[Congressional Record Volume 140, Number 142 (Tuesday, October 4, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
   FEDERAL CROP INSURANCE REFORM ACT OF 1994--MESSAGE FROM THE HOUSE

  Mr. FORD. Mr. President, I ask that the Chair lay before the Senate a 
message from the House of Representatives on a bill (H.R. 4217) to 
reform the Federal crop insrance program, and for other purposes.

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Crop Insurance Reform and Department of Agriculture 
     Reorganization Act of 1994''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--FEDERAL CROP INSURANCE REFORM

Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance 
              payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance 
              information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.

           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.

             Subtitle A--General Reorganization Authorities

Sec. 211. Transfer of Department functions to Secretary of Agriculture.
Sec. 212. Authority of Secretary to delegate transferred functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.

           Subtitle B--Farm and Foreign Agricultural Services

Sec. 225. Under Secretary of Agriculture for Farm and Foreign 
              Agricultural Services.
Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.

          Subtitle C--Rural Economic and Community Development

Sec. 231. Under Secretary of Agriculture for Rural Economic and 
              Community Development.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification 
              Administration.

           Subtitle D--Food, Nutrition, and Consumer Services

Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and 
              Consumer Services.

             Subtitle E--Natural Resources and Environment

Sec. 245. Under Secretary of Agriculture for Natural Resources and 
              Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.

             Subtitle F--Research, Education, and Economics

Sec. 251. Under Secretary of Agriculture for Research, Education, and 
              Economics.
Sec. 252. Program staff.

                        Subtitle G--Food Safety

Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level of 
              additives allowed in animal diets.

                 Subtitle H--National Appeals Division

Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals Division.
Sec. 282. Expansion of issues covered by State mediation programs.
Sec. 283. Authorization of appropriations.

          Subtitle I--Miscellaneous Reorganization Provisions

Sec. 291. Successorship provisions relating to bargaining units and 
              exclusive representatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.

                        TITLE III--MISCELLANEOUS

Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United States 
              Department of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially disadvantaged 
              producers.
Sec. 306. Aviation inspections.
                 TITLE I--FEDERAL CROP INSURANCE REFORM

     SEC. 101. 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. 102. DEFINITIONS.

       (a) In General.--Section 502 (7 U.S.C. 1502) is amended--
       (1) by striking the section heading and ``Sec. 502.'' and 
     inserting the following:

     ``SEC. 502. PURPOSE AND DEFINITIONS.

       ``(a) Purpose.--''; and
       (2) by adding at the end the following new subsection:
       ``(b) Definitions.--As used in this title:
       ``(1) Additional coverage.--The term `additional coverage' 
     means a plan of crop insurance coverage providing a level of 
     coverage greater than the level available under catastrophic 
     risk protection.
       ``(2) Approved insurance provider.--The term `approved 
     insurance provider' means a private insurance provider that 
     has been approved by the Corporation to provide insurance 
     coverage to producers participating in the Federal crop 
     insurance program established under this title.
       ``(3) Board.--The term `Board' means the Board of Directors 
     of the Corporation established under section 505(a).
       ``(4) Corporation.--The term `Corporation' means the 
     Federal Crop Insurance Corporation established under section 
     503.
       ``(5) Department.--The term `Department' means the United 
     States Department of Agriculture.
       ``(6) Loss ratio.--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.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(8) Transitional yield.--The term `transitional yield' 
     means the maximum average production per acre or equivalent 
     measure that is assigned to acreage for a crop year by the 
     Corporation in accordance with the regulations of the 
     Corporation whenever the producer fails--
       ``(A) to certify that acceptable documentation of 
     production and acreage for the crop year is in the possession 
     of the producer; or
       ``(B) to present the acceptable documentation on the demand 
     of the Corporation or an insurance company reinsured by the 
     Corporation.''.
       (b) Conforming Amendments.--
       (1) The first sentence of section 503 (7 U.S.C. 1503) is 
     amended by striking ``(herein called the Corporation)''.
       (2) Section 504 (7 U.S.C. 1504) is amended--
       (A) in subsection (a), by striking ``Board of Directors of 
     the Corporation'' and inserting ``Board''; and
       (B) in subsection (d), by striking ``Federal Crop Insurance 
     Corporation'' and inserting ``Corporation''.
       (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) 
     is amended by striking ``(hereinafter called the `Board')''.
       (4) Except in section 502, the Act is amended--
       (A) by striking ``Board of Directors'' each place it 
     appears and inserting ``Board'';
       (B) by striking ``Department of Agriculture'' each place it 
     appears and inserting ``Department''; and
       (C) by striking ``Secretary of Agriculture'' each place it 
     appears and inserting ``Secretary''.

     SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.

       The second sentence of section 505(a) (7 U.S.C. 1505(a)) is 
     amended--
       (1) by striking ``or Assistant Secretary'' the first place 
     it appears; and
       (2) 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 Secretary of Agriculture (as 
     designated by the Secretary of Agriculture)''.

     SEC. 104. 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 1.075.
       ``(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) Regulations.--The Secretary and the Corporation are 
     each authorized to issue such regulations as are necessary to 
     carry out this title.
       ``(q) Program Compliance.--
       ``(1) Timeliness.--The Corporation shall work actively with 
     approved insurance providers to address program compliance 
     and integrity issues as the issues develop.
       ``(2) Notification of compliance problems.--The Corporation 
     shall notify in writing any approved insurance provider with 
     whom the Corporation has an agreement under this title of any 
     error, omission, or failure to follow Corporation regulations 
     or procedures for which the approved insurance provider may 
     be responsible and which may result in a debt owed the 
     Corporation. The notice shall be given within 3 years of the 
     end of the insurance period during which the error, omission, 
     or failure is alleged to have occurred, except that this time 
     limit shall not apply with respect to errors, omissions, or 
     procedural violations that are willful or intentional. The 
     failure to timely provide the notice required under this 
     subsection shall relieve the approved insurance provider from 
     the debt owed the Corporation.
       ``(r) Purchase of American-Made Equipment and Products.--
       ``(1) Sense of congress.--It is the sense of Congress that, 
     to the greatest extent practicable, all equipment and 
     products purchased by the Corporation using funds made 
     available to the Corporation should be American-made.
       ``(2) Notice requirement.--In providing financial 
     assistance to, or entering into any contract with, any entity 
     for the purchase of equipment and products to carry out this 
     title, the Corporation, to the greatest extent practicable, 
     shall provide to the entity a notice describing the statement 
     made in paragraph (1).''.

     SEC. 105. PERSONNEL.

       Section 507 (7 U.S.C. 1507) is amended--
       (1) in subsection (a), by striking ``, and county crop 
     insurance committeemen'';
       (2) in subsection (d), by striking ``of this Act,'' and all 
     that follows through ``agency''; and
       (3) by adding at the end the following new subsection:
       ``(g)(1) The Corporation shall establish a management-level 
     position to be known as the Specialty Crops Coordinator.
       ``(2) The Specialty Crops Coordinator shall have primary 
     responsibility for addressing the needs of specialty crop 
     producers, and for providing information and advice, in 
     connection with the activities of the Corporation to improve 
     and expand the insurance program for specialty crops. In 
     carrying out this paragraph, the Specialty Crops Coordinator 
     shall act as the liaison of the Corporation with 
     representatives of specialty crop producers and assist the 
     Corporation with the knowledge, expertise, and familiarity of 
     the producers with risk management and production issues 
     pertaining to specialty crops.
       ``(3) The Specialty Crops Coordinator shall use information 
     collected from Corporation field office directors in States 
     in which specialty crops have a significant economic effect 
     and from other sources, including the extension service and 
     colleges and universities.''.

     SEC. 106. CROP INSURANCE.

       Section 508 (7 U.S.C. 1508) is amended to read as follows:

     ``SEC. 508. CROP INSURANCE.

       ``(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 must 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 an 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 reseed; or
       ``(C) the failure of the producer to follow good farming 
     practices (as determined by the Secretary).
       ``(4) Expansion to other areas or single producers.--
       ``(A) Area expansion.--The Corporation may offer plans of 
     insurance or reinsurance for production of agricultural 
     commodities in the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau in the same manner as provided in this section for 
     production of agricultural commodities in the United States.
       ``(B) Producer expansion.--In an area in the United States 
     or specified in subparagraph (A) where crop insurance is not 
     available for a particular agricultural commodity, the 
     Corporation may offer to enter into a written agreement with 
     an individual producer operating in the area for insurance 
     coverage under this title if the producer has actuarially 
     sound data relating to the production by the producer of the 
     commodity and the data is acceptable to the Corporation.
       ``(5) Dissemination of crop insurance information.--The 
     Corporation shall make available to producers through local 
     offices of the Department--
       ``(A) current and complete information on all aspects of 
     Federal crop insurance; and
       ``(B) a listing of insurance agents and companies offering 
     to sell crop insurance in the area of the producers.
       ``(6) Addition of new and specialty crops.--
       ``(A) Data collection.--Not later than 180 days after the 
     date of enactment of this paragraph, the Secretary shall 
     issue guidelines for publication in the Federal Register for 
     data collection to assist the Corporation in formulating crop 
     insurance policies for new and specialty crops.
       ``(B) Addition of new crops.--Not later than 1 year after 
     the date of enactment of this paragraph, and annually 
     thereafter, the Corporation shall report to Congress on the 
     progress and expected timetable for expanding crop insurance 
     coverage under this title to new and specialty crops.
       ``(C) Addition of direct sale perishable crops.--Not later 
     than 1 year after the date of enactment of this paragraph, 
     the Corporation shall report to Congress on the feasibility 
     of offering a crop insurance program designed to meet the 
     needs of specialized producers of vegetables and other 
     perishable crops who market through direct marketing 
     channels.
       ``(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, if 
     provided by the Corporation, when the producer is unable, 
     because of drought, flood, or other natural disaster (as 
     determined by the Secretary), to plant other crops for 
     harvest on the acreage for the crop year.
       ``(2) Amount of coverage.--
       ``(A) In general.--Subject to subparagraph (B)--
       ``(i) in the case of each of the 1995 through 1998 crop 
     years, catastrophic risk protection shall offer a producer 
     coverage for a 50 percent loss in yield, 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); and
       ``(ii) in the case of each of the 1999 and subsequent crop 
     years, catastrophic risk protection shall offer a producer 
     coverage for a 50 percent loss in yield, on an individual 
     yield or area yield basis, indemnified at 55 percent of the 
     expected market price, or a comparable coverage (as 
     determined by the Corporation).
       ``(B) Reduction in actual payment.--The amount paid to a 
     producer on a claim under catastrophic risk protection may 
     reflect a reduction that is proportional to the out-of-pocket 
     expenses that are not incurred by the producer as a result of 
     not planting, growing, or harvesting the crop for which the 
     claim is made, as determined by the Corporation.
       ``(3) 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.
       ``(4) Sale of catastrophic risk coverage.--
       ``(A) In general.--Catastrophic risk coverage may be 
     offered by--
       ``(i) approved 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 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.
       ``(5) Administrative fee.--
       ``(A) Fee required.--Producers shall pay an administrative 
     fee for catastrophic risk protection. The administrative fee 
     for each producer shall be $50 per crop per county, but not 
     to exceed $200 per producer per county up to a maximum of 
     $600 per producer for all counties in which a producer has 
     insured crops. The administrative fee shall be paid by the 
     producer at the time the producer applies for catastrophic 
     risk protection.
       ``(B) Use of fees.--
       ``(i) Fees up to $100.--

       ``(I) Fees collected by usda offices.--Not more than $100 
     of the administrative fees paid by a producer for 
     catastrophic risk coverage that are collected by an office of 
     the Department shall be credited to the appropriations 
     account providing funds for the payment of operating and 
     administrative expenses incurred for the delivery of 
     catastrophic risk protection under this section. The fees 
     shall be collected in accordance with appropriation Acts and 
     shall be available until expended without fiscal year 
     limitation for the payment of the expenses.
       ``(II) Fees collected by approved insurance providers.--Not 
     more than $100 of the administrative fees paid by a producer 
     for catastrophic risk coverage that are collected by an 
     approved insurance provider shall be retained by the provider 
     as payment for operating and administrative expenses incurred 
     for the delivery of catastrophic risk protection.

