[Congressional Record Volume 140, Number 126 (Monday, September 12, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 12, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   FEDERAL CROP INSURANCE REFORM ACT

  The text of the bill (H.R. 4217) to reform the Federal Crop Insurance 
Program, and for other purposes, as passed by the Senate on August 25, 
1994, is as follows:

       Resolved, That the bill from the House of Representatives 
     (H.R. 4217) entitled ``An Act to reform the Federal crop 
     insurance program, and for other purposes'', do pass with the 
     following amendment:
       Strike out all after the enacting clause and insert:

     SECTION. 1. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Table of contents.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

     Subtitle A--Catastrophic Risk and Additional coverage Insurance

Sec. 1100. Short title; references.
Sec. 1101. Authority to offer insurance.
Sec. 1102. Catastrophic risk protection.
Sec. 1103. General coverage levels.
Sec. 1104. Premiums.
Sec. 1105. Eligibility.
Sec. 1106. Yield determinations.
Sec. 1107. Insurance policies.
Sec. 1108. Claims for losses.
Sec. 1109. Reinsurance.
Sec. 1110. Funding.
Sec. 1111. Advisory Committee for Federal Crop Insurance.
Sec. 1112. Management of Corporation.

               Subtitle B--Noninsured Assistance Program

Sec. 1201. Noninsured assistance program.
Sec. 1202. Payment and income limitations.

                       Subtitle C--Miscellaneous

Sec. 1301. Ineligibility for catastrophic risk and noninsured 
              assistance payments.
Sec. 1302. Prevented planting.
Sec. 1303. Conforming amendments.
Sec. 1304. Disaster assistance.
Sec. 1305. Use of Commodity Credit Corporation funds to cover certain 
              costs for fall-planted 1995 crops.
Sec. 1306. Poultry labeling, public hearings.
Sec. 1307. Agriculture employees first amendment rights.
Sec. 1308. Adjusted cost of thrifty food plan.
Sec. 1309. Effective dates.
Sec. 1310. Termination of authority.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

             Subtitle A--Short Title; Purpose; Definitions

Sec. 2101. Short title.
Sec. 2102. Purpose.
Sec. 2103. Definitions.

           Subtitle B--General Authorities of the Secrtetary

Sec. 2201. Delegation of functions to the Secretary.
Sec. 2202. Reorganization.
Sec. 2203. Personnel reductions.
Sec. 2204. Consolidation of headquarters offices.
Sec. 2205. Reports by the Secretary.

                 Subtitle C--National Appeals Division

Sec. 2301. Definitions.
Sec. 2302. National Appeals Division and Director.
Sec. 2303. Transfer of functions.
Sec. 2304. Personnel of the Division.
Sec. 2305. Notice and opportunity for hearing.
Sec. 2306. Informal hearings.
Sec. 2307. Rights of participants.
Sec. 2308. Division hearings and Director review.
Sec. 2309. Judicial review.
Sec. 2310. Implementation of final determinations of Division.
Sec. 2311. Decisions of State and county committees.
Sec. 2312. Prohibition on adverse action while appeal is pending.
Sec. 2313. Relationship to other laws.
Sec. 2314. Evaluation of agency decisionmakers and other employees.
Sec. 2315. Conforming amendments.

           Subtitle D--Farm and International Trade Services

Sec. 2401. Under Secretary for Farm and International Trade Services.
Sec. 2402. Farm Service Agency.
Sec. 2403. State and county committees.
Sec. 2404. International Trade Service.

          Subtitle E--Rural Economic and Community Development

Sec. 2501. Under Secretary for Rural Economic and Community 
              Development.
Sec. 2502. Rural Utilities Service.
Sec. 2503. Rural Housing and Community Development Service.
Sec. 2504. Rural Business and Cooperative Development Service.

           Subtitle F--Food, Nutrition, and Consumer Services

Sec. 2601. Under Secretary of Agriculture for Food, Nutrition, and 
              Consumer Services.
Sec. 2602. Food and Consumer Service.
Sec. 2603. Nutrition Research and Education Service.

             Subtitle G--National Resources and Environment

Sec. 2701. Natural Resources Conservation Service.
Sec. 2702. Reorganization of Forest Service.

             Subtitle H--Marketing and Inspection Services

Sec. 2801. Grain Inspection, Packers and Stockyards Administration.

             Subtitle I--Research, Economics, and Education

Sec. 2901. Federal Research and Information Service.
Sec. 2902. Cooperative State Research and Education Service.
Sec. 2903. Agricultural Economics and Statistics Service.
Sec. 2904. Program Policy and Coordination Staff.

                        Subtitle J--Food Safety

Sec. 2951. Food Safety Service.

                       Subtitle K--Miscellaneous

Sec. 2981. Assistant Secretaries of Agriculture.
Sec. 2982. Removal of obsolete provisions.
Sec. 2983. Additional conforming amendments.
Sec. 2984. Termination of authority.
Sec. 2985. Elimination of duplicative inspection requirements.
                 TITLE I--FEDERAL CROP INSURANCE REFORM
    Subtitle A--Catastrophic Risk and Additional Coverage Insurance

     SEC. 1100. SHORT TITLE; REFERENCES.

       (a) Short Title.--This title may be cited as the ``Federal 
     Crop Insurance Reform Act of 1994''.
       (b) References to Federal Crop Insurance Act.--Except as 
     otherwise expressly provided, whenever in this title an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Federal Crop Insurance Act (7 U.S.C. 1501 et 
     seq.).

     SEC. 1101. AUTHORITY TO OFFER INSURANCE.

       Section 508 (7 U.S.C. 1508) is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Authority to Offer Insurance.--
       ``(1) In general.--If sufficient actuarial data are 
     available (as determined by the Corporation), the Corporation 
     may insure, or provide reinsurance for insurers of, producers 
     of agricultural commodities grown in the United States under 
     1 or more plans of insurance determined by the Corporation to 
     be adapted to the agricultural commodity concerned. To 
     qualify for coverage under a plan of insurance, the losses of 
     the insured commodity shall be due to drought, flood, or 
     other natural disaster (as determined by the Secretary).
       ``(2) Period.--Except in the cases of tobacco and potatoes, 
     insurance shall not extend beyond the period during which the 
     insured commodity is in the field. As used in the preceding 
     sentence, in the case of aquacultural species, the term 
     `field' means the environment in which the commodity is 
     produced.
       ``(3) Exclusions.--Insurance provided under this subsection 
     shall not cover losses due to--
       ``(A) the neglect or malfeasance of the producer;
       ``(B) the failure of the producer to reseed to the same 
     crop in such areas and under such circumstances as it is 
     customary to so reseed; or
       ``(C) the failure of the producer to follow good farming 
     practices (as determined by the Secretary).'';
       (2) by striking subsections (c), (e), (g), (l), and (n); 
     and
       (3) by redesignating subsections (b), (d), (f), (h), (i), 
     (j), (k), and (m) as subsections (g) through (n), 
     respectively.

     SEC. 1102. CATASTROPHIC RISK PROTECTION.

       Section 508 (7 U.S.C. 1508) (as amended by section 1101) is 
     further amended by inserting after subsection (a) the 
     following new subsection:
       ``(b) Catastrophic Risk Protection.--
       ``(1) In general.--The Corporation shall offer a 
     catastrophic risk protection plan to indemnify producers for 
     crop loss due to loss of yield or prevented planting when the 
     producer is unable, because of drought, flood, or other 
     natural disaster (as determined by the Secretary), to plant 
     crops for harvest on the acreage for that crop year.
       ``(2) Amount of coverage.--Catastrophic risk protection 
     shall offer a producer 50 percent loss in yield coverage, on 
     an individual yield or area yield basis, indemnified at 60 
     percent of the expected market price, or a comparable 
     coverage (as determined by the Corporation).
       ``(3) Payment.--A catastrophic risk payment may reflect a 
     reduction that is proportionate to the lack of out-of-pocket 
     expenses associated with the failure to plant, grow, or 
     harvest the crop, as determined by the Corporation.
       ``(4) Yield and loss basis.--A producer shall have the 
     option of basing the catastrophic coverage of the producer on 
     an individual yield and loss basis or on an area yield and 
     loss basis, if both options are offered by the Corporation.
       ``(5) Sale of catastrophic risk coverage.--
       ``(A) In general.--Catastrophic risk coverage may be 
     offered by--
       ``(i) private insurance providers, if available in an area; 
     and
       ``(ii) at the option of the Secretary that is based on 
     considerations of need, local offices of the United States 
     Department of Agriculture (referred to in this title as the 
     `Department').
       ``(B) Need.--For purposes of considering need under 
     subparagraph (A)(ii), the Secretary may take into account the 
     most efficient and cost-effective use of resources, the 
     availability of personnel, fairness to local producers, the 
     needs and convenience of local producers, and the 
     availability of private insurance carriers.
       ``(6) Administrative fee.--
       ``(A) In general.--As a condition of catastrophic risk 
     protection, a producer shall pay an administrative fee. The 
     administrative fee shall be $50 per crop per county, but not 
     to exceed $100 per producer per county. The administrative 
     fee shall be paid at the service point, at the local office 
     of the Department, or to the approved insurance provider, at 
     the time of application.
       ``(B) Fee waivers.--The administrative fee shall be 
     waived--
       ``(i) for farmers of limited resources (as defined by the 
     Corporation); or
       ``(ii) if the producer elects to purchase additional 
     protection at 65 percent or more of the recorded or appraised 
     average yield and 100 percent of the expected market price, 
     or an equivalent coverage, offered by an approved insurance 
     provider.
       ``(C) Use of fees collected.--Funds collected as 
     administrative fees shall be retained by the Department or 
     the approved insurance provider for operating and 
     administrative expenses for the delivery of catastrophic risk 
     protection policies.
       ``(7) Participation requirement.--A producer may obtain 
     catastrophic risk coverage for a crop of the producer on land 
     in the county only if the producer obtains such coverage for 
     the crop on all insurable land of the producer in that 
     county.
       ``(8) Eligibility for department programs.--
       ``(A) In general.--To be eligible for any price support or 
     production adjustment program or any benefit described in 
     section 371 of the Consolidated Farm and Rural Development 
     Act, the producer must obtain at least the catastrophic level 
     of insurance for each crop of economic significance grown on 
     each farm in the county in which the producer has an 
     interest, if insurance is available in the county for the 
     crop.
       ``(B) Definition of crop of economic significance.--As used 
     in this paragraph, the term `crop of economic significance' 
     means a crop that has contributed, or is expected to 
     contribute, 10 percent or more of the total expected value of 
     all crops grown by the producer.
       ``(9) Limitation due to risk.--The Corporation may limit 
     catastrophic risk coverage in any county or area, or on any 
     farm, on the basis of the insurance risk concerned.
       ``(10) Simplification.--
       ``(A) Catastrophic risk protection plans.--In developing 
     and carrying out the policies and procedures for a 
     catastrophic risk protection plan under this title, the 
     Corporation shall, to the maximum extent practicable, 
     minimize the paperwork required and the complexity and costs 
     of procedures governing applications for, processing, and 
     servicing of the plan for all parties involved.
       ``(B) Other plans.--To the extent that the policies and 
     procedures developed under subparagraph (A) may be applied to 
     other plans of insurance offered under this title without 
     jeopardizing the actuarial soundness or integrity of the crop 
     insurance program, the Corporation shall apply the policies 
     and procedures to the other plans of insurance within a 
     reasonable period of time (as determined by the Corporation) 
     after the effective date of this paragraph.''.

     SEC. 1103. GENERAL COVERAGE LEVELS.

       Section 508 (7 U.S.C. 1508) (as amended by section 1102) is 
     further amended by inserting after subsection (b) the 
     following new subsection:
       ``(c) General Coverage Levels.--
       ``(1) In general.--The Corporation shall offer plans of 
     insurance that provide levels of coverage that are greater 
     than the level available under catastrophic risk protection 
     under subsection (b). A producer may purchase such a plan 
     only from an approved insurance provider, if the private 
     insurance is available. Nothing in this paragraph restricts 
     the Corporation from offering insurance plans if coverage 
     from private insurance providers is unavailable.
       ``(2) Transfer of insurance files.--If a producer has 
     already applied for catastrophic risk protection at the local 
     office of the Department and elects to purchase additional 
     coverage, the insurance file for the crop of the producer 
     shall be transferred to the approved insurance provider 
     servicing the additional coverage crop policy.
       ``(3) Yield and loss basis.--A producer shall have the 
     option of purchasing additional coverage based on an 
     individual yield and loss basis or on an area yield and loss 
     basis, if both options are offered by the Corporation.
       ``(4) Level of coverage.--The level of coverage shall be 
     dollar denominated and may be purchased at any level not to 
     exceed 85 percent of the individual yield or 95 percent of 
     the area yield (as determined by the Corporation). By the 
     beginning of the 1996 crop year, the Corporation shall 
     provide producers with information on catastrophic risk and 
     additional coverage in terms of dollar coverage (within the 
     allowable limits of coverage provided in this paragraph).
       ``(5) Price level.--The Corporation shall establish a price 
     level for each commodity on which insurance is offered that--
       ``(A) shall not be less than the projected market price for 
     the commodity (as determined by the Corporation); or
       ``(B) at the discretion of the Corporation, may be based on 
     the actual market price at the time of harvest (as determined 
     by the Corporation).
       ``(6) Price elections.--
       ``(A) In general.--Subject to subparagraph (B), insurance 
     coverage shall be made available to the producer on the basis 
     of any price election that equals or is less than the price 
     election established by the Corporation. The coverage shall 
     be quoted in terms of dollars per acre.
       ``(B) Minimum price elections.--The Corporation may 
     establish minimum price elections below which levels of 
     insurance shall not be offered.
       ``(C) Wheat varieties.--The Corporation shall, over a 
     period of time as determined practicable by the Corporation, 
     offer producers different price elections for varieties of 
     wheat, in addition to the standard price election, that 
     reflect different market prices, as determined by the 
     Corporation. The Corporation shall offer additional coverage 
     for each variety determined under this subparagraph and 
     charge a premium for each variety that is actuarially sound.
       ``(7) Substitute coverage for fire and hail.--
       ``(A) In general.--For levels of coverage 65 percent or 
     more of the recorded or appraised average yield and 100 
     percent of the expected market price, or an equivalent 
     coverage, the producer may elect to delete from the insurance 
     coverage provided under this title coverage against damage 
     caused by fire or hail, if an equivalent or greater dollar 
     amount of coverage for damage caused by fire or hail is 
     obtained from a private fire or hail insurance provider.
       ``(B) Credit for substitute coverage.--On written notice of 
     an election under subparagraph (A) to the company issuing the 
     policy providing coverage under this title and submission of 
     evidence of substitute coverage on the commodity insured, the 
     premium of the producer shall be reduced by an amount 
     determined by the Corporation to be actuarially appropriate, 
     taking into account the actuarial value of the remaining 
     coverage provided by the Corporation. The producer shall not 
     be given a reduction for an amount of premium determined to 
     be greater than the actuarial value of the protection against 
     losses caused by fire or hail that is included in the 
     coverage under this title for the crop.
       ``(8) State premium subsidies.--The Corporation may enter 
     into agreements with any State or agency of a State under 
     which the State or agency may pay to the approved insurance 
     provider an additional premium subsidy to further reduce the 
     portion of the premium paid by the producers in the State.
       ``(9) Limitation due to risk.--The Corporation may limit or 
     refuse insurance in any county or area, or on any farm, on 
     the basis of the insurance risk concerned.
       ``(10) Administrative fee.--
       ``(A) In general.--As a condition of coverage that is in 
     addition to catastrophic risk protection but less than 65 
     percent of the recorded or appraised average yield and 100 
     percent of the expected market price, or an equivalent 
     coverage, a producer shall pay an administrative fee. The 
     administrative fee shall be $50 per crop per county, but not 
     to exceed $100 per producer per county. The administrative 
     fee shall be paid to the approved insurance provider or the 
     Department, as applicable, at the time of application.
       ``(B) Fee waivers.--The administrative fee shall be 
     waived--
       ``(i) for farmers of limited resources (as defined by the 
     Corporation); or
       ``(ii) if the producer elects to purchase additional 
     protection at 65 percent or more of the recorded or appraised 
     average yield and 100 percent of the expected market price, 
     or an equivalent coverage, offered by an approved insurance 
     provider.
       ``(C) Use of fees collected.--Funds collected as 
     administrative fees shall be retained by the approved 
     insurance provider or the Department, as applicable, for 
     operating and administrative expenses.''.

