[Congressional Record Volume 142, Number 18 (Friday, February 9, 1996)]
[Senate]
[Pages S1191-S1262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             THE FARM BILL

  S. 1541, the Agricultural Market Transition Act of 1996, passed the 
Senate on Wednesday, February 7. The text of the bill follows:

                                S. 1541

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agricultural Reform and Improvement Act of 1996''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency 
              payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Suspension and repeal of permanent authorities.
Sec. 110. Effect of amendments.

                      TITLE II--AGRICULTURAL TRADE

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

Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food aid consultative group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of commodity credit corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Levels of assistance under farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

Sec. 241. Agricultural export promotion strategy.
Sec. 242. Export credits.
Sec. 243. Market promotion program.
Sec. 244. Export enhancement program.
Sec. 245. Arrival certification.
Sec. 246. Compliance.
Sec. 247. Regulations.
Sec. 248. Trade compensation and assistance programs.
Sec. 249. Foreign agricultural service.
Sec. 250. Reports.

                       Subtitle C--Miscellaneous

Sec. 251. Reporting requirements relating to tobacco.
Sec. 252. Triggered export enhancement.
Sec. 253. Disposition of commodities to prevent waste.
Sec. 254. Direct sales of dairy products.
Sec. 255. Export sales of dairy products.
Sec. 256. Debt-for-health-and-protection swap.
Sec. 257. Policy on expansion of international markets.
Sec. 258. Policy on maintenance and development of export markets.
Sec. 259. Policy on trade liberalization.
Sec. 260. Agricultural trade negotiations.
Sec. 261. Policy on unfair trade practices.
Sec. 262. Agricultural aid and trade missions.
Sec. 263. Annual reports by agricultural attaches.
Sec. 264. World livestock market price information.
Sec. 265. Orderly liquidation of stocks.
Sec. 266. Sales of extra long staple cotton.
Sec. 267. Regulations.
Sec. 268. Emerging markets.
Sec. 269. Import assistance for CBI beneficiary countries and the 
              Philippines.
Sec. 270. Studies, reports, and other provisions.
Sec. 271. Implementation of commitments under Uruguay Round Agreements.
Sec. 272. Sense of Congress concerning multilateral disciplines on 
              credit guarantees.
Sec. 273. Foreign market development cooperator program.

                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

Sec. 301. Definitions.

     Subtitle B--Environmental Conservation Acreage Reserve Program

Sec. 311. Environmental conservation acreage reserve program.
Sec. 312. Conservation reserve program.
Sec. 313. Wetlands reserve program.
Sec. 314. Environmental quality incentives program.

                    Subtitle C--Conservation Funding

Sec. 321. Conservation funding.

     Subtitle D--National Natural Resources Conservation Foundation

Sec. 331. Short title.
Sec. 332. Definitions.
Sec. 333. National Natural Resources Conservation Foundation.
Sec. 334. Composition and operation.
Sec. 335. Officers and employees.
Sec. 336. Corporate powers and obligations of the Foundation.
Sec. 337. Administrative services and support.
Sec. 338. Audits and petition of Attorney General for equitable relief.
Sec. 339. Release from liability.
Sec. 340. Authorization of appropriations.

                       Subtitle E--Miscellaneous

Sec. 351. Flood risk reduction.
Sec. 352. Forestry.
Sec. 353. State technical committees.
Sec. 354. Conservation of private grazing land.
Sec. 355. Conforming amendments.
Sec. 356. Water bank program.
Sec. 357. Flood water retention pilot projects.
Sec. 358. Wetland conservation exemption.
Sec. 359. Floodplain easements.
Sec. 360. Resource conservation and development program 
              reauthorization.
              
[[Page S1192]]

Sec. 361. Conservation reserve new acreage.
Sec. 362. Repeal of report requirement.
Sec. 363. Watershed protection and flood prevention act amendments.
Sec. 364. Abandonment of converted wetlands.

                     TITLE IV--NUTRITION ASSISTANCE

Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food 
              program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchens program.
Sec. 405. National commodity processing.

                         TITLE V--MISCELLANEOUS

              Subtitle A--General Miscellaneous Provisions

Sec. 501. Fund for dairy producers to pay for nutrient management.
Sec. 502. Crop insurance.
Sec. 503. Revenue insurance.
Sec. 504. Collection and use of agricultural quarantine and inspection 
              fees.
Sec. 505. Commodity Credit Corporation interest rate.
Sec. 506. Everglades Agricultural Area.
Sec. 507. Fund for Rural America.

    Subtitle B--Options Pilot Programs and Risk Management Education

Sec. 511. Short title.
Sec. 512. Purpose.
Sec. 513. Pilot programs.
Sec. 514. Terms and conditions.
Sec. 515. Notice.
Sec. 516. Commodity Credit Corporation.
Sec. 517. Risk management education.

     Subtitle C--Commercial Transportation of Equine for Slaughter

Sec. 521. Findings.
Sec. 522. Definitions.
Sec. 523. Standards for humane commercial transportation of equine for 
              slaughter.
Sec. 524. Records.
Sec. 525. Agents.
Sec. 526. Cooperative agreements.
Sec. 527. Investigations and inspections.
Sec. 528. Interference with enforcement.
Sec. 529. Jurisdiction of courts.
Sec. 530. Civil and criminal penalties.
Sec. 531. Payments for temporary or medical assistance for equine due 
              to violations.
Sec. 532. Relationship to State law.
Sec. 533. Authorization of appropriations.

                       Subtitle D--Miscellaneous

Sec. 541. Livestock dealer trust.
Sec. 542. Planting of energy crops.
Sec. 543. Reimbursable agreements.
Sec. 544. Swine health protection.
Sec. 545. Cooperative work for protection, management, and improvement 
              of National Forest System.
Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.
Sec. 547. Overseas tort claims.
Sec. 548. Graduate School of the United States Department of 
              Agriculture.
Sec. 549. Student intern subsistence program.
Sec. 550. Conveyance of land to White Oak Cemetery.
Sec. 551. Advisory board on agricultural air quality.
Sec. 552. Water systems for rural and Native villages in Alaska.
Sec. 553. Eligibility for grants to broadcasting systems.
Sec. 554. Wildlife Habitat Incentives Program.
Sec. 555. Indian reservations.
Sec. 556. ICD reimbursement for overhead expenses.
Sec. 557. Clarification of effect of resource planning on allocation or 
              use of water.

                            TITLE VI--CREDIT

                    Subtitle A--Agricultural Credit

                    chapter 1--farm ownership loans

Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.

                       chapter 2--operating loans

Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for 
              guaranteed assistance.

                       chapter 3--emergency loans

Sec. 621. Hazard insurance requirement.
Sec. 622. Maximum emergency loan indebtedness.
Sec. 623. Insurance of emergency loans.

                  chapter 4--administrative provisions

Sec. 631. Use of collection agencies.
Sec. 632. Notice of loan service programs.
Sec. 633. Sale of property.
Sec. 634. Definitions.
Sec. 635. Authorization for loans.
Sec. 636. List of certified lenders and inventory property 
              demonstration project.
Sec. 637. Homestead property.
Sec. 638. Restructuring.
Sec. 639. Transfer of inventory lands.
Sec. 640. Implementation of target participation rates.
Sec. 641. Delinquent borrowers and credit study.

                     chapter 5--general provisions

Sec. 651. Conforming amendments.

                     Subtitle B--Farm Credit System

           chapter 1--agricultural mortgage secondary market

Sec. 661. Definition of real estate.
Sec. 662. Definition of certified facility.
Sec. 663. Duties of Federal Agricultural Mortgage Corporation.
Sec. 664. Powers of the Corporation.
Sec. 665. Federal reserve banks as depositaries and fiscal agents.
Sec. 666. Certification of agricultural mortgage marketing facilities.
Sec. 667. Guarantee of qualified loans.
Sec. 668. Mandatory reserves and subordinated participation interests 
              eliminated.
Sec. 669. Standards requiring diversified pools.
Sec. 670. Small farms.
Sec. 671. Definition of an affiliate.
Sec. 672. State usury laws superseded.
Sec. 673. Extension of capital transition period.
Sec. 674. Minimum capital level.
Sec. 675. Critical capital level.
Sec. 676. Enforcement levels.
Sec. 677. Recapitalization of the Corporation.
Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.

                      chapter 2--regulatory relief

Sec. 681. Compensation of association personnel.
Sec. 682. Use of private mortgage insurance.
Sec. 683. Removal of certain borrower reporting requirement.
Sec. 684. Reform of regulatory limitations on dividend, member 
              business, and voting practices of eligible farmer-owned 
              cooperatives.
Sec. 685. Removal of Federal Government certification requirement for 
              certain private sector financings.
Sec. 686. Borrower stock.
Sec. 687. Disclosure relating to adjustable rate loans.
Sec. 688. Borrowers' rights.
Sec. 689. Formation of administrative service entities.
Sec. 690. Joint management agreements.
Sec. 691. Dissemination of quarterly reports.
Sec. 692. Regulatory review.
Sec. 693. Examination of Farm Credit System Institutions.
Sec. 694. Conservatorships and receiverships.
Sec. 695. Farm Credit Insurance Fund operations.
Sec. 696. Examinations by the Farm Credit System Insurance Corporation.
Sec. 697. Powers with respect to troubled insured system banks.
Sec. 698. Oversight and regulatory actions by the Farm Credit System 
              Insurance Corporation.
Sec. 699. Farm Credit System Insurance Corporation Board of Directors.
Sec. 699A. Liability for making criminal referrals.

                      TITLE VII--RURAL DEVELOPMENT

  Subtitle A--Amendments to the Food, Agriculture, Conservation, and 
                           Trade Act of 1990

                     chapter 1--general provisions

Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural 
              technology grants.
Sec. 706. Monitoring the economic progress of rural America.
Sec. 707. Analysis by Office of Technology Assessment.
Sec. 708. Rural health infrastructure improvement.
Sec. 709. Census of agriculture.

   chapter 2--alternative agricultural research and commercialization

Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization 
              Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization 
              Revolving Fund.
Sec. 729. Procurement preferences for products receiving corporation 
              assistance.
Sec. 730. Business plan and feasibility study and report.

 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                  Act

                     chapter 1--general provisions

Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small 
              communities.
Sec. 743. Emergency community water assistance grant program for 
              smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.

[[Page S1193]]

Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development 
              loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. National sheep industry improvement center.

             chapter 2--rural community advancement program

Sec. 761. Rural community advancement program.
Sec. 762. Community facilities grant program.

    Subtitle C--Amendments to the Rural Electrification Act of 1936

Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by executive 
              order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services 
              to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural business incubator fund.

         Subtitle D--Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers, 
              and rural families.
Sec. 793. Cooperative agreements.

              TITLE VIII--RESEARCH EXTENSION AND EDUCATION

 Subtitle A--Amendments to National Agricultural Research, Extension, 
          and Teaching Policy Act of 1977 and Related Statutes

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 803. Joint Council on Food and Agricultural Sciences.
Sec. 804. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 805. Agricultural Science and Technology Review Board.
Sec. 806. Federal Advisory Committee Act exemption for Federal-State 
              cooperative programs.
Sec. 807. Coordination and planning of agricultural research, 
              extension, and education.
Sec. 808. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 809. Grants for research on the production and marketing of 
              alcohols and industrial hydrocarbons from agricultural 
              commodities and forest products.
Sec. 810. Policy research centers.
Sec. 811. Human nutrition intervention and health promotion research 
              program.
Sec. 812. Food and nutrition education program.
Sec. 813. Purposes and findings relating to animal health and disease 
              research.
Sec. 814. Animal Health Science Research Advisory Board.
Sec. 815. Animal health and disease continuing research.
Sec. 816. Animal health and disease national or regional research.
Sec. 817. Resident instruction program at 1890 land-grant colleges.
Sec. 818. Grant program to upgrade agricultural and food sciences 
              facilities at 1890 land-grant colleges.
Sec. 819. National research and training centennial centers 
              authorization.
Sec. 820. Grants to States for international trade development centers.
Sec. 821. Agricultural research programs.
Sec. 822. Extension education.
Sec. 823. Supplemental and alternative crops research.
Sec. 824. Aquaculture assistance programs.
Sec. 825. Rangeland research.
Sec. 826. Technical amendments.

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

Sec. 831. Water quality research, education, and coordination.
Sec. 832. Education program regarding handling of agricultural 
              chemicals and agricultural chemical containers.
Sec. 833. Program administration.
Sec. 834. National genetics resources program.
Sec. 835. National agricultural weather information system.
Sec. 836. Research regarding production, preparation, processing, 
              handling, and storage of agricultural products.
Sec. 837. Plant and animal pest and disease control program.
Sec. 838. Livestock product safety and inspection program.
Sec. 839. Plant genome mapping program.
Sec. 840. Specialized research programs.
Sec. 841. Agricultural telecommunications program.
Sec. 842. National centers for agricultural product quality research.
Sec. 843. Turkey research center authorization.
Sec. 844. Special grant to study constraints on agricultural trade.
Sec. 845. Pilot project to coordinate food and nutrition education 
              programs.
Sec. 846. Assistive technology program for farmers with disabilities.
Sec. 847. Demonstration projects.
Sec. 848. National rural information center clearinghouse.
Sec. 849. Global climate change.
Sec. 850. Technical amendments.

             Subtitle C--Miscellaneous Research Provisions

Sec. 861. Critical agricultural materials research.
Sec. 862. 1994 Institutions.
Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, 
              including Tuskegee University and the District of 
              Columbia.
Sec. 864. Committee of nine.
Sec. 865. Agricultural research facilities.
Sec. 866. National competitive research initiative.
Sec. 867. Cotton crop reports.
Sec. 868. Rural development research and education.
Sec. 869. Human nutrition research.
Sec. 870. Dairy goat research program.
Sec. 871. Grants to upgrade 1890 land-grant college extension 
              facilities.
Sec. 872. Stuttgart National Aquaculture Research Center.
Sec. 873. National aquaculture policy, planning, and development.
Sec. 874. Expansion of authorities related to the national arboretum.
Sec. 875. Study of agricultural research service.
Sec. 876. Labeling of domestic and imported lamb and mutton.
Sec. 877. Sense of Senate.

                    TITLE IX--AGRICULTURAL PROMOTION

                          Subtitle A--Popcorn

Sec. 901. Short title.
Sec. 902. Findings and declaration of policy.
Sec. 903. Definitions.
Sec. 904. Issuance of orders.
Sec. 905. Required terms in orders.
Sec. 906. Referenda.
Sec. 907. Petition and review.
Sec. 908. Enforcement.
Sec. 909. Investigations and power to subpoena.
Sec. 910. Relation to other programs.
Sec. 911. Regulations.
Sec. 912. Authorization of appropriations.

                    Subtitle B--Canola and Rapeseed

Sec. 921. Short title.
Sec. 922. Findings and declaration of policy.
Sec. 923. Definitions.
Sec. 924. Issuance and amendment of orders.
Sec. 925. Required terms in orders.
Sec. 926. Assessments.
Sec. 927. Referenda.
Sec. 928. Petition and review.
Sec. 929. Enforcement.
Sec. 930. Investigations and power to subpoena.
Sec. 931. Suspension or termination of an order.
Sec. 932. Regulations.
Sec. 933. Authorization of appropriations.

                         Subtitle C--Kiwifruit

Sec. 941. Short title.
Sec. 942. Findings and purposes.
Sec. 943. Definitions.
Sec. 944. Issuance of orders.
Sec. 945. National Kiwifruit Board.
Sec. 946. Required terms in order.
Sec. 947. Permissive terms in order.
Sec. 948. Petition and review.
Sec. 949. Enforcement.
Sec. 950. Investigations and power to subpoena.
Sec. 951. Referenda.
Sec. 952. Suspension and termination of order by Secretary.
Sec. 953. Regulations.
Sec. 954. Authorization of appropriations.

             Subtitle D--Commodity Promotion and Evaluation

Sec. 961. Commodity promotion and evaluation.
            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Agricultural Market 
     Transition Act''.

     SEC. 102. DEFINITIONS.

       In this title:
       (1) Considered planted.--The term ``considered planted'' 
     means acreage that is considered planted under title V of the 
     Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in 
     effect prior to the suspension under section 110(b)(1)(J)).
       (2) Contract.--The term ``contract'' means a production 
     flexibility contract entered into under section 103.
       (3) Contract acreage.--The term ``contract acreage'' means 
     1 or more crop acreage 

[[Page S1194]]
     bases established for contract commodities under title V of the 
     Agricultural Act of 1949 (as in effect prior to the 
     suspension under section 110(b)(1)(J)) that would have been 
     in effect for the 1996 crop (but for the suspension under 
     section 110(b)(1)(J)).
       (4) Contract commodity.--The term ``contract commodity'' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, and rice.
       (5) Contract payment.--The term ``contract payment'' means 
     a payment made under section 103 pursuant to a contract.
       (6) Corn.--The term ``corn'' means field corn.
       (7) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (8) Farm program payment yield.--The term ``farm program 
     payment yield'' means the farm program payment yield 
     established for the 1995 crop of a contract commodity under 
     title V of the Agricultural Act of 1949 (as in effect prior 
     to the suspension under section 110(b)(1)(J)).
       (9) Loan commodity.--The term ``loan commodity'' means each 
     contract commodity, extra long staple cotton, and oilseeds.
       (10) Oilseed.--The term ``oilseed'' means a crop of 
     soybeans, sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, or, if designated by the Secretary, 
     other oilseeds.
       (11) Person.--The term ``person'' means an individual, 
     partnership, firm, joint-stock company, corporation, 
     association, trust, estate, or State agency.
       (12) Producer.--
       (A) In general.--The term ``producer'' means a person who, 
     as owner, landlord, tenant, or sharecropper, shares in the 
     risk of producing a crop, and is entitled to share in the 
     crop available for marketing from the farm, or would have 
     shared had the crop been produced.
       (B) Hybrid seed.--The term ``producer'' includes a person 
     growing hybrid seed under contract. In determining the 
     interest of a grower of hybrid seed in a crop, the Secretary 
     shall not take into consideration the existence of a hybrid 
     seed contract.
       (13) Program.--The term ``program'' means the agricultural 
     market transition program established under this title.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (16) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

       (a) Contracts Authorized.--
       (1) Offer and terms.--Beginning as soon as practicable 
     after the date of the enactment of this title, the Secretary 
     shall offer to enter into a contract with an eligible owner 
     or operator described in paragraph (2) on a farm containing 
     eligible farmland. Under the terms of a contract, the owner 
     or operator shall agree, in exchange for annual contract 
     payments, to comply with--
       (A) the conservation plan for the farm prepared in 
     accordance with section 1212 of the Food Security Act of 1985 
     (16 U.S.C. 3812);
       (B) wetland protection requirements applicable to the farm 
     under subtitle C of title XII of the Act (16 U.S.C. 3821 et 
     seq.); and
       (C) the planting flexibility requirements of subsection 
     (j).
       (2) Eligible owners and operators described.--The following 
     persons shall be considered to be an owner or operator 
     eligible to enter into a contract:
       (A) An owner of eligible farmland who assumes all of the 
     risk of producing a crop.
       (B) An owner of eligible farmland who shares in the risk of 
     producing a crop.
       (C) An operator of eligible farmland with a share-rent 
     lease of the eligible farmland, regardless of the length of 
     the lease, if the owner enters into the same contract.
       (D) An operator of eligible farmland who cash rents the 
     eligible farmland under a lease expiring on or after 
     September 30, 2002, in which case the consent of the owner is 
     not required.
       (E) An operator of eligible farmland who cash rents the 
     eligible farmland under a lease expiring before September 30, 
     2002, if the owner consents to the contract.
       (F) An owner of eligible farmland who cash rents the 
     eligible farmland and the lease term expires before September 
     30, 2002, but only if the actual operator of the farm 
     declines to enter into a contract. In the case of an owner 
     covered by this subparagraph, contract payments shall not 
     begin under a contract until the fiscal year following the 
     fiscal year in which the lease held by the nonparticipating 
     operator expires.
       (G) An owner or operator described in a preceding 
     subparagraph regardless of whether the owner or operator 
     purchased catastrophic risk protection for a fall-planted 
     1996 crop under section 508(b) of the Federal Crop Insurance 
     Act (7 U.S.C. 1508(b)).
       (3) Tenants and sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interests of operators who are tenants and 
     sharecroppers.
       (b) Elements.--
       (1) Time for contracting.--
       (A) Deadline.--Except as provided in subparagraph (B), the 
     Secretary may not enter into a contract after April 15, 1996.
       (B) Conservation reserve lands.--
       (i) In general.--At the beginning of each fiscal year, the 
     Secretary shall allow an eligible owner or operator on a farm 
     covered by a conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) that terminates after the date specified in 
     subparagraph (A) to enter into or expand a production 
     flexibility contract to cover the contract acreage of the 
     farm that was subject to the former conservation reserve 
     contract.
       (ii) Amount.--Contract payments made for contract acreage 
     under this subparagraph shall be made at the rate and amount 
     applicable to the annual contract payment level for the 
     applicable crop.
       (2) Duration of contract.--
       (A) Beginning date.--A contract shall begin with--
       (i) the 1996 crop of a contract commodity; or
       (ii) in the case of acreage that was subject to a 
     conservation reserve contract described in paragraph (1)(B), 
     the date the production flexibility contract was entered into 
     or expanded to cover the acreage.
       (B) Ending date.--A contract shall extend through the 2002 
     crop.
       (3) Estimation of contract payments.--At the time the 
     Secretary enters into a contract, the Secretary shall provide 
     an estimate of the minimum contract payments anticipated to 
     be made during at least the first fiscal year for which 
     contract payments will be made.
       (c) Eligible Farmland Described.--Land shall be considered 
     to be farmland eligible for coverage under a contract only if 
     the land has contract acreage attributable to the land and--
       (1) for at least 1 of the 1991 through 1995 crops, at least 
     a portion of the land was enrolled in the acreage reduction 
     program authorized for a crop of a contract commodity under 
     section 101B, 103B, 105B, or 107B of the Agricultural Act of 
     1949 (as in effect prior to the amendment made by section 
     110(b)(2)) or was considered planted, including land on a 
     farm that is owned or leased by a beginning farmer (as 
     determined by the Secretary) that the Secretary determines is 
     necessary to establish a fair and equitable crop acreage 
     base;
       (2) was subject to a conservation reserve contract under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) whose term expired, or was voluntarily terminated, on 
     or after January 1, 1995; or
       (3) is released from coverage under a conservation reserve 
     contract by the Secretary during the period beginning on 
     January 1, 1995, and ending on the date specified in 
     subsection (b)(1)(A).
       (d) Time for Payment.--
       (1) In general.--An annual contract payment shall be made 
     not later than September 30 of each of fiscal years 1996 
     through 2002.
       (2) Advance payments.--
       (A) Fiscal year 1996.--At the option of the owner or 
     operator, 50 percent of the contract payment for fiscal year 
     1996 shall be made not later than June 15, 1996.
       (B) Subsequent fiscal years.--At the option of the owner or 
     operator for fiscal year 1997 and each subsequent fiscal 
     year, 50 percent of the annual contract payment shall be made 
     on December 15.
       (e) Amounts Available for Contract Payments for Each Fiscal 
     Year.--
       (1) In general.--The Secretary shall, to the maximum extent 
     practicable, expend on a fiscal year basis the following 
     amounts to satisfy the obligations of the Secretary under all 
     contracts:
       (A) For fiscal year 1996, $5,570,000,000.
       (B) For fiscal year 1997, $5,385,000,000.
       (C) For fiscal year 1998, $5,800,000,000.
       (D) For fiscal year 1999, $5,603,000,000.
       (E) For fiscal year 2000, $5,130,000,000.
       (F) For fiscal year 2001, $4,130,000,000.
       (G) For fiscal year 2002, $4,008,000,000.
       (2) Allocation.--The amount made available for a fiscal 
     year under paragraph (1) shall be allocated as follows:
       (A) For wheat, 26.26 percent.
       (B) For corn, 46.22 percent.
       (C) For grain sorghum, 5.11 percent.
       (D) For barley, 2.16 percent.
       (E) For oats, 0.15 percent.
       (F) For upland cotton, 11.63 percent.
       (G) For rice, 8.47 percent.
       (3) Adjustment.--The Secretary shall adjust the amounts 
     allocated for each contract commodity under paragraph (2) for 
     a particular fiscal year by--
       (A) subtracting an amount equal to the amount, if any, 
     necessary to satisfy payment requirements under sections 
     103B, 105B, and 107B of the Agricultural Act of 1949 (as in 
     effect prior to the amendment made by section 110(b)(2)) for 
     the 1994 and 1995 crops of the commodity;
       (B) adding an amount equal to the sum of all repayments of 
     deficiency payments received under section 114(a)(2) of the 
     Agricultural Act of 1949 for the commodity;
       (C) to the maximum extent practicable, adding an amount 
     equal to the sum of all contract payments withheld by the 
     Secretary, at the request of an owner or operator subject to 
     a contract, as an offset against repayments of deficiency 
     payments otherwise required under section 114(a)(2) of the 
     Act (as so in effect) for the commodity; and
       (D) adding an amount equal to the sum of all refunds of 
     contract payments received during the preceding fiscal year 
     under subsection (h) for the commodity.
       (4) Additional rice allocation.--In addition to the 
     allocations provided under paragraphs (1), (2), and (3), the 
     amounts made 

[[Page S1195]]
     available for rice contract payments shall be increased by $17,000,000 
     for each of fiscal years 1997 through 2002.
       (f) Determination of Contract Payments.--
       (1) Individual payment quantity of contract commodities.--
     For each contract, the payment quantity of a contract 
     commodity for each fiscal year shall be equal to the product 
     of--
       (A) 85 percent of the contract acreage; and
       (B) the farm program payment yield.
       (2) Annual payment quantity of contract commodities.--The 
     payment quantity of each contract commodity covered by all 
     contracts for each fiscal year shall equal the sum of the 
     amounts calculated under paragraph (1) for each individual 
     contract.
       (3) Annual payment rate.--The payment rate for a contract 
     commodity for each fiscal year shall be equal to--
       (A) the amount made available under subsection (e) for the 
     contract commodity for the fiscal year; divided by
       (B) the amount determined under paragraph (2) for the 
     fiscal year.
       (4) Annual payment amount.--The amount to be paid under a 
     contract in effect for each fiscal year with respect to a 
     contract commodity shall be equal to the product of--
       (A) the payment quantity determined under paragraph (1) 
     with respect to the contract; and
       (B) the payment rate in effect under paragraph (3).
       (5) Assignment of contract payments.--The provisions of 
     section 8(g) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(g)) (relating to assignment of payments) 
     shall apply to contract payments under this subsection. The 
     owner or operator making the assignment, or the assignee, 
     shall provide the Secretary with notice, in such manner as 
     the Secretary may require in the contract, of any assignment 
     made under this paragraph.
       (6) Sharing of contract payments.--The Secretary shall 
     provide for the sharing of contract payments among the owners 
     and operators subject to the contract on a fair and equitable 
     basis.
       (g) Payment Limitation.--The total amount of contract 
     payments made to a person under a contract during any fiscal 
     year may not exceed the payment limitations established under 
     sections 1001 through 1001C of the Food Security Act of 1985 
     (7 U.S.C. 1308 through 1308-3).
       (h) Effect of Violation.--
       (1) Termination of contract.--Except as provided in 
     paragraph (2), if an owner or operator subject to a contract 
     violates the conservation plan for the farm containing 
     eligible farmland under the contract, wetland protection 
     requirements applicable to the farm, or the planting 
     flexibility requirements of subsection (j), the Secretary 
     shall terminate the contract with respect to the owner or 
     operator on each farm in which the owner or operator has an 
     interest. On the termination, the owner or operator shall 
     forfeit all rights to receive future contract payments on 
     each farm in which the owner or operator has an interest and 
     shall refund to the Secretary all contract payments received 
     by the owner or operator during the period of the violation, 
     together with interest on the contract payments as determined 
     by the Secretary.
       (2) Refund or adjustment.--If the Secretary determines that 
     a violation does not warrant termination of the contract 
     under paragraph (1), the Secretary may require the owner or 
     operator subject to the contract--
       (A) to refund to the Secretary that part of the contract 
     payments received by the owner or operator during the period 
     of the violation, together with interest on the contract 
     payments as determined by the Secretary; or
       (B) to accept a reduction in the amount of future contract 
     payments that is proportionate to the severity of the 
     violation, as determined by the Secretary.
       (3) Foreclosure.--An owner or operator subject to a 
     contract may not be required to make repayments to the 
     Secretary of amounts received under the contract if the 
     contract acreage has been foreclosed on and the Secretary 
     determines that forgiving the repayments is appropriate in 
     order to provide fair and equitable treatment. This paragraph 
     shall not void the responsibilities of such an owner or 
     operator under the contract if the owner or operator 
     continues or resumes operation, or control, of the contract 
     acreage. On the resumption of operation or control over the 
     contract acreage by the owner or operator, the provisions of 
     the contract in effect on the date of the foreclosure shall 
     apply.
       (4) Review.--A determination of the Secretary under this 
     subsection shall be considered to be an adverse decision for 
     purposes of the availability of administrative review of the 
     determination.
       (i) Transfer of Interest in Lands Subject to Contract.--
       (1) Effect of transfer.--Except as provided in paragraph 
     (2), the transfer by an owner or operator subject to a 
     contract of the right and interest of the owner or operator 
     in the contract acreage shall result in the termination of 
     the contract with respect to the acreage, effective on the 
     date of the transfer, unless the transferee of the acreage 
     agrees with the Secretary to assume all obligations of the 
     contract. At the request of the transferee, the Secretary may 
     modify the contract if the modifications are consistent with 
     the objectives of this section as determined by the 
     Secretary.
       (2) Exception.--If an owner or operator who is entitled to 
     a contract payment dies, becomes incompetent, or is otherwise 
     unable to receive the contract payment, the Secretary shall 
     make the payment, in accordance with regulations prescribed 
     by the Secretary.
       (j) Planting Flexibility.--
       (1) Permitted crops.--Subject to paragraph (2), any 
     commodity or crop may be planted on contract acreage on a 
     farm.
       (2) Limitations.--
       (A) Haying and grazing.--
       (i) Time limitations.--Haying and grazing on land exceeding 
     15 percent of the contract acreage on a farm as provided in 
     clause (iii) shall be permitted, except during any 
     consecutive 5-month period between April 1 and October 31 
     that is determined by the State committee established under 
     section 8(b) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(b)) for a State. In the case of a natural 
     disaster, the Secretary may permit unlimited haying and 
     grazing on the contract acreage of a farm.
       (ii) Contract commodities.--Contract acreage planted to a 
     contract commodity during the crop year may be hayed or 
     grazed without limitation.
       (iii) Haying and grazing limitation on portion of contract 
     acreage.--Unlimited haying and grazing shall be permitted on 
     not more than 15 percent of the contract acreage on a farm.
       (B) Alfalfa.--Alfalfa may be planted for harvest without 
     limitation on the contract acreage on a farm, except that 
     each contract acre that is planted for harvest to alfalfa in 
     excess of 15 percent of the total contract acreage on a farm 
     shall be ineligible for contract payments.
       (C) Fruits and vegetables.--
       (i) In general.--The planting for harvest of fruits and 
     vegetables shall be prohibited on contract acreage, unless 
     there is a history of double cropping of a contract commodity 
     and fruits and vegetables.
       (ii) Unrestricted vegetables.--Lentils, mung beans, and dry 
     peas may be planted without limitation on contract acreage.
       (k) Conservation Farm Option.--
       (1) In general.--The Secretary shall offer eligible owners 
     and operators with contract acreage under this title on a 
     farm who also have entered into a conservation reserve 
     program contract under subchapter B of chapter 1 of subtitle 
     D of title XII of the Food Security Act of 1985 (7 U.S.C. 
     3831 et seq.), the option of entering into a conservation 
     farm option contract for a period of 10 years, as an 
     alternative to the market transition payment contract.
       (2) Terms.--Under the conservation farm option contract--
       (A) the Secretary shall provide eligible owners and 
     operators with payments that reflect the Secretary's estimate 
     of the payments and benefits the eligible owner or operator 
     is expected to receive during the 10-year period under--
       (i) conservation cost-share programs administered by the 
     Secretary;
       (ii) conservation reserve program rental and cost-share 
     payments;
       (iii) market transition payments; and
       (iv) loan programs for contract commodities, oilseeds, and 
     extra long staple cotton; and
       (B) the eligible owner and operator shall--
       (i) forego eligibility to participate in the conservation 
     reserve program, conservation cost-share program payments, 
     and market transition contracts; and
       (ii) comply with a conservation plan for the farm approved 
     by the Secretary that is consistent with the State 
     conservation farm option plan established under paragraph 
     (3).
       (3) State conservation farm option plan.--In consultation 
     with the State Technical Committee established under section 
     1261 of the Food Security Act of 1985 (16 U.S.C. 3801), the 
     Secretary shall establish a plan for each State that is 
     designed to--
       (A) protect wildlife habitat;
       (B) improve water quality; and
       (C) reduce soil erosion.

     SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                   DEFICIENCY PAYMENTS.

