``(2) that define with specificity acts or practices that 
        are to be prohibited as unfair or deceptive acts or practices 
        in agriculture under section 201; and
            ``(3) to prevent unfair or deceptive acts or practices from 
        occurring in agriculture.

``SEC. 205. ENFORCEMENT.

    ``(a) Civil Actions by the Secretary Against Covered Persons.--In 
any case in which the Secretary has reasonable cause to believe that 
any covered person has engaged in any act or practice that violates 
this Act, the Secretary may bring a civil action in United States 
district court by filing a complaint requesting preventive relief, 
including an application for a permanent or temporary injunction, 
restraining order, or other order, against the covered person.
    ``(b) Civil Actions by Covered Persons.--
            ``(1) Preventive relief.--
                    ``(A) In general.--In any case in which any covered 
                person has engaged, or there are reasonable grounds to 
                believe that any covered person is about to engage, in 
                any act or practice prohibited by this Act, a civil 
                action for preventive relief, including an application 
                for a permanent or temporary injunction, restraining 
                order, or other order, may be instituted by the person 
                aggrieved.
                    ``(B) Security.--The court may provide that no 
                restraining order or preliminary injunction shall issue 
                unless security is provided by the applicant, in such 
                sum as the court determines to be appropriate, for the 
                payment of such costs and damages as may be incurred or 
                suffered by any party that is found to have been 
                wrongfully enjoined or restrained.
            ``(2) Damages.--
                    ``(A) In general.--Any person injured in the 
                business or property of the person by reason of any 
                violation of, or combination or conspiracy to violate, 
                this Act may bring a civil action in United States 
                district court or any State court of competent 
                jurisdiction to recover--
                            ``(i) damages sustained by the person as a 
                        result of the violation; and
                            ``(ii) any additional penalty that the 
                        court may allow, but not more than $1,000 per 
                        violation.
                    ``(B) Limitation on actions.--A civil action under 
                subparagraph (A) shall be barred unless commenced 
                within 2 years after the cause of action accrues.
            ``(3) Attorney's fees.--In any action commenced under 
        paragraph (1) or (2), the court may allow the prevailing party 
        a reasonable attorney's fee as part of the costs.
    ``(c) Jurisdiction of District Courts.--Not later than 2 years 
after the date on which a violation of this Act occurs, an action to 
enforce this Act may be brought in--
            ``(1) United States district court, notwithstanding the 
        fact that an aggrieved person has not exhausted all 
        administrative or other remedies provided by law; or
            ``(2) any other court of competent jurisdiction.
    ``(d) Choice of Law, Jurisdiction, and Venue.--
            ``(1) Choice of law.--Any provision in an agricultural 
        contract requiring the application of the law of a State other 
        than the State in which the producer resides is void and 
        unenforceable.
            ``(2) Jurisdiction.--A covered person that enters into an 
        agricultural contract with a producer shall be subject to 
        personal jurisdiction in the State in which the producer 
        resides.
            ``(3) Venue.--Venue shall be determined on the basis of the 
        residence of the producer.
    ``(e) Liability for Acts of Agents.--In the construction and 
enforcement of this Act, the act, omission, or failure of any officer, 
agent, or person acting for or employed by any other person within the 
scope of the employment or office of the officer, agent, or person, 
shall be considered to be the act, omission, or failure of the other 
person.

``SEC. 206. EFFECT ON OTHER LAWS.

    ``(a) State Laws.--
            ``(1) In general.--Subject to paragraph (2), this Act does 
        not annul, alter, or affect, or exempt any person subject to 
        this Act from complying with, the law of any State with respect 
        to trade practices in agriculture.
            ``(2) Exception.--
                    ``(A) In general.--This Act annuls, alters, or 
                affects, or exempts a person from, a State law referred 
                to in paragraph (1) to the extent the State law is 
                inconsistent with this Act.
                    ``(B) Inconsistency.--For the purposes of this 
                paragraph, a State law is not inconsistent with this 
                Act if the protection that the law affords any producer 
                is greater than the protection provided to a producer 
                by this Act.
    ``(b) State Courts.--This Act does not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
Act.

