[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 20 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 20

  To enhance fair and open competition in the production and sale of 
           agricultural commodities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

   Mr. Daschle (for himself, Mr. Harkin, Mr. Leahy, Mr. Johnson, Mr. 
   Baucus, Mr. Rockefeller, Mr. Kohl, Mr. Wellstone, Mr. Dorgan, Mr. 
Durbin, Mr. Conrad, Mr. Kerry, Mrs. Carnahan, Mr. Dayton, Mr. Kennedy, 
and Mr. Akaka) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To enhance fair and open competition in the production and sale of 
           agricultural commodities, 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 ``Securing a Future 
for Independent Agriculture Act of 2001''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
 TITLE I--PROTECTION FROM ANTICOMPETITIVE PRACTICES; CONTRACT FAIRNESS

                        Subtitle A--Definitions

Sec. 101. Definitions.
         Subtitle B--Protection from Anticompetitive Practices

Sec. 111. Prohibitions against unfair practices in transactions 
                            involving agricultural commodities.
Sec. 112. Reports of the Secretary on potential unfair practices.
Sec. 113. Report on corporate structure.
Sec. 114. Mandatory funding for staff.
Sec. 115. General Accounting Office study.
                     Subtitle C--Contract Fairness

Sec. 121. Obligation of good faith.
Sec. 122. Disclosure of risks and readability requirements under 
                            agricultural contracts.
Sec. 123. Right of contract producers to cancel production contracts.
Sec. 124. Prohibition of confidentiality provisions.
Sec. 125. Production contract liens.
Sec. 126. Production contracts involving investment requirements.
Sec. 127. Producer rights.
Sec. 128. Mediation.
                Subtitle D--Agricultural Fair Practices

Sec. 131. Agricultural fair practices.
                       Subtitle E--Implementation

Sec. 141. Relationship to State law.
Sec. 142. Regulations.
Sec. 143. Implementation plan.
Sec. 144. Effective date.
     TITLE II--NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY FUND

Sec. 201. National Rural Cooperative and Business Equity Fund.
                 TITLE III--COUNTRY OF ORIGIN LABELING

Sec. 301. Country of origin labeling.
         TITLE IV--MARKETING ASSISTANCE LOAN RATE EQUALIZATION

Sec. 401. Loan rates for marketing assistance loans.
Sec. 402. Term of loans.
Sec. 403. Application.
                      TITLE V--FARMLAND PROTECTION

Sec. 501. Farmland protection program.
                         TITLE VI--CIVIL RIGHTS

Sec. 601. Sense of Congress on participation of socially disadvantaged 
                            groups in Department of Agriculture 
                            programs.

 TITLE I--PROTECTION FROM ANTICOMPETITIVE PRACTICES; CONTRACT FAIRNESS

                        Subtitle A--Definitions

SEC. 101. DEFINITIONS.

    In this title:
            (1) Active contractor.--The term ``active contractor'' 
        means a person (including a processor) that (in accordance with 
        a production contract) owns, or will own, an agricultural 
        commodity that is produced by a contract producer.
            (2) 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).
            (3) Agricultural contract.--The term ``agricultural 
        contract'' means a marketing contract or a production contract.
            (4) 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).
            (5) Broker.--The term ``broker'' means any person engaged 
        in the business of negotiating sales and purchases of any 
        agricultural commodity in interstate or foreign commerce for or 
        on behalf of the vendor or the purchaser, except that no person 
        shall be considered a broker if the person's sales of such 
        agricultural commodities are not in excess of $1,000,000 per 
        year.
            (6) 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.
            (7) 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, or for or on behalf of another person, 
        except that no person shall be considered a commission merchant 
        if the person's sales of such agricultural commodities are not 
        in excess of $1,000,000 per year.
            (8) Contract input.--
                    (A) In general.--The term ``contract input'' means 
                an agricultural commodity or an organic or synthetic 
                substance or compound that is used to produce an 
                agricultural commodity.
                    (B) Inclusions.--The term ``contract input'' 
                includes livestock, plants, agricultural seeds, semen 
                or eggs for breeding stock, fertilizers, soil 
                conditioners, and pesticides.
            (9) 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.
            (10) Contract producer.--The term ``contract producer'' 
        means a producer that produces an agricultural commodity under 
        a production contract.
            (11) Contractor.--The term ``contractor'' means a person 
        that is an active contractor or a passive contractor.
            (12) Covered person.--The term ``covered person'' means a 
        dealer, processor, commission merchant, and broker.
            (13) Crop.--The term ``crop'' means an agricultural 
        commodity produced from a plant.
            (14) Dealer.--The term ``dealer'' means--
                    (A) any person (except an agricultural cooperative) 
                engaged in the business of buying, selling, or 
                marketing agricultural commodities in wholesale or 
                jobbing quantities, as determined by the Secretary, in 
                interstate or foreign commerce, except that--
                            (i) no person shall be considered a dealer 
                        with respect to sales or marketing of any 
                        agricultural commodity of that person's own 
                        production if the sales or marketing of such 
                        agricultural commodities do not exceed 
                        $10,000,000 per year; and
                            (ii) no person shall be considered a dealer 
                        who buys, sells, or markets less than 
                        $1,000,000 per year of such agricultural 
                        commodities; and
                    (B) an agricultural cooperative that sells or 
                markets agricultural commodities of its members' own 
                production if the agricultural cooperative sells or 
                markets more than $1,000,000 of its members' production 
                per year of such agricultural commodities.
            (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 subject to 
        the production contract.
            (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 processor and a producer 
        for the purchase of an agricultural commodity grown or raised 
        by the producer.
            (18) Passive contractor.--The term ``passive contractor'' 
        means a person that--
                    (A) provides a management service to a contract 
                producer; and
                    (B) does not own an agricultural commodity that is 
                produced by the contract producer under a production 
                contract.
            (19) Processor.--
                    (A) In general.--The term ``processor'' means--
                            (i) 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 for human consumption; and
                            (ii) an agricultural cooperative that 
                        handles, prepares, or manufactures (including 
                        slaughtering) agricultural commodities of its 
                        members' own production.
                    (B) Exclusions.--The term ``processor'' does not 
                include--
                            (i) any person (other than an agricultural 
                        cooperative) with respect to the handling, 
                        preparing, or manufacturing (including 
                        slaughtering) of an agricultural commodity that 
                        was produced by the person if the gross revenue 
                        derived by the person from the sales or 
                        marketing of the agricultural commodity is less 
                        than $10,000,000 per year; and
                            (ii) any agricultural cooperative that 
                        handles, prepares, or manufactures (including 
                        slaughtering) an agricultural commodity if the 
                        gross revenue derived by the person from the 
                        sales or marketing of the agricultural 
                        commodity is less than $1,000,000 per year.
            (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; and
                    (B) to provide for planting, raising, harvesting, 
                and storing a crop, including preparing soil for 
                planting and applying a fertilizer, soil conditioner, 
                or pesticide to a crop.
            (21) Producer.--
                    (A) In general.--The term ``producer'' means a 
                person that produces an agricultural commodity.
                    (B) Exclusions.--The term ``producer'' does not 
                include--
                            (i) a commercial fertilizer or pesticide 
                        applicator;
                            (ii) a feed supplier; or
                            (iii) a veterinarian.
            (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 an active contractor 
                        and a contract producer for the production of 
                        an agricultural commodity;
                            (ii) a contract between an active 
                        contractor and a passive contractor for the 
                        provision of a management service to a contract 
                        producer in the production of an agricultural 
                        commodity; and
                            (iii) a contract between a passive 
                        contractor and a contract producer if--
                                    (I) the production contract 
                                provides for a management service 
                                furnished by the passive contractor 
to the contract producer in the production of an agricultural 
commodity; and
                                    (II) the passive contractor has a 
                                contractual relationship with the 
                                active contractor involving the 
                                production of the agricultural 
                                commodity.
            (23) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

         Subtitle B--Protection from Anticompetitive Practices

SEC. 111. PROHIBITIONS AGAINST UNFAIR PRACTICES IN TRANSACTIONS 
              INVOLVING AGRICULTURAL COMMODITIES.