       (a) Availability of Nonrecourse Loans.--
       (1) Availability.--For each of the 1996 through 2002 crops 
     of each loan commodity, the Secretary shall make available to 
     producers on a farm nonrecourse marketing assistance loans 
     for loan commodities produced on the farm. The loans shall be 
     made under terms and conditions that are prescribed by the 
     Secretary and at the loan rate established under subsection 
     (b) for the loan commodity.
       (2) Eligible production.--The following production shall be 
     eligible for a marketing assistance loan under this section:
       (A) In the case of a marketing assistance loan for a 
     contract commodity, any production by a producer who has 
     entered into a production flexibility contract.
       (B) In the case of a marketing assistance loan for extra 
     long staple cotton and oilseeds, any production.
       (b) Loan Rates.--
       (1) Wheat.--
       (A) Loan rate.--Subject to subparagraph (B), the loan rate 
     for a marketing assistance loan for wheat shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of wheat, excluding the year in which the 
     average price was the 

[[Page S1196]]
     highest and the year in which the average price was the lowest in the 
     period; but
       (ii) not more than $2.58 per bushel.
       (B) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of wheat to total use for the marketing year will be--
       (i) equal to or greater than 30 percent, the Secretary may 
     reduce the loan rate for wheat for the corresponding crop by 
     an amount not to exceed 10 percent in any year;
       (ii) less than 30 percent but not less than 15 percent, the 
     Secretary may reduce the loan rate for wheat for the 
     corresponding crop by an amount not to exceed 5 percent in 
     any year; or
       (iii) less than 15 percent, the Secretary may not reduce 
     the loan rate for wheat for the corresponding crop.
       (C) No effect on future years.--Any reduction in the loan 
     rate for wheat under subparagraph (B) shall not be considered 
     in determining the loan rate for wheat for subsequent years.
       (2) Feed grains.--
       (A) Loan rate for corn.--Subject to subparagraph (B), the 
     loan rate for a marketing assistance loan for corn shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of corn, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of corn, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (ii) not more than $1.89 per bushel.
       (B) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of corn to total use for the marketing year will be--
       (i) equal to or greater than 25 percent, the Secretary may 
     reduce the loan rate for corn for the corresponding crop by 
     an amount not to exceed 10 percent in any year;
       (ii) less than 25 percent but not less than 12.5 percent, 
     the Secretary may reduce the loan rate for corn for the 
     corresponding crop by an amount not to exceed 5 percent in 
     any year; or
       (iii) less than 12.5 percent the Secretary may not reduce 
     the loan rate for corn for the corresponding crop.
       (C) No effect on future years.--Any reduction in the loan 
     rate for corn under subparagraph (B) shall not be considered 
     in determining the loan rate for corn for subsequent years.
       (D) Other feed grains.--The loan rate for a marketing 
     assistance loan for grain sorghum, barley, and oats, 
     respectively, shall be established at such level as the 
     Secretary determines is fair and reasonable in relation to 
     the rate that loans are made available for corn, taking into 
     consideration the feeding value of the commodity in relation 
     to corn.
       (3) Upland cotton.--
       (A) Loan rate.--Subject to subparagraph (B), the loan rate 
     for a marketing assistance loan for upland cotton shall be 
     established by the Secretary at such loan rate, per pound, as 
     will reflect for the base quality of upland cotton, as 
     determined by the Secretary, at average locations in the 
     United States a rate that is not less than the smaller of--
       (i) 85 percent of the average price (weighted by market and 
     month) of the base quality of cotton as quoted in the 
     designated United States spot markets during 3 years of the 
     5-year period ending July 31 in the year in which the loan 
     rate is announced, excluding the year in which the average 
     price was the highest and the year in which the average price 
     was the lowest in the period; or
       (ii) 90 percent of the average, for the 15-week period 
     beginning July 1 of the year in which the loan rate is 
     announced, of the 5 lowest-priced growths of the growths 
     quoted for Middling 1\3/32\-inch cotton C.I.F. Northern 
     Europe (adjusted downward by the average difference during 
     the period April 15 through October 15 of the year in which 
     the loan is announced between the average Northern European 
     price quotation of such quality of cotton and the market 
     quotations in the designated United States spot markets for 
     the base quality of upland cotton), as determined by the 
     Secretary.
       (B) Limitations.--The loan rate for a marketing assistance 
     loan for upland cotton shall not be less than $0.50 per pound 
     or more than $0.5192 per pound.
       (4) Extra long staple cotton.--The loan rate for a 
     marketing assistance loan for extra long staple cotton shall 
     be--
       (A) not less than 85 percent of the simple average price 
     received by producers of extra long staple cotton, as 
     determined by the Secretary, during 3 years of the 5 previous 
     marketing years, excluding the year in which the average 
     price was the highest and the year in which the average price 
     was the lowest in the period; but
       (B) not more than $0.7965 per pound.
       (5) Rice.--The loan rate for a marketing assistance loan 
     for rice shall be $6.50 per hundredweight.
       (6) Oilseeds.--
       (A) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of soybeans, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of soybeans, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (ii) not less than $4.92 or more than $5.26 per bushel.
       (B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan for sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed, individually, shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of sunflower seed, individually, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of sunflower seed, 
     individually, excluding the year in which the average price 
     was the highest and the year in which the average price was 
     the lowest in the period; but
       (ii) not less than $0.087 or more than $0.093 per pound.
       (C) Other oilseeds.--The loan rates for a marketing 
     assistance loan for other oilseeds shall be established at 
     such level as the Secretary determines is fair and reasonable 
     in relation to the loan rate available for soybeans, except 
     in no event shall the rate for the oilseeds (other than 
     cottonseed) be less than the rate established for soybeans on 
     a per-pound basis for the same crop.
       (c) Term of Loan.--In the case of each loan commodity 
     (other than upland cotton or extra long staple cotton), a 
     marketing assistance loan under subsection (a) shall have a 
     term of 9 months beginning on the first day of the first 
     month after the month in which the loan is made. A marketing 
     assistance loan for upland cotton or extra long staple cotton 
     shall have a term of 10 months beginning on the first day of 
     the first month after the month in which the loan is made. 
     The Secretary may not extend the term of a marketing 
     assistance loan for any loan commodity.
       (d) Repayment.--
       (1) Repayment rates for wheat and feed grains.--The 
     Secretary shall permit a producer to repay a marketing 
     assistance loan under subsection (a) for wheat, corn, grain 
     sorghum, barley, and oats at a level that the Secretary 
     determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodities 
     by the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodities; and
       (D) allow the commodities produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.
       (2) Repayment rates for upland cotton, oilseeds, and 
     rice.--The Secretary shall permit producers to repay a 
     marketing assistance loan under subsection (a) for upland 
     cotton, oilseeds, and rice at a level that is the lesser of--
       (A) the loan rate established for upland cotton, oilseeds, 
     and rice, respectively, under subsection (b); or
       (B) the prevailing world market price for upland cotton, 
     oilseeds, and rice, respectively (adjusted to United States 
     quality and location), as determined by the Secretary.
       (3) Repayment rates for extra long staple cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under subsection (b), plus interest (as determined 
     by the Secretary).
       (4) Prevailing world market price.--For purposes of 
     paragraph (2)(B) and subsection (f), the Secretary shall 
     prescribe by regulation--
       (A) a formula to determine the prevailing world market 
     price for each loan commodity, adjusted to United States 
     quality and location; and
       (B) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for each loan 
     commodity.
       (5) Adjustment of prevailing world market price for upland 
     cotton.--
       (A) In general.--During the period ending July 31, 2003, 
     the prevailing world market price for upland cotton (adjusted 
     to United States quality and location) established under 
     paragraph (4) shall be further adjusted if--
       (i) the adjusted prevailing world market price is less than 
     115 percent of the loan rate for upland cotton established 
     under subsection (b), as determined by the Secretary; and
       (ii) the Friday through Thursday average price quotation 
     for the lowest-priced United States growth as quoted for 
     Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern 
     Europe is greater than the Friday through Thursday average 
     price of the 5 lowest-priced growths of upland cotton, as 
     quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F. 
     Northern Europe (referred to in this subsection as the 
     ``Northern Europe price'').
       (B) Further adjustment.--Except as provided in subparagraph 
     (C), the adjusted prevailing world market price for upland 
     cotton shall be further adjusted on the basis of some or all 
     of the following data, as available:
       (i) The United States share of world exports.
       (ii) The current level of cotton export sales and cotton 
     export shipments.
       (iii) Other data determined by the Secretary to be relevant 
     in establishing an accurate prevailing world market price for 
     upland cotton (adjusted to United States quality and 
     location).
       (C) Limitation on further adjustment.--The adjustment under 
     subparagraph (B) may not exceed the difference between--
       (i) the Friday through Thursday average price for the 
     lowest-priced United States 

[[Page S1197]]
     growth as quoted for Middling 1\3/32\-inch cotton delivered C.I.F. 
     Northern Europe; and
       (ii) the Northern Europe price.
       (e) Loan Deficiency Payments.--
       (1) Availability.--Except as provided in paragraph (4), the 
     Secretary may make loan deficiency payments available to 
     producers who, although eligible to obtain a marketing 
     assistance loan under subsection (a) with respect to a loan 
     commodity, agree to forgo obtaining the loan for the 
     commodity in return for payments under this subsection.
       (2) Computation.--A loan deficiency payment under this 
     subsection shall be computed by multiplying--
       (A) the loan payment rate determined under paragraph (3) 
     for the loan commodity; by
       (B) the quantity of the loan commodity that the producers 
     on a farm are eligible to place under loan but for which the 
     producers forgo obtaining the loan in return for payments 
     under this subsection.
       (3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       (A) the loan rate established under subsection (b) for the 
     loan commodity; exceeds
       (B) the rate at which a loan for the commodity may be 
     repaid under subsection (d).
       (4) Exception for extra long staple cotton.--This 
     subsection shall not apply with respect to extra long staple 
     cotton.
       (f) Special Marketing Loan Provisions for Upland Cotton.--
       (1) Cotton user marketing certificates.--
       (A) Issuance.--Subject to subparagraph (D), during the 
     period ending July 31, 2003, the Secretary shall issue 
     marketing certificates or cash payments to domestic users and 
     exporters for documented purchases by domestic users and 
     sales for export by exporters made in the week following a 
     consecutive 4-week period in which--
       (i) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe exceeds the Northern Europe price by more than 1.25 
     cents per pound; and
       (ii) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location) does not 
     exceed 130 percent of the loan rate for upland cotton 
     established under subsection (b).
       (B) Value of certificates or payments.--The value of the 
     marketing certificates or cash payments shall be based on the 
     amount of the difference (reduced by 1.25 cents per pound) in 
     the prices during the 4th week of the consecutive 4-week 
     period multiplied by the quantity of upland cotton included 
     in the documented sales.
       (C) Administration of marketing certificates.--
       (i) Redemption, marketing, or exchange.--The Secretary 
     shall establish procedures for redeeming marketing 
     certificates for cash or marketing or exchange of the 
     certificates for agricultural commodities owned by the 
     Commodity Credit Corporation in such manner, and at such 
     price levels, as the Secretary determines will best 
     effectuate the purposes of cotton user marketing 
     certificates. Any price restrictions that would otherwise 
     apply to the disposition of agricultural commodities by the 
     Commodity Credit Corporation shall not apply to the 
     redemption of certificates under this paragraph.
       (ii) Designation of commodities and products.--To the 
     extent practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and products, 
     including storage sites, the owners would prefer to receive 
     in exchange for certificates. If any certificate is not 
     presented for redemption, marketing, or exchange within a 
     reasonable number of days after the issuance of the 
     certificate (as determined by the Secretary), reasonable 
     costs of storage and other carrying charges, as determined by 
     the Secretary, shall be deducted from the value of the 
     certificate for the period beginning after the reasonable 
     number of days and ending with the date of the presentation 
     of the certificate to the Commodity Credit Corporation.
       (iii) Transfers.--Marketing certificates issued to domestic 
     users and exporters of upland cotton may be transferred to 
     other persons in accordance with regulations issued by the 
     Secretary.
       (D) Exception.--The Secretary shall not issue marketing 
     certificates or cash payments under subparagraph (A) if, for 
     the immediately preceding consecutive 10-week period, the 
     Friday through Thursday average price quotation for the 
     lowest priced United States growth, as quoted for Middling 
     (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
     adjusted for the value of any certificate issued under this 
     paragraph, exceeds the Northern Europe price by more than 
     1.25 cents per pound.
       (E) Limitation on expenditures.--Total expenditures under 
     this paragraph shall not exceed $701,000,000 during fiscal 
     years 1996 through 2002.
       (2) Special import quota.--
       (A) Establishment.--The President shall carry out an import 
     quota program that provides that, during the period ending 
     July 31, 2003, whenever the Secretary determines and 
     announces that for any consecutive 10-week period, the Friday 
     through Thursday average price quotation for the lowest-
     priced United States growth, as quoted for Middling (M) 1\3/
     32\-inch cotton, delivered C.I.F. Northern Europe, adjusted 
     for the value of any certificates issued under paragraph (1), 
     exceeds the Northern Europe price by more than 1.25 cents per 
     pound, there shall immediately be in effect a special import 
     quota.
       (B) Quantity.--The quota shall be equal to 1 week's 
     consumption of upland cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (C) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under subparagraph (A) and entered 
     into the United States not later than 180 days after the 
     date.
       (D) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     subparagraph (A), except that a special quota period may not 
     be established under this paragraph if a quota period has 
     been established under subsection (g).
       (E) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (F) Definition.--In this paragraph, the term ``special 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (g) Limited Global Import Quota for Upland Cotton.--
       (1) In general.--The President shall carry out an import 
     quota program that provides that whenever the Secretary 
     determines and announces that the average price of the base 
     quality of upland cotton, as determined by the Secretary, in 
     the designated spot markets for a month exceeded 130 percent 
     of the average price of such quality of cotton in the markets 
     for the preceding 36 months, notwithstanding any other 
     provision of law, there shall immediately be in effect a 
     limited global import quota subject to the following 
     conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Definitions.--In this subsection:
       (i) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--

       (I) the carry-over of upland cotton at the beginning of the 
     marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       (II) production of the current crop; and
       (III) imports to the latest date available during the 
     marketing year.

       (ii) Demand.--The term ``demand'' means--

       (I) the average seasonally adjusted annual rate of domestic 
     mill consumption in the most recent 3 months for which data 
     are available; and
       (II) the larger of--

       (aa) average exports of upland cotton during the preceding 
     6 marketing years; or
       (bb) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.
       (iii) Limited global import quota.--The term ``limited 
     global import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (E) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (2) No overlap.--Notwithstanding paragraph (1), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (f)(2).
       (h) Source of Loans.--
       (1) In general.--The Secretary shall provide the loans 
     authorized by this section through the Commodity Credit 
     Corporation and other means available to the Secretary.
       (2) Processors.--Whenever any loan or surplus removal 
     operation for any agricultural commodity is carried out 
     through purchases from or loans or payments to processors, 
     the Secretary shall, to the extent practicable, obtain from 
     the processors such assurances as the Secretary considers 
     adequate that the producers of the commodity have received or 
     will receive maximum benefits from the loan or surplus 
     removal operation.
       (i) Adjustments of Loans.--
     
[[Page S1198]]

       (1) In general.--The Secretary may make appropriate 
     adjustments in the loan levels for any commodity for 
     differences in grade, type, quality, location, and other 
     factors.
       (2) Loan level.--The adjustments shall, to the maximum 
     extent practicable, be made in such manner that the average 
     loan level for the commodity will, on the basis of the 
     anticipated incidence of the factors, be equal to the level 
     of support determined as provided in this section.
       (j) Personal Liability of Producers for Deficiencies.--
       (1) In general.--Except as provided in paragraph (2), no 
     producer shall be personally liable for any deficiency 
     arising from the sale of the collateral securing any 
     nonrecourse loan made under this section unless the loan was 
     obtained through a fraudulent representation by the producer.
       (2) Limitations.--Paragraph (1) shall not prevent the 
     Commodity Credit Corporation or the Secretary from requiring 
     a producer to assume liability for--
       (A) a deficiency in the grade, quality, or quantity of a 
     commodity stored on a farm or delivered by the producer;
       (B) a failure to properly care for and preserve a 
     commodity; or
       (C) a failure or refusal to deliver a commodity in 
     accordance with a program established under this section.
       (3) Acquisition of collateral.--The Secretary may include 
     in a contract for a nonrecourse loan made under this section 
     a provision that permits the Commodity Credit Corporation, on 
     and after the maturity of the loan or any extension of the 
     loan, to acquire title to the unredeemed collateral without 
     obligation to pay for any market value that the collateral 
     may have in excess of the loan indebtedness.
       (4) Sugarcane and sugar beets.--A security interest 
     obtained by the Commodity Credit Corporation as a result of 
     the execution of a security agreement by the processor of 
     sugarcane or sugar beets shall be superior to all statutory 
     and common law liens on raw cane sugar and refined beet sugar 
     in favor of the producers of sugarcane and sugar beets and 
     all prior recorded and unrecorded liens on the crops of 
     sugarcane and sugar beets from which the sugar was derived.
       (k) Commodity Credit Corporation Sales Price 
     Restrictions.--
       (1) In general.--The Commodity Credit Corporation may sell 
     any commodity owned or controlled by the Corporation at any 
     price that the Secretary determines will maximize returns to 
     the Corporation.
       (2) Nonapplication of sales price restrictions.--Paragraph 
     (1) shall not apply to--
       (A) a sale for a new or byproduct use;
       (B) a sale of peanuts or oilseeds for the extraction of 
     oil;
       (C) a sale for seed or feed if the sale will not 
     substantially impair any loan program;
       (D) a sale of a commodity that has substantially 
     deteriorated in quality or as to which there is a danger of 
     loss or waste through deterioration or spoilage;
       (E) a sale for the purpose of establishing a claim arising 
     out of a contract or against a person who has committed 
     fraud, misrepresentation, or other wrongful act with respect 
     to the commodity;
       (F) a sale for export, as determined by the Corporation; 
     and
       (G) a sale for other than a primary use.
       (3) Presidential disaster areas.--
       (A) In general.--Notwithstanding paragraph (1), on such 
     terms and conditions as the Secretary may consider in the 
     public interest, the Corporation may make available any 
     commodity or product owned or controlled by the Corporation 
     for use in relieving distress--
       (i) in any area in the United States (including the Virgin 
     Islands) declared by the President to be an acute distress 
     area because of unemployment or other economic cause, if the 
     President finds that the use will not displace or interfere 
     with normal marketing of agricultural commodities; and
       (ii) in connection with any major disaster determined by 
     the President to warrant assistance by the Federal Government 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (B) Costs.--Except on a reimbursable basis, the Corporation 
     shall not bear any costs in connection with making a 
     commodity available under subparagraph (A) beyond the cost of 
     the commodity to the Corporation incurred in--
       (i) the storage of the commodity; and
       (ii) the handling and transportation costs in making 
     delivery of the commodity to designated agencies at 1 or more 
     central locations in each State or other area.
       (4) Efficient operations.--Paragraph (1) shall not apply to 
     the sale of a commodity the disposition of which is desirable 
     in the interest of the effective and efficient conduct of the 
     operations of the Corporation because of the small quantity 
     of the commodity involved, or because of the age, location, 
     or questionable continued storability of the commodity.

     SEC. 105. PAYMENT LIMITATIONS.

       (a) In General.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) 
     through (4) and inserting the following:
       ``(1) Limitation on payments under production flexibility 
     contracts.--The total amount of contract payments made under 
     section 103 of the Agricultural Market Transition Act to a 
     person under 1 or more production flexibility contracts 
     during any fiscal year may not exceed $40,000.
       ``(2) Limitation on marketing loan gains and loan 
     deficiency payments.--
       ``(A) Limitation.--The total amount of payments specified 
     in subparagraph (B) that a person shall be entitled to 
     receive under section 104 of the Agricultural Market 
     Transition Act for contract commodities and oilseeds during 
     any crop year may not exceed $75,000.
       ``(B) Description of payments.--The payments referred to in 
     subparagraph (A) are the following:
       ``(i) Any gain realized by a producer from repaying a 
     marketing assistance loan for a crop of any loan commodity at 
     a lower level than the original loan rate established for the 
     commodity under section 104(b) of the Act.
       ``(ii) Any loan deficiency payment received for a loan 
     commodity under section 104(e) of the Act.''.
       (b) Conforming Amendments.--
       (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
     1308) (as amended by subsection (a)) is amended--
       (A) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (3), (4), and (5), respectively; and
       (B) in the second sentence of paragraph (3)(A) (as so 
     redesignated), by striking ``paragraphs (6) and (7)'' and 
     inserting ``paragraphs (4) and (5)''.
       (2) Section 1305(d) of the Agricultural Reconciliation Act 
     of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) is amended 
     by striking ``paragraphs (5) through (7) of section 1001, as 
     amended by this subtitle,'' and inserting ``paragraphs (3) 
     through (5) of section 1001,''.
       (3) Section 1001A of the Food Security Act of 1985 (7 
     U.S.C. 1308-1(a)(1)) is amended--
       (A) in the first sentence of subsection (a)(1)--
       (i) by striking ``section 1001(5)(B)(i)'' and inserting 
     ``section 1001(3)(B)(i)'';
       (ii) by striking ``under the Agricultural Act of 1949 (7 
     U.S.C. 1421 et seq.)''; and
       (iii) by striking ``section 1001(5)(B)(i)(II)'' and 
     inserting ``section 1001(3)(B)(i)(II)''; and
       (B) in subsection (b)--
       (i) in paragraph (1)--

       (I) by striking ``under the Agricultural Act of 1949''; and
       (II) by striking ``section 1001(5)(B)(i)'' and inserting 
     ``section 1001(3)(B)(i)''; and

       (ii) in paragraph (2)(B), by striking ``section 
     1001(5)(B)(i)(II)'' and inserting ``section 
     1001(3)(B)(i)(II)''.
       (4) Section 1001C(a) of the Food Security Act of 1985 (7 
     U.S.C. 1308-3(a)) is amended--
       (A) by striking ``For each of the 1991 through 1997 crops, 
     any'' and inserting ``Any'';
       (B) by striking ``price support program loans, payments, or 
     benefits made available under the Agricultural Act of 1949 (7 
     U.S.C. 1421 et seq.),'' and inserting ``loans or payments 
     made available under the Agricultural Market Transition 
     Act''; and
       (C) by striking ``during the 1989 through 1997 crop 
     years''.

     SEC. 106. PEANUT PROGRAM.

       (a) Quota Peanuts.--
       (1) Availability of loans.--The Secretary shall make 
     nonrecourse loans available to producers of quota peanuts.
       (2) Loan rate.--The national average quota loan rate for 
     quota peanuts shall be $610 per ton.
       (3) Inspection, handling, or storage.--The loan amount may 
     not be reduced by the Secretary by any deductions for 
     inspection, handling, or storage.
       (4) Location and other factors.--The Secretary may make 
     adjustments in the loan rate for quota peanuts for location 
     of peanuts and such other factors as are authorized by 
     section 104(i)(1).
       (b) Additional Peanuts.--
       (1) In general.--The Secretary shall make nonrecourse loans 
     available to producers of additional peanuts at such rates as 
     the Secretary finds appropriate, taking into consideration 
     the demand for peanut oil and peanut meal, expected prices of 
     other vegetable oils and protein meals, and the demand for 
     peanuts in foreign markets.
       (2) Announcement.--The Secretary shall announce the loan 
     rate for additional peanuts of each crop not later than 
     February 15 preceding the marketing year for the crop for 
     which the loan rate is being determined.
       (c) Area Marketing Associations.--
       (1) Warehouse storage loans.--
       (A) In general.--In carrying out subsections (a) and (b), 
     the Secretary shall make warehouse storage loans available in 
     each of the producing areas (described in section 1446.95 of 
     title 7 of the Code of Federal Regulations (January 1, 1989)) 
     to a designated area marketing association of peanut 
     producers that is selected and approved by the Secretary and 
     that is operated primarily for the purpose of conducting the 
     loan activities. The Secretary may not make warehouse storage 
     loans available to any cooperative that is engaged in 
     operations or activities concerning peanuts other than those 
     operations and activities specified in this section and 
     section 358e of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359a).
       (B) Administrative and supervisory activities.--An area 
     marketing association shall be used in administrative and 
     supervisory activities relating to loans and marketing 
     activities under this section and section 358e of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
     
[[Page S1199]]

       (C) Association costs.--Loans made to the association under 
     this paragraph shall include such costs as the area marketing 
     association reasonably may incur in carrying out the 
     responsibilities, operations, and activities of the 
     association under this section and section 358e of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
       (2) Pools for quota and additional peanuts.--
       (A) In general.--The Secretary shall require that each area 
     marketing association establish pools and maintain complete 
     and accurate records by area and segregation for quota 
     peanuts handled under loan and for additional peanuts placed 
     under loan, except that separate pools shall be established 
     for Valencia peanuts produced in New Mexico.
       (B) Eligibility to participate.--
       (i) In general.--Except as provided in clause (ii), in the 
     case of the 1996 and subsequent crops, Valencia peanuts not 
     physically produced in the State of New Mexico shall not be 
     eligible to participate in the pools of the State.
       (ii) Exception.--A resident of the State of New Mexico may 
     enter Valencia peanuts that are produced outside of the State 
     into the pools of the State in a quantity that is not greater 
     than the 1995 crop of the resident that was produced outside 
     the State.
       (C) Types of peanuts.--Bright hull and dark hull Valencia 
     peanuts shall be considered as separate types for the purpose 
     of establishing the pools.
       (D) Net gains.--Net gains on peanuts in each pool, unless 
     otherwise approved by the Secretary, shall be distributed 
     only to producers who placed peanuts in the pool and shall be 
     distributed in proportion to the value of the peanuts placed 
     in the pool by each producer. Net gains for peanuts in each 
     pool shall consist of the following:
       (i) Quota peanuts.--For quota peanuts, the net gains over 
     and above the loan indebtedness and other costs or losses 
     incurred on peanuts placed in the pool.
       (ii) Additional peanuts.--For additional peanuts, the net 
     gains over and above the loan indebtedness and other costs or 
     losses incurred on peanuts placed in the pool for additional 
     peanuts.
       (d) Losses.--Losses in quota area pools shall be covered 
     using the following sources in the following order of 
     priority:
       (1) Transfers from additional loan pools.--The proceeds due 
     any producer from any pool shall be reduced by the amount of 
     any loss that is incurred with respect to peanuts transferred 
     from an additional loan pool to a quota loan pool by the 
     producer under section 358-1(b)(8) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
       (2) Other producers in same pool.--Further losses in an 
     area quota pool shall be offset by reducing the gain of any 
     producer in the pool by the amount of pool gains attributed 
     to the same producer from the sale of additional peanuts for 
     domestic and export edible use.
       (3) Offset within area.--Further losses in an area quota 
     pool shall be offset by any gains or profits from additional 
     peanuts (other than separate type pools established under 
     subsection (c)(2)(A) for Valencia peanuts produced in New 
     Mexico) owned or controlled by the Commodity Credit 
     Corporation in that area and sold for domestic edible use, in 
     accordance with regulations issued by the Secretary.
       (4) Use of marketing assessments.--The Secretary shall use 
     funds collected under subsection (g) (except funds 
     attributable to handlers) to offset further losses in area 
     quota pools. The Secretary shall transfer to the Treasury 
     those funds collected under subsection (g) and available for 
     use under this subsection that the Secretary determines are 
     not required to cover losses in area quota pools.
       (5) Cross compliance.--Further losses in area quota pools, 
     other than losses incurred as a result of transfers from 
     additional loan pools to quota loan pools under section 358-
     1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1358-1(b)(8)), shall be offset by any gains or profits from 
     quota pools in other production areas (other than separate 
     type pools established under subsection (c)(2)(A) for 
     Valencia peanuts produced in New Mexico) in such manner as 
     the Secretary shall by regulation prescribe.
       (6) Offset generally.--If losses in an area quota pool have 
     not been entirely offset under paragraph (3), further losses 
     shall be offset by any gains or profits from additional 
     peanuts (other than separate type pools established under 
     subsection (c)(2)(A) for Valencia peanuts produced in New 
     Mexico) owned or controlled by the Commodity Credit 
     Corporation and sold for domestic edible use, in accordance 
     with regulations issued by the Secretary.
       (7) Increased assessments.--If use of the authorities 
     provided in the preceding paragraphs is not sufficient to 
     cover losses in an area quota pool, the Secretary shall 
     increase the marketing assessment established under 
     subsection (g) by such an amount as the Secretary considers 
     necessary to cover the losses. The increased assessment shall 
     apply only to quota peanuts in the production area covered by 
     the pool. Amounts collected under subsection (g) as a result 
     of the increased assessment shall be retained by the 
     Secretary to cover losses in that pool.
       (e) Disapproval of Quotas.--Notwithstanding any other 
     provision of law, no loan for quota peanuts may be made 
     available by the Secretary for any crop of peanuts with 
     respect to which poundage quotas have been disapproved by 
     producers, as provided for in section 358-1(d) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
       (f) Quality Improvement.--
       (1) In general.--With respect to peanuts under loan, the 
     Secretary shall--
       (A) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts of a lesser risk of 
     deterioration;
       (B) ensure that all Commodity Credit Corporation 
     inventories of peanuts sold for domestic edible use must be 
     shown to have been officially inspected by licensed 
     Department inspectors both as farmer stock and shelled or 
     cleaned in-shell peanuts;
       (C) continue to endeavor to operate the peanut program so 
     as to improve the quality of domestic peanuts and ensure the 
     coordination of activities under the Peanut Administrative 
     Committee established under Marketing Agreement No. 146, 
     regulating the quality of domestically produced peanuts 
     (under the Agricultural Adjustment Act (7 U.S.C. 601 et 
     seq.), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937); and
       (D) ensure that any changes made in the peanut program as a 
     result of this subsection requiring additional production or 
     handling at the farm level shall be reflected as an upward 
     adjustment in the Department loan schedule.
       (2) Exports and other peanuts.--The Secretary shall require 
     that all peanuts in the domestic and export markets fully 
     comply with all quality standards under Marketing Agreement 
     No. 146.
       (g) Marketing Assessment.--
       (1) In general.--The Secretary shall provide for a 
     nonrefundable marketing assessment. The assessment shall be 
     made on a per pound basis in an amount equal to 1.1 percent 
     for each of the 1994 and 1995 crops, 1.15 percent for the 
     1996 crop, and 1.2 percent for each of the 1997 through 2002 
     crops, of the national average quota or additional peanut 
     loan rate for the applicable crop.
       (2) First purchasers.--
       (A) In general.--Except as provided under paragraphs (3) 
     and (4), the first purchaser of peanuts shall--
       (i) collect from the producer a marketing assessment equal 
     to the quantity of peanuts acquired multiplied by--

       (I) in the case of each of the 1994 and 1995 crops, .55 
     percent of the applicable national average loan rate;
       (II) in the case of the 1996 crop, .6 percent of the 
     applicable national average loan rate; and
       (III) in the case of each of the 1997 through 2002 crops, 
     .65 percent of the applicable national average loan rate;

       (ii) pay, in addition to the amount collected under clause 
     (i), a marketing assessment in an amount equal to the 
     quantity of peanuts acquired multiplied by .55 percent of the 
     applicable national average loan rate; and
       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Definition of first purchaser.--In this subsection, the 
     term ``first purchaser'' means a person acquiring peanuts 
     from a producer except that in the case of peanuts forfeited 
     by a producer to the Commodity Credit Corporation, the term 
     means the person acquiring the peanuts from the Commodity 
     Credit Corporation.
       (3) Other private marketings.--In the case of a private 
     marketing by a producer directly to a consumer through a 
     retail or wholesale outlet or in the case of a marketing by 
     the producer outside of the continental United States, the 
     producer shall be responsible for the full amount of the 
     assessment and shall remit the assessment by such time as is 
     specified by the Secretary.
       (4) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a loan made under this section, \1/2\ of 
     the assessment shall be deducted from the proceeds of the 
     loan. The remainder of the assessment shall be paid by the 
     first purchaser of the peanuts. For purposes of computing net 
     gains on peanuts under this section, the reduction in loan 
     proceeds shall be treated as having been paid to the 
     producer.
       (5) Penalties.--If any person fails to collect or remit the 
     reduction required by this subsection or fails to comply with 
     the requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this subsection, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (A) the quantity of peanuts involved in the violation; by
       (B) the national average quota peanut rate for the 
     applicable crop year.
       (6) Enforcement.--The Secretary may enforce this subsection 
     in the courts of the United States.
       (h) Crops.--Subsections (a) through (f) shall be effective 
     only for the 1996 through 2002 crops of peanuts.
       (i) Marketing Quotas.--
       (1) In general.--Part VI of subtitle B of title III of the 
     Agricultural Adjustment Act of 1938 is amended--
       (A) in section 358-1 (7 U.S.C. 1358-1)--
       (i) in the section heading, by striking ``1991 THROUGH 1997 
     CROPS OF'';
       (ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), 
     (b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through 
     1997 marketing years'' each place it appears and inserting 
     ``marketing year'';
       (iii) in subsection (a)(3), by striking ``1990'' and 
     inserting ``1990, for the 1991 through 1995 

[[Page S1200]]
     marketing years, and 1995, for the 1996 through 2002 marketing years'';
       (iv) in subsection (b)(1)(A)--

       (I) by striking ``each of the 1991 through 1997 marketing 
     years'' and inserting ``each marketing year''; and
       (II) in clause (i), by inserting before the semicolon the 
     following: ``, in the case of the 1991 through 1995 marketing 
     years, and the 1995 marketing year, in the case of the 1996 
     through 2002 marketing years'';

       (v) in subsection (b)(1), by adding at the end the 
     following:
       ``(D) Certain farms ineligible for quota.--Effective 
     beginning with the 1997 marketing year, the Secretary shall 
     not establish a farm poundage quota under subparagraph (A) 
     for a farm owned or controlled by--
       ``(i) a municipality, airport authority, school, college, 
     refuge, or other public entity (other than a university used 
     for research purposes); or
       ``(ii) a person who is not a producer and resides in 
     another State.'';
       (vi) in subsection (b)(2), by adding at the end the 
     following:
       ``(E) Transfer of quota from ineligible farms.--Any farm 
     poundage quota held at the end of the 1996 marketing year by 
     a farm described in paragraph (1)(D) shall be allocated to 
     other farms in the same State on such basis as the Secretary 
     may by regulation prescribe.''; and
       (vii) in subsection (f), by striking ``1997'' and inserting 
     ``2002'';
       (B) in section 358b (7 U.S.C. 1358b)--
       (i) in the section heading, by striking ``1991 THROUGH 1995 
     CROPS OF''; and
       (ii) in subsection (c), by striking ``1995'' and inserting 
     ``2002'';
       (C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking 
     ``1995'' and inserting ``2002''; and
       (D) in section 358e (7 U.S.C. 1359a)--
       (i) in the section heading, by striking ``FOR 1991 THROUGH 
     1997 CROPS OF PEANUTS''; and
       (ii) in subsection (i), by striking ``1997'' and inserting 
     ``2002''.
       (2) Elimination of quota floor.--Section 358-1(a)(1) of the 
     Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second 
     sentence.
       (3) Temporary quota allocation.--Section 358-1 of the Act 
     (7 U.S.C. 1358-1) is amended--
       (A) in subsection (a)(1), by striking ``domestic edible, 
     seed,'' and inserting ``domestic edible use'';
       (B) in subsection (b)(2)--
       (i) in subparagraph (A), by striking ``subparagraph (B) and 
     subject to''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Temporary quota allocation.--
       ``(i) Allocation related to seed peanuts.--Temporary 
     allocation of quota pounds for the marketing year only in 
     which the crop is planted shall be made to producers for each 
     of the 1996 through 2002 marketing years as provided in this 
     subparagraph.
       ``(ii) Quantity.--The temporary quota allocation shall be 
     equal to the pounds of seed peanuts planted on the farm, as 
     may be adjusted under regulations prescribed by the 
     Secretary.
       ``(iii) Additional quota.--The temporary allocation of 
     quota pounds under this paragraph shall be in addition to the 
     farm poundage quota otherwise established under this 
     subsection and shall be credited, for the applicable 
     marketing year only, in total to the producer of the peanuts 
     on the farm in a manner prescribed by the Secretary.
       ``(iv) Effect of other requirements.--Nothing in this 
     section alters or changes the requirements regarding the use 
     of quota and additional peanuts established by section 
     358e(b).''; and
       (C) in subsection (e)(3), strike ``and seed and use on a 
     farm''.
       (4) Undermarketings.--Part VI of subtitle B of title III of 
     the Act is amended--
       (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
       (i) in paragraph (1)(B), by striking ``including--'' and 
     clauses (i) and (ii) and inserting ``including any increases 
     resulting from the allocation of quotas voluntarily released 
     for 1 year under paragraph (7).'';
       (ii) in paragraph (3)(B), by striking ``include--'' and 
     clauses (i) and (ii) and inserting ``include any increase 
     resulting from the allocation of quotas voluntarily released 
     for 1 year under paragraph (7).''; and
       (iii) by striking paragraphs (8) and (9); and
       (B) in section 358b(a) (7 U.S.C. 1358b(a))--
       (i) in paragraph (1), by striking ``(including any 
     applicable under marketings)'' both places it appears;
       (ii) in paragraph (1)(A), by striking ``of undermarketings 
     and'';
       (iii) in paragraph (2), by striking ``(including any 
     applicable under marketings)''; and
       (iv) in paragraph (3), by striking ``(including any 
     applicable undermarketings)''.
       (5) Disaster transfers.--Section 358-1(b) of the Act (7 
     U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is 
     further amended by adding at the end the following:
       ``(8) Disaster transfers.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     additional peanuts produced on a farm from which the quota 
     poundage was not harvested and marketed because of drought, 
     flood, or any other natural disaster, or any other condition 
     beyond the control of the producer, may be transferred to the 
     quota loan pool for pricing purposes on such basis as the 
     Secretary shall by regulation provide.
       ``(B) Limitation.--The poundage of peanuts transferred 
     under subparagraph (A) shall not exceed the difference 
     between--
       ``(i) the total quantity of peanuts meeting quality 
     requirements for domestic edible use, as determined by the 
     Secretary, marketed from the farm; and
       ``(ii) the total farm poundage quota, excluding quota 
     pounds transferred to the farm in the fall.
       ``(C) Support rate.--Peanuts transferred under this 
     paragraph shall be supported at not more than 70 percent of 
     the quota support rate for the marketing years in which the 
     transfers occur. The transfers for a farm shall not exceed 25 
     percent of the total farm quota pounds, excluding pounds 
     transferred in the fall.''.