``SEC. 207. ASSIGNMENT OF ASSOCIATION DUES AND FEES.

    ``(a) In General.--A producer of an agricultural product or service 
may execute, as a clause in an agricultural contract, an assignment of 
dues or fees to, or the deduction of a sum to be retained by, an 
association of producers authorized by contract to represent the 
producer, under which assignment a covered person shall--
            ``(1) deduct a portion of the amount to be paid for 
        products or services of the producer under a production 
        contract; and
            ``(2) pay, on behalf of the producer, the portion over to 
        the association as dues or fees or a sum to be retained by the 
        association.
    ``(b) Duty of Covered Person.--After a covered person receives 
notice from a producer of an assignment under subsection (a), the 
covered person shall--
            ``(1) deduct the amount authorized by the assignment from 
        the amount paid for any agricultural product sold by the 
        producer or for any service rendered under any production 
        contract; and
            ``(2) on payment to producers for the product or service, 
        pay the amount over to the association or the assignee of the 
        association.

``SEC. 208. SEVERABILITY.

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

                   Subtitle B--Packers and Stockyards

SEC. 1011. INVESTIGATION OF LIVE POULTRY DEALERS.

    (a) Removal of Poultry Slaughter Requirement From Definitions.--
Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182), is 
amended--
            (1) by striking paragraph (8) and inserting the following:
            ``(8) Poultry grower.--The term `poultry grower' means any 
        person engaged in the business of raising or caring for live 
        poultry under a poultry growing arrangement, regardless of 
        whether the poultry is owned by the person or by another 
        person;'';
            (2) in paragraph (9), by striking ``and cares for live 
        poultry for delivery, in accord with another's instructions, 
        for slaughter'' and inserting ``or cares for live poultry in 
        accordance with the instructions of another person''; and
            (3) in paragraph (10), by striking ``for the purpose of 
        either slaughtering it or selling it for slaughter by 
        another''.
    (b) Administrative Enforcement Authority Over Live Poultry 
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``or live 
poultry dealer'' after ``packer'' each place it appears.
    (c) Authority To Request Temporary Injunction or Restraining 
Order.--Section 408 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228a), is amended in the first sentence by striking ``on account of 
poultry'' and inserting ``on account of poultry or poultry care''.
    (d) Violations by Live Poultry Dealers.--Section 411 of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 228b-2), is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``any provision of section 207 or section 410 of''; and
            (2) in the first sentence of subsection (b), by striking 
        ``any provisions of section 207 or section 410'' and inserting 
        ``any provision''.

SEC. 1012. APPOINTMENT OF OUTSIDE COUNSEL.

    Section 407(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228(a)), is amended by inserting ``obtain the services of attorneys who 
are not employees of the Federal Government,'' before ``and make such 
expenditures''.

                 Subtitle C--Country of Origin Labeling

SEC. 1021. COUNTRY OF ORIGIN LABELING.

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

                ``Subtitle C--Country of Origin Labeling

``SEC. 271. DEFINITIONS.

    ``In this subtitle:
            ``(1) Beef.--The term `beef' means meat produced from 
        cattle (including veal).
            ``(2) Covered commodity.--The term `covered commodity' 
        means--
                    ``(A) muscle cuts of beef, lamb, and pork;
                    ``(B) ground beef, ground lamb, and ground pork;
                    ``(C) whole farm-raised fish; and
                    ``(D) a perishable agricultural commodity.
            ``(3) Food service establishment.--The term `food service 
        establishment' means a restaurant, cafeteria, lunch room, food 
        stand, saloon, tavern, bar, lounge, or other similar facility 
        operated as an enterprise engaged in the business of selling 
        food to the public.
            ``(4) Lamb.--The term `lamb' means meat, other than mutton, 
        produced from sheep.
            ``(5) Perishable agricultural commodity; retailer.--The 
        terms `perishable agricultural commodity' and `retailer' have 
        the meanings given the terms in section 1(b) of the Perishable 
        Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)).
            ``(6) Pork.--The term `pork' means meat produced from hogs.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Agricultural Marketing 
        Service.
            ``(8) Whole farm-raised fish.--The term `whole farm-raised 
        fish' means--
                    ``(A) whole farmed-raised fish; and
                    ``(B) filets, steaks, nuggets, and any other flesh 
                from a farm-raised fish.