    (a) Prohibitions.--It shall be unlawful in, or in connection with, 
any transaction in interstate or foreign commerce for any covered 
person or contractor--
            (1) to engage in or use any unfair, unreasonable, unjustly 
        discriminatory, or deceptive practice or device in the 
        marketing, receiving, purchasing, sale, or contracting for the 
        production of any agricultural commodity;
            (2) to make or give any undue or unreasonable preference or 
        advantage to any particular person or locality or subject any 
        particular person or locality to any undue or unreasonable 
        disadvantage in connection with any transaction involving any 
        agricultural commodity;
            (3) to make any false or misleading statement in connection 
        with any transaction involving any agricultural commodity that 
        is purchased or received in interstate or foreign commerce, or 
        involving any production contract, or to fail, without 
        reasonable cause, to perform any specification or duty, express 
        or implied, arising out of any undertaking in connection with 
        any such transaction or production contract;
            (4) to retaliate against or disadvantage, or to conspire to 
        retaliate against or disadvantage, any person because of 
        statements or information lawfully provided by the person to 
        any person (including to the Secretary or to a law enforcement 
        agency) regarding alleged improper actions or violations of law 
        by the covered person or contractor (unless the statements or 
        information are determined to be libelous or slanderous under 
        applicable State law) involving any agricultural commodity;
            (5) to include as part of any new or renewed agreement or 
        contract a right of first refusal, or to make any sale or 
        transaction contingent on the granting of a right of first 
        refusal, involving any agricultural commodity, before the date 
        that is 180 days after the study required under section 115 is 
        complete; or
            (6) to offer different prices contemporaneously for 
        agricultural commodities of like grade and quality (except 
        agricultural commodities covered by the Perishable Agricultural 
        Commodities Act, 1930 (7 U.S.C. 499a et seq.)), unless--
                    (A) the agricultural commodity is purchased in a 
                public market through a competitive bidding process or 
                under similar conditions that provide opportunities for 
                multiple competitors to seek to acquire the 
                agricultural commodity;
                    (B) the premium or discount reflects the actual 
                cost of acquiring an agricultural commodity prior to 
                processing; or
                    (C) the Secretary has determined that such types of 
                offers do not have a discriminatory impact against 
                small volume producers of agricultural commodities.
    (b) Violations.--
            (1) Complaints.--Whenever the Secretary has reason to 
        believe that any covered person or contractor has violated 
        subsection (a), the Secretary shall cause a complaint in 
        writing to be served on the covered person or contractor, 
        stating the charges in that respect, and requiring the covered 
        person or contractor to attend and testify at a hearing to be 
        held not earlier than 30 days after the service of the 
        complaint.
            (2) Hearing.--
                    (A) In general.--The Secretary may hold hearings, 
                sign and issue subpoenas, administer oaths, examine 
                witnesses, receive evidence, and require the attendance 
                and testimony of witnesses and the production of such 
                accounts, records, and memoranda, as the Secretary 
                considers necessary, for the determination of the 
                existence of any violation of this section.
                    (B) Right to hearing.--A covered person or 
                contractor may request a hearing if the covered person 
                or contractor is subject to penalty for unfair conduct 
                under this section.
                    (C) Respondents' rights.--During a hearing, the 
                covered person or contractor shall be given, pursuant 
                to regulations promulgated by the Secretary, the 
                opportunity--
                            (i) to be informed of the evidence against 
                        the covered person or contractor;
                            (ii) to cross-examine witnesses; and
                            (iii) to present evidence.
                    (D) Hearing limitation.--The issues of any hearing 
                held or requested under this section shall be limited 
                in scope to matters directly related to the purpose for 
                which the hearing was held or requested.
            (3) Report of finding and penalties.--
                    (A) In general.--If, after a hearing, the Secretary 
                finds that the covered person or contractor has 
                violated subsection (a), the Secretary shall make a 
                report in writing that states the findings of fact and 
                includes an order requiring the covered person or 
                contractor to cease and desist from continuing the 
                violation.
                    (B) Civil penalty.--The Secretary may assess a 
                civil penalty in an amount not to exceed $100,000 for 
                each violation of subsection (a).
            (4) Temporary injunction and finality and appealability of 
        an order.--
                    (A) Temporary injunction.--At any time after a 
                complaint is filed under paragraph (1), the court, on 
application of the Secretary, may issue a temporary injunction, 
restraining to the extent the court considers proper, the covered 
person or contractor and the officers, directors, agents, and employees 
of the covered person or contractor from violating subsection (a).
                    (B) Appealability of an order.--An order issued 
                pursuant to this subsection shall be final and 
                conclusive unless within 30 days after service of the 
                order, the covered person or contractor petitions to 
                appeal the order to the court of appeals for the 
                circuit in which the covered person or contractor 
                resides or has its principal place of business or the 
                District of Columbia Circuit Court of Appeals.
                    (C) Delivery of petition.--
                            (i) In general.--The clerk of the court 
                        shall immediately cause a copy of the petition 
                        filed under subparagraph (B) to be delivered to 
                        the Secretary.
                            (ii) Record.--On receipt of the petition, 
                        the Secretary shall file in the court the 
                        record of the proceedings under this 
                        subsection.
                    (D) Penalty for failure to obey an order.--
                            (i) In general.--Any covered person or 
                        contractor that fails to obey any order of the 
                        Secretary issued under this section after the 
                        order, or the order as modified, has been 
                        sustained by the court or has otherwise become 
                        final, shall be fined not less than $5,000 and 
                        not more than $100,000 for each offense.
                            (ii) Separate offenses.--Each day during 
                        which the failure continues shall be considered 
                        a separate offense.
            (5) Records.--
                    (A) In general.--Each covered person or contractor 
                shall maintain for a period of not less than 5 years 
                accounts, records, and memoranda (including marketing 
                agreements, forward contracts, and formula pricing 
                arrangements) that fully and correctly disclose all 
                transactions involved in the business of the covered 
                person or contractor, including the true ownership of 
                the business.
                    (B) Failure to keep records or allow the secretary 
                to inspect records.--Failure to keep, or allow the 
                Secretary to inspect records as required by this 
                paragraph shall constitute an unfair practice in 
                violation of subsection (a)(1).
                    (C) Inspection of records.--The Secretary shall 
                have the right to inspect such accounts, records, and 
                memoranda (including marketing agreements, forward 
                contracts, and formula pricing arrangements) of any 
                covered person or contractor as may be material to the 
                investigation of any alleged violation of this section 
                or for the purpose of investigating the business 
                conduct or practices of an organization with respect to 
                the covered person or contractor.
    (c) Compensation for Injury.--
            (1) Establishment of the family farmer and rancher claims 
        commission.--
                    (A) In general.--The Secretary shall appoint 3 
                individuals to a commission to be known as the ``Family 
                Farmer and Rancher Claims Commission'' (referred to in 
                this subsection as the ``Commission'') to review claims 
                of family farmers and ranchers that have suffered 
                financial damages as a result of any violation of this 
                section as determined by the Secretary pursuant to 
                subsection (b)(3).
                    (B) Term of service.--
                            (i) In general.--Each member of the 
                        Commission shall serve 3-year terms which may 
                        be renewed.
                            (ii) Initial members.--The initial members 
                        of the Commission may be appointed for a period 
                        of less than 3 years, as determined by the 
                        Secretary.
            (2) Review of claims.--
                    (A) Submission of claims.--A family farmer or 
                rancher damaged as a result of a violation of this 
                section, as determined by the Secretary pursuant to 
                subsection (b)(3), may preserve the right to claim 
                financial damages under this section by filing a claim 
                pursuant to regulations promulgated by the Secretary.
                    (B) Determination.--Based on a review of the claim, 
                the Commission shall determine the amount of damages to 
                be paid, if any, as a result of the violation.
                    (C) Review.--The decisions of the Commission under 
                this paragraph shall not be subject to judicial review 
                except to determine that the amount of damages to be 
                paid is consistent with the published regulations of 
                the Secretary that establish the criteria for 
                implementing this subsection.
            (3) Funding.--
                    (A) In general.--Funds collected from civil 
                penalties pursuant to this section shall--
                            (i) be transferred to a special fund in the 
                        Treasury;
                            (ii) be made available to the Secretary 
                        without further Act of appropriation; and
                            (iii) remain available until expended to 
                        pay the expenses of the Commission and claims 
                        described in this subsection.
                    (B) Authorization of appropriation.--In addition to 
                the funds described in subparagraph (A), there are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this section.

SEC. 112. REPORTS OF THE SECRETARY ON POTENTIAL UNFAIR PRACTICES.