     SEC. 1104. PREMIUMS.

       Section 508 (7 U.S.C. 1508) (as amended by section 1103) is 
     further amended by inserting after subsection (c) the 
     following new subsection:
       ``(d) Premiums.--
       ``(1) Levels.--
       ``(A) Catastrophic risk protection.--For catastrophic risk 
     protection coverage, the amount of premium shall be 
     sufficient to cover anticipated losses and a reasonable 
     reserve.
       ``(B) Additional coverage.--For levels of coverage below 65 
     percent of the recorded or appraised average yield and 100 
     percent of the expected market price, or an equivalent 
     coverage, but greater than catastrophic risk protection 
     coverage, the amount of premium shall be sufficient to cover 
     anticipated losses, a reasonable reserve, and an amount for 
     operating and administrative expenses (as determined by the 
     Corporation) that is less than the amount established for 
     coverage at 65 percent of the recorded or appraised average 
     yield and 100 percent of the expected market price, or an 
     equivalent coverage.
       ``(C) High coverage.--For levels of coverage of at least 65 
     percent of the recorded or appraised average yield and 100 
     percent of the expected market price, or an equivalent 
     coverage, the amount of premium shall be sufficient to cover 
     anticipated losses, a reasonable reserve, and an amount to 
     pay the operating and administrative expenses (as determined 
     by the Corporation) on an industry-wide basis as a percentage 
     of the total premium.
       ``(2) Payment of part of premium.--For the purpose of 
     encouraging the broadest possible participation, the 
     Corporation shall pay a part of the premium equivalent to--
       ``(A) for catastrophic risk protection coverage, an amount 
     equal to the premium established under paragraph (1)(A);
       ``(B) for levels of coverage below 65 percent of the 
     recorded and appraised average yield and 100 percent of the 
     expected market price, or an equivalent coverage, but greater 
     than catastrophic risk protection, an amount equal to the sum 
     of the amount of premium established for catastrophic risk 
     protection coverage and the amount for operating and 
     administrative expenses established under paragraph (1)(B); 
     and
       ``(C) for levels of coverage at or greater than 65 percent 
     of the recorded and appraised yield and 100 percent of the 
     expected market price, or an equivalent coverage, on an 
     individual or area basis, an amount equal to the sum of--
       ``(i) the premium established for--

       ``(I) in the case of each of the 1995 and 1996 crop years, 
     50 percent loss in yield indemnified at 80 percent of the 
     expected market price;
       ``(II) in the case of the 1997 crop year, 50 percent loss 
     in yield indemnified at 77.5 percent of the expected market 
     price; and
       ``(III) in the case of the 1998 and each subsequent crop 
     year, 50 percent loss in yield indemnified at 75 percent of 
     the expected market price; and

       ``(ii) the amount for operating and administrative expenses 
     established under paragraph (1)(C).
       ``(3) Reductions by private providers.--If a private 
     insurance provider determines that the provider may provide 
     insurance more efficiently than the expense reimbursement 
     amount set by the Corporation, the private insurance provider 
     may, with the approval of the Corporation, reduce the premium 
     charged the insured by the amount of the efficiency. A 
     reduction pursuant to the preceding sentence shall be subject 
     to such rules, limitations, and procedures as are established 
     by the Corporation.
       ``(4) Individual and area crop insurance coverage.--The 
     Corporation shall allow approved insurance providers to offer 
     a plan of insurance to producers that combines both 
     individual yield coverage and area yield coverage at a 
     premium rate determined by the provider under the following 
     conditions:
       ``(A) The individual yield coverage shall be equal to or 
     greater than catastrophic risk protection as described in 
     subsection (b).
       ``(B) The combined policy shall include area yield coverage 
     that is offered by the Corporation or similar area coverage, 
     as determined by the Corporation.
       ``(C) The Corporation shall provide reinsurance on the area 
     yield portion of the combined policy at the request of the 
     provider, except that the provider shall agree to pay to the 
     producer any portion of the area yield and loss indemnity 
     payment received from the Corporation or a commercial 
     reinsurer that exceeds the individual indemnity payment made 
     by the provider to the producer.
       ``(D) The Corporation shall pay a part of the premium 
     equivalent to--
       ``(i) the amount authorized under paragraph (2) (except 
     provisions regarding operating and administrative expenses); 
     and
       ``(ii) the amount of operating and administrative expenses 
     authorized by the Corporation for the area yield coverage 
     portion of the combined policy.
       ``(E) The provider shall provide all underwriting services 
     for the combined policy, including the determination of 
     individual yield coverage premium rates, the terms and 
     conditions of the policy, and the acceptance and 
     classification of applicants into risk categories, subject to 
     subparagraph (F).
       ``(F) The Corporation shall approve the combined policy 
     unless the Corporation determines that the policy is not 
     actuarially sound or that the interests of producers are not 
     adequately protected.''.

     SEC. 1105. ELIGIBILITY.

       (a) In General.--Section 508 (7 U.S.C. 1508) (as amended by 
     section 1104) is further amended by inserting after 
     subsection (d) the following new subsection:
       ``(e) Eligibility.--
       ``(1) In general.--To participate in catastrophic risk 
     protection coverage under this section, a producer shall 
     submit an application at the local office of the Department 
     or to an approved insurance provider.
       ``(2) Sales closing date.--For coverage under this title, 
     each producer shall purchase crop insurance on or before the 
     sales closing date for the crop by providing the required 
     information and executing the required documents. Subject to 
     the goal of ensuring actuarial soundness for the crop 
     insurance program, the sales closing date shall be 
     established by the Corporation to maximize convenience to 
     producers in obtaining benefits under price and production 
     adjustment programs of the Department. Beginning with the 
     1995 crop year, the Corporation shall establish, for an 
     insurance policy for each insurable crop that is planted in 
     the spring, a sales closing date that is 30 days earlier than 
     the corresponding sales closing date that was established for 
     the 1994 crop year.
       ``(3) Records.--For coverage under this title, each 
     producer shall provide records, acceptable to the 
     Corporation, of previous acreage and production or accept a 
     yield determined by the Corporation.
       ``(4) Reporting.--For coverage under this title, each 
     producer shall report acreage planted and prevented from 
     planting by the designated acreage reporting date for the 
     crop and location as established by the Corporation.''.
       (b) Producer Eligibility.--Section 520 (7 U.S.C. 1520) is 
     amended to read as follows:

     ``SEC. 520. PRODUCER ELIGIBILITY.

       ``Except as otherwise provided in this title, a producer 
     shall not be denied insurance under this title if--
       ``(1) for purposes of catastrophic risk protection 
     coverage, the producer is a `person' (as defined by the 
     Secretary); and
       ``(2) for purposes of any other plan of insurance, the 
     producer is 18 years of age and has a bona fide insurable 
     interest in a crop as an owner-operator, landlord, tenant, or 
     sharecropper.''.

     SEC. 1106. YIELD DETERMINATIONS.

       Section 508 (7 U.S.C. 1508) (as amended by section 1105(a)) 
     is further amended by inserting after subsection (e) the 
     following new subsection:
       ``(f) Yield Determinations.--
       ``(1) In general.--Subject to paragraph (2), the 
     Corporation shall implement crop insurance underwriting rules 
     that ensure that yield coverage is provided to eligible 
     producers participating in the Federal crop insurance 
     program.
       ``(2) Yield coverage plans.--
       ``(A) Actual production history.--Subject to subparagraph 
     (B), the yield for a crop shall be based on the actual 
     production history for the crop, if the crop was produced on 
     the farm without penalty during each of the 4 crop years 
     immediately preceding the crop year for which actual 
     production history is being established, building up to a 
     production data base for each of the 10 consecutive crop 
     years preceding the crop year for which actual production 
     history is being established.
       ``(B) Assigned yield.--If the producer does not provide 
     satisfactory evidence of the yield of a commodity under 
     subparagraph (A), the producer shall be assigned a yield that 
     is not less than 65 percent of the transitional yield of the 
     producer (adjusted to reflect actual production reflected in 
     the records acceptable to the Corporation for continuous 
     years), as specified in regulations issued by the Corporation 
     based on production history requirements.
       ``(C) Area yield.--The Corporation may offer a crop 
     insurance plan based on an area yield that allows an insured 
     producer to qualify for an indemnity if a loss has occurred 
     in an area (as specified by the Corporation) in which the 
     farm of the producer is located. Under an area yield plan, an 
     insured producer shall be allowed to select the level of area 
     production at which an indemnity will be paid consistent with 
     such terms and conditions as are established by the 
     Corporation.
       ``(D) Commodity-by-commodity basis.--A producer may choose 
     between individual yield or area yield coverage or combined 
     coverage (as provided in subsection (d)(4)), if available, on 
     a commodity-by-commodity basis.
       ``(3) Notice.--The Corporation shall ensure that producers 
     are given adequate notice of the applicable yield coverage 
     provisions of this section in advance of the crop insurance 
     application period for the crops to which the provisions 
     first will apply.
       ``(4) Transitional yields for producers of feed or 
     forage.--
       ``(A) In general.--If a producer does not provide 
     satisfactory evidence of the yield under paragraph (2)(A), 
     the producer shall be assigned a yield that is at least 80 
     percent of the transitional yield established by the 
     Corporation (adjusted to reflect the actual production 
     history of the producer) if the Secretary determines that--
       ``(i) the producer grows feed or forage primarily for on-
     farm use in a livestock, dairy, or poultry operation; and
       ``(ii) over 50 percent of the net farm income of the 
     producer is derived from the livestock, dairy, or poultry 
     operation.
       ``(B) Yield calculation.--The Corporation shall--
       ``(i) for the first year of participation of a producer, 
     provide the assigned yield under this paragraph to the 
     producer of feed or forage; and
       ``(ii) for the second year of participation of the 
     producer, apply the actual production history or assigned 
     yield requirement, as provided in this subsection.
       ``(C) Termination of authority.--The authority provided by 
     this paragraph shall terminate on the date that is 2 years 
     after the effective date of this paragraph.''.

     SEC. 1107. INSURANCE POLICIES.

       Subsection (g) of section 508 (7 U.S.C. 1508) (as 
     redesignated by section 1101(3)) is amended--
       (1) in paragraph (1), by striking ``(a)'' and inserting 
     ``(c)'';
       (2) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Preparation of policies.--A policy or other material 
     submitted to the Corporation under this subsection may be 
     prepared without regard to the limitations specified in this 
     title, including the requirements concerning the levels of 
     coverage and rates and the requirement that a price level for 
     each commodity insured shall equal the projected market price 
     for the commodity as established by the Corporation. The 
     policy may be subsidized only at an amount equivalent to 
     coverage authorized under this title.'';
       (3) in paragraph (3)--
       (A) in the first sentence, by striking ``taking into 
     consideration the risks covered by the policy or other 
     material''; and
       (B) in the second sentence, by inserting ``with a private 
     insurance provider'' after ``reinsurance agreement''; and
       (4) by striking paragraph (4) and inserting the following 
     new paragraphs:
       ``(4) Required publication.--Any policy, provision of a 
     policy, or rate approved under this subsection shall be 
     published as a notice in the Federal Register and made 
     available to each person who contracts with or is reinsured 
     by the Corporation under the same terms and conditions as are 
     applicable between the Corporation and the submitting person.
       ``(5) Pilot cost of production risk protection plan.--
       ``(A) In general.--The Corporation shall offer, to the 
     extent practicable, a cost of production risk protection plan 
     of insurance that would indemnify producers (including new 
     producers) for insurable losses as provided in this 
     paragraph.
       ``(B) Pilot basis.--The cost of production risk protection 
     plan shall--
       ``(i) be established as a pilot project for each of the 
     1996 and 1997 crop years; and
       ``(ii) be carried out in a number of counties that is 
     determined by the Corporation to be adequate to provide a 
     comprehensive evaluation of the feasibility, effectiveness, 
     and demand among producers for the plan.
       ``(C) Insurable loss.--An insurable loss shall be incurred 
     by a producer if the gross income of the producer (as 
     determined by the Corporation) is less than an amount 
     determined by the Corporation, as a result of a reduction in 
     yield or price resulting from an insured cause.
       ``(D) Definition of new producer.--As used in this 
     paragraph, the term `new producer' means a person that has 
     not been actively engaged in farming for a share of the 
     production of the insured crop for more than 2 crop years, as 
     determined by the Secretary.
       ``(6) Additional prevented planting policy coverage.--
       ``(A) In general.--Beginning with the 1995 crop year, the 
     Corporation shall offer to producers additional prevented 
     planting coverage that insures producers against losses in 
     accordance with this paragraph.
       ``(B) Approved insurance providers.--Additional prevented 
     planting coverage shall be offered by the Corporation through 
     approved insurance providers.
       ``(C) Timing of loss.--A crop loss shall be covered by the 
     additional prevented planting coverage if--
       ``(i) crop insurance policies were obtained for--

       ``(I) the crop year the loss was experienced; and
       ``(II) the crop year immediately preceding the year of the 
     prevented planting loss; and

       ``(ii) the cause of the loss occurred--

       ``(I) after the sales closing date for the crop in the crop 
     year immediately preceding the loss; and
       ``(II) before the sales closing date for the crop in the 
     year in which the loss is experienced.

       ``(7) Pilot transitional yield program for new producers.--
       ``(A) Increased transitional yield.--The Corporation shall 
     offer, to the extent practicable, a transitional yield 
     program for new producers to provide 110 percent of the 
     transitional yield established by the Corporation.
       ``(B) Pilot basis.--The transitional yield program shall--
       ``(i) be established as a pilot project for each of the 
     1995 and 1996 crop years; and
       ``(ii) be carried out in 30 counties that are determined by 
     the Corporation to be adequate to provide a comprehensive 
     evaluation of the feasibility, effectiveness, and demand 
     among new producers for the plan.
       ``(C) Definition of new producer.--As used in this 
     paragraph, the term `new producer' means a person that has 
     not been actively engaged in farming for a share of the 
     production of the insured crop for more than 2 crop years, as 
     determined by the Secretary.''.

     SEC. 1108. CLAIMS FOR LOSSES.

       Subsection (i) of section 508 (7 U.S.C. 1508) (as 
     redesignated by section 1101(3)) is amended to read as 
     follows:
       ``(i) Claims for Losses.--
       ``(1) In general.--The Corporation may provide for 
     adjustment and payment of claims for losses as provided under 
     subsection (a) under rules prescribed by the Corporation. The 
     rules prescribed by the Corporation shall establish standards 
     to ensure that all claims for losses are adjusted, to the 
     extent practicable, in a uniform and timely manner.
       ``(2) Denial of claims.--
       ``(A) In general.--Subject to subparagraph (B), if a claim 
     for indemnity is denied by the Corporation or by the private 
     insurance provider, an action on the claim shall only be 
     brought against the Corporation or Secretary or the insurance 
     provider in the United States District Court for the district 
     in which the insured farm is located.
       ``(B) Statute of limitations.--A suit on the claim may be 
     brought not later than 1 year after the date on which written 
     notice of denial of the claim is provided to the claimant.
       ``(3) Indemnification.--The Corporation shall provide 
     insurance companies, agents, and brokers with 
     indemnification, including costs and reasonable attorney 
     fees, from the Corporation for errors or omissions on the 
     part of the Corporation.''.

     SEC. 1109. REINSURANCE.

       Section 508 (7 U.S.C. 1508) is amended--
       (1) by striking subsection (j) (as redesignated by section 
     1101(3)) and inserting the following new subsection:
       ``(j) Reinsurance.--Notwithstanding any other provision of 
     this title, the Corporation shall, to the maximum extent 
     practicable, provide reinsurance, on such terms and 
     conditions as the Corporation determines to be consistent 
     with subsections (b) and (c) and sound reinsurance 
     principles, to insurers (as defined by the Corporation) that 
     insure producers of any agricultural commodity under 1 or 
     more plans acceptable to the Corporation. Each reinsurance 
     agreement of the Corporation with a reinsured company shall 
     require the reinsured company to bear a sufficient share of 
     any potential loss under the agreement so as to ensure that 
     the reinsured company will sell and service policies of 
     insurance in a sound and prudent manner, taking into 
     consideration the availability of private reinsurance.''; and
       (2) in subsection (k) (as so redesignated), by striking 
     ``provide'' and inserting ``offer plans of''.