       ``(ii) Fees in excess of $100.--Notwithstanding the 
     authority granted to the Secretary under the Federal Crop 
     Insurance Corporation account provisions of the Agricultural, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1995, all fees collected under 
     this subsection in excess of $100 per producer per county 
     shall be deposited in the crop insurance fund established 
     under section 516(c), to be available for the programs and 
     activities of the Corporation.
       ``(C) Waiver of fee.--The Corporation shall waive the 
     administrative fee for limited resource farmers, as defined 
     by the Corporation.
       ``(6) 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 the coverage for 
     the crop on all insurable land of the producer in the county.
       ``(7) Eligibility for department programs.--
       ``(A) In general.--To be eligible for any price support or 
     production adjustment program, the conservation reserve 
     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.
       ``(8) 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.
       ``(9) Transitional coverage for 1995 crops.--Effective only 
     for a 1995 crop planted or for which insurance attached prior 
     to January 1, 1995, the Corporation shall allow producers of 
     the crops until not later than the end of the 180-day period 
     beginning on the date of enactment of the Federal Crop 
     Insurance Reform Act of 1994 to obtain catastrophic risk 
     protection for the crop. On enactment of such Act, a producer 
     who made timely purchases of a crop insurance policy before 
     the date of enactment of such Act, under the provisions of 
     this title then in effect, shall be eligible for the same 
     benefits to which a producer would be entitled under 
     comparable additional coverage under subsection (c).
       ``(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.
       ``(c) General Coverage Levels.--
       ``(1) Additional coverage generally.--
       ``(A) In general.--The Corporation shall offer to producers 
     of agricultural commodities grown in the United States plans 
     of crop insurance that provide additional coverage.
       ``(B) Purchase.--To be eligible for additional coverage, a 
     producer must apply to an approved insurance provider for 
     purchase of additional coverage if the coverage is available 
     from an approved insurance provider. If additional coverage 
     is unavailable privately, the Corporation may offer 
     additional coverage plans of insurance directly to producers.
       ``(2) Transfer of relevant information.--If a producer has 
     already applied for catastrophic risk protection at the local 
     office of the Department and elects to purchase additional 
     coverage, the relevant information 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). Not later 
     than 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 a 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 classes and malting barley.--The Corporation 
     shall, as the Corporation determines practicable, offer 
     producers different price elections for classes of wheat and 
     malting barley (including contract prices in the case of 
     malting barley), in addition to the standard price election, 
     that reflect different market prices, as determined by the 
     Corporation. The Corporation shall, as the Corporation 
     determines practicable, offer additional coverage for each 
     class determined under this subparagraph and charge a premium 
     for each class that is actuarially sound.
       ``(7) Fire and hail coverage.--For levels of additional 
     coverage equal to 65 percent or more of the recorded or 
     appraised average yield indemnified at 100 percent of the 
     expected market price, or an equivalent coverage, a producer 
     may elect to delete from the additional coverage any coverage 
     against damage caused by fire and hail if the producer 
     obtains an equivalent or greater dollar amount of coverage 
     for damage caused by fire and hail from an approved insurance 
     provider. On written notice of the election to the company 
     issuing the policy providing additional coverage 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. 
     In no event shall the producer be given credit for an amount 
     of premium determined to be greater than the actuarial value 
     of the protection against losses caused by fire and hail that 
     is included in the additional coverage for the crop.
       ``(8) State premium subsidies.--The Corporation may enter 
     into an agreement 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 producers in the State.
       ``(9) Limitations on additional coverage.--The Board may 
     limit the availability of additional coverage under this 
     subsection in any county or area, or on any farm, on the 
     basis of the insurance risk involved. The Board shall not 
     offer additional coverage equal to less than 50 percent of 
     the recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage.
       ``(10) Administrative fee.--
       ``(A) Fee required.--Except as otherwise provided in this 
     paragraph, if a producer elects to purchase additional 
     coverage for a crop at a level that is less than 65 percent 
     of the recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage, the producer shall pay an administrative fee for 
     the additional coverage. Subsection (b)(5) shall apply in 
     determining the amount and use of the administrative fee or 
     in determining whether to waive the administrative fee.
       ``(B) Exception.--If a producer elects to purchase 
     additional coverage for a crop equal to 65 percent or more of 
     the recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage, the producer shall not be subject to the 
     administrative fee required by this paragraph or subsection 
     (b)(5). If the producer has already paid the administrative 
     fee for a lower level of coverage for the crop, the 
     administrative fee shall be refunded to the producer unless 
     the refund would reduce to less than $200 the total amount of 
     the administrative fees paid by the producer for 2 or more 
     crops in the same county for which a lower level of coverage 
     is obtained.
       ``(C) Additional fee.--If a producer elects to purchase 
     additional coverage for a crop equal to or exceeding 65 
     percent of the recorded or appraised average yield and 100 
     percent of the expected market price or an equivalent 
     coverage, the producer shall pay an administrative fee of $10 
     for the coverage. If a producer has already paid an 
     administrative fee for lesser coverage for the crop, the fee 
     for lesser coverage shall be refunded to the producer unless 
     the producer has paid the maximum fee for lesser coverage and 
     refund of the fee will not reduce the amount to be paid below 
     the maximum amount.
       ``(D) Deposit of fees.--Notwithstanding the authority 
     granted to the Secretary under the Federal Crop Insurance 
     Corporation account provisions of the Agricultural, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1995, administrative fees 
     collected under subparagraph (B) in excess of $100 per 
     producer per county and under subparagraph (C) shall be 
     deposited in the insurance fund established under section 
     516(c) to be available for the programs and activities of the 
     Corporation.
       ``(d) Premiums.--
       ``(1) Premiums required.--The Corporation shall fix 
     adequate premiums for all the plans of insurance of the 
     Corporation at such rates as the Board determines are 
     actuarially sufficient to attain an expected loss ratio of 
     not greater than 1.1 through September 30, 1998, and not 
     greater than 1.075 after October 1, 1998.
       ``(2) Premium amounts.--The premium amounts for 
     catastrophic risk protection under subsection (b) and 
     additional coverage under subsection (c) shall be fixed as 
     follows:
       ``(A) In the case of catastrophic risk protection, the 
     amount of the premium shall be sufficient to cover 
     anticipated losses and a reasonable reserve.
       ``(B) In the case of additional coverage below 65 percent 
     of the recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage, but greater than 50 percent of the recorded or 
     appraised average yield indemnified at 100 percent of the 
     expected market price, or an equivalent coverage, the amount 
     of the premium shall--
       ``(i) be sufficient to cover anticipated losses and a 
     reasonable reserve; and
       ``(ii) include an amount for operating and administrative 
     expenses, as determined by the Corporation.
       ``(C) In the case of additional coverage equal to or 
     greater than 65 percent of the recorded or appraised average 
     yield indemnified at 100 percent of the expected market 
     price, or an equivalent coverage, the amount of the premium 
     shall--
       ``(i) be sufficient to cover anticipated losses and a 
     reasonable reserve; and
       ``(ii) include an amount for operating and administrative 
     expenses, as determined by the Corporation, on an industry-
     wide basis as a percentage of the amount of the premium used 
     to define loss ratio.
       ``(e) Payment of Portion of Premium by Corporation.--
       ``(1) In general.--For the purpose of encouraging the 
     broadest possible participation of producers in the 
     catastrophic risk protection provided under subsection (b) 
     and the additional coverage provided under subsection (c), 
     the Corporation shall pay a part of the premium in the 
     amounts provided in accordance with this subsection.
       ``(2) Amount of payment.--The amount of the premium to be 
     paid by the Corporation shall be as follows:
       ``(A) In the case of catastrophic risk protection, the 
     amount shall be equivalent to the premium established for 
     catastrophic risk protection under subsection (d)(2)(A).
       ``(B) In the case of coverage below 65 percent of the 
     recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage, but greater than 50 percent of the recorded or 
     appraised average yield indemnified at 100 percent of the 
     expected market price, or an equivalent coverage, the amount 
     shall be equivalent to the amount of premium established for 
     catastrophic risk protection coverage and the amount of 
     operating and administrative expenses established under 
     subsection (d)(2)(B).
       ``(C) In the case of coverage equal to or greater than 65 
     percent of the recorded or appraised average yield 
     indemnified at 100 percent of the expected market price, or 
     an equivalent coverage, on an individual or area basis, the 
     amount shall be equivalent to an amount equal to the premium 
     established for 50 percent loss in yield indemnified at 75 
     percent of the expected market price and the amount of 
     operating and administrative expenses established under 
     subsection (d)(2)(C).
       ``(3) Premium reduction.--If an approved insurance provider 
     determines that the provider may provide insurance more 
     efficiently than the expense reimbursement amount established 
     by the Corporation, the approved insurance provider may 
     reduce, subject to the approval of the Corporation, the 
     premium charged the insured by an amount corresponding to the 
     efficiency. The approved insurance provider shall apply to 
     the Corporation for authority to reduce the premium before 
     making such a reduction, and the reduction shall be subject 
     to the rules, limitations, and procedures 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.
       ``(f) 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 and reporting.--To obtain catastrophic risk 
     protection under subsection (b) or additional coverage under 
     subsection (c), a producer shall--
       ``(A) provide, to the extent required by the Corporation, 
     records acceptable to the Corporation of historical acreage 
     and production of the crops for which the insurance is sought 
     or accept a yield determined by the Corporation; and
       ``(B) report acreage planted and prevented from planting by 
     the designated acreage reporting date for the crop and 
     location as established by the Corporation.
       ``(g) Yield Determinations.--
       ``(1) In general.--Subject to paragraph (2), the 
     Corporation shall establish crop insurance underwriting rules 
     that ensure that yield coverage, as specified in this 
     subsection, is provided to eligible producers obtaining 
     catastrophic risk protection under subsection (b) or 
     additional coverage under subsection (c).
       ``(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 (e)(4)), if available, on 
     a commodity-by-commodity basis.
       ``(3) Transitional yields for producers of feed or 
     forage.--
       ``(A) In general.--If a producer does not provide 
     satisfactory evidence of a 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 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 3 years 
     after the effective date of this paragraph.
       ``(h) Submission of Policies and Materials to Board.--
       ``(1) In general.--In addition to any standard forms or 
     policies that the Board may require be made available to 
     producers under subsection (c), a person may prepare for 
     submission or propose to the Board--
       ``(A) other crop insurance policies and provisions of 
     policies; and
       ``(B) rates of premiums for multiple peril crop insurance 
     pertaining to wheat, soybeans, field corn, and any other 
     crops determined by the Secretary.
       ``(2) Submission of policies.--A policy or other material 
     submitted to the Board under this subsection may be prepared 
     without regard to the limitations contained in this title, 
     including the requirements concerning the levels of coverage 
     and rates and the requirement that a price level for each 
     commodity insured must equal the expected market price for 
     the commodity as established by the Board. In the case of 
     such a policy, the payment by the Corporation of a portion of 
     the premium of the policy may not exceed the amount that 
     would otherwise be authorized under subsection (e).
       ``(3) Review and approval by the board.--A policy or other 
     material submitted to the Board under this subsection shall 
     be reviewed by the Board and, if the Board finds that the 
     interests of producers are adequately protected and that any 
     premiums charged to the producers are actuarially 
     appropriate, shall be approved by the Board for reinsurance 
     and for sale to producers as an additional choice at 
     actuarially appropriate rates and under appropriate terms and 
     conditions. The Corporation may enter into more than 1 
     reinsurance agreement with the approved insurance provider 
     simultaneously to facilitate the offering of the new 
     policies.
       ``(4) Guidelines for submission and review.--The 
     Corporation shall issue regulations to establish guidelines 
     for the submission, and Board review, of policies or other 
     material submitted to the Board under this subsection. At a 
     minimum, the guidelines shall ensure the following:
       ``(A) A proposal submitted to the Board under this 
     subsection shall be considered as confidential commercial or 
     financial information for purposes of section 552(b)(4) of 
     title 5, United States Code, until approved by the Board. A 
     proposal disapproved by the Board shall remain confidential 
     commercial or financial information.
       ``(B) The Board shall provide an applicant with the 
     opportunity to present the proposal to the Board in person if 
     the applicant so desires.
       ``(C) The Board shall provide an applicant with 
     notification of intent to disapprove a proposal not later 
     than 30 days prior to making the disapproval. An applicant 
     that receives the notification may modify the application of 
     the applicant. Any modification shall be considered an 
     original application for purposes of this paragraph.
       ``(D) Specific guidelines shall prescribe the timing of 
     submission of proposals under this subsection and timely 
     consideration by the Board so that any approved proposal may 
     be made available to all persons reinsured by the Corporation 
     in a manner permitting the persons to participate, if the 
     persons so desire, in offering such a proposal in the first 
     crop year in which the proposal is approved by the Board for 
     reinsurance, premium subsidy, or other support offered by 
     this title.
       ``(5) 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 all persons contracting with or reinsured by the 
     Corporation under the terms and conditions of the contract 
     between the Corporation and the person originally submitting 
     the policy or other material.
       ``(6) 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 indemnifies 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.
       ``(7) 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.

       ``(8) Pilot program of assigned yields for new producers.--
       ``(A) Program required.--For each of the 1995 and 1996 crop 
     years, the Corporation shall carry out a pilot program to 
     assign to eligible new producers higher assigned yields than 
     would otherwise be assigned to the producers under subsection 
     (g). The Corporation shall include in the pilot program 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 increased assigned yields.
       ``(B) Increased assigned yields.--In the case of an 
     eligible new producer participating in the pilot program, the 
     Corporation shall assign to the new producer a yield that is 
     equal to not less than 110 percent of the transitional yield 
     otherwise established by the Corporation.
       ``(C) Eligible new producer.--The Secretary shall establish 
     a definition of new producer for purposes of determining 
     eligibility to participate in the pilot program.
       ``(i) Adoption of Rates and Coverages.--The Corporation 
     shall adopt, as soon as practicable, rates and coverages that 
     will improve the actuarial soundness of the insurance 
     operations of the Corporation for those crops that are 
     determined to be insured at rates that are not actuarially 
     sound, except that no rate may be increased by an amount of 
     more than 20 percent over the comparable rate of the 
     preceding crop year.
       ``(j) Claims for Losses.--
       ``(1) In general.--Under rules prescribed by the 
     Corporation, the Corporation may provide for adjustment and 
     payment of claims for losses. 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 an approved 
     provider, an action on the claim may be brought against the 
     Corporation or Secretary only 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 final 
     notice of denial of the claim is provided to the claimant.
       ``(3) Indemnification.--The Corporation shall provide 
     approved insurance providers with indemnification, including 
     costs and reasonable attorney fees incurred by the approved 
     insurance provider, due to errors or omissions on the part of 
     the Corporation.
       ``(k) Reinsurance.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, the Corporation shall, to the maximum extent 
     practicable, provide reinsurance to insurers approved by the 
     Corporation that insure producers of any agricultural 
     commodity under 1 or more plans acceptable to the 
     Corporation.
       ``(2) Terms and conditions.--The reinsurance shall be 
     provided on such terms and conditions as the Board may 
     determine to be consistent with subsections (b) and (c) and 
     sound reinsurance principles.
       ``(3) Share of risk.--The reinsurance agreements of the 
     Corporation with the reinsured companies shall require the 
     reinsured companies 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 
     financial condition of the reinsured companies and the 
     availability of private reinsurance.
       ``(4) Rate.--The rate established by the Board to reimburse 
     approved insurance providers and agents for the 
     administrative and operating costs of the providers and 
     agents shall not exceed--
       ``(A) for the 1997 reinsurance year, 29 percent of the 
     premium used to define loss ratio;
       ``(B) for the 1998 reinsurance year, 28 percent of the 
     premium used to define loss ratio; and
       ``(C) for the 1999 reinsurance year, 27.5 percent of the 
     premium used to define loss ratio.
       ``(5) Cost and regulatory reduction.--Consistent with 
     section 118 of the Federal Crop Insurance Reform Act of 1994, 
     and consistent with maintenance of program integrity, 
     prevention of fraud and abuse, the need for program 
     expansion, and improvement of quality of service to 
     customers, the Board shall alter program procedures and 
     administrative requirements in order to reduce the 
     administrative and operating costs of approved insurance 
     providers and agents in an amount that corresponds to any 
     reduction in the reimbursement rate required under paragraph 
     (4) during the 5-year period beginning on the date of 
     enactment of this paragraph.
       ``(6) Agency discretion.--The determination of whether the 
     Corporation is achieving, or has achieved, corresponding 
     administrative cost savings shall not be subject to 
     administrative review, and is wholly committed to agency 
     discretion within the meaning of section 701(a)(2) of title 
     5, United States Code.
       ``(7) Plan.--The Corporation shall submit to Congress a 
     plan outlining the measures that will be used to achieve the 
     reduction required under paragraph (5). If the Corporation 
     can identify additional cost reduction measures, the 
     Corporation shall describe the measures in the plan.
       ``(l) Optional Coverages.--The Corporation may offer 
     specific risk protection programs, including protection 
     against prevented planting, wildlife depredation, tree damage 
     and disease, and insect infestation, under such terms and 
     conditions as the Board may determine, except that no program 
     may be undertaken if insurance for the specific risk involved 
     is generally available from private companies.
       ``(m) Research.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Corporation may conduct research, surveys, pilot programs, 
     and investigations relating to crop insurance and 
     agriculture-related risks and losses including insurance on 
     losses involving reduced forage on rangeland caused by 
     drought and by insect infestation, livestock poisoning and 
     disease, destruction of bees due to the use of pesticides, 
     and other unique special risks related to fruits, nuts, 
     vegetables, aquacultural species, forest industry needs 
     (including appreciation), and other agricultural products as 
     determined by the Board.
       ``(2) Exception.--No action may be undertaken with respect 
     to a risk under paragraph (1) if insurance protection against 
     the risk is generally available from private companies.
       ``(3) Evaluation.--After the completion of any pilot 
     program under this subsection, the Corporation shall evaluate 
     the pilot program and submit to the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, a report 
     of the operations of the pilot program, including the 
     evaluation by the Corporation of the pilot program and the 
     recommendations of the Corporation with respect to 
     implementing the program on a national basis.''.

     SEC. 107. CROP INSURANCE YIELD COVERAGE.

       Section 508A (7 U.S.C. 1508a) is repealed.

     SEC. 108. PREEMPTION.

       Section 511 (7 U.S.C. 1511) is amended by adding at the end 
     the following sentence: ``A contract of insurance of the 
     Corporation, and a contract of insurance reinsured by the 
     Corporation, shall be exempt from taxation imposed by any 
     State, municipality, or local taxing authority.''.

     SEC. 109. ADVISORY COMMITTEE.

       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 an advisory committee to be known as the 
     `Advisory Committee for Federal Crop Insurance'.
       ``(b) 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.
       ``(c) Membership.--The Advisory Committee shall be composed 
     of the Manager of the Corporation, the Secretary (or a 
     designee of the Secretary), and not fewer than 12 members 
     representing organizations and agencies involved in the 
     provision of crop insurance under this title. Not fewer than 
     3 of the members of the Advisory Committee shall be 
     representatives of the specialty crops industry. The 
     organizations or agencies represented by members on the 
     Advisory Committee may include insurance companies, insurance 
     agents, farm producer organizations, experts on agronomic 
     practices, and banking and lending institutions.
       ``(d) Administrative Provisions.--
       ``(1) Terms.--Members of the Advisory Committee (other than 
     the Manager of the Corporation and the Secretary) shall be 
     appointed by the Secretary for a term of up to 2 years from 
     nominations made by the organizations and agencies specified 
     in subsection (c). The terms of the members (other than the 
     Manager of the Corporation and the Secretary) 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.
       ``(e) Reports.--Not later than June 30 of each year, the 
     Advisory Committee shall submit to the Secretary a report 
     specifying the conclusions and recommendations of the 
     Advisory Committee regarding--
       ``(1) the progress toward implementation of this title;
       ``(2) the actuarial soundness of the Federal crop insurance 
     program;
       ``(3) the rate of producer participation in both 
     catastrophic risk protection under section 508(b) and 
     additional coverage under section 508(c); and
       ``(4) the progress toward improved crop insurance coverage 
     for new and specialty crops.
       ``(f) Termination of Authority.--The authority provided by 
     this section shall terminate on September 30, 1998.''.

     SEC. 110. FUNDING.

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

     ``SEC. 516. FUNDING.

       ``(a) Authorization of Appropriations.--
       ``(1) Discretionary expenses.--There are authorized to be 
     appropriated for each of fiscal years 1995 through 2001 such 
     sums as are necessary to cover--
       ``(A) the salaries and expenses of the Corporation; and
       ``(B) the administrative and operating expenses of the 
     Corporation for the sales commissions of agents.
       ``(2) Mandatory expenses.--There are authorized to be 
     appropriated such sums as are necessary to cover--
       ``(A) in the case of each of the 1995 through 1997 
     reinsurance years, the administrative and operating expenses 
     of the Corporation for the sales commissions of agents, 
     consistent with subsection (b)(1);
       ``(B) premium subsidies, including the administrative and 
     operating expenses of an approved insurance provider for the 
     delivery of policies with additional coverage; and
       ``(C) payments for noninsured assistance losses under 
     section 519.
       ``(b) Payment of Expenses.--
       ``(1) Administrative and operating expenses.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in the case of each of the 1995 through 1997 reinsurance 
     years, the Corporation is authorized to pay from the 
     insurance fund established under subsection (c), the 
     administrative and operating expenses of an approved 
     insurance provider, including expenses covered by subsection 
     (a)(1)(B).
       ``(B) Sales commissions for 1997 reinsurance year.--In the 
     case of the 1997 reinsurance year, the amount of the payments 
     from the insurance fund established under subsection (c) for 
     the expenses of the Corporation for the sales commissions of 
     agents may not exceed 8.5 percent of the total amount of 
     premiums paid for additional coverage for the 1997 
     reinsurance year.
       ``(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 by subsection (a)(1)), including all premium 
     subsidies, noninsured assistance benefits, and indemnities;
       ``(B) subject to paragraph (1)(B), in the case of each of 
     the 1995 through 1997 reinsurance years, 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 and amounts made available 
     under subsection (a)(2), to be available without fiscal year 
     limitation.
       ``(2) Commodity credit corporation funds.--If at any time 
     the amounts in the insurance fund are insufficient to enable 
     the Corporation to carry out subsection (b), to the extent 
     the funds of the Commodity Credit Corporation are available--
       ``(A) the Corporation may request the Secretary to use the 
     funds of the Commodity Credit Corporation to carry out 
     subsection (b); and
       ``(B) the Secretary may use the funds of the Commodity 
     Credit Corporation to carry out subsection (b).''.

     SEC. 111. NONINSURED CROP DISASTER ASSISTANCE.