    (a) Filing Premerger Notices With the Secretary.--No covered 
person, operator of a warehouse used to store agricultural commodities, 
or other agriculture-related business shall merge or acquire, directly 
or indirectly, any voting securities or assets of any other covered 
person, operator of a warehouse used to store agricultural commodities, 
or other agriculture-related business unless both persons (or in the 
case of a tender offer, the acquiring person) file notification 
pursuant to rules promulgated by the Secretary, if--
            (1) any voting securities or assets of the covered person, 
        operator of a warehouse used to store agricultural commodities, 
        or other agriculture-related business with annual net sales or 
        total assets of $10,000,000 or more are being acquired by a 
        covered person, operator of a warehouse used to store 
        agricultural commodities, or other agriculture-related business 
        that has total assets or annual net sales of $100,000,000 or 
        more; or
            (2) any voting securities or assets of a covered person, 
        operator of a warehouse used to store agricultural commodities, 
        or other agriculture-related business with annual net sales, or 
        total assets, of $100,000,000 or more are being acquired by any 
        covered person, operator of a warehouse used to store 
        agricultural commodities, or agriculture-related business with 
        annual net sales or total assets of $10,000,000 or more, if, as 
        a result of the acquisition, the acquiring person would hold an 
        aggregate total amount of the voting securities and assets of 
        the acquired person in excess of $50,000,000.
    (b) Review by the Secretary.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may conduct a review of any merger or acquisition 
        described in subsection (a).
            (2) Exception.--The Secretary shall conduct a review of any 
        merger or acquisition described in subsection (a) on a request 
        from a member of Congress.
    (c) Access to Records.--The Secretary may request any information, 
including any testimony, documentary material, or related information, 
from a covered person, operator of a warehouse used to store 
agricultural commodities, or other agriculture-related business, 
pertaining to any merger or acquisition of any covered person, operator 
of a warehouse used to store agricultural commodities, or other 
agriculture-related business.
    (d) Purpose of Review.--
            (1) Findings.--In conducting the review under subsection 
        (a), the Secretary shall make findings concerning whether the 
        merger or acquisition could--
                    (A) be significantly detrimental to the present or 
                future viability of family farms or ranches or rural 
                communities in the areas affected by the merger or 
                acquisition, pursuant to standards established by the 
                Secretary; or
                    (B) lead to a violation of section 111(a).
            (2) Remedies.--The review may include a determination of 
        possible remedies regarding how the parties of the merger or 
        acquisition may take steps to modify their operations to 
        address the findings described in paragraph (1).
    (e) Report of Review.--
            (1) Preliminary report.--After conducting the review 
        required under subsection (b), the Secretary shall issue a 
        preliminary report to the parties of the merger or acquisition 
        and the Attorney General or the Federal Trade Commission, as 
        appropriate, which shall include findings and a description of 
        any remedies described in subsection (d)(2).
            (2) Final report.--After affording the parties described in 
        paragraph (1) an opportunity for a hearing regarding the 
        findings and any proposed remedies in the preliminary report, 
        the Secretary shall issue a final report to the President and 
        the Attorney General or the Federal Trade Commission, as 
        appropriate, with respect to the merger or acquisition.
    (f) Implementation of the Report.--Not later than 120 days after 
the issuance of a final report described in subsection (e)(2), the 
parties to the merger or acquisition affected by the report shall--
            (1) make changes to their operations or structure to comply 
        with the findings and implement any suggested remedy or any 
        agreed-on alternative remedy; and
            (2) file a response demonstrating the compliance or 
        implementation.
    (g) Confidentiality of Information.--
            (1) In general.--Subject to paragraph (2), information used 
        by the Secretary to conduct the review required under this 
        section provided by a party to the merger or acquisition under 
        review or by a government agency shall be treated by the 
        Secretary as confidential information pursuant to section 1770 
        of the Food Security Act of 1985 (7 U.S.C. 2276).
            (2) Party to hearing.--The Secretary may share any such 
        information with the Attorney General, the Federal Trade 
        Commission, and a party seeking a hearing pursuant to 
        subsection (e)(2) with respect to information relating to the 
        party.
            (3) Report.--Subject to paragraph (1), the report issued 
        under subsection (e) shall be available to the public.
    (h) Civil Penalties.--
            (1) Original penalty.--
                    (A) In general.--After affording the parties an 
                opportunity for a hearing, the Secretary may assess a 
                civil penalty in an amount not to exceed $300,000 for 
                the failure of a person to comply with the requirements 
                of subsection (a) or (f).
                    (B) Issue.--Any such hearing shall be limited to 
                the issue of the amount of the civil penalty.
            (2) Additional penalty.--
                    (A) In general.--If after being assessed a civil 
                penalty under paragraph (1) a person continues to fail 
                to meet the requirements of subsection (a) or (f), the 
                Secretary may, after affording the parties an 
                opportunity for a hearing, assess a further civil 
                penalty in an amount not to exceed $100,000 for each 
                day the person continues the violation.
                    (B) Issue.--Any such hearing shall be limited to 
                the issue of the additional civil penalty assessed 
                under this paragraph.

SEC. 113. REPORT ON CORPORATE STRUCTURE.

    (a) In General.--
            (1) Report.--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 both domestic and foreign 
        activities, the strategic alliances, ownership in other 
        agribusiness firms or agribusiness-related firms, joint 
        ventures, subsidiaries, brand names, and interlocking boards of 
        directors with other corporations, representatives, and agents 
        that lobby Congress on behalf of the covered person, as 
        determined by the Secretary.
            (2) Contracts.--Paragraph (1) shall not apply to a 
        contract.
    (b) Civil Penalties.--
            (1) Original penalty.--
                    (A) In general.--After affording the parties an 
                opportunity for a hearing, the Secretary may assess a 
                civil penalty in an amount not to exceed $100,000 for 
                the failure of a person to comply with this section.
                    (B) Issue.--Any such hearing shall be limited to 
                the issue of the amount of the civil penalty
            (2) Additional penalty.--
                    (A) In general.--If after being assessed a civil 
                penalty in accordance with paragraph (1) a person 
                continues to fail to meet the requirements of this 
                section, the Secretary may, after affording the parties 
                an opportunity for a hearing, assess a further civil 
                penalty in an amount not to exceed $100,000 for each 
                day the person continues the violation.
                    (B) Issue.--Any such hearing shall be limited to 
                the amount of the additional civil penalty assessed 
                under this paragraph.

SEC. 114. MANDATORY FUNDING FOR STAFF.

    (a) In General.--Out of the funds in the Treasury not otherwise 
appropriated, the Secretary of Treasury shall provide to the Secretary 
of Agriculture $7,000,000 for each of fiscal years 2002 through 2006, 
to hire, train, and provide for additional staff to carry out 
additional responsibilities under this subtitle, including a Special 
Counsel on Fair Markets and Rural Opportunity, additional attorneys for 
the Office of General Counsel, investigators, economists, and support 
staff.
    (b) Availability.--The sums shall be--
            (1) made available to the Secretary without further Act of 
        appropriation; and
            (2) in addition to funds otherwise made available to the 
        Secretary for the purposes described in subsection (a).

SEC. 115. GENERAL ACCOUNTING OFFICE STUDY.

    Not later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States, in consultation with the 
Attorney General, the Secretary, the Federal Trade Commission, the 
National Association of Attorney's General, and other persons, shall--
            (1) study competition in the domestic farm economy with a 
        special focus on--
                    (A) protecting family farms and ranches and rural 
                communities; and
                    (B) the potential for monopsony and oligopsony 
                nationally and regionally; and
            (2) provide a report to the appropriate committees of 
        Congress on--
                    (A) the correlation between increases in the gap 
                between--
                            (i) retail consumer food prices;
                            (ii) the prices paid to farmers and 
                        ranchers; and
                            (iii) any increases in concentration among 
                        processors, manufacturers, or other firms that 
                        buy from farmers and ranchers;
                    (B) the extent to which the use of formula pricing, 
                marketing agreements, forward contracting, and 
                production contracts tend to give processors, 
                agribusinesses, and other buyers of agricultural 
                commodities unreasonable market power over producers or 
                suppliers in local markets;
                    (C) whether the granting of process patents 
                relating to biotechnology research affecting 
                agriculture during the past 20 years has tended to 
                overly restrict related biotechnology research or has 
                tended to overly limit competition in the biotechnology 
                industries that affect agriculture in a manner that is 
                contrary to the public interest, or could do so in the 
                future;
                    (D) whether acquisitions of companies that own 
                biotechnology patents and seed patents by multinational 
                companies have the potential for reducing competition 
                in the United States and unduly increasing the market 
                power of the multinational companies;
                    (E) whether existing processors or agribusinesses 
                have disproportionate market power and if competition 
                could be increased if the processors or agribusinesses 
                were required to divest assets to ensure that they do 
                not exert the disproportionate market power over local 
                markets;
                    (F) the extent of increase in concentration in milk 
                processing, procurement and handling, and the potential 
                risks from that increase in concentration on--
                            (i) the economic well-being of dairy 
                        farmers;
                            (ii) the school lunch program; and
                            (iii) other Federal nutrition programs;
                    (G) the impact of mergers, acquisitions, and joint 
                ventures among dairy cooperatives on dairy farmers, 
                including impacts on both members and nonmembers of the 
                merging cooperatives;
                    (H) the impact of the significant increase in the 
                use of stock as the primary means of effectuating 
                mergers and acquisitions by large companies;
                    (I) the increase in the number and size of mergers 
                or acquisitions in the United States and whether some 
                of the mergers or acquisitions would have taken place 
                if the merger or acquisition had to be consummated 
                primarily with cash, other assets, or borrowing; and
                    (J) whether agricultural producers typically appear 
                to derive any benefits (such as higher prices for their 
                products or any other advantages) from right-of-first-
                refusal provisions contained in purchase contracts or 
                other deals with agribusiness purchasers of the 
                products.

                     Subtitle C--Contract Fairness

SEC. 121. OBLIGATION OF GOOD FAITH.

    An agricultural contract shall carry an obligation of good faith 
(as defined in applicable State law provisions of the Uniform 
Commercial Code) on all parties to the agricultural contract with 
respect to the performance and enforcement of the agricultural 
contract.

SEC. 122. DISCLOSURE OF RISKS AND READABILITY REQUIREMENTS UNDER 
              AGRICULTURAL CONTRACTS.