     SEC. 107. SUGAR PROGRAM.

       (a) Sugarcane.--The Secretary shall make loans available to 
     processors of domestically grown sugarcane at a rate equal to 
     18 cents per pound for raw cane sugar.
       (b) Sugar Beets.--The Secretary shall make loans available 
     to processors of domestically grown sugar beets at a rate 
     equal to 22.9 cents per pound for refined beet sugar.
       (c) Term of Loans.--
       (1) In general.--Loans under this section during any fiscal 
     year shall be made available not earlier than the beginning 
     of the fiscal year and shall mature at the earlier of--
       (A) the end of 9 months; or
       (B) the end of the fiscal year.
       (2) Supplemental loans.--In the case of loans made under 
     this section in the last 3 months of a fiscal year, the 
     processor may repledge the sugar as collateral for a second 
     loan in the subsequent fiscal year, except that the second 
     loan shall--
       (A) be made at the loan rate in effect at the time the 
     second loan is made; and
       (B) mature in 9 months less the quantity of time that the 
     first loan was in effect.
       (d) Loan Type; Processor Assurances.--
       (1) Recourse loans.--Subject to paragraph (2), the 
     Secretary shall carry out this section through the use of 
     recourse loans.
       (2) Nonrecourse loans.--During any fiscal year in which the 
     tariff rate quota for imports of sugar into the United States 
     is established at, or is increased to, a level in excess of 
     1,500,000 short tons raw value, the Secretary shall carry out 
     this section by making available nonrecourse loans. Any 
     recourse loan previously made available by the Secretary 
     under this section during the fiscal year shall be changed by 
     the Secretary into a nonrecourse loan.
       (3) Processor assurances.--If the Secretary is required 
     under paragraph (2) to make nonrecourse loans available 
     during a fiscal year or to change recourse loans into 
     nonrecourse loans, the Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for sugar beets and sugarcane delivered by 
     producers served by the processor. The Secretary may 
     establish appropriate minimum payments for purposes of this 
     paragraph.
       (e) Marketing Assessment.--
       (1) Sugarcane.--Effective for marketings of raw cane sugar 
     during the 1996 through 2003 fiscal years, the first 
     processor of sugarcane shall remit to the Commodity Credit 
     Corporation a nonrefundable marketing assessment in an amount 
     equal to--
       (A) in the case of marketings during fiscal year 1996, 1.1 
     percent of the loan rate established under subsection (a) per 
     pound of raw cane sugar, processed by the processor from 
     domestically produced sugarcane or sugarcane molasses, that 
     has been marketed (including the transfer or delivery of the 
     sugar to a refinery for further processing or marketing); and
       (B) in the case of marketings during each of fiscal years 
     1997 through 2003, 1.375 percent of the loan rate established 
     under subsection (a) per pound of raw cane sugar, processed 
     by the processor from domestically produced sugarcane or 
     sugarcane molasses, that has been marketed (including the 
     transfer or delivery of the sugar to a refinery for further 
     processing or marketing).
       (2) Sugar beets.--Effective for marketings of beet sugar 
     during the 1996 through 2003 fiscal years, the first 
     processor of sugar beets shall remit to the Commodity Credit 
     Corporation a nonrefundable marketing assessment in an amount 
     equal to--
       (A) in the case of marketings during fiscal year 1996, 
     1.1794 percent of the loan rate established under subsection 
     (a) per pound of beet sugar, processed by the processor from 
     domestically produced sugar beets or sugar beet molasses, 
     that has been marketed; and
       (B) in the case of marketings during each of fiscal years 
     1997 through 2003, 1.47425 percent of the loan rate 
     established under subsection (a) per pound of beet sugar, 
     processed by the processor from domestically produced sugar 
     beets or sugar beet molasses, that has been marketed.
       (3) Collection.--
       (A) Timing.--A marketing assessment required under this 
     subsection shall be collected on a monthly basis and shall be 
     remitted to the Commodity Credit Corporation not later than 
     30 days after the end of each month. Any cane sugar or beet 
     sugar processed during a fiscal year that has not been 
     marketed by September 30 of the year shall be subject to 
     assessment on that date. The sugar shall not be subject to a 
     second assessment at the time that it is marketed.
       (B) Manner.--Subject to subparagraph (A), marketing 
     assessments shall be collected 

[[Page S1201]]
     under this subsection in the manner prescribed by the Secretary and 
     shall be nonrefundable.
       (4) Penalties.--If any person fails to remit the assessment 
     required by this subsection or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this subsection, the person 
     shall be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of cane sugar or beet sugar involved in 
     the violation; by
       (B) the loan rate for the applicable crop of sugarcane or 
     sugar beets.
       (5) Enforcement.--The Secretary may enforce this subsection 
     in a court of the United States.
       (f) Forfeiture Penalty.--
       (1) In general.--A penalty shall be assessed on the 
     forfeiture of any sugar pledged as collateral for a 
     nonrecourse loan under this section.
       (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
     per pound.
       (3) Beet sugar.--The penalty for beet sugar shall bear the 
     same relation to the penalty for cane sugar as the marketing 
     assessment for sugar beets bears to the marketing assessment 
     for sugarcane.
       (4) Effect of forfeiture.--Any payments owed producers by a 
     processor that forfeits of any sugar pledged as collateral 
     for a nonrecourse loan shall be reduced in proportion to the 
     loan forfeiture penalty incurred by the processor.
       (g) Information Reporting.--
       (1) Duty of processors and refiners to report.--A sugarcane 
     processor, cane sugar refiner, and sugar beet processor shall 
     furnish the Secretary, on a monthly basis, such information 
     as the Secretary may require to administer sugar programs, 
     including the quantity of purchases of sugarcane, sugar 
     beets, and sugar, and production, importation, distribution, 
     and stock levels of sugar.
       (2) Penalty.--Any person willfully failing or refusing to 
     furnish the information, or furnishing willfully any false 
     information, shall be subject to a civil penalty of not more 
     than $10,000 for each such violation.
       (3) Monthly reports.--Taking into consideration the 
     information received under paragraph (1), the Secretary shall 
     publish on a monthly basis composite data on production, 
     imports, distribution, and stock levels of sugar.
       (h) Crops.--This section shall be effective only for the 
     1996 through 2002 crops of sugar beets and sugarcane.

     SEC. 108. ADMINISTRATION.

       (a) Commodity Credit Corporation.--
       (1) Use of corporation.--The Secretary shall carry out this 
     title through the Commodity Credit Corporation.
       (2) Salaries and expenses.--No funds of the Corporation 
     shall be used for any salary or expense of any officer or 
     employee of the Department of Agriculture.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title or the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1281 et seq.) shall be final and 
     conclusive.
       (c) Regulations.--The Secretary may issue such regulations 
     as the Secretary determines necessary to carry out this 
     title.

     SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AUTHORITIES.

       (a) Agricultural Adjustment Act of 1938.--
       (1) In general.--The following provisions of the 
     Agricultural Adjustment Act of 1938 shall not be applicable 
     to the 1996 through 2002 crops:
       (A) Parts II through V of subtitle B of title III (7 U.S.C. 
     1326-1351).
       (B) Subsections (a) through (j) of section 358 (7 U.S.C. 
     1358).
       (C) Subsections (a) through (h) of section 358a (7 U.S.C. 
     1358a).
       (D) Subsections (a), (b), (d), and (e) of section 358d (7 
     U.S.C. 1359).
       (E) Part VII of subtitle B of title III (7 U.S.C. 1359aa-
     1359jj).
       (F) In the case of peanuts, part I of subtitle C of title 
     III (7 U.S.C. 1361-1368).
       (G) In the case of upland cotton, section 377 (7 U.S.C. 
     1377).
       (H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
       (I) Title IV (7 U.S.C. 1401-1407).
       (2) Reports and records.--Effective only for the 1996 
     through 2002 crops of peanuts, the first sentence of section 
     373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1373(a)) is amended by inserting before ``all brokers and 
     dealers in peanuts'' the following: ``all producers engaged 
     in the production of peanuts,''.
       (b) Agricultural Act of 1949.--
       (1) Suspensions.--The following provisions of the 
     Agricultural Act of 1949 shall not be applicable to the 1996 
     through 2002 crops:
       (A) Section 101 (7 U.S.C. 1441).
       (B) Section 103(a) (7 U.S.C. 1444(a)).
       (C) Section 105 (7 U.S.C. 1444b).
       (D) Section 107 (7 U.S.C. 1445a).
       (E) Section 110 (7 U.S.C. 1445e).
       (F) Section 112 (7 U.S.C. 1445g).
       (G) Section 115 (7 U.S.C. 1445k).
       (H) Title III (7 U.S.C. 1447-1449).
       (I) Title IV (7 U.S.C. 1421-1433d), other than sections 
     404, 406, 412, 416, and 427 (7 U.S.C. 1424, 1426, 1429, 1431, 
     and 1433f).
       (J) Title V (7 U.S.C. 1461-1469).
       (K) Title VI (7 U.S.C. 1471-1471j).
       (2) Repeals.--The following provisions of the Agricultural 
     Act of 1949 are repealed:
       (A) Section 103B (7 U.S.C. 1444-2).
       (B) Section 108B (7 U.S.C. 1445c-3).
       (C) Section 113 (7 U.S.C. 1445h).
       (D) Section 114(b) (7 U.S.C. 1445j(b)).
       (E) Sections 205, 206, and 207 (7 U.S.C. 1446f, 1446g, and 
     1446h).
       (F) Section 406 (7 U.S.C. 1426).
       (c) Suspension of Certain Quota Provisions.--The joint 
     resolution entitled ``A joint resolution relating to corn and 
     wheat marketing quotas under the Agricultural Adjustment Act 
     of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 
     and 1340), shall not be applicable to the crops of wheat 
     planted for harvest in the calendar years 1996 through 2002.

     SEC. 110. EFFECT OF AMENDMENTS.

       (a) Effect on Prior Crops.--Except as otherwise 
     specifically provided and notwithstanding any other provision 
     of law, this title and the amendments made by this title 
     shall not affect the authority of the Secretary to carry out 
     a price support or production adjustment program for any of 
     the 1991 through 1995 crops of an agricultural commodity 
     established under a provision of law in effect immediately 
     before the date of the enactment of this Act.
       (b) Liability.--A provision of this title or an amendment 
     made by this title shall not affect the liability of any 
     person under any provision of law as in effect before the 
     date of the enactment of this Act.
                      TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance 
                    Act of 1954 and Related Statutes

     SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

       (a) In General.--Section 3 of the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691a) is 
     amended to read as follows:

     ``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

       ``(a) Policy.--In light of the Uruguay Round Agreement on 
     Agriculture and the Ministerial Decision on Measures 
     Concerning the Possible Negative Effects of the Reform 
     Program on Least-Developed and Net-Food Importing Developing 
     Countries, the United States reaffirms the commitment of the 
     United States to providing food aid to developing countries.
       ``(b) Sense of congress.--It is the sense of Congress 
     that--
       ``(1) the President should initiate consultations with 
     other donor nations to consider appropriate levels of food 
     aid commitments to meet the legitimate needs of developing 
     countries; and
       ``(2) the United States should increase its contribution of 
     bona fide food assistance to developing countries consistent 
     with the Agreement on Agriculture.''.
       (b) Conforming Amendment.--Section 411 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3611) is amended by striking 
     subsection (e).

     SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

       Section 101 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1701) is amended--
       (1) by striking ``developing countries'' each place it 
     appears and inserting ``developing countries and private 
     entities''; and
       (2) in subsection (b), by inserting ``and entities'' before 
     the period at the end.

     SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE 
                   ENTITIES.

       Section 102 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as 
     follows:

     ``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND 
                   PRIVATE ENTITIES.

       ``(a) Priority.--In selecting agreements to be entered into 
     under this title, the Secretary shall give priority to 
     agreements providing for the export of agricultural 
     commodities to developing countries that--
       ``(1) have the demonstrated potential to become commercial 
     markets for competitively priced United States agricultural 
     commodities;
       ``(2) are undertaking measures for economic development 
     purposes to improve food security and agricultural 
     development, alleviate poverty, and promote broad-based 
     equitable and sustainable development; and
       ``(3) demonstrate the greatest need for food.
       ``(b) Private Entities.--An agreement entered into under 
     this title with a private entity shall require such security, 
     or such other provisions as the Secretary determines 
     necessary, to provide reasonable and adequate assurance of 
     repayment of the financing extended to the private entity.
       ``(c) Agricultural Market Development Plan.--
       ``(1) Definition of agricultural trade organization.--In 
     this subsection, the term `agricultural trade organization' 
     means a United States agricultural trade organization that 
     promotes the export and sale of a United States agricultural 
     commodity and that does not stand to profit directly from the 
     specific sale of the commodity.
       ``(2) Plan.--The Secretary shall consider a developing 
     country for which an agricultural market development plan has 
     been approved under this subsection to have the demonstrated 
     potential to become a commercial market for competitively 
     priced United States agricultural commodities for the purpose 
     of granting a priority under subsection (a).
       ``(3) Requirements.--
       ``(A) In general.--To be approved by the Secretary, an 
     agricultural market development plan shall--
       ``(i) be submitted by a developing country or private 
     entity, in conjunction with an agricultural trade 
     organization;
     
[[Page S1202]]

       ``(ii) describe a project or program for the development 
     and expansion of a United States agricultural commodity 
     market in a developing country, and the economic development 
     of the country, using funds derived from the sale of 
     agricultural commodities received under an agreement 
     described in section 101;
       ``(iii) provide for any matching funds that are required by 
     the Secretary for the project or program;
       ``(iv) provide for a results-oriented means of measuring 
     the success of the project or program; and
       ``(v) provide for graduation to the use of non-Federal 
     funds to carry out the project or program, consistent with 
     requirements established by the Secretary.
       ``(B) Agricultural trade organization.--The project or 
     program shall be designed and carried out by the agricultural 
     trade organization.
       ``(C) Additional requirements.--An agricultural market 
     development plan shall contain such additional requirements 
     as are determined necessary by the Secretary.
       ``(4) Administrative costs.--
       ``(A) In general.--The Secretary shall make funds made 
     available to carry out this title available for the 
     reimbursement of administrative expenses incurred by 
     agricultural trade organizations in developing, implementing, 
     and administering agricultural market development plans, 
     subject to such requirements and in such amounts as the 
     Secretary considers appropriate.
       ``(B) Duration.--The funds shall be made available to 
     agricultural trade organizations for the duration of the 
     applicable agricultural market development plan.
       ``(C) Termination.--The Secretary may terminate assistance 
     made available under this subsection if the agricultural 
     trade organization is not carrying out the approved 
     agricultural market development plan.''.

     SEC. 204. TERMS AND CONDITIONS OF SALES.

       Section 103 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1703) is amended--
       (1) in subsection (a)(2)(A)--
       (A) by striking ``a recipient country to make''; and
       (B) by striking ``such country'' and inserting ``the 
     appropriate country'';
       (2) in subsection (c), by striking ``less than 10 nor''; 
     and
       (3) in subsection (d)--
       (A) by striking ``recipient country'' and inserting 
     ``developing country or private entity''; and
       (B) by striking ``7'' and inserting ``5''.

     SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

       Section 104 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1704) is amended--
       (1) in subsection (a), by striking ``recipient country'' 
     and inserting ``developing country or private entity''; and
       (2) in subsection (c)--
       (A) by striking ``recipient country'' each place it appears 
     and inserting ``appropriate developing country''; and
       (B) in paragraph (3), by striking ``recipient countries'' 
     and inserting ``appropriate developing countries''.

     SEC. 206. VALUE-ADDED FOODS.

       Section 105 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1705) is repealed.

     SEC. 207. ELIGIBLE ORGANIZATIONS.

       (a) In General.--Section 202 of the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1722) is 
     amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Nonemergency Assistance.--
       ``(1) In general.--The Administrator may provide 
     agricultural commodities for nonemergency assistance under 
     this title through eligible organizations (as described in 
     subsection (d)) that have entered into an agreement with the 
     Administrator to use the commodities in accordance with this 
     title.
       ``(2) Limitation.--The Administrator may not deny a request 
     for funds submitted under this subsection because the program 
     for which the funds are requested--
       ``(A) would be carried out by the eligible organization in 
     a foreign country in which the Agency for International 
     Development does not have a mission, office, or other 
     presence; or
       ``(B) is not part of a development plan for the country 
     prepared by the Agency.''; and
       (2) in subsection (e)--
       (A) in the subsection heading, by striking ``Private 
     Voluntary Organizations and Cooperatives'' and inserting 
     ``Eligible Organizations'';
       (B) in paragraph (1)--
       (i) by striking ``$13,500,000'' and inserting 
     ``$28,000,000''; and
       (ii) by striking ``private voluntary organizations and 
     cooperatives to assist such organizations and cooperatives'' 
     and inserting ``eligible organizations described in 
     subsection (d), to assist the organizations'';
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Request for funds.--To receive funds made available 
     under paragraph (1), a private voluntary organization or 
     cooperative shall submit a request for the funds that is 
     subject to approval by the Administrator.''; and
       (D) in paragraph (3), by striking ``a private voluntary 
     organization or cooperative, the Administrator may provide 
     assistance to that organization or cooperative'' and 
     inserting ``an eligible organization, the Administrator may 
     provide assistance to the eligible organization''.
       (b) Conforming Amendments.--Section 207 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) 
     is amended--
       (1) in subsection (a), by striking ``a private voluntary 
     organization or cooperative'' and inserting ``an eligible 
     organization''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``private voluntary 
     organizations and cooperatives'' and inserting ``eligible 
     organizations''; and
       (B) in paragraph (2), by striking ``organizations, 
     cooperatives,'' and inserting ``eligible organizations''.

     SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

       Section 203 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1723) is amended--
       (1) in subsection (a), by inserting ``, or in a country in 
     the same region,'' after ``in the recipient country'';
       (2) in subsection (b)--
       (A) by inserting ``or in countries in the same region,'' 
     after ``in recipient countries,''; and
       (B) by striking ``10 percent'' and inserting ``15 
     percent'';
       (3) in subsection (c), by inserting ``or in a country in 
     the same region,'' after ``in the recipient country,''; and
       (4) in subsection (d)(2), by inserting ``or within a 
     country in the same region'' after ``within the recipient 
     country''.

     SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

       Section 204(a) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--
       (1) in paragraph (1), by striking ``amount that'' and all 
     that follows through the period at the end and inserting 
     ``amount that for each of fiscal years 1996 through 2002 is 
     not less than 2,025,000 metric tons.'';
       (2) in paragraph (2), by striking ``amount that'' and all 
     that follows through the period at the end and inserting 
     ``amount that for each of fiscal years 1996 through 2002 is 
     not less than 1,550,000 metric tons.''; and
       (3) in paragraph (3), by adding at the end the following: 
     ``No waiver shall be made before the beginning of the 
     applicable fiscal year.''.

     SEC. 210. FOOD AID CONSULTATIVE GROUP.

       Section 205 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1725) is amended--
       (1) in subsection (a), by striking ``private voluntary 
     organizations, cooperatives and indigenous non-governmental 
     organizations'' and inserting ``eligible organizations 
     described in section 202(d)(1)'';
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``for International 
     Affairs and Commodity Programs'' and inserting ``of 
     Agriculture for Farm and Foreign Agricultural Services'';
       (B) in paragraph (4), by striking ``and'' at the end;
       (C) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(6) representatives from agricultural producer groups in 
     the United States.'';
       (3) in the second sentence of subsection (d), by inserting 
     ``(but at least twice per year)'' after ``when appropriate''; 
     and
       (4) in subsection (f), by striking ``1995'' and inserting 
     ``2002''.

     SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

       (a) In General.--Section 306(b) of the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is 
     amended--
       (1) in the subsection heading, by striking ``Indigenous 
     Non-Governmental'' and inserting ``Nongovernmental''; and
       (2) by striking ``utilization of indigenous'' and inserting 
     ``utilization of''.
       (b) Conforming Amendment.--Section 402 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1732) 
     is amended by striking paragraph (6) and inserting the 
     following:
       ``(6) Nongovernmental organization.--The term 
     `nongovernmental organization' means an organization that 
     works at the local level to solve development problems in a 
     foreign country in which the organization is located, except 
     that the term does not include an organization that is 
     primarily an agency or instrumentality of the government of 
     the foreign country.''.

     SEC. 212. COMMODITY DETERMINATIONS.

       Section 401 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1731) is amended--
       (1) by striking subsections (a) through (d) and inserting 
     the following:
       ``(a) Availability of Commodities.--No agricultural 
     commodity shall be available for disposition under this Act 
     if the Secretary determines that the disposition would reduce 
     the domestic supply of the commodity below the supply needed 
     to meet domestic requirements and provide adequate carryover 
     (as determined by the Secretary), unless the Secretary 
     determines that some part of the supply should be used to 
     carry out urgent humanitarian purposes under this Act.'';
       (2) by redesignating subsections (e) and (f) as subsections 
     (b) and (c), respectively; and
       (3) in subsection (c) (as so redesignated), by striking 
     ``(e)(1)'' and inserting ``(b)(1)''.

     SEC. 213. GENERAL PROVISIONS.

       Section 403 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1733) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by striking 
     ``Consultations'' and inserting ``Impact on Local Farmers and 
     Economy''; and
     
[[Page S1203]]

       (B) by striking ``consult with'' and all that follows 
     through ``other donor organizations to'';
       (2) in subsection (c)--
       (A) by striking ``from countries''; and
       (B) by striking ``for use'' and inserting ``or use'';
       (3) in subsection (f)--
       (A) by inserting ``or private entities, as appropriate,'' 
     after ``from countries''; and
       (B) by inserting ``or private entities'' after ``such 
     countries''; and
       (4) in subsection (i)(2), by striking subparagraph (C).

     SEC. 214. AGREEMENTS.

       Section 404 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1734) is amended--
       (1) in subsection (a), by inserting ``with foreign 
     countries'' after ``Before entering into agreements'';
       (2) in subsection (b)(2)--
       (A) by inserting ``with foreign countries'' after ``with 
     respect to agreements entered into''; and
       (B) by inserting before the semicolon at the end the 
     following: ``and broad-based economic growth''; and
       (3) in subsection (c), by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--Agreements to provide assistance on a 
     multi-year basis to recipient countries or to eligible 
     organizations--
       ``(A) may be made available under titles I and III; and
       ``(B) shall be made available under title II.''.

     SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

       Section 406 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736) is amended--
       (1) in subsection (a), by striking ``shall'' and inserting 
     ``may''; and
       (2) in subsection (b)--
       (A) by inserting ``titles II and III of'' after 
     ``commodities made available under''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) the vessel freight charges from United States ports 
     or designated Canadian transshipment ports, as determined by 
     the Secretary, to designated ports of entry abroad;''.

     SEC. 216. ADMINISTRATIVE PROVISIONS.

       Section 407 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736a) is amended--
       (1) in subsection (a)--
       (A) in paragraph(1), by inserting ``or private entity that 
     enters into an agreement under title I'' after ``importing 
     country''; and
       (B) in paragraph (2), by adding at the end the following: 
     ``Resulting contracts may contain such terms and conditions 
     as the Secretary determines are necessary and appropriate.'';
       (2) in subsection (c)--
       (A) in paragraph (1)(A), by inserting ``importer or'' 
     before ``importing country''; and
       (B) in paragraph (2)(A), by inserting ``importer or'' 
     before ``importing country'';
       (3) in subsection (d)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Freight procurement.--Notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.) or other similar provisions of law relating to 
     the making or performance of Federal Government contracts, 
     ocean transportation under titles II and III may be procured 
     on the basis of such full and open competitive procedures. 
     Resulting contracts may contain such terms and conditions, as 
     the Administrator determines are necessary and 
     appropriate.''; and
       (B) by striking paragraph (4);
       (4) in subsection (g)(2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) an assessment of the progress towards achieving food 
     security in each country receiving food assistance from the 
     United States Government, with special emphasis on the 
     nutritional status of the poorest populations in each 
     country.''; and
       (5) by striking subsection (h).

     SEC. 217. EXPIRATION DATE.

       Section 408 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736b) is amended by 
     striking ``1995'' and inserting ``2002''.

     SEC. 218. REGULATIONS.

       Section 409 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.

     SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

       Section 410 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

     SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

       Section 412 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736f) is amended--
       (1) by striking subsections (b) and (c) and inserting the 
     following:
       ``(b) Transfer of Funds.--Notwithstanding any other 
     provision of law, the President may direct that--
       ``(1) up to 15 percent of the funds available for any 
     fiscal year for carrying out any title of this Act be used to 
     carry out any other title of this Act; and
       ``(2) any funds available for title III be used to carry 
     out title II.''; and
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.

     SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

       Section 413 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736g) is amended by 
     inserting ``title III of'' before ``this Act'' each place it 
     appears.

     SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

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

     ``SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

       ``(a) In General.--Not later than September 30, 1997, the 
     Secretary, in consultation with the Administrator, shall 
     establish a micronutrient fortification pilot program under 
     this Act. The purposes of the program shall be to--
       ``(1) assist developing countries in correcting 
     micronutrient dietary deficiencies among segments of the 
     populations of the countries; and
       ``(2) encourage the development of technologies for the 
     fortification of whole grains and other commodities that are 
     readily transferable to developing countries.
       ``(b) Selection of Participating Countries.--From among the 
     countries eligible for assistance under this Act, the 
     Secretary may select not more than 5 developing countries to 
     participate in the pilot program.
       ``(c) Fortification.--Under the pilot program, whole grains 
     and other commodities made available to a developing country 
     selected to participate in the pilot program may be fortified 
     with 1 or more micronutrients (including vitamin A, iron, and 
     iodine) with respect to which a substantial portion of the 
     population in the country are deficient. The commodity may be 
     fortified in the United States or in the developing country.
       ``(d) Termination of Authority.--The authority to carry out 
     the pilot program established under this section shall 
     terminate on September 30, 2002.''.

     SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

       Title IV of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amended by 
     section 222) is further amended by adding at the end the 
     following:

     ``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

       ``Local currency payments received by the United States 
     pursuant to agreements entered into under title I (as in 
     effect on November 27, 1990) may be utilized by the Secretary 
     in accordance with section 108 (as in effect on November 27, 
     1990).''.

     SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO-FARMER 
                   PROGRAM.

       Section 501 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1737) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (4) through (6) as 
     paragraphs (5) through (7), respectively; and
       (B) by inserting after paragraph (3) the following:
       ``(4) assist the travel of farmers and other agricultural 
     professionals from developing countries, middle income 
     countries, and emerging democracies to the United States for 
     educational purposes consistent with the objectives of this 
     section;''; and
       (2) in subsection (c), by striking ``1991 through 1995'' 
     and inserting ``1996 through 2002''.

     SEC. 225. FOOD SECURITY COMMODITY RESERVE.

       (a) In General.--Title III of the Agricultural Act of 1980 
     (7 U.S.C. 1736f-1 et seq.) is amended to read as follows:
              ``TITLE III--FOOD SECURITY COMMODITY RESERVE

     ``SEC. 301. SHORT TITLE.

       ``This title may be cited as the `Food Security Commodity 
     Reserve Act of 1996'.

     ``SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

       ``(a) In General.--To provide for a reserve solely to meet 
     emergency humanitarian food needs in developing countries, 
     the Secretary of Agriculture (referred to in this title as 
     the `Secretary') shall establish a reserve stock of wheat, 
     rice, corn, or sorghum, or any combination of the 
     commodities, totalling not more than 4,000,000 metric tons 
     for use as described in subsection (c).
       ``(b) Commodities in Reserve.--
       ``(1) In general.--The reserve established under this 
     section shall consist of--
       ``(A) wheat in the reserve established under the Food 
     Security Wheat Reserve Act of 1980 as of the effective date 
     of the Agricultural Reform and Improvement Act of 1996;
       ``(B) wheat, rice, corn, and sorghum (referred to in this 
     section as `eligible commodities') acquired in accordance 
     with paragraph (2) to replenish eligible commodities released 
     from the reserve, including wheat to replenish wheat released 
     from the reserve established under the Food Security Wheat 
     Reserve Act of 1980 but not replenished as of the effective 
     date of the Agricultural Reform and Improvement Act of 1996; 
     and
       ``(C) such rice, corn, and sorghum as the Secretary may, at 
     such time and in such manner as the Secretary determines 
     appropriate, acquire as a result of exchanging an equivalent 
     value of wheat in the reserve established under this section.
       ``(2) Replenishment of reserve.--
       ``(A) In general.--Subject to subsection (i), commodities 
     of equivalent value to eligible commodities in the reserve 
     established under this section may be acquired--
     
[[Page S1204]]

       ``(i) through purchases--

       ``(I) from producers; or
       ``(II) in the market, if the Secretary determines that the 
     purchases will not unduly disrupt the market; or

       ``(ii) by designation by the Secretary of stocks of 
     eligible commodities of the Commodity Credit Corporation.
       ``(B) Funds.--Any use of funds to acquire eligible 
     commodities through purchases from producers or in the market 
     to replenish the reserve must be authorized in an 
     appropriation Act.
       ``(c) Release of Eligible Commodities.--
       ``(1) Emergency food assistance.--Notwithstanding any other 
     law, eligible commodities designated or acquired for the 
     reserve established under this section may be released by the 
     Secretary to provide, on a donation or sale basis, emergency 
     food assistance to developing countries at such time as the 
     domestic supply of the eligible commodities is so limited 
     that quantities of the eligible commodities cannot be made 
     available for disposition under the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.) (other than disposition for urgent humanitarian 
     purposes under section 401 of the Act (7 U.S.C. 1731)).
       ``(2) Provision of urgent humanitarian relief.--
       ``(A) In general.--Notwithstanding paragraph (1), eligible 
     commodities may be released from the reserve established 
     under this section for any fiscal year, without regard to the 
     availability of domestic supply, for use under title II of 
     the Agricultural Trade Development Assistance Act of 1954 (7 
     U.S.C. 1721 et seq.) in providing urgent humanitarian relief 
     in any developing country suffering a major disaster (as 
     determined by the Secretary) in accordance with this 
     paragraph.
       ``(B) Exceptional need.--If the eligible commodities needed 
     for relief cannot be made available for relief in a timely 
     manner under the normal means of obtaining eligible 
     commodities for food assistance because of circumstances of 
     unanticipated and exceptional need, up to 500,000 metric tons 
     of eligible commodities may be released under subparagraph 
     (A).
       ``(C) Funds.--If the Secretary certifies that the funds 
     made available for a fiscal year to carry out title II of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1721 et seq.) are not less than the funds made 
     available for the previous fiscal year, up to 1,000,000 
     metric tons of eligible commodities may be released under 
     subparagraph (A).
       ``(D) Waiver of minimum tonnage requirements.--Nothing in 
     this paragraph shall require the exercise of the waiver under 
     section 204(a)(3) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 5624(a)(3)) as a 
     prerequisite for the release of eligible commodities under 
     this paragraph.
       ``(E) Limitation.--The quantity of eligible commodities 
     released under this paragraph may not exceed 1,000,000 metric 
     tons in any fiscal year.
       ``(3) Processing of eligible commodities.--Eligible 
     commodities that are released from the reserve established 
     under this section may be processed in the United States and 
     shipped to a developing country when conditions in the 
     recipient country require processing.
       ``(4) Exchange.--The Secretary may exchange an eligible 
     commodity for another United States commodity of equal value, 
     including powdered milk, pulses, and vegetable oil.
       ``(d) Use of Eligible Commodities.--Eligible commodities 
     that are released from the reserve established under this 
     section for the purpose of subsection (c) shall be made 
     available under the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1691 et seq.) to meet famine 
     or other urgent or extraordinary relief needs, except that 
     section 401 of the Act (7 U.S.C. 1731), with respect to 
     determinations of availability, shall not be applicable to 
     the release.
       ``(e) Management of Eligible Commodities.--The Secretary 
     shall provide--
       ``(1) for the management of eligible commodities in the 
     reserve established under this section as to location and 
     quality of eligible commodities needed to meet emergency 
     situations; and
       ``(2) for the periodic rotation or replacement of stocks of 
     eligible commodities in the reserve to avoid spoilage and 
     deterioration of the commodities.
       ``(f) Treatment of Reserve Under Other Law.--Eligible 
     commodities in the reserve established under this section 
     shall not be--
       ``(1) considered a part of the total domestic supply 
     (including carryover) for the purpose of subsection (c) or 
     for the purpose of administering the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.); and
       ``(2) subject to any quantitative limitation on exports 
     that may be imposed under section 7 of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2406).
       ``(g) Use of Commodity Credit Corporation.--
       ``(1) In general.--Subject to the limitations provided in 
     this section, the funds, facilities, and authorities of the 
     Commodity Credit Corporation shall be used by the Secretary 
     in carrying out this section, except that any restriction 
     applicable to the acquisition, storage, or disposition of 
     eligible commodities owned or controlled by the Commodity 
     Credit Corporation shall not apply.
       ``(2) Reimbursement.--
       ``(A) In general.--The Commodity Credit Corporation shall 
     be reimbursed for the release of eligible commodities from 
     funds made available to carry out the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.).
       ``(B) Basis for reimbursement.--The reimbursement shall be 
     made on the basis of the lesser of--
       ``(i) the actual costs incurred by the Commodity Credit 
     Corporation with respect to the eligible commodity; or
       ``(ii) the export market price of the eligible commodity 
     (as determined by the Secretary) as of the time the eligible 
     commodity is released from the reserve for the purpose.
       ``(C) Source of funds.--The reimbursement may be made from 
     funds appropriated for the purpose of reimbursement in 
     subsequent fiscal years.
       ``(h) Finality of Determination.--Any determination by the 
     Secretary under this section shall be final.
       ``(i) Termination of Authority.--
       ``(1) In general.--The authority to replenish stocks of 
     eligible commodities to maintain the reserve established 
     under this section shall terminate on September 30, 2002.
       ``(2) Disposal of eligible commodities.--Eligible 
     commodities remaining in the reserve after September 30, 
     2002, shall be disposed of by release for use in providing 
     for emergency humanitarian food needs in developing countries 
     as provided in this section.''.
       (b) Conforming Amendment.--Section 208(d) of the 
     Agriculture Trade Suspension Adjustment Act of 1980 (7 U.S.C. 
     4001(d)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Applicability of certain provisions.--Subsections 
     (c), (d), (e), (f), and (g)(2) of section 302 of the Food 
     Security Commodity Reserve Act of 1996 shall apply to 
     commodities in any reserve established under paragraph (1), 
     except that the references to `eligible commodities' in the 
     subsections shall be deemed to be references to `agricultural 
     commodities'.''.

     SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL 
                   PRODUCTION.

       Section 1208 of the Agriculture and Food Act of 1981 (7 
     U.S.C. 1736n) is repealed.

     SEC. 227. FOOD FOR PROGRESS PROGRAM.

       The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``(b)(1)'' and inserting ``(b)''; and
       (ii) in the first sentence, by inserting 
     ``intergovernmental organizations'' after ``cooperatives''; 
     and
       (B) by striking paragraph (2);
       (2) in subsection (e)(4), by striking ``203'' and inserting 
     ``406'';
       (3) in subsection (f)--
       (A) in paragraph (1), by striking ``in the case of the 
     independent states of the former Soviet Union,'';
       (B) by striking paragraph (2);
       (C) in paragraph (4), by inserting ``in each of fiscal 
     years 1996 through 2002'' after ``may be used''; and
       (D) by redesignating paragraphs (3) through (5) as 
     paragraphs (2) through (4), respectively;
       (4) in subsection (g), by striking ``1995'' and inserting 
     ``2002'';
       (5) in subsection (j), by striking ``shall'' and inserting 
     ``may'';
       (6) in subsection (k), by striking ``1995'' and inserting 
     ``2002'';
       (7) in subsection (l)(1)--
       (A) by striking ``1991 through 1995'' and inserting ``1996 
     through 2002''; and
       (B) by inserting ``, and to provide technical assistance 
     for monetization programs,'' after ``monitoring of food 
     assistance programs''; and
       (8) in subsection (m)--
       (A) by striking ``with respect to the independent states of 
     the former Soviet Union'';
       (B) by striking ``private voluntary organizations and 
     cooperatives'' each place it appears and inserting 
     ``agricultural trade organizations, intergovernmental 
     organizations, private voluntary organizations, and 
     cooperatives''; and
       (C) in paragraph (2), by striking ``in the independent 
     states''.

     SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES 
                   FINANCING.

       Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 
     1922) is repealed.

     SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

       Section 7 of the Act of December 30, 1947 (61 Stat. 947, 
     chapter 526; 50 U.S.C. App. 1917) is repealed.
        Subtitle B--Amendments to Agricultural Trade Act of 1978

     SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

       (a) In General.--Section 103 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5603) is amended to read as follows:

     ``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

       ``(a) In General.--The Secretary shall develop a strategy 
     for implementing Federal agricultural export promotion 
     programs that takes into account the new market opportunities 
     for agricultural products, including opportunities that 
     result from--
       ``(1) the North American Free Trade Agreement and the 
     Uruguay Round Agreements;
       ``(2) any accession to membership in the World Trade 
     Organization; 
     
[[Page S1205]]

       ``(3) the continued economic growth in the Pacific Rim; and
       ``(4) other developments.
       ``(b) Purpose of Strategy.--The strategy developed under 
     subsection (a) shall encourage the maintenance, development, 
     and expansion of export markets for United States 
     agricultural commodities and related products, including 
     high-value and value-added products.
       ``(c) Goals of Strategy.--The strategy developed under 
     subsection (a) shall have the following goals:
       ``(1) By September 30, 2002, increasing the value of annual 
     United States agricultural exports to $60,000,000,000.
       ``(2) By September 30, 2002, increasing the United States 
     share of world export trade in agricultural products 
     significantly above the average United States share from 1993 
     through 1995.
       ``(3) By September 30, 2002, increasing the United States 
     share of world trade in high-value agricultural products to 
     20 percent.
       ``(4) Ensuring that the value of United States exports of 
     agricultural products increases at a faster rate than the 
     rate of increase in the value of overall world export trade 
     in agricultural products.
       ``(5) Ensuring that the value of United States exports of 
     high-value agricultural products increases at a faster rate 
     than the rate of increase in overall world export trade in 
     high-value agricultural products.
       ``(6) Ensuring to the extent practicable that--
       ``(A) substantially all obligations undertaken in the 
     Uruguay Round Agreement on Agriculture that provide 
     significantly increased access for United States agricultural 
     commodities are implemented to the extent required by the 
     Uruguay Round Agreements; or
       ``(B) applicable United States trade laws are used to 
     secure United States rights under the Uruguay Round Agreement 
     on Agriculture.
       ``(d) Priority Markets.--
       ``(1) Identification of markets.--In developing the 
     strategy required under subsection (a), the Secretary shall 
     identify as priority markets--
       ``(A) those markets in which imports of agricultural 
     products show the greatest potential for increase by 
     September 30, 2002; and
       ``(B) those markets in which, with the assistance of 
     Federal export promotion programs, exports of United States 
     agricultural products show the greatest potential for 
     increase by September 30, 2002.
       ``(2) Identification of supporting offices.--The President 
     shall identify annually in the budget of the United States 
     Government submitted under section 1105 of title 31, United 
     States Code, each overseas office of the Foreign Agricultural 
     Service that provides assistance to United States exporters 
     in each of the priority markets identified under paragraph 
     (1).
       ``(e) Report.--Not later than December 31, 2001, the 
     Secretary shall prepare and submit a report to Congress 
     assessing progress in meeting the goals established by 
     subsection (c).
       ``(f) Failure To Meet Goals.--Notwithstanding any other 
     law, if the Secretary determines that more than 2 of the 
     goals established by subsection (c) are not met by September 
     30, 2002, the Secretary may not carry out agricultural trade 
     programs under the Agricultural Trade Act of 1978 (7 U.S.C. 
     5601 et seq.) as of that date.
       ``(g) No Private Right of Action.--This section shall not 
     create any private right of action.''.
       (b) Continuation of Funding.--
       (1) In general.--If the Secretary of Agriculture makes a 
     determination under section 103(f) of the Agricultural Trade 
     Act of 1978 (as amended by subsection (a)), the Secretary 
     shall utilize funds of the Commodity Credit Corporation to 
     promote United States agricultural exports in a manner 
     consistent with the Commodity Credit Corporation Charter Act 
     (15 U.S.C. 714 et seq.) and obligations pursuant to the 
     Uruguay Round Agreements.
       (2) Funding.--The amount of Commodity Credit Corporation 
     funds used to carry out paragraph (1) during a fiscal year 
     shall not exceed the total outlays for agricultural trade 
     programs under the Agricultural Trade Act of 1978 (7 U.S.C. 
     5601 et seq.) during fiscal year 2002.
       (c) Elimination of Report.--
       (1) In general.--Section 601 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5711) is repealed.
       (2) Conforming amendment.--The last sentence of section 603 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is 
     amended by striking ``, in a consolidated report,'' and all 
     that follows through ``section 601'' and inserting ``or in a 
     consolidated report''.

     SEC. 242. EXPORT CREDITS.

       (a) Export Credit Guarantee Program.--Section 202 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
       (1) in subsection (a)--
       (A) by striking ``Guarantees.--The'' and inserting the 
     following: ``Guarantees.--
       ``(1) In general.--The''; and
       (B) by adding at the end the following:
       ``(2) Supplier credits.--In carrying out this section, the 
     Commodity Credit Corporation may issue guarantees for the 
     repayment of credit made available for a period of not more 
     than 180 days by a United States exporter to a buyer in a 
     foreign country.'';
       (2) in subsection (f)--
       (A) by striking ``(f) Restrictions.--The'' and inserting 
     the following:
       ``(f) Restrictions.--
       ``(1) In general.--The''; and
       (B) by adding at the end the following:
       ``(2) Criteria for determination.--In making the 
     determination required under paragraph (1) with respect to 
     credit guarantees under subsection (b) for a country, the 
     Secretary may consider, in addition to financial, 
     macroeconomic, and monetary indicators--
       ``(A) whether an International Monetary Fund standby 
     agreement, Paris Club rescheduling plan, or other economic 
     restructuring plan is in place with respect to the country;
       ``(B) the convertibility of the currency of the country;
       ``(C) whether the country provides adequate legal 
     protection for foreign investments;
       ``(D) whether the country has viable financial markets;
       ``(E) whether the country provides adequate legal 
     protection for the private property rights of citizens of the 
     country; and
       ``(F) any other factors that are relevant to the ability of 
     the country to service the debt of the country.'';
       (3) by striking subsection (h) and inserting the following:
       ``(h) United States Agricultural Components.--The Commodity 
     Credit Corporation shall finance or guarantee under this 
     section only United States agricultural commodities.'';
       (4) in subsection (i)--
       (A) by striking ``Institutions.--A financial'' and 
     inserting the following: ``Institutions.--
       ``(1) In general.--A financial'';
       (B) by striking paragraph (1);
       (C) by striking ``(2) is'' and inserting the following:
       ``(A) is'';
       (D) by striking ``(3) is'' and inserting the following:
       ``(B) is''; and
       (E) by adding at the end the following:
       ``(2) Third country banks.--The Commodity Credit 
     Corporation may guarantee under subsections (a) and (b) the 
     repayment of credit made available to finance an export sale 
     irrespective of whether the obligor is located in the country 
     to which the export sale is destined.''; and
       (5) by striking subsection (k) and inserting the following:
       ``(k) Processed and High-Value Products.--
       ``(1) In general.--In issuing export credit guarantees 
     under this section, the Commodity Credit Corporation shall, 
     subject to paragraph (2), ensure that not less than 25 
     percent for each of fiscal years 1996 and 1997, 30 percent 
     for each of fiscal years 1998 and 1999, and 35 percent for 
     each of fiscal years 2000, 2001, and 2002, of the total 
     amount of credit guarantees issued for a fiscal year is 
     issued to promote the export of processed or high-value 
     agricultural products and that the balance is issued to 
     promote the export of bulk or raw agricultural commodities.
       ``(2) Limitation.--The percentage requirement of paragraph 
     (1) shall apply for a fiscal year to the extent that a 
     reduction in the total amount of credit guarantees issued for 
     the fiscal year is not required to meet the percentage 
     requirement.''.
       (b) Funding Levels.--Section 211(b) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(b)) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating subparagraph (B) of paragraph (1) as 
     paragraph (2) and indenting the margin of paragraph (2) (as 
     so redesignated) so as to align with the margin of paragraph 
     (1); and
       (3) by striking paragraph (1) and inserting the following:
       ``(1) Export credit guarantees.--The Commodity Credit 
     Corporation shall make available for each of fiscal years 
     1996 through 2002 not less than $5,500,000,000 in credit 
     guarantees under subsections (a) and (b) of section 202.''.
       (c) Definitions.--Section 102(7) of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5602(7)) is amended by striking 
     subparagraphs (A) and (B) and inserting the following:
       ``(A) an agricultural commodity or product entirely 
     produced in the United States; or
       ``(B) a product of an agricultural commodity--
       ``(i) 90 percent or more of which by weight, excluding 
     packaging and water, is entirely produced in the United 
     States; and
       ``(ii) that the Secretary determines to be a high value 
     agricultural product.''.
       (d) Regulations.--Not later than 180 days after the 
     effective date of this title, the Secretary of Agriculture 
     shall issue regulations to carry out the amendments made by 
     this section.

     SEC. 243. MARKET PROMOTION PROGRAM.

       Effective October 1, 1995, section 211(c)(1) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is 
     amended--
       (1) by striking ``and'' after ``1991 through 1993,''; and
       (2) by striking ``through 1997,'' and inserting ``through 
     1995, and not more than $70,000,000 for each of fiscal years 
     1996 through 2002,'':

     Provided, That funds made available under this Act to carry 
     out the non-generic activities of the market promotion 
     program established under section 203 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5623) may be used to provide 
     cost-share assistance only to organizations that are non-
     foreign entities and 

[[Page S1206]]
     are recognized as small business concerns under section 3(a) of the 
     Small Business Act (15 U.S.C. 632(a)) or to the associations 
     described in the first section of the Act entitled ``An Act 
     to authorize association of producers of agricultural 
     products'', approved February 22, 1922 (7 U.S.C. 291): 
     Provided further, that such funds may not be used to provide 
     cost-share assistance to a foreign eligible trade 
     organization: Provided further, That none of the funds made 
     available under this Act may be used to carry out the market 
     promotion program established under section 203 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623) if the 
     aggregate amount of funds and value of commodities under the 
     program exceeds $70,000,000.

     SEC. 244. EXPORT ENHANCEMENT PROGRAM.

       Effective October 1, 1995, section 301(e)(1) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is 
     amended to read as follows:
       ``(1) In general.--The Commodity Credit Corporation shall 
     make available to carry out the program established under 
     this section not more than--
       ``(A) $350,000,000 for fiscal year 1996;
       ``(B) $350,000,000 for fiscal year 1997;
       ``(C) $500,000,000 for fiscal year 1998;
       ``(D) $550,000,000 for fiscal year 1999;
       ``(E) $579,000,000 for fiscal year 2000;
       ``(F) $478,000,000 for fiscal year 2001; and
       ``(G) $478,000,000 for fiscal year 2002.''.

     SEC. 245. ARRIVAL CERTIFICATION.

       Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5662(a)) is amended by striking subsection (a) and inserting 
     the following:
       ``(a) Arrival Certification.--With respect to a commodity 
     provided, or for which financing or a credit guarantee or 
     other assistance is made available, under a program 
     authorized in section 201, 202, or 301, the Commodity Credit 
     Corporation shall require the exporter of the commodity to 
     maintain records of an official or customary commercial 
     nature or other documents as the Secretary may require, and 
     shall allow representatives of the Commodity Credit 
     Corporation access to the records or documents as needed, to 
     verify the arrival of the commodity in the country that was 
     the intended destination of the commodity.''.

     SEC. 246. COMPLIANCE.

       Section 402(a) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5662(a)) is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).

     SEC. 247. REGULATIONS.

       Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5664) is repealed.

     SEC. 248. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

       Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5661 et seq.) is amended by adding at the end the following:

     ``SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

       ``(a) In General.--Notwithstanding any other law, if, after 
     the effective date of this section, the President or any 
     other member of the Executive branch causes exports from the 
     United States to any country to be unilaterally suspended for 
     reasons of national security or foreign policy, and if within 
     180 days after the date on which the suspension is imposed on 
     United States exports no other country agrees to participate 
     in the suspension, the Secretary shall carry out a trade 
     compensation and assistance program in accordance with this 
     section (referred to in this section as a `program').
       ``(b) Provision of Funds.--Under a program, the Secretary 
     shall make available for each fiscal year funds of the 
     Commodity Credit Corporation, in an amount calculated under 
     subsection (c), to promote agricultural exports or provide 
     agricultural commodities to developing countries, under any 
     authorities available to the Secretary.
       ``(c) Determination of Amount of Funds.--For each fiscal 
     year of a program, the amount of funds made available under 
     subsection (b) shall be equal to 90 percent of the average 
     annual value of United States agricultural exports to the 
     country with respect to which exports are suspended during 
     the most recent 3 years prior to the suspension for which 
     data are available.
       ``(d) Duration of Program.--
       ``(1) In general.--For each suspension of exports for which 
     a program is implemented under this section, funds shall be 
     made available under subsection (b) for each fiscal year or 
     part of a fiscal year for which the suspension is in effect, 
     but not to exceed 2 fiscal years.
       ``(2) Partial-year embargoes.--Regardless of whether an 
     embargo is in effect for only part of a fiscal year, the full 
     amount of funds as calculated under subsection (c) shall be 
     made available under a program for the fiscal year. If the 
     Secretary determines that making the required amount of funds 
     available in a partial fiscal year is impracticable, the 
     Secretary may make all or part of the funds required to be 
     made available in the partial fiscal year available in the 
     following fiscal year (in addition to any funds otherwise 
     required under a program to be made available in the 
     following fiscal year).''.

     SEC. 249. FOREIGN AGRICULTURAL SERVICE.

       Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5693) is amended to read as follows:

     ``SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL 
                   SERVICE.

       ``The Service shall assist the Secretary in carrying out 
     the agricultural trade policy and international cooperation 
     policy of the United States by--
       ``(1) acquiring information pertaining to agricultural 
     trade;
       ``(2) carrying out market promotion and development 
     activities;
       ``(3) providing agricultural technical assistance and 
     training; and
       ``(4) carrying out the programs authorized under this Act, 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1691 et seq.), and other Acts.''.

     SEC. 250. REPORTS.

       The first sentence of section 603 of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5713) is amended by striking ``The'' 
     and inserting ``Subject to section 217 of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), 
     the''.
                       Subtitle C--Miscellaneous

     SEC. 251. REPORTING REQUIREMENTS RELATING TO TOBACCO.

       Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 
     509) is repealed.

     SEC. 252. TRIGGERED EXPORT ENHANCEMENT.

       (a) Readjustment of Support Levels.--Section 1302 of the 
     Omnibus Budget Reconciliation Act of 1990 (Public Law 101-
     508; 7 U.S.C. 1421 note) is repealed.
       (b) Triggered Marketing Loans and Export Enhancement.--
     Section 4301 of the Omnibus Trade and Competitiveness Act of 
     1988 (Public Law 100-418; 7 U.S.C. 1446 note) is repealed.
       (c) Effective Date.--The amendments made by this section 
     shall be effective beginning with the 1996 crops of wheat, 
     feed grains, upland cotton, and rice.

     SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

       Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) 
     is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by inserting after the first sentence 
     the following: ``The Secretary may use funds of the Commodity 
     Credit Corporation to cover administrative expenses of the 
     programs.'';
       (B) in paragraph (7)(D)(iv), by striking ``one year of 
     acquisition'' and all that follows and inserting the 
     following: ``a reasonable length of time, as determined by 
     the Secretary, except that the Secretary may permit the use 
     of proceeds in a country other than the country of origin--
       ``(I) as necessary to expedite the transportation of 
     commodities and products furnished under this subsection; or
       ``(II) if the proceeds are generated in a currency 
     generally accepted in the other country.'';
       (C) in paragraph (8), by striking subparagraph (C); and
       (D) by striking paragraphs (10), (11), and (12); and
       (2) by striking subsection (c).

     SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.

       Section 106 of the Agriculture and Food Act of 1981 (7 
     U.S.C. 1446c-1) is repealed.

     SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.

       Section 1163 of the Food Security Act of 1985 (Public Law 
     99-198; 7 U.S.C. 1731 note) is repealed.

     SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

       (a) In General.--Section 1517 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is 
     repealed.
       (b) Conforming Amendment.--Subsection (e)(3) of the Food 
     for Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by 
     striking ``section 106'' and inserting ``section 103''.

     SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

       Section 1207 of the Agriculture and Food Act of 1981 (7 
     U.S.C. 1736m) is repealed.

     SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT 
                   MARKETS.

       Section 1121 of the Food Security Act of 1985 (7 U.S.C. 
     1736p) is amended--
       (1) by striking subsection (a); and
       (2) in subsection (b)--
       (A) by striking ``(b)''; and
       (B) by striking paragraphs (1) through (4) and inserting 
     the following:
       ``(1) be the premier supplier of agricultural and food 
     products to world markets and expand exports of high value 
     products;
       ``(2) support the principle of free trade and the promotion 
     of fair trade in agricultural commodities and products;
       ``(3) cooperate fully in all efforts to negotiate with 
     foreign countries further reductions in tariff and nontariff 
     barriers to trade, including sanitary and phytosanitary 
     measures and trade-distorting subsidies;
       ``(4) aggressively counter unfair foreign trade practices 
     as a means of encouraging fairer trade;''.

     SEC. 259. POLICY ON TRADE LIBERALIZATION.

       Section 1122 of the Food Security Act of 1985 (7 U.S.C. 
     1736q) is repealed.

     SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.

       Section 1123 of the Food Security Act of 1985 (7 U.S.C. 
     1736r) is amended to read as follows:

     ``SEC. 1123. TRADE NEGOTIATIONS POLICY.

       ``(a) Findings.--Congress finds that--
       ``(1) on a level playing field, United States producers are 
     the most competitive suppliers of agricultural products in 
     the world;
       ``(2) exports of United States agricultural products will 
     account for $53,000,000,000 in 1995, contributing a net 
     $24,000,000,000 to the merchandise trade balance of the 
     United States and supporting approximately 1,000,000 jobs;
       ``(3) increased agricultural exports are critical to the 
     future of the farm, rural, and 

[[Page S1207]]
     overall United States economy, but the opportunities for increased 
     agricultural exports are limited by the unfair subsidies of 
     the competitors of the United States, and a variety of tariff 
     and nontariff barriers to highly competitive United States 
     agricultural products;
       ``(4) international negotiations can play a key role in 
     breaking down barriers to United States agricultural exports;
       ``(5) the Uruguay Round Agreement on Agriculture made 
     significant progress in the attainment of increased market 
     access opportunities for United States exports of 
     agricultural products, for the first time--
       ``(A) restraining foreign trade-distorting domestic support 
     and export subsidy programs; and
       ``(B) developing common rules for the application of 
     sanitary and phytosanitary restrictions;

     that should result in increased exports of United States 
     agricultural products, jobs, and income growth in the United 
     States;
       ``(6) the Uruguay Round Agreement on Agriculture did not 
     succeed in completely eliminating trade distorting domestic 
     support and export subsidies by--
       ``(A) allowing the European Union to continue unreasonable 
     levels of spending on export subsidies; and
       ``(B) failing to discipline monopolistic state trading 
     entities, such as the Canadian Wheat Board, that use 
     nontransparent and discriminatory pricing as a hidden de 
     facto export subsidy;
       ``(7) during the period 1996 through 2002, there will be 
     several opportunities for the United States to negotiate 
     fairer trade in agricultural products, including further 
     negotiations under the World Trade Organization, and steps 
     toward possible free trade agreements of the Americas and 
     Asian-Pacific Economic Cooperation (APEC); and
       ``(8) the United States should aggressively use these 
     opportunities to achieve more open and fair opportunities for 
     trade in agricultural products.
       ``(b) Goals of the United States in Agricultural Trade 
     Negotiations.--The objectives of the United States with 
     respect to future negotiations on agricultural trade 
     include--
       ``(1) increasing opportunities for United States exports of 
     agricultural products by eliminating or substantially 
     reducing tariff and nontariff barriers to trade;
       ``(2) leveling the playing field for United States 
     producers of agricultural products by limiting per unit 
     domestic production supports to levels that are no greater 
     than those available in the United States;
       ``(3) ending the practice of export dumping by eliminating 
     all trade distorting export subsidies and disciplining state 
     trading entities so that they do not (except in cases of bona 
     fide food aid) sell in foreign markets at below domestic 
     market prices nor their full costs of acquiring and 
     delivering agricultural products to the foreign markets; and
       ``(4) encouraging government policies that avoid price-
     depressing surpluses.''.

     SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.

       Section 1164 of the Food Security Act of 1985 (Public Law 
     99-198; 99 Stat. 1499) is repealed.

     SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.

       (a) In General.--The Agricultural Aid and Trade Missions 
     Act (7 U.S.C. 1736bb et seq.) is repealed.
       (b) Conforming Amendment.--Section 7 of Public Law 100-277 
     (7 U.S.C. 1736bb note) is repealed.

     SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

       Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 
     U.S.C. 1748(b)(1)(B)) is amended by striking ``including 
     fruits, vegetables, legumes, popcorn, and ducks''.

     SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMATION.

       Section 1545 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is 
     repealed.

     SEC. 265. ORDERLY LIQUIDATION OF STOCKS.

       Sections 201 and 207 of the Agricultural Act of 1956 (7 
     U.S.C. 1851 and 1857) are repealed.

     SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.

       Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) 
     is repealed.

     SEC. 267. REGULATIONS.

       Section 707 of the Freedom for Russia and Emerging Eurasian 
     Democracies and Open Markets Support Act of 1992 (Public Law 
     102-511; 7 U.S.C. 5621 note) is amended by striking 
     subsection (d).

     SEC. 268. EMERGING MARKETS.

       (a) Promotion of Agricultural Exports to Emerging 
     Markets.--
       (1) Emerging markets.--Section 1542 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (Public Law 
     101-624; 7 U.S.C. 5622 note) is amended--
       (A) in the section heading, by striking ``EMERGING 
     DEMOCRACIES'' and inserting ``EMERGING MARKETS'';
       (B) by striking ``emerging democracies'' each place it 
     appears in subsections (b), (d), and (e) and inserting 
     ``emerging markets'';
       (C) by striking ``emerging democracy'' each place it 
     appears in subsection (c) and inserting ``emerging market''; 
     and
       (D) by striking subsection (f) and inserting the following:
       ``(f) Emerging Market.--In this section and section 1543, 
     the term `emerging market' means any country that the 
     Secretary determines--
       ``(1) is taking steps toward a market-oriented economy 
     through the food, agriculture, or rural business sectors of 
     the economy of the country; and
       ``(2) has the potential to provide a viable and significant 
     market for United States agricultural commodities or products 
     of United States agricultural commodities.''.
       (2) Funding.--Section 1542 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Funding.--The Commodity Credit Corporation shall make 
     available for fiscal years 1996 through 2002 not less than 
     $1,000,000,000 of direct credits or export credit guarantees 
     for exports to emerging markets under section 201 or 202 of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), 
     in addition to the amounts acquired or authorized under 
     section 211 of the Act (7 U.S.C. 5641) for the program.''.
       (3) Agricultural fellowship program.--Section 1542 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 is 
     amended--
       (A) in subsection (b), by striking the last sentence and 
     inserting the following: ``The Commodity Credit Corporation 
     shall give priority under this subsection to--
       ``(A) projects that encourage the privatization of the 
     agricultural sector or that benefit private farms or 
     cooperatives in emerging markets; and
       ``(B) projects for which nongovernmental persons agree to 
     assume a relatively larger share of the costs.''; and
       (B) in subsection (d)--
       (i) in the matter preceding paragraph (1), by striking 
     ``the Soviet Union'' and inserting ``emerging markets'';
       (ii) in paragraph (1)--

       (I) in subparagraph (A)(i)--

       (aa) by striking ``1995'' and inserting ``2002''; and
       (bb) by striking ``those systems, and identify'' and 
     inserting ``the systems, including potential reductions in 
     trade barriers, and identify and carry out'';

       (II) in subparagraph (B), by striking ``shall'' and 
     inserting ``may'';
       (III) in subparagraph (D), by inserting ``(including the 
     establishment of extension services)'' after ``technical 
     assistance'';
       (IV) by striking subparagraph (F);
       (V) by redesignating subparagraphs (G), (H), and (I) as 
     subparagraphs (F), (G), and (H), respectively; and
       (VI) in subparagraph (H) (as redesignated by subclause 
     (V)), by striking ``$10,000,000'' and inserting 
     ``$20,000,000'';

       (iii) in paragraph (2)--

       (I) by striking ``the Soviet Union'' each place it appears 
     and inserting ``emerging markets'';
       (II) in subparagraph (A), by striking ``a free market food 
     production and distribution system'' and inserting ``free 
     market food production and distribution systems'';
       (III) in subparagraph (B)--

       (aa) in clause (i), by striking ``Government'' and 
     inserting ``governments'';
       (bb) in clause (iii)(II), by striking ``and'' at the end;
       (cc) in clause (iii)(III), by striking the period at the 
     end and inserting ``; and''; and
       (dd) by adding at the end of clause (iii) the following:

       ``(IV) to provide for the exchange of administrators and 
     faculty members from agricultural and other institutions to 
     strengthen and revise educational programs in agricultural 
     economics, agribusiness, and agrarian law, to support change 
     towards a free market economy in emerging markets.'';
       (IV) by striking subparagraph (D); and
       (V) by redesignating subparagraph (E) as subparagraph (D); 
     and

       (iv) by striking paragraph (3).
       (4) United states agricultural commodity.--Subsections (b) 
     and (c) of section 1542 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 are amended by striking 
     ``section 101(6)'' each place it appears and inserting 
     ``section 102(7)''.
       (5) Report.--The first sentence of section 1542(e)(2) of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 is 
     amended by striking ``Not'' and inserting ``Subject to 
     section 217 of the Department of Agriculture Reorganization 
     Act of 1994 (7 U.S.C. 6917), not''.
       (b) Agricultural Fellowship Program for Middle Income 
     Countries, Emerging Democracies, and Emerging Markets.--
     Section 1543 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3293) is amended--
       (1) in the section heading, by striking ``MIDDLE INCOME 
     COUNTRIES AND EMERGING DEMOCRACIES'' and inserting ``MIDDLE 
     INCOME COUNTRIES, EMERGING DEMOCRACIES, AND EMERGING 
     MARKETS'';
       (2) in subsection (b), by adding at the end the following:
       ``(5) Emerging market.--Any emerging market, as defined in 
     section 1542(f).''; and
       (3) in subsection (c)(1), by striking ``food needs'' and 
     inserting ``food and fiber needs''.
       (c) Conforming Amendments.--
       (1) Section 501 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1737) is amended--
       (A) in subsection (a), by striking ``emerging democracies'' 
     and inserting ``emerging markets''; and
       (B) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) Emerging market.--The term `emerging market' means 
     any country that the Secretary determines--
     
[[Page S1208]]

       ``(A) is taking steps toward a market-oriented economy 
     through the food, agriculture, or rural business sectors of 
     the economy of the country; and
       ``(B) has the potential to provide a viable and significant 
     market for United States agricultural commodities or products 
     of United States agricultural commodities.''.
       (2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking 
     ``emerging democracies'' and inserting ``emerging markets''.
       (3) Section 202(d)(3)(B) of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking 
     ``emerging democracies'' and inserting ``emerging markets''.

     SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND 
                   THE PHILIPPINES.

       Section 583 of Public Law 100-202 (101 Stat. 1329-182) is 
     repealed.

     SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.

       (a) In General.--Sections 1551 through 1555, section 1559, 
     and section 1560 of subtitle E of title XV of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (Public Law 
     101-624; 104 Stat. 3696) are repealed.
       (b) Language Proficiency.--Section 1556 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (Public Law 
     101-624; 7 U.S.C. 5694 note) is amended by striking 
     subsection (c).

     SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
                   AGREEMENTS.

       Part III of subtitle A of title IV of the Uruguay Round 
     Agreements Act (Public Law 103-465; 108 Stat. 4964) is 
     amended by adding at the end the following:

     ``SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
                   AGREEMENTS.

       ``Not later than September 30 of each fiscal year, the 
     Secretary of Agriculture shall determine whether the 
     obligations undertaken by foreign countries under the Uruguay 
     Round Agreement on Agriculture are being fully implemented. 
     If the Secretary of Agriculture determines that any foreign 
     country, by not implementing the obligations of the country, 
     is significantly constraining an opportunity for United 
     States agricultural exports, the Secretary shall--
       ``(1) submit to the United States Trade Representative a 
     recommendation as to whether the President should take action 
     under any provision of law; and
       ``(2) transmit a copy of the recommendation to the 
     Committee on Agriculture, and the Committee on Ways and 
     Means, of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry, and the Committee on 
     Finance, of the Senate.''.