     SEC. 1110. FUNDING.

       Section 516 (7 U.S.C. 1516) is amended to read as follows:

     ``SEC. 516. FUNDING.

       ``(a) Authorization of Appropriations.--
       ``(1) Expenses of corporation.--There are authorized to be 
     appropriated such sums as are necessary to cover the salaries 
     and expenses of the Corporation and the administrative and 
     operating expenses of the Corporation for the sales 
     commissions of agents.
       ``(2) Expenses of providers.--There are authorized to be 
     appropriated such sums as are necessary to cover the 
     administrative and operating expenses of an approved 
     insurance provider for the delivery of policies with coverage 
     that is greater than catastrophic risk protection.
       ``(b) Payment of Expenses.--
       ``(1) Administrative and operating expenses.--Beginning 
     with the 1996 crop year, the Corporation is authorized to 
     pay, from the insurance fund established under subsection 
     (c), the administrative and operating expenses of an approved 
     insurance provider, other than expenses covered under 
     subsection (a)(1).
       ``(2) Other expenses.--The Corporation is authorized to pay 
     from the insurance fund established under subsection (c)--
       ``(A) all other expenses of the Corporation (other than 
     expenses covered in subsection (a)(1)), including all premium 
     subsidies and indemnities;
       ``(B) for the 1995 crop year, all administrative and 
     expense reimbursements due under a reinsurance agreement with 
     an approved insurance provider; and
       ``(C) to the extent necessary, expenses incurred by the 
     Corporation to carry out research and development.
       ``(c) Insurance Fund.--
       ``(1) In general.--There is established an insurance fund 
     for the deposit of premium income, income from reinsurance 
     operations, and amounts made available under subsection 
     (a)(2).
       ``(2) Source of funding.--There are appropriated, without 
     fiscal year limitation, such sums as may be necessary to 
     carry out subsection (b) through the insurance fund.''.

     SEC. 1111. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

       The Act is amended by inserting after section 514 (7 U.S.C. 
     1514) the following new section:

     ``SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

       ``(a) Establishment.--The Secretary may establish within 
     the Department a committee to be known as the `Advisory 
     Committee for Federal Crop Insurance' (referred to in this 
     section as the `Advisory Committee'), which shall remain in 
     existence until September 30, 1998.
       ``(b) Membership.--The Advisory Committee shall be composed 
     of--
       ``(1) the Manager of the Corporation;
       ``(2) the Secretary or a designee; and
       ``(3) not fewer than 10 representatives of organizations or 
     agencies involved with the Federal crop insurance program, 
     which may include insurance companies, insurance agents, farm 
     producer organizations, experts on agronomic practices, and 
     banking and lending institutions.
       ``(c) Administrative Provisions.--
       ``(1) Terms.--Members of the Advisory Committee shall be 
     appointed by the Secretary for a term of not more than 2 
     years from nominations made by the participating 
     organizations and agencies referred to in subsection (b). The 
     terms of the members shall be staggered.
       ``(2) Chairperson.--The Advisory Committee shall be chaired 
     by the Manager of the Corporation.
       ``(3) Meetings.--The Advisory Committee shall meet at least 
     annually. The meetings of the Advisory Committee shall be 
     publicly announced in advance and shall be open to the 
     public. Appropriate records of the activities of the Advisory 
     Committee shall be kept and made available to the public on 
     request.
       ``(d) Primary Responsibility.--The primary responsibility 
     of the Advisory Committee shall be to advise the Secretary on 
     the implementation of this title and on other issues related 
     to crop insurance (as determined by the Manager of the 
     Corporation).
       ``(e) Reports.--Not later than June 30 of each year, the 
     Advisory Committee shall prepare, and submit to the 
     Secretary, a report specifying the conclusions of the 
     Advisory Committee on--
       ``(1) the progress toward implementation of this title;
       ``(2) the actuarial soundness of the Federal crop insurance 
     program; and
       ``(3) the rate of participation in the catastrophic and the 
     additional coverage programs under this title.''.

     SEC. 1112. MANAGEMENT OF CORPORATION.

       (a) In General.--The second sentence of section 505(a) (7 
     U.S.C. 1505(a)) is amended--
       (1) by striking ``program, the Under Secretary'' and 
     inserting ``program, 1 additional Under Secretary''; and
       (2) by striking ``responsible for the farm credit programs 
     of the Department of Agriculture'' and inserting ``, as 
     designated by the Secretary of Agriculture (referred to in 
     this title as the `Secretary')''.
       (b) General Powers.--Section 506 (7 U.S.C. 1506) is 
     amended--
       (1) by redesignating subsections (j) through (n) as 
     subsections (k) through (o), respectively;
       (2) by inserting after subsection (i) the following new 
     subsection:
       ``(j) Settling Claims.--The Corporation shall have the 
     authority to make final and conclusive settlement and 
     adjustment of any claim by or against the Corporation or a 
     fiscal officer of the Corporation.'';
       (3) in subsection (l) (as so redesignated)--
       (A) in the first sentence, by inserting ``, and issue 
     regulations,'' after ``agreements''; and
       (B) in the second sentence, by striking ``contracts or 
     agreements'' each place it appears and inserting ``contracts, 
     agreements, or regulations'';
       (4) in subsection (n)(1) (as so redesignated), by striking 
     subparagraph (B) and inserting the following new 
     subparagraph:
       ``(B) disqualify the person from purchasing catastrophic 
     risk protection or receiving noninsured assistance for a 
     period of not to exceed 2 years, or from receiving any other 
     benefit under this title for a period of not to exceed 10 
     years.'';
       (5) in subsection (o) (as so redesignated)--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D) and aligning the margins of 
     each subparagraph with the margins of subparagraph (A) of 
     subsection (n)(1) (as redesignated by paragraph (1));
       (B) by striking ``(o) Actuarial Soundness.--The 
     Corporation'' and inserting the following:
       ``(o) Actuarial Soundness.--
       ``(1) Projected loss ratio as of october 1, 1995.--The 
     Corporation'';
       (C) in subparagraph (A) (as redesignated by subparagraph 
     (A)), by striking ``from obtaining adequate Federal crop 
     insurance, as determined by the Corporation'' and inserting 
     ``(as defined by the Secretary) from obtaining Federal crop 
     insurance'';
       (D) in subparagraph (C) (as so redesignated)--
       (i) by inserting ``, agents, and loss adjusters'' after 
     ``participating producers''; and
       (ii) by inserting ``, agents, and loss adjusters'' after 
     ``identify insured producers''; and
       (E) by adding at the end the following new paragraphs:
       ``(2) Projected loss ratio as of october 1, 1998.--The 
     Corporation shall take such actions, including the 
     establishment of adequate premiums, as are necessary to 
     improve the actuarial soundness of Federal multiperil crop 
     insurance made available under this title to achieve, on and 
     after October 1, 1998, an overall projected loss ratio of not 
     greater than 1.0.
       ``(3) Nonstandard classification system.--To the extent 
     that the Corporation uses the nonstandard classification 
     system, the Corporation shall apply the system to all insured 
     producers in a fair and consistent manner.''; and
       (6) by adding at the end the following new subsections:
       ``(p) Loss Ratio Defined.--As used in this Act, the term 
     `loss ratio' means the ratio of all sums paid by the 
     Corporation as indemnities under any eligible crop insurance 
     policy to that portion of the premium designated for 
     anticipated losses and a reasonable reserve, other than that 
     portion of the premium designated for operating and 
     administrative expenses.
       ``(q) Regulations.--The Secretary and the Corporation are 
     each authorized to issue such regulations as are necessary to 
     carry out this title.''.
       (c) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
       (1) in subsection (a), by striking ``, and county crop 
     insurance committeemen'';
       (2) in subsection (c), by striking ``, in which case the 
     agent or broker'' and all that follows through ``the agent or 
     broker has caused the error or omission''; and
       (3) in subsection (d), by striking ``of this Act,'' and all 
     that follows through ``agency''.
       (d) Information Collection on Crop Insurance.--Subsection 
     (n) of section 508 (7 U.S.C. 1508) (as redesignated by 
     section 1101(3)) is amended to read as follows:
       ``(n) Information Collection on Crop Insurance.--The 
     Secretary shall make available to producers through local 
     offices of the Department--
       ``(1) current and complete information on all aspects of 
     Federal crop insurance; and
       ``(2) a listing of insurance agents.''.
       (e) Crop Insurance Yield Coverage.--Section 508A (7 U.S.C. 
     1508a) is repealed.
       (f) Preemption.--Section 511 (7 U.S.C. 1511) is amended by 
     inserting after ``The Corporation, including'' the following: 
     ``the contracts of insurance of the Corporation and premiums 
     on the contracts, whether insured directly or reinsured by 
     the Corporation,''.
       (g) False Statements.--Section 1014 of title 18, United 
     States Code, is amended by inserting ``or a company the 
     Corporation reinsures'' after ``Federal Crop Insurance 
     Corporation''.
               Subtitle B--Noninsured Assistance Program

     SEC. 1201. NONINSURED ASSISTANCE PROGRAM.

       The Act (7 U.S.C. 1501 et seq.) is amended by adding at the 
     end the following new section:

     ``SEC. 521. NONINSURED ASSISTANCE PROGRAM.

       ``(a) Eligibility.--
       ``(1) In general.--The Corporation shall establish a 
     noninsured assistance program to provide coverage equivalent 
     to the catastrophic risk protection insurance described in 
     section 508(b) for crops for which catastrophic risk 
     protection insurance is not available. Crops covered shall 
     include all commercial crops and commodities for which 
     catastrophic risk protection coverage is not available and 
     that are produced for food, fiber, or an industrial crop on a 
     commercial basis but shall not include livestock. Noninsured 
     assistance shall not cover losses due to--
       ``(A) the neglect or malfeasance of the producer;
       ``(B) the failure of the producer to reseed to the same 
     crop in such areas and under such circumstances as it is 
     customary to so reseed; or
       ``(C) the failure of the producer to follow good farming 
     practices (as determined by the Secretary).
       ``(2) Applications.--To be eligible for assistance under 
     this section, a producer shall make a timely application, as 
     required by the Corporation, for noninsured assistance at the 
     local office of the Department.
       ``(3) Records.--A producer shall annually provide records, 
     as required by the Corporation, of previous crop acreage and 
     yields, or the producer shall accept a yield under subsection 
     (c)(2)(B) determined by the Corporation.
       ``(4) Acreage reports.--A producer shall provide reports on 
     acreage planted or prevented from being planted, as required 
     by the Corporation, by the designated acreage reporting date 
     for the crop and location as established by the Corporation.
       ``(5) Area yield losses.--
       ``(A) Area average yield.--A producer of a noninsurable 
     crop shall not be eligible for noninsured assistance unless 
     the area (as determined by the Corporation) average yield, or 
     an equivalent measure if yield data are not available, for 
     the crop is less than 65 percent of the expected area yield 
     established by the Corporation.
       ``(B) Prevented planting payments.--Subject to subparagraph 
     (A), the Corporation shall make a prevented planting 
     noninsured assistance payment to a producer if the producer 
     is prevented from planting more than 35 percent of the 
     acreage intended for the crop because of drought, flood, or 
     other natural disaster (as determined by the Secretary).
       ``(C) Reduced yield payments.--Subject to subparagraph (A), 
     if, because of drought, flood, or other natural disaster (as 
     determined by the Secretary), the total quantity of the crop 
     that a producer is able to harvest on any farm is less than 
     50 percent of the expected area yield for the crop (as 
     determined by the Corporation) factored for the interest of 
     the producer for the crop, the Corporation shall make a 
     reduced yield noninsured assistance payment.
       ``(b) Payment.--The Corporation shall make available to a 
     producer eligible for noninsured assistance under this 
     section a payment computed by multiplying--
       ``(1) the quantity that is less than 50 percent of the 
     established yield for the crop; by
       ``(2) 60 percent of the average market price for the crop 
     (or any comparable coverage determined by the Corporation); 
     by
       ``(3) a payment rate for the type of crop (as determined by 
     the Corporation) that--
       ``(A) in the case of a crop that is produced with a 
     significant and variable harvesting expense, a payment rate 
     that reflects the decreasing cost incurred in the production 
     cycle for the crop that is--
       ``(i) harvested;
       ``(ii) planted but not harvested; and
       ``(iii) prevented from being planted because of drought, 
     flood, or other natural disaster (as determined by the 
     Secretary); and
       ``(B) in the case of a crop that is not produced with a 
     significant and variable harvesting expense, a payment rate 
     determined by the Corporation.
       ``(c) Yields.--
       ``(1) In general.--The Corporation shall establish 
     noninsured assistance program farm yields for crops for the 
     purposes of this section.
       ``(2) Actual production history.--
       ``(A) In general.--Subject to subparagraph (B), the yield 
     for a crop shall be based on the actual production history 
     for the crop, if the crop was produced on the farm without 
     penalty during each of the 4 crop years immediately preceding 
     the crop year for which actual production history is being 
     established, building up to a production data base of the 10 
     crop years immediately preceding the crop year for which 
     production history is being established.
       ``(B) Assigned yield.--
       ``(i) In general.--If the producer does not provide 
     sufficient evidence of the yield (as required by the 
     Corporation) of a commodity under subparagraph (A), the 
     producer shall be assigned a yield that is not less than 65 
     percent of the transitional yield of the producer (adjusted 
     to reflect actual production reflected in the records 
     acceptable to the Corporation for continuous years), as 
     specified in regulations issued by the Corporation based on 
     production history requirements.
       ``(ii) Limitation.--A producer who receives an assigned 
     yield for the current year of a natural disaster because 
     required production records were not submitted to the local 
     office of the Department shall not be eligible for an 
     assigned yield for the year of the next natural disaster 
     unless the required production records of the previous 1 or 
     more years (as applicable) are provided to the local office.
       ``(C) Yield variations due to different farming 
     practices.--The Corporation shall make noninsured payments 
     that accurately reflect significant yield variations due to 
     different farming practices, such as between irrigated and 
     nonirrigated acreage.
       ``(d) Increased Crop Plantings.--
       ``(1) In general.--If the acreage of a crop in a county has 
     increased by more than 100 percent since the 1987 crop year, 
     to become eligible for a noninsured assistance payment, a 
     producer must provide detailed documentation of production 
     costs, acres planted, and yield, as required by the 
     Corporation. Except as provided in paragraph (2), a producer 
     who produces a crop on a farm located in a county described 
     in the preceding sentence may not obtain an assigned yield.
       ``(2) Exception.--A crop or a producer shall not be subject 
     to this subsection if--
       ``(A) the planted acreage of the producer for the crop has 
     been inspected by a third party acceptable to the Secretary; 
     or
       ``(B)(i) the County Executive Director, the District 
     Director, and the State Executive Director recommend an 
     exemption from the requirement to the Deputy Administrator 
     for State and County Operations of the Agricultural 
     Stabilization and Conservation Service; and
       ``(ii) the Deputy Administrator approves the 
     recommendation.
       ``(e) Contract Payments.--A producer who has received a 
     guaranteed payment for production, as opposed to delivery, of 
     a crop pursuant to a contract shall have the production of 
     the producer adjusted upward by the amount of the production 
     equal to the amount of the contract payment received.
       ``(f) Payment of Losses.--Payments for noninsured 
     assistance losses under this section shall be made from the 
     insurance fund established under section 516(b). The losses 
     shall not be included in calculating the premiums charged to 
     producers for insurance.''.

     SEC. 1202. PAYMENT AND INCOME LIMITATIONS.