    (a) Readability and Understandability.--
            (1) In general.--An agricultural contract shall be readable 
        and understandable, in that the agricultural contract--
                    (A) shall be printed in legible type;
                    (B) shall be appropriately divided into captioned 
                sections; and
                    (C) shall be written in clear and coherent language 
                using words and grammar that are understandable by a 
                person of average intelligence, education, and 
                experience within the agricultural industry.
            (2) Effect.--Paragraph (1) does not preclude the use of--
                    (A) a particular word, phrase, provision, or form 
                of agreement that is specifically required, 
                recommended, or endorsed by a Federal or State law 
                (including a regulation); or
                    (B) a technical term that is used to describe the 
                service or property that is the subject of the 
                agricultural contract, if the term is customarily used 
                by producers in the ordinary course of business in 
                connection with the service or property described.
    (b) Disclosure Statement Requirement.--An agricultural contract 
shall--
            (1) be accompanied by a clear written disclosure statement 
        describing the material risks faced by the producer if the 
        producer enters into the agricultural contract; and
            (2) disclose (in a manner consistent with subsection (a)), 
        provisions of the agricultural contract relating to--
                    (A) duration;
                    (B) termination;
                    (C) 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) in the case of a production contract, the right 
                of the producer to cancel the production contract in 
                accordance with section 123; and
                    (H) any other terms that the Secretary determines 
                are appropriate for disclosure.
    (c) Cover Sheet Requirement.--An agricultural contract entered 
into, amended, or renewed after the date of enactment of this Act shall 
contain as the first page, or first page of text if it is preceded by a 
title page, a cover sheet that complies with subsection (a) and 
contains the following:
            (1) A brief statement that the agricultural contract is a 
        legal contract between the parties to the agricultural 
        contract.
            (2) The following statement: ``READ YOUR CONTRACT 
        CAREFULLY. This cover sheet provides only a brief summary of 
        your contract. This cover sheet is not the contract, and only 
        the terms of the actual contract are legally binding. The 
        contract itself sets forth, in detail, the rights and 
        obligations of both you and the contractor or processor. IT IS 
        THEREFORE IMPORTANT THAT YOU READ YOUR CONTRACT CAREFULLY.''.
            (3) A written disclosure of risks in accordance with 
        subsection (b).
            (4) In the case of a production contract, a statement 
        describing, in plain language, the right of the producer to 
        cancel the production contract in accordance with section 123.
            (5) An index of the major provisions of the agricultural 
        contract and the pages on which the provisions appear, 
        including--
                    (A) the name of each party to the agricultural 
                contract;
                    (B) the definitions section of the agricultural 
                contract;
                    (C) the provisions governing termination, 
                cancellation, renewal, and amendment of the 
                agricultural contract by either party;
                    (D) the duties and obligations of each party; and
                    (E) provisions subject to change in the 
                agricultural contract.
    (d) Review by Secretary.--
            (1) Submission to secretary.--A contractor may submit an 
        agricultural contract to the Secretary for review to determine 
        whether the agricultural contract complies with this section.
            (2) Action by secretary.--The Secretary shall--
                    (A) in determining whether an agricultural contract 
                or cover sheet is readable, in accordance with 
                subsection (a), consider--
                            (i) the simplicity of the sentence 
                        structure;
                            (ii) the extent to which commonly used and 
                        understood words are employed;
                            (iii) the extent to which esoteric legal 
                        terms are avoided;
                            (iv) the extent to which references to 
                        other sections or provisions of the 
                        agricultural contract are minimized;
                            (v) the extent to which clear definitions 
                        are used; and
                            (vi) any additional factors relevant to the 
                        readability or understandability of the 
                        agricultural contract; and
                    (B) after reviewing the agricultural contract--
                            (i) certify that the agricultural contract 
                        complies with this section;
                            (ii) decline to certify that the 
                        agricultural contract complies with this 
                        section and provide specific reasons for 
                        declining to certify the agricultural contract; 
                        or
                            (iii) decline to review the agricultural 
                        contract because--
                                    (I) the compliance of the 
                                agricultural contract with this section 
                                is subject to pending litigation; or
                                    (II) the agricultural contract is 
                                not subject to this section.
            (3) Judicial review.--An action of the Secretary under this 
        subsection shall not be subject to judicial review.
            (4) Certification.--
                    (A) In general.--An agricultural contract certified 
                under this subsection shall be considered to comply 
                with subsections (a), (b), and (c).
                    (B) No approval of legality or legal effect.--
                Certification of an agricultural contract under this 
                subsection shall not constitute an approval of the 
                legality or legal effect of the agricultural contract.
                    (C) Effect of approval; constructive approval.--If 
                the Secretary certifies an agricultural contract under 
                this subsection--
                            (i) the agricultural contract shall be 
                        considered to be in compliance with subsections 
                        (a), (b), and (c); and
                            (ii) the remedies provided under subsection 
                        (e) shall not be available.
                    (D) Timing.--To the maximum extent practicable, the 
                Secretary shall make a decision on the certification of 
                an agricultural contract not later than 30 days after 
                receipt of the agricultural contract.
            (5) Effect of disapproval.--If the Secretary disapproves 
        the certification of an agricultural contract, the agricultural 
        contract shall be void.
            (6) Effect of failure to submit agricultural contract.--The 
        failure to submit an agricultural contract to the Secretary for 
        review under this subsection shall not be considered to be a 
        lack of good faith or to raise a presumption that the 
        agricultural contract violates this section.
    (e) Remedies for Violations.--In addition to applicable remedies 
provided under State law, a court reviewing an agricultural contract 
that is not certified under subsection (d) may change the terms of the 
agricultural contract, or limit a provision of the agricultural 
contract, to avoid an unfair result if--
            (1) the court finds--
                    (A) a material provision of the agricultural 
                contract violates subsection (a), (b), or (c);
                    (B) the violation reasonably caused the producer to 
                be substantially confused about any of the rights, 
                obligations, or remedies of any party to the 
                agricultural contract; and
                    (C) the violation has caused or is likely to cause 
                financial detriment to the producer; and
            (2) the claim is brought before the obligations of any 
        party to the agricultural contract have been fully performed.
    (f) Limitations on Producer Actions.--
            (1) In general.--A violation of this section--
                    (A) shall not entitle a producer to withhold 
                performance of an otherwise valid contractual 
                obligation when bringing a claim for relief under this 
                section; and
                    (B) is not a defense to a claim arising from the 
                breach of an agricultural contract by a producer.
            (2) Actual damages.--A producer may recover actual damages 
        caused by a violation of this section only if the violation 
        reasonably caused the producer to fail to understand a right, 
        obligation, or remedy under the agricultural contract.
    (g) Statute of Limitations.--A claim that an agricultural contract 
violates this section shall be made not later than 6 years after the 
date on which the agricultural contract is executed by the producer.

SEC. 123. RIGHT OF CONTRACT PRODUCERS TO CANCEL PRODUCTION CONTRACTS.

    (a) In General.--A contract producer may cancel a production 
contract by mailing a cancellation notice to the contractor not later 
than the later of--
            (1) the date that is 3 business days after the date on 
        which the production contract is executed; or
            (2) any cancellation date specified in the production 
        contract.
    (b) Disclosure.--A production contract shall clearly disclose--
            (1) the right of the contract producer to cancel the 
        production contract;
            (2) the method by which the contract producer may cancel 
        the production contract; and
            (3) the deadline for canceling the production contract.

SEC. 124. PROHIBITION OF CONFIDENTIALITY PROVISIONS.

    (a) Prohibition.--Any provision of an agricultural contract that 
provides that information contained in the agricultural contract (other 
than a trade secret to which section 552 of title 5, United States 
Code, applies) is confidential shall be void.
    (b) Form.--A confidentiality provision described in subsection (a) 
shall be void regardless of whether the provision is--
            (1) express or implied;
            (2) oral or written;
            (3) required or conditional; or
            (4) contained in the agricultural contract, another 
        agricultural contract, or in a related document, policy, or 
        agreement.
    (c) Other Provisions.--This section shall not affect other 
provisions of an agricultural contract or a related document, policy, 
or agreement that can be given effect without the voided provision.
    (d) Disclosure of Information.--This subsection does not require a 
party to an agricultural contract to disclose information in the 
agricultural contract to any other person.

SEC. 125. PRODUCTION CONTRACT LIENS.