     SEC. 272. SENSE OF CONGRESS CONCERNING MULTILATERAL 
                   DISCIPLINES ON CREDIT GUARANTEES.

       It is the sense of Congress that--
       (1) in negotiations to establish multilateral disciplines 
     on agricultural export credits and credit guarantees, the 
     United States should not agree to any arrangement that is 
     incompatible with the provisions of United States law that 
     authorize agricultural export credits and credit guarantees;
       (2) in the negotiations (which are held under the auspices 
     of the Organization for Economic Cooperation and 
     Development), the United States should not reach any 
     agreement that fails to impose disciplines on the practices 
     of foreign government trading entities such as the Australian 
     Wheat Board and Canadian Wheat Board; and
       (3) the disciplines should include greater openness in the 
     operations of the entities as long as the entities are 
     subsidized by the foreign government or have monopolies for 
     exports of a commodity that are sanctioned by the foreign 
     government.

     SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) 
     is amended by adding at the end the following:
       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

     ``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

       ``In this title, the term `eligible trade organization' 
     means a United States trade organization that--
       ``(1) promotes the export of 1 or more United States 
     agricultural commodities or products; and
       ``(2) does not have a business interest in or receive 
     remuneration from specific sales of agricultural commodities 
     or products.

     ``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       ``(a) In General.--The Secretary shall establish and, in 
     cooperation with eligible trade organizations, carry out a 
     foreign market development cooperator program to maintain and 
     develop foreign markets for United States agricultural 
     commodities and products.
       ``(b) Administration.--Funds made available to carry out 
     this title shall be used only to provide--
       ``(1) cost-share assistance to an eligible trade 
     organization under a contract or agreement with the 
     organization; and
       ``(2) assistance for other costs that are necessary or 
     appropriate to carry out the foreign market development 
     cooperator program, including contingent liabilities that are 
     not otherwise funded.

     ``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title such sums as may be necessary for each of fiscal years 
     1996 through 2002.''.

     SEC. 274. PRICE SUPPORT FOR RICE.

       Section 101 of the Agricultural Act of 1949 is amended by 
     adding a subsection (e) that reads as follows:
       ``(e) Rice.--The Secretary shall make available to 
     producers of each crop of rice on a farm price support at a 
     level that is not less than 50%, or more than 90% of the 
     parity price for rice as the Secretary determines will not 
     result in increasing stocks of rice to the Commodity Credit 
     Corporation.''.
                        TITLE III--CONSERVATION
                        Subtitle A--Definitions

     SEC. 301. DEFINITIONS.

       Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
     3801(a)) is amended--
       (1) by redesignating paragraphs (3) through (16) as 
     paragraphs (4) through (17), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Conservation system.--The term `conservation system' 
     means the conservation measures and practices that are 
     approved for application by a producer to a highly erodible 
     field and that provide for cost effective and practical 
     erosion reduction on the field based on local resource 
     conditions and standards contained in the Natural Resources 
     Conservation Service field office technical guide.''.
     Subtitle B--Environmental Conservation Acreage Reserve Program

     SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

       Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
     3830) is amended to read as follows:

     ``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE 
                   PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2002 calendar 
     years, the Secretary shall establish an environmental 
     conservation acreage reserve program (referred to in this 
     section as `ECARP') to be implemented through contracts and 
     the acquisition of easements to assist owners and operators 
     of farms and ranches to conserve and enhance soil, water, and 
     related natural resources, including grazing land, wetland, 
     and wildlife habitat.
       ``(2) Means.--The Secretary shall carry out the ECARP by--
       ``(A) providing for the long-term protection of 
     environmentally sensitive land; and
       ``(B) providing technical and financial assistance to 
     farmers and ranchers to--
       ``(i) improve the management and operation of the farms and 
     ranches; and
       ``(ii) reconcile productivity and profitability with 
     protection and enhancement of the environment.
       ``(3) Programs.--The ECARP shall consist of--
       ``(A) the conservation reserve program established under 
     subchapter B;
       ``(B) the wetlands reserve program established under 
     subchapter C;
       ``(C) the environmental quality incentives program 
     established under chapter 4; and
       ``(D) a farmland protection program under which the 
     Secretary shall use funds of the Commodity Credit Corporation 
     for the purchase of conservation easements or other interests 
     in not less than 170,000, nor more than 340,000, acres of 
     land with prime, unique, or other productive soil that is 
     subject to a pending offer from a State or local government 
     for the purpose of protecting topsoil by limiting 
     nonagricultural uses of the land, except that any highly 
     erodible cropland shall be subject to the requirements of a 
     conservation plan, including, if required by the Secretary, 
     the conversion of the land to less intensive uses. In no case 
     shall total expenditures of funding from the Commodity Credit 
     Corporation exceed a total of $35,000,000 over the first 3 
     and subsequent fiscal years.
       ``(b) Administration.--
       ``(1) In general.--In carrying out the ECARP, the Secretary 
     shall enter into contracts with owners and operators and 
     acquire interests in land through easements from owners, as 
     provided in this chapter and chapter 4.
       ``(2) Prior enrollments.--Acreage enrolled in the 
     conservation reserve or wetlands reserve program prior to the 
     effective date of this paragraph shall be considered to be 
     placed into the ECARP.
       ``(c) Conservation Priority Areas.--
       ``(1) Designation.--
       ``(A) In general.--The Secretary shall designate watersheds 
     or regions of special environmental sensitivity, including 
     the Chesapeake Bay Region (consisting of Pennsylvania, 
     Maryland, and Virginia), the Great Lakes Region, the 
     Rainwater Basin Region, the Lake Champlain Basin, the Prairie 
     Pothole Region, and the Long Island Sound Region, as 
     conservation priority areas that are eligible for enhanced 
     assistance through the programs established under this 
     chapter and chapter 4.
       ``(B) Application.--A designation shall be made under this 
     paragraph if agricultural practices on land within the 
     watershed or region pose a significant threat to soil, water, 
     and related natural resources, as determined by the 
     Secretary, and an application is made by--
       ``(i) a State agency in consultation with the State 
     technical committee established under section 1261; or
       ``(ii) State agencies from several States that agree to 
     form an interstate conservation priority area.
     
[[Page S1209]]

       ``(C) Assistance.--The Secretary shall designate a 
     watershed or region of special environmental sensitivity as a 
     conservation priority area to assist, to the maximum extent 
     practicable, agricultural producers within the watershed or 
     region to comply with nonpoint source pollution requirements 
     under the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.) and other Federal and State environmental laws.
       ``(2) Applicability.--The Secretary shall designate a 
     watershed or region of special environmental sensitivity as a 
     conservation priority area in a manner that conforms, to the 
     maximum extent practicable, to the functions and purposes of 
     the conservation reserve, wetlands reserve, and environmental 
     quality incentives programs, as applicable, if participation 
     in the program or programs is likely to result in the 
     resolution or amelioration of significant soil, water, and 
     related natural resource problems related to agricultural 
     production activities within the watershed or region.
       ``(3) Termination.--A conservation priority area 
     designation shall terminate on the date that is 5 years after 
     the date of the designation, except that the Secretary may--
       ``(A) redesignate the area as a conservation priority area; 
     or
       ``(B) withdraw the designation of a watershed or region if 
     the Secretary determines the area is no longer affected by 
     significant soil,water, and related natural resource impacts 
     related to agricultural production activities.''.

     SEC. 312. CONSERVATION RESERVE PROGRAM.

       (a) In General.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended--
       (1) by striking ``1995'' each place it appears and 
     inserting ``2002''; and
       (2) in subsection (d), by striking ``38,000,000'' and 
     inserting ``36,520,000''.
       (b) Duties of Owners and Operators.--Section 1232(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
     striking ``1995'' and inserting ``2002''.
       (c) Relationship to Other Law.--The authority granted to 
     the Secretary of Agriculture as a result of the amendments 
     made by this section shall supersede any restriction on the 
     operation of the conservation reserve program established 
     under any other provision of law.

     SEC. 313. WETLANDS RESERVE PROGRAM.

       (a) Purposes.--Section 1237(a) of the Food Security Act of 
     1985 (16 U.S.C. 3837(a)) is amended by striking ``to assist 
     owners of eligible lands in restoring and protecting 
     wetlands'' and inserting ``to protect wetlands for purposes 
     of enhancing water quality and providing wildlife benefits 
     while recognizing landowner rights''.
       (b) Enrollment.--Section 1237 of the Food Security Act of 
     1985 (16 U.S.C. 3837) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Minimum Enrollment.--The Secretary shall enroll into 
     the wetlands reserve program--
       ``(1) during the 1996 through 2002 calendar years, a total 
     of not more than 975,000 acres; and
       ``(2) beginning with offers accepted by the Secretary 
     during calendar year 1997, to the maximum extent practicable, 
     \1/3\ of the acres in permanent easements, \1/3\ of the acres 
     in 30-year easements, and \1/3\ of the acres in restoration 
     cost-share agreements.''.
       (c) Eligibility.--Section 1237(c) of the Food Security Act 
     of 1985 (16 U.S.C. 3837(c)) is amended--
       (1) by striking ``2000'' and inserting ``2002''; and
       (2) by inserting ``the land maximizes wildlife benefits and 
     wetland values and functions and'' after ``determines that''.
       (d) Other Eligible Lands.--Section 1237(d) (16 U.S.C. 
     3837(d)) is amended by inserting after ``subsection (c)'' the 
     following ``, land that maximizes wildlife benefits and that 
     is''.
       (e) Easements.--Section 1237A of the Food Security Act of 
     1985 (16 U.S.C. 3837a) is amended--
       (1) in the section heading, by inserting before the period 
     at the end the following: ``AND AGREEMENTS'';
       (2) by striking subsection (c) and inserting the following:
       ``(c) Restoration Plans.--The development of a restoration 
     plan, including any compatible use, under this section shall 
     be made through the local Natural Resources Conservation 
     Service representative, in consultation with the State 
     technical committee.'';
       (3) in subsection (f), by striking the third sentence and 
     inserting the following: ``Compensation may be provided in 
     not less than 5, nor more than 30, annual payments of equal 
     or unequal size, as agreed to by the owner and the 
     Secretary.''; and
       (4) by adding at the end the following:
       ``(h) Cost Share Agreements.--The Secretary may enroll land 
     into the wetland reserve through agreements that require the 
     landowner to restore wetlands on the land, if the agreement 
     does not provide the Secretary with an easement.''.
       (f) Cost Share and Technical Assistance.--Section 1237C of 
     the Food Security Act of 1985 (16 U.S.C. 3837c) is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Cost Share and Technical Assistance.--In the case of 
     an easement entered into during the 1996 through 2002 
     calendar years, in making cost share payments under 
     subsection (a)(1), the Secretary shall--
       ``(1) in the case of a permanent easement, pay the owner an 
     amount that is not less than 75 percent, but not more than 
     100 percent, of the eligible costs;
       ``(2) in the case of a 30-year easement or a cost-share 
     agreement, pay the owner an amount that is not less than 50 
     percent, but not more than 75 percent, of the eligible costs; 
     and
       ``(3) provide owners technical assistance to assist 
     landowners in complying with the terms of easements and 
     agreements.''.

     SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       Subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.) is amended by adding at the end the 
     following:

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

     ``SEC. 1238. FINDINGS AND PURPOSES.

       ``(a) Findings.--Congress finds that--
       ``(1) farmers and ranchers cumulatively manage more than 
     \1/2\ of the private lands in the continental United States;
       ``(2) because of the predominance of agriculture, the soil, 
     water, and related natural resources of the United States 
     cannot be protected without cooperative relationships between 
     the Federal Government and farmers and ranchers;
       ``(3) farmers and ranchers have made tremendous progress in 
     protecting the environment and the agricultural resource base 
     of the United States over the past decade because of not only 
     Federal Government programs but also their spirit of 
     stewardship and the adoption of effective technologies;
       ``(4) it is in the interest of the entire United States 
     that farmers and ranchers continue to strive to preserve soil 
     resources and make more efforts to protect water quality and 
     wildlife habitat, and address other broad environmental 
     concerns;
       ``(5) environmental strategies that stress the prudent 
     management of resources, as opposed to idling land, will 
     permit the maximum economic opportunities for farmers and 
     ranchers in the future;
       ``(6) unnecessary bureaucratic and paperwork barriers 
     associated with existing agricultural conservation assistance 
     programs decrease the potential effectiveness of the 
     programs; and
       ``(7) the recent trend of Federal spending on agricultural 
     conservation programs suggests that assistance to farmers and 
     ranchers in future years will, absent changes in policy, 
     dwindle to perilously low levels.
       ``(b) Purposes.--The purposes of the environmental quality 
     incentives program established by this chapter are to--
       ``(1) combine into a single program the functions of--
       ``(A) the agricultural conservation program authorized by 
     sections 7 and 8 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590g and 590h) (as in effect before 
     the amendments made by section 355(a)(1) of the Agricultural 
     Reform and Improvement Act of 1996);
       ``(B) the Great Plains conservation program established 
     under section 16(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590p(b)) (as in effect before the 
     amendment made by section 355(b)(1) of the Agricultural 
     Reform and Improvement Act of 1996); and
       ``(C) the water quality incentives program established 
     under chapter 2 (as in effect before the amendment made by 
     section 355(k) of the Agricultural Reform and Improvement Act 
     of 1996); and
       ``(C) the Colorado River Basin salinity control program 
     established under section 202(c) of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592(c)) (as in effect before 
     the amendment made by section 355(c)(1) of the Agricultural 
     Reform and Improvement Act of 1996); and
       ``(2) carry out the single program in a manner that 
     maximizes environmental benefits per dollar expended, and 
     that provides--
       ``(A) flexible technical and financial assistance to 
     farmers and ranchers that face the most serious threats to 
     soil, water, and related natural resources, including grazing 
     lands, wetlands, and wildlife habitat;
       ``(B) assistance to farmers and ranchers in complying with 
     this title and Federal and State environmental laws, and to 
     encourage environmental enhancement;
       ``(C) assistance to farmers and ranchers in making 
     beneficial, cost-effective changes to cropping systems, 
     grazing management, manure, nutrient, pest, or irrigation 
     management, land uses, or other measures needed to conserve 
     and improve soil, water, and related natural resources; and
       ``(D) for the consolidation and simplification of the 
     conservation planning process to reduce administrative 
     burdens on the owners and operators of farms and ranches.

     ``SEC. 1238A. DEFINITIONS.

       ``In this chapter:
       ``(1) Land management practice.--The term `land management 
     practice' means nutrient or manure management, integrated 
     pest management, irrigation management, tillage or residue 
     management, grazing management, or another land management 
     practice the Secretary determines is needed to protect soil, 
     water, or related resources in the most cost effective 
     manner.
       ``(2) Large confined livestock operation.--The term `large 
     confined livestock operation' means a farm or ranch that--
       ``(A) is a confined animal feeding operation; and
       ``(B) has more than--
       ``(i) 700 mature dairy cattle;
       ``(ii) 1,000 beef cattle;
       ``(iii) 100,000 laying hens or broilers;
     
[[Page S1210]]

       ``(iv) 55,000 turkeys;
       ``(v) 2,500 swine; or
       ``(vi) 10,000 sheep or lambs.
       ``(3) Livestock.--The term `livestock' means mature dairy 
     cows, beef cattle, laying hens, broilers, turkeys, swine, 
     sheep, or lambs.
       ``(4) Operator.--The term `operator' means a person who is 
     engaged in crop or livestock production (as defined by the 
     Secretary).
       ``(5) Structural practice.--The term `structural practice' 
     means the establishment of an animal waste management 
     facility, terrace, grassed waterway, contour grass strip, 
     filterstrip, permanent wildlife habitat, or another 
     structural practice that the Secretary determines is needed 
     to protect soil, water, or related resources in the most cost 
     effective manner.

     ``SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF 
                   ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2002 fiscal 
     years, the Secretary shall provide technical assistance, 
     cost-sharing payments, and incentive payments, education to 
     operators, who enter into contracts with the Secretary, 
     through an environmental quality incentives program in 
     accordance with this chapter.
       ``(2) Eligible practices.--
       ``(A) Structural practices.--An operator who implements a 
     structural practice shall be eligible for technical 
     assistance or cost-sharing payments, education or both.
       ``(B) Land management practices.--An operator who performs 
     a land management practice shall be eligible for technical 
     assistance or incentive payments, education or both.
       ``(b) Application and Term.--A contract between an operator 
     and the Secretary under this chapter may--
       ``(1) apply to 1 or more structural practices or 1 or more 
     land management practices, or both; and
       ``(2) have a term of not less than 5, nor more than 10, 
     years, as determined appropriate by the Secretary, depending 
     on the practice or practices that are the basis of the 
     contract.
       ``(c) Structural Practices.--
       ``(1) Competitive offer.--The Secretary shall administer a 
     competitive offer system for operators proposing to receive 
     cost-sharing payments in exchange for the implementation of 1 
     or more structural practices by the operator. The competitive 
     offer system shall consist of--
       ``(A) the submission of a competitive offer by the operator 
     in such manner as the Secretary may prescribe; and
       ``(B) evaluation of the offer in light of the priorities 
     established in section 1238C and the projected cost of the 
     proposal, as determined by the Secretary.
       ``(2) Concurrence of owner.--If the operator making an 
     offer to implement a structural practice is a tenant of the 
     land involved in agricultural production, for the offer to be 
     acceptable, the operator shall obtain the concurrence of the 
     owner of the land with respect to the offer.
       ``(d) Land Management Practices.--The Secretary shall 
     establish an application and evaluation process for awarding 
     technical assistance or incentive payments, or both, to an 
     operator in exchange for the performance of 1 or more land 
     management practices by the operator.
       ``(e) Cost-Sharing and Incentive Payments.--
       ``(1) Cost-sharing payments.--
       ``(A) In general.--The Federal share of cost-sharing 
     payments to an operator proposing to implement 1 or more 
     structural practices shall not be more than 75 percent of the 
     projected cost of the practice, as determined by the 
     Secretary, taking into consideration any payment received by 
     the operator from a State or local government.
       ``(B) Limitation.--An operator of a large confined 
     livestock operation shall not be eligible for cost-sharing 
     payments to construct an animal waste management facility.
       ``(C) Other payments.--An operator shall not be eligible 
     for cost-sharing payments for structural practices on 
     eligible land under this chapter if the operator receives 
     cost-sharing payments or other benefits for the same land 
     under chapter 1 or 3.
       ``(2) Incentive payments.--The Secretary shall make 
     incentive payments in an amount and at a rate determined by 
     the Secretary to be necessary to encourage an operator to 
     perform 1 or more land management practices.
       ``(f) Technical Assistance.--
       ``(1) Funding.--The Secretary shall allocate funding under 
     this chapter for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided in a fiscal year. The 
     allocated amount may vary according to the type of expertise 
     required, quantity of time involved, and other factors as 
     determined appropriate by the Secretary. Funding shall not 
     exceed the projected cost to the Secretary of the technical 
     assistance provided in a fiscal year.
       ``(2) Other authorities.--The receipt of technical 
     assistance under this chapter shall not affect the 
     eligibility of the operator to receive technical assistance 
     under other authorities of law available to the Secretary.
       ``(g) Modification or Termination of Contracts.--
       ``(1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with an 
     operator under this chapter if--
       ``(A) the operator agrees to the modification or 
     termination; and
       ``(B) the Secretary determines that the modification or 
     termination is in the public interest.
       ``(2) Involuntary termination.--The Secretary may terminate 
     a contract under this chapter if the Secretary determines 
     that the operator violated the contract.
       ``(h) Non-Federal Assistance.--
       ``(1) In general.--The Secretary may request the services 
     of a State water quality agency, State fish and wildlife 
     agency, State forestry agency, or any other governmental or 
     private resource considered appropriate to assist in 
     providing the technical assistance necessary for the 
     development and implementation of a structural practice or 
     land management practice.
       ``(2) Limitation on liability.--No person shall be 
     permitted to bring or pursue any claim or action against any 
     official or entity based on or resulting from any technical 
     assistance provided to an operator under this chapter to 
     assist in complying with a Federal or State environmental 
     law.

     ``SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

       ``(a) Regional Priorities.--The Secretary shall provide 
     technical assistance, cost-sharing payments, and incentive 
     payments to operators in a region, watershed, or conservation 
     priority area under this chapter based on the significance of 
     the soil, water, and related natural resource problems in the 
     region, watershed, or area, and the structural practices or 
     land management practices that best address the problems, as 
     determined by the Secretary.
       ``(b) Maximization of Environmental Benefits.--
       ``(1) In general.--In providing technical assistance, cost-
     sharing payments, and incentive payments to operators in 
     regions, watersheds, or conservation priority areas under 
     this chapter, the Secretary shall accord a higher priority to 
     assistance and payments that maximize environmental benefits 
     per dollar expended.
       ``(2) National and regional priority.--The prioritization 
     shall be done nationally as well as within the conservation 
     priority area, region, or watershed in which an agricultural 
     operation is located.
       ``(3) Criteria.--To carry out this subsection, the 
     Secretary shall establish criteria for implementing 
     structural practices and land management practices that best 
     achieve conservation goals for a region, watershed, or 
     conservation priority area, as determined by the Secretary.
       ``(c) State or Local Contributions.--The Secretary shall 
     accord a higher priority to operators whose agricultural 
     operations are located within watersheds, regions, or 
     conservation priority areas in which State or local 
     governments have provided, or will provide, financial or 
     technical assistance to the operators for the same 
     conservation or environmental purposes.
       ``(d) Priority Lands.--The Secretary shall accord a higher 
     priority to structural practices or land management practices 
     on lands on which agricultural production has been determined 
     to contribute to, or create, the potential for failure to 
     meet applicable water quality standards or other 
     environmental objectives of a Federal or State law.

     ``SEC. 1238D. DUTIES OF OPERATORS.

       ``To receive technical assistance, cost-sharing payments, 
     or incentives payments under this chapter, an operator shall 
     agree--
       ``(1) to implement an environmental quality incentives 
     program plan that describes conservation and environmental 
     goals to be achieved through a structural practice or land 
     management practice, or both, that is approved by the 
     Secretary;
       ``(2) not to conduct any practices on the farm or ranch 
     that would tend to defeat the purposes of this chapter;
       ``(3) on the violation of a term or condition of the 
     contract at any time the operator has control of the land, to 
     refund any cost-sharing or incentive payment received with 
     interest, and forfeit any future payments under this chapter, 
     as determined by the Secretary;
       ``(4) on the transfer of the right and interest of the 
     operator in land subject to the contract, unless the 
     transferee of the right and interest agrees with the 
     Secretary to assume all obligations of the contract, to 
     refund all cost-sharing payments and incentive payments 
     received under this chapter, as determined by the Secretary;
       ``(5) to supply information as required by the Secretary to 
     determine compliance with the environmental quality 
     incentives program plan and requirements of the program; and
       ``(6) to comply with such additional provisions as the 
     Secretary determines are necessary to carry out the 
     environmental quality incentives program plan.

     ``SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       ``An environmental quality incentives program plan shall 
     include (as determined by the Secretary)--
       ``(1) a description of the prevailing farm or ranch 
     enterprises, cropping patterns, grazing management, cultural 
     practices, or other information that may be relevant to 
     conserving and enhancing soil, water, and related natural 
     resources;
       ``(2) a description of relevant farm or ranch resources, 
     including soil characteristics, rangeland types and 
     condition, proximity to water bodies, wildlife habitat, or 
     other relevant characteristics of the farm or ranch 

[[Page S1211]]
     related to the conservation and environmental objectives set forth in 
     the plan;
       ``(3) a description of specific conservation and 
     environmental objectives to be achieved;
       ``(4) to the extent practicable, specific, quantitative 
     goals for achieving the conservation and environmental 
     objectives;
       ``(5) a description of 1 or more structural practices or 1 
     or more land management practices, or both, to be implemented 
     to achieve the conservation and environmental objectives;
       ``(6) a description of the timing and sequence for 
     implementing the structural practices or land management 
     practices, or both, that will assist the operator in 
     complying with Federal and State environmental laws; and
       ``(7) information that will enable evaluation of the 
     effectiveness of the plan in achieving the conservation and 
     environmental objectives, and that will enable evaluation of 
     the degree to which the plan has been implemented.
       ``(8) Not withstanding any provision of law, the Secretary 
     shall ensure that the process of writing, developing, and 
     assisting in the implementation of plans required in the 
     programs established under this title be open to individuals 
     in agribusiness including but not limited to agricultural 
     producers, representatives from agricultural cooperatives, 
     agricultural input retail dealers, and certified crop 
     advisers. This process shall be included in but not limited 
     to programs and plans established under this title and any 
     other Department program using incentive, technical 
     assistance, cost-share or pilot project programs that require 
     plans.

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

       ``To the extent appropriate, the Secretary shall assist an 
     operator in achieving the conservation and environmental 
     goals of an environmental quality incentives program plan 
     by--
       ``(1) providing an eligibility assessment of the farming or 
     ranching operation of the operator as a basis for developing 
     the plan;
       ``(2) providing technical assistance in developing and 
     implementing the plan;
       ``(3) providing technical assistance, cost-sharing 
     payments, or incentive payments for developing and 
     implementing 1 or more structural practices or 1 or more land 
     management practices, as appropriate;
       ``(4) providing the operator with information, education, 
     and training to aid in implementation of the plan; and
       ``(5) encouraging the operator to obtain technical 
     assistance, cost-sharing payments, or grants from other 
     Federal, State, local, or private sources.

     ``SEC. 1238G. ELIGIBLE LANDS.

       ``Agricultural land on which a structural practice or land 
     management practice, or both, shall be eligible for technical 
     assistance, cost-sharing payments, or incentive payments 
     under this chapter include--
       ``(1) agricultural land (including cropland, rangeland, 
     pasture, and other land on which crops or livestock are 
     produced) that the Secretary determines poses a serious 
     threat to soil, water, or related resources by reason of the 
     soil types, terrain, climatic, soil, topographic, flood, or 
     saline characteristics, or other factors or natural hazards;
       ``(2) an area that is considered to be critical 
     agricultural land on which either crop or livestock 
     production is carried out, as identified in a plan submitted 
     by the State under section 319 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1329) as having priority problems that 
     result from an agricultural nonpoint source of pollution;
       ``(3) an area recommended by a State lead agency for 
     protection of soil, water, and related resources, as 
     designated by a Governor of a State; and
       ``(4) land that is not located within a designated or 
     approved area, but that if permitted to continue to be 
     operated under existing management practices, would defeat 
     the purpose of the environmental quality incentives program, 
     as determined by the Secretary.

     ``SEC. 1238H. LIMITATIONS ON PAYMENTS.

       ``(a) Payments.--The total amount of cost-sharing and 
     incentive payments paid to a person under this chapter may 
     not exceed--
       ``(1) $10,000 for any fiscal year; or
       ``(2) $50,000 for any multiyear contract.
       ``(b) Regulations.--The Secretary shall issue regulations 
     that are consistent with section 1001 for the purpose of--
       ``(1) defining the term `person' as used in subsection (a); 
     and
       ``(2) prescribing such rules as the Secretary determines 
     necessary to ensure a fair and reasonable application of the 
     limitations contained in subsection (a).''.
                    Subtitle C--Conservation Funding

     SEC. 321. CONSERVATION FUNDING.

       (a) In General.--Subtitle E of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended to 
     read as follows:
                         ``Subtitle E--Funding

     ``SEC. 1241. FUNDING.

       ``(a) Mandatory Expenses.--For each of fiscal years 1996 
     through 2002, the Secretary shall use the funds of the 
     Commodity Credit Corporation to carry out the programs 
     authorized by--
       ``(1) subchapter B of chapter 1 of subtitle D (including 
     contracts extended by the Secretary pursuant to section 1437 
     of the Food, Agriculture, Conservation, and Trade Act of 1990 
     (Public Law 101-624; 16 U.S.C. 3831 note));
       ``(2) subchapter C of chapter 1 of subtitle D; and
       ``(3) chapter 4 of subtitle D.
       ``(b) Environmental Quality Incentives Program.--
       ``(1) In general.--For each of fiscal years 1996 through 
     2002, $200,000,000 of the funds of the Commodity Credit 
     Corporation shall be available for providing technical 
     assistance, cost-sharing payments, and incentive payments 
     under the environmental quality incentives program under 
     chapter 4 of subtitle D.
       ``(2) Livestock production.--For each of fiscal years 1996 
     through 2002, 50 percent of the funding available for 
     technical assistance, cost-sharing payments, and incentive 
     payments under the environmental quality incentives program 
     shall be targeted at practices relating to livestock 
     production.
       ``(c) Advance Appropriations to CCC.--The Secretary may use 
     the funds of the Commodity Credit Corporation to carry out 
     chapter 3 of subtitle D, except that the Secretary may not 
     use the funds of the Corporation unless the Corporation has 
     received funds to cover the expenditures from appropriations 
     made available to carry out chapter 3 of subtitle D.

     ``SEC. 1242. ADMINISTRATION.

       ``(a) Plans.--The Secretary shall, to the extent 
     practicable, avoid duplication in--
       ``(1) the conservation plans required for--
       ``(A) highly erodible land conservation under subtitle B;
       ``(B) the conservation reserve program established under 
     subchapter B of chapter 1 of subtitle D; and
       ``(C) the wetlands reserve program established under 
     subchapter C of chapter 1 of subtitle D; and
       ``(2) the environmental quality incentives program 
     established under chapter 4 of subtitle D.
       ``(b) Acreage Limitation.--
       ``(1) In general.--The Secretary shall not enroll more than 
     25 percent of the cropland in any county in the programs 
     administered under the conservation reserve and wetlands 
     reserve programs established under subchapters B and C, 
     respectively, of chapter 1 of subtitle D. Not more than 10 
     percent of the cropland in a county may be subject to an 
     easement acquired under the subchapters.
       ``(2) Exception.--The Secretary may exceed the limitations 
     in paragraph (1) if the Secretary determines that--
       ``(A) the action would not adversely affect the local 
     economy of a county; and
       ``(B) operators in the county are having difficulties 
     complying with conservation plans implemented under section 
     1212.
       ``(3) Shelterbelts and windbreaks.--The limitations 
     established under this subsection shall not apply to cropland 
     that is subject to an easement under chapter 1 or 3 of 
     subtitle D that is used for the establishment of shelterbelts 
     and windbreaks.
       ``(c) Tenant Protection.--Except for a person who is a 
     tenant on land that is subject to a conservation reserve 
     contract that has been extended by the Secretary, the 
     Secretary shall provide adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing, on a fair and equitable basis, in payments under 
     the programs established under subtitles B through D.
       ``(d) Regulations.--Not later than 90 days after the 
     effective date of this subsection, the Secretary shall issue 
     regulations to implement the conservation reserve and 
     wetlands reserve programs established under chapter 1 of 
     subtitle D.''.
     Subtitle D--National Natural Resources Conservation Foundation

     SEC. 331. SHORT TITLE.

       This subtitle may be cited as the ``National Natural 
     Resources Conservation Foundation Act''.

     SEC. 332. DEFINITIONS.

       In this subtitle (unless the context otherwise requires):
       (1) Board.--The term ``Board'' means the Board of Trustees 
     established under section 334.
       (2) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (3) Foundation.--The term ``Foundation'' means the National 
     Natural Resources Conservation Foundation established by 
     section 333(a).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

       (a) Establishment.--A National Natural Resources 
     Conservation Foundation is established as a charitable and 
     nonprofit corporation for charitable, scientific, and 
     educational purposes specified in subsection (b). The 
     Foundation is not an agency or instrumentality of the United 
     States.
       (b) Purposes.--The purposes of the Foundation are to--
       (1) promote innovative solutions to the problems associated 
     with the conservation of natural resources on private lands, 
     particularly with respect to agriculture and soil and water 
     conservation;
       (2) promote voluntary partnerships between government and 
     private interests in the conservation of natural resources;
       (3) conduct research and undertake educational activities, 
     conduct and support demonstration projects, and make grants 
     to State and local agencies and nonprofit organizations;
       (4) provide such other leadership and support as may be 
     necessary to address conservation challenges, such as the 
     prevention of excessive soil erosion, enhancement of soil 

[[Page S1212]]
     and water quality, and the protection of wetlands, wildlife habitat, 
     and strategically important farmland subject to urban 
     conversion and fragmentation;
       (5) encourage, accept, and administer private gifts of 
     money and real and personal property for the benefit of, or 
     in connection with, the conservation and related activities 
     and services of the Department, particularly the Natural 
     Resources Conservation Service;
       (6) undertake, conduct, and encourage educational, 
     technical, and other assistance, and other activities, that 
     support the conservation and related programs administered by 
     the Department (other than activities carried out on National 
     Forest System lands), particularly the Natural Resources 
     Conservation Service, except that the Foundation may not 
     enforce or administer a regulation of the Department; and
       (7) raise private funds to promote the purposes of the 
     Foundation.
       (c) Limitations and Conflicts of Interests.--
       (1) Political activities.--The Foundation shall not 
     participate or intervene in a political campaign on behalf of 
     any candidate for public office.
       (2) Conflicts of interest.--No director, officer, or 
     employee of the Foundation shall participate, directly or 
     indirectly, in the consideration or determination of any 
     question before the Foundation affecting--
       (A) the financial interests of the director, officer, or 
     employee; or
       (B) the interests of any corporation, partnership, entity, 
     organization, or other person in which the director, officer, 
     or employee--
       (i) is an officer, director, or trustee; or
       (ii) has any direct or indirect financial interest.
       (3) Legislation or government action or policy.--No funds 
     of the Foundation may be used in any manner for the purpose 
     of influencing legislation or government action or policy.
       (4) Litigation.--No funds of the Foundation may be used to 
     bring or join an action against the United States or any 
     State.

     SEC. 334. COMPOSITION AND OPERATION.