       Section 521 (as added by section 1201) is further amended 
     by adding at the end the following new subsection:
       ``(g) Payment and Income Limitations.--
       ``(1) Definitions.--As used in this subsection:
       ``(A) Person.--The term `person' has the meaning provided 
     the term in regulations issued by the Secretary. The 
     regulations shall conform, to the extent practicable, to the 
     regulations defining the term `person' issued under section 
     1001 of the Food Security Act of 1985 (7 U.S.C. 1308).
       ``(B) Qualifying gross revenues.--The term `qualifying 
     gross revenues' means--
       ``(i) if a majority of the gross revenue of the person is 
     received from farming, ranching, and forestry operations, the 
     gross revenue from the farming, ranching, and forestry 
     operations of the person; and
       ``(ii) if less than a majority of the gross revenue of the 
     person is received from farming, ranching, and forestry 
     operations, the gross revenue of the person from all sources.
       ``(2) Payment limitation.--The total amount of payments 
     that a person shall be entitled to receive annually under 
     this title may not exceed $100,000.
       ``(3) No double benefits.--No person may receive a 
     noninsured assistance payment under this title and emergency 
     livestock feed assistance under section 606 of the 
     Agricultural Act of 1949 (7 U.S.C. 1471d) for the same 
     livestock feed or forage loss.
       ``(4) Income limitation.--A person who has qualifying gross 
     revenues in excess of the amount specified in section 2266(a) 
     of the Food, Agriculture, Conservation, and Trade Act of 1990 
     (7 U.S.C. 1421 note) (as in effect on November 28, 1990) 
     during the taxable year (as determined by the Secretary) 
     shall not be eligible to receive any noninsured assistance 
     payment under this section.
       ``(5) Regulations.--The Secretary shall issue regulations 
     prescribing such rules as the Secretary determines necessary 
     to ensure a fair and equitable application of section 1001 of 
     the Food Security Act of 1985 (7 U.S.C. 1308), the general 
     payment limitation regulations of the Secretary, and the 
     limitations established under this subsection.''.
                       Subtitle C--Miscellaneous

     SEC. 1301. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
                   ASSISTANCE PAYMENTS.

       The Act (7 U.S.C. 1501 et seq.) (as amended by section 
     1201) is further amended by adding at the end the following 
     new section:

     ``SEC. 522. INELIGIBILITY FOR CATASTROPHIC RISK AND 
                   NONINSURED ASSISTANCE PAYMENTS.

       ``If the Secretary determines that a person has knowingly 
     adopted a material scheme or device to obtain catastrophic 
     risk, additional coverage, or noninsured assistance benefits 
     under this Act to which the person is not entitled, has 
     evaded this Act, or has acted with the purposes of evading 
     this Act, the person shall be ineligible to receive all 
     benefits applicable to the crop year for which the scheme or 
     device was adopted. The authority provided by this section 
     shall be in addition to, and shall not supplant, the 
     authority provided by section 506(m).''.

     SEC. 1302. PREVENTED PLANTING.

       (a) In General.--Effective for the 1994 crop year, a 
     producer described in subsection (b) shall receive 
     compensation under the prevented planting coverage policy 
     provision described in subsection (b)(1) by--
       (1) obtaining from the Secretary of Agriculture the 
     applicable amount that is payable under the conservation use 
     program described in subsection (b)(4); and
       (2) obtaining from the Federal Crop Insurance Corporation 
     the amount that is equal to the difference between--
       (A) the amount that is payable under the conservation use 
     program; and
       (B) the amount that is payable under the prevented planting 
     coverage policy.
       (b) Eligible Producers.--Subsection (a) shall apply to a 
     producer who--
       (1) purchased a prevented planting policy for the 1994 crop 
     year from the Federal Crop Insurance Corporation prior to the 
     spring sales closing date for the 1994 crop year;
       (2) is unable to plant a crop due to major, widespread 
     flooding in the Midwest, or excessive ground moisture, that 
     occurred prior to the spring sales closing date for the 1994 
     crop year;
       (3) had a reasonable expectation of planting a crop on the 
     prevented planting acreage for the 1994 crop year; and
       (4) participates in a conservation use program established 
     for the 1994 crop of wheat, feed grains, upland cotton, or 
     rice established under section 107B(c)(1)(E), 105B(c)(1)(E), 
     103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the 
     Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 
     1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
       (c) Oilseed Prevented Planting Payments.--
       (1) In general.--Effective for the 1994 crop year, a 
     producer of a crop of oilseeds (as defined in section 205(a) 
     of the Agricultural Act of 1949 (7 U.S.C. 1446f(a)) shall 
     receive a prevented planting payment for the crop if the 
     requirements of paragraphs (1), (2), and (3) of subsection 
     (b) are satisfied.
       (2) Source of payment.--The total amount of payments 
     required under this subsection shall be made by the Federal 
     Crop Insurance Corporation.
       (d) Payment.--A payment under this section may not be made 
     before October 1, 1994.

     SEC. 1303. CONFORMING AMENDMENTS.

       (a) Price Support Programs.--
       (1) In general.--Title IV of the Agricultural Act of 1949 
     (7 U.S.C. 1421 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 427. CROP INSURANCE REQUIREMENT.

       ``As a condition of receiving any benefit (including 
     payments) under title I or II for each of the 1995 and 
     subsequent crops of tobacco, rice, extra long staple cotton, 
     upland cotton, feed grains, wheat, peanuts, oilseeds, and 
     sugar and for each of the 1995 and subsequent calendar years 
     with respect to milk, a producer must obtain at least 
     catastrophic risk protection insurance coverage under section 
     508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the 
     crop and crop year for which the benefit is sought, if the 
     coverage is offered by the Corporation.''.
       (2) Rice.--Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) 
     is amended--
       (A) in paragraph (1), by striking subparagraph (F); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Crop insurance requirement.--A producer shall obtain 
     catastrophic risk protection insurance coverage in accordance 
     with section 427.''.
       (3) Upland cotton.--Section 103B(c) of such Act (7 U.S.C. 
     1444-2(c)) is amended--
       (A) in paragraph (1), by striking subparagraph (F); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Crop insurance requirement.--A producer shall obtain 
     catastrophic risk protection insurance coverage in accordance 
     with section 427.''.
       (4) Feed grains.--Section 105B(c) of such Act (7 U.S.C. 
     1444f(c)) is amended--
       (A) in paragraph (1), by striking subparagraph (G); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Crop insurance requirement.--A producer shall obtain 
     catastrophic risk protection insurance coverage in accordance 
     with section 427.''.
       (5) Wheat.--Section 107B(c) of such Act (7 U.S.C. 1445b-
     3a(c)) is amended--
       (A) in paragraph (1), by striking subparagraph (G); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Crop insurance requirement.--A producer shall obtain 
     catastrophic risk protection insurance coverage in accordance 
     with section 427.''.
       (6) Disaster payments.--Section 208 of such Act (7 U.S.C. 
     1446i) is repealed.
       (b) Farmers Home Administration Programs.--The Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is 
     amended by adding at the end the following new section:

     ``SEC. 371. CROP INSURANCE REQUIREMENT.

       ``(a) In General.--As a condition of obtaining any benefit 
     (including a direct loan, loan guarantee, or payment) 
     described in subsection (b), a borrower must obtain at least 
     catastrophic risk protection insurance coverage under section 
     508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the 
     crop and crop year for which the benefit is sought, if the 
     coverage is offered by the Corporation.
       ``(b) Applicable Benefits.--Subsection (a) shall apply to--
       ``(1) a farm ownership loan (FO) under section 303;
       ``(2) an operating loan (OL) under section 312; and
       ``(3) an emergency loan (EM) under section 321.''.
       (c) Disaster Assistance.--Subtitle B of title XXII of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 1421 note) is amended by striking chapter 3.
       (d) Emergency Appropriations.--
       (1) In general.--Section 251(b)(2)(D)(i) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     901(b)(2)(D)(i)) is amended by adding at the end the 
     following new sentence: ``This subparagraph shall not apply 
     to appropriations to cover agricultural crop disaster 
     assistance.''.
       (2) Emergency legislation.--Section 252(e) of such Act (2 
     U.S.C. 902(e)) is amended by adding at the end the following 
     new sentence: ``This subsection shall not apply to direct 
     spending provisions to cover agricultural crop disaster 
     assistance.''.
       (e) Technical Amendments.--
       (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) 
     is amended by striking ``508(f)'' and inserting ``508(i)''.
       (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) 
     is amended by striking ``508(b)'' and inserting ``508(g)''.
       (3) Section 518 (7 U.S.C. 1518) is amended by striking 
     ``(k)'' and inserting ``(m)''.

     SEC. 1304. DISASTER ASSISTANCE.

       (a) Crop Loss Assistance.--The Secretary of Agriculture may 
     provide assistance to producers for crop losses in 1994 due 
     to natural disasters under the terms and conditions of--
       (1) chapter 3 of subtitle B of title XXII of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1421 note); and
       (2) subsections (a)(4), (b)(3), (d), and (e) of section 521 
     of the Federal Crop Insurance Act (as amended by this title).
       (b) Other Emergency Assistance.--To provide assistance for 
     losses in 1994 due to natural disasters, the Secretary of 
     Agriculture may provide assistance under--
       (1) the emergency conservation program established under 
     title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 
     2201 et seq.);
       (2) the emergency watershed protection program of the Soil 
     Conservation Service; and
       (3) the emergency community water assistance grant program 
     established under section 306A of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1926a).
       (c) Funding.--
       (1) Crop loss assistance.--Out of available funds of the 
     Commodity Credit Corporation, the Commodity Credit 
     Corporation is authorized to provide to the Secretary of 
     Agriculture, through July 15, 1995, such sums as are 
     necessary to carry out subsection (a).
       (2) Other emergency assistance.--There are authorized to be 
     appropriated such sums as are necessary to carry out 
     subsection (b).
       (3) Emergency requirement.--The amounts made available 
     under paragraphs (1) and (2) are designated by Congress as an 
     emergency requirement pursuant to section 252(e) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 902(e)). The amounts shall be available only to the 
     extent that an official budget request for specific dollar 
     amounts, that includes designation of the entire amount of 
     the request as an emergency requirement pursuant to such Act, 
     is transmitted by the President to Congress.
       (d) Definition of Natural Disasters.--As used in this 
     section, the term ``natural disasters'' includes weather-
     related insect damage to strawberries.

     SEC. 1305. USE OF COMMODITY CREDIT CORPORATION FUNDS TO COVER 
                   CERTAIN COSTS FOR FALL-PLANTED 1995 CROPS.

       (a) Definition of Fall-Planted 1995 Crop.--As used in this 
     section, the term ``fall-planted 1995 crop'' means a 1995 
     crop that is insurable under the Federal Crop Insurance Act 
     (7 U.S.C. 1501 et seq.) with a sales closing date that is 
     prior to January 1, 1995.
       (b) Use of Funds to Cover Costs.--Subject to the other 
     provisions of this section, the Federal Crop Insurance 
     Corporation may use funds of the Commodity Credit Corporation 
     to cover operating and administrative costs of the 
     Corporation referred to in section 516(a)(1) of the Federal 
     Crop Insurance Act (7 U.S.C. 1516(a)(1)) associated with 
     insurance policies issued for a fall-planted 1995 crop under 
     such Act (7 U.S.C. 1501 et seq.).
       (c) Limitation on Amount of Funds.--The amount of funds of 
     the Commodity Credit Corporation that may be used under 
     subsection (b) may not exceed $40,000,000.
       (d) Combined Limitation on Amount of Funds and Emergency 
     Crop Loss Assistance.--The amount of funds of the Commodity 
     Credit Corporation used under subsection (b) and the amount 
     of funds used for fiscal year 1995 to provide emergency crop 
     loss assistance for 1995 crops shall not exceed $500,000,000.

     SEC. 1306. POULTRY LABELING, PUBLIC HEARINGS.

       It is the sense of the Senate that the United States 
     Department of Agriculture should carry out its plans to hold 
     public hearings during the month of September 1994, for the 
     purpose of receiving public input on issues related to the 
     conditions under which poultry sold in the United States may 
     be labeled ``fresh'' and to finalize and publish a decision 
     on this issue as expeditiously as possible thereafter. It is 
     the further sense of the Senate that no person serving on the 
     expert advisory committee established to advise the Secretary 
     of Agriculture on this issue should stand to profit, or 
     represent any interest that would stand to profit, from the 
     Department's decision on the issue.

     SEC. 1307. AGRICULTURE EMPLOYEES FIRST AMENDMENT RIGHTS.

       Notwithstanding any other provision of law, no employee of 
     the United States Department of Agriculture shall be 
     peremptorily removed without public hearings from his or her 
     position because of remarks made during personal time in 
     opposition to Departmental policies, or proposed policies 
     regarding homosexuals: Provided, That any such individual so 
     removed prior to date of enactment shall be reinstated to his 
     or her previous position.

     SEC. 1308. ADJUSTED COST OF THRIFTY FOOD PLAN.

       Section 3(o)(11) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(o)(11)) is amended by inserting before the period at the 
     end the following: ``, except that the Secretary may not 
     reduce the cost of such diet below the allotment in effect 
     for fiscal year 1994.''.

     SEC. 1309. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this 
     title, this title and the amendments made by this title shall 
     become effective beginning with--
       (1) if this title is enacted before October 1, 1994, the 
     1995 crop year for the applicable agricultural commodity; or
       (2) if this title is enacted on or after October 1, 1994, 
     the 1996 crop year for the applicable agricultural commodity.
       (b) Exceptions.--
       (1) In general.--Sections 1100, 1101(1), 1112(e), 1112(f), 
     and 1302, the amendments made by such sections, and this 
     section shall become effective on the date of enactment of 
     this Act.
       (2) Emergency appropriations.--The amendments made by 
     section 1303(d) shall become effective--
       (A) if this title is enacted before October 1, 1994, on the 
     date of enactment of this title; or
       (B) if this title is enacted on or after October 1, 1994, 
     on June 1, 1995.

     SEC. 1310. TERMINATION OF AUTHORITY.

       The authority provided by this title and the amendments 
     made by this title shall terminate on September 30, 2000.
           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION
             Subtitle A--Short Title; Purpose; Definitions

     SEC. 2101. SHORT TITLE.

       This title may be cited as the ``Department of Agriculture 
     Reorganization Act of 1994''.

     SEC. 2102. PURPOSE.

       The purpose of this title is to provide the Secretary of 
     Agriculture with the necessary authority to streamline and 
     reorganize the Department of Agriculture to achieve greater 
     efficiency, effectiveness, and economies in the organization 
     and management of the programs and activities carried out at 
     the Department.

     SEC. 2103. DEFINITIONS.

       As used in this title (unless the context clearly requires 
     otherwise):
       (1) Administrative unit.--The term ``administrative unit'' 
     includes--
       (A) any office, administration, agency, institute, unit, or 
     organizational entity, or component thereof, except that the 
     term does not include a corporation; and
       (B) any county, State, or area committee, as established by 
     the Secretary.
       (2) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (3) Function.--The term ``function'' means an 
     administrative, financial, or regulatory duty of an 
     administrative unit or employee of the Department, including 
     a transfer of funds made available to carry out a function of 
     an administrative unit.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
            Subtitle B--General Authorities of the Secretary

     SEC. 2201. DELEGATION OF FUNCTIONS TO THE SECRETARY.

       (a) Delegation of Functions.--Except as otherwise provided 
     in this title and notwithstanding any other provision of law, 
     all functions and all activities, officers, employees, and 
     administrative units of the Department, not vested in the 
     Secretary on the date of enactment of this Act, are delegated 
     to the Secretary.
       (b) Exceptions to the Delegation.--This section shall not 
     apply to the following functions and administrative units of 
     the Department:
       (1) The functions vested in administrative law judges by 
     subchapter II of chapter 5 of title 5, United States Code.
       (2) The functions vested in the Inspector General by the 
     Inspector General Act of 1978 (5 U.S.C. App. 3).
       (3) The functions vested in the Chief Financial Officer by 
     chapter 9 of subtitle I of title 31, United States Code.
       (4) Corporations and the boards of directors and officers 
     of the corporations.
       (5) The functions vested in the Alternative Agricultural 
     Research and Commercialization Board by the Alternative 
     Agricultural Research and Commercialization Act of 1990 (7 
     U.S.C. 5901 et seq.).

     SEC. 2202. REORGANIZATION.