``SEC. 272. NOTICE OF COUNTRY OF ORIGIN.

    ``(a) In General.--
            ``(1) Requirement.--Except as provided in subsection (b), a 
        retailer of a covered commodity shall inform consumers, at the 
        final point of sale of the covered commodity to consumers, of 
        the country of origin of the covered commodity.
            ``(2) United states country of origin.--A retailer of a 
        covered commodity may designate the covered commodity as having 
        a United States country of origin only if the covered 
        commodity--
                    ``(A) in the case of beef, lamb, and pork, is 
                exclusively from an animal that is exclusively born, 
                raised, and slaughtered in the United States; and
                    ``(B) in the case of whole farm-raised fish, is 
                born, raised, harvested, and processed in the United 
                States; and
                    ``(C) in the case of a perishable agricultural 
                commodity, is exclusively produced in the United 
                States.
    ``(b) Exemption for Food Service Establishments.--Subsection (a) 
shall not apply to a covered commodity if the covered commodity is--
            ``(1) prepared or served in a food service establishment; 
        and
            ``(2)(A) offered for sale or sold at the food service 
        establishment in normal retail quantities; or
            ``(B) served to consumers at the food service 
        establishment.
    ``(c) Method of Notification.--
            ``(1) In general.--The information required by subsection 
        (a) may be provided to consumers by means of a label, stamp, 
        mark, placard, or other clear and visible sign on the covered 
        commodity or on the package, display, holding unit, or bin 
        containing the commodity at the final point of sale to 
        consumers.
            ``(2) Labeled commodities.--If the covered commodity is 
        already individually labeled for retail sale regarding country 
        of origin, the retailer shall not be required to provide any 
        additional information to comply with this section.
    ``(d) Audit Verification System.--The Secretary may require that 
any person that prepares, stores, handles, or distributes a covered 
commodity for retail sale maintain a verifiable recordkeeping audit 
trail that will permit the Secretary to ensure compliance with the 
regulations promulgated under section 274.
    ``(e) Information.--Any person engaged in the business of supplying 
a covered commodity to a retailer shall provide information to the 
retailer indicating the country of origin of the covered commodity.

``SEC. 273. ENFORCEMENT.

    ``Section 253 shall apply to a violation of this subtitle.

``SEC. 274. REGULATIONS.

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

``SEC. 275. APPLICATION.

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

  Subtitle D--Referenda on Termination of Commodity Promotion Programs

SEC. 1031. REFERENDA ON TERMINATION OF COMMODITY PROMOTION PROGRAMS.