    (a) Definition of Lien Starting Date.--In this section, the term 
``lien starting date'' means--
            (1) in the case of an annual crop, the date on which the 
        annual crop is planted;
            (2) in the case of a perennial crop, the starting date on 
        which the perennial crop is subject to a production contract;
            (3) in the case of livestock, the date on which the 
        livestock arrive at the contract livestock facility; and
            (4) in the case of milk or any other product of live 
        livestock, the date on which the milk or other product is 
        produced.
    (b) Liens.--In the case of a production contract that provides for 
producing 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--
            (1)(A) the agricultural commodity until the agricultural 
        commodity is sold or processed (including slaughtered) by the 
        contractor; and
            (B) the cash proceeds of the sale of the agricultural 
        commodity, including any cash provided as part of the sale; and
            (2) any property of the contractor that may be subject to a 
        security interest as provided in applicable State law 
        provisions based on Article 9 of the Uniform Commercial Code.
    (c) Lien Period.--A lien for the production of an agricultural 
commodity under this section shall apply during the period--
            (1) beginning on the lien starting date; and
            (2) ending 1 year after the agricultural commodity is no 
        longer under the control of the contract producer.
    (d) Central Filing System.--The Secretary shall establish a central 
filing system for the purposes of perfecting liens under this section 
and providing notice of the liens to the public.
    (e) Perfecting Liens.--To perfect a lien for the production of an 
agricultural commodity under this section, a contract producer shall--
            (1) not later than 45 days after the lien starting date, 
        file with the Secretary a lien statement on a form prescribed 
        by the Secretary that includes--
                    (A) an estimate of the amount owed under the 
                production contract;
                    (B) the lien starting date;
                    (C) the estimated duration of the period during 
                which the agricultural commodity will be under the 
                control of the contract producer;
                    (D) the name of the party to the production 
                contract whose agricultural commodity is produced under 
                the production contract;
                    (E) a description of the location of the contract 
                operation, by State, county, and township; and
                    (F) the printed name and signature of the person 
                filing the form; and
            (2) pay a filing fee in an amount determined by the 
        Secretary, not to exceed $10.00.
    (f) Priority of Lien.--A lien created under this section 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 section.
    (g) Enforcement.--
            (1) Control.--Before an agricultural commodity leaves the 
        control of a contract producer, the contract producer may 
        foreclose a lien created under this section 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.
            (2) 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.
    (h) Election of Other Remedies.--In lieu of obtaining a lien under 
this section, a contract producer described in subsection (b) may seek 
to collect funds due under a production contract in accordance with--
            (1) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et 
        seq.); or
            (2) the Perishable Agricultural Commodities Act, 1930 (7 
        U.S.C. 499a et seq.).

SEC. 126. PRODUCTION CONTRACTS INVOLVING INVESTMENT REQUIREMENTS.

    (a) Applicability.--This section applies only to a production 
contract between a contract producer and a contractor if the production 
contract requires the contract producer, together with any other 
production contract between the same parties, to make a capital 
investment of $100,000 or more.
    (b) Restrictions on Contract Termination.--Except as provided in 
subsection (d), a contractor shall not terminate or fail to renew a 
production contract until the contractor--
            (1) provides the contract producer with written notice of 
        the intention of the contractor to terminate or not renew the 
        production contract at least 90 days before the effective date 
        of the termination or nonrenewal; and
            (2) reimburses the contract producer for damages (based on 
        the value of the remaining useful life of the structures, 
machinery, equipment, or other capital investment items) incurred due 
to the termination, cancellation, or nonrenewal of the production 
contract.
    (c) Breach of Investment Requirements.--
            (1) In general.--Except as provided in subsection (d), a 
        contractor shall not terminate or fail to renew a production 
        contract with a contract producer that materially breaches a 
        production contract, including the investment requirements of a 
        production contract, until--
                    (A) the contractor provides the contract producer 
                with a written notice of termination or nonrenewal, 
                including a list of complaints alleging causes for the 
                breach, at least 45 days before the effective date of 
                the termination or nonrenewal; and
                    (B) the contract producer fails to remedy each 
                cause of the breach alleged in the list of complaints 
                provided in the notice not later than 30 days after 
                receipt of the notice.
            (2) Civil actions.--An effort by a contract producer to 
        remedy a cause of an alleged breach shall not be considered to 
        be an admission of a breach in a civil action.
    (d) Exceptions.--A contractor may terminate or decline to renew a 
production contract in accordance with applicable law without notice or 
remedy as required in subsections (b) and (c) if the basis for the 
termination or nonrenewal is--
            (1) a voluntary abandonment of the contractual relationship 
        by the contract producer, such as a complete failure of the 
        performance of a contract producer under the production 
        contract; or
            (2) the conviction of a contract producer of an offense of 
        fraud or theft committed against the contractor.
    (e) Penalty.--If a contractor terminates or fails to renew a 
production contract other than as provided in this section, the 
contractor shall pay the contract producer the value of the remaining 
useful life of the structures, machinery, equipment, or other capital 
investment items.

SEC. 127. PRODUCER RIGHTS.

    (a) In General.--It shall be unlawful, in or in connection with any 
transaction in interstate or foreign commerce, for any covered person 
or contractor to take an action to coerce, intimidate, disadvantage, 
retaliate against, or discriminate against any producer because the 
producer exercises, or attempts to exercise, the right of the 
producer--
            (1)(A) to enter into a membership agreement or marketing 
        contract with an agricultural cooperative, a processor, or 
        another producer; and
            (B) to exercise contractual rights under the membership 
        agreement or marketing contract;
            (2) to lawfully provide statements or information to the 
        Secretary, a Federal or State law enforcement agency, or any 
        other entity or person regarding improper actions or violations 
        of law by a covered person or contractor under this subtitle, 
        unless the statements or information are determined to be 
        libelous or slanderous under applicable State law;
            (3) to cancel a production contract in accordance with 
        section 123;
            (4) to disclose the terms of an agricultural contract under 
        section 124;
            (5) to file, continue, terminate, or enforce a lien under 
        section 125; and
            (6) to enforce other protections provided by this subtitle 
        or other Federal or State law (including regulations).
    (b) Waivers.--Any provision of an agricultural contract that waives 
a producer right described in subsection (a), or an obligation of a 
covered person or contractor established by this subtitle, shall be 
void and unenforceable.
    (c) Violations.--Section 111(b) shall apply to a violation of this 
section.

SEC. 128. MEDIATION.

    (a) Mediation.--
            (1) In general.--An agricultural contract shall provide for 
        resolution of disputes concerning the agricultural contract by 
        mediation.
            (2) Mediation by secretary or state mediation service.--If 
        there is a dispute involving an agricultural contract, either 
        party to the agricultural contract may make a written request 
        to the Secretary for mediation services by the Secretary or by 
        a designated State mediation service to facilitate resolution 
        of the dispute.
            (3) Hearing.--The parties to the agricultural contract 
        shall receive a release from the mediation services described 
        in paragraph (2) before the dispute may be heard by a court.
    (b) No Arbitration of Future Controversy.--A provision in an 
agricultural contract submitting to arbitration a future controversy 
arising between a producer and a covered person or contractor shall be 
void.

                Subtitle D--Agricultural Fair Practices

SEC. 131. 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.

    ``This Act may be cited as the `Agricultural Fair Practices Act of 
1967'.

``SEC. 2. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds that--
            ``(1) agricultural products are produced in the United 
        States by many individual farmers and ranchers scattered 
        throughout the various States of the United States;
            ``(2) agricultural products in fresh or processed form move 
        in large part in the channels of interstate and foreign 
        commerce, and agricultural products that do not move in the 
        channels directly burden or affect interstate commerce;
            ``(3) the efficient production and marketing of 
        agricultural products by farmers and ranchers is of vital 
        concern to the welfare of farmers and ranchers and to the 
        general economy of the United States;
            ``(4) because agricultural products are produced by 
        numerous individual farmers and ranchers, the marketing and 
bargaining position of individual farmers and ranchers will be 
adversely affected unless farmers and ranchers are free to join 
together voluntarily in cooperative organizations as authorized by law; 
and
            ``(5) interference with the right described in paragraph 
        (4) is contrary to the public interest and adversely affects 
        the free and orderly flow of goods in interstate and foreign 
        commerce.
    ``(b) Purpose.--The purpose of this Act is to establish standards 
of fair practices required of handlers for dealings in agricultural 
products.

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Accredited association.--The term `accredited 
        association' means an association of producers accredited by 
        the Secretary in accordance with section 6.
            ``(2) 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 
                described in paragraph (6)(B).
                    ``(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).
            ``(3) Bargain; bargaining.--The terms `bargain' and 
        `bargaining' refers to the performance of the mutual obligation 
        of a handler and an accredited association to meet at 
        reasonable times and for reasonable periods of time for the 
        purpose of negotiating in good faith with respect to the price, 
        terms of sale, compensation for products produced or services 
        rendered under contract, or other provisions relating to the 
        products marketed, or the services rendered, by the members of 
        the accredited association or by the accredited association as 
        agent for the members.
            ``(4) Designated handler.--The term `designated handler' 
        means a handler that is designated in accordance with section 
        6.
            ``(5) Handler.--
                    ``(A) In general.--The term `handler' means any 
                person engaged in the business or practice of--
                            ``(i) acquiring agricultural products from 
                        producers or associations of producers for 
                        processing or sale;
                            ``(ii) grading, packaging, handling, 
                        storing, or processing agricultural products 
                        received from producers or associations of 
                        producers;
                            ``(iii) 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
                            ``(iv) acting as an agent or broker for a 
                        handler in the performance of any function or 
                        act described in clause (i), (ii), or (iii).
                    ``(B) Exclusions.--The term ``handler'' does not 
                include--
                            ``(i) any person (other than an 
                        agricultural cooperative) engaged in a business 
                        or practice described in subparagraph (A) if 
                        the gross revenue derived by the person from 
                        the business or activity is less than 
                        $10,000,000 per year; or
                            ``(ii) any agricultural cooperative engaged 
                        in a business or practice described in 
                        subparagraph (A) if the gross revenue derived 
                        by the person from the business or activity is 
                        less than $1,000,000 per year.
            ``(6) Producer.--
                    ``(A) In general.--The term `producer' means a 
                person engaged in the production of agricultural 
                products as a farmer, planter, rancher, dairyman, 
                poultryman, or fruit, vegetable, or nut grower.
                    ``(B) Inclusions.--The term `producer' includes a 
                person that contributes labor, production management, 
                facilities, or other services for the production of an 
                agricultural product.
            ``(7) Person.--The term `person' includes an individual, 
        partnership, corporation, and association.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 4. PROHIBITED PRACTICES.