       (a) General Authority of the Secretary.--The Secretary may 
     transfer any function or administrative unit of the 
     Department, including any function or administrative unit 
     delegated to the Secretary by this title, and any officer or 
     employee of the Department, as the Secretary considers 
     appropriate. The authority established in the preceding 
     sentence includes the authority to establish, consolidate, 
     alter, or discontinue any administrative unit of the 
     Department.
       (b) Authority To Transfer Records, Property, and Funds.--
       (1) In general.--Subject to section 1531 of title 31, 
     United States Code, the Secretary may transfer any of the 
     records, property, and unexpended balances (available or to 
     be made available for use in connection with any affected 
     function or administrative unit) of appropriations, 
     allocations, and other funds of the Department, as the 
     Secretary considers necessary to carry out this title, except 
     as otherwise provided in this section.
       (2) Use.--Absent prior approval by law, any unexpended 
     balances transferred pursuant to paragraph (1) shall be used 
     only for the purposes for which the funds were originally 
     made available.
       (3) Additional authority.--The Secretary may make such 
     additional incidental dispositions of personnel, assets, 
     liabilities, grants, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds held, used, arising from, 
     available to, or to be made available in connection with the 
     functions or administrative units, as the Secretary considers 
     necessary to carry out this title.
       (c) Purpose of the Authority.--The Secretary shall carry 
     out subsections (a) and (b) with the goals of simplifying and 
     maximizing the efficiency of the national, State, regional, 
     and local levels of the Department, and of improving the 
     accessibility of farm and other programs at all levels. To 
     the extent practicable, the Secretary shall adapt the 
     administration of the programs to State, regional, and local 
     conditions.
       (d) Exhaustion of Administrative Appeals.--Notwithstanding 
     any other provision of law, a person shall exhaust all 
     administrative appeal procedures established by the Secretary 
     before the person may bring an action in a court of competent 
     jurisdiction against--
       (1) the Secretary;
       (2) the Department;
       (3) an administrative unit of the Department; or
       (4) an employee or agent of an administrative unit of the 
     Department.
       (e) Conforming Amendments.--Section 9 of the Commodity 
     Credit Corporation Charter Act (15 U.S.C. 714g) is amended--
       (1) in subsection (a), by striking ``(a)''; and
       (2) by striking subsection (b).

     SEC. 2203. PERSONNEL REDUCTIONS.

       (a) Definitions.--As used in this section:
       (1) Field structure.--The term ``field structure'' means 
     the offices, functions, and employee positions of all 
     administrative units of the Department, other than the 
     headquarters offices. The term includes the physical and 
     geographic locations of the units. The term shall not include 
     State, county, or area committees established under section 
     8(b) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(b)).
       (2) Headquarters offices.--The term ``headquarters 
     offices'' means the offices, functions, and employee 
     positions of all administrative units of the Department 
     located or performed in Washington, District of Columbia, or 
     elsewhere, as determined by the Secretary.
       (b) Employee Reductions.--Subject to subsection (c), the 
     Secretary shall achieve employee reductions of at least 7,500 
     staff years within the Department by September 30, 1999.
       (c) Distribution.--The percentage of employee reductions in 
     the headquarters offices under subsection (b) shall be 
     substantially higher than the percentage of employee 
     reductions in the field structure, as determined by the 
     Secretary.
       (d) Schedule.--The personnel reductions under subsections 
     (b) and (c) should be accomplished concurrently in a manner 
     determined by the Secretary.

     SEC. 2204. CONSOLIDATION OF HEADQUARTERS OFFICES.

       The Secretary shall develop and carry out a plan to 
     consolidate offices of administrative units of the Department 
     located in Washington, District of Columbia, subject to the 
     availability of appropriations.

     SEC. 2205. REPORTS BY THE SECRETARY.

       (a) In General.--Subject to subsection (b), notwithstanding 
     any other provision of law, the Secretary may, but shall not 
     be required to, prepare and submit any report to Congress or 
     any committee of Congress.
       (b) Limitation.--For each fiscal year, the Secretary may 
     not prepare and submit more than 30 reports referred to in 
     subsection (a).
       (c) Selection of Reports.--In consultation with the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, the Secretary shall determine which reports shall be 
     prepared and submitted in accordance with subsection (b).
                 Subtitle C--National Appeals Division

     SEC. 2301. DEFINITIONS.

       As used in this subtitle:
       (1) Adverse decision.--The term ``adverse decision'' means 
     an administrative decision made by a decisionmaker that is 
     adverse to a participant, including a denial of equitable 
     relief, except that the term shall not include a decision 
     over which the Board of Contract Appeals has jurisdiction. 
     The term shall include the failure of a decisionmaker to 
     issue a decision or otherwise act on the request or right of 
     the participant to participate in, or receive payments, 
     loans, or other benefits under, any of the programs 
     administered by an agency. Notwithstanding section 701(a)(2) 
     of title 5, United States Code, a discretionary decision of 
     the Secretary or the Division shall be reviewable under 
     section 706(2)(A) of such title unless the decision is 
     generally applicable to all program participants and, as a 
     matter of general applicability, is committed to agency 
     discretion by law within the meaning of section 701(a)(2) of 
     such title.
       (2) Agency.--The term ``agency'' means any agency of the 
     Department designated by the Secretary or a successor agency 
     of the Department, except that the term shall include--
       (A) ASCS;
       (B) CCC, with respect to domestic programs;
       (C) FmHA (including rural housing programs);
       (D) FCIC;
       (E) RDA (including rural housing programs);
       (F) SCS; or
       (G) a State or county committee established under section 
     8(b) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(b)) or the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.).
       (3) Appellant.--The term ``appellant'' means a participant 
     who appeals an adverse decision in accordance with this 
     subtitle.
       (4) ASCS.--The term ``ASCS'' means the Agricultural 
     Stabilization and Conservation Service or a successor agency.
       (5) Case record.--The term ``case record'' means all the 
     materials maintained by the Secretary that concern the 
     participant, including any materials related to the adverse 
     decision.
       (6) CCC.--The term ``CCC'' means the Commodity Credit 
     Corporation or a successor agency.
       (7) Decisionmaker.--The term ``decision- maker'' means an 
     officer, employee, or committee of an agency who makes an 
     adverse decision that is appealed by an appellant.
       (8) Director.--The term ``Director'' means the Director of 
     the Division.
       (9) Division.--The term ``Division'' means the National 
     Appeals Division established by this subtitle.
       (10) Employee.--The term ``employee'' means an individual 
     employed by an agency, including an individual who enters 
     into a contract with an agency to perform services for the 
     agency.
       (11) Final determination.--The term ``final determination'' 
     means a determination of an appeal by the Division that is 
     administratively final, conclusive, and binding.
       (12) FCIC.--The term ``FCIC'' means the Federal Crop 
     Insurance Corporation or a successor agency.
       (13) FmHA.--The term ``FmHA'' means the Farmers Home 
     Administration or a successor agency.
       (14) Hearing officer.--The term ``hearing officer'' means 
     an individual employed by the Division who hears and 
     determines appeals of adverse decisions by any agency.
       (15) Hearing record.--The term ``hearing record'' means the 
     transcript of a hearing, any audio tape or similar recording 
     of a hearing, any information from the case record that a 
     hearing officer considers relevant or that is raised by the 
     appellant or agency, and all documents and other evidence 
     presented to a hearing officer.
       (16) Implement; implementation.--The terms ``implement'' 
     and ``implementation'' refer to those actions necessary to 
     effectuate fully and promptly a determination of the Division 
     not later than 30 calendar days after the effective date of 
     the determination.
       (17) Participant.--The term ``participant'' means any 
     individual, group of individuals, partnership, corporation, 
     association, cooperative, or other entity whose application 
     for, or right to participate in or receive, payments, loans, 
     or other benefits in accordance with any of the programs 
     administered by an agency, is affected by an adverse decision 
     made by a decisionmaker.
       (18) RDA.--The term ``RDA'' means the Rural Development 
     Administration or a successor agency.
       (19) SCS.--The term ``SCS'' means the Soil Conservation 
     Service or a successor agency.
       (20) State director.--The term ``State director'' means the 
     individual who is primarily responsible for carrying out the 
     program of an agency within a State.

     SEC. 2302. NATIONAL APPEALS DIVISION AND DIRECTOR.

       (a) Establishment of Division.--
       (1) Establishment.--The Secretary shall establish and 
     maintain a National Appeals Division within the Office of the 
     Secretary to carry out this subtitle.
       (2) APA application.--The provisions of title 5, United 
     States Code, shall apply to all appeals of the Division, 
     including chapters 5 and 7 of such title.
       (3) Procedural regulations and policies.--The Secretary 
     shall promulgate procedural regulations and policies to 
     govern the conduct of the business of the Division. The 
     Secretary shall ensure and enhance the independence, 
     integrity, and efficiency of the Division, the Director, 
     hearing officers, and other employees of the Division.
       (b) Director.--
       (1) Appointment.--The Division shall be headed by a 
     Director.
       (2) Position classification.--The position of the Director 
     shall be a Senior Executive Service position that shall be 
     filled by a career appointee (as defined in section 
     3132(a)(4) of title 5, United States Code), who shall not be 
     subject to removal except for cause in accordance with law.
       (3) Qualifications.--The Director shall be a person who has 
     substantial experience in practicing administrative law. In 
     considering applicants for the position of Director, the 
     Secretary shall consider persons employed outside the 
     Government as well as Government employees.
       (4) Conforming amendment.--Section 5316 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Director, National Appeals Division, Department of 
     Agriculture.''.
       (c) Direction, Control, and Support.--The Director shall be 
     free from the direction and control of any person other than 
     the Secretary. The Division shall not receive administrative 
     support (except on a reimbursable basis) from any agency 
     other than the Office of the Secretary. The Secretary may not 
     delegate to any other officer or employee of the Department, 
     other than the Director, the authority of the Secretary with 
     respect to the Division.
       (d) Communication With Secretary and Agencies.--The 
     Director shall inform the Secretary and the appropriate 
     agency of problems regarding the functions of the agency that 
     are identified as a result of the activities of the Division 
     under this subtitle. The information provided by the Director 
     may include proposals to resolve the problems identified or 
     otherwise to improve the programs of the agency.
       (e) Appealable Decisions.--Subject to section 2304(b)(2), 
     if a decisionmaker determines that a decision is not 
     appealable and a participant appeals the decision to the 
     Director, the Director shall determine whether the decision 
     is adverse or of general applicability, and thus appealable. 
     Except for a legal interpretation that may be reversed or 
     modified by the Secretary, the determination of the Director 
     as to whether a decision is appealable shall be 
     administratively final, conclusive, and binding.
       (f) Other Powers of the Director.--The Director may enter 
     into contracts and make other arrangements for reporting and 
     other services and make such payments as may be necessary to 
     carry out this subtitle.

     SEC. 2303. TRANSFER OF FUNCTIONS.

       There are transferred to the Division all functions 
     exercised and all administrative appeals pending before the 
     date of enactment of this Act (including all related 
     functions of any officer or employee) of or relating to--
       (1) the National Appeals Division established by section 
     426(c) of the Agricultural Act of 1949 (7 U.S.C. 1433e(c)) 
     (as in effect before the amendment made by section 
     2315(a)(2));
       (2) the National Appeals Division established by 
     subsections (d) through (g) of section 333B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) 
     (as in effect before the amendment made by section 2315(b));
       (3) appeals of decisions made by FCIC; and
       (4) appeals of decisions made by SCS.

     SEC. 2304. PERSONNEL OF THE DIVISION.

       (a) Appointment, Direction, and Control.--The Director 
     shall appoint such hearing officers and other employees as 
     are necessary for the administration of the Division. A 
     hearing officer or other employee of the Division shall have 
     no duties other than those that are necessary to carry out 
     this subtitle. Hearing officers shall be supervised by the 
     Director. All other employees of the Division shall report to 
     the Director.
       (b) Legal Counsel.--
       (1) In general.--The Director shall employ legal counsel to 
     advise the Director with respect to legal questions affecting 
     the Division. The legal counsel shall not serve as a counsel 
     to any other agency of the Department. This subsection is not 
     intended to affect the role of the Office of General Counsel 
     in representing the Department in civil or criminal actions 
     or as a liaison between the Department and any other Federal 
     agency.
       (2) Review by the secretary.--If a hearing officer or the 
     Director disagrees with the General Counsel on a matter of 
     legal interpretation with respect to a program or authority 
     of the Department, the Secretary shall have the authority to 
     make a final determination on the interpretation at the 
     request of the General Counsel. The authority of the 
     Secretary under this paragraph may not be delegated.
       (c) Performance Evaluations.--The Director shall establish 
     policies to provide for the evaluation of the Director, 
     hearing officers, and other employees of the Division who are 
     involved in the appeal process under section 2308 or the 
     supervision of other employees. The evaluation process shall 
     be designed to ensure and enhance the independence, 
     integrity, and efficiency of the Director and employees of 
     the Division. The actual evaluations shall include 
     evaluations by individuals outside of the Department and may 
     include peer review.

     SEC. 2305. NOTICE AND OPPORTUNITY FOR HEARING.

       (a) Notice Required.--Not later than 10 working days after 
     an adverse decision is made that is adverse to the 
     participant, the Secretary shall provide the participant with 
     the written notice described in subsection (b).
       (b) Content of Notice.--The notice required under 
     subsection (a) shall contain a description of the following:
       (1) The decision, including all of the reasons, facts, and 
     conclusions underlying the decision.
       (2) The appeal and implementation process available to the 
     participant, including the rights and responsibilities of the 
     participant provided by this subtitle.
       (3) An opportunity to request a determination by the 
     Director pursuant to section 2302(e) concerning whether a 
     decision is appealable, if the decisionmaker determines that 
     the decision is not appealable.
       (c) Maintenance of Records.--The Secretary and the Director 
     shall maintain the entire case record and hearing record, 
     respectively, and any additional information from any further 
     appeal proceeding, of the participant at least until the 
     expiration of the period during which the participant may 
     seek administrative or judicial review of the determination.
       (d) Joinder.--
       (1) Guaranteed loans.--With regard to a guaranteed loan 
     under the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1921 et seq.), a borrower or applicant who is directly 
     and adversely affected by a decision of the Secretary may 
     appeal the decision pursuant to this subtitle without the 
     lender joining in the appeal.
       (2) Rental housing.--A tenant in rental housing of an 
     agency who is individually, directly, and adversely affected 
     by a decision of the Secretary may appeal the decision 
     pursuant to this subtitle without the landlord joining in the 
     appeal.
       (3) Third parties.--If the Director determines that the 
     receipt of a payment, loan, or other direct benefit by a 
     participant may be directly, substantially, and adversely 
     affected by a determination of the Division, a hearing 
     officer may invite the participant to participate in a 
     hearing if the final determination resulting from the hearing 
     would, as a practical matter, foreclose the participant from 
     receiving the payment, loan, or other direct benefit of the 
     participant. If the participant elects to participate in the 
     hearing, the participant shall have the same procedural 
     rights as the appellant with regard to the hearing and other 
     procedures described in this subtitle.
       (e) Effect of Reversal or Modification of Adverse 
     Decision.--If an adverse decision is reversed or modified by 
     the Division, a decisionmaker may not base any subsequent 
     adverse decision with regard to that appellant on the 
     information that was available to the previous decisionmaker 
     (or could have been available with reasonable diligence on 
     the part of the previous decisionmaker).

     SEC. 2306. INFORMAL HEARINGS.

       If a decisionmaker of an agency makes an adverse decision, 
     the decisionmaker shall hold, at the request of the 
     participant, an informal hearing on the decision.

     SEC. 2307. RIGHTS OF PARTICIPANTS.

       Among other rights, a participant shall have the right, in 
     accordance with this subtitle, to--
       (1) appeal any adverse decision;
       (2) representation by an attorney or nonattorney throughout 
     the informal hearing and appeals process under this subtitle;
       (3) access to, and a reasonable opportunity to inspect and 
     reproduce, the case record at an office of the agency located 
     in the area of the participant; and
       (4) an evidentiary hearing.

     SEC. 2308. DIVISION HEARINGS AND DIRECTOR REVIEW.