       Section 519 (7 U.S.C. 1519) is amended to read as follows:

     ``SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

       ``(a) Establishment of Program.--
       ``(1) Establishment.--In the case of an eligible crop 
     described in paragraph (2), the Corporation shall establish a 
     noninsured crop disaster assistance program to provide 
     coverage equivalent to the catastrophic risk protection 
     otherwise available under section 508(b).
       ``(2) Eligible crops.--
       ``(A) In general.--As used in this section, the term 
     `eligible crop' means each commercial crop or other 
     agricultural commodity (except livestock)--
       ``(i) for which catastrophic risk protection under section 
     508(b) is not available; and
       ``(ii) that is produced for food or fiber.
       ``(B) Crops specifically included.--The term `eligible 
     crop' shall include floricultural, ornamental nursery, and 
     Christmas tree crops, turfgrass sod, and industrial crops.
       ``(3) Cause of loss.--To qualify for assistance under this 
     section, the losses of the noninsured commodity shall be due 
     to drought, flood, or other natural disaster, as determined 
     by the Secretary.
       ``(b) Application for Noninsured Crop Disaster 
     Assistance.--
       ``(1) Timely application.--To be eligible for assistance 
     under this section, a producer shall submit an application 
     for noninsured crop disaster assistance at a local office of 
     the Department. The application shall be in such form, 
     contain such information, and be submitted at such time as 
     the Corporation may require.
       ``(2) Records.--A producer shall annually provide records, 
     as required by the Corporation, of previous crop acreage, 
     acreage yields, and production, or the producer shall accept 
     a yield under subsection (e)(3) determined by the 
     Corporation.
       ``(3) 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.
       ``(c) Loss Requirements.--
       ``(1) Required area loss.--A producer of an eligible crop 
     shall not receive noninsured crop disaster assistance unless 
     the average yield for that crop, or an equivalent measure in 
     the event yield data are not available, in an area falls 
     below 65 percent of the expected area yield, as established 
     by the Corporation.
       ``(2) Prevented planting.--Subject to paragraph (1), the 
     Corporation shall make a prevented planting noninsured crop 
     disaster assistance payment if the producer is prevented from 
     planting more than 35 percent of the acreage intended for the 
     eligible crop because of drought, flood, or other natural 
     disaster, as determined by the Secretary.
       ``(3) Reduced yields.--Subject to paragraph (1), the 
     Corporation shall make a reduced yield noninsured crop 
     disaster assistance payment to a producer if the total 
     quantity of the eligible crop that the producer is able to 
     harvest on any farm is, because of drought, flood, or other 
     natural disaster as determined by the Secretary, less than 50 
     percent of the expected individual yield for the crop, as 
     determined by the Corporation, factored for the interest of 
     the producer for the crop.
       ``(d) 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)(A) in the case of each of the 1995 through 1998 crop 
     years, 60 percent of the average market price for the crop 
     (or any comparable coverage determined by the Corporation); 
     or
       ``(B) in the case of each of the 1999 and subsequent crop 
     years, 55 percent of the average market price for the crop 
     (or any comparable coverage determined by the 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, 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, is determined by 
     the Corporation.
       ``(e) Yield Determinations.--
       ``(1) Establishment.--The Corporation shall establish farm 
     yields for purposes of providing noninsured crop disaster 
     assistance under this section.
       ``(2) Actual production history.--The Corporation shall 
     determine yield coverage using the actual production history 
     of the producer over a period of not less than the 4 previous 
     consecutive crop years and not more than 10 consecutive crop 
     years. Subject to paragraph (3), the yield for the year in 
     which noninsured crop disaster assistance is sought shall be 
     equal to the average of the actual production history of the 
     producer during the period considered.
       ``(3) Assignment of yield.--If a producer does not submit 
     adequate documentation of production history to determine a 
     crop yield under paragraph (2), the Corporation shall assign 
     to the producer a yield equal to not less than 65 percent of 
     the transitional yield of the producer (adjusted to reflect 
     actual production reflected in the records acceptable to the 
     Corporation for continuous years), as specified in 
     regulations issued by the Corporation based on production 
     history requirements.
       ``(4) Prohibition on assigned yields in certain counties.--
       ``(A) In general.--
       ``(i) Documentation.--If sufficient data are available to 
     demonstrate that the acreage of a crop in a county for the 
     crop year has increased by more than 100 percent over any 
     year in the preceding 7 crop years or, if data are not 
     available, if the acreage of the crop in the county has 
     increased significantly from the previous crop years, a 
     producer must provide such detailed documentation of 
     production costs, acres planted, and yield for the crop year 
     for which benefits are being claimed as is required by the 
     Corporation. If the Corporation determines that the 
     documentation provided is not sufficient, the Corporation may 
     require documenting proof that the crop, had the crop been 
     harvested, could have been marketed at a reasonable price.
       ``(ii) Prohibition.--Except as provided in subparagraph 
     (B), a producer who produces a crop on a farm located in a 
     county described in clause (i) may not obtain an assigned 
     yield.
       ``(B) Exception.--A crop or a producer shall not be subject 
     to this subsection if--
       ``(i) the planted acreage of the producer for the crop has 
     been inspected by a third party acceptable to the Secretary; 
     or
       ``(ii)(I) the County Executive Director and the State 
     Executive Director recommend an exemption from the 
     requirement to the Deputy Administrator for State and County 
     Operations of the Agricultural Stabilization and Conservation 
     Service; and
       ``(II) the Deputy Administrator approves the 
     recommendation.
       ``(5) Limitation on receipt of subsequent assigned yield.--
     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.
       ``(6) Yield variations due to different farming 
     practices.--The Corporation shall ensure that noninsured crop 
     disaster assistance accurately reflects significant yield 
     variations due to different farming practices, such as 
     between irrigated and nonirrigated acreage.
       ``(f) Contract Payments.--A producer 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.
       ``(g) Payment of Losses.--Payments for noninsured crop 
     disaster assistance losses under this section shall be made 
     from the insurance fund established under section 516. The 
     losses shall not be included in calculating the premiums 
     charged to producers for insurance under section 508.''.
       ``(h) Exclusions.--Noninsured crop disaster assistance 
     under this section 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 those areas and under such circumstances where it is 
     customary to reseed; or
       ``(C) the failure of the producer to follow good farming 
     practices, as determined by the Corporation.''.

     SEC. 112. PAYMENT AND INCOME LIMITATIONS.

       Section 519 (7 U.S.C. 1519) (as amended by section 111) is 
     further amended by adding at the end the following new 
     subsection:
       ``(h) 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) Limitation on multiple benefits for same loss.--If a 
     producer who is eligible to receive benefits under 
     catastrophic risk protection under section 508(b) or 
     noninsured crop disaster assistance under this section is 
     also eligible to receive assistance for the same loss under 
     any other program administered by the Secretary, the producer 
     shall be required to elect whether to receive benefits under 
     this title or under the other program, but not both. A 
     producer who purchases additional coverage under section 
     508(c) may also receive assistance for the same loss under 
     other programs administered by the Secretary, except that the 
     amount received for the loss under the additional coverage 
     together with the amount received under the other programs 
     may not exceed the amount of the actual loss of the producer.
       ``(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.''.

     SEC. 113. 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. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
                   ASSISTANCE PAYMENTS.

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

     ``SEC. 521. 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 title to which the person is not entitled, has 
     evaded this title, or has acted with the purposes of evading 
     this title, 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(n).''.

     SEC. 115. ELIMINATION OF GENDER REFERENCES.

       (a) Management of Corporation.--Section 505 (7 U.S.C. 1505) 
     is amended--
       (1) in subsection (a), by striking the third sentence and 
     inserting ``The Board shall be appointed by, and hold office 
     at the pleasure of, the Secretary. The Secretary shall not be 
     a member of the Board.''; and
       (2) in subsection (d)--
       (A) by striking ``upon him''; and
       (B) by striking ``He shall be appointed by,'' and inserting 
     ``The manager shall be appointed by,''.
       (b) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
       (1) in subsection (a), by striking ``as he may determine: 
     Provided, That'' and inserting ``as the Secretary may 
     determine appropriate. However,''; and
       (2) in subsection (d), by striking ``as he may request'' 
     and inserting ``that the Secretary requests''.
       (c) Indemnities Exempt From Levy.--Section 509 (7 U.S.C. 
     1509) is amended by striking ``or his estate'' and inserting 
     ``or the estate of the insured''.

     SEC. 116. 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 conserving 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 conserving 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 conserving 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. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE 
                   INFORMATION.

       Not later than 180 days after the date of enactment of this 
     Act and at the end of each of the 2 1-year periods 
     thereafter, the Federal Crop Insurance Corporation shall 
     submit a report to Congress containing a plan to implement a 
     sound program for producer education regarding the crop 
     insurance program and for the dissemination of crop insurance 
     information to producers, as required by section 508(a)(5) of 
     the Federal Crop Insurance Act (as amended by section 106).

     SEC. 118. CROP INSURANCE PROVIDER EVALUATION.

       (a) In General.--The Comptroller General of the United 
     States and the Federal Crop Insurance Corporation (referred 
     to in this section as the ``Corporation'') shall jointly 
     evaluate the financial arrangement between the Corporation 
     and approved insurance providers to determine the quality, 
     costs, and efficiencies of providing the benefits of multiple 
     peril crop insurance to producers of agricultural commodities 
     covered under the Federal Crop Insurance Act (7 U.S.C. 1501 
     et seq.).
       (b) Collection of Information and Proposals.--The 
     Corporation shall require private insurance providers and 
     agents to supply, and the private insurance providers and 
     agents shall supply, records and information necessary to 
     make the determinations and evaluations required under this 
     section. The Corporation shall solicit from the approved 
     insurance providers and agents proposals for modifying or 
     altering the requirements, regulations, procedures, and 
     processes related to implementing the Federal Crop Insurance 
     Act to reduce the operating and administrative costs of the 
     providers and agents.
       (c) Initial Report.--Not later than 180 days after receipt 
     of information and cost-reduction proposals under subsection 
     (b), the Corporation shall evaluate the information and 
     proposals obtained and report the results of the evaluation 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate.
       (d) Final Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General and the 
     Corporation shall submit a final report that provides the 
     evaluation required under subsection (a) to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate. In 
     making the evaluation, the Comptroller General and the 
     Corporation shall--
       (1) consider the changes made by the Corporation in 
     response to increased program participation resulting from 
     the enactment of this Act;
       (2) include an evaluation and opinion of the accuracy and 
     reasonableness of--
       (A) the average actual costs for approved insurance 
     providers to deliver multiple peril crop insurance;
       (B) the cost per policy of complying with the requirements, 
     regulations, procedures, and processes of the Federal Crop 
     Insurance Act;
       (C) the cost differences for various provider firm sizes 
     and any business delivered by the Federal Government;
       (D) the adequacy of the standard reimbursement for 
     potential new providers; and
       (E) the identification of any new costs related to the 
     enactment of this Act not previously identified in the 
     information reported by the providers;
       (3) compare delivery costs of multiple peril crop insurance 
     to other insurance coverages that the provider may sell and 
     determine the extent if any, to which any funds provided to 
     carry out the Federal Crop Insurance Act are being used to 
     fund any other business enterprise operated by the provider;
       (4)(A) assess alternative methods for reimbursing providers 
     for reasonable and necessary expenses associated with 
     delivery of multiple peril crop insurance;
       (B) recommend changes under this paragraph that reasonably 
     demonstrate the need to achieve the greatest operating 
     efficiencies on the part of the provider and the Corporation 
     has been recognized; and
       (C) identify areas for improved operating efficiencies, if 
     any, in the requirements made by the Corporation for 
     compliance and program integrity;
       (5) assess the potential for alternative forms of 
     reinsurance arrangements for providers of different firm 
     sizes, taking into consideration--
       (A) the need to achieve a reasonable return on the capital 
     of the provider compared to other lines of insurance;
       (B) the relative risk borne by the provider for the 
     different lines of insurance;
       (C) the availability and price of commercial reinsurance; 
     and
       (D) any additional costs that may be incurred by the 
     Federal Government in carrying out the Federal Crop Insurance 
     Act; and
       (6) include an analysis of the effect of the current or 
     proposed reinsurance arrangements on providers having 
     different business levels.
       (e) Information.--
       (1) Privacy.--In conducting the evaluation required by this 
     section, the Comptroller General and the Corporation shall 
     maintain the privacy of proprietary information.
       (2) Subpoenas.--The Comptroller General shall have the 
     power to subpoena information relevant to the evaluation 
     required by this section from any private insurance provider. 
     The Comptroller General shall allow the Corporation access to 
     the information subpoenaed taking into consideration the 
     necessity of preserving the privacy of proprietary 
     information.

     SEC. 119. 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, 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.--Effective January 1, 1995, 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.--Effective January 1, 1995, 
     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) 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''.
       (f) 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(j)''.
       (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) 
     is amended by striking ``508(b)'' and inserting ``508(h)''.
       (3) Section 518 (7 U.S.C. 1518) is amended by striking 
     ``(k)'' and inserting ``(m)''.

     SEC. 120. EFFECTIVE DATE.

       Except as otherwise provided in this title, this title and 
     the amendments made by this title shall become effective on 
     the date of enactment of this Act and shall apply to the 
     provision of crop insurance under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop 
     year. With respect to the 1994 crop year, the Federal Crop 
     Insurance Act (as in effect on the day before the date of 
     enactment of this Act) shall continue to apply.
           TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

     SEC. 201. SHORT TITLE.

       (a) Short Title.--This title may be cited as the 
     ``Department of Agriculture Reorganization Act of 1994''.

     SEC. 202. 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 by 
     the Department.

     SEC. 203. DEFINITIONS.

       Except where the context requires otherwise, for purposes 
     of this title:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) National appeals division.--The term ``National Appeals 
     Division'' means the National Appeals Division of the 
     Department established under section 272.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (4) Function.--The term ``function'' means an 
     administrative, financial, or regulatory activity of an 
     agency, office, officer, or employee of the Department.
             Subtitle A--General Reorganization Authorities

     SEC. 211. TRANSFER OF DEPARTMENT FUNCTIONS TO SECRETARY OF 
                   AGRICULTURE.

       (a) Transfer of Functions.--Except as provided in 
     subsection (b), there are transferred to the Secretary of 
     Agriculture all functions of all agencies, offices, officers, 
     and employees of the Department that are not already vested 
     in the Secretary on the date of the enactment of this Act.
       (b) Exceptions.--Subsection (a) shall not apply to the 
     following functions:
       (1) Functions vested by subchapter II of chapter 5 of title 
     5, United States Code, in administrative law judges employed 
     by the Department.
       (2) Functions vested by the Inspector General Act of 1978 
     (5 U.S.C. App.) in the Inspector General of the Department.
       (3) Functions vested by chapter 9 of title 31, United 
     States Code, in the Chief Financial Officer of the 
     Department.
       (4) Functions vested in the corporations of the Department 
     or the boards of directors and officers of such corporations.
       (5) 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. 212. AUTHORITY OF SECRETARY TO DELEGATE TRANSFERRED 
                   FUNCTIONS.

       (a) Delegation of Authority.--
       (1) Delegation authorized.--Subject to paragraph (2), the 
     Secretary may delegate to any agency, office, officer, or 
     employee of the Department the authority to perform any 
     function transferred to the Secretary under section 211(a) or 
     any other function vested in the Secretary as of the date of 
     the enactment of this Act. The authority provided in the 
     preceding sentence includes the authority to establish, 
     consolidate, alter, or discontinue any agency, office, or 
     other administrative unit of the Department.
       (2) Condition on authority.--The delegation authority 
     provided by paragraph (1) shall be subject to--
       (A) sections 232, 251(d), 273, and 304 and subsections (a) 
     and (b)(1) of section 261;
       (B) sections 502 and 503 of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5692 and 5693); and
       (C) section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)).
       (b) Cost-Benefit Analysis Required for Name Change.--
       (1) Analysis required.--Except as provided in paragraph 
     (2), the Secretary shall conduct a cost-benefit analysis 
     before changing the name of any agency, office, division, or 
     other unit of the Department to ensure that the benefits to 
     be derived from changing the name of the agency, office, 
     division, or other unit outweigh the expense of executing the 
     name change.
       (2) Exception.--Paragraph (1) shall not apply with respect 
     to any name change required or authorized by this title.
       (c) Public Comment on Proposed Reorganization.--To the 
     extent that the implementation of the authority provided to 
     the Secretary by this title to reorganize the Department 
     involves the creation of new agencies or offices within the 
     Department or the delegation of major functions or major 
     groups of functions to any agency or office of the Department 
     (or the officers or employees of such agency or office), the 
     Secretary shall, to the extent considered practicable by the 
     Secretary--
       (1) give appropriate advance public notice of the proposed 
     reorganization action or delegation; and
       (2) afford appropriate opportunity for interested parties 
     to comment on the proposed reorganization action or 
     delegation.
       (d) Interagency Transfer of Records, Property, Personnel, 
     and Funds.--
       (1) Related transfers.--Subject to paragraph (2), as part 
     of the transfer or delegation of a function of the Department 
     made or authorized by this title, the Secretary may transfer 
     within the Department--
       (A) any of the records, property, or personnel affected by 
     the transfer or delegation of the function; and
       (B) unexpended balances (available or to be made available 
     for use in connection with the transferred or delegated 
     function) of appropriations, allocations, or other funds of 
     the Department.
       (2) Applicable law relating to funds transfer.--Section 
     1531 of title 31, United States Code, shall apply to any 
     transfer of funds under paragraph (1).
       (e) Exhaustion of Administrative Appeals.--Notwithstanding 
     any other provision of law, a person shall exhaust all 
     administrative appeal procedures established by the Secretary 
     or required by law before the person may bring an action in a 
     court of competent jurisdiction against--
       (1) the Secretary;
       (2) the Department; or
       (3) an agency, office, officer, or employee of the 
     Department.

     SEC. 213. REDUCTIONS IN NUMBER OF DEPARTMENT PERSONNEL.

       (a) Definitions.--For purposes of this section:
       (1) Headquarters offices.--The term ``headquarters 
     offices'', with respect to agencies, offices, or other 
     administrative units of the Department, means the offices, 
     functions, and employee positions that are located or 
     performed--
       (A) in Washington, District of Columbia; or
       (B) in such other locations as are identified by the 
     Secretary for purposes of this section.
       (2) Field structure.--The term ``field structure'' means 
     the offices, functions, and employee positions of all 
     agencies, offices, or other administrative units of the 
     Department, other than the headquarters offices, except that 
     the term does not include State, county, or area committees 
     established under section 8(b)(5) of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590h(b)(5)). The term 
     includes the physical and geographic locations of such 
     agencies, offices, or other administrative units.
       (b) Number of Reductions Required.--The Secretary shall 
     achieve Federal employee reductions of at least 7,500 staff 
     years within the Department by the end of fiscal year 1999. 
     Reductions in the number of full-time equivalent positions 
     within the Department achieved under section 5 of the Federal 
     Workforce Restructuring Act of 1994 (Public Law 103-226; 108 
     Stat. 115; 5 U.S.C. 3101 note) shall be counted toward the 
     employee reductions required under this section.
       (c) Emphasis on Headquarters Offices Reductions.--In 
     achieving the employee reductions required by subsection (b), 
     the Secretary shall pursue a goal so that the percentage of 
     the total number of employee staff years reduced in 
     headquarters offices is at least twice the percentage of the 
     total number of employee staff years reduced in the field 
     structure.
       (d) Schedule.--The personnel reductions in headquarters 
     offices and in the field structure should be accomplished 
     concurrently in a manner determined by the Secretary.