    ``It shall be unlawful for any handler knowingly to, or knowingly 
to permit any employee or agent to--
            ``(1) 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 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) 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) 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 handler;
            ``(4) 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) make false reports about the finances, management, or 
        activities of an association of producers or handlers;
            ``(6) 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) refuse to bargain in good faith with an accredited 
        association, if the handler is a designated handler; or
            ``(8) dominate or interfere with the formation or 
        administration of any association of producers or to contribute 
        financial or other support to an association of producers.

``SEC. 5. BARGAINING IN GOOD FAITH.

    ``(a) Clarification of Obligation.--
            ``(1) In general.--The obligation of a designated handler 
        to bargain in good faith shall apply with respect to an 
        accredited association and the products or services for which 
        the accredited association is accredited to bargain.
            ``(2) Agreements or concessions.--The good faith bargaining 
        required between a handler and an accredited association shall 
        not require either party to agree to a proposal or to make a 
        concession.
    ``(b) Extension of Same Terms to Accredited Association.--
            ``(1) In general.--If a designated handler purchases a 
        product or service from producers under terms more favorable to 
        the producers than the terms negotiated with an accredited 
        association for the same type of product or service, the 
        handler shall offer the same terms to the accredited 
        association.
            ``(2) Violations.--Failure to extend the same terms to the 
        accredited association shall be considered to be a violation of 
        section 4(g).
            ``(3) Factors.--In comparing terms, the Secretary shall 
        consider--
                    ``(A) the stipulated purchase price;
                    ``(B) any bonuses, premiums, hauling, or loading 
                allowances;
                    ``(C) reimbursement of expenses;
                    ``(D) payment for special services of any character 
                that may be paid by the handler; and
                    ``(E) any amounts paid or agreed to be paid by the 
                handler for any designated purpose other than payment 
                of the purchase price.
    ``(c) Mediation.--The Secretary may provide mediation services with 
respect to bargaining between an accredited association and a 
designated handler at the request of the accredited association or 
designated handler.

``SEC. 6. ACCREDITATION OF ASSOCIATIONS AND DESIGNATION OF HANDLERS.

    ``(a) Accreditation Petition.--
            ``(1) In general.--An association of producers seeking 
        accreditation to bargain on behalf of producers of an 
        agricultural product or service shall submit to the Secretary a 
        petition for accreditation.
            ``(2) Content.--The petition shall--
                    ``(A) specify each agricultural product or service 
                for which the association seeks accreditation to 
                bargain on behalf of producers;
                    ``(B) designate the handlers, individually, by 
                production or marketing area, or by some other 
                appropriate general classification, with whom the 
                association seeks to be accredited to bargain; and
                    ``(C) contain such other information and documents 
                as may be required by the Secretary.
    ``(b) Notice of Petition; Proceedings.--
            ``(1) In general.--On receiving a petition under subsection 
        (a) and any supporting material, the Secretary shall provide 
        notice of the petition to all handlers designated in the 
        petition under subsection (a)(2)(B).
            ``(2) Individual handlers.--The Secretary shall provide 
        personal notice under this subsection to a handler that has 
        been designated individually.
            ``(3) General classifications.--The Secretary shall provide 
        notice through the Federal Register to handlers that have been 
        designated by production or marketing area or by some other 
        general classification.
            ``(4) Opportunity to respond.--The association of producers 
        seeking accreditation and the handlers shall have an 
        opportunity to submit written evidence, views, and arguments to 
        the Secretary.
            ``(5) Proceedings.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary may conduct an informal 
                proceeding on the petition.
                    ``(B) Formal hearings.--The Secretary shall hold a 
                formal hearing for the reception of testimony and 
                evidence if the Secretary finds that there are 
                substantial unresolved issues of material fact.
    ``(c) Issuance of Accreditation Order.--On the petition of an 
association of producers, the Secretary may issue an order designating 
the association of producers as an accredited association for the 
purposes of this Act if the Secretary determines that--
            ``(1) under the charter documents or bylaws of the 
        association, the accredited association is owned and controlled 
        by producers;
            ``(2) the association has contracts, binding under State 
        law, with the members of the association empowering the 
        association to sell or negotiate terms of sale of the products 
        or services of the members;
            ``(3) the association represents a sufficient number of 
        producers, or the members of the association produce a 
        sufficient quantity of agricultural products or render a 
        sufficient level of services, to enable the association to 
        function as an effective agent for producers in bargaining with 
        designated handlers;
            ``(4) the functions of the association include acting as 
        principal or agent for the members of the association in 
        negotiations with handlers for prices and other terms of trade 
        with respect to the production, sale, and marketing of products 
        or services of the members; and
            ``(5) the association is acting in good faith with respect 
        to the members of the association and is complying with this 
        Act.
    ``(d) Notification of Accreditation Order.--
            ``(1) In general.--The Secretary shall notify the 
        petitioning association of producers, and each handler to be 
        designated as part of the petition, of the decision of the 
        Secretary regarding the petition and provide a concise 
        statement of the basis for the decision.
            ``(2) Other associations.--The Secretary shall provide 
        notice of an accreditation of an association to all other 
        associations that have been accredited to bargain with respect 
        to the product or service with any of the designated handlers 
        of the association.
    ``(e) Annual Report.--Each accredited association shall submit to 
the Secretary an annual report in such form and including such 
information as the Secretary by regulation may require to enable the 
Secretary to determine whether the association is meeting the standards 
for accreditation.
    ``(f) Loss of Accreditation.--
            ``(1) In general.--If the Secretary determines that an 
        accredited association has ceased to meet the standards for 
        accreditation under subsection (c), the Secretary shall--
                    ``(A) notify the association of the manner in which 
                the association is deficient in maintaining the 
                standards for accreditation; and
                    ``(B) allow the association a reasonable period of 
                time to answer or correct the deficiencies.
            ``(2) Hearing.--After providing notice and a corrective 
        period in accordance with paragraph (1), if the Secretary is 
        not satisfied that the association is in compliance with 
        subsection (c), the Secretary shall--
                    ``(A) notify the association of the continued 
                deficiencies; and
                    ``(B) hold a hearing to consider the revocation of 
                accreditation.
            ``(3) Revocation.--If, based on the evidence submitted at 
        the hearing, the Secretary finds that the association has 
        ceased to maintain the standards for accreditation, the 
        Secretary shall revoke the accreditation of the association.
    ``(g) Amendment.--
            ``(1) In general.--At the option of the Secretary or on the 
        petition of an accredited association or a designated handler, 
        the Secretary may amend an accreditation order with respect to 
        the product or service specified in the accreditation order.
            ``(2) Notice.--The Secretary shall provide--
                    ``(A) notice of any proposed amendment and the 
                reasons for the amendment to all accredited 
                associations and handlers that would be directly 
                affected by the amendment; and
                    ``(B) an opportunity for a public hearing.
            ``(3) Authority.--After providing notice and an opportunity 
        for a hearing in accordance with paragraph (2), the Secretary 
        may amend the accreditation order if the Secretary finds that 
        the amendment will be conducive to more effective bargaining 
        and orderly marketing by the accredited association of the 
        product or services of the members of the accredited 
        association.

``SEC. 7. ASSIGNMENT OF ASSOCIATION DUES AND FEES.

    ``(a) In General.--A producer of an agricultural product or service 
may execute, as a clause in a sales contract or in another written 
instrument, 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 handler shall--
            ``(1) deduct a portion of the amount to be paid for 
        products or services of the producer under a growing 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 Handler.--After a handler receives notice from a 
producer of an assignment under subsection (a), the handler 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 growing 
        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. 8. POWERS OF SECRETARY.