       (a) Powers of Director and Hearing Officers.--To carry out 
     their responsibilities under this section, the Director and 
     hearing officers--
       (1) shall have access to all records, reports, audits, 
     reviews, documents, papers, recommendations, or other 
     material available that relate to programs and operations 
     with respect to which an appeal has been taken;
       (2) shall have the authorities that are provided under 
     section 2302(a)(2);
       (3) may request such information or assistance as may be 
     necessary for carrying out the duties and responsibilities 
     established under this subtitle from any Federal, State, or 
     local governmental agency or unit of the agency;
       (4) may, or shall at the request of an appellant with good 
     cause shown, require the attendance of witnesses and the 
     production of all information, documents, reports, answers, 
     records, accounts, papers, and other data and documentary 
     evidence necessary to the proper resolution of appeals;
       (5) may require the attendance of witnesses, and the 
     production of evidence, by subpoena; and
       (6) may administer oaths or affirmations.
       (b) Time for Hearing.--
       (1) In general.--Except as provided in paragraph (2), an 
     appellant shall have the right to--
       (A) request a hearing, not later than 30 days after the 
     date an adverse decision is made; and
       (B) have a hearing by the Division on the adverse decision, 
     not later than 45 days after receipt of the request for the 
     hearing.
       (2) Reduction or extension.--The Director may establish an 
     earlier deadline for a hearing (or request for a hearing) on 
     an appeal relating to a time sensitive decision, or delay a 
     hearing (or request for a hearing), at the request of an 
     appellant for good cause shown.
       (c) Location and Elements of Hearing.--
       (1) Location.--A hearing on an adverse decision shall be 
     held in the State of residence of the appellant or at a 
     location that is otherwise convenient to the appellant and 
     the Division.
       (2) Evidentiary hearing.--The evidentiary hearing before a 
     hearing officer shall be in person, unless the appellant 
     agrees to a hearing by telephone or by a review of the case 
     record and hearing record. The hearing officer shall conduct 
     and resolve the hearing (regardless of the hearing format) in 
     a fair and impartial manner and free of undue influence. The 
     hearing officer shall not be bound by previous findings of 
     fact by the agency in making a determination.
       (3) Information at hearing.--The hearing officer shall 
     consider information, including new information, presented at 
     the hearing without regard to whether the evidence was known 
     to the decisionmaker at the time the adverse decision was 
     made. The hearing officer shall leave the record open after 
     the hearing for a reasonable period of time to allow the 
     submission of information by the appellant or the 
     decisionmaker after the hearing to the extent necessary to 
     prevent the appellant or the decisionmaker from being 
     prejudiced by new facts, information, arguments, or evidence 
     presented or raised by the decisionmaker or appellant. At the 
     hearing, the agency may not rely on or assert new grounds for 
     the adverse decision, if the grounds were not described in 
     the agency decision notice.
       (4) Burden of proof.--The appellant shall bear the burden 
     of proving that the adverse decision of the agency was 
     erroneous.
       (5) Production of record.--An official verbatim record 
     shall be provided by the Division for each hearing before a 
     hearing officer. The appellant or agency representative may 
     record an unofficial record of the hearing.
       (6) Standard of review.--In any case pending before a 
     hearing officer, the hearing officer may determine that the 
     adverse decision was in error only if substantial evidence 
     demonstrates that the adverse decision was not correct. For 
     purposes of this paragraph, the evidentiary threshold for 
     substantial evidence is lower than the evidentiary threshold 
     for preponderance of the evidence.
       (7) Determination notice.--The hearing officer shall issue 
     a notice of the determination on the appeal not later than 30 
     days after a hearing or after receipt of the request of the 
     appellant to waive a hearing, except that the Director may 
     establish an earlier or later deadline pursuant to subsection 
     (b)(2). The hearing officer may include recommendations in 
     the determination notice. If the determination is not 
     appealed to the Director under subsection (d), the notice 
     provided by the hearing officer shall be considered to be a 
     notice of final determination.
       (d) Review by Director.--
       (1) Referral.--At the request of the appellant or the head 
     of the agency affected by a determination of a hearing 
     officer, the determination of the hearing officer shall be 
     referred to the Director for review.
       (2) Appeal by head of agency to director.--
       (A) Review of determination of hearing officer at the 
     request of an agency head.--In exceptional circumstances, if 
     the head of an agency believes that the determination of a 
     hearing officer is contrary to a statute or regulation, or a 
     finding of fact of a hearing officer is clearly erroneous, 
     only the head of the agency may make a written request, not 
     later than 10 business days after receipt of the 
     determination, that the Director review the determination.
       (B) Requests for review.--A request for review shall--
       (i) include a full description of--

       (I) the exceptional circumstances justifying the request 
     for review; and
       (II) the reasons that the head of the relevant agency 
     believes that the determination is contrary to statute or 
     regulation, or the finding of fact of the hearing officer is 
     clearly erroneous; and

       (ii) be provided to the appellant and the hearing officer 
     at the same time the request is provided to the Director.
       (C) Determination of director.--Not later than 10 business 
     days after receipt of the request for review, the Director 
     shall--
       (i) conduct a review of the determination based on the case 
     record and hearing record, the request for review under 
     subsection (b), and any additional arguments or information 
     submitted by the appellant or the hearing officer; and
       (ii)(I) issue a final determination notice that upholds, 
     reverses, or modifies the determination of the hearing 
     officer; or
       (II) if the Director determines that the hearing record is 
     inadequate, remand the determination for further proceedings 
     to complete the hearing record, or, at the option of the 
     Director, to hold a new hearing, and notify the appellant, 
     agency, and hearing officer of the remand.
       (D) New hearing.--If the Director remands a determination 
     for a new hearing on the adverse decision under subparagraph 
     (C), the hearing officer shall make a new determination with 
     respect to the adverse decision based on the case record and 
     the hearing record.
       (E) Finality.--The head of the relevant agency may not 
     request a second review as to the determination of the 
     hearing officer or the Director on the same issue.
       (3) Appeal by head of agency or appellant to director.--
       (A) Use of record.--If the determination of a hearing 
     officer is appealed under paragraph (1), the hearing officer 
     shall certify the hearing record and provide the record to 
     the Director.
       (B) New information.--The Director may consider, under 
     extraordinary circumstances, new information in reviewing a 
     determination under this section. The appellant, 
     decisionmaker, and hearing officer shall receive and have the 
     opportunity to comment on the new information.
       (C) Actions.--Not later than 30 days after the referral to 
     the Director, the Director shall--
       (i) review the hearing record and the determination;
       (ii) uphold the determination, issue a new determination, 
     require that a new hearing be held on 1 or more of the issues 
     considered at the original hearing, or take any combination 
     of the actions described in this clause; and
       (iii) issue a notice of--

       (I) a new evidentiary hearing;
       (II) a final determination; or
       (III) a remand on certain issues and a final determination 
     on remaining issues.

       (D) Recommendations.--The Director may include 
     recommendations in a final determination notice.
       (E) Relief.--The Director shall have the same authority as 
     the Secretary to grant equitable relief. Notwithstanding the 
     administrative finality of a final determination, the 
     Secretary shall have the authority to grant equitable or 
     other types of relief to the appellant after a final 
     determination is issued by the Division.
       (e) Basis for Determination.--The determination of the 
     hearing officer and the Director shall be based on 
     information from the hearing record, laws applicable to the 
     matter at issue, and applicable regulations published in the 
     Federal Register and in effect on the date of the adverse 
     decision or the date on which the acts that gave rise to the 
     adverse decision occurred, whichever date is appropriate. The 
     Director shall not reverse the determination of a hearing 
     officer with regard to a finding of fact that is based on 
     oral testimony or inspection of evidence unless the finding 
     of fact is clearly erroneous or the Director is considering 
     new information under subsection (d)(3) with respect to the 
     finding of fact.
       (f) Effective Date.--The final determination shall be 
     effective as of the date of filing of an application, the 
     date of the transaction or event in question, or the date of 
     the original adverse decision, whichever is applicable.

     SEC. 2309. JUDICIAL REVIEW.

       A final determination of the Division under section 2308 
     shall be reviewable and enforceable by any United States 
     district court of competent jurisdiction in accordance with 
     chapter 7 of title 5, United States Code. Notwithstanding 
     section 701(a)(2) of such title, a discretionary decision of 
     the Secretary or the Division shall be reviewable under 
     section 706(2)(A) of such title unless the decision is 
     generally applicable to all program participants and, as a 
     matter of general applicability, is committed to agency 
     discretion by law within the meaning of section 701(a)(2) of 
     such title.

     SEC. 2310. IMPLEMENTATION OF FINAL DETERMINATIONS OF 
                   DIVISION.

       (a) In General.--On the return of a case to an agency 
     pursuant to the final determination of a hearing officer or 
     the Director under section 2308, the agency shall implement 
     the final determination of the Division not later than 30 
     days after the effective date of the notice of the final 
     determination.
       (b) Additional and Updated Information.--
       (1) In general.--Except as provided in paragraph (2), after 
     notice of a final determination is received by the agency--
       (A) the agency may not require that additional and updated 
     information be provided by the appellant or considered by the 
     decisionmaker in implementing the final determination of the 
     hearing officer or the Director; and
       (B) additional and updated information from any other 
     source may not be used in implementing the final 
     determination.
       (2) Exceptions.--
       (A) Introduction by appellant.--If additional information 
     is introduced by the appellant during the appeal process and 
     accepted by the hearing officer or the Director, the agency 
     shall consider the additional information in implementing the 
     final determination.
       (B) Determination letter.--If the final determination 
     notice specifically states that additional and updated 
     information will be considered in implementing the final 
     determination, the agency shall consider any additional and 
     updated information in implementing the final determination.
       (C) Subsequent adverse decision.--Additional and updated 
     information considered under this paragraph may not be used 
     as a ground for a subsequent adverse decision.
       (c) Implementation Responsibilities.--
       (1) State director.--Each State director shall be--
       (A) required to implement final determinations of a hearing 
     officer or the Director that affect appellants in the State; 
     and
       (B) responsible for monitoring and ensuring the 
     implementation of final determinations that reverse and 
     modify adverse decisions.
       (2) Agency heads.--Relevant agency heads shall be 
     responsible for--
       (A) the performance of State directors under paragraph (1); 
     and
       (B) the implementation of all final determinations of the 
     Division that reverse or modify adverse decisions of the 
     agency.
       (d) Protection of Appellants' Rights.--
       (1) In general.--No officer or employee of the Federal 
     Government shall make or engage in threats or intimidation, 
     or solicit action, to prevent any potential appellant from 
     exercising a right of the appellant under this subtitle or 
     make, solicit, or engage in retaliation or retribution for 
     the exercise of a right of an appellant under this subtitle.
       (2) Corrective action.--If an officer or employee of the 
     Federal Government violates paragraph (1), the Secretary 
     shall take corrective action (including the imposition of 
     sanctions, when necessary) in conformance with civil service 
     laws.
       (e) Implementation Problems.--
       (1) Actions by relevant agency head.--The relevant agency 
     head shall promptly correct any problems that may arise in 
     the implementation of a final determination.
       (2) Oversight.--The Secretary shall assign employees within 
     the Office of the Inspector General whom appellants may 
     contact concerning problems with the implementation of final 
     determinations of the Division. The employees shall 
     investigate and, to the extent practicable, resolve the 
     implementation problems.
       (3) Identity and activities of oversight agency.--The 
     Secretary shall notify the Director of the business address 
     and telephone number of employees assigned under paragraph 
     (2). The Director shall include this information in the final 
     determination notice of the Division to an appellant.

     SEC. 2311. DECISIONS OF STATE AND COUNTY COMMITTEES.

       (a) Finality.--Each decision of a State or county committee 
     (or an employee of the committee) that administers functions 
     of CCC, or functions assigned to ASCS on the date of 
     enactment of this Act, made in good faith in the absence of 
     misrepresentation, false statement, fraud, or willful 
     misconduct shall be final not later than 90 days after the 
     date of filing of the application for benefits, unless the 
     decision is--
       (1) appealed under this subtitle; or
       (2) modified by the Administrator of ASCS or the Executive 
     Vice President of CCC.
       (b) Recovery of Amounts.--No action shall be taken by the 
     CCC, ASCS, or a State or county committee to recover amounts 
     found to have been disbursed as a result of a decision in 
     error if the decision of the State or county committee has 
     become final under subsection (a), unless the participant had 
     reason to believe that the decision was erroneous.

     SEC. 2312. PROHIBITION ON ADVERSE ACTION WHILE APPEAL IS 
                   PENDING.

       (a) In General.--The Secretary may not take any adverse 
     action against an appellant relating to an appeal while any 
     proceeding authorized or required under this subtitle is 
     pending, including any action that would prevent the 
     implementation of a decision that is favorable to the 
     appellant.
       (b) Withholding.--This section shall not preclude the 
     Secretary from withholding a payment if the eligibility for, 
     or amount of, the payment is an issue on appeal, except that 
     ongoing assistance to then current borrowers and grantees 
     shall not be discontinued pending the outcome of an appeal.

     SEC. 2313. RELATIONSHIP TO OTHER LAWS.

       (a) Other Rights.--This subtitle is not intended to 
     supersede or deprive a recipient of assistance from an agency 
     of any rights that the recipient may have under any other 
     law, including section 510(g) of the Housing Act of 1949 (42 
     U.S.C. 1480(g)).
       (b) Equitable Relief.--This subtitle is not intended to 
     affect the authority of an agency head to grant equitable 
     relief.
       (c) Employee Rights.--This subtitle shall neither supersede 
     nor interfere with rights granted to employees or their 
     exclusive representatives by applicable civil service laws.

     SEC. 2314. EVALUATION OF AGENCY DECISIONMAKERS AND OTHER 
                   EMPLOYEES.

       (a) Evaluation in Annual Review.--The Secretary shall 
     promulgate regulations to require the evaluation described in 
     subsection (b) as part of the annual review of the 
     performance of decisionmakers, State directors, and agency 
     heads.
       (b) Performance.--In the review, a decisionmaker, a State 
     director, or an agency head shall be considered to have 
     performed poorly if the decisionmaker, State director, or 
     agency head--
       (1) takes action that leads to numerous appeals that result 
     in adverse decisions that are reversed or modified;
       (2) fails to properly implement final determinations of the 
     Division;
       (3) fails to satisfactorily perform the reviewing and 
     monitoring responsibilities required under subsection (c) or 
     (e)(1) of section 2310, whichever applies; or
       (4) threatens or intimidates, or engages in retaliation or 
     retribution against, an appellant in violation of section 
     2310(d).
       (c) Sanctions.--If a decisionmaker, State director, or 
     relevant agency head has performed poorly (as determined 
     under subsection (b)), the Secretary shall issue sanctions 
     against the decisionmaker, State director, or relevant agency 
     head, as the case may be, which may include a formal 
     reprimand or dismissal consistent with civil service laws.

     SEC. 2315. CONFORMING AMENDMENTS.

       (a) ASCS.--
       (1) Finality of farmers payments and loans.--Section 385 of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1385) is 
     amended--
       (A) by striking the first sentence and inserting the 
     following new sentence: ``As used in this section, the term 
     `payment' means any payment under the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590a et seq.), any payment 
     under the wheat, feed grain, upland cotton, extra long staple 
     cotton, and rice programs authorized by the Agricultural Act 
     of 1949 (7 U.S.C. 1421 et seq.) and this title, or any loan 
     or price support operation, or the amount of the payment, 
     loan, or price support.''; and
       (B) in the second sentence, by striking ``any such 
     payment'' and inserting ``a payment''.
       (2) Determinations by secretary; appeals.--Sections 412 and 
     426 of the Agricultural Act of 1949 (7 U.S.C. 1429 and 1433e) 
     are repealed.
       (b) FmHA.--Section 333B of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1983b) is repealed.
       (c) FCIC.--The last sentence of section 508(f) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(f)) is amended by 
     inserting before the period at the end the following: ``or 
     within 1 year after the claimant receives a final 
     determination notice from an administrative appeal made in 
     accordance with title II of the Department of Agriculture 
     Reorganization Act of 1994, whichever is later''.
           Subtitle D--Farm and International Trade Services

     SEC. 2401. UNDER SECRETARY FOR FARM AND INTERNATIONAL TRADE 
                   SERVICES.