       (a) Composition.--The Foundation shall be administered by a 
     Board of Trustees that shall consist of 9 voting members, 
     each of whom shall be a United States citizen and not a 
     Federal officer. The Board shall be composed of--
       (1) individuals with expertise in agricultural conservation 
     policy matters;
       (2) a representative of private sector organizations with a 
     demonstrable interest in natural resources conservation;
       (3) a representative of statewide conservation 
     organizations;
       (4) a representative of soil and water conservation 
     districts;
       (5) a representative of organizations outside the Federal 
     Government that are dedicated to natural resources 
     conservation education; and
       (6) a farmer or rancher.
       (b) Nongovernmental Employees.--Service as a member of the 
     Board shall not constitute employment by, or the holding of, 
     an office of the United States for the purposes of any 
     Federal law.
       (c) Membership.--
       (1) Initial members.--The Secretary shall appoint 9 persons 
     who meet the criteria established under subsection (a) as the 
     initial members of the Board and designate 1 of the members 
     as the initial chairperson for a 2-year term.
       (2) Terms of office.--
       (A) In general.--A member of the Board shall serve for a 
     term of 3 years, except that the members appointed to the 
     initial Board shall serve, proportionately, for terms of 1, 
     2, and 3 years, as determined by the Secretary.
       (B) Limitation on terms.--No individual may serve more than 
     2 consecutive 3-year terms as a member.
       (3) Subsequent members.--The initial members of the Board 
     shall adopt procedures in the constitution of the Foundation 
     for the nomination and selection of subsequent members of the 
     Board. The procedures shall require that each member, at a 
     minimum, meets the criteria established under subsection (a) 
     and shall provide for the selection of an individual, who is 
     not a Federal officer or a member of the Board.
       (d) Chairperson.--After the appointment of an initial 
     chairperson under subsection (c)(1), each succeeding 
     chairperson of the Board shall be elected by the members of 
     the Board for a 2-year term.
       (e) Vacancies.--A vacancy on the Board shall be filled by 
     the Board not later than 60 days after the occurrence of the 
     vacancy.
       (f) Compensation.--A member of the Board shall receive no 
     compensation from the Foundation for the service of the 
     member on the Board.
       (g) Travel Expenses.--While away from the home or regular 
     place of business of a member of the Board in the performance 
     of services for the Board, the member shall be allowed travel 
     expenses paid by the Foundation, including per diem in lieu 
     of subsistence, at the same rate as a person employed 
     intermittently in the Government service would be allowed 
     under section 5703 of title 5, United States Code.

     SEC. 335. OFFICERS AND EMPLOYEES.

       (a) In General.--The Board may--
       (1) appoint, hire, and discharge the officers and employees 
     of the Foundation, other than the appointment of the initial 
     Executive Director of the Foundation;
       (2) adopt a constitution and bylaws for the Foundation that 
     are consistent with the purposes of the Foundation and this 
     subtitle; and
       (3) undertake any other activities that may be necessary to 
     carry out this subtitle.
       (b) Officers and Employees.--
       (1) Appointment and hiring.--An officer or employee of the 
     Foundation--
       (A) shall not, by virtue of the appointment or employment 
     of the officer or employee, be considered a Federal employee 
     for any purpose, including the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, except that such an individual may participate in 
     the Federal employee retirement system as if the individual 
     were a Federal employee; and
       (B) may not be paid by the Foundation a salary in excess of 
     $125,000 per year.
       (2) Executive director.--
       (A) Initial director.--The Secretary shall appoint an 
     individual to serve as the initial Executive Director of the 
     Foundation who shall serve, at the direction of the Board, as 
     the chief operating officer of the Foundation.
       (B) Subsequent directors.--The Board shall appoint each 
     subsequent Executive Director of the Foundation who shall 
     serve, at the direction of the Board, as the chief operating 
     officer of the Foundation.
       (C) Qualifications.--The Executive Director shall be 
     knowledgeable and experienced in matters relating to natural 
     resources conservation.

     SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

       (a) In General.--The Foundation--
       (1) may conduct business throughout the United States and 
     the territories and possessions of the United States; and
       (2) shall at all times maintain a designated agent who is 
     authorized to accept service of process for the Foundation, 
     so that the serving of notice to, or service of process on, 
     the agent, or mailed to the business address of the agent, 
     shall be considered as service on or notice to the 
     Foundation.
       (b) Seal.--The Foundation shall have an official seal 
     selected by the Board that shall be judicially noticed.
       (c) Powers.--To carry out the purposes of the Foundation 
     under section 333(b), the Foundation shall have, in addition 
     to the powers otherwise provided under this subtitle, the 
     usual powers of a corporation, including the power--
       (1) to accept, receive, solicit, hold, administer, and use 
     any gift, devise, or bequest, either absolutely or in trust, 
     of real or personal property or any income from, or other 
     interest in, the gift, devise, or bequest;
       (2) to acquire by purchase or exchange any real or personal 
     property or interest in property, except that funds provided 
     under section 310 may not be used to purchase an interest in 
     real property;
       (3) unless otherwise required by instrument of transfer, to 
     sell, donate, lease, invest, reinvest, retain, or otherwise 
     dispose of any property or income from property;
       (4) to borrow money from private sources and issue bonds, 
     debentures, or other debt instruments, subject to section 
     339, except that the aggregate amount of the borrowing and 
     debt instruments outstanding at any time may not exceed 
     $1,000,000;
       (5) to sue and be sued, and complain and defend itself, in 
     any court of competent jurisdiction, except that a member of 
     the Board shall not be personally liable for an action in the 
     performance of services for the Board, except for gross 
     negligence;
       (6) to enter into a contract or other agreement with an 
     agency of State or local government, educational institution, 
     or other private organization or person and to make such 
     payments as may be necessary to carry out the functions of 
     the Foundation; and
       (7) to do any and all acts that are necessary to carry out 
     the purposes of the Foundation.
       (d) Interest in Property.--
       (1) In general.--The Foundation may acquire, hold, and 
     dispose of lands, waters, or other interests in real property 
     by donation, gift, devise, purchase, or exchange.
       (2) Interests in real property.--For purposes of this 
     subtitle, an interest in real property shall be treated, 
     among other things, as including an easement or other right 
     for the preservation, conservation, protection, or 
     enhancement of agricultural, natural, scenic, historic, 
     scientific, educational, inspirational, or recreational 
     resources.
       (3) Gifts.--A gift, devise, or bequest may be accepted by 
     the Foundation even though the gift, devise, or bequest is 
     encumbered, restricted, or subject to a beneficial interest 
     of a private person if any current or future interest in the 
     gift, devise, or bequest is for the benefit of the 
     Foundation.

     SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

       For each of fiscal years 1996 through 1998, the Secretary 
     may provide, without reimbursement, personnel, facilities, 
     and other administrative services of the Department to the 
     Foundation.

     SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL FOR 
                   EQUITABLE RELIEF.

       (a) Audits.--
       (1) In general.--The accounts of the Foundation shall be 
     audited in accordance with Public Law 88-504 (36 U.S.C. 1101 
     et seq.), including an audit of lobbying and litigation 
     activities carried out by the Foundation.
       (2) Conforming amendment.--The first section of Public Law 
     88-504 (36 U.S.C. 1101) is amended by adding at the end the 
     following:
       ``(77) The National Natural Resources Conservation 
     Foundation.''.
     
[[Page S1213]]

       (b) Relief with Respect to Certain Foundation Acts or 
     Failure to Act.--The Attorney General may petition in the 
     United States District Court for the District of Columbia for 
     such equitable relief as may be necessary or appropriate, if 
     the Foundation--
       (1) engages in, or threatens to engage in, any act, 
     practice, or policy that is inconsistent with this subtitle; 
     or
       (2) refuses, fails, neglects, or threatens to refuse, fail, 
     or neglect, to discharge the obligations of the Foundation 
     under this subtitle.

     SEC. 339. RELEASE FROM LIABILITY.

       (a) In General.--The United States shall not be liable for 
     any debt, default, act, or omission of the Foundation. The 
     full faith and credit of the United States shall not extend 
     to the Foundation.
       (b) Statement.--An obligation issued by the Foundation, and 
     a document offering an obligation, shall include a prominent 
     statement that the obligation is not directly or indirectly 
     guaranteed, in whole or in part, by the United States (or an 
     agency or instrumentality of the United States).

     SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Department 
     to be made available to the Foundation $1,000,000 for each of 
     fiscal years 1997 through 1999 to initially establish and 
     carry out activities of the Foundation.
                       Subtitle E--Miscellaneous

     SEC. 351. FLOOD RISK REDUCTION.

       (a) In General.--During fiscal years 1996 through 2002, the 
     Secretary of Agriculture (referred to in this section as the 
     ``Secretary'') may enter into a contract with contract 
     acreage under title I on a farm with land that is frequently 
     flooded.
       (b) Duties of Producers.--Under the terms of the contract, 
     with respect to acres that are subject to the contract, the 
     producer must agree to--
       (1) the termination of any contract acreage;
       (2) forgo loans for contract commodities, oilseeds, and 
     extra long staple cotton;
       (3) not apply for crop insurance issued or reinsured by the 
     Secretary;
       (4) comply with applicable wetlands and high erodible land 
     conservation compliance requirements established under title 
     XII of the Food Security Act of 1985 (16 U.S.C. 3801 et 
     seq.);
       (5) not apply for any conservation program payments from 
     the Secretary;
       (6) not apply for disaster program benefits provided by the 
     Secretary; and
       (7) refund the payments, with interest, issued under the 
     flood risk reduction contract to the Secretary, if the 
     producer violates the terms of the contract or if the 
     producer transfers the property to another person who 
     violates the contract.
       (c) Duties of Secretary.--In return for a flood risk 
     reduction contract entered into by a producer under this 
     section, the Secretary shall agree to pay the producer for 
     the 1996 through 2002 crops not more than 95 percent of the 
     projected contract payments under title I, and not more than 
     95 percent of the projected payments and subsidies from the 
     Federal Crop Insurance Corporation.
       (d) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.

     SEC. 352. FORESTRY.

       (a) Forestry Incentives Program.--Section 4 of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) 
     is amended by striking subsection (k).
       (b) Office of International Forestry.--Section 2405 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 6704) is amended by adding at the end the following:
       ``(d) Authorization of Appropriations.--There are 
     authorized each fiscal year such sums as are necessary to 
     carry out this section.''.

     SEC. 353. STATE TECHNICAL COMMITTEES.

       Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 
     3861(c)) is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(9) agricultural producers;
       ``(10) other nonprofit organizations with demonstrable 
     expertise;
       ``(11) persons knowledgeable about the economic and 
     environmental impact of conservation techniques and programs; 
     and
       ``(12) agribusiness''.

     SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

       (a) Findings.--Congress finds that--
       (1) privately owned grazing land constitutes nearly \1/2\ 
     of the non-Federal land of the United States and is basic to 
     the environmental, social, and economic stability of rural 
     communities;
       (2) privately owned grazing land contains a complex set of 
     interactions among soil, water, air, plants, and animals;
       (3) grazing land constitutes the single largest watershed 
     cover type in the United States and contributes significantly 
     to the quality and quantity of water available for all of the 
     many uses of the land;
       (4) private grazing land constitutes the most extensive 
     wildlife habitat in the United States;
       (5) private grazing land can provide opportunities for 
     improved nutrient management from land application of animal 
     manures and other by-product nutrient resources;
       (6) owners and managers of private grazing land need to 
     continue to recognize conservation problems when the problems 
     arise and receive sound technical assistance to improve or 
     conserve grazing land resources to meet ecological and 
     economic demands;
       (7) new science and technology must continually be made 
     available in a practical manner so owners and managers of 
     private grazing land may make informed decisions concerning 
     vital grazing land resources;
       (8) agencies of the Department of Agriculture with private 
     grazing land responsibilities are the agencies that have the 
     expertise and experience to provide technical assistance, 
     education, and research to owners and managers of private 
     grazing land for the long-term productivity and ecological 
     health of grazing land;
       (9) although competing demands on private grazing land 
     resources are greater than ever before, assistance to private 
     owners and managers of private grazing land is currently 
     limited and does not meet the demand and basic need for 
     adequately sustaining or enhancing the private grazing lands 
     resources; and
       (10) privately owned grazing land can be enhanced to 
     provide many benefits to all Americans through voluntary 
     cooperation among owners and managers of the land, local 
     conservation districts, and the agencies of the Department of 
     Agriculture responsible for providing assistance to owners 
     and managers of land and to conservation districts.
       (b) Purpose.--It is the purpose of this section to 
     authorize the Secretary of Agriculture to provide a 
     coordinated technical, educational, and related assistance 
     program to conserve and enhance private grazing land 
     resources and provide related benefits to all citizens of the 
     United States by--
       (1) establishing a coordinated and cooperative Federal, 
     State, and local grazing conservation program for management 
     of private grazing land;
       (2) strengthening technical, educational, and related 
     assistance programs that provide assistance to owners and 
     managers of private grazing land;
       (3) conserving and improving wildlife habitat on private 
     grazing land;
       (4) conserving and improving fish habitat and aquatic 
     systems through grazing land conservation treatment;
       (5) protecting and improving water quality;
       (6) improving the dependability and consistency of water 
     supplies;
       (7) identifying and managing weed, noxious weed, and brush 
     encroachment problems on private grazing land; and
       (8) integrating conservation planning and management 
     decisions by owners and managers of private grazing land, on 
     a voluntary basis.
       (c) Definitions.--In this section:
       (1) Private grazing land.--The term ``private grazing 
     land'' means privately owned, State-owned, tribally-owned, 
     and any other non-federally owned rangeland, pastureland, 
     grazed forest land, and hay land.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Natural Resources 
     Conservation Service.
       (d) Private Grazing Land Conservation Assistance.--
       (1) Assistance to grazing landowners and others.--Subject 
     to the availability of appropriations, the Secretary shall 
     establish a voluntary program to provide technical, 
     educational, and related assistance to owners and managers of 
     private grazing land and public agencies, through local 
     conservation districts, to enable the landowners, managers, 
     and public agencies to voluntarily carry out activities that 
     are consistent with this section, including--
       (A) maintaining and improving private grazing land and the 
     multiple values and uses that depend on private grazing land;
       (B) implementing grazing land management technologies;
       (C) managing resources on private grazing land, including--
       (i) planning, managing, and treating private grazing land 
     resources;
       (ii) ensuring the long-term sustainability of private 
     grazing land resources;
       (iii) harvesting, processing, and marketing private grazing 
     land resources; and
       (iv) identifying and managing weed, noxious weed, and brush 
     encroachment problems;
       (D) protecting and improving the quality and quantity of 
     water yields from private grazing land;
       (E) maintaining and improving wildlife and fish habitat on 
     private grazing land;
       (F) enhancing recreational opportunities on private grazing 
     land;
       (G) maintaining and improving the aesthetic character of 
     private grazing lands; and
       (H) identifying the opportunities and encouraging the 
     diversification of private grazing land enterprises.
       (2) Program elements.--
       (A) Funding.--The program under paragraph (1) shall be 
     funded through a specific line-item in the annual 
     appropriations for the Natural Resources Conservation 
     Service.
       (B) Technical assistance and education.--Personnel of the 
     Department of Agriculture trained in pasture and range 
     management shall be made available under the program to 
     deliver and coordinate technical assistance and education to 
     owners and managers of private grazing land, at the request 
     of the owners and managers.
     
[[Page S1214]]

       (e) Grazing Technical Assistance Self-Help.--
       (1) Findings.--Congress finds that--
       (A) there is a severe lack of technical assistance for 
     grazing producers;
       (B) the Federal budget precludes any significant expansion, 
     and may force a reduction of, current levels of technical 
     support; and
       (C) farmers and ranchers have a history of cooperatively 
     working together to address common needs in the promotion of 
     their products and in the drainage of wet areas through 
     drainage districts.
       (2) Establishment of grazing demonstration.--The Secretary 
     may establish 2 grazing management demonstration districts at 
     the recommendation of the Grazing Lands Conservation 
     Initiative Steering Committee.
       (3) Procedure.--
       (A) Proposal.--Within a reasonable time after the 
     submission of a request of an organization of farmers or 
     ranchers engaged in grazing, the Secretary shall propose that 
     a grazing management district be established.
       (B) Funding.--The terms and conditions of the funding and 
     operation of the grazing management district shall be 
     proposed by the producers.
       (C) Approval.--The Secretary shall approve the proposal if 
     the Secretary determines that the proposal--
       (i) is reasonable;
       (ii) will promote sound grazing practices; and
       (iii) contains provisions similar to the provisions 
     contained in the promotion orders in effect on the effective 
     date of this section.
       (D) Area included.--The area proposed to be included in a 
     grazing management district shall be determined by the 
     Secretary on the basis of a petition by farmers or ranchers.
       (E) Authorization.--The Secretary may use authority under 
     the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, to operate, on a demonstration basis, 
     a grazing management district.
       (F) Activities.--The activities of a grazing management 
     district shall be scientifically sound activities, as 
     determined by the Secretary in consultation with a technical 
     advisory committee composed of ranchers, farmers, and 
     technical experts.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $20,000,000 for fiscal year 1996;
       (2) $40,000,000 for fiscal year 1997; and
       (3) $60,000,000 for fiscal year 1998 and each subsequent 
     fiscal year.

     SEC. 355. CONFORMING AMENDMENTS.

       (a) Agricultural Conservation Program.--
       (1) Elimination.--
       (A) Section 8 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h) is amended--
       (i) in subsection (b)--

       (I) by striking paragraphs (1) through (4) and inserting 
     the following:

       ``(1) Environmental quality incentives program.--The 
     Secretary shall provide technical assistance, cost share 
     payments, and incentive payments to operators through the 
     environmental quality incentives program in accordance with 
     chapter 2 of subtitle D of the Food Security Act of 1985 (16 
     U.S.C. 3838 et seq.).''; and

       (II) by striking paragraphs (6) through (8); and

       (ii) by striking subsections (d), (e), and (f).
       (B) The first sentence of section 11 of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590k) is 
     amended by striking ``performance: Provided further,'' and 
     all that follows through ``or other law'' and inserting 
     ``performance''.
       (C) Section 14 of the Act (16 U.S.C. 590n) is amended--
       (i) in the first sentence, by striking ``or 8''; and
       (ii) by striking the second sentence.
       (D) Section 15 of the Act (16 U.S.C. 590o) is amended--
       (i) in the first undesignated paragraph--

       (I) in the first sentence, by striking ``sections 7 and 8'' 
     and inserting ``section 7''; and
       (II) by striking the third sentence; and

       (ii) by striking the second undesignated paragraph.
       (2) Conforming amendments.--
       (A) Paragraph (1) of the last proviso of the matter under 
     the heading ``conservation reserve program'' under the 
     heading ``Soil Bank Programs'' of title I of the Department 
     of Agriculture and Farm Credit Administration Appropriation 
     Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a) is amended by 
     striking ``Agricultural Conservation Program'' and inserting 
     ``environmental quality incentives program established under 
     chapter 2 of subtitle D of the Food Security Act of 1985 (16 
     U.S.C. 3838 et seq.)''.
       (B) Section 4 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103) is amended by striking ``as added by 
     the Agriculture and Consumer Protection Act of 1973'' each 
     place it appears in subsections (d) and (i) and inserting 
     ``as in effect before the amendment made by section 355(a)(1) 
     of the Agricultural Reform and Improvement Act of 1996''.
       (C) Section 226(b)(4) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6932(b)(4)) is amended 
     by striking ``and the agricultural conservation program under 
     the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590g et seq.)''.
       (D) Section 246(b)(8) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6962(b)(8)) is amended 
     by striking ``and the agricultural conservation program under 
     the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590g et seq.)''.
       (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (16 U.S.C. 
     2106a(c)(3)(C)) is amended by striking ``Agricultural 
     Conservation Program established under section 16(b) of the 
     Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h, 
     590l, or 590p)'' and inserting ``environmental quality 
     incentives program established under chapter 2 of subtitle D 
     of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)''.
       (F) Section 126(a)(5) of the Internal Revenue Code of 1986 
     is amended to read as follows:
       ``(5) The environmental quality incentives program 
     established under chapter 2 of subtitle D of the Food 
     Security Act of 1985 (16 U.S.C. 3838 et seq.).''.
       (G) Section 304(a) of the Lake Champlain Special 
     Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 1270 
     note) is amended--
       (i) in the subsection heading, by striking ``Special 
     Project Area Under the Agricultural Conservation Program'' 
     and inserting ``A Priority Area Under the Environmental 
     Quality Incentives Program''; and
       (ii) in paragraph (1), by striking ``special project area 
     under the Agricultural Conservation Program established under 
     section 8(b) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(b))'' and inserting ``priority area under 
     the environmental quality incentives program established 
     under chapter 2 of subtitle D of the Food Security Act of 
     1985 (16 U.S.C. 3838 et seq.)''.
       (H) Section 6 of the Department of Agriculture Organic Act 
     of 1956 (70 Stat. 1033) is amended by striking subsection 
     (b).
       (b) Great Plains Conservation Program.--
       (1) Elimination.--Section 16 of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590p) is repealed.
       (2) Conforming amendments.--
       (A) The Agricultural Adjustment Act of 1938 is amended by 
     striking ``Great Plains program'' each place it appears in 
     sections 344(f)(8) and 377 (7 U.S.C. 1344(f)(8) and 1377) and 
     inserting ``environmental quality incentives program 
     established under chapter 2 of subtitle D of the Food 
     Security Act of 1985 (16 U.S.C. 3838 et seq.)''.
       (B) Section 246(b) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended by 
     striking paragraph (2).
       (C) Section 126(a) of the Internal Revenue Code of 1986 is 
     amended--
       (i) by striking paragraph (6); and
       (ii) by redesignating paragraphs (7) through (10) as 
     paragraphs (6) through (9), respectively.
       (c) Colorado River Basin Salinity Control Program.--
       (1) Elimination.--Section 202 of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592) is amended by striking 
     subsection (c).
       (2) Conforming amendment.--Section 246(b) of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) 
     is amended by striking paragraph (6).
       (d) Rural Environmental Conservation Program.--
       (1) Elimination.--Title X of the Agricultural Act of 1970 
     (16 U.S.C. 1501 et seq.) is repealed.
       (2) Conforming amendments.--Section 246(b) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6962(b)) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (8) as 
     paragraphs (1) through (7), respectively.
       (e) Other Conservation Provisions.--Subtitle F of title XII 
     of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 
     note) is repealed.
       (f) Commodity Credit Corporation Charter Act.--Section 5(g) 
     of the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714c(g)) is amended to read as follows:
       ``(g) Carry out conservation functions and programs.''.
       (g) Resource Conservation.--
       (1) Elimination.--Subtitles A, B, D, E, F, G, and J of 
     title XV of the Agriculture and Food Act of 1981 (95 Stat. 
     1328; 16 U.S.C. 3401 et seq.) are repealed.
       (2) Conforming amendment.--Section 739 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1982 (7 U.S.C. 2272a), is 
     repealed.
       (h) Environmental Easement Program.--Section 1239(a) of the 
     Food Security Act of 1985 (16 U.S.C. 3839(a)) is amended by 
     striking ``1991 through 1995'' and inserting ``1996 through 
     2002''.
       (i) Resource Conservation and Development Program.--Section 
     1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 3461) 
     is amended by striking ``1991 through 1995'' and inserting 
     ``1996 through 2002''.
       (j) Technical Amendment.--The first sentence of the matter 
     under the heading ``Commodity Credit Corporation'' of Public 
     Law 99-263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by 
     striking ``: Provided further,'' and all that follows through 
     ``Acts''.
       (k) Agricultural Water Quality Incentives Program.--Chapter 
     2 of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3838 et seq.) is repealed.
     
[[Page S1215]]


     SEC. 356. WATER BANK PROGRAM.

       Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
     3830) is amended by adding at the end the following:
       ``(d) Water Bank Program.--For purposes of this Act, 
     acreage enrolled, prior to the date of enactment of this 
     subsection, in the water bank program authorized by the Water 
     Bank Act (16 U.S.C. 1301 et seq.) shall be considered to have 
     been enrolled in the conservation reserve program on the date 
     the acreage was enrolled in the water bank program. Payments 
     shall continue at the existing water bank rates.''.

     SEC. 357. FLOOD WATER RETENTION PILOT PROJECTS.

       Section 16 of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590p) is amended by adding at the end the 
     following:
       ``(l) Flood Water Retention Pilot Projects.--
       ``(1) In general.--In cooperation with States, the 
     Secretary shall carry out at least 1 but not more than 2 
     pilot projects to create and restore natural water retention 
     areas to control storm water and snow melt runoff within 
     closed drainage systems.
       ``(2) Practices.--To carry out paragraph (1), the Secretary 
     shall provide cost-sharing and technical assistance for the 
     establishment of nonstructural landscape management 
     practices, including agricultural tillage practices and 
     restoration, enhancement, and creation of wetland 
     characteristics.
       ``(3) Funding.--
       ``(A) Limitation.--The funding used by the Secretary to 
     carry out this subsection shall not exceed $10,000,000 per 
     project.
       ``(B) Use of commodity credit corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this subsection.
       ``(4) Additional pilot projects.--
       ``(A) Evaluation.--Not later than 2 years after a pilot 
     project is implemented, the Secretary shall evaluate the 
     extent to which the project has reduced or may reduce Federal 
     outlays for emergency spending and unplanned infrastructure 
     maintenance by an amount that exceeds the Federal cost of the 
     project.
       ``(B) Additional projects.--If the Secretary determines 
     that pilot projects carried out under this subsection have 
     reduced or may reduce Federal outlays as described in 
     subparagraph (A), the Secretary may carry out, in accordance 
     with this subsection, pilot projects in addition to the 
     projects authorized under paragraph (1).''.

     SEC. 358. WETLAND CONSERVATION EXEMPTION.

       Section 1222(b)(1) of the Food Security Act of 1985 (16 
     U.S.C. 3822(b)(1)) is amended--
       (1) in subparagraph (C), by striking ``or'' at the end; and
       (2) by adding at the end the following:
       ``(E) converted wetland, if--
       ``(i) the extent of the conversion is limited to the 
     reversion to conditions that will be at least equivalent to 
     the wetland functions and values that existed prior to 
     implementation of a voluntary wetland restoration, 
     enhancement, or creation action;
       ``(ii) technical determinations of the prior site 
     conditions and the restoration, enhancement, or creation 
     action have been adequately documented in a plan approved by 
     the Natural Resources Conservation Service prior to 
     implementation; and
       ``(iii) the conversion action proposed by the private 
     landowner is approved by the Natural Resources Conservation 
     Service prior to implementation; or''.

     SEC. 359. FLOODPLAIN EASEMENTS.

       Section 403 of the Agricultural Credit Act of 1978 (16 
     U.S.C. 2203) is amended by inserting ``, including the 
     purchase of floodplain easements,'' after ``emergency 
     measures''.

     SEC. 360. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM 
                   REAUTHORIZATION.

       Section 1538 of the Agriculture and Food Act of 1981 (16 
     U.S.C. 3461) is amended by striking ``1991 through 1995'' and 
     inserting ``1996 through 2001''.

     SEC. 361. CONSERVATION RESERVE NEW ACREAGE.

       Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 
     3831(a)) is amended by adding at the end the following: ``The 
     Secretary may enter into 1 or more new contracts to enroll 
     acreage in a quantity equal to the quantity of acreage 
     covered by any contract that terminates after the date of 
     enactment of the Agricultural Market Transition Act.''.

     SEC. 362. REPEAL OF REPORT REQUIREMENT.

       Section 1342 of title 44, United States Code, is repealed.

     SEC. 363. WATERSHED PROTECTION AND FLOOD PREVENTION ACT 
                   AMENDMENTS.

       (a) Declaration of Policy.--The first section of the 
     Watershed Protection and Flood Prevention Act (16 U.S.C. 
     1001) is amended to read as follows:

     ``SECTION 1. DECLARATION OF POLICY.

       ``Erosion, flooding, sedimentation, and loss of natural 
     habitats in the watersheds and waterways of the United States 
     cause loss of life, damage to property, and a reduction in 
     the quality of environment and life of citizens. It is 
     therefore the sense of Congress that the Federal Government 
     should join with States and their political subdivisions, 
     public agencies, conservation districts, flood prevention or 
     control districts, local citizens organizations, and Indian 
     tribes for the purpose of conserving, protecting, restoring, 
     and improving the land and water resources of the United 
     States and the quality of the environment and life for 
     watershed residents across the United States.''.
       (b) Definitions.--
       (1) Works of improvement.--Section 2 of the Act (16 U.S.C. 
     1002) is amended, with respect to the term ``works of 
     improvement''--
       (A) in paragraph (1), by inserting ``, nonstructural,'' 
     after ``structural'';
       (B) in paragraph (2), by striking ``or'' at the end;
       (C) by redesignating paragraph (3) as paragraph (11);
       (D) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) a land treatment or other nonstructural practice, 
     including the acquisition of easements or real property 
     rights, to meet multiple watershed needs,
       ``(4) the restoration and monitoring of the chemical, 
     biological, and physical structure, diversity, and functions 
     of waterways and their associated ecological systems,
       ``(5) the restoration or establishment of wetland and 
     riparian environments as part of a multi-objective management 
     system that provides floodwater or storm water storage, 
     detention, and attenuation, nutrient filtering, fish and 
     wildlife habitat, and enhanced biological diversity,
       ``(6) the restoration of steam channel forms, functions, 
     and diversity using the principles of biotechnical slope 
     stabilization to reestablish a meandering, bankfull flow 
     channels, riparian vegetation, and floodplains,
       ``(7) the establishment and acquisition of multi-objective 
     riparian and adjacent flood prone lands, including greenways, 
     for sediment storage and floodwater storage,
       ``(8) the protection, restoration, enhancement and 
     monitoring of surface and groundwater quality, including 
     measures to improve the quality of water emanating from 
     agricultural lands and facilities,
       ``(9) the provision of water supply and municipal and 
     industrial water supply for rural communities having a 
     population of less than 55,000, according to the most recent 
     decennial census of the United States,
       ``(10) outreach to and organization of local citizen 
     organizations to participate in project design and 
     implementation, and the training of project volunteers and 
     participants in restoration and monitoring techniques, or''; 
     and
       (E) in paragraph (11) (as so redesignated)--
       (i) by inserting in the first sentence after ``proper 
     utilization of land'' the following: ``, water, and related 
     resources''; and
       (ii) by striking the sentence that mandates that 20 percent 
     of total project benefits be directly related to agriculture.
       (2) Local organization.--Such section is further amended, 
     with respect to the term ``local organization'', by adding at 
     the end the following new sentence: ``The term includes any 
     nonprofit organization (defined as having tax exempt status 
     under section 501(c)(3) of the Internal Revenue Code of 1986) 
     that has authority to carry out and maintain works of 
     improvement or is developing and implementing a work of 
     improvement in partnership with another local organization 
     that has such authority.''.
       (3) Waterway.--Such section is further amended by adding at 
     the end the following new definition:
       ``Waterway.--The term `waterway' means, on public or 
     private land, any natural, degraded, seasonal, or created 
     wetland on public or private land, including rivers, streams, 
     riparian areas, marshes, ponds, bogs, mudflats, lakes, and 
     estuaries. The term includes any natural or manmade 
     watercourse which is culverted, channelized, or vegetatively 
     cleared, including canals, irrigation ditches, drainage 
     wages, and navigation, industrial, flood control and water 
     supply channels.''.
       (c) Assistance to Local Organizations.--Section 3 of the 
     Act (16 U.S.C. 1003) is amended--
       (1) in paragraph (1), by inserting after ``(1)'' the 
     following ``to provide technical assistance to help local 
     organizations'';
       (2) in paragraph (2)--
       (A) by inserting after ``(2)'' the following: ``to provide 
     technical assistance to help local organizations''; and
       (B) by striking ``engineering'' and inserting ``technical 
     and scientific''; and
       (3) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) to make allocations of costs to the project or 
     project components to determine whether the total of all 
     environmental, social, and monetary benefits exceed costs;''.
       (d) Cost Share Assistance.--
       (1) Amount of assistance.--Section 3A of the Act (16 U.S.C. 
     1003a) is amended by striking subsection (b) and inserting 
     the following:
       ``(b) Nonstructural Practices.--Notwithstanding any other 
     provision of this Act, Federal cost share assistance to local 
     organizations for the planning and implementation of 
     nonstructural works of improvement may be provided using 
     funds appropriated for the purposes of this Act for an amount 
     not exceeding 75 percent of the total installation costs.
       ``(c) Structural Practices.--Notwithstanding any other 
     provision of this Act, Federal cost share assistance to local 
     organizations for the planning and implementation of 
     structural works of improvement may be provided using funds 
     appropriated for the purposes of this Act for 50 percent of 
     the total cost, including the cost of mitigating damage to 
     fish and wildlife habitat and the value of any land or 
     interests in land acquired for the work of improvement.
       ``(d) Special Rule for Limited Resource Communities.--
     Notwithstanding any other 

[[Page S1216]]
     provision of this Act, the Secretary may provide cost share assistance 
     to a limited resource community for any works of improvement, 
     using funds appropriated for the purposes of this Act, for an 
     amount not to exceed 90 percent of the total cost.
       ``(e) Treatment of Other Federal Funds.--Not more than 50 
     percent of the non-Federal cost share may be satisfied using 
     funds from other Federal agencies.''.
       (2) Conditions on assistance.--Section 4(1) of the Act (16 
     U.S.C. 1004(1)) is amended by striking ``, without cost to 
     the Federal Government from funds appropriated for the 
     purposes of this Act,''.
       (e) Benefit Cost Analysis.--Section 5(1) of the Act (16 
     U.S.C. 1005(1)) is amended by striking ``the benefits'' and 
     inserting ``the total benefits, including environmental, 
     social, and monetary benefits,''.
       (f) Project Prioritization.--The Watershed Protection and 
     Flood Prevention Act is amended by inserting after section 5 
     (16 U.S.C. 1005) the following new section:

     ``SEC. 5A. FUNDING PRIORITIES.

       ``In making funding decisions under this Act, the Secretary 
     shall give priority to projects with one or more of the 
     following attributes:
       ``(1) Projects providing significant improvements in 
     ecological values and functions in the project area.
       ``(2) Projects that enhance the long-term health of local 
     economies or generate job or job training opportunities for 
     local residents, including Youth Conservation and Service 
     Corps participants and displaced resource harvesters.
       ``(3) Projects that provide protection to human health, 
     safety, and property.
       ``(4) Projects that directly benefit economically 
     disadvantaged communities and enhance participation by local 
     residents of such communities.
       ``(5) Projects that restore or enhance fish and wildlife 
     species of commercial, recreational, subsistence or 
     scientific concern.
       ``(6) Projects or components of projects that can be 
     planned, designed, and implemented within two years.''.
       (g) Transfer of Funds.--The Watershed Protection and Flood 
     Prevention Act (16 U.S.C. 1001-1010) is amended by adding at 
     the end the following new section:

     ``SEC. 14. TRANSFERS OF FUNDS.