    ``(a) Records and Information.--
            ``(1) Maintenance.--The Secretary may require any person 
        covered by this Act to establish and maintain such records, 
        make such reports, and provide such other information as the 
        Secretary may reasonably require to carry out this Act.
            ``(2) Access.--The Secretary and any officer or employee of 
        the Department of Agriculture, on presentation of credentials 
and a warrant or such other order of a court--
                    ``(A) shall have a right of entry to, on, or 
                through any premises in which records required to be 
                maintained under paragraph (1) are located; and
                    ``(B) may at reasonable times have access to and 
                copy any records that any person is required to 
                maintain or that relate to any matter under this Act 
                under investigation or in question.
    ``(b) Complaints.--If the Secretary has reason to believe (whether 
through investigation or petition by any person) that any person has 
violated this Act, the Secretary shall cause a complaint to be served 
on the person--
            ``(1) stating the reasons for the alleged violation of this 
        Act; and
            ``(2) requiring the person to attend and testify at a 
        hearing to be held not earlier than 30 days after the date of 
        service of the complaint.
    ``(c) Hearing.--
            ``(1) In general.--The Secretary may hold hearings, sign 
        and issue subpoenas, administer oaths, examine witnesses, 
        receive evidence, and require the attendance and testimony of 
        witnesses and the production of such accounts, records, and 
        memoranda, as the Secretary considers necessary to determine 
        whether a violation of this Act has occurred.
            ``(2) Right to hearing.--A person may request a hearing if 
        the person is subject to a penalty under this Act.
            ``(3) Respondents' rights.--During a hearing, the person 
        complained of shall be given, in accordance with regulations 
        promulgated by the Secretary, the opportunity--
                    ``(A) to be informed of the evidence against the 
                person;
                    ``(B) to cross-examine witnesses; and
                    ``(C) to present evidence.
            ``(4) Hearing limitation.--The issues at any hearing held 
        or requested under this section shall be limited in scope to 
        matters directly related to the purpose for which the hearing 
        was held or requested.
    ``(d) Report of Finding and Penalties.--
            ``(1) In general.--If, after a hearing, the Secretary finds 
        that a person has violated this Act, the Secretary shall make, 
        and provide to the person, a written report that states the 
        findings of fact and includes an order requiring the person to 
        cease and desist from committing the violation.
            ``(2) Civil penalty.--The Secretary may assess a civil 
        penalty not to exceed $100,000 for each violation of this Act.
    ``(e) Injunctions; Finality and Appealability of an Order.--
            ``(1) Injunctions.--At any time after a complaint is served 
        on a person under subsection (b), the court, on application of 
        the Secretary, may issue an injunction, restraining to the 
        extent the court determines to be appropriate, the person and 
        the officers, directors, agents, and employees of the person 
        from violating this Act.
            ``(2) Appealability of an order.--An order issued under 
        this section shall be final and conclusive unless, within 30 
        days after service of the order, the affected handler petitions 
        to appeal the order to the United States court of appeals for 
        the circuit in which the handler resides or has its principal 
        place of business or the United States Court of Appeals for the 
        District of Columbia Circuit.
            ``(3) Delivery of petition.--
                    ``(A) In general.--The clerk of the court shall 
                immediately cause a copy of any petition filed under 
                paragraph (2) to be delivered to the Secretary.
                    ``(B) Record.--On receipt of the petition, the 
                Secretary shall file in the court the record of the 
                proceedings under this section.
            ``(4) Penalty for failure to obey an order.--
                    ``(A) In general.--Any person that fails to obey an 
                order of the Secretary issued under this section after 
                the order becomes final shall be fined not less than 
                $5,000 and not more than $100,000 for each offense.
                    ``(B) Separate offenses.--Each day during which the 
                failure continues shall be considered to be a separate 
                offense.

``SEC. 9. ENFORCEMENT.

    ``(a) Civil Actions by Aggrieved Persons.--
            ``(1) Preventive relief.--Whenever any handler has engaged 
        or there are reasonable grounds to believe that any handler 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.
            ``(2) Attorney's fees.--In any action commenced under 
        paragraph (1), the court may allow the prevailing party a 
        reasonable attorney's fee as part of the costs.
            ``(3) 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.
    ``(b) Civil Actions by Injured Persons.--
            ``(1) 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--
                    ``(A) sue for the violation in the appropriate 
                United States district court without respect to the 
                amount in controversy; and
                    ``(B) recover damages sustained.
            ``(2) Attorney's fees.--In any action commenced under 
        paragraph (1), the court may allow the prevailing party a 
        reasonable attorney's fee as part of the costs.
            ``(3) Limitation on actions.--Any action to enforce any 
        cause of action under this subsection shall be barred unless 
        commenced within 2 years after the cause of action occurred.
    ``(c) Jurisdiction of District Courts.--
            ``(1) In general.--A United States district court shall 
        have jurisdiction over an action brought under this section.
            ``(2) Limitations.--No action may be commenced under 
        subsection (a) or (b)--
                    ``(A) prior to 60 days after the plaintiff has 
                given notice of the alleged violation to the Secretary 
                through a petition under section 8(b); or
                    ``(B) if the Secretary has commenced and is 
                diligently prosecuting an action (administrative or 
                judicial) dealing with the same violation to require 
                compliance with the Act.
    ``(d) Judicial Review.--An order of the Secretary with respect to 
which review could have been obtained under section 8(e)(2) shall not 
be subject to judicial review in any proceeding for enforcement under 
this section.

``SEC. 10. PREEMPTION.

    ``(a) In General.--Except as expressly provided in this Act, this 
Act does not invalidate the provisions of any State law dealing with 
the same subject as this Act.
    ``(b) State Courts.--This Act shall not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
Act.''.

                       Subtitle E--Implementation

SEC. 141. RELATIONSHIP TO STATE LAW.

    (a) In General.--Except as expressly provided in this title, this 
title does not invalidate any provision of State law dealing with the 
same subject as this title.
    (b) State Courts.--This title does not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
title.

SEC. 142. REGULATIONS.

    The Secretary shall promulgate such regulations as are appropriate 
to carry out this title and the amendments made by this title.

SEC. 143. IMPLEMENTATION PLAN.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary and the Attorney General shall develop and implement a 
plan to enable the Secretary, where appropriate, to file civil actions, 
including temporary injunctions, to enforce orders issued by the 
Secretary under this title and the Agricultural Fair Practices Act of 
1967 (as amended by section 131).

SEC. 144. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this title 
and the amendments made by this title take effect on the date of 
enactment of this Act.
    (b) Agricultural Contracts.--
            (1) In general.--Except as provided in paragraph (2), 
        subtitle C applies to an agricultural contract in force on or 
        after the date of enactment of this Act, regardless of the date 
        on which the agricultural contract is executed.
            (2) Exceptions.--Sections 122, 123, 126, 127(a)(5), and 
        128(a) shall apply only to an agricultural contract that is 
        executed or substantively amended after the date of enactment 
        of this Act.



                                                                 S.L.C.

     TITLE II--NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY FUND

SEC. 201. 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 F--National Rural Cooperative and Business Equity Fund

``SEC. 391A. SHORT TITLE.

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

``SEC. 391B. 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. 391C. 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; or
                    ``(E) 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 391G.
            ``(3) Fund.--The term `Fund' means the National Rural 
        Cooperative and Business Equity Fund established under section 
        391D.
            ``(4) Group of similar 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) Authorized private investors, other than 
                those described in subparagraphs (A) through (D).
                    ``(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 individuals or fewer.
            ``(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. 391D. ESTABLISHMENT OF THE FUND.

    ``(a) In General.--
            ``(1) Authority to establish.--A group of authorized 
        private investors may establish, as a non-Federal entity under 
        State law, and manage a fund to be known as the `National Rural 
        Cooperative and Business Equity Fund', to raise and provide 
        equity capital to rural businesses.
            ``(2) Composition of group.--The group of authorized 
        private investors referred to in paragraph (1) shall be 
        composed, to the maximum extent practicable, of representatives 
        of a majority of groups of similar investors.
    ``(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 start-up rural businesses, increased 
        opportunities for small and minority-owned rural businesses, 
        and the formation of new rural businesses;
            ``(4) to enhance rural employment opportunities;
            ``(5) to provide equity capital to rural businesses that 
        have been unable to obtain 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 subsection (b).

``SEC. 391E. 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 $50,000,000 for each of fiscal years 2001 through 2003;
            ``(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 to authorized private investors in debentures issued 
        by the Fund.
    ``(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) Investments by insured depository institutions.--
        Investments in the Fund by an insured depository institution 
        shall be considered part of the record of the insured 
        depository institution for meeting the credit needs of its 
        entire community for the purposes of Federal 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 liability of 
        the Secretary with respect to all guarantees under paragraph 
        (1) shall not apply to more than $300,000,000 in private 
        investments.
            ``(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.--
            ``(1) In general.--The Fund may, at the discretion of the 
        Board, raise additional capital through the issuance of 
        debentures and through other means determined to be appropriate 
        by the Board.
            ``(2) Guarantee of debt by secretary.--
                    ``(A) In general.--The Secretary may 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 debenture 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 debenture.
            ``(3) Authorized private investors.--An authorized private 
        investor may purchase debentures and other securities issued by 
        the Fund.