       (a) Establishment.--There is established in the Department 
     the position of Under Secretary of Agriculture for Farm and 
     International Trade Services (referred to in this section as 
     the ``Under Secretary''), to be appointed by the President, 
     by and with the advice and consent of the Senate.
       (b) Duties.--The Under Secretary shall exercise such 
     functions and perform such duties related to farm and 
     international trade services, and shall perform such other 
     duties, as may be required by law or prescribed by the 
     Secretary.
       (c) Continuity of the Position.--Any official serving as 
     Under Secretary for International Affairs and Commodity 
     Programs on the date of enactment of this Act, who has been 
     appointed by the President and confirmed by the Senate, shall 
     be considered on and after the date of enactment of this Act 
     to be serving in the successor position established by 
     subsection (a), and shall not be required to be reconfirmed 
     by reason of the enactment of this title.
       (d) Conforming Amendments.--
       (1) Section 5314 of title 5, United States Code, is amended 
     by striking ``Under Secretary of Agriculture for 
     International Affairs and Commodity Programs.'' and inserting 
     ``Under Secretary of Agriculture for Farm and International 
     Trade Services.''.
       (2) Section 501 of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5691) is repealed.

     SEC. 2402. FARM SERVICE AGENCY.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain a Farm Service Agency (referred to in 
     this section as the ``Agency'') and assign to the Agency such 
     functions as the Secretary may consider appropriate.
       (b) Head.--
       (1) Agency.--If the Secretary establishes the Agency, the 
     Agency or any successor administrative unit shall be headed 
     by an Administrator who shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       (2) FCIC.--The Secretary may appoint the Administrator of 
     the Agency, or any other person, to serve as head of the 
     Federal Crop Insurance Corporation.
       (c) Functions.--Except as provided in subsection (d), the 
     Secretary is authorized to carry out through the Agency--
       (1) price and income support, production adjustment, and 
     other related functions;
       (2) functions of the Federal Crop Insurance Corporation;
       (3) notwithstanding section 331 of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1981), agricultural 
     credit functions assigned prior to the date of enactment of 
     this Act to the Farmers Home Administration, including farm 
     ownership, operating, emergency, and disaster loan functions, 
     and other lending programs for producers of agricultural 
     commodities; and
       (4) any other function or administrative unit that the 
     Secretary considers appropriate.
       (d) Functions Not Assignable to the Agency.--Except as 
     otherwise determined by the Secretary, functions relating to 
     conservation programs authorized to be assigned to the 
     Natural Resources Conservation Service established under 
     section 2701 may not be assigned to the Agency.
       (e) Use of Employees.--Notwithstanding any other provision 
     of law, in carrying out in any county or area any functions 
     assigned to the Agency or any successor administrative area, 
     the Secretary is authorized to--
       (1) use interchangeably, in the implementation of 
     functions, Federal employees, and employees of county and 
     State committees established under section 8(b) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)); 
     and
       (2) provide interchangeably for supervision by the 
     employees of the performance of functions assigned to the 
     Agency.
       (f) Collocation.--The Secretary, to the maximum extent 
     practicable, shall collocate county offices of the Agency 
     with county offices of the Natural Resources Conservation 
     Service in order to--
       (1) maximize savings from shared equipment, office space, 
     and administrative support;
       (2) simplify paperwork and regulatory requirements;
       (3) provide improved services to producers and landowners 
     affected by programs administered by the Agency and the 
     Service; and
       (4) achieve computer compatibility between the Agency and 
     the Service to maximize efficiency and savings.
       (g) Continuity of the Position.--Any official serving on 
     the date of enactment of this Act, who has been appointed by 
     the President and confirmed by the Senate, shall not be 
     required to be reconfirmed by reason of the enactment of this 
     title.
       (h) Conforming Amendments.--
       (1) The second sentence of section 505(a) of the Federal 
     Crop Insurance Act (7 U.S.C. 1505(a)) is amended by striking 
     ``the Under Secretary or Assistant Secretary of Agriculture 
     responsible for the farm credit programs of the Department of 
     Agriculture,'' and inserting ``one additional Under or 
     Assistant Secretary of Agriculture, as designated by the 
     Secretary,''.
       (2) Section 507(d) of the Federal Crop Insurance Act (7 
     U.S.C. 1507(d)) is amended by striking ``section 516 of this 
     Act,'' and all that follows through the period at the end of 
     the subsection and inserting ``section 516.''.
       (3) Section 331(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1981(a)) is amended by striking 
     ``assets to the Farmers Home Administration'' and all that 
     follows through the period at the end of the subsection and 
     inserting ``assets to such officers or administrative units 
     of the Department of Agriculture as the Secretary may 
     consider appropriate.''.

     SEC. 2403. STATE AND COUNTY COMMITTEES.

       Section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) is amended--
       (1) by designating the first through eighth undesignated 
     paragraphs as paragraphs (1) through (8), respectively; and
       (2) in paragraph (5) (as so designated) by adding at the 
     end the following new sentence: ``The Secretary is 
     authorized, after consultation with the State committee of 
     the State in which the affected counties are located, to 
     terminate, combine, and consolidate two or more county 
     committees established under this subsection.''.

     SEC. 2404. INTERNATIONAL TRADE SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain an International Trade Service 
     (referred to in this section as the ``Service'') and to 
     assign to the Service such functions or administrative units 
     as the Secretary may consider appropriate and consistent with 
     this title.
       (b) Head.--If the Secretary establishes the Service, the 
     Service or any successor administrative unit shall be headed 
     by an Administrator who shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       (c) Functions.--The Secretary is authorized to carry out, 
     through the Service or through such other officers or 
     administrative units as the Secretary may consider 
     appropriate, programs and activities involving--
       (1) the acquisition of information pertaining to 
     agricultural trade;
       (2) market promotion and development;
       (3) promotion of exports of United States agricultural 
     commodities;
       (4) administration of international food assistance; and
       (5) international development, technical assistance, and 
     training.
       (d) Continuity of the Position.--Any official serving on 
     the date of enactment of this Act, who has been appointed by 
     the President and confirmed by the Senate, shall not be 
     required to be reconfirmed by reason of the enactment of this 
     title.
       (e) Conforming Amendments.--Sections 502 and 503 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5692 and 5693) are 
     repealed.
          Subtitle E--Rural Economic and Community Development

     SEC. 2501. UNDER SECRETARY FOR RURAL ECONOMIC AND COMMUNITY 
                   DEVELOPMENT.

       (a) Establishment.--Subsection (a) of section 3 of the 
     Rural Development Policy Act of 1980 (7 U.S.C. 2211b) is 
     amended to read as follows:
       ``(a)(1) There is established in the Department of 
     Agriculture the position of Under Secretary of Agriculture 
     for Rural Economic and Community Development to be appointed 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(2) The Under Secretary of Agriculture for Rural Economic 
     and Community Development shall exercise such functions and 
     perform such duties related to rural economic and community 
     development, and shall perform such other duties, as may be 
     required by law or prescribed by the Secretary of 
     Agriculture.''.
       (b) Continuity of Position.--Any official serving as Under 
     Secretary of Agriculture for Small Community and Rural 
     Development on the date of enactment of this Act, after 
     appointment by the President, by and with the advice and 
     consent of the Senate, shall be considered after the date of 
     enactment of this Act to be serving in the successor position 
     established by the amendment made by subsection (a), and 
     shall not be required to be reconfirmed by reason of the 
     enactment of this title.
       (c) Conforming Amendment.--Section 5314 of title 5, United 
     States Code, is amended by striking ``Under Secretary of 
     Agriculture for Small Community and Rural Development.'' and 
     inserting ``Under Secretary of Agriculture for Rural Economic 
     and Community Development.''.

     SEC. 2502. RURAL UTILITIES SERVICE.

       (a) Establishment.--Notwithstanding section 364 of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) 
     and any other provision of law, the Secretary is authorized 
     to establish and maintain within the Department the Rural 
     Utilities Service (referred to in this section as the 
     ``Service'') and to assign to the Service such functions and 
     administrative units as the Secretary may consider 
     appropriate.
       (b) Head.--If the Secretary establishes the Service, the 
     Service or any successor administrative unit shall be headed 
     by an Administrator who shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       (c) Functions.--The Secretary may carry out through the 
     Service, or through any other officer or administrative unit 
     as the Secretary may consider appropriate--
       (1) electric and telephone loan programs and water and 
     waste facility activities authorized by law, including--
       (A) the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.); and
       (B) section 2322 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 1926-1); and
       (2) water and waste facility programs and activities 
     authorized by law, including--
       (A) sections 306, 306A, 306B, and 306C, the provisions of 
     sections 309 and 309A relating to assets, terms, and 
     conditions of water and sewer programs, section 310B(b)(2), 
     and the amendment made by section 342 of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1926, 1926a, 1926b, 
     1926c, 1929, 1929a, 1932(b)(2), and 1013a); and
       (B) section 2324 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 1926 note).
       (d) Continuity of the Position.--Any official serving on 
     the date of enactment of this Act, who has been appointed by 
     the President and confirmed by the Senate, shall not be 
     required to be reconfirmed by reason of the enactment of this 
     title.
       (e) Conforming Amendments to the Rural Electrification 
     Act.--
       (1) The first section of the Rural Electrification Act of 
     1936 (7 U.S.C. 901) is amended by striking ``there is'' and 
     all that follows through ``This Act'' and inserting ``this 
     Act''.
       (2) Section 2 of such Act (7 U.S.C. 902) is amended by 
     striking ``Administrator'' and inserting ``Secretary of 
     Agriculture''.
       (3) Section 3(a) of such Act (7 U.S.C 903(a)) is amended--
       (A) by striking ``Administrator, upon the request and 
     approval of the Secretary of Agriculture,'' and inserting 
     ``Secretary,''; and
       (B) by striking ``Administrator appointed pursuant to the 
     provisions of this Act or from the Administrator of the Rural 
     Electrification Administration established by Executive Order 
     Numbered 7037'' and inserting ``Secretary''.
       (4) Section 8 of such Act (7 U.S.C. 908) is amended--
       (A) in the first sentence, by striking ``Administrator 
     authorized to be appointed by this Act'' and inserting 
     ``Secretary''; and
       (B) in the second sentence, by striking ``Rural 
     Electrification Administration created by this Act'' and 
     inserting ``Secretary''.
       (5) Section 11A of such Act (7 U.S.C. 911a) is repealed.
       (6) Section 13 of such Act (7 U.S.C. 913) is amended by 
     inserting before the period the following: ``; and the term 
     `Secretary' means the Secretary of Agriculture''.
       (7) Sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) of 
     such Act (7 U.S.C. 927(b)(2), 936a(b), 940a, and 
     945(b)(1)(A)) are amended by striking ``Rural Electrification 
     Administration'' each place it appears and inserting 
     ``Secretary''.
       (8) Section 403(b) of such Act (7 U.S.C. 943(b)) is amended 
     by striking ``Rural Electrification Administration or of any 
     other agency of the Department of Agriculture,'' and 
     inserting ``Secretary''.
       (9) Section 404 of such Act (7 U.S.C. 944) is amended by 
     striking ``the Administrator of the Rural Electrification 
     Administration'' and inserting ``the Secretary of Agriculture 
     shall designate an official of the Department of Agriculture 
     who''.
       (10) Sections 406(c) and 410(a)(1) of such Act (7 U.S.C. 
     946(c) and 950) are amended by striking ``Administrator of 
     the Rural Electrification Administration'' each place it 
     appears and inserting ``Secretary''.
       (11) Such Act (7 U.S.C. 901 et seq.) is amended by striking 
     ``Administrator'' each place it appears and inserting 
     ``Secretary''.
       (f) Miscellaneous Conforming Amendments.--
       (1) Section 236(a) of the Disaster Relief Act of 1970 (7 
     U.S.C. 912a) is amended by striking ``Rural Electrification 
     Administration'' and inserting ``Secretary pursuant to the 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)''.
       (2) The second undesignated paragraph of section 401 of the 
     Rural Electrification Act of 1938 (52 Stat. 818; 7 U.S.C. 903 
     note) is amended by striking ``Administrator of the Rural 
     Electrification Administration'' and inserting ``Secretary of 
     Agriculture''.
       (3) Section 15 of the Department of Agriculture Organic Act 
     of 1944 (7 U.S.C. 915) is amended by striking ``Rural 
     Electrification Administration'' and inserting ``Secretary''.
       (4)(A) Section 2333 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 950aaa-2) is amended--
       (i) by striking paragraph (1); and
       (ii) by redesignating paragraphs (2) through (11) as 
     paragraphs (1) through (10), respectively.
       (B) Chapter 1 of subtitle D of title XXIII of such Act (7 
     U.S.C. 950aaa et seq.) is amended by striking 
     ``Administrator'' each place it appears and inserting 
     ``Secretary''.

     SEC. 2503. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

       (a) Establishment.--Notwithstanding section 364 of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) 
     and any other provision of law, the Secretary is authorized 
     to establish and maintain within the Department the Rural 
     Housing and Community Development Service (referred to in 
     this section as the ``Service'') and to assign to the Service 
     such functions as the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate--
       (1) programs and activities under title V of the Housing 
     Act of 1949 (42 U.S.C. 1471 et seq.);
       (2) programs and activities authorized under section 
     310B(i) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1932(i)) and related provisions of law; and
       (3) programs and activities that relate to rural community 
     lending programs, including programs authorized by sections 
     365 through 369 of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008 through 2008d).

     SEC. 2504. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT 
                   SERVICE.

       (a) Establishment.--Notwithstanding section 364 of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2006f) 
     and any other provision of law, the Secretary is authorized 
     to establish and maintain within the Department the Rural 
     Business and Cooperative Development Service (referred to in 
     this section as the ``Service''), and to assign to the 
     Service such functions as the Secretary may consider 
     appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate, programs and activities, including--
       (1) section 313 and title V of the Rural Electrification 
     Act of 1936 (7 U.S.C. 940c and 950aa et seq.);
       (2) subtitle G of title XVI of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.);
       (3) sections 306(a)(1) and 310B of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1926(a)(1) and 1932);
       (4) section 1323 of the Food Security Act of 1985 (Public 
     Law 99-198; 7 U.S.C. 1932 note); and
       (5) the Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
     U.S.C. 451 et seq.).
           Subtitle F--Food, Nutrition, and Consumer Services

     SEC. 2601. UNDER SECRETARY OF AGRICULTURE FOR FOOD, 
                   NUTRITION, AND CONSUMER SERVICES.

       (a) Establishment.--There is established in the Department 
     the position of Under Secretary of Agriculture for Food, 
     Nutrition, and Consumer Services to be appointed by the 
     President, by and with the advice and consent of the Senate.
       (b) Duties.--The Under Secretary of Agriculture for Food, 
     Nutrition, and Consumer Services shall exercise such 
     functions and perform such duties related to food, nutrition, 
     and consumer services, and shall perform such other duties, 
     as may be required by law or prescribed by the Secretary.
       (c) Continuity of the Position.--Any official serving as 
     Assistant Secretary of Agriculture for Food and Consumer 
     Services on the date of enactment of this Act, after 
     appointment by the President, by and with the advice and 
     consent of the Senate, shall be considered to be serving in 
     the successor position established by subsection (a), and 
     shall not be required to be reconfirmed by reason of the 
     enactment of this title.
       (d) Conforming Amendment.--Section 5314 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Under Secretary of Agriculture for Food, Nutrition, and 
     Consumer Services.''.

     SEC. 2602. FOOD AND CONSUMER SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Food and 
     Consumer Service (referred to in this section as the 
     ``Service'') and to assign to the Service such functions as 
     the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate, programs and activities, including--
       (1) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       (2) the National School Lunch Act (42 U.S.C. 1751 et seq.); 
     and
       (3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq).