       ``The Secretary may accept transfers of funds from other 
     Federal departments and agencies in order to carry out 
     projects under this Act.''.

     SEC. 364. ABANDONMENT OF CONVERTED WETLANDS.

       Section 1222 of the Food Security Act of 1985 (16 U.S.C. 
     3822) is amended by adding at the end the following:
       ``(k) Abandonment of Converted Wetlands.--The Secretary 
     shall not determine that a prior converted or cropped wetland 
     is abandoned, and therefore that the wetland is subject to 
     this subtitle, on the basis that a producer has not planted 
     an agricultural crop on the prior converted or cropped 
     wetland after the date of enactment of this subsection, so 
     long as any use of the wetland thereafter is limited to 
     agricultural purposes.''.
                     TITLE IV--NUTRITION ASSISTANCE

     SEC. 401. FOOD STAMP PROGRAM.

       (a) Disqualification of a Store or Concern.--Section 12 of 
     the Food Stamp Act of 1977 (7 U.S.C. 2021) is amended--
       (1) by striking the section heading;
       (2) by striking ``Sec. 12. (a) Any'' and inserting the 
     following:

     ``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF 
                   RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

       ``(a) Disqualification.--
       ``(1) In general.--An'';
       (3) by adding at the end of subsection (a) the following:
       ``(2) Employing certain persons.--A retail food store or 
     wholesale food concern shall be disqualified from 
     participation in the food stamp program if the store or 
     concern knowingly employs a person who has been found by the 
     Secretary, or a Federal, State, or local court, to have, 
     within the preceding 3-year period--
       ``(A) engaged in the trading of a firearm, ammunition, an 
     explosive, or a controlled substance (as defined in section 
     102 of the Controlled Substances Act (21 U.S.C. 802)) for a 
     coupon; or
       ``(B) committed any act that constitutes a violation of 
     this Act or a State law relating to using, presenting, 
     transferring, acquiring, receiving, or possessing a coupon, 
     authorization card, or access device.''; and
       (4) in subsection (b)(3)(B), by striking ``neither the 
     ownership nor management of the store or food concern was 
     aware'' and inserting ``the ownership of the store or food 
     concern was not aware''.
       (b) Employment and Training.--Section 16(h)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by 
     striking ``1995'' each place it appears and inserting 
     ``2002''.
       (c) Authorization of Pilot Projects.--The last sentence of 
     section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(A)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (d) Outreach Demonstration Projects.--The first sentence of 
     section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(j)(1)(A)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (e) Authorization for Appropriations.--The first sentence 
     of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2027(a)(1)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (f) Reauthorization of Puerto Rico Nutrition Assistance 
     Program.--The first sentence of section 19(a)(1)(A) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by 
     striking ``$974,000,000'' and all that follows through 
     ``fiscal year 1995'' and inserting ``$1,143,000,000 for 
     fiscal year 1996, $1,174,000,000 for fiscal year 1997, 
     $1,204,000,000 for fiscal year 1998, $1,236,000,000 for 
     fiscal year 1999, $1,268,000,000 for fiscal year 2000, 
     $1,301,000,000 for fiscal year 2001, and $1,335,000,000 for 
     fiscal year 2002''.
       (g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.) is amended by adding at the end the following:

     ``SEC. 24. TERRITORY OF AMERICAN SAMOA.

       ``From amounts made available to carry out this Act, the 
     Secretary may pay to the Territory of American Samoa not more 
     than $5,300,000 for each of fiscal years 1996 through 2002 to 
     finance 100 percent of the expenditures for the fiscal year 
     for a nutrition assistance program extended under section 
     601(c) of Public Law 96-597 (48 U.S.C. 1469d(c)).''.

     SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY 
                   SUPPLEMENTAL FOOD PROGRAM.

       (a) Reauthorization.--The first sentence of section 4(a) of 
     the Agriculture and Consumer Protection Act of 1973 (Public 
     Law 93-86; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Funding.--Section 5 of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
     is amended--
       (1) in subsection (a)(2), by striking ``1995'' and 
     inserting ``2002''; and
       (2) in subsection (d)(2), by striking ``1995'' and 
     inserting ``2002''.
       (c) Carried-Over Funds.--20 percent of any commodity 
     supplemental food program funds carried over under section 5 
     of the Agriculture and Consumer Protection Act of 1973 
     (Public Law 93-86; 7 U.S.C. 612c note) shall be available for 
     administrative expenses of the program.

     SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

       (a) Reauthorization.--The first sentence of section 
     204(a)(1) of the Emergency Food Assistance Act of 1983 
     (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Program Termination.--Section 212 of the Emergency Food 
     Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) 
     is amended by striking ``1995'' and inserting ``2002''.
       (c) Required Purchases of Commodities.--Section 214 of the 
     Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
     U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (e), by striking ``1995'' each place it 
     appears and inserting ``2002''.

     SEC. 404. SOUP KITCHENS PROGRAM.

       Section 110 of the Hunger Prevention Act of 1988 (Public 
     Law 100-435; 7 U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (c)(2)--
       (A) in the paragraph heading, by striking ``1995'' and 
     inserting ``2002''; and
       (B) by striking ``1995'' each place it appears and 
     inserting ``2002''.

     SEC. 405. NATIONAL COMMODITY PROCESSING.

       The first sentence of section 1114(a)(2)(A) of the 
     Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is 
     amended by striking ``1995'' and inserting ``2002''.
                         TITLE V--MISCELLANEOUS
              Subtitle A--General Miscellaneous Provisions

     SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRIENT 
                   MANAGEMENT.

       Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (1) in paragraph (A), by adding at the end the following: 
     ``The minimum price for milk of the highest classification in 
     any order (other than an order amended under paragraph (M)) 
     may not be higher than the minimum price required under this 
     paragraph.''; and
       (2) by adding at the end the following:
       ``(M) Safe harbor.--
       ``(i) In general.--Providing that each order may be amended 
     such that not more than $.10 per hundredweight of milk of the 
     highest use classification may be added to the minimum 
     applicable price to be set aside in a fund called the `Safe 
     Harbor Fund Account' (referred to in this paragraph as the 
     `Account').
       ``(ii) Administration.--

       ``(I) Market administrator.--The Account shall be 
     administered by the Market Administrator.
       ``(II) Use of funds.--A determination regarding the use of 
     the funds in the Account shall be made by the Safe Harbor 
     Committee established under clause (iii).

       ``(iii) Safe harbor committee.--The Secretary shall 
     establish a Safe Harbor Committee consisting of 7 milk 
     producers appointed by the Secretary who supply milk to 
     handlers regulated under a Federal milk marketing order.
       ``(iv) Use of funds.--

       ``(I) Applications.--To be eligible to use amounts in the 
     fund, a milk producer who supplies milk to handlers regulated 
     under a Federal milk marketing order shall submit an 
     application to the Safe Harbor Committee.
     
[[Page S1217]]

       ``(II) Approval.--The Safe Harbor Committee may approve 
     only applications that fund conservation practices approved 
     by the Secretary that control the off-migration of nutrients 
     from the farm.
       ``(III) State water quality priorities.--In approving 
     applications, the Safe Harbor Committee shall take into 
     account, to the extent practicable, the applicable State 
     water quality priorities.''.

     SEC. 502. CROP INSURANCE.

       (a) Catastrophic Risk Protection.--Section 508(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
       (1) in paragraph (4), by adding at the end the following:
       ``(C) Delivery of coverage.--
       ``(i) In general.--In full consultation with approved 
     insurance providers, the Secretary may continue to offer 
     catastrophic risk protection in a State (or a portion of a 
     State) through local offices of the Department if the 
     Secretary determines that there is an insufficient number of 
     approved insurance providers operating in the State or 
     portion to adequately provide catastrophic risk protection 
     coverage to producers.
       ``(ii) Coverage by approved insurance providers.--To the 
     extent that catastrophic risk protection coverage by approved 
     insurance providers is sufficiently available in a State as 
     determined by the Secretary, only approved insurance 
     providers may provide the coverage in the State.
       ``(iii) Current policies.--Subject to clause (ii), all 
     catastrophic risk protection policies written by local 
     offices of the Department shall be transferred (including all 
     fees collected for the crop year in which the approved 
     insurance provider will assume the policies) to the approved 
     insurance provider for performance of all sales, service, and 
     loss adjustment functions.''; and
       (2) in paragraph (7), by striking subparagraph (A) and 
     inserting the following:
       ``(A) In general.--Effective for the spring-planted 1996 
     and subsequent crops, to be eligible for any payment or loan 
     under the Agricultural Market Transition Act or the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1301 et seq.), 
     the conservation reserve program, or any benefit described in 
     section 371 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008f), a person shall--
       ``(i) obtain at least the catastrophic level of insurance 
     for each crop of economic significance in which the person 
     has an interest; or
       ``(ii) provide a written waiver to the Secretary that 
     waives any eligibility for emergency crop loss assistance in 
     connection with the crop.''.
       (b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the 
     Act (7 U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed 
     crops,'' after ``turfgrass sod,''.
       (c) Crop Insurance Pilot Project.--
       (1) Coverage.--The Secretary of Agriculture shall develop 
     and administer a pilot project for crop insurance coverage 
     that indemnifies crop losses due to a natural disaster such 
     as insect infestation or disease.
       (2) Actuarial soundness.--A pilot project under this 
     paragraph shall be actuarially sound, as determined by the 
     Secretary and administered at no net cost to the United 
     States Treasury.
       (3) Duration.--A pilot project under this paragraph shall 
     be of two years' duration.
       (d) Crop Insurance for Specialty Crops.--Section 508(a)(6) 
     of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is 
     amended by adding at the end the following:
       ``(D) Addition of specialty crops.--Not later than 2 years 
     after the date of enactment of this subparagraph--
       ``(i) the Corporation shall issue regulations to expand 
     crop insurance coverage under this title to include 
     aquaculture; and
       ``(ii) The Corporation shall conduct a study and limited 
     pilot program on the feasibility of insuring nursery 
     crops.''.
       (e) Marketing Windows.--Section 508(j) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the 
     end the following:
       ``(4) Marketing windows.--The Corporation shall consider 
     marketing windows in determining whether it is feasible to 
     require planting during a crop year.''.

     SEC. 503. REVENUE INSURANCE.

       Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)) is amended by adding at the end the following:
       ``(9) Revenue insurance pilot program.--
       ``(A) In general.--Not later than December 31, 1996, the 
     Secretary shall carry out a pilot program in a limited number 
     of counties, as determined by the Secretary, for crop years 
     1997, 1998, 1999, and 2000, under which a producer of corn, 
     wheat, or soybeans may elect to receive insurance against 
     loss of revenue, as determined by the Secretary.
       ``(B) Administration.--Revenue insurance under this 
     paragraph shall--
       ``(i) be offered through reinsurance arrangements with 
     private insurance companies;
       ``(ii) offer at least a minimum level of coverage that is 
     an alternative to catastrophic crop insurance;
       ``(iii) be actuarily sound; and
       ``(iv) require the payment of premiums and administrative 
     fees by an insured producer.''.

     SEC. 504. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND 
                   INSPECTION FEES.

       Subsection (a) of section 2509 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is 
     amended to read as follows:
       ``(a) Quarantine and Inspection Fees.--
       ``(1) Fees authorized.--The Secretary of Agriculture may 
     prescribe and collect fees sufficient--
       ``(A) to cover the cost of providing agricultural 
     quarantine and inspection services in connection with the 
     arrival at a port in the customs territory of the United 
     States, or the preclearance or preinspection at a site 
     outside the customs territory of the United States, of an 
     international passenger, commercial vessel, commercial 
     aircraft, commercial truck, or railroad car;
       ``(B) to cover the cost of administering this subsection; 
     and
       ``(C) through fiscal year 2002, to maintain a reasonable 
     balance in the Agricultural Quarantine Inspection User Fee 
     Account established under paragraph (5).
       ``(2) Limitation.--In setting the fees under paragraph (1), 
     the Secretary shall ensure that the amount of the fees are 
     commensurate with the costs of agricultural quarantine and 
     inspection services with respect to the class of persons or 
     entities paying the fees. The costs of the services with 
     respect to passengers as a class includes the costs of 
     related inspections of the aircraft or other vehicle.
       ``(3) Status of fees.--Fees collected under this subsection 
     by any person on behalf of the Secretary are held in trust 
     for the United States and shall be remitted to the Secretary 
     in such manner and at such times as the Secretary may 
     prescribe.
       ``(4) Late payment penalties.--If a person subject to a fee 
     under this subsection fails to pay the fee when due, the 
     Secretary shall assess a late payment penalty, and the 
     overdue fees shall accrue interest, as required by section 
     3717 of title 31, United States Code.
       ``(5) Agricultural quarantine inspection user fee 
     account.--
       ``(A) Establishment.--There is established in the Treasury 
     of the United States a no-year fund, to be known as the 
     `Agricultural Quarantine Inspection User Fee Account', which 
     shall contain all of the fees collected under this subsection 
     and late payment penalties and interest charges collected 
     under paragraph (4) through fiscal year 2002.
       ``(B) Use of account.--For each of the fiscal years 1996 
     through 2002, funds in the Agricultural Quarantine Inspection 
     User Fee Account shall be available, in such amounts as are 
     provided in advance in appropriations Acts, to cover the 
     costs associated with the provision of agricultural 
     quarantine and inspection services and the administration of 
     this subsection. Amounts made available under this 
     subparagraph shall be available until expended.
       ``(C) Excess fees.--Fees and other amounts collected under 
     this subsection in any of the fiscal years 1996 through 2002 
     in excess of $100,000,000 shall be available for the purposes 
     specified in subparagraph (B) until expended, without further 
     appropriation.
       ``(6) Use of amounts collected after fiscal year 2002.--
     After September 30, 2002, the unobligated balance in the 
     Agricultural Quarantine Inspection User Fee Account and fees 
     and other amounts collected under this subsection shall be 
     credited to the Department of Agriculture accounts that incur 
     the costs associated with the provision of agricultural 
     quarantine and inspection services and the administration of 
     this subsection. The fees and other amounts shall remain 
     available to the Secretary until expended without fiscal year 
     limitation.
       ``(7) Staff years.--The number of full-time equivalent 
     positions in the Department of Agriculture attributable to 
     the provision of agricultural quarantine and inspection 
     services and the administration of this subsection shall not 
     be counted toward the limitation on the total number of full-
     time equivalent positions in all agencies specified in 
     section 5(b) of the Federal Workforce Restructuring Act of 
     1994 (Public Law 103-226; 5 U.S.C. 3101 note) or other 
     limitation on the total number of full-time equivalent 
     positions.''.

     SEC. 505. COMMODITY CREDIT CORPORATION INTEREST RATE.

       Notwithstanding any other provision of law, the monthly 
     Commodity Credit Corporation interest rate applicable to 
     loans provided for agricultural commodities by the 
     Corporation shall be 100 basis points greater than the rate 
     determined under the applicable interest rate formula in 
     effect on October 1, 1995.

     SEC. 506. EVERGLADES AGRICULTURAL AREA.

       (a) In General.--On July 1, 1996, out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall provide $200,000,000 to the Secretary of the 
     Interior to carry out this section.
       (b) Entitlement.--The Secretary of the Interior--
       (1) shall accept the funds made available under subsection 
     (a);
       (2) shall be entitled to receive the funds; and
       (3) shall use the funds to conduct restoration activities 
     in the Everglades ecosystem, which may include acquiring 
     private acreage in the Everglades Agricultural Area including 
     approximately 52,000 acres that is commonly known as the 
     ``Talisman tract''.
       (c) Transferring Funds.--The Secretary of the Interior may 
     transfer funds to the Army Corps of Engineers, the State of 
     Florida, or the South Florida Water Management District to 
     carry out subsection (b)(3).
     
[[Page S1218]]

       (d) Deadline.--Not later than December 31, 1999, the 
     Secretary of the Interior shall utilize the funds for 
     restoration activities referred to in subsection (b)(3).

     SEC. 507. FUND FOR RURAL AMERICA.

       (a) In General.--The Secretary shall create an account 
     called the Fund for Rural America for the purposes of 
     providing funds for activities described in subsection (c).
       (b) Commodity Credit Corporation.--In each of the 1996 
     through 1998 fiscal years, the Secretary shall transfer into 
     the Fund for Rural America (hereafter referred to as the 
     ``Account'')--
       (1) $50,000,000 for the 1996 fiscal year;
       (2) $100,000,000 for the 1997 fiscal year; and
       (3) $150,000,000 for the 1998 fiscal year.
       (c) Purposes.--Except as provided in subsection (d), the 
     Secretary shall provide not more than one-third of the funds 
     from the Account for activities described in paragraph (2).
       (1) Rural development activities.--The Secretary may use 
     the funds in the Account for the following rural development 
     activities authorized in:
       (A) The Housing Act of 1949 for--
       (i) direct loans to low income borrowers pursuant to 
     section 502;
       (ii) loans for financial assistance for housing for 
     domestic farm laborers pursuant to section 514;
       (iii) financial assistance for housing of domestic farm 
     labor pursuant to section 516;
       (iv) grants and contracts for mutual and self help housing 
     pursuant to section 523(b)(1)(A); and
       (v) grants for Rural Housing Preservation pursuant to 
     section 533;
       (B) The Food Security Act of 1985 for loans to intermediary 
     borrowers under the Rural Development Loan Fund;
       (C) Consolidated Farm and Rural Development Act for--
       (i) grants for Rural Business Enterprises pursuant to 
     section 310B (c) and (j);
       (ii) direct loans, loan guarantees and grants for water and 
     waste water projects pursuant to section 306; and
       (iii) down payments assistance to farmers, section 310E;
       (D) grants for outreach to socially disadvantaged farmers 
     and ranchers pursuant to section 2501 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2279); and
       (E) grants pursuant to section 204(6) of the Agricultural 
     Marketing Act of 1946.
       (2) Research.--
       (A) In general.--The Secretary may use the funds in the 
     Account for research grants to increase the competitiveness 
     and farm profitability, protect and enhance natural 
     resources, increase economic opportunities in farming and 
     rural communities and expand locally owned value added 
     processing and marketing operations.
       (B) Eligible grantee.--The Secretary may make a grant under 
     this paragraph to--
       (i) a college or university;
       (ii) a State agricultural experiment station;
       (iii) a State Cooperative Extension Service;
       (iv) a research institution or organization;
       (v) a private organization or person; or
       (iv) a Federal agency.
       (C) Use of grant.--
       (i) In general.--A grant made under this paragraph may be 
     used by a grantee for 1 or more of the following uses--

       (I) research, ranging from discovery to principles of 
     application;
       (II) extension and related private-sector activities; and
       (III) education.

       (ii) Limitation.--No grant shall be made for any project, 
     determined by the Secretary, to be eligible for funding under 
     research and commodity promotion programs administered by the 
     Department.
       (D) Administration.--
       (i) Priority.--In administering this paragraph, the 
     Secretary shall--

       (I) establish priorities for allocating grants, based on 
     needs and oppportunities of the food and agriculture system 
     in the United States related to the goals of the paragraph;
       (II) seek and accept proposals for grants;
       (III) determine the relevance and merit of proposals 
     through a system of peer and stakeholder review; and
       (IV) award grants on the basis of merit, quality, and 
     relevance to advancing the national research and extension 
     purposes.

       (ii) Competitive awarding.--A grant under this paragraph 
     shall be awarded on a competitive basis.
       (iii) Terms.--A grant under this paragraph shall have a 
     term that does not exceed 5 years.
       (iv) Matching funds.--As a condition of receipts under this 
     paragraph, the Secretary shall require the funding of the 
     grant with equal matching funds from a non-Federal source if 
     the grant is--

       (I) for applied research that is commodity-specific; and
       (II) not of national scope.

       (v) Administrative costs.--

       (I) In general.--The Secretary may use not more than 4 
     percent of the funds made available under this paragraph for 
     administrative costs incurred by the Secretary in carrying 
     out this paragraph.
       (II) Limitation.--Funds made available under this paragraph 
     shall not be used--

       (aa) for the construction of a new building or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building (including site grading and improvement and 
     architect fees); or
       (bb) in excess of ten percent of the annual allocation for 
     commodity-specific projects not of the national scope.
       (d) Limitations.--No funds from the Fund for Rural America 
     may be used for an activity specified in subsection (c) if 
     the current level of appropriations for the activity is less 
     than 90 percent of the 1996 fiscal year appropriations for 
     the activity adjusted for inflation.
    Subtitle B--Options Pilot Programs and Risk Management Education

     SEC. 511. SHORT TITLE.

       This subtitle may be cited as the ``Options Pilot Programs 
     Act of 1996''.

     SEC. 512. PURPOSE.

       The purpose of this subtitle is to authorize the Secretary 
     of Agriculture (referred to in this subtitle as the 
     ``Secretary'') to--
       (1) conduct research through pilot programs for 1 or more 
     program commodities to ascertain whether futures and options 
     contracts can provide producers with reasonable protection 
     from the financial risks of fluctuations in price, yield, and 
     income inherent in the production and marketing of 
     agricultural commodities; and
       (2) provide education in the management of the financial 
     risks inherent in the production and marketing of 
     agricultural commodities.

     SEC. 513. PILOT PROGRAMS.

       (a) In General.--The Secretary is authorized to conduct 
     pilot programs for 1 or more supported commodities through 
     December 31, 2002.
       (b) Distribution of Pilot Programs.--The Secretary may 
     operate a pilot program described in subsection (a) (referred 
     to in this subtitle as a ``pilot program'') in up to 100 
     counties for each program commodity with not more than 6 of 
     those counties in any 1 State. A pilot program shall not be 
     implemented in any county for more than 3 of the 1996 through 
     2002 calendar years.
       (c) Eligible Participants.--
       (1) In general.--In carrying out a pilot program, the 
     Secretary may contract with a producer who--
       (A) is eligible to participate in a price support program 
     for a supported commodity;
       (B) desires to participate in a pilot program; and
       (C) is located in an area selected for a pilot program.
       (2) Contracts.--Each contract under paragraph (1) shall set 
     forth the terms and conditions for participation in a pilot 
     program.
       (d) Eligible Markets.--Trades for futures and options 
     contracts under a pilot program shall be carried out on 
     commodity futures and options markets designated as contract 
     markets under the Commodity Exchange Act (7 U.S.C. 1 et seq.)

     SEC. 514. TERMS AND CONDITIONS.

       (a) In General.--To be eligible to participate in any pilot 
     program for any commodity conducted under this subtitle, a 
     producer shall meet the eligibility requirements established 
     under this subtitle (including regulations issued under this 
     subtitle).
       (b) Recordkeeping.--Producers shall compile, maintain, and 
     submit (or authorize the compilation, maintenance, and 
     submission) of such documentation as the regulations 
     governing any pilot program require.

     SEC. 515. NOTICE.

       (a) Alternative Programs.--Pilot programs shall be 
     alternatives to other related programs of the Department of 
     Agriculture.
       (b) Notice to Producers.--The Secretary shall provide 
     notice to each producer participating in a pilot program 
     that--
       (1) the participation of the producer in a pilot program is 
     voluntary; and
       (2) neither the United States, the Commodity Credit 
     Corporation, the Federal Crop Insurance Corporation, the 
     Department of Agriculture, nor any other Federal agency is 
     authorized to guarantee that participants in the pilot 
     program will be better or worse off financially as a result 
     of participation in a pilot program than the producer would 
     have been if the producer had not participated in a pilot 
     program.

     SEC. 516. COMMODITY CREDIT CORPORATION.

       (a) In General.--Pilot programs established under this 
     subtitle shall be funded by and carried out through the 
     Commodity Credit Corporation.
       (b) Limitation.--In conducting the programs, the Secretary 
     shall, to the maximum extent practicable, operate the pilot 
     programs in a budget neutral manner.

     SEC. 517. RISK MANAGEMENT EDUCATION.

       The Secretary shall provide such education in management of 
     the financial risks inherent in the production and marketing 
     of agricultural commodities as the Secretary considers 
     appropriate.
     Subtitle C--Commercial Transportation of Equine for Slaughter

     SEC. 521. FINDINGS.

       Congress finds that, to ensure that equine sold for 
     slaughter are provided humane treatment and care, it is 
     essential to regulate the transportation, care, handling, and 
     treatment of equine by any person engaged in the commercial 
     transportation of equine for slaughter.

     SEC. 522. DEFINITIONS.

       In this subtitle:
       (1) Commerce.--The term ``commerce'' means trade, traffic, 
     transportation, or other commerce by a person--
       (A) between any State, territory, or possession of the 
     United States, or the District of Columbia, and any place 
     outside thereof;
     
[[Page S1219]]

       (B) between points within the same State, territory, or 
     possession of the United States, or the District of Columbia, 
     but through any place outside thereof; or
       (C) within any territory or possession of the United States 
     or the District of Columbia.
       (2) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (3) Equine.--The term ``equine'' means any member of the 
     Equidae family.
       (4) Equine for slaughter.--The term ``equine for 
     slaughter'' means any equine that is transported, or intended 
     to be transported, by vehicle to a slaughter facility or 
     intermediate handler from a sale, auction, or intermediate 
     handler by a person engaged in the business of transporting 
     equine for slaughter.
       (5) Foal.--The term ``foal'' means an equine that is not 
     more than 6 months of age.
       (6) Intermediate handler.--The term ``intermediate 
     handler'' means any person regularly engaged in the business 
     of receiving custody of equine for slaughter in connection 
     with the transport of the equine to a slaughter facility, 
     including a stockyard, feedlot, or assembly point.
       (7) Person.--The term ``person'' means any individual, 
     partnership, firm, company, corporation, or association that 
     regularly transports equine for slaughter in commerce, except 
     that the term shall not include an individual or other entity 
     that does not transport equine for slaughter on a regular 
     basis as part of a commercial enterprise.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (9) Vehicle.--The term ``vehicle'' means any machine, 
     truck, tractor, trailer, or semitrailer, or any combination 
     thereof, propelled or drawn by mechanical power and used on a 
     highway in the commercial transportation of equine for 
     slaughter.
       (10) Stallion.--The term ``stallion'' means any uncastrated 
     male equine that is 1 year of age or older.

     SEC. 523. STANDARDS FOR HUMANE COMMERCIAL TRANSPORTATION OF 
                   EQUINE FOR SLAUGHTER.

       (a) In General.--Subject to the availability of 
     appropriations, not later than 1 year after the date of 
     enactment of this subtitle, the Secretary shall issue, by 
     regulation, standards for the humane commercial 
     transportation by vehicle of equine for slaughter.
       (b) Prohibition.--No person engaged in the regular business 
     of transporting equine by vehicle for slaughter as part of a 
     commercial enterprise shall transport in commerce, to a 
     slaughter facility or intermediate handler, an equine for 
     slaughter except in accordance with the standards and this 
     subtitle.
       (c) Minimum Requirements.--The standards shall include 
     minimum requirements for the humane handling, care, 
     treatment, and equipment necessary to ensure the safe and 
     humane transportation of equine for slaughter. The standards 
     shall require, at a minimum, that--
       (1) no equine for slaughter shall be transported for more 
     than 24 hours without being unloaded from the vehicle and 
     allowed to rest for at least 8 consecutive hours and given 
     access to adequate quantities of wholesome food and potable 
     water;
       (2) a vehicle shall provide adequate headroom for an equine 
     for slaughter with a minimum of at least 6 feet, 6 inches of 
     headroom from the roof and beams or other structural members 
     overhead to floor underfoot, except that a vehicle 
     transporting 6 equine or less shall provide a minimum of at 
     least 6 feet of headroom from the roof and beams or other 
     structural members overhead to floor underfoot if none of the 
     equine are over 16 hands;
       (3) the interior of a vehicle shall--
       (A) be free of protrusions, sharp edges, and harmful 
     objects;
       (B) have ramps and floors that are adequately covered with 
     a nonskid nonmetallic surface; and
       (C) be maintained in a sanitary condition;
       (4) a vehicle shall--
       (A) provide adequate ventilation and shelter from extremes 
     of weather and temperature for all equine;
       (B) be of appropriate size, height, and interior design for 
     the number of equine being carried to prevent overcrowding; 
     and
       (C) be equipped with doors and ramps of sufficient size and 
     location to provide for safe loading and unloading, including 
     unloading during emergencies;
       (5)(A) equine shall be positioned in the vehicle by size; 
     and
       (B) stallions shall be segregated from other equine;
       (6)(A) all equine for slaughter must be fit to travel as 
     determined by an accredited veterinarian, who shall prepare a 
     certificate of inspection, prior to loading for transport, 
     that--
       (i) states that the equine were inspected and satisfied the 
     requirements of subparagraph (B);
       (ii) includes a clear description of each equine; and
       (iii) is valid for 7 days;
       (B) no equine shall be transported to slaughter if the 
     equine is found to be--
       (i) suffering from a broken or dislocated limb;
       (ii) unable to bear weight on all 4 limbs;
       (iii) blind in both eyes; or
       (iv) obviously suffering from severe illness, injury, 
     lameness, or physical debilitation that would make the equine 
     unable to withstand the stress of transportation;
       (C) no foal may be transported for slaughter;
       (D) no mare in foal that exhibits signs of impending 
     parturition may be transported for slaughter; and
       (E) no equine for slaughter shall be accepted by a 
     slaughter facility unless the equine is--
       (i) inspected on arrival by an employee of the slaughter 
     facility or an employee of the Department; and
       (ii) accompanied by a certificate of inspection issued by 
     an accredited veterinarian, not more than 7 days before the 
     delivery, stating that the veterinarian inspected the equine 
     on a specified date.

     SEC. 524. RECORDS.

       (a) In General.--A person engaged in the business of 
     transporting equine for slaughter shall establish and 
     maintain such records, make such reports, and provide such 
     information as the Secretary may, by regulation, require for 
     the purposes of carrying out, or determining compliance with, 
     this subtitle.
       (b) Minimum Requirements.--The records shall include, at a 
     minimum--
       (1) the veterinary certificate of inspection;
       (2) the names and addresses of current owners and 
     consignors, if applicable, of the equine at the time of sale 
     or consignment to slaughter; and
       (3) the bill of sale or other documentation of sale for 
     each equine.
       (c) Availability.--The records shall--
       (1) accompany the equine during transport to slaughter;
       (2) be retained by any person engaged in the business of 
     transporting equine for slaughter for a reasonable period of 
     time, as determined by the Secretary, except that the 
     veterinary certificate of inspection shall be surrendered at 
     the slaughter facility to an employee or designee of the 
     Department and kept by the Department for a reasonable period 
     of time, as determined by the Secretary; and
       (3) on request of an officer or employee of the Department, 
     be made available at all reasonable times for inspection and 
     copying by the officer or employee.

     SEC. 525. AGENTS.

       (a) In General.--For purposes of this subtitle, the act, 
     omission, or failure of an individual acting for or employed 
     by a person engaged in the business of transporting equine 
     for slaughter, within the scope of the employment or office 
     of the individual, shall be considered the act, omission, or 
     failure of the person engaging in the commercial 
     transportation of equine for slaughter as well as of the 
     individual.
       (b) Assistance.--If an equine suffers a substantial injury 
     or illness while being transported for slaughter on a 
     vehicle, the driver of the vehicle shall seek prompt 
     assistance from a licensed veterinarian.

     SEC. 526. COOPERATIVE AGREEMENTS.

       The Secretary is authorized to cooperate with States, 
     political subdivisions of States, State agencies (including 
     State departments of agriculture and State law enforcement 
     agencies), and foreign governments to carry out and enforce 
     this subtitle (including regulations issued under this 
     subtitle).

     SEC. 527. INVESTIGATIONS AND INSPECTIONS.

       (a) In General.--The Secretary is authorized to conduct 
     such investigations or inspections as the Secretary considers 
     necessary to enforce this subtitle (including any regulation 
     issued under this subtitle).
       (b) Access.--For the purposes of conducting an 
     investigation or inspection under subsection (a), the 
     Secretary shall, at all reasonable times, have access to--
       (1) the place of business of any person engaged in the 
     business of transporting equine for slaughter;
       (2) the facilities and vehicles used to transport the 
     equine; and
       (3) records required to be maintained under section 834.
       (c) Assistance to or Destruction of Equine.--The Secretary 
     shall issue such regulations as the Secretary considers 
     necessary to permit employees or agents of the Department 
     to--
       (1) provide assistance to any equine that is covered by 
     this subtitle (including any regulation issued under this 
     subtitle); or
       (2) destroy, in a humane manner, any such equine found to 
     be suffering.

     SEC. 528. INTERFERENCE WITH ENFORCEMENT.

       (a) In General.--Subject to subsection (b), a person who 
     forcibly assaults, resists, opposes, impedes, intimidates, or 
     interferes with any person while engaged in or on account of 
     the performance of an official duty of the person under this 
     subtitle shall be fined not more than $5,000 or imprisoned 
     not more than 3 years, or both.
       (b) Weapons.--If the person uses a deadly or dangerous 
     weapon in connection with an action described in subsection 
     (a), the person shall be fined not more than $10,000 or 
     imprisoned not more than 10 years, or both.

     SEC. 529. JURISDICTION OF COURTS.

       Except as provided in section 840(a)(5), a district court 
     of the United States in any appropriate judicial district 
     under section 1391 of title 28, United States Code, shall 
     have jurisdiction to specifically enforce this subtitle, to 
     prevent and restrain a violation of this subtitle, and to 
     otherwise enforce this subtitle.

     SEC. 530. CIVIL AND CRIMINAL PENALTIES.