``SEC. 391F. 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 an entity 
                        that meets the requirements of paragraph (6) 
                        and such other requirements as the Board may 
                        establish; and
                            ``(ii) extend credit to such an entity in--
                                    ``(I) the form of mezzanine debt or 
                                subordinated debt; or
                                    ``(II) any other form of quasi-
                                equity.
                    ``(B) Limitation on equity investments.--After the 
                initial equity investment in an entity described in 
                subparagraph (A)(i), the Fund may not make additional 
                equity investments in the entity if the additional 
                equity investments would result in the Fund owning more 
                than 30 percent of the equity of the entity.
                    ``(C) Limitation on nonequity investments.--Except 
                in the case of a project to assist a rural cooperative, 
                the total amount of nonequity investments described in 
                subparagraph (A)(ii) that may be provided by the Fund 
                shall not exceed 20 percent of the total investments of 
                the Fund in the project.
            ``(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 projects 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 Board shall use not less than 1 
percent of the net earnings of the Fund 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 co-investors 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.--The Board may exercise such other 
authorities as are necessary to carry out this subtitle.

``SEC. 391G. 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) the Secretary or a designee;
            ``(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 with 
        total assets equal to or less than $250,000,000.
    ``(b) Limitation on Voting Control.--No individual investor or 
group of similar investors may control more than 25 percent of the 
votes on the Board.''.

                 TITLE III--COUNTRY OF ORIGIN LABELING

SEC. 301. 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; 
                and
                    ``(C) 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) Packer.--The term `packer' has the meaning given the 
        term in section 201 of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 191).
            ``(6) Perishable agricultural commodity; retailer.--The 
        terms `perishable agricultural commodity' and `retailer' have 
        the meanings given the terms in section 1(b) of the Perishable 
        Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)).
            ``(7) Pork.--The term `pork' means meat produced from hogs.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Agricultural Marketing 
        Service.

``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 (other than a perishable agricultural 
        commodity) may designate the covered commodity as having a 
        United States country of origin only if the covered commodity 
        is exclusively from an animal that is exclusively born, raised, 
        and slaughtered 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 by the packer, importer, or another person, the 
        retailer shall not be required to provide any additional 
        information to comply with this section.
    ``(d) Audit Verification System.--The Secretary may require by 
regulation 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.--A packer and any other 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 shall 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.''.

         TITLE IV--MARKETING ASSISTANCE LOAN RATE EQUALIZATION

SEC. 401. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

    Section 132 of the Agricultural Market Transition Act (7 U.S.C. 
7232) is amended to read as follows:

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

    ``(a) Wheat.--The loan rate for a marketing assistance loan under 
section 131 for wheat shall be based on 80 percent of the average full 
economic cost of production per bushel (based on yield per planted 
acre), as determined by the Secretary, for the immediately preceding 3 
crops of wheat.
    ``(b) Feed Grains.--
            ``(1) Corn.--The loan rate for a marketing assistance loan 
        under section 131 for corn shall be based on 80 percent of the 
        average full economic cost of production per bushel (based on 
        yield per planted acre), as determined by the Secretary, for 
        the immediately preceding 3 crops of corn.
            ``(2) Other feed grains.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                loan rate for a marketing assistance loan under section 
                131 for grain sorghum, barley, and oats, individually, 
                shall be established at such level as the Secretary 
                determines is fair and reasonable in relation to the 
                rate that loans are made available for corn, taking 
                into consideration the feeding value of the commodity 
                in relation to corn.
                    ``(B) Basis.--The loan rate for a marketing 
                assistance loan under section 131 for grain sorghum, 
                barley, and oats, individually, shall be based on 80 
                percent of the average full economic cost of production 
                per bushel (based on yield per planted acre), as 
                determined by the Secretary, for the immediately 
                preceding 3 crops of grain sorghum, barley, and oats, 
                respectively.
    ``(c) Upland Cotton.--The loan rate for a marketing assistance loan 
under section 131 for upland cotton shall be based on 80 percent of the 
average full economic cost of production per bushel (based on yield per 
planted acre), as determined by the Secretary, for the immediately 
preceding 3 crops of upland cotton.
    ``(d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 131 for extra long staple cotton shall be 
based on 80 percent of the average full economic cost of production per 
bushel (based on yield per planted acre), as determined by the 
Secretary, for the immediately preceding 3 crops of extra long staple 
cotton.
    ``(e) Rice.--The loan rate for a marketing assistance loan under 
section 131 for rice shall be based on 80 percent of the average full 
economic cost of production per bushel (based on yield per planted 
acre), as determined by the Secretary, for the immediately preceding 3 
crops of rice.
    ``(f) Oilseeds.--
            ``(1) Soybeans.--The loan rate for a marketing assistance 
        loan under section 131 for soybeans shall be based on 80 
        percent of the average full economic cost of production per 
        bushel (based on yield per planted acre), as determined by the 
        Secretary, for the immediately preceding 3 crops of soybeans.
            ``(2) Sunflower seed, canola, rapeseed, safflower, mustard 
        seed, and flaxseed.--The loan rate for a marketing assistance 
        loan under section 131 for sunflower seed, canola, rapeseed, 
        safflower, mustard seed, and flaxseed, individually, shall be 
        based on 80 percent of the average full economic cost of 
        production per bushel (based on yield per planted acre), as 
        determined by the Secretary, for the immediately preceding 3 
        crops of sunflower seed, canola, rapeseed, safflower, mustard 
        seed, and flaxseed, respectively.
            ``(3) Other oilseeds.--The loan rates for a marketing 
        assistance loan under section 131 for other oilseeds shall be 
        established at such level as the Secretary determines is fair 
        and reasonable in relation to the loan rate available for 
        soybeans, except in no event shall the rate for the oilseeds 
        (other than cottonseed) be less than the rate established for 
        soybeans on a per-pound basis for the same crop.''.

SEC. 402. TERM OF LOANS.

    Section 133 of the Agriculture Market Transition Act (7 U.S.C. 
7233) is amended to read as follows:

``SEC. 133. TERM OF LOANS.

    ``(a) Term of Loan.--In the case of each loan commodity, a 
marketing assistance loan under section 131 shall have a term of 20 
months beginning on the first day of the first month after the month in 
which the loan is made.
    ``(b) Extensions Authorized.--The Secretary may extend the term of 
a marketing assistance loan for any loan commodity.''.

SEC. 403. APPLICATION.

    This title and the amendments made by this title shall apply to 
each of the 2001 and 2002 crops of a loan commodity (as defined in 
section 102 of the Agricultural Market Transition Act (7 U.S.C. 7202).

                      TITLE V--FARMLAND PROTECTION

SEC. 501. FARMLAND PROTECTION PROGRAM.

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

``SEC. 388. FARMLAND PROTECTION PROGRAM.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means--
            ``(1) any agency of any State or local government, or 
        federally recognized Indian tribe; and
            ``(2) any organization that--
                    ``(A) is organized for, and at all times since its 
                formation 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;
                    ``(B) is an organization described in section 
                501(c)(3) of the Code that is exempt from taxation 
                under section 501(a) of the Code; and
                    ``(C)(i) is described in section 509(a)(2) of the 
                Code of; or
                    ``(ii) is described in section 509(a)(3) of the 
                Code and is controlled by an organization described in 
                section 509(a)(2) of the Code.
    ``(b) Authority.--The Secretary of Agriculture shall establish and 
carry out a farmland protection program under which the Secretary shall 
provide grants to eligible entities, to provide the Federal share of 
the cost of purchasing conservation easements or other interests in 
land with prime, unique, or other productive soil for the purpose of 
protecting topsoil by limiting nonagricultural uses of the land.
    ``(c) Federal Share.--The Federal share of the cost of purchasing a 
conservation easement or other interest described in subsection (b) 
shall be not more than 50 percent.
    ``(d) Title; Enforcement.--Title to a conservation easement or 
other interest described in subsection (b) may be held, and the 
conservation requirements of the easement or interest enforced, by any 
eligible entity.
    ``(e) State Certification.--The attorney general of the State in 
which land is located shall take such actions as are necessary to 
ensure that a conservation easement or other interest under this 
section is in a form that is sufficient to achieve the conservation 
purpose of the farmland protection program established under this 
section, the law of the State, and the terms and conditions of any 
grant made by the Secretary under this section.
    ``(f) Conservation Plan.--Any land for which a conservation 
easement or other interest is purchased under this section shall be 
subject to the requirements of a conservation plan to the extent that 
the plan does not negate or adversely affect the restrictions contained 
in any easement.
    ``(g) Technical Assistance.--The Secretary may use not more than 10 
percent of the amount that is made available for a fiscal year under 
subsection (h) to provide technical assistance to carry out this 
section.
    ``(h) Funding.--For each fiscal year, the Secretary shall use not 
more than $250,000,000 of the funds of the Commodity Credit Corporation 
to carry out this section.''.

                         TITLE VI--CIVIL RIGHTS

SEC. 601. SENSE OF CONGRESS ON PARTICIPATION OF SOCIALLY DISADVANTAGED 
              GROUPS IN DEPARTMENT OF AGRICULTURE PROGRAMS.

    It is the sense of Congress that the Secretary of Agriculture 
should take such actions as are necessary to ensure, to the maximum 
extent practicable, that members of socially disadvantaged groups (as 
defined in section 355(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2003(e))--
            (1) are informed of the eligibility requirements to 
        participate in programs of the Department of Agriculture; and
            (2) receive technical support and assistance from the 
        Department to participate in the programs.
                                 <all>