     SEC. 214. CONSOLIDATION OF HEADQUARTERS OFFICES.

       Subject to the availability of appropriated funds for this 
     purpose, the Secretary shall develop and carry out a plan to 
     consolidate offices located in Washington, District of 
     Columbia, of agencies, offices, and other administrative 
     units of the Department.

     SEC. 215. COMBINATION OF FIELD OFFICES.

       (a) Combination of Offices Required.--Where practicable and 
     to the extent consistent with efficient, effective, and 
     improved service, the Secretary shall combine field offices 
     of agencies within the Department to reduce personnel and 
     duplicative overhead expenses.
       (b) Joint Use of Resources and Offices Required.--When two 
     or more agencies of the Department share a common field 
     office, the Secretary shall require the agencies to jointly 
     use office space, equipment, office supplies, administrative 
     personnel, and clerical personnel associated with that field 
     office.

     SEC. 216. IMPROVEMENT OF INFORMATION SHARING.

       Whenever the Secretary procures or uses computer systems, 
     as may be provided for in advance in appropriations Acts, the 
     Secretary shall do so in a manner that enhances efficiency, 
     productivity, and client services and is consistent with the 
     goal of promoting computer information sharing among agencies 
     of the Department.

     SEC. 217. 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 solely to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (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, if any, 
     the Secretary will prepare and submit in accordance with 
     subsection (b).

     SEC. 218. ASSISTANT SECRETARIES OF AGRICULTURE.

       (a) Authorization.--The Secretary is authorized to 
     establish in the Department the positions of--
       (1) Assistant Secretary of Agriculture for Congressional 
     Relations;
       (2) Assistant Secretary of Agriculture for Administration; 
     and
       (3) Assistant Secretary of Agriculture for Marketing and 
     Regulatory Programs.
       (b) Confirmation Required.--If the Secretary establishes 
     any position of Assistant Secretary authorized under 
     subsection (a), the Assistant Secretary shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       (c) Succession.--Any official who is serving as Assistant 
     Secretary of Agriculture for Administration or Assistant 
     Secretary of Agriculture for Congressional Relations on the 
     date of the enactment of this Act and who was appointed as 
     such Assistant Secretary by the President, by and with the 
     advice and consent of the Senate, shall not be required to be 
     reappointed under subsection (b) to the successor position 
     authorized under subsection (a) if the Secretary establishes 
     the position, and the official occupies the new position, 
     within 180 days after the date of the enactment of this Act 
     (or such later date set by the Secretary if litigation delays 
     rapid succession).
       (d) Executive Schedule.--Section 5315 of title 5, United 
     States Code, is amended by striking ``Assistant Secretaries 
     of Agriculture (7).'' and inserting ``Assistant Secretaries 
     of Agriculture (3).''.
       (e) Repeal of Superseded Provisions Regarding Assistant 
     Secretaries.--The following provisions of law are repealed:
       (1) Section 2 of Reorganization Plan No. 2 of 1953 (5 
     U.S.C. App; 7 U.S.C. 2201 note).
       (2) Section 2 of the Act entitled ``An Act to enlarge the 
     powers and duties of the Department of Agriculture and to 
     create an Executive Department to be known as the Department 
     of Agriculture.'', approved February 9, 1889 (7 U.S.C. 2212).
       (3) The first paragraph designated ``Office of the 
     Secretary:'' under the heading ``DEPARTMENT OF AGRICULTURE'' 
     of the Act entitled ``An Act making appropriations for the 
     Department of Agriculture for the fiscal year ending June 
     thirtieth, nineteen hundred and seven.'', approved June 30, 
     1906 (34 Stat. 670; 7 U.S.C. 2212).
       (4) Section 604(a) of the Rural Development Act of 1972 (7 
     U.S.C. 2212a).
       (5) Section 2 of Public Law 94-561 (7 U.S.C. 2212b).
       (6) Section 8(a) of Public Law 97-325 (7 U.S.C. 2212c).
       (7) Section 1413(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3128(d)).

     SEC. 219. PAY INCREASES PROHIBITED.

       The compensation of any officer or employee of the 
     Department on the date of the enactment of this Act shall not 
     be increased as a result of the enactment of this title.
           Subtitle B--Farm and Foreign Agricultural Services

     SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN 
                   AGRICULTURAL SERVICES.

       (a)Authorization.--The Secretary is authorized to establish 
     in the Department the position of Under Secretary of 
     Agriculture for Farm and Foreign Agricultural Services.
       (b) Confirmation Required.--If the Secretary establishes 
     the position of Under Secretary of Agriculture for Farm and 
     Foreign Agricultural Services authorized under subsection 
     (a), the Under Secretary shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       (c) Functions of Under Secretary.--
       (1) Principal functions.--Upon establishment, the Secretary 
     shall delegate to the Under Secretary of Agriculture for Farm 
     and Foreign Agricultural Services those functions under the 
     jurisdiction of the Department that are related to farm and 
     foreign agricultural services.
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Farm and Foreign Agricultural Services shall 
     perform such other functions as may be required by law or 
     prescribed by the Secretary.
       (d) Succession.--Any official who is serving as Under 
     Secretary of Agriculture for International Affairs and 
     Commodity Programs on the date of the enactment of this Act 
     and who was appointed by the President, by and with the 
     advice and consent of the Senate, shall not be required to be 
     reappointed under subsection (b) to the successor position 
     authorized under subsection (a) if the Secretary establishes 
     the position, and the official occupies the new position, 
     within 180 days after the date of the enactment of this Act 
     (or such later date set by the Secretary if litigation delays 
     rapid succession).
       (e) Conforming Amendments.--
       (1) Existing position.--Section 501 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5691), relating to the Under 
     Secretary of Agriculture for International Affairs and 
     Commodity Programs, is repealed.
       (2) Executive schedule.--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 Foreign Agricultural Services.''.

     SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain in the Department a Consolidated Farm 
     Service Agency.
       (b) Functions of Consolidated Farm Service Agency.--If the 
     Secretary establishes the Consolidated Farm Service Agency 
     under subsection (a), the Secretary is authorized to assign 
     to the Agency jurisdiction over the following functions:
       (1) Agricultural price and income support programs, 
     production adjustment programs, and related programs.
       (2) General supervision of the Federal Crop Insurance 
     Corporation.
       (3) Agricultural credit programs assigned before the date 
     of the enactment of this Act by law to the Farmers Home 
     Administration (including farm ownership and operating, 
     emergency, and disaster loan programs) and other lending 
     programs for agricultural producers and others engaged in the 
     production of agricultural commodities.
       (4) Subchapter B of chapter 1 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3831-3836) and the 
     agricultural conservation program under the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590g et seq.).
       (5) Such other functions as the Secretary considers 
     appropriate, except for those programs assigned by the 
     Secretary to the Natural Resources Conservation Service or 
     another agency of the Department under section 246(b).
       (c) Special Concurrence Requirements for Certain 
     Functions.--In carrying out the programs specified in 
     subsection (b)(4), the Secretary shall--
       (1) acting on the recommendations of the Consolidated Farm 
     Service Agency, with the concurrence of the Natural Resources 
     Conservation Service, issue regulations to carry out such 
     programs;
       (2) ensure that the Consolidated Farm Service Agency, in 
     establishing policies, priorities, and guidelines for such 
     programs, does so with the concurrence of the Natural 
     Resources Conservation Service at national, State, and local 
     levels;
       (3) ensure that, in reaching such concurrence at the local 
     level, the Natural Resources Conservation Service works in 
     cooperation with Soil and Water Conservation Districts or 
     similar organizations established under State law;
       (4) ensure that officials of county and area committees 
     established under section 8(b)(5) of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet 
     annually with officials of such Districts or similar 
     organizations to consider local conservation priorities and 
     guidelines; and
       (5) take steps to ensure that the concurrence process does 
     not interfere with the effective delivery of such programs.
       (d) Jurisdiction Over Conservation Program Appeals.--
       (1) In general.--Until such time as an adverse decision 
     described in this paragraph is referred to the National 
     Appeals Division for consideration, the Consolidated Farm 
     Service Agency shall have initial jurisdiction over any 
     administrative appeal resulting from an adverse decision made 
     under title XII of the Food Security Act of 1985 (16 U.S.C. 
     3801 et seq.), including an adverse decision involving 
     technical determinations made by the Natural Resources 
     Conservation Service.
       (2) Treatment of technical determination.--With respect to 
     administrative appeals involving a technical determination 
     made by the Natural Resources Conservation Service, the 
     Consolidated Farm Service Agency, by rule with the 
     concurrence of the Natural Resources Conservation Service, 
     shall establish procedures for obtaining review by the 
     Natural Resources Conservation Service of the technical 
     determinations involved. Such rules shall ensure that 
     technical criteria established by the Natural Resources 
     Conservation Service shall be used by the Consolidated Farm 
     Service Agency as the basis for any decisions regarding 
     technical determinations. If no review is requested, the 
     technical determination of the Natural Resources Conservation 
     Service shall be the technical basis for any decision 
     rendered by a county or area committee established under 
     section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)). If the committee 
     requests a review by the Natural Resources Conservation 
     Service of a wetlands determination of the Service, the 
     Consolidated Farm Service Agency shall consult with other 
     Federal agencies whenever required by law or under a 
     memorandum of agreement in existence on the date of the 
     enactment of this Act.
       (3) Reinstatement of program benefits.--Rules issued to 
     carry out this subsection shall provide for the prompt 
     reinstatement of benefits to a producer who is determined in 
     an administrative appeal to meet the requirements of title 
     XII of the Food Security Act of 1985 applicable to the 
     producer.
       (e) Use of Federal and Non-Federal Employees.--
       (1) Use authorized.--In the implementation of programs and 
     activities assigned to the Consolidated Farm Service Agency, 
     the Secretary may use interchangeably in local offices of the 
     Agency both Federal employees of the Department and non-
     Federal employees of county and area committees established 
     under section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)).
       (2) Exception.--Notwithstanding paragraph (1), no personnel 
     action (as defined in section 2302(a)(2)(A) of title 5, 
     United States Code) may be taken with respect to a Federal 
     employee unless such action is taken by another Federal 
     employee.
       (f) Collocation.--To the maximum extent practicable, the 
     Secretary shall collocate county offices of the Consolidated 
     Farm Service 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 agricultural 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) Savings Provision.--For purposes of subsections (c) 
     through (f) of this section:
       (1) A reference to the ``Consolidated Farm Service Agency'' 
     includes any other office, agency, or administrative unit of 
     the Department assigned the functions authorized for the 
     Consolidated Farm Service Agency under this section.
       (2) A reference to the ``Natural Resources Conservation 
     Service'' includes any other office, agency, or 
     administrative unit of the Department assigned the functions 
     authorized for the Natural Resources Conservation Service 
     under section 246(b).
       (h) Conforming Amendment.--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 agencies of the Department of Agriculture as the 
     Secretary considers appropriate.''.

     SEC. 227. STATE, COUNTY, AND AREA COMMITTEES.

       (a) Committees Under the Soil Conservation and Domestic 
     Allotment Act.--Section 8(b) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(b)) is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by designating the second through eighth undesignated 
     paragraphs as paragraphs (2) through (8), respectively; and
       (3) by striking paragraph (5) (as so designated) and 
     inserting the following new paragraph:
       ``(5) State, county, and area committees.--
       ``(A) Appointment of state committees.--The Secretary shall 
     appoint in each State a State committee composed of not fewer 
     than 3 nor more than 5 members who are fairly representative 
     of the farmers in the State. The members of a State committee 
     shall serve at the pleasure of the Secretary for such term as 
     the Secretary may establish.
       ``(B) Establishment of county, area, or local committees.--
     (i) In each county or area in which activities are carried 
     out under this section, the Secretary shall establish a 
     county or area committee.
       ``(ii) Any such committee shall consist of not fewer than 3 
     nor more than 5 members who are fairly representative of the 
     agricultural producers in the county or area and who shall be 
     elected by the agricultural producers in such county or area 
     under such procedures as the Secretary may prescribe.
       ``(iii) The Secretary may designate local administrative 
     areas within the county or larger area covered by a committee 
     established under clause (i). Only agricultural producers 
     within a local administrative area who participate or 
     cooperate in programs administered within their area shall be 
     eligible for nomination and election to the local committee 
     for that area, under such regulations as the Secretary may 
     prescribe.
       ``(iv) The Secretary shall solicit and accept nominations 
     from organizations representing the interests of socially 
     disadvantaged groups (as defined in section 355(e)(1) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     2003(e)(1)).
       ``(v) Members of each county, area, or local committee 
     shall serve for terms not to exceed 3 years.
       ``(C) Termination or combination of committees.--The 
     Secretary may not terminate a county or area committee or 
     combine or consolidate two or more county or area committees 
     unless--
       ``(i) the Secretary first notifies the committee or 
     committees involved of the proposed action; and
       ``(ii) the State committee of the State in which the 
     affected counties are located approves of such action in a 
     vote taken after the end of the 60-day period beginning on 
     the date the notification is received.
       ``(D) Use of committees.--The Secretary shall use the 
     services of such committees in carrying out programs under 
     this section and the agricultural credit programs under the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
     seq.) and in considering administrative appeals as provided 
     by section 226(d) of the Department of Agriculture 
     Reorganization Act of 1994. The Secretary may use the 
     services of such committees in carrying out programs under 
     other authorities administered by the Secretary .
       ``(E) Regulations.--The Secretary shall issue such 
     regulations as the Secretary considers necessary relating to 
     the selection and exercise of the functions of the respective 
     committees, and to the administration through such committees 
     of the programs described in subparagraph (D). Pursuant to 
     such regulations, each county and area committee shall select 
     an executive director for the area or county. Such selection 
     shall be made in the same manner as provided for the 
     selection of the county executive director under section 
     7.21(b)(2) of title 7, Code of Federal Regulations, as in 
     effect on January 1, 1994. Regulations governing payments or 
     grants under this subsection shall be as simple and direct as 
     possible, and, whenever practicable, they shall be classified 
     on the following two bases:
       ``(i) Soil-depleting practices.
       ``(ii) Soil-building practices.
       ``(F) Mandatory duties of secretary.--In carrying out this 
     section, the Secretary shall--
       ``(i) insofar as practicable, protect the interests of 
     tenants and sharecroppers;
       ``(ii) accord such encouragement to producer-owned and 
     producer-controlled cooperative associations as will be in 
     harmony with the policy toward cooperative associations set 
     forth in Federal laws and as will tend to promote efficient 
     methods of marketing and distribution;
       ``(iii) in every practicable manner, protect the interests 
     of small producers; and
       ``(iv) in every practical way, encourage and provide for 
     soil-conserving and soil-rebuilding practices.
       ``(G) Discretionary authorities of secretary.--In carrying 
     out this section, the Secretary may use other approved 
     agencies.
       ``(H) Limitations.--In carrying out this section, the 
     Secretary shall not have the authority to acquire any land or 
     any right or interest in land.''.
       (b) Elimination of FmHA County Committees.--The 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
     seq.) is amended--
       (1) by striking section 332 (7 U.S.C. 1982); and
       (2) in section 333 (7 U.S.C. 1983)--
       (A) by striking paragraph (2); and
       (B) redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively.
          Subtitle C--Rural Economic and Community Development

     SEC. 231. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC 
                   AND COMMUNITY DEVELOPMENT.

       (a) Authorization.--The Secretary is authorized to 
     establish in the Department the position of Under Secretary 
     of Agriculture for Rural Economic and Community Development.
       (b) Confirmation Required.--If the Secretary establishes 
     the position of Under Secretary of Agriculture for Rural 
     Economic and Community Development authorized under 
     subsection (a), the Under Secretary shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (c) Functions of Under Secretary.--
       (1) Principal functions.--Upon establishment, the Secretary 
     shall delegate to the Under Secretary of Agriculture for 
     Rural Economic and Community Development those functions 
     under the jurisdiction of the Department that are related to 
     rural economic and community development.
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Rural Economic and Community Development 
     shall perform such other functions as may be required by law 
     or prescribed by the Secretary.
       (d) Succession.--Any official who is serving as Under 
     Secretary of Agriculture for Small Community and Rural 
     Development on the date of the enactment of this Act and who 
     was appointed by the President, by and with the advice and 
     consent of the Senate, shall not be required to be 
     reappointed under subsection (b) to the successor position 
     authorized under subsection (a) if the Secretary establishes 
     the position, and the official occupies the new position, 
     within 180 days after the date of the enactment of this Act 
     (or such later date set by the Secretary if litigation delays 
     rapid succession).
       (e) Loan Approval Authority.--Approval authority for loans 
     and loan guarantees in connection with the electric and 
     telephone loan and loan guarantee programs authorized by the 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) 
     shall not be transferred to, or conditioned on review of, a 
     State director or other employee whose primary duty is not 
     the review and approval of such loans or the provision of 
     assistance to such borrowers.
       (f) Conforming Amendments.--
       (1) Existing position.--Section 3 of the Rural Development 
     Policy Act of 1980 (7 U.S.C. 2211b) is amended by striking 
     subsection (a).
       (2) Executive schedule.--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.''.
       (3) Repeal of rural development administration.--Section 
     364 of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 2006f) is repealed.

     SEC. 232. RURAL UTILITIES SERVICE.

       (a) Establishment Required.--The Secretary shall establish 
     and maintain within the Department the Rural Utilities 
     Service and assign to the Service such functions as the 
     Secretary considers appropriate.
       (b) Administrator.--
       (1) Appointment.--The Rural Utilities Service shall be 
     headed by an Administrator who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (2) Succession.--Any official who is serving as 
     Administrator of the Rural Electrification Administration on 
     the date of the enactment of this Act and who was appointed 
     by the President, by and with the advice and consent of the 
     Senate--
       (A) may be considered to be serving in the successor 
     position established under paragraph (1); and
       (B) shall not be required to be reappointed to that 
     position by reason of the enactment of this Act.
       (3) Executive schedule.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Administrator, Rural Utilities Service, Department of 
     Agriculture.''.
       (c) Functions.--The Secretary shall carry out through the 
     Rural Utilities Service the following functions that are 
     under the jurisdiction of the Department:
       (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).