     SEC. 2603. NUTRITION RESEARCH AND EDUCATION SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Nutrition 
     Research and Education Service (referred to in this section 
     as the ``Service'') and to assign to the Service such 
     functions as the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate, programs and activities relating to human 
     nutrition research and education.
             Subtitle G--National Resources and Environment

     SEC. 2701. NATURAL RESOURCES CONSERVATION SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Natural 
     Resources Conservation Service (referred to in this section 
     as the ``Service'') and to assign to the Service such 
     functions as the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit of the Department as the Secretary may 
     consider appropriate, programs and activities, including--
       (1) title X of the Agricultural Act of 1970 (16 U.S.C. 1501 
     et seq.);
       (2) the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590a et seq.);
       (3) the Water Bank Act (16 U.S.C. 1301 et seq.);
       (4) section 4 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103);
       (5) title XII of the Food Security Act of 1985 (16 U.S.C. 
     3801 et seq.);
       (6) title IV of the Agricultural Credit Act of 1978 (16 
     U.S.C. 2201 et seq.);
       (7) section 202(c) of the Colorado River Basin Salinity 
     Control Act (43 U.S.C. 1592(c)); and
       (8) the Farms for the Future Act of 1990 (7 U.S.C. 4201 
     note).
       (c) Use of Employees.--Notwithstanding any other provision 
     of law, in carrying out in any county or area any functions 
     assigned to the Service or any successor administrative unit, 
     the Secretary is authorized to--
       (1) use interchangeably, in the implementation of 
     functions, Federal employees, and employees of county and 
     area committees established under section 8(b) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)); 
     and
       (2) provide interchangeably for supervision by the 
     employees of the performance of functions assigned to the 
     Service.
       (d) Agricultural Conservation Program.--In carrying out the 
     Agricultural Conservation Program, the Secretary shall--
       (1) acting on the recommendations of the Service, with the 
     concurrence of the Farm Service Agency, issue regulations to 
     carry out the program; and
       (2) use a county committee established under section 8(b) 
     of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(b)) to make the final decision on which 
     applicants are eligible to receive cost share assistance 
     under the program based on priorities and guidelines 
     established at the national and State levels by the Service.
       (e) Conforming Amendments.--
       (1) Section 5 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590e) is repealed.
       (2)(A) Section 2(2) of the Soil and Water Resources 
     Conservation Act of 1977 (16 U.S.C. 2001(2)) is amended by 
     striking ``the Soil Conservation Service of''.
       (B) Section 3(2) of such Act (16 U.S.C. 2002(2)) is amended 
     by striking ``through the Soil Conservation Service''.
       (C) The first sentence of section 6(a) of such Act (16 
     U.S.C. 2005(a)) is amended by striking ``Soil Conservation 
     Service'' and inserting ``Secretary''.

     SEC. 2702. REORGANIZATION OF FOREST SERVICE.

       (a) In General.--Reorganization proposals that are 
     developed by the Secretary to carry out the designation by 
     the President of the Forest Service as a Reinvention Lab 
     pursuant to the National Performance Review (September 1993) 
     shall include proposals for--
       (1) reorganizing the Service in a manner that is consistent 
     with the principles of interdisciplinary planning;
       (2) redefining and consolidating the mission and roles of, 
     and research conducted by, employees of the Service in 
     connection with the National Forest System and State and 
     private forestry to facilitate interdisciplinary planning and 
     to eliminate functionalism;
       (3) reforming the budget structure of the Service to 
     support interdisciplinary planning, including reducing the 
     number of budget line items;
       (4) defining new measures of accountability so that 
     Congress may meet the constitutional obligation of Congress 
     to oversee the Service;
       (5) achieving structural and organizational consolidations;
       (6) to the extent practicable, sharing office space, 
     equipment, vehicles, and electronic systems with other 
     administrative units of the Department and other Federal 
     field offices, including proposals for using an on-line 
     system by all administrative units of the Department to 
     maximize administrative efficiency; and
       (7) reorganizing the Service in a manner that will result 
     in a larger percentage of employees of the Service being 
     retained at organizational levels below regional offices, 
     research stations, and the area office of the Service.
       (b) Report.--Not later than March 31, 1995, the Secretary 
     shall submit a report to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate that describes actions 
     taken to carry out subsection (a) and identifies any 
     disparities in regional funding patterns and the rationale 
     behind the disparities.
             Subtitle H--Marketing and Inspection Services

     SEC. 2801. GRAIN INSPECTION, PACKERS AND STOCKYARDS 
                   ADMINISTRATION.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Grain 
     Inspection, Packers and Stockyards Administration (referred 
     to in this section as the ``Administration'') and to assign 
     to the Administration such functions as the Secretary may 
     consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Administration, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate, programs and activities authorized under--
       (1) the United States Grain Standards Act (7 U.S.C. 71 et 
     seq.); and
       (2) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et 
     seq.).
       (c) Conforming Amendments.--
       (1)(A) Section 3 of the United States Grain Standards Act 
     (7 U.S.C. 75) is amended--
       (i) by striking subsections (z) and (aa); and
       (ii) by redesignating subsection (bb) as subsection (z).
       (B) Section 3A of such Act (7 U.S.C. 75a) is repealed.
       (C) Section 5(b) of such Act (7 U.S.C. 77(b)) is amended by 
     striking ``Service employees'' and inserting ``employees of 
     the Secretary''.
       (D) The first sentences of each of sections 7(j)(2) and 
     7A(l)(2) of such Act (7 U.S.C. 79(j)(2) and 79a(l)(2), 
     respectively) are amended by striking ``supervision by 
     Service personnel of its field office personnel'' and 
     inserting ``supervision by the Secretary of the field office 
     personnel of the Secretary''.
       (E) Section 12 of such Act (7 U.S.C. 87a) is amended--
       (i) in the first sentence of subsection (c), by striking 
     ``or Administrator''; and
       (ii) in subsection (d), by striking ``or the 
     Administrator''.
       (F) Such Act (7 U.S.C. 71 et seq.) is amended by striking 
     ``Administrator'' and ``Service'' each place either term 
     appears and inserting ``Secretary''.
       (2) Section 407 of the Packers and Stockyards Act, 1921 (7 
     U.S.C. 228) is amended--
       (A) by striking subsection (b);
       (B) by redesignating subsections (c) through (f) as 
     subsections (b) through (e), respectively; and
       (C) in subsection (e) (as so designated), by striking 
     ``subsection (e)'' and inserting ``subsection (d)''.
             Subtitle I--Research, Economics, and Education

     SEC. 2901. FEDERAL RESEARCH AND INFORMATION SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Federal 
     Research and Information Service (referred to in this section 
     as the ``Service'') and to assign to the Service such 
     functions as the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service, or through any other officer or 
     administrative unit as the Secretary may consider 
     appropriate, programs and activities, including--
       (1) agricultural research; and
       (2) agricultural information and library services.

     SEC. 2902. COOPERATIVE STATE RESEARCH AND EDUCATION SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Cooperative 
     State Research and Education Service (referred to in this 
     section as the ``Service'') and to assign to the Service such 
     functions as the Secretary may consider appropriate.
       (b) Functions.--The Secretary is authorized to carry out 
     through the Service programs and activities, including--
       (1) cooperative research programs; and
       (2) agricultural extension and education programs.

     SEC. 2903. AGRICULTURAL ECONOMICS AND STATISTICS SERVICE.

       (a) Establishment.--The Secretary may establish and 
     maintain within the Department the Agricultural Economics and 
     Statistics Service (referred to in this section as the 
     ``Service'') and to assign to the Service such functions as 
     the Secretary may consider appropriate.
       (b) Functions.--The Secretary may carry out through the 
     Service, or through any other officer or administrative unit 
     as the Secretary may consider appropriate, programs and 
     activities, including--
       (1) economic analysis and research;
       (2) energy-related programs;
       (3) crop and livestock estimates; and
       (4) agricultural statistics.
       (c) State and Local Statistical Offices and Personnel.--The 
     authority provided by subsections (a) and (b) shall not 
     authorize a substantial change in the functions or structures 
     of State and local statistical offices and employees of the 
     offices.

     SEC. 2904. PROGRAM POLICY AND COORDINATION STAFF.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department the Program 
     Policy and Coordination Staff (referred to in this section as 
     the ``Staff'') and to assign to the Staff such functions as 
     the Secretary may consider appropriate.
       (b) Functions.--If the Staff is established and maintained, 
     the Staff shall provide common program policy development for 
     the Federal Research and Information Service, the Cooperative 
     State Research and Education Service, and the Agricultural 
     Economics and Statistics Service.
       (c) Composition.--Not less than 50 percent of the employees 
     of the Staff shall be former employees of the Cooperative 
     State Research Service and the Extension Service, as in 
     existence on the date of enactment of this Act.
       (d) Relationship to Functions Currently Performed by 
     NASS.--The Staff may not--
       (1) interfere with statistic collection and reporting; or
       (2) compromise the independence or integrity of statistic 
     collection and reporting functions of the National 
     Agricultural Statistics Service as in effect on the date of 
     enactment of this Act.
                        Subtitle J--Food Safety

     SEC. 2951. FOOD SAFETY SERVICE.

       (a) Meat Inspection.--The Federal Meat Inspection Act (21 
     U.S.C. 601 et seq.) is amended by adding at the end the 
     following new title:
                     ``TITLE V--FOOD SAFETY SERVICE

     ``SEC. 501. FOOD SAFETY SERVICE.

       ``(a) In General.--The Secretary shall establish and 
     maintain within the United States Department of Agriculture 
     the Food Safety Service (referred to in this section as the 
     `Service') and to assign to the Service such functions as the 
     Secretary may consider appropriate.
       ``(b) Assistant Secretary for Food Safety.--
       ``(1) Appointment.--There shall be in the Service the 
     position of Assistant Secretary for Food Safety (referred to 
     in this section as the `Assistant Secretary'), who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) Continuity of the position.--Any official serving on 
     the date of enactment of this section, who has been appointed 
     by the President and confirmed by the Senate, shall not be 
     required to be reconfirmed by reason of the enactment of this 
     Act.
       ``(3) Relationship to the secretary.--The Assistant 
     Secretary shall report directly to the Secretary.
       ``(4) General powers.--The Secretary is authorized to carry 
     out, through the Service or through such other officers or 
     administrative units as the Secretary may consider 
     appropriate, programs and activities involving food safety 
     under this Act and the Poultry Products Inspection Act (21 
     U.S.C. 451 et seq.), including--
       ``(A) providing overall direction to the Service and 
     establishing and implementing general policies concerning the 
     management and operation of programs and inspection 
     activities of the Service;
       ``(B) coordinating and overseeing the operation of all 
     administrative entities within the Service;
       ``(C) research and inspection relating to meat, meat food 
     products, poultry, and poultry products in carrying out this 
     Act and the Poultry Products Inspection Act;
       ``(D) conducting educational and public information 
     programs relating to the responsibilities of the Service; and
       ``(E) performing such other functions related to food 
     safety as the Secretary may prescribe, except that only 
     programs and activities related to food safety, as determined 
     by the Secretary, shall be administered through the Service.
       ``(c) Technical and Scientific Review Groups.--The 
     Secretary, acting through the Assistant Secretary, may, 
     without regard to the provisions of title 5, United States 
     Code, governing appointment in the competitive service, and 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of title 5, United States Code, relating to 
     classification and General Schedule pay rates--
       ``(1) establish such technical and scientific review groups 
     as are needed to carry out the functions of the Service, 
     including functions under this Act and under the Poultry 
     Products Inspection Act (21 U.S.C. 451 et seq.); and
       ``(2) appoint and pay the members of the groups, except 
     that officers and employees of the United States shall not 
     receive additional compensation for service as a member of a 
     group.''.
       (b) Poultry Products Inspection.--The Poultry Products 
     Inspection Act (21 U.S.C. 451 et seq.) is amended--
       (1) by redesignating section 29 as section 30; and
       (2) by inserting after section 28 the following new 
     section:

     ``SEC. 29. ADMINISTRATION.

       ``The Secretary shall administer this Act through the 
     Assistant Secretary for Food Safety of the Food Safety 
     Service established under section 501 of the Federal Meat 
     Inspection Act.''.
                       Subtitle K--Miscellaneous

     SEC. 2981. ASSISTANT SECRETARIES OF AGRICULTURE.

       (a) Establishment.--There are established in the Department 
     six positions of Assistant Secretary of Agriculture, each to 
     be appointed by the President, by and with the advice and 
     consent of the Senate.
       (b) Functions.--Each Assistant Secretary of Agriculture 
     shall exercise such functions and perform such duties as may 
     be required by law or prescribed by the Secretary, and shall 
     receive compensation at the rate prescribed by law for an 
     Assistant Secretary of Agriculture. The compensation of any 
     person serving as an Administrator shall not be raised by 
     this title.
       (c) Conforming Amendments.--
       (1) Section 2 of the Act of February 9, 1889 (25 Stat. 659, 
     chapter 122; 7 U.S.C. 2212), is repealed.
       (2) Section 604 of the Rural Development Act of 1972 (7 
     U.S.C. 2212a) is amended by striking subsection (a).
       (3) Section 2 of Public Law No. 94-561 (7 U.S.C. 2212b) is 
     repealed.
       (4) Section 1413 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is 
     amended by striking subsection (d).
       (5) Section 8 of the International Carriage of Perishable 
     Foodstuffs Act (7 U.S.C 2212c) is amended by striking 
     subsection (a).
       (d) Continuity of Positions.--Notwithstanding subsections 
     (a) and (b) and the amendments made by subsection (c), any 
     official serving in any of the positions referred to in this 
     section on the date of enactment of this Act, after 
     appointment by the President, by and with the advice and 
     consent of the Senate, shall be considered after the date of 
     enactment of this Act to be serving in the successor 
     positions established by subsection (a) and shall not be 
     required to be reappointed by reason of the enactment of this 
     title.
       (e) Additional Conforming Amendments.--Section 5315 of 
     title 5, United States Code, is amended--
       (1) by striking ``Assistant Secretaries of Agriculture 
     (7)'' and inserting ``Assistant Secretaries of Agriculture 
     (six)''; and
       (2) by adding at the end the following:
       ``Administrator, Farm Service Agency, Department of 
     Agriculture.
       ``Administrator, International Trade Service, Department of 
     Agriculture.
       ``Administrator, Rural Utilities Service, Department of 
     Agriculture.''.

     SEC. 2982. REMOVAL OF OBSOLETE PROVISIONS.

       Section 5316 of title 5, United States Code, is amended--
       (1) by striking ``Administrator, Agricultural Marketing 
     Service, Department of Agriculture.'';
       (2) by striking ``Administrator, Agricultural Research 
     Service, Department of Agriculture.'';
       (3) by striking ``Administrator, Agricultural Stabilization 
     and Conservation Service, Department of Agriculture.'';
       (4) by striking ``Administrator, Farmers Home 
     Administration.'';
       (5) by striking ``Administrator, Foreign Agricultural 
     Service, Department of Agriculture.'';
       (6) by striking ``Administrator, Rural Electrification 
     Administration, Department of Agriculture.'';
       (7) by striking ``Administrator, Soil Conservation Service, 
     Department of Agriculture.'';
       (8) by striking ``Chief Forester of the Forest Service, 
     Department of Agriculture.'';
       (9) by striking ``Director of Science and Education, 
     Department of Agriculture.'';
       (10) by striking ``Administrator, Animal and Plant Health 
     Inspection Service, Department of Agriculture.''; and
       (11) by striking ``Administrator, Federal Grain Inspection 
     Service, Department of Agriculture.''.

     SEC. 2983. ADDITIONAL CONFORMING AMENDMENTS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall prepare and submit to Congress 
     recommended legislation containing additional technical and 
     conforming amendments to Federal law that are necessary as a 
     result of the enactment of this title.

     SEC. 2984. TERMINATION OF AUTHORITY.

       (a) In General.--Subject to subsection (b), the authority 
     delegated to the Secretary by this title to reorganize the 
     Department shall terminate on the date that is 2 years after 
     the date of enactment of this Act.
       (b) Functions.--Subsection (a) shall not affect--
       (1) the authority of the Secretary to continue to carry out 
     a function that the Secretary performs on the date that is 2 
     years after the date of enactment of this Act; or
       (2) the authority delegated to the Secretary under 
     Reorganization Plan No. 2 of 1953 (5 U.S.C. App. 1).

     SEC. 2985. ELIMINATION OF DUPLICATIVE INSPECTION 
                   REQUIREMENTS.

       (a) In General.--The Secretary of Agriculture shall--
       (1) eliminate inspections of pilots and aircraft by the 
     Department of Agriculture;
       (2) develop with the Administrator of the Federal Aviation 
     Administration inspection specifications and procedures by 
     which aircraft and pilots contracted by the United States 
     Department of Agriculture will be inspected. The 
     Administrator will ensure that the inspection specifications 
     and procedures are met; and
       (3) permit the utilization by the Department of Agriculture 
     of inspections and certifications of pilots and aircraft 
     conducted by the Federal Aviation Administration.
       (b) Applicability.--An inspection requirement shall be 
     eliminated pursuant to subsection (a)(1) only if the pilots 
     and aircraft are inspected by the Federal Aviation 
     Administration for compliance with the safety regulations of 
     the Federal Aviation Regulations.

                          ____________________