    (a) In General.--Section 501 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7401) is amended by adding at the end 
the following:
    ``(e) Periodic Referenda.--
            ``(1) In general.--The Secretary shall, not less often than 
        every 5 years, conduct a referendum among persons covered by an 
        order in effect under a commodity promotion law to determine 
        whether the persons favor the termination of the order.
            ``(2) Effect of referendum.--If the termination of an order 
        is approved in a referendum conducted under this subsection, 
        the Secretary shall, as soon as practicable, terminate the 
        order and the collection of assessments pursuant to the order.
            ``(3) Administration.--The Secretary shall conduct a 
        referendum under paragraph (1) in accordance with--
                    ``(A) subsection (f); and
                    ``(B)(i) applicable terms and conditions of the 
                applicable order and commodity promotion law that are 
                consistent with this section; and
                    ``(ii) to the extent that the applicable order and 
                commodity promotion law does not have necessary terms 
                and conditions relating to the termination of the 
                order, terms and conditions determined by the Secretary 
                that are consistent with the Commodity Promotion, 
                Research, and Information Act of 1996 (7 U.S.C. 7411 et 
                seq.)
            ``(4) Current orders.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), in the case of an order 
                issued by the Secretary under a commodity promotion law 
                that is in effect on the date of enactment of this 
                subsection, the Secretary shall conduct the initial 
                referendum under this subsection on the termination of 
                the order not later than 3 years after the date of 
                enactment of this subsection.
                    ``(B) Recent referenda.--In the case of an order 
                issued by the Secretary under a commodity promotion law 
                with respect to which the Secretary has (during the 2-
                year period ending on the date of enactment of this 
                subsection) completed a referendum on the termination 
                of the order (not including an advisory referendum), 
                the Secretary shall conduct the initial referendum 
                under this subsection not later than 5 years after the 
                date of completion of the referendum on the termination 
                of the order.
                    ``(C) Current referenda.--In the case of an order 
                issued by the Secretary under a commodity promotion law 
                with respect to which the Secretary has (as of the date 
                of enactment of this subsection) initiated, but not 
                completed, a referendum on the termination of the order 
                (not including an advisory referendum), the Secretary 
                shall conduct the initial referendum under this 
                subsection not later than 5 years after the date of 
                completion of the referendum on the termination of the 
                order.
    ``(f) Uniform Procedures for Conducting Referenda.--
            ``(1) In general.--Notwithstanding any commodity promotion 
        law, the Secretary shall promulgate such regulations as are 
        necessary to establish, to the maximum extent practicable, a 
        uniform, predictable, and transparent procedure applicable to 
        an order issued by the Secretary under each commodity promotion 
        law for conducting any referendum (including an advisory 
        referendum).
            ``(2) Minimum requirements.--In carrying out paragraph (1), 
        the Secretary shall promulgate regulations that, at a minimum, 
        establish accurate and fair procedures--
                    ``(A) in the case of a referendum that is 
                petitioned for by eligible persons, to validate that a 
                sufficient number of eligible persons have requested 
                the referendum;
                    ``(B) to determine the validity of ballots and to 
                tabulate referendum results;
                    ``(C) in the case of a referendum conducted in 
                person, to request, vote, and tabulate absentee 
                ballots;
                    ``(D) to allow for and govern challenges to the 
                eligibility of voters, the validity of ballots, and 
                methods for tabulating ballots;
                    ``(E) to determine the number of persons eligible 
                to petition for (if applicable), or vote, in a 
                referendum, including, to the maximum extent 
                practicable, developing and making available a list of 
                eligible persons prior to the beginning of the petition 
                procedure for the referendum (if applicable) or the 
                Secretary conducting the referendum; and
                    ``(F) to allow eligible persons to vote in a 
                referendum by mail ballot or by such other method, 
                instead of in-person voting, prescribed by the 
                Secretary as will reduce the burden on voters and 
                ensure the integrity of the referendum.
            ``(3) Regulations.--
                    ``(A) Proposed regulations.--Not later than 180 
                days after the date of enactment of this subsection, 
                the Secretary shall promulgate proposed regulations to 
                carry out this subsection.
                    ``(B) Final regulations.--Not later than 1 year 
                after the date of enactment of this subsection, the 
                Secretary shall promulgate final regulations to carry 
                out this subsection.
    ``(g) Marketing Promotion Programs.--Subsections (e) and (f) do not 
apply to a promotion program established under a marketing promotion 
provision referred to in subsection (a)(1).''.
    (b) Technical Amendments.--Section 501(a) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)) is 
amended--
            (1) in paragraph (17), by striking ``or'';
            (2) in paragraph (18), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(19) any other provision of law enacted after April 4, 
        1996, that provides for the establishment and operation of a 
        promotion program described in the first sentence.''.