     SEC. 233. RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE.

       (a) Establishment Authorized.--Notwithstanding any other 
     provision of law, the Secretary is authorized to establish 
     and maintain within the Department the Rural Housing and 
     Community Development Service and to assign to the Service 
     such functions as the Secretary considers appropriate.
       (b) Functions.--If the Secretary establishes the Rural 
     Housing and Community Development Service under subsection 
     (a), the Secretary is authorized to assign to the Service 
     jurisdiction over the following:
       (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.
       (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. 2008-2008d).

     SEC. 234. RURAL BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE.

       (a) Establishment Authorized.--Notwithstanding any other 
     provision of law, the Secretary is authorized to establish 
     and maintain within the Department the Rural Business and 
     Cooperative Development Service and to assign to the Service 
     such functions as the Secretary considers appropriate.
       (b) Functions.--If the Secretary establishes the Rural 
     Business and Cooperative Development Service under subsection 
     (a), the Secretary is authorized to assign to the Service 
     jurisdiction over the following:
       (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).
       (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
     U.S.C. 451 et seq.).

     SEC. 235. CONFORMING AMENDMENTS REGARDING RURAL 
                   ELECTRIFICATION ADMINISTRATION.

       (a) Amendments to Rural Electrification Act of 1936.--The 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is 
     amended--
       (1) by striking the first section (7 U.S.C. 901) and 
     inserting the following:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Rural Electrification Act 
     of 1936'.'';
       (2) in section 2(a) (7 U.S.C. 902(a)), by striking 
     ``Administrator'' and inserting ``Secretary of Agriculture'';
       (3) in section 3(a) (7 U.S.C. 903(a))--
       (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) in section 8 (7 U.S.C. 908)--
       (A) by striking ``Administrator authorized to be appointed 
     by this Act'' and inserting ``Secretary''; and
       (B) by striking ``Rural Electrification Administration 
     created by this Act'' and inserting ``Secretary'';
       (5) by striking section 11A (7 U.S.C. 911a);
       (6) in section 13 (7 U.S.C. 913), by inserting before the 
     period at the end the following: ``; and the term `Secretary' 
     shall be deemed to mean the Secretary of Agriculture'';
       (7) in sections 206(b)(2), 306A(b), 311, and 405(b)(1)(A) 
     (7 U.S.C. 927(b)(2), 936a(b), 940a, and 945(b)(1)(A)), by 
     striking ``Rural Electrification Administration'' each place 
     it appears and inserting ``Secretary'';
       (8) in sections 305(c)(2)(C)(ii)(II) and 306E(d) (7 U.S.C. 
     935(c)(2)(C)(ii)(II) and 936e(d)), by striking 
     ``Administrator'' and inserting ``Secretary'';
       (9) in section 403(b) (7 U.S.C. 943(b)), by striking 
     ``Rural Electrification Administration or of any other agency 
     of the Department of Agriculture,'' and inserting 
     ``Secretary,'';
       (10) in section 404 (7 U.S.C. 944), by striking ``the 
     Administrator of the Rural Electrification Administration'' 
     and inserting ``the Secretary shall designate an official of 
     the Department of Agriculture who'';
       (11) in sections 406(c) and 410 (7 U.S.C. 946(c) and 950), 
     by striking ``Administrator of the Rural Electrification 
     Administration'' each place it appears and inserting 
     ``Secretary'';
       (12) in the heading of section 501 (7 U.S.C. 950aa), by 
     striking ``of rea administrator''; and
       (13) except as otherwise provided in this subsection, by 
     striking ``Administrator'' each place it appears in such Act 
     and inserting ``Secretary''.
       (b) Miscellaneous 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 under the Rural Electrification Act of 
     1936 (7 U.S.C. 901 et seq.)''.
       (2) Section 505 of the Department of Agriculture Organic 
     Act of 1944 (7 U.S.C. 915) is amended--
       (A) by striking ``Rural Electrification Administration'' 
     and inserting ``Secretary of Agriculture''; and
       (B) by striking ``its'' and inserting ``the Secretary's''.
       (3) Section 401 of the Rural Electrification Act of 1938 (7 
     U.S.C. 903 note) is amended in the second paragraph by 
     striking ``Administrator of the Rural Electrification 
     Administration'' and inserting ``Secretary of Agriculture''.
       (4) Chapter 1 of subtitle D of title XXIII of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     950aaa et seq.), relating to Distance Learning and Medical 
     Link Programs, is amended--
       (A) in section 2333--
       (i) by striking paragraph (1); and
       (ii) by redesignating paragraphs (2) through (11) as 
     paragraphs (1) through (10), respectively;
       (B) in section 2334(h)(2), by striking ``section 
     2333(3)(F)'' and inserting ``section 2333(2)(F)''; and
       (C) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary''.
       (5) Section 306(a)(15) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(15)) is amended--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraph (D) as subparagraph (C).
       (6) Section 2322(d) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 1926-1(d)) is amended--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraph (3) as paragraph (2).
           Subtitle D--Food, Nutrition, and Consumer Services

     SEC. 241. UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, 
                   AND CONSUMER SERVICES.

       (a)Authorization.--The Secretary is authorized to establish 
     in the Department the position of Under Secretary of 
     Agriculture for Food, Nutrition, and Consumer Services.
       (b) Confirmation Required.--If the Secretary establishes 
     the position of Under Secretary of Agriculture for Food, 
     Nutrition, and Consumer Services authorized under subsection 
     (a), the Under Secretary shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       (c) Functions of Under Secretary.--
       (1) Principal functions.--Upon establishment, the Secretary 
     shall delegate to the Under Secretary of Agriculture for 
     Food, Nutrition, and Consumer Services those functions under 
     the jurisdiction of the Department that are related to food, 
     nutrition, and consumer services (except as provided in 
     section 261(b)(1)).
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Food, Nutrition, and Consumer Services shall 
     perform such other functions as may be required by law or 
     prescribed by the Secretary.
       (d) Succession.--Any official who is serving as Assistant 
     Secretary of Agriculture for Food and Consumer Services on 
     the date of the enactment of this Act and who was appointed 
     by the President, by and with the advice and consent of the 
     Senate, shall not be required to be reappointed under 
     subsection (b) to the successor position authorized under 
     subsection (a) if the Secretary establishes the position, and 
     the official occupies the new position, within 180 days after 
     the date of the enactment of this Act (or such later date set 
     by the Secretary if litigation delays rapid succession).
       (e) Executive Schedule.--Section 5314 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to the Under Secretary of Agriculture for Farm and Foreign 
     Agricultural Services (as added by section 225(e)(2)) the 
     following:
       ``Under Secretary of Agriculture for Food, Nutrition, and 
     Consumer Services.''.
             Subtitle E--Natural Resources and Environment

     SEC. 245. UNDER SECRETARY OF AGRICULTURE FOR NATURAL 
                   RESOURCES AND ENVIRONMENT.

       (a)Authorization.--The Secretary is authorized to establish 
     in the Department the position of Under Secretary of 
     Agriculture for Natural Resources and Environment.
       (b) Confirmation Required.--If the Secretary establishes 
     the position of Under Secretary of Agriculture for Natural 
     Resources and Environment authorized under subsection (a), 
     the Under Secretary shall be appointed by the President, by 
     and with the advice and consent of the Senate.
       (c) Functions of Under Secretary.--
       (1) Principal functions.--Upon establishment, the Secretary 
     shall delegate to the Under Secretary of Agriculture for 
     Natural Resources and Environment those functions under the 
     jurisdiction of the Department that are related to natural 
     resources and environment (except to the extent those 
     functions are delegated under section 226).
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Natural Resources and Environment shall 
     perform such other functions and duties as may be required by 
     law or prescribed by the Secretary.
       (d) Succession.--Any official who is serving as Assistant 
     Secretary of Agriculture for Natural Resources and 
     Environment on the date of the enactment of this Act and who 
     was appointed by the President, by and with the advice and 
     consent of the Senate, shall not be required to be 
     reappointed under subsection (b) to the successor position 
     authorized under subsection (a) if the Secretary establishes 
     the position, and the official occupies the new position, 
     within 180 days after the date of the enactment of this Act 
     (or such later date set by the Secretary if litigation delays 
     rapid succession).
       (e) Executive Schedule.--Section 5314 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to the Under Secretary of Agriculture for Food, Nutrition, 
     and Consumer Services (as added by section 241(e)) the 
     following:
       ``Under Secretary of Agriculture for Natural Resources and 
     Environment.''.

     SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

       (a) Establishment.--The Secretary is authorized to 
     establish and maintain within the Department a Natural 
     Resources Conservation Service.
       (b) Functions.--If the Secretary establishes the Natural 
     Resources Conservation Service under subsection (a), the 
     Secretary is authorized to assign to the Service jurisdiction 
     over the following:
       (1) The rural environmental conservation program under 
     title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et 
     seq.).
       (2) The Great Plains Conservation Program under section 
     16(b) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590p(b)).
       (3) The Water Bank Act (16 U.S.C. 1301 et seq.);
       (4) The forestry incentive program under 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.), except subchapter B of chapter 1 of subtitle D 
     of such title.
       (6) Salinity control program under section 202(c) of the 
     Colorado River Basin Salinity Control Act (43 U.S.C. 
     1592(c)).
       (7) The Farms for the Future Act of 1990 (7 U.S.C. 4201 
     note).
       (8) Such other functions as the Secretary considers 
     appropriate, except functions under subchapter B of chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3831-3836) and the agricultural conservation 
     program under the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590g et seq.).
       (c) Special Concurrence Requirements for Certain 
     Functions.--In carrying out the programs specified in 
     paragraphs (2), (3), (4), and (6) of subsection (b) and the 
     program under subchapter C of chapter 1 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3837-
     3837f), the Secretary shall--
       (1) acting on the recommendations of the Natural Resources 
     Conservation Service, with the concurrence of the 
     Consolidated Farm Service Agency, issue regulations to carry 
     out such programs;
       (2) ensure that the Natural Resources Conservation Service, 
     in establishing policies, priorities, and guidelines for each 
     such program, does so with the concurrence of the 
     Consolidated Farm Service Agency at national, State, and 
     local levels;
       (3) ensure that, in reaching such concurrence at the local 
     level, the Natural Resources Conservation Service works in 
     cooperation with Soil and Water Conservation Districts or 
     similar organizations established under State law;
       (4) ensure that officials of county and area committees 
     established under section 8(b)(5) of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) meet 
     annually with officials of such Districts or similar 
     organizations to consider local conservation priorities and 
     guidelines; and
       (5) take steps to ensure that the concurrence process does 
     not interfere with the effective delivery of such programs.
       (d) Use of Federal and Non-Federal Employees.--
       (1) Use authorized.--In the implementation of functions 
     assigned to the Natural Resources Conservation Service, the 
     Secretary may use interchangeably in local offices of the 
     Service both Federal employees of the Department and non-
     Federal employees of county and area committees established 
     under section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)).
       (2) Exception.--Notwithstanding paragraph (1), no personnel 
     action (as defined in section 2302(a)(2)(A) of title 5, 
     United States Code) may be taken with respect to a Federal 
     employee unless such action is taken by another Federal 
     employee.
       (e) Savings Provision.--For purposes of subsections (c) and 
     (d) of this section:
       (1) A reference to the ``Natural Resources Conservation 
     Service'' includes any other office, agency, or 
     administrative unit of the Department assigned the functions 
     authorized for the Natural Resources Conservation Service 
     under this section.
       (2) A reference to the ``Consolidated Farm Service Agency'' 
     includes any other office, agency, or administrative unit of 
     the Department assigned the functions authorized for the 
     Consolidated Farm Service Agency under section 226.
       (f) Conforming Amendments.--
       (1) Soil conservation service.--Section 5 of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590e) is 
     repealed.
       (2) Soil and water resources conservation.--The Soil and 
     Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is 
     amended--
       (A) in section 2(2) (16 U.S.C. 2001(2))--
       (i) by striking ``created the Soil Conservation Service''; 
     and
       (ii) by striking ``Department of Agriculture which'' and 
     inserting ``, has ensured that the Department of 
     Agriculture'';
       (B) in section 3(2) (16 U.S.C. 2002(2)), by striking 
     ``through the Soil Conservation Service''; and
       (C) in section 6(a) (16 U.S.C. 2005(a)), by striking ``Soil 
     Conservation Service'' and inserting ``Secretary''.
       (3) State technical committees.--Section 1262 of the Food 
     Security Act of 1985 (16 U.S.C. 3862) is amended by adding at 
     the end the following new subsection:
       ``(e) FACA requirements.--The committees established under 
     section 1261 shall be exempt from the Federal Advisory 
     Committee Act (5 U.S.C. App.).''.

     SEC. 247. REORGANIZATION OF FOREST SERVICE.

       (a) Required Elements of Reorganization Proposals.--
     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, dated 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), identifies any disparities 
     in regional funding patterns, and contains the rationale 
     behind the disparities.
             Subtitle F--Research, Education, and Economics

     SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, 
                   EDUCATION, AND ECONOMICS.

       (a) Authorization.--The Secretary is authorized to 
     establish in the Department the position of Under Secretary 
     of Agriculture for Research, Education, and Economics.
       (b) Confirmation Required.--If the Secretary establishes 
     the position of Under Secretary of Agriculture for Research, 
     Education, and Economics authorized under subsection (a), the 
     Under Secretary shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (c) Functions of Under Secretary.--
       (1) Principal functions.--Upon establishment, the Secretary 
     shall delegate to the Under Secretary of Agriculture for 
     Research, Education, and Economics those functions and duties 
     under the jurisdiction of the Department that are related to 
     research, education, and economics.
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Research, Education, and Economics shall 
     perform such other functions and duties as may be required by 
     law or prescribed by the Secretary.
       (d) Cooperative State Research, Education, and Extension 
     Service.--
       (1) Establishment.--There is established in the Department 
     a Cooperative State Research, Education, and Extension 
     Service.
       (2) Functions.--The Secretary shall delegate to the 
     Cooperative State Research, Education, and Extension Service 
     functions related to cooperative State research programs and 
     cooperative extension and education programs that are under 
     the jurisdiction of the Department.
       (3) Officer-in-charge.--If the Secretary establishes the 
     position of Under Secretary of Agriculture for Research, 
     Education, and Economics, the officer in charge of the 
     Cooperative State Research, Education, and Extension Service 
     shall report directly to the Under Secretary.
       (e) Executive Schedule.--Section 5314 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to the Under Secretary of Agriculture for Natural Resources 
     and Environment (as added by section 245(e)) the following:
       ``Under Secretary of Agriculture for Research, Education, 
     and Economics.''.

     SEC. 252. PROGRAM STAFF.

       In making the personnel reductions required under section 
     213, the Secretary shall reduce the number of Federal 
     research and education personnel of the Department by a 
     percentage equal to at least the percentage of overall 
     Department personnel reductions. The Secretary shall achieve 
     such reduction in research and education personnel in a 
     manner that minimizes duplication and maximizes coordination 
     between Federal and State research and extension activities.
                        Subtitle G--Food Safety

     SEC. 261. UNDER SECRETARY OF AGRICULTURE FOR FOOD SAFETY.

       (a) Establishment.--There is established in the Department 
     of Agriculture the position of Under Secretary of Agriculture 
     for Food Safety. The Under Secretary shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate, from among individuals with specialized training or 
     significant experience in food safety or public health 
     programs.
       (b) Functions of Under Secretary.--
       (1) Principal functions.--The Secretary shall delegate to 
     the Under Secretary of Agriculture for Food Safety those 
     functions and duties under the jurisdiction of the Department 
     that are primarily related to food safety.
       (2) Additional functions.--The Under Secretary of 
     Agriculture for Food Safety shall perform such other 
     functions and duties as may be required by law or prescribed 
     by the Secretary.
       (c) Executive Schedule.--Section 5314 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to the Under Secretary of Agriculture for Research, 
     Education, and Economics (as added by section 251(e)) the 
     following:
       ``Under Secretary of Agriculture for Food Safety.''.
       (d) Technical and Scientific Review Groups.--The Secretary, 
     acting through the Under Secretary for Research, Education, 
     and Economics, 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 Department; 
     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.

     SEC. 262. CONDITIONS FOR IMPLEMENTATION OF ALTERATIONS IN THE 
                   LEVEL OF ADDITIVES ALLOWED IN ANIMAL DIETS.

       (a) Conditions.--The Food and Drug Administration shall not 
     implement or enforce the final rule described in subsection 
     (b) to alter the level of selenium allowed to be used as a 
     supplement in animal diets unless the Commissioner of the 
     Food and Drug Administration makes a determination that--
       (1) selenium additives are not essential, at levels 
     authorized in the absence of such final rule, to maintain 
     animal nutrition and protect animal health;
       (2) selenium at such levels is not safe to the animals 
     consuming the additive;
       (3) selenium at such levels is not safe to individuals 
     consuming edible portions of animals that receive the 
     additive;
       (4) selenium at such levels does not achieve its intended 
     effect of promoting normal growth and reproduction of 
     livestock and poultry; and
       (5) the manufacture and use of selenium at such levels 
     cannot reasonably be controlled by adherence to current good 
     manufacturing practice requirements.
       (b) Final Rule Described.--The final rule referred to in 
     subsection (a) is the final rule issued by the Food and Drug 
     Administration and published in the Federal Register on 
     September 13, 1993 (58 Fed. Reg. 47962), in which the 
     Administration stayed 1987 amendments to the selenium food 
     additive regulations, and any modification of such rule 
     issued after the date of the enactment of this Act.
                 Subtitle H--National Appeals Division

     SEC. 271. DEFINITIONS.

       For purposes of this subtitle:
       (1) Adverse decision.--The term ``adverse decision'' means 
     an administrative decision made by an officer, employee, or 
     committee of an agency that is adverse to a participant. The 
     term includes a denial of equitable relief by an agency or 
     the failure of an agency to issue a decision or otherwise act 
     on the request or right of the participant. The term does not 
     include a decision over which the Board of Contract Appeals 
     has jurisdiction.
       (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 the 
     following (and any successor to the following):
       (A) The Consolidated Farm Service Agency (or other office, 
     agency, or administrative unit of the Department assigned the 
     functions authorized for the Consolidated Farm Service Agency 
     under section 226).
       (B) The Commodity Credit Corporation, with respect to 
     domestic programs.
       (C) The Farmers Home Administration.
       (D) The Federal Crop Insurance Corporation.
       (E) The Rural Development Administration.
       (F) The Natural Resources Conservation Service (or other 
     office, agency, or administrative unit of the Department 
     assigned the functions authorized for the Natural Resources 
     Conservation Service under section 246(b)).
       (G) A State, county, or area committee established under 
     section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)).
       (3) Appellant.--The term ``appellant'' means a participant 
     who appeals an adverse decision in accordance with this 
     subtitle.
       (4) Case record.--The term ``case record'' means all the 
     materials maintained by the Secretary related to an adverse 
     decision.
       (5) Director.--The term ``Director'' means the Director of 
     the Division.
       (6) Division.--The term ``Division'' means the National 
     Appeals Division established by this title.
       (7) Hearing officer.--The term ``hearing officer'' means an 
     individual employed by the Division who hears and determines 
     appeals of adverse decisions by any agency.
       (8) Implement.--The term ``implement'' refers to those 
     actions necessary to effectuate fully and promptly a final 
     determination of the Division not later than 30 calendar days 
     after the effective date of the final determination.
       (9) Participant.--The term ``participant'' shall have the 
     meaning given that term by the Secretary by regulation.

     SEC. 272. NATIONAL APPEALS DIVISION AND DIRECTOR.

       (a) Establishment of Division.--The Secretary shall 
     establish and maintain an independent National Appeals 
     Division within the Department to carry out this subtitle.
       (b) Director.--
       (1) Appointment.--The Division shall be headed by a 
     Director, appointed by the Secretary from among persons who 
     have substantial experience in practicing administrative law. 
     In considering applicants for the position of Director, the 
     Secretary shall consider persons currently employed outside 
     Government as well as Government employees.
       (2) Term and removal.--The Director shall serve for a 6-
     year term of office, and shall be eligible for reappointment. 
     The Director shall not be subject to removal during the term 
     of office, except for cause established in accordance with 
     law.
       (3) Position classification.--The position of the Director 
     may not be a position in the excepted service or filled by a 
     noncareer appointee.
       (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) Determination of Appealability of Agency Decisions.--If 
     an officer, employee, or committee of an agency 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 to the individual participant 
     and thus appealable or is a matter of general applicability 
     and thus not subject to appeal. The determination of the 
     Director as to whether a decision is appealable shall be 
     administratively final.
       (e) Division Personnel.--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.

     SEC. 273. TRANSFER OF FUNCTIONS.

       There are transferred to the Division all functions 
     exercised and all administrative appeals pending before the 
     effective date of this subtitle (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 on the day before the date of the enactment of 
     this Act);
       (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 on the day before the date of the enactment of 
     this Act);
       (3) appeals of decisions made by the Federal Crop Insurance 
     Corporation; and
       (4) appeals of decisions made by the Soil Conservation 
     Service (as in effect on the day before the date of the 
     enactment of this Act).

     SEC. 274. NOTICE AND OPPORTUNITY FOR HEARING.

       Not later than 10 working days after an adverse decision is 
     made that affects the participant, the Secretary shall 
     provide the participant with written notice of such adverse 
     decision and the rights available to the participant under 
     this subtitle or other law for the review of such adverse 
     decision.

     SEC. 275. INFORMAL HEARINGS.

       If an officer, employee, or committee of an agency makes an 
     adverse decision, the agency shall hold, at the request of 
     the participant, an informal hearing on the decision. With 
     respect to programs carried out through the Consolidated Farm 
     Service Agency (or other office, agency, or administrative 
     unit of the Department assigned to carry out the programs 
     authorized for the Consolidated Farm Service Agency under 
     section 226), the Secretary shall maintain the informal 
     appeals process applicable to such programs, as in effect on 
     the date of the enactment of the subtitle. If a mediation 
     program is available under title V of the Agricultural Credit 
     Act of 1987 (7 U.S.C. 5101 et seq.) as a part of the informal 
     hearing process, the participant shall be offered the right 
     to choose such mediation.

     SEC. 276. RIGHT OF PARTICIPANTS TO DIVISION HEARING.

       (a) Appeal to Division for Hearing.--Subject to subsection 
     (b), a participant shall have the right to appeal an adverse 
     decision to the Division for an evidentiary hearing by a 
     hearing officer consistent with section 277.
       (b) Time for Appeal.--To be entitled to a hearing under 
     section 277, a participant shall request the hearing not 
     later than 30 days after the date on which the participant 
     first received notice of the adverse decision.

     SEC. 277. DIVISION HEARINGS.

       (a) General Powers of Director and Hearing Officers.--
       (1) Access to case record.--The Director and hearing 
     officer shall have access to the case record of any adverse 
     decision appealed to the Division for a hearing.
       (2) Administrative procedures.--The Director and hearing 
     officer shall have the authority to require the attendance of 
     witnesses, and the production of evidence, by subpoena and to 
     administer oaths and affirmations. Except to the extent 
     required for the disposition of ex parte matters as 
     authorized by law--
       (A) an interested person outside the Division shall not 
     make or knowingly cause to be made to the Director or a 
     hearing officer who is or may reasonably be expected to be 
     involved in the evidentiary hearing or review of an adverse 
     decision, an ex parte communication (as defined in section 
     551(14) of title 5, United States Code) relevant to the 
     merits of the proceeding;
       (B) the Director and such hearing officer shall not make or 
     knowingly cause to be made to any interested person outside 
     the Division an ex parte communication relevant to the merits 
     of the proceeding.
       (b) Time for Hearing.--Upon a timely request for a hearing 
     under section 276(b), an appellant shall have the right to 
     have a hearing by the Division on the adverse decision within 
     45 days after the date of the receipt of the request for the 
     hearing.
       (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. 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 presented at the hearing without regard 
     to whether the evidence was known to the agency officer, 
     employee, or committee making the adverse decision 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 agency after the hearing to the extent 
     necessary to respond to new facts, information, arguments, or 
     evidence presented or raised by the agency or appellant.
       (4) Burden of proof.--The appellant shall bear the burden 
     of proving that the adverse decision of the agency was 
     erroneous.
       (d) 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. If the determination 
     is not appealed to the Director for review under section 278, 
     the notice provided by the hearing officer shall be 
     considered to be a notice of an administratively final 
     determination.
       (e) 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. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING 
                   OFFICERS.

       (a) Requests for Director Review.--
       (1) Time for request by appellant.--Not later than 30 days 
     after the date on which an appellant receives the 
     determination of a hearing officer under section 277, the 
     appellant shall submit a written request to the Director for 
     review of the determination in order to be entitled to a 
     review by the Director of the determination.
       (2) Time for request by agency head.--Not later 15 business 
     days after the date on which an agency receives the 
     determination of a hearing officer under section 277, the 
     head of the agency may make a written request that the 
     Director review the determination.
       (b) Determination of Director.--The Director shall conduct 
     a review of the determination of the hearing officer using 
     the case record, the record from the evidentiary hearing 
     under section 277, the request for review, and such other 
     arguments or information as may be accepted by the Director. 
     Based on such review, the Director shall issue a final 
     determination notice that upholds, reverses, or modifies the 
     determination of the hearing officer. However, if the 
     Director determines that the hearing record is inadequate, 
     the Director may remand all or a portion of the determination 
     for further proceedings to complete the hearing record or, at 
     the option of the Director, to hold a new hearing. The 
     Director shall complete the review and either issue a final 
     determination or remand the determination not later than--
       (1) 10 business days after receipt of the request for 
     review, in the case of a request by the head of an agency for 
     review; or
       (2) 30 business days after receipt of the request for 
     review, in the case of a request by an appellant for review.
       (c) Basis for Determination.--The determination of the 
     hearing officer and the Director shall be based on 
     information from the case 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.
       (d) Equitable Relief.--Subject to regulations issued by the 
     Secretary, the Director shall have the authority to grant 
     equitable relief under this section in the same manner and to 
     the same extent as such authority is provided to the 
     Secretary under section 326 of the Food and Agriculture Act 
     of 1962 (7 U.S.C. 1339a) and other laws. Notwithstanding the 
     administrative finality of a final determination of an appeal 
     by the Division, the Secretary shall have the authority to 
     grant equitable or other types of relief to the appellant 
     after an administratively final determination is issued by 
     the Division.
       (e) Effective Date.--A final determination issued by the 
     Director 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. 279. JUDICIAL REVIEW.

       A final determination of the Division 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.

     SEC. 280. IMPLEMENTATION OF FINAL DETERMINATIONS OF DIVISION.

       On the return of a case to an agency pursuant to the final 
     determination of the Division, the head of the agency shall 
     implement the final determination not later than 30 days 
     after the effective date of the notice of the final 
     determination.

     SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS 
                   DIVISION.

       (a) Decisions of State, County, and Area Committees.--
       (1) Application of subsection.--This subsection shall apply 
     only with respect to functions of the Consolidated Farm 
     Service Agency or the Commodity Credit Corporation that are 
     under the jurisdiction of a State, county, or area committee 
     established under section 8(b)(5) of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an 
     employee of such a committee.
       (2) Finality.--Each decision of a State, county, or area 
     committee (or an employee of such a committee) covered by 
     paragraph (1) that is 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--
       (A) appealed under this subtitle; or
       (B) modified by the Administrator of the Consolidated Farm 
     Service Agency or the Executive Vice President of the 
     Commodity Credit Corporation.
       (3) Recovery of amounts.--If the decision of the State, 
     county, or area committee has become final under paragraph 
     (2), no action may be taken by the Consolidated Farm Service 
     Agency, the Commodity Credit Corporation, or a State, county, 
     or area committee to recover amounts found to have been 
     disbursed as a result of a decision in error unless the 
     participant had reason to believe that the decision was 
     erroneous.
       (4) Savings provision.--For purposes of this subsection, a 
     reference to the ``Consolidated Farm Service Agency'' 
     includes any other office, agency, or administrative unit of 
     the Department assigned the functions authorized for the 
     Consolidated Farm Service Agency under section 226.
       (b) Agricultural Stabilization and Conservation Service.--
     Section 426 of the Agricultural Act of 1949 (7 U.S.C. 1433e) 
     is repealed.
       (c) Farmers Home Administration.--Section 333B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) 
     is repealed.

     SEC. 282. EXPANSION OF ISSUES COVERED BY STATE MEDIATION 
                   PROGRAMS.

       (a) Expansion of Mediation Programs.--Section 501 of the 
     Agricultural Credit Act of 1987 (7 U.S.C. 5101) is amended--
       (1) in subsection (a), by striking ``an agricultural loan 
     mediation program'' and inserting ``a mediation program'';
       (2) in subsection (b), by striking ``agricultural loan''; 
     and
       (3) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Requirements of State Mediation Programs.--
       ``(1) Issues covered.--To be certified as a qualifying 
     State, the mediation program of the State must provide 
     mediation services for the persons described in paragraph (2) 
     who are involved in agricultural loans or agricultural loans 
     and one or more of the following issues under the 
     jurisdiction of the Department of Agriculture:
       ``(A) Wetlands determinations.
       ``(B) Compliance with farm programs, including conservation 
     programs.
       ``(C) Agricultural credit.
       ``(D) Rural water loan programs.
       ``(E) Grazing on National Forest System lands.
       ``(F) Pesticides.
       ``(G) Such other issues as the Secretary considers 
     appropriate.
       ``(2) Persons eligible for mediation.--The persons referred 
     to in paragraph (1) are producers, their creditors (if 
     applicable), and other persons directly affected by actions 
     of the Department of Agriculture.
       ``(3) Certification conditions.--The Secretary shall 
     certify a State as a qualifying State with respect to the 
     issues proposed to be covered by the mediation program of the 
     State if the mediation program--
       ``(A) provides for mediation services that, if decisions 
     are reached, result in mediated, mutually agreeable decisions 
     between the parties to the mediation;
       ``(B) is authorized or administered by an agency of the 
     State government or by the Governor of the State;
       ``(C) provides for the training of mediators;
       ``(D) provides that the mediation sessions shall be 
     confidential;
       ``(E) ensures, in the case of agricultural loans, that all 
     lenders and borrowers of agricultural loans receive adequate 
     notification of the mediation program; and
       ``(F) ensures, in the case of other issues covered by the 
     mediation program, that persons directly affected by actions 
     of the Department of Agriculture receive adequate 
     notification of the mediation program.''.
       (b) Participation of Department.--Section 503 of such Act 
     (7 U.S.C. 5103) is amended--
       (1) by striking ``agricultural loan'' each place it 
     appears;
       (2) in the matter preceding subparagraph (A) of subsection 
     (a)(1)--
       (A) by inserting ``or agency'' after ``program''; and
       (B) by striking ``that makes, guarantees, or insures 
     agricultural loans'';
       (3) in subsection (a)(1)(A)--
       (A) by inserting ``or agency'' after ``such program''; and
       (B) by inserting ``certified under section 501'' after 
     ``mediation program'';
       (4) in subsection (a)(1)(B)--
       (A) by striking ``, effective beginning on the date of the 
     enactment of this Act,''; and
       (B) by inserting ``certified under section 501'' after 
     ``mediation programs''; and
       (5) in subsection (a)(1)(C)--
       (A) in clause (i), by striking ``described in'' and 
     inserting ``certified under''; and
       (B) in clause (ii), by inserting ``if applicable,'' before 
     ``present''.
       (c) Regulations.--Section 504 of such Act (7 U.S.C. 5104) 
     is amended--
       (1) by striking ``Within 150 days after the date of the 
     enactment of this Act, the'' and inserting ``The''; and
       (2) by adding at the end the following new sentence: ``The 
     regulations prescribed by the Secretary shall require 
     qualifying States to adequately train mediators to address 
     all of the issues covered by the mediation program of the 
     State.''.
       (d) Report.--Section 505 of such Act (7 U.S.C. 5105) is 
     amended by striking ``1990'' and inserting ``1998''.
       (e) Authorization of Appropriations.--Section 506 of such 
     Act (7 U.S.C. 5106) is amended by striking ``1995'' and 
     inserting ``2000''.
       (f) Conforming Amendments.--
       (1) References to agricultural loans.--Subtitle A of title 
     V of such Act is amended--
       (A) in sections 502 and 505(1) (7 U.S.C. 5102, 5105(1)), by 
     striking ``agricultural loan'' each place it appears; and
       (B) in section 505(3) (7 U.S.C. 5105(3)), by striking ``an 
     agricultural loan mediation'' and inserting ``a mediation''.
       (2) Waiver of farm credit system mediation rights by 
     borrowers.--Section 4.14E of the Farm Credit Act of 1971 (12 
     U.S.C. 2202e) is amended by striking ``agricultural loan''.
       (3) Waiver of fmha mediation rights by borrowers.--Section 
     358 of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 2006) is amended by striking ``agricultural loan''.

     SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out the activities of the Division.
          Subtitle I--Miscellaneous Reorganization Provisions

     SEC. 291. SUCCESSORSHIP PROVISIONS RELATING TO BARGAINING 
                   UNITS AND EXCLUSIVE REPRESENTATIVES.

       (a) Voluntary Agreement.--
       (1) In general.--If the exercise of the Secretary's 
     authority under this title results in changes to an existing 
     bargaining unit that has been certified under chapter 71 of 
     title 5, United States Code, the affected parties shall 
     attempt to reach a voluntary agreement on a new bargaining 
     unit and an exclusive representative for such unit.
       (2) Criteria.--In carrying out the requirements of this 
     subsection, the affected parties shall use criteria set forth 
     in--
       (A) sections 7103(a)(4), 7111(e), 7111(f)(1), and 7120 of 
     title 5, United States Code, relating to determining an 
     exclusive representative; and
       (B) section 7112 of title 5, United States Code 
     (disregarding subsections (b)(5) and (d) thereof), relating 
     to determining appropriate units.
       (b) Effect of an Agreement.--
       (1) In general.--If the affected parties reach agreement on 
     the appropriate unit and the exclusive representative for 
     such unit under subsection (a), the Federal Labor Relations 
     Authority shall certify the terms of such agreement, subject 
     to paragraph (2)(A). Nothing in this subsection shall be 
     considered to require the holding of any hearing or election 
     as a condition for certification.
       (2) Restrictions.--
       (A) Conditions requiring noncerti-fication.--The Federal 
     Labor Relations Authority may not certify the terms of an 
     agreement under paragraph (1) if--
       (i) it determines that any of the criteria referred to in 
     subsection (a)(2) (disregarding section 7112(a) of title 5, 
     United States Code) have not been met; or
       (ii) after the Secretary's exercise of authority and before 
     certification under this section, a valid election under 
     section 7111(b) of title 5, United States Code, is held 
     covering any employees who would be included in the unit 
     proposed for certification.
       (B) Temporary waiver of provision that would bar an 
     election after a collective bargaining agreement is 
     reached.--Nothing in section 7111(f)(3) of title 5, United 
     States Code, shall prevent the holding of an election under 
     section 7111(b) of such title that covers employees within a 
     unit certified under paragraph (1), or giving effect to the 
     results of such an election (including a decision not to be 
     represented by any labor organization), if the election is 
     held before the end of the 12-month period beginning on the 
     date such unit is so certified.
       (C) Clarification.--The certification of a unit under 
     paragraph (1) shall not, for purposes of the last sentence of 
     section 7111(b) of title 5, United States Code, or section 
     7111(f)(4) of such title, be treated as if it had occurred 
     pursuant to an election.
       (3) Delegation.--
       (A) In general.--The Federal Labor Relations Authority may 
     delegate to any regional director (as referred to in section 
     7105(e) of title 5, United States Code) its authority under 
     the preceding provisions of this subsection.
       (B) Review.--Any action taken by a regional director under 
     subparagraph (A) shall be subject to review under the 
     provisions of section 7105(f) of title 5, United States Code, 
     in the same manner as if such action had been taken under 
     section 7105(e) of such title, except that in the case of a 
     decision not to certify, such review shall be required if 
     application therefor is filed by an affected party within the 
     time specified in such provisions.
       (c) Definition.--For purposes of this section, the term 
     ``affected party'' means--
       (1) with respect to an exercise of authority by the 
     Secretary under this title, any labor organization affected 
     thereby; and
       (2) the Department of Agriculture.