            Subtitle E--Perishable Agricultural Commodities

SEC. 1041. DISCIPLINARY VIOLATIONS.

    Section 6 of the Perishable Agricultural Commodities Act, 1930 (7 
U.S.C. 499f), is amended--
            (1) in the section heading, by striking ``WRITTEN'';
            (2) in subsection (b)--
                    (A) by striking ``(other than an employee of an 
                agency of the Department of Agriculture administering 
                this Act)''; and
                    (B) by striking ``written'' each place it appears; 
                and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``written''; and
                    (B) in paragraph (3), by striking ``written''.

                        TITLE XI--MISCELLANEOUS

SEC. 1101. COTTON CLASSIFICATION SERVICES.

    The first sentence of section 3a of the Act of March 3, 1927 
(commonly known as the ``Cotton Statistics and Estimates Act'') (7 
U.S.C. 473), is amended by striking ``2002'' and inserting ``2006''.

SEC. 1102. AVAILABILITY OF SECTION 32 FUNDS.

    Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), is 
amended in the fourth sentence of the second undesignated paragraph by 
striking ``$300,000,000'' and inserting ``$500,000,000''.

SEC. 1103. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (21 U.S.C. 114i(d)) is amended by striking ``2002'' and 
inserting ``2006''.

SEC. 1104. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
              FEES.

    Section 2509(a)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (21 U.S.C. 136a(a)(1)) is amended by striking 
``2002'' and inserting ``2006''.

SEC. 1105. COMMODITY PURCHASES.

    Section 6(e)(1)(B) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1755(e)(1)(B)) is amended by striking ``2001'' and 
inserting ``2003''.

SEC. 1106. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    The Child Nutrition Act of 1966 is amended by inserting after 
section 17 (42 U.S.C. 1786) the following:

``SEC. 18. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    ``(a) Establishment.--For the period of fiscal years 2002 through 
2006, the Secretary shall use $75,000,000 of funds available to the 
Commodity Credit Corporation to carry out and expand a seniors farmers' 
market nutrition program.
    ``(b) Program Purposes.--The purposes of the seniors farmers' 
market nutrition program are--
            ``(1) to provide to low-income seniors resources in the 
        form of fresh, nutritious, unprepared, locally grown fruits, 
        vegetables, and herbs from farmers' markets, roadside stands, 
        and community-supported agriculture programs;
            ``(2) to increase domestic consumption of agricultural 
        commodities by expanding or assisting in the expansion of 
        domestic farmers' markets, roadside stands, and community-
        supported agriculture programs; and
            ``(3) to develop or aid in the development of new farmers' 
        markets, roadside stands, and community-supported agriculture 
        programs.
    ``(c) Regulations.--The Secretary may promulgate such regulations 
as the Secretary considers necessary to carry out the seniors farmers' 
market nutrition program under this section.
    ``(d) Termination of Effectiveness.--The program established under 
subsection (a) terminates on September 30, 2006, and shall be 
considered to have expired notwithstanding section 257 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907).''.

SEC. 1107. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    (a) In General.--The Secretary of Agriculture (acting through the 
Agricultural Marketing Service) shall use $3,500,000 of funds of the 
Commodity Credit Corporation for fiscal year 2002 to establish a 
national organic certification cost-share program to assist producers 
and handlers of agricultural products in obtaining certification under 
the national organic production program established under the Organic 
Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
    (b) Federal Share.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall pay under this section not more than 75 percent of the 
        costs incurred by a producer or handler in obtaining 
        certification under the national organic production program, as 
        certified to and approved by the Secretary.
            (2) Maximum amount.--The maximum amount of a payment made 
        to a producer or handler under this section shall be $500.
                                 <all>