     SEC. 292. PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.

       (a) Sense of Congress.--It is the sense of the Congress 
     that, to the greatest extent practicable, all equipment and 
     products purchased using funds made available pursuant to 
     this title should be American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available pursuant to this title, the Secretary, 
     to the greatest extent practicable, shall provide to such 
     entity a notice describing the statement made in subsection 
     (a) by the Congress.

     SEC. 293. MISCELLANEOUS CONFORMING AMENDMENTS.

       (a) United States Grain Standards Act.--The United States 
     Grain Standards Act (7 U.S.C. 71 et seq.) is amended--
       (1) in section 3 (7 U.S.C. 75)--
       (A) by inserting ``and'' at the end of subsection (y);
       (B) by striking subsections (z) and (aa); and
       (C) by redesignating subsection (bb) as subsection (z);
       (2) by striking section 3A (7 U.S.C. 75a);
       (3) in section 5(b) (7 U.S.C. 77(b)), by striking ``Service 
     employees'' and inserting ``employees of the Secretary'';
       (4) in sections 7(j)(2) and 7A(l)(2) (7 U.S.C. 79(j)(2) and 
     79a(l)(2)), by striking ``supervision by Service personnel of 
     its field office personnel'' in the first sentence of both 
     sections and inserting ``supervision by the Secretary of the 
     Secretary's field office personnel'';
       (5) in section 12(c) (7 U.S.C. 87a(c)), by striking ``or 
     Administrator'';
       (6) in section 12(d) (7 U.S.C. 87a(d)), by striking ``or 
     the Administrator'';
       (7) except as otherwise provided in this subsection, by 
     striking ``Administrator'' each place it appears and 
     inserting ``Secretary''; and
       (8) except as otherwise provided in this subsection, by 
     striking ``Service'' each place it appears and inserting 
     ``Secretary''.
       (b) Packers and Stockyards Act, 1921.--Section 407 of the 
     Packers and Stockyards Act, 1921 (7 U.S.C. 228), is amended--
       (1) by striking subsection (b);
       (2) by redesignating subsections (c), (d), (e), and (f), as 
     subsections (b), (c), (d), and (e), respectively; and
       (3) in subsection (e) (as so redesignated), by striking 
     ``subsection (e)'' and inserting ``subsection (d)''.

     SEC. 294. REMOVAL OF OBSOLETE ADMINISTRATIVE 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. 295. PROPOSED CONFORMING AMENDMENTS.

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

     SEC. 296. 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;
       (2) the authority delegated to the Secretary under 
     Reorganization Plan No. 2 of 1953 (5 U.S.C. App; 7 U.S.C. 
     2201 note); or
       (3) the authority of an agency, office, officer, or 
     employee of the Department to continue to perform all 
     functions delegated or assigned to the entity or person as of 
     that termination date.
                        TITLE III--MISCELLANEOUS

     SEC. 301. POULTRY LABELING.

       It is the sense of Congress that--
       (1) the United States Department of Agriculture should--
       (A) carry out the plans of the Department to hold public 
     hearings 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
       (B) finalize and publish a decision on the issues as 
     expeditiously as possible after holding the hearings; and
       (2) no person serving on the expert advisory committee 
     established to advise the Secretary of Agriculture on the 
     issues should stand to profit, or represent any interest that 
     would stand to profit, from the decision of the Department on 
     the issues.

     SEC. 302. FIRST AMENDMENT RIGHTS OF EMPLOYEES OF THE UNITED 
                   STATES DEPARTMENT OF AGRICULTURE.

       Notwithstanding any other provision of law, no employee of 
     the United States Department of Agriculture shall be 
     peremptorily removed, on or after February 15, 1994, from the 
     position of the employee without an opportunity for a public 
     or nonpublic hearing, at the option of the employee, because 
     of remarks made during personal time in opposition to 
     policies, or proposed policies, of the Department, including 
     policies or proposed policies regarding homosexuals. Any 
     employee removed on or after February 15, 1994, without the 
     opportunity for such a hearing shall be reinstated to the 
     position of the employee pending such a hearing.

     SEC. 303. ADJUSTED COST OF THRIFTY FOOD PLAN.

       (a) In General.--Section 3(o)(11) of the Food Stamp Act of 
     1977 (7 U.S.C. 2012(o)(11)) is amended by inserting ``and (in 
     the case of households residing in Alaska) on October 1, 
     1994,'' after ``1992,''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective beginning on September 30, 1994.

     SEC. 304. OFFICE OF RISK ASSESSMENT AND COST-BENEFIT 
                   ANALYSIS.

       (a) Office of Risk Assessment and Cost-Benefit Analysis.--
     The Secretary of Agriculture shall establish in the 
     Department of Agriculture an Office of Risk Assessment and 
     Cost-Benefit Analysis, which shall be under the direction of 
     a Director appointed by the Secretary.
       (b) Functions.--The Director shall ensure that any 
     regulatory analysis that is conducted under this section 
     includes a risk assessment and cost-benefit analysis that is 
     performed consistently and uses reasonably obtainable and 
     sound scientific, technical, economic, and other data.
       (1) In general.--Effective six months after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     publish in the Federal Register, for each proposed major 
     regulation the primary purpose of which is to regulate issues 
     of human health, human safety, or the environment that is 
     promulgated by the Department after the enactment of this 
     Act, an analysis with as much specificity as practicable, 
     of--
       (A) the risk, including the effect of the risk, to human 
     health, human safety, or the environment, and any combination 
     thereof, addressed by the regulation, including, where 
     applicable and practicable, the health and safety risks to 
     persons who are disproportionately exposed or particularly 
     sensitive;
       (B) the costs associated with the implementation of, and 
     compliance with, the regulation;
       (C) where appropriate and meaningful, a comparison of that 
     risk relative to other similar risks regulated by the 
     Department or other Federal Agency, resulting from comparable 
     activities and exposure pathways (such comparisons should 
     consider relevant distinctions among risks, such as the 
     voluntary or involuntary nature of risks and the 
     preventability or nonpreventability of risks); and
       (D) the quantitative and qualitative benefits of the 
     regulation, including the reduction or prevention of risk 
     expected from the regulation.

     Where such a regulatory analysis is not practicable because 
     of compelling circumstances, the Director shall provide an 
     explanation in lieu of conducting an analysis under this 
     section.
       (2) Evaluation.--The regulatory analysis referred to in 
     paragraph (1) should also contain a statement that the 
     Secretary of Agriculture evaluated--
       (A) whether the regulation will advance the purpose of 
     protecting against the risk referred to in paragraph (1)(A); 
     and
       (B) whether the regulation will produce benefits and reduce 
     risks to human health, human safety, or the environment, and 
     any combination thereof, in a cost-effective manner as a 
     result of the implementation of and compliance with the 
     regulation, by local, State, and Federal Government and other 
     public and private entities, as estimated in paragraph 
     (1)(B).
       (3) This section shall not be construed to amend, modify, 
     or alter any statute and shall not be subject to judicial 
     review. This section shall not be construed to grant a cause 
     of action to any person. The Secretary of Agriculture shall 
     perform the analyses required in this section in such a 
     manner that does not delay the promulgation or implementation 
     of regulations mandated by statute or judicial order.
       (c) Definition.--As used in this section, the term ``major 
     regulation'' means any regulation that the Secretary of 
     Agriculture estimates is likely to have an annual impact on 
     the economy of the United States of $100,000,000 in 1994 
     dollars.

     SEC. 305. FAIR AND EQUITABLE TREATMENT OF SOCIALLY 
                   DISADVANTAGED PRODUCERS.

       (a) Fair Crop Acreage Bases and Farm Program Payment 
     Yields.--If the Secretary of Agriculture determines that crop 
     acreage bases or farm program payment yields established for 
     farms owned or operated by socially disadvantaged producers 
     are not established in accordance with title V of the 
     Agricultural Act of 1949 (7 U.S.C. 1461 et seq.), the 
     Secretary shall adjust the bases and yields to conform to the 
     requirements of such title and make available any appropriate 
     commodity program benefits.
       (b) Fair Application of Consolidated Farm and Rural 
     Development Act.--If the Secretary of Agriculture determines 
     that application of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.) with respect to 
     socially disadvantaged producers is not consistent with the 
     requirements of such Act, the Secretary shall make such 
     changes in the administration of such Act as the Secretary 
     considers necessary to provide for the fair and equitable 
     treatment of socially disadvantaged producers under such Act.
       (c) Report on Treatment of Socially Disadvantaged 
     Producers.--
       (1) Report required.--The Comptroller General of the United 
     States shall prepare a report to determine--
       (A) whether socially disadvantaged producers are 
     underrepresented on State, county, area, or local committees 
     established under section 8(b)(5) of the Soil Conservation 
     and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or local 
     review committees established under section 363 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1363) because 
     of racial, ethnic, or gender prejudice; and
       (B) if such underrepresentation exists, whether it inhibits 
     or interferes with the participation of socially 
     disadvantaged producers in programs of the Department of 
     Agriculture.
       (2) Submission of report.--Not later than February 1, 1995, 
     the Comptroller General shall submit the report required by 
     this subsection to the Committee on Agriculture of the House 
     of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate.
       (d) Definition.--For purposes of this section, the term 
     ``socially disadvantaged producer'' means a producer who is a 
     member of a group whose members have been subjected to 
     racial, ethnic, or gender prejudice because of their identity 
     as members of a group without regard to their individual 
     qualities.

     SEC. 306. AVIATION INSPECTIONS.

       (a) Study of Aircraft Inspections.--
       (1) Intent of study.--The intent of the study required by 
     this subsection is to examine the cost efficiencies of 
     conducting inspections of aircraft and pilots by one Federal 
     agency without reducing aircraft, passenger, or pilot safety 
     standards or lowering mission preparedness.
       (2) Study required.--The Secretary of Agriculture and the 
     Secretary of Transportation shall jointly conduct a study of 
     the inspection specifications and procedures by which 
     aircraft and pilots contracted by the Department are 
     certified to determine the cost efficiencies of eliminating 
     duplicative Department inspection requirements and 
     transferring some or all inspection requirements to the 
     Federal Aviation Administration, while ensuring that neither 
     aircraft, passenger, nor pilot safety is reduced and that 
     mission preparedness is maintained.
       (3) Special considerations.--In conducting the study, the 
     Secretaries shall evaluate current inspection specifications 
     and procedures mandated by the Department and the Forest 
     Service, taking into consideration the unique requirements 
     and risks of particular Department and Forest Service 
     missions that may require special inspection specifications 
     and procedures to ensure the safety of Department and Forest 
     Service personnel and their contractees.
       (4) Maintenance of standards and preparedness.--In making 
     recommendations to transfer inspection authority or otherwise 
     change Department inspection specifications and procedures, 
     the Secretaries shall ensure that the implementation of any 
     such recommendations does not lower aircraft or pilot 
     standards or preparedness for Department or Forest Service 
     missions.
       (5) Submission of results.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretaries shall 
     submit to Congress the results of the study, including any 
     recommendations to transfer inspection authority or otherwise 
     change Department inspection specifications and procedures 
     and a cost-benefit analysis of such recommendations.
       (b) Review of Recently Adopted Aircraft Policy.--
       (1) Review required.--The Secretaries shall review the 
     policy initiated by the Secretary of Agriculture on July 1, 
     1994, to accept Federal Aviation Administration inspections 
     on aircraft and pilots that provide ``airport to airport'' 
     service for the Forest Service. The policy is currently being 
     cooperatively developed by the Department and the Federal 
     Aviation Administration and is intended to reduce duplicative 
     inspections and to reduce Government costs, while maintaining 
     aircraft, passenger, and pilot safety standards, 
     specifications and procedures currently required by the 
     Department and the Forest Service.
       (2) Expansion of policy.--As part of the review, the 
     Secretary of Agriculture shall examine the feasibility and 
     desirability of applying this policy on a Government-wide 
     basis.
       (3) Submission of results.--Not later than one year after 
     the date of the implementation of the policy, the Secretary 
     of Agriculture shall submit to Congress the results of the 
     review, including any recommendations that the Secretary 
     considers appropriate.

  Mr. DOLE. First, I want to congratulate the work of the Chairman and 
ranking member for their diligence in putting together a crop insurance 
reform package. I have said for years that most farmers would prefer 
workable crop insurance over disaster payments if the Government could 
provide coverage at a reasonable price. The Agriculture committee has 
worked very hard to meet that goal, and I commend those efforts.
  Mr. President, we are faced with a dilemma. For too long, farmers 
have faced the uncertainty of disaster payments. Although the 
Government has provided disaster assistance eight out of the last nine 
years, farmers could not be sure that assistance would be available 
until the last minute. In addition, there have been increased efforts 
to put disaster bills on budget. While the Government must have the 
ability to respond in an emergency, we have a fiscal responsibility to 
pay for these losses. This juggling act convinces me that the future of 
additional disaster bills is uncertain at best.
  The bill before us today is an effort to respond to the years of 
frustration farmers have faced with crop insurance. Too little coverage 
for too much money is a theme I have heard time and again from farmers. 
Crop insurance is an important risk management tool for farmers, and we 
must make every effort to provide producers with a workable plan which 
lowers premiums and increases coverage.
  It is also important to note that through this legislation, we are 
saying no more disaster bills. Instead, this bill requires every 
producer participating in farm programs to take out catastrophic 
coverage. This coverage level is not as good as that provided in 
disaster bills, but it is close.
  Mr. President, in spite of our efforts, I remain skeptical. This 
reform bill is based on projections and is at the mercy of the weather. 
If this reform package does not work and in fact this plan is business 
as usual, I believe Congress should revisit this issue. I will watch 
closely as FCIC works to implement this legislation.
  Mr. DOMENICI. Mr. President, I am supportive of the overall 
objectives of the crop insurance reform bill but skeptical if the 
reform will work.
  I agree that we should reform crop insurance and agree with the 
overall policy objectives.
  We should remove the uncertainty associated with ad hoc disaster 
bills and replace it with a program that will adequately protect 
farmers in a disaster, remove the demand for ad hoc disaster bills, and 
must be financially sound.
  I am happy to see that the conferees adopted an amendment which I 
cosponsored with the chairman of the Budget Committee, Mr. Sasser, 
which would create a hurdle for Congress to provide emergency disaster 
assistance.
  As I stated this is only a hurdle and does not prevent Congress from 
providing disaster assistance in the future.
  The amendment would not allow the emergency designation for both 
discretionary and mandatory agriculture disaster spending.
  This means that all future agriculture disaster spending would fall 
under the pay as you go system. If the disaster spending does not 
include an offset it would require 60 votes to waive the Budget Act.
  Eliminating the emergency designation for both mandatory and 
discretionary spending is necessary if this new crop insurance program 
is supposed to replace ad hoc agriculture disaster bills.
  The conference agreement will also reduce outlays by $154 million in 
fiscal year 1995 and $151 million over the 5-year period based on the 
CBO preliminary assessment.
  This estimate is relative to the fiscal year 1995 budget resolution 
which assumed new mandatory spending for future spending of $1 billion 
per year.
  This bill will actually cost $5 billion over 5 years relative to the 
CBO Commodity Credit Corporation 1994 March baseline.
  This bill will also have scoring implications for the GATT 
implementing bill.
  The implementing bill includes language which would use pay-go 
savings from crop insurance to pay for export programs.
  Since the crop insurance bill will be enacted first, the savings 
associated with it will be scored against the implementing language 
when enacted.
  I urge the adoption of the bill.
  Mr. LEAHY. Mr. President, I am proud to present a comprehensive USDA 
reform package to the Senate. I have worked for 15 years to reach this 
day. For the past 2 years from day to day, hearing to markup, floor 
action to final passage I have worked to reform USDA as a whole, and 
its vital disaster and crop insurance programs in particular.
  First, this bill mandates the first comprehensive reorganization of 
the Department of Agriculture since the 1930's.
  It is a $2 billion downpayment on reinventing Government--it is a 
real victory for the American taxpayers. I doubt that there is anyone 
in this body who hasn't heard from his or her constituents about 
cutting the Federal deficit. This bill is a chance to demonstrate our 
commitment to cutting back the Federal Government.
  But this bill is not just about saving money--it will also improve 
USDA's ability to serve its diverse clientele. The world is changing, 
and the Department of Agriculture must change with it.
  The Department of Agriculture has a proud past, but we need a USDA 
that is looking to the future. By streamlining USDA's operations and 
eliminating levels of bureaucracy, this bill will result in a USDA that 
is more focused on the critical challenges facing American agriculture, 
and that is better able to respond to a changing world.
  The new USDA created by the bill is organized around six basic 
missions. With this bill, we have given the Secretary of Agriculture 
the tools needed to bring USDA into the 21st century.
  This is landmark legislation that: Saves an estimated $2 billion in 
the next 3 years by streamlining Federal employment and departmental 
administration; cuts the size of the USDA bureaucracy by reducing the 
number of Federal employees by 7,500; streamlines USDA operations, 
reducing the number of independent agencies by one-third--from 43 to 
30; cuts the bureaucracy in Washington by requiring a higher percentage 
cut in USDA headquarters than in the field and by requiring 
consolidation of USDA's Washington, DC offices; creates a new 
consolidated Farm Services Agency which will bring together all farm 
programs and makes way for an entirely new field structure based on 
field service centers--this will lead to closing and consolidating over 
1,100 county offices; authorizes a Natural Resources Conservation 
Service which will combine all modern farm conservation programs, 
except the Conservation Reserve Program. This new conservation service 
will bring a clearer focus to USDA efforts to help farmers address 
their conservation and environmental needs; places a greater emphasis 
on food safety by establishing an Under Secretary for Food Safety who 
will oversee all of USDA's food safety programs; establishes a 
consolidated Cooperative State Research, Education and Economics 
Service and provides for coordination of all USDA research and 
extension programs.

  Reinventing Government means more than just changing outdated 
bureaucratic structures. It also means redesigning Government programs 
to eliminate duplication and provide better Government services at 
lower costs to the taxpayer.
  Oversight hearings conducted by the Senate Committee on Agriculture, 
Nutrition, and Forestry found that millions of dollars have been wasted 
in annual, ad hoc disaster programs as a result of insufficient 
production records, inappropriate payment rates, and mismanagement. 
Eliminating ad hoc disaster programs and improving the Federal crop 
insurance program will provide major benefits to both farmers and 
taxpayers. This bill stops that fraud and abuse.
  Farmers will benefit because the reformed crop insurance program will 
provide needed predictability and better risk management options. Ad 
hoc disaster bills are inherently unpredictable, and as a result, 
farmers do not know what type of help they can expect in times of need.
  Rather than relying on the uncertain benefits of annual ad hoc 
disaster bills, farmers will be able to obtain catastrophic crop 
insurance coverage for a nominal processing fee. In addition, the bill 
provides targeted incentives for farmers to purchase higher levels of 
coverage.
  Taxpayers will benefit because the reform bill eliminates the 
senseless duplication of operating separate crop insurance and disaster 
assistance programs that cover the same losses on the same crops. In 
addition, a number of new safeguards will help guard against some of 
the abuses that have plagued the disaster and crop insurance programs 
in the past.
  The crop insurance reform bill: Will save $151 million over the next 
5 years; require increased reporting requirements for all producers who 
have received payments, but who have been allowed in the past to 
provide inadequate documentation to support their claims; mandates that 
payment rates be reduced for producers who do not incur production 
costs because they either did not hire farm labor to harvest a crop, 
did not harvest the crop, or were prevented from planting the crop; 
requires that the payment be adjusted to reflect yield variations due 
to differing farming practices; requires that the payment to a producer 
who receives a guaranteed payment for production reflect the amount of 
the guaranteed production; requires detailed documentation of 
production costs, acres planted, and yields in areas where reported 
acreage has increased dramatically in recent years, unless the acreage 
is inspected or exempted by officials of the USDA; and, establishes 
credible penalties for farmers who misrepresent essential information 
to USDA.
  CBO may underestimate the true savings likely to be achieved by this 
bill. For one thing, CBO's estimates compare the expected costs of the 
reformed program to a baseline where ad hoc disaster programs cost just 
$1 billion per year. In reality, disaster program spending has averaged 
more than $1.5 billion per year over the last 6 years. The bill's 
savings would be even larger against a more realistic baseline.
  I would like to thank Secretary Espy for his leadership in developing 
the reform proposal that served as our starting point, the budget 
conferees for their help in eliminating procedural roadblocks, and 
Senator Lugar and other members of the Agriculture Committee for all 
their help in putting together a solid, bipartisan reform package.
  This reform package is good for taxpayers, good for farmers and good 
for the Department of Agriculture. Passage of this bill will prove to 
the American people that we can cut costs and improve services at the 
same time. In doing so, we will save over $2 billion and set the 
standard for the rest of the Federal Government to follow.
  I also ask unanimous consent that a joint statement by myself and 
Senator Lugar, the ranking member, which provides a legislative history 
of this bill be inserted in the Record. I also ask that other related 
information be included in the Record following my statement.
  Finally, I must mention how much I appreciate the committee's ranking 
member leadership on the matter. If it had been a partisan battle, it 
never would have happened. His leadership on this bill has been 
outstanding.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

  Joint Statement by Senator Patrick J. Leahy and Senator Richard G. 
                       Lugar Regarding H.R. 4217

       The Committee on Agriculture, Nutrition, and Forestry is 
     proud to bring to the floor for final passage H.R. 4217, the 
     Federal Crop Insurance Reform and Department of Agriculture 
     Reorganization Act of 1994.
       The bill before the Senate today is similar in most 
     respects to the bill that passed the Senate in August. It 
     provides authority to reduce the size and increase the 
     efficiency of the Department of Agriculture. It also 
     eliminates the need for annual ad hoc crop disaster programs 
     by expanding and improving the federal crop insurance 
     program.
       The following comments are intended to clarify provisions 
     in the bill.


                   Administrative and operating costs

       Section 508(k)(5)-(7) of the Federal Crop Insurance Act, as 
     amended, requires the FCIC to alter program procedures and 
     administrative requirements to reduce administrative and 
     operating costs of participating reinsured companies and 
     agents commensurate with reductions in administrative expense 
     reimbursements over the next five years to the extent 
     consistent with consideration of program integrity, 
     prevention of fraud or abuse, the need for program expansion, 
     or the maintenance of quality of service to customers.
       New regulatory or paperwork requirements stemming from this 
     Act or from expansion or improvement of the crop insurance of 
     non-insured assistance programs, whether statutory, 
     administrative, or otherwise, and which occur after the date 
     of enactment of this Act, shall be instituted in accordance 
     with the spirit of this section but shall not be included in 
     any determination of the reduction of such requirements under 
     this provision. While being mindful of the need to minimize 
     administrative burden, this provision does not create new 
     formal requirements of the FCIC to address paperwork or 
     regulatory considerations in its adoption of individual 
     rules, regulations, or administrative policies.
       Judgements as to the FCIC's achievement of this requirement 
     will be made by Congress and its oversight Committees, not 
     the Federal courts or any administrative forum. For this 
     reason, determinations by the FCIC as to whether it is 
     achieving or has achieved the cost reduction goals of the 
     subsection are exempted from judicial review or from 
     administrative appeals processes.


                        research and development

       Payments from the insurance fund for research and 
     development under section 516(b)(2)(C) of the Federal Crop 
     Insurance Act, as amended, may cover, among other things, 
     program-related research and development, start-up costs for 
     implementing this legislation such as studies. Pilot 
     projects, data processing improvements, public outreach, and 
     related tasks and functions. The Committee encourages the 
     Corporation to research and develop programs to provide risk 
     management tools for producers making the transition to the 
     new farm practices that better protect natural resources and 
     the environment.


                           program integrity

       In implementing section 508(e)(3) of the Federal Corp 
     Insurance Act, as amended, the Committee expects the 
     Corporation to ensure that those companies and agents who 
     pass on savings in expense reimbursements do not obtain those 
     savings by reducing the services for which the Corporation 
     has contracted. The Corporation is directed to conduct such 
     financial and program audits to ensure that ``savings'' do 
     not come at the expense of program integrity.


                              aquaculture

       The term ``aquaculture'' as the term is used in section 11, 
     noninsured crop disaster assistance, is intended to mean 
     production from a commercial operation conducted on private 
     land or private waters. The word ``food'' as used in the 
     section on non-insured assistance includes fish raised as 
     feed for fish that are consumed as food.


                 definition of limited resources farmer

       Section 508(b)(5(C) of the Federal Corp Insurance Act, as 
     amended, allows the administrative fee for catastrophic risk 
     coverage to be waived for limited resource farmers who, 
     because of economic hardship, are unable to afford the cost 
     of the administrative fee. A limited income from the farm 
     operation (as defined by the Corporation). As applied to this 
     definition, a farm with less than 25 acres aggregated for all 
     corps from which a majority of the producer's income is 
     earned may be considered to a be a ``small or family farm.''


                                Appeals

       The Committee expects the Corporation to allow producers to 
     appeal any adverse decision which may deny benefits or 
     program eligibility for the crop insurance program or the 
     noninsured assistance program. The process should be 
     consistent with existing appeals procedures for programs 
     administered by the Department of Agriculture.


               private sector crop insurance alternative

       Historically, many farmers have not purchased federal crop 
     insurance because they consider premiums for FCIC insurance 
     to be too high for the level of coverage offered. These ``low 
     risk'' farmers usually have a large crop loss only when their 
     local area does. Section 508(e)(4) of the Federal Crop 
     Insurance Reform Act is designed to foster the growth of 
     private sector insurance alternatives by allowing companies 
     to sell their own individual insurance policies backed by 
     FCIC area policies. Such ``combined policies'' can 
     potentially raise crop insurance purchases by reducing 
     premiums faced by low risk producers. The Committee urges the 
     Corporation to encourage the growth of these private policies 
     by approving their use and by improving the contract design 
     and actuarial soundness of Corporation area policies over 
     time.


                      dissemination of information

       In order to insure that all producers are fully aware of 
     the availability of the crop insurance program and the 
     noninsured assistance program, the Corporation is expected to 
     make every practical effort to contact all eligible 
     producers. The Corporation is responsible for providing 
     adequate information as to the availability and requirements 
     for these programs. The Corporation should use direct mail or 
     any other practical means of communication to notify all 
     eligible producers.


                         producer applications

       To avoid a potential hardship on producers, the Committee 
     expects the Corporation to allow all producers to apply for 
     the catastrophic crop insurance program and the noninsured 
     assistance program by mail to the appropriate county or area 
     office. The Committee also strongly encourages the 
     Corporation to give all producers the option to submit any 
     required records or reports by mail.


           consolidating underused farm service field offices

       H.R. 4217 includes all the authority needed by the 
     Secretary of Agriculture to reorganize the Department of 
     Agriculture's Washington, D.C. headquarters. Upon enactment 
     of this bill, the Committee strongly urges the Secretary to 
     proceed not only with headquarters reorganization but with 
     the shutdown and consolidation of at least 1,100 underused 
     USDA field offices.


                         conservation programs

       The authorization of the office of the Under Secretary of 
     Agriculture for Natural Resources and Environment is intended 
     as confirmation that the conservation of natural resources is 
     one of the six fundamental missions of the U.S. Department of 
     Agriculture. We expect the creation of the Natural 
     Resources Conservation Service to result in a strong, 
     independent natural resource management agency in the 
     Department that can assist farmers in meeting the 
     increasingly complex challenge of protecting soil, water, 
     and related resources while sustaining the profitable 
     production of food and fiber.
       Implementation of the special concurrence requirements in 
     Section 246(c) are intended to result in coordination, 
     consultation, and cooperation between the Natural Resources 
     Conservation Service and the Consolidated Farm Services 
     Agency at the national, State, and local levels. We expect 
     the special concurrence requirements to result in integrated 
     and coordinated resource management priorities and program 
     direction at all levels of program implementation. The 
     fundamental goal of the special concurrence requirements is 
     to produce natural resource management policies and programs 
     that address the most important resource problems in ways 
     that make sense for farmers.
       We expect the implementation of special concurrence 
     requirements to simplify the process of developing 
     conservation plans and applying for technical and financial 
     assistance. Concurrence should reduce the number of steps the 
     farmer must take and the number of approvals the farmer must 
     secure to participate in conservation programs. We expect the 
     Department to make every effort to insure that the 
     implementation of the special concurrence requirements 
     increases the effectiveness and efficiency of conservation 
     programs.
       Concurrence and coordination at the local level is 
     critically important. We expect the county Agricultural 
     Service Committees and the Soil and Water conservation 
     Districts to meet annually to develop joint priorities and 
     direction for conservation programs in the county, whether 
     those programs are administered by the Consolidated Farm 
     Services Agency or the Natural Resources Conservation 
     Service. We expect concurrence at the local level to 
     recognize the critical role played by Soil and Water 
     Conservation Districts in achieving the mission of the 
     Natural Resources Conservation Service.
       The consolidation of conservation programs within the 
     Natural Resources Conservation Service coupled with the 
     special concurrence requirement are an important first step 
     toward integration of conservation programs in a single 
     agency that provides farmers the tools to address the 
     increasingly complex resource management agenda that 
     agriculture faces.


                         research and education

       Section 251 gives the Secretary broad authority to 
     reorganize and streamline the Department's research and 
     education programs.
       In recognition of the important role that State research 
     and Extension programs play, Section 251(d) establishes a new 
     Cooperative State Research, Education and Extension Service 
     to consolidate and better coordinate management of State 
     research and Extension programs.
       Section 252 allows the Secretary to downsize the 
     Department's research program staff, so as to reduce 
     unnecessary duplication and ensure consistent policies in all 
     of the Department's research, education and Extension 
     programs.

  Mr. LEAHY. I ask unanimous consent that the USDA reorganization 
summary of key elements be printed in the Record.
  There being no objection, this material was ordered to be printed in 
the Record, as follows:

              USDA Reorganization--Summary of Key Elements

       Budget Savings: Streamlining federal employment and 
     departmental administration will save over $2 billion through 
     1998.
       Streamlining Employment: Requires a reduction in federal 
     employees of at least 7,500; requires a higher percentage cut 
     in USDA headquarters than in the field.
       Streamlining Management: Reduces the number of independent 
     agencies by one third.
       Streamlining Headquarters Offices: Requires a consolidation 
     of USDA's Washington, D.C. offices.
       Consolidated Farm Services Agencies: Merges all farm 
     related programs into a single consolidated Farm Service 
     Agency; makes way for an entirely new field structure based 
     on field service centers; and will lead to closing and 
     consolidating over 1,100 county offices.
       Conservation Programs: Authorizes a consolidated Natural 
     Resources Conservation Service; combines all modern farm 
     conservation programs (except CRP) in the NRCS, in order to 
     focus USDA's efforts to help farmers address their 
     conservation and environmental needs.
       Food Safety: Ensures an enhanced emphasis on food safety by 
     establishing a new Under Secretary for Food Safety to oversee 
     all USDA food safety and inspection programs.
       Research and Education: Establishes a consolidated 
     Cooperative State Research, Education and Economics Service 
     and provides for coordination of all USDA research and 
     extension programs.
                                  ____


 H.R. 4217, Federal Crop Insurance Reform Act of 1994--Summary of Key 
                                Elements

       Effective Date: H.R. 4217 will become effective with the 
     1995 crop year.
       Repeal of Ad Hoc Disaster Authority: Current legal 
     authorities for ad hoc crop loss disaster relief are 
     repealed. In the future, the reformed crop insurance program 
     is expected to eliminate the need for crop disaster bills; 
     the Congressional Budget Act is amended to make it very 
     unlikely that Congress will be able to pass ad hoc disaster 
     bills on an budget emergency basis in the future. In other 
     words, Congress is disciplining itself to actually pay for 
     disaster legislation in the future.
       Catastrophic Crop Insurance Coverage: The Federal crop 
     insurance program is supplemented with a new catastrophic 
     coverage level available to farmers for a nominal processing 
     fee of $50 per crop per county, up to $200 per farmer per 
     county. The catastrophic protection will cover individual 
     farm losses larger than 50 percent of normal yield at a 
     payment rate of 60 percent of the expected market price (50/
     60) until 1999 and subsequent years, when the coverage will 
     be (50/55).
       Linkage to Farm Programs: To ensure wide participation, 
     crop insurance coverage at the catastrophic level or above is 
     linked to participation in Federal commodity programs, 
     Farmers Home Administration loan programs, and the 
     Conservation Reserve Program. This step is expected to result 
     in crop insurance participation rising from 33 percent to 
     about 80 percent of insurable acres.
       Increased Premium Subsidies for Buy-Up Coverage: The bill 
     authorizes the Federal Crop Insurance Corporation to offer 
     individual yield coverage up to 85 percent of normal yield, 
     an increase from the current 75 percent. Federal premium 
     subsidies for buy-up coverage are permanently increased to 
     reduce premiums farmers must pay; FCIC estimates that the 
     cost to a farmer of coverage such as a typical 65 percent 
     yield with 100 percent price will fall by 17 percent. Farmer 
     premiums for coverage of 75/100 or higher will fall by 8 
     percent.
       Combining Individual and Area Coverage: The bill authorizes 
     insurance companies to offer individual coverage to farmers 
     with reinsurance through FCIC area policies. These combined 
     policies will receive a premium subsidy comparable to 
     traditional FCIC individual policies.
       Delivery: Farmers will be able to choose catastrophic 
     coverage from a private reinsured company or from a local 
     USDA office at the option of the Secretary of Agriculture. 
     Buy-up coverage will be available only through private 
     insurers.
       Noninsurable Crops: A standing disaster program will exist 
     for crops not covered by crop insurance. Commercial crops 
     produced for food or fiber, floricultural, ornamental 
     nursery, Christmas tree crops, turfgrass sod, and industrial 
     crops will be eligible for noninsured assistance. Payments 
     for individual farm losses will be triggered when the area 
     average yield for a crop falls below 65 percent of the 
     expected area yield. In that event, disaster payments for 
     that crop will be available to producers for individual farm 
     losses at levels similar to those under the catastrophic 
     insurance plan.
       Fiscal Soundness: The loss ratio target--projected 
     indemnity payments divided by total premiums--is reduced from 
     the current 1.1 to 1.075 beginning October 1, 1998. Also, 
     effective for the 1995 crops, the bill requires that the 
     sales closing date for spring-planted crops be 30 days 
     earlier than the corresponding 1994 sales closing date.
       Expense Reimbursements to Insurance Companies: The bill 
     provides full funding for insurance companies expense 
     reimbursements for fiscal year 1995. As a result, enactment 
     of this bill will ensure that federal crop insurance will be 
     available for the 1995 and future crops. The reimbursement 
     rate for fiscal years 1997-1999 will be 29%, 28%, and 27.5%, 
     respectively. After 1997, the bill pays for company expense 
     reimbursements other than agent sales commissions, when agent 
     sales commissions will continue to be subject to funding 
     available from future Agriculture Appropriations bills.
       Budget Impact: The Congressional Budget Office estimates 
     that H.R. 4217 will reduce outlays by $151 million over the 
     1995-1999 fiscal year period. CBO's cost estimate is relative 
     to the FY 1995 budget resolution baseline, which assumes 
     future spending of $1.0 billion per year associated with 
     future ad hoc farm disaster assistance payments.
  Mr. FORD. Mr. President, I move that the Senate concur in the 
amendment of the House.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. FORD. Mr. President, I move to reconsider the vote.
  Mr. KEMPTHORNE. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________