       (a) Civil Penalties.--
       (1) In general.--A person who violates this subtitle 
     (including a regulation or standard 

[[Page S1220]]
     issued under this subtitle) shall be assessed a civil penalty by the 
     Secretary of not more than $2,000 for each violation.
       (2) Separate offenses.--Each equine transported in 
     violation of this subtitle shall constitute a separate 
     offense. Each violation and each day during which a violation 
     continues shall constitute a separate offense.
       (3) Hearings.--No penalty shall be assessed under this 
     subsection unless the person who is alleged to have violated 
     this subtitle is given notice and opportunity for a hearing 
     with respect to an alleged violation.
       (4) Final order.--An order of the Secretary assessing a 
     penalty under this subsection shall be final and conclusive 
     unless the aggrieved person files an appeal from the order 
     pursuant to paragraph (5).
       (5) Appeals.--Not later than 30 days after entry of a final 
     order of the Secretary issued pursuant to this subsection, a 
     person aggrieved by the order may seek review of the order in 
     the appropriate United States Court of Appeals. The Court 
     shall have exclusive jurisdiction to enjoin, set aside, 
     suspend (in whole or in part), or to determine the validity 
     of the order.
       (6) Nonpayment of penalty.--On a failure to pay the penalty 
     assessed by a final order under this section, the Secretary 
     shall request the Attorney General to institute a civil 
     action in a district court of the United States or other 
     United States court for any district in which the person is 
     found, resides, or transacts business, to collect the 
     penalty. The court shall have jurisdiction to hear and decide 
     the action.
       (b) Criminal Penalties.--
       (1) First offense.--Subject to paragraph (2), a person who 
     knowingly violates this subtitle (or a regulation or standard 
     issued under this subtitle) shall, on conviction of the 
     violation, be subject to imprisonment for not more than 1 
     year or a fine of not more than $2,000, or both.
       (2) Subsequent offenses.--On conviction of a second or 
     subsequent offense described in paragraph (1), a person shall 
     be subject to imprisonment for not more than 3 years or to a 
     fine of not more than $5,000, or both.

     SEC. 531. PAYMENTS FOR TEMPORARY OR MEDICAL ASSISTANCE FOR 
                   EQUINE DUE TO VIOLATIONS.

       From sums received as penalties, fines, or forfeitures of 
     property for any violation of this subtitle (including a 
     regulation issued under this subtitle), the Secretary shall 
     pay the reasonable and necessary costs incurred by any person 
     in providing temporary care or medical assistance for any 
     equine that needs the care or assistance due to a violation 
     of this subtitle.

     SEC. 532. RELATIONSHIP TO STATE LAW.

       Nothing in this subtitle prevents a State from enacting or 
     enforcing any law (including a regulation) that is not 
     inconsistent with this subtitle or that is more restrictive 
     than this subtitle.

     SEC. 533. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each fiscal year such sums as are necessary to carry out 
     this subtitle.
       (b) Limitation.--No provision of this subtitle shall be 
     effective, or be enforced against any person, during a fiscal 
     year unless funds to carry out this subtitle have been 
     appropriated for the fiscal year.
                       Subtitle D--Miscellaneous

     SEC. 541. LIVESTOCK DEALER TRUST.

       Title III of the Packers and Stockyards Act, 1921 (7 U.S.C. 
     201 et seq.), is amended by adding at the end the following:

     ``SEC. 318. LIVESTOCK DEALER TRUST.

       ``(a) Findings.--Congress finds that--
       ``(1) a burden on and obstruction to commerce in livestock 
     is caused by financing arrangements under which dealers and 
     market agencies purchasing livestock on commission encumber, 
     give lenders security interests in, or have liens placed on 
     livestock purchased by the dealers and market agencies in 
     cash sales, or on receivables from or proceeds of such sales, 
     when payment is not made for the livestock; and
       ``(2) the carrying out of such arrangements is contrary to 
     the public interest.
       ``(b) Purpose.--The purpose of this section is to remedy 
     the burden on and obstruction to commerce in livestock 
     described in paragraph (1) and protect the public interest.
       ``(c) Definitions.--In this section:
       ``(1) Cash sale.--The term `cash sale' means a sale in 
     which the seller does not expressly extend credit to the 
     buyer.
       ``(2) Trust.--The term `trust' means 1 or more assets of a 
     buyer that (subsequent to a cash sale of livestock) 
     constitutes the corpus of a trust held for the benefit of a 
     seller and consists of--
       ``(A) account receivables and proceeds earned from the cash 
     sale of livestock by a dealer;
       ``(B) account receivables and proceeds of a marketing 
     agency earned on commission from the cash sale of livestock;
       ``(C) the inventory of the dealer or marketing agency; or
       ``(D) livestock involved in the cash sale, if the seller 
     has not received payment in full for the livestock and a bona 
     fide third-party purchaser has not purchased the livestock 
     from the dealer or marketing agency.
       ``(d) Holding in Trust.--
       ``(1) In general.--The account receivables and proceeds 
     generated in a cash sale made by a dealer or a market agency 
     on commission and the inventory of the dealer or market 
     agency shall be held by the dealer or market agency in trust 
     for the benefit of the seller of the livestock until the 
     seller receives payment in full for the livestock.
       ``(2) Exemption.--Paragraph (1) does not apply in the case 
     of a cash sale made by a dealer or market agency if the total 
     amount of cash sales made by the dealer or market agency 
     during the preceding 12 months does not exceed $250,000.
       ``(3) Dishonor of instrument of payment.--A payment in a 
     sale described in paragraph (1) shall not be considered to be 
     made if the instrument by which payment is made is 
     dishonored.
       ``(4) Loss of benefit of trust.--If an instrument by which 
     payment is made in a sale described in paragraph (1) is 
     dishonored, the seller shall lose the benefit of the trust 
     under paragraph (1) on the earlier of--
       ``(A) the date that is 15 business days after date on which 
     the seller receives notice of the dishonor; or
       ``(B) the date that is 30 days after the final date for 
     making payment under section 409,
     unless the seller gives written notice to the dealer or 
     market agency of the seller's intention to preserve the trust 
     and submits a copy of the notice to the Secretary.
       ``(5) Rights of third-party purchaser.--The trust 
     established under paragraph (1) shall have no effect on the 
     rights of a bona fide third-party purchaser of the livestock, 
     without regard to whether the livestock are delivered to the 
     bona fide purchaser.
       ``(e) Jurisdiction.--The district courts of the United 
     States shall have jurisdiction in a civil action--
       ``(1) by the beneficiary of a trust described in subsection 
     (c)(1), to enforce payment of the amount held in trust; and
       ``(2) by the Secretary, to prevent and restrain dissipation 
     of a trust described in subsection (c)(1).''.

     SEC. 542. PLANTING OF ENERGY CROPS.

       (a) Feed Grains.--The first sentence of section 
     105B(c)(1)(F)(i) of the Agricultural Act of 1949 (7 U.S.C. 
     1444f(c)(1)(F)(i)) is amended by inserting ``herbaceous 
     perennial grass, short rotation woody coppice species of 
     trees, other energy crops designated by the Secretary with 
     high energy content,'' after ``mung beans,''.
       (b) Wheat.--The first sentence of section 107B(c)(1)(F)(i) 
     of the Agricultural Act of 1949 (7 U.S.C. 1445b-
     3a(c)(1)(F)(i)) is amended by inserting ``herbaceous 
     perennial grass, short rotation woody coppice species of 
     trees, other energy crops designated by the Secretary with 
     high energy content,'' after ``mung beans,''.

     SEC. 543. REIMBURSABLE AGREEMENTS.

       Section 737 of Public Law 102-142 (7 U.S.C. 2277) is 
     amended--
       (1) by striking ``Sec. 737. Funds'' and inserting the 
     following:

     ``SEC. 737. SERVICES FOR APHIS PERFORMED OUTSIDE THE UNITED 
                   STATES.

       ``(a) In General.--Funds''; and
       (2) by adding at the end the following:
       ``(b) Reimbursable Agreements.--
       ``(1) In general.--The Secretary of Agriculture may enter 
     into reimbursable fee agreements with persons for 
     preclearance at locations outside the United States of 
     plants, plant products, animals, and articles for movement to 
     the United States.
       ``(2) Overtime, night, and holiday work.--Notwithstanding 
     any other law, the Secretary of Agriculture may pay an 
     employee of the Department of Agriculture preforming services 
     relating to imports into and exports from the United States 
     for overtime, night, and holiday work performed by the 
     employee at a rate of pay established by the Secretary.
       ``(3) Reimbursement.--
       ``(A) In general.--The Secretary of Agriculture may require 
     persons for whom preclearance services are performed to 
     reimburse the Secretary for any amounts paid by the Secretary 
     for performance of the services.
       ``(B) Crediting of funds.--All funds collected under 
     subparagraph (A) shall be credited to the account that incurs 
     the costs and shall remain available until expended without 
     fiscal year limitation.
       ``(C) Late payment penalty.--
       ``(i) In general.--On failure of a person to reimburse the 
     Secretary of Agriculture for the costs of performance of 
     preclearance services--

       ``(I) the Secretary may assess a late payment penalty; and
       ``(II) the overdue funds shall accrue interest in 
     accordance with section 3717 of title 31, United States Code.

       ``(ii) Crediting of funds.--Any late payment penalty and 
     any accrued interest collected under this subparagraph shall 
     be credited to the account that incurs the costs and shall 
     remain available until expended without fiscal year 
     limitation.''.

     SEC. 544. SWINE HEALTH PROTECTION.

       (a) Termination of State Primary Enforcement 
     Responsibility.--Section 10 of the Swine Health Protection 
     Act (7 U.S.C. 3809) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Request of State Official.--
       ``(1) In general.--On request of the Governor or other 
     appropriate official of a State, the Secretary may terminate, 
     effective as soon as the Secretary determines is practicable, 
     the primary enforcement responsibility of a State under 
     subsection (a). In terminating the primary enforcement 
     responsibility under this subsection, the Secretary shall 
     work with the appropriate State official to determine the 
     level of support to be provided to the Secretary by the State 
     under this Act. 
     
[[Page S1221]]

       ``(2) Reassumption.--Nothing in this subsection shall 
     prevent a State from reassuming primary enforcement 
     responsibility if the Secretary determines that the State 
     meets the requirements of subsection (a).''.
       (b) Advisory Committee.--The Swine Health Protection Act is 
     amended--
       (1) by striking section 11 (7 U.S.C. 3810); and
       (2) by redesignating sections 12, 13, and 14 (7 U.S.C. 
     3811, 3812, and 3813) as sections 11, 12, and 13, 
     respectively.

     SEC. 545. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND 
                   IMPROVEMENT OF NATIONAL FOREST SYSTEM.

       The penultimate paragraph of the matter under the heading 
     ``FOREST SERVICE.'' of the first section of the Act of June 
     30, 1914 (38 Stat. 430, chapter 131; 16 U.S.C. 498), is 
     amended--
       (1) by inserting ``, management,'' after ``the 
     protection'';
       (2) by striking ``national forests,'' and inserting 
     ``National Forest System,'';
       (3) by inserting ``management,'' after ``protection,'' both 
     places it appears; and
       (4) by adding at the end the following new sentences: 
     ``Payment for work undertaken pursuant to this paragraph may 
     be made from any appropriation of the Forest Service that is 
     available for similar work if a written agreement so provides 
     and reimbursement will be provided by a cooperator in the 
     same fiscal year as the expenditure by the Forest Service. A 
     reimbursement received from a cooperator that covers the 
     proportionate share of the cooperator of the cost of the work 
     shall be deposited to the credit of the appropriation of the 
     Forest Service from which the payment was initially made or, 
     if the appropriation is no longer available to the credit of 
     an appropriation of the Forest Service that is available for 
     similar work. The Secretary of Agriculture shall establish 
     written rules that establish criteria to be used to determine 
     whether the acceptance of contributions of money under this 
     paragraph would adversely affect the ability of an officer or 
     employee of the United States Department of Agriculture to 
     carry out a duty or program of the officer or employee in a 
     fair and objective manner or would compromise, or appear to 
     compromise, the integrity of the program, officer, or 
     employee. The Secretary of Agriculture shall establish 
     written rules that protect the interests of the Forest 
     Service in cooperative work agreements.''.

     SEC. 546. AMENDMENT OF THE VIRUS-SERUM TOXIN ACT OF 1913.

       The Act of March 4, 1913 (37 Stat. 828, chapter 145), is 
     amended in the eighth paragraph under the heading ``BUREAU OF 
     ANIMAL INDUSTRY'', commonly known as the ``Virus-Serum Toxin 
     Act of 1913'', by striking the 10th sentence (21 U.S.C. 158) 
     and inserting ``A person, firm, or corporation that knowingly 
     violates any of the provisions of this paragraph or 
     regulations issued under this paragraph, or knowingly forges, 
     counterfeits, or, without authorization by the Secretary of 
     Agriculture, uses, alters, defaces, or destroys any 
     certificate, permit, license, or other document provided for 
     in this paragraph, may, for each violation, after written 
     notice and opportunity for a hearing on the record, be 
     assessed a civil penalty by the Secretary of Agriculture of 
     not more than $5,000, or shall, on conviction, be assessed a 
     criminal penalty of not more than $10,000, imprisoned not 
     more than 1 year, or both. In the course of an investigation 
     of a suspected violation of this paragraph, the Secretary of 
     Agriculture may issue subpoenas requiring the attendance and 
     testimony of witnesses and the production of evidence that 
     relates to the matter under investigation. In determining the 
     amount of a civil penalty, the Secretary of Agriculture shall 
     take into account the nature, circumstances, extent, and 
     gravity of the violation, the ability of the violator to pay 
     the penalty, the effect that the assessment would have on the 
     ability of the violator to continue to do business, any 
     history of such violations by the violator, the degree of 
     culpability of the violator, and such other matters as 
     justice may require. An order assessing a civil penalty shall 
     be treated as a final order reviewable under chapter 158 of 
     title 28, United State's Code. The Secretary of Agriculture 
     may compromise, modify, or remit a civil penalty with or 
     without conditions. The amount of a civil penalty that is 
     paid (including any amount agreed on in compromise) may be 
     deducted from any sums owing by the United States to the 
     violator. The total amount of civil penalties assessed 
     against a violator shall not exceed $300,000 for all such 
     violations adjudicated in a single proceeding. The validity 
     of an order assessing a civil penalty shall not be subject to 
     review in an action to collect the civil penalty. The unpaid 
     amount of a civil penalty not paid in full when due shall 
     accrue interest at the rate of interest applicable to civil 
     judgments of the courts of the United States.''.

     SEC. 547. OVERSEAS TORT CLAIMS.

       Title VII of Public Law 102-142 (105 Stat. 911) is amended 
     by inserting after section 737 (7 U.S.C. 2277) the following:

     ``SEC. 737A. OVERSEAS TORT CLAIMS.

       ``The Secretary of Agriculture may pay a tort claim in the 
     manner authorized in section 2672 of title 28, United States 
     Code, if the claim arises outside the United States in 
     connection with activities of individuals who are performing 
     services for the Secretary. A claim may not be allowed under 
     this section unless the claim is presented in writing to the 
     Secretary within 2 years after the date on which the claim 
     accrues.''.

     SEC. 548. GRADUATE SCHOOL OF THE UNITED STATES DEPARTMENT OF 
                   AGRICULTURE.

       (a) Purpose.--The purpose of this section is to authorize 
     the continued operation of the Graduate School as a 
     nonappropriated fund instrumentality of the Department of 
     Agriculture.
       (b) Definitions.--In this section:
       (1) Board.--The term ``Board'' means the General 
     Administration Board of the Graduate School.
       (2) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (3) Director.--The term ``Director'' means the Director of 
     the Graduate School.
       (4) Graduate school.--The term ``Graduate School'' means 
     the Graduate School of the United States Department of 
     Agriculture.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (c) Functions and Authority.--
       (1) In general.--The Graduate School shall continue as a 
     nonappropriated fund instrumentality of the Department under 
     the general supervision of the Secretary.
       (2) Activities.--The Graduate School shall develop and 
     administer education, training, and professional development 
     activities, including the provision of educational activities 
     for Federal agencies, Federal employees, nonprofit 
     organizations, other entities, and members of the general 
     public.
       (3) Fees.--
       (A) In general.--The Graduate School may charge and retain 
     fair and reasonable fees for the activities that it provides 
     based on the cost of the activities to the Graduate School.
       (B) Not federal funds.--Fees under subparagraph (A) shall 
     not be considered to be Federal funds and shall not required 
     to be deposited in the Treasury of the United States.
       (4) Name.--The Graduate School shall operate under the name 
     ``United States Department of Agriculture Graduate School'' 
     or such other name as the Graduate School may adopt.
       (d) General Administration Board.--
       (1) Appointment.--The Secretary shall appoint a General 
     Administration Board to serve as a governing board subject to 
     regulation by the Secretary.
       (2) Supervision.--The Graduate School shall be subject to 
     the supervision and direction of the Board.
       (3) Duties.--The Board shall--
       (A) formulate broad policies in accordance with which the 
     Graduate School shall be administered;
       (B) take all steps necessary to see that the highest 
     possible educational standards are maintained;
       (C) exercise general supervision over the administration of 
     the Graduate School; and
       (D) establish such bylaws, rules, and procedures as may be 
     necessary for the fulfillment of the duties described in 
     subparagraph (A), (B), and (C).
       (4) Director and other officers.--The Board shall select 
     the Director and such other officers as the Board may 
     consider necessary, who shall serve on such terms and perform 
     such duties as the Board may prescribe.
       (5) Borrowing.--The Board may authorize the Director to 
     borrow money on the credit of the Graduate School.
       (e) Director of the Graduate School.--
       (1) Duties.--The Director shall be responsible, subject to 
     the supervision and direction of the Board, for carrying out 
     the functions of the Graduate School.
       (2) Investment of funds.--The Board may authorize the 
     Director to invest funds held in excess of the current 
     operating requirements of the Graduate School for purposes of 
     maintaining a reasonable reserve.
       (f) Liability.--The Director and the members of the Board 
     shall not be held personally liable for any loss or damage 
     that may accrue to the funds of the Graduate School as the 
     result of any act or exercise of discretion performed in 
     carrying out the duties described in this section.
       (g) Employees.--Employees of the Graduate School are 
     employees of a nonappropriated fund instrumentality and shall 
     not be considered to be Federal employees.
       (h) Not a Federal Agency.--The Graduate School shall not be 
     considered to be a Federal Agency for purposes of--
       (1) chapter 171 of title 28, United States Code;
       (2) section 552 or 552a of title 28, United States Code; or
       (3) the Federal Advisory Committee Act (5 U.S.C. App.).
       (i) Acceptance of Donations.--The Graduate School shall not 
     accept a donation from a person that is actively engaged in a 
     procurement activity with the Graduate School or has an 
     interest that may be substantially affected by the 
     performance or nonperformance of an official duty of a member 
     of the Board or an employee of the Graduate School.
       (j) Administrative Provisions.--In order to carry out the 
     functions of the Graduate School, the Graduate School may--
       (1) accept, use, hold, dispose, and administer gifts, 
     bequests, or devises of money, securities, and other real or 
     personal property made for the benefit of, or in connection 
     with, the Graduate School;
       (2) notwithstanding any other law--
       (A) acquire real property in the District of Columbia and 
     in other places by lease, purchase, or otherwise;
     
[[Page S1222]]

       (B) maintain, enlarge, or remodel any such property; and
       (C) have sole control of any such property;
       (3) enter into contracts without regard to the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471) or any other law that prescribes procedures for the 
     procurement of property or services by an executive agency;
       (4) dispose of real and personal property without regard to 
     the requirements of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471); and
       (5) use the facilities and resources of the Department, on 
     the condition that any costs incurred by the Department that 
     are attributable solely to Graduate School operations and all 
     costs incurred by the Graduate School arising out of such 
     operations shall be borne by the fees paid by or on behalf of 
     students or by other means and not with Federal funds.

     SEC. 549. STUDENT INTERN SUBSISTENCE PROGRAM.

       (a) Definition.--In this section, the term ``student 
     intern'' means a person who--
       (1) is employed by the Department of Agriculture to assist 
     scientific, professional, administrative, or technical 
     employees of the Department; and
       (2) is a student in good standing at an accredited college 
     or university pursuing a course of study related to the field 
     in which the person is employed by the Department.
       (b) Payment of Certain Expenses by the Secretary.--The 
     Secretary of Agriculture may, out of user fee funds or funds 
     appropriated to any agency, pay for lodging expenses, 
     subsistence expenses, and transportation expenses of a 
     student intern (including expenses of transportation to and 
     from the student intern's residence at or near the college or 
     university attended by the student intern and the official 
     duty station at which the student intern is employed).

     SEC. 550. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.

       (a) In General.--
       (1) Release of interest.--After execution of the agreement 
     described in subsection (b), the Secretary of Agriculture 
     shall release the condition stated in the deed on the land 
     described in subsection (c) that the land be used for public 
     purposes, and that if the land is not so used, that the land 
     revert the United States, on the condition that the land be 
     used exclusively for cemetery purposes, and that if the land 
     is not so used, that the land revert the United States.
       (2) Bankhead-jones act.--Section 32(c) of the Bankhead-
     Jones Farm Tenant Act (7 U.S.C. 1011(c)) shall not apply to 
     the release under paragraph (1).
       (b) Agreement.--The Secretary of Agriculture shall make the 
     release under in subsection (a) on execution by the Board of 
     Trustees of the University of Arkansas, in consideration of 
     the release, of an agreement, satisfactory to the Secretary 
     of Agriculture, that--
       (1) the Board of Trustees will not sell, lease, exchange, 
     or otherwise dispose of the land described in subsection (c) 
     except to the White Oak Cemetery Association of Washington 
     County, Arkansas, or a successor organization, for exclusive 
     use for an expansion of the cemetery maintained by the 
     Association; and
       (2) the proceeds of such a disposition of the land will be 
     deposited and held in an account open to inspection by the 
     Secretary of Agriculture, and used, if withdrawn from the 
     account, for public purposes.
       (c) Land Description.--The land described in this 
     subsection is the land conveyed to the Board of Trustees of 
     the University of Arkansas, with certain other land, by deed 
     dated November 18, 1953, comprising approximately 2.2 acres 
     located within property of the University of Arkansas in 
     Washington, County, Arkansas, commonly known as the ``Savor 
     property'' and described as follows:
       The part of Section 20, Township 17 north, range 31 west, 
     beginning at the north corner of the White Oak Cemetery and 
     the University of Arkansas Agricultural Experiment Station 
     farm at Washington County road #874, running west 
     approximately 330 feet, thence south approximately 135 feet, 
     thence southeast approximately 384 feet, thence north 
     approximately 330 feet to the point of beginning.

     SEC. 551. ADVISORY BOARD ON AGRICULTURAL AIR QUALITY.

       (a) Findings.--Congress finds that--
       (1) various studies have identified agriculture as a major 
     atmospheric polluter;
       (2) Federal research activities are underway to determine 
     the extent of the pollution problem and the extent of the 
     role of agriculture in the problem; and
       (3) any Federal policy decisions that may result, and any 
     Federal regulations that may be imposed on the agricultural 
     sector, should be based on sound scientific findings;
       (b) Purpose.--The purpose of this section is to establish 
     an advisory board to assist and provide the Secretary of 
     Agriculture with information, analyses, and policy 
     recommendations for determining matters of fact and technical 
     merit and addressing scientific questions dealing with 
     particulate matter less than 10 microns that become lodged in 
     human lungs (known as ``PM10'') and other airborne 
     particulate matter or gases that affect agricultural 
     production yields and the economy.
       (c) Establishment.--
       (1) In general.--The Secretary of Agriculture may establish 
     a board to be known as the ``Advisory Board on Agricultural 
     Air Quality'' (referred to in this section as the ``Board'') 
     to advise the Secretary, through the Chief of the Natural 
     Resources Conservation Service, with respect to carrying out 
     this act and obligations agriculture incurred under the Clean 
     Air Act (42 U.S.C. 7401 et seq.) and the Act entitled `An Act 
     to amend the Clean Air Act to provide for attainment and 
     maintenance of health protective national ambient air quality 
     standards, and for other purposes', approved November 15, 
     1990 (commonly known as the `Clean Air Act Amendments of 
     1990') (42 U.S.C. 7401 et seq.).
       (2) Oversight coordination.--The Secretary of Agriculture 
     shall provide oversight and coordination with respect to 
     other Federal departments and agencies to ensure 
     intergovernmental cooperation in research activities and to 
     avoid duplication of Federal efforts.
       (d) Composition.--
       (1) In general.--The Board shall be composed of at least 17 
     members appointed by the Secretary in consultation with the 
     Administrator of the Environmental Protection Agency.
       (2) Regional representation.--The membership of the Board 
     shall be 2 persons from each of the 6 regions of the Natural 
     Resources Conservation Service, of whom 1 from each region 
     shall be an agricultural producer.
       (3) Atmospheric scientist.--At least 1 member of the Board 
     shall be an atmospheric scientist.
       (e) Chairperson.--The Chief of the Natural Resources 
     Conservation Service shall--
       (1) serve as chairman of the Board; and
       (2) provide technical support to the Board.
       (f) Term.--Each member of the Board shall be appointed for 
     a 3-year term, except that the Secretary of Agriculture shall 
     appoint 4 of the initial members for a term of 1 year and 4 
     for a term of 2 years.
       (g) Meetings.--The Board shall meet not less than twice 
     annually.
       (h) Compensation.--Members of the Board shall serve without 
     compensation, but while away from their homes or regular 
     place of business in performance of services for the Board, 
     members of the Board shall be allowed travel expenses, 
     including a per diem allowance in lieu of subsistence, in the 
     same manner as persons employed in Government service are 
     allowed travel expenses under section 5703 of title 5, United 
     States Code.
       (i) Funding.--The Board shall be funded using 
     appropriations for conservation operations.

     SEC. 552. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       The Consolidated Farm and Rural Development Act is amended 
     by inserting after section 306C (7 U.S.C. 1926c) the 
     following:

     ``SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       ``(a) In General.--The Secretary may make grants to the 
     State of Alaska for the benefit of rural or Native villages 
     in Alaska to provide for the development and construction of 
     water and wastewater systems to improve the health and 
     sanitation conditions in those villages.
       ``(b) Matching Funds.--To be eligible to receive a grant 
     under subsection (a), the State of Alaska shall provide equal 
     matching funds from non-Federal sources.
       ``(c) Consultation with the State of Alaska.--The Secretary 
     shall consult with the State of Alaska on a method of 
     prioritizing the allocation of grants under subsection (a) 
     according to the needs of, and relative health and sanitation 
     conditions in, each village.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 1996 through 2002.''.

     SEC. 553. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

       Section 310B(j) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(j)) is amended by striking 
     ``Systems.--The'' and inserting the following: ``Systems.--
       ``(1) Definition of statewide.--In this subsection, the 
     term `statewide' means having a coverage area of not less 
     than 90 percent of the population of a State and 80 percent 
     of the rural land area of the State (as determined by the 
     Secretary).
       ``(2) Grants.--The''.

     SEC. 554. WILDLIFE HABITAT INCENTIVES PROGRAM.

       (a) In General.--The Secretary of Agriculture, in 
     consultation with the State Technical Committee, shall 
     establish a program in the Natural Resources Conservation 
     Service to be known as the Wildlife Habitat Incentive 
     Program.
       (b) Cost-Share Payments.--The Program shall make cost-share 
     payments to landowners to develop upland wildlife, wetland 
     wildlife, threatened and endangered species, fisheries, and 
     other types of wildlife habitat approved by the Secretary.
       (c) Funding.--To carry out this section, $10,000,000 shall 
     be made available for each of fiscal years 1996 through 2002 
     from funds made available to carry out subchapter B of 
     chapter 1 of subtitle D of title XII of the Food Security Act 
     of 1985 (16 U.S.C. 3831 et seq.).

     SEC. 555. INDIAN RESERVATIONS.

       (a) Indian Reservation Extension Agent Program.--
       (1) Reauthorization.--The program established under section 
     1677 of the Food, Agriculture, Conservation, and Trade Act of 
     1990 (7 U.S.C. 5930) is reauthorized through fiscal year 
     2002.
       (2) Reduced regulatory burden.--On a determination by the 
     Secretary of Agriculture 

[[Page S1223]]
     that a program carried out under section 1677 of the Act (7 U.S.C. 
     5930) has been satisfactorily administered for not less than 
     2 years, the Secretary shall implement a reduced re-
     application process for the continued operation of the 
     program in order to reduce regulatory burdens on 
     participating university and tribal entities.
       (b) Memorandum of Agreement.--
       (1) In general.--Not later than January 6, 1997, the 
     Secretary shall develop and implement a formal Memorandum of 
     Agreement with the 29 tribally controlled colleges eligible 
     under Federal law to receive funds from the Secretary of 
     Agriculture as partial land grant institutions.
       (2) Equitable participation.--The Memorandum shall 
     establish programs to ensure that tribally-controlled 
     colleges and Native American communities equitably 
     participate in Department of Agriculture employment programs, 
     services, and resources.

     SEC. 556. ICD REIMBURSEMENT FOR OVERHEAD EXPENSES.

       Section 1542(d)(1)(D) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (Public Law 101-624;7 
     U.S.C. 5622 note) is amended by adding at the end the 
     following: ``Notwithstanding any other provision of law, the 
     assistance shall include assistance for administrative and 
     overhead expenses, to the extent that the expenses were 
     incurred pursuant to reimbursable agreements entered into 
     prior to September 30, 1993, the expenses do not exceed 
     $2,000,000 per year, and the expenses were not incurred for 
     information technology systems.''.

     SEC. 557. CLARIFICATION OF EFFECT OF RESOURCE PLANNING ON 
                   ALLOCATION OR USE OF WATER.

       (a) National Forest System Resource Planning.--Section 6 of 
     the Forest and Rangeland Renewable Resources Planning Act of 
     1974 (16 U.S.C. 1604) is amended by adding at the end the 
     following new subsection:
       ``(n) Limitation on Authority.--Nothing in this section 
     shall be construed to supersede, abrogate or otherwise impair 
     any right or authority of a State to allocate quantities of 
     water (including boundary waters). Nothing in this section 
     shall be implemented, enforced, or construed to allow any 
     officer or agency of the United States to utilize directly or 
     indirectly the authorities established under this section to 
     impose any requirement not imposed by the State which would 
     supersede, abrogate, or otherwise impair rights to the use of 
     water resources allocated under State law, interstate water 
     compact, or Supreme Court decree, or held by the United 
     States for use by a State, its political subdivisions, or its 
     citizens. No water rights arise in the United States or any 
     other person under the provisions of this Act.''.
       (b) Authorization to Grant Rights-of-Way.--Section 501 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1761) is amended as it applies to the Secretary of 
     Agriculture--
       (1) in subsection (c)(1)--
       (A) by striking subparagraph (B);
       (B) in subparagraph (D), by striking ``originally 
     constructed'';
       (C) in subparagraph (G), by striking ``1996'' and inserting 
     ``1998''; and
       (D) by redesignating subparagraphs (C) through (G) as 
     subparagraphs (B) through (F), respectively;
       (2) in subsection (c)(3)(A), by striking the second and 
     third sentences; and
       (3) by adding at the end the following new subsection:
       ``(e) Effect on Valid Existing Rights.--Notwithstanding any 
     provision of this section, the Secretary of Agriculture may 
     not require, as a condition of, or in connection with, the 
     renewal of a right-of-way under this section, a restriction 
     or limitation on the operation, use, repair, or replacement 
     of an existing water supply facility which is located on or 
     above National Forest lands or the exercise and use of 
     existing water rights, if such condition would reduce the 
     quantity of water which would otherwise be made available for 
     use by the owner of such facility or water rights, or cause 
     an increase in the cost of the water supply provided from 
     such facility.''.
                            TITLE VI--CREDIT
                    Subtitle A--Agricultural Credit

                    CHAPTER 1--FARM OWNERSHIP LOANS

     SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

       Section 302 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1922) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Direct Loans.--
       ``(1) In general.--Subject to paragraph (3), the Secretary 
     may only make a direct loan under this subtitle to a farmer 
     or rancher who has operated a farm or ranch for not less than 
     3 years and--
       ``(A) is a qualified beginning farmer or rancher;
       ``(B) has not received a previous direct farm ownership 
     loan made under this subtitle; or
       ``(C) has not received a direct farm ownership loan under 
     this subtitle more than 10 years before the date the new loan 
     would be made.
       ``(2) Youth Loans.--The operation of an enterprise by a 
     youth under section 311(b) shall not be considered the 
     operation of a farm or ranch for purposes of paragraph (1).
       ``(3) Transition Rule.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     paragraph (1) shall not apply to a farmer or rancher who has 
     a direct loan outstanding under this subtitle on the date of 
     enactment of this paragraph.
       ``(B) Less than 5 years.--If, as of the date of enactment 
     of this paragraph, a farmer or rancher has had a direct loan 
     outstanding under this subtitle for less than 5 years, the 
     Secretary shall not make another loan to the farmer or 
     rancher under this subtitle after the date that is 10 years 
     after the date of enactment of this paragraph.
       ``(C) 5 years or more.--If, as of the date of enactment of 
     this paragraph, a farmer or rancher has had a direct loan 
     outstanding under this subtitle for 5 years or more, the 
     Secretary shall not make another loan to the farmer or 
     rancher under this subtitle after the date that is 5 years 
     after the date of enactment of this paragraph.''.

     SEC. 602. PURPOSES OF LOANS.

       Section 303 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1923) is amended to read as follows:

     ``SEC. 303. PURPOSES OF LOANS.

       ``(a) Allowed Purposes.--
       ``(1) Direct loans.--A farmer or rancher may use a direct 
     loan made under this subtitle only for--
       ``(A) acquiring or enlarging a farm or ranch;
       ``(B) making capital improvements to a farm or ranch;
       ``(C) paying loan closing costs related to acquiring, 
     enlarging, or improving a farm or ranch; or
       ``(D) paying for activities to promote soil and water 
     conservation and protection under section 304 on the farm or 
     ranch.
       ``(2) Guaranteed loans.--A farmer or rancher may use a loan 
     guaranteed under this subtitle only for--
       ``(A) acquiring or enlarging a farm or ranch;
       ``(B) making capital improvements to a farm or ranch;
       ``(C) paying loan closing costs related to acquiring, 
     enlarging, or improving a farm or ranch;
       ``(D) paying for activities to promote soil and water 
     conservation and protection under section 304 on the farm or 
     ranch; or
       ``(E) refinancing indebtedness.
       ``(b) Preferences.--In making or guaranteeing a loan for 
     farm or ranch purchase, the Secretary shall give a preference 
     to a person who--
       ``(1) has a dependent family;
       ``(2) to the extent practicable, is able to make an initial 
     down payment; or
       ``(3) is an owner of livestock or farm or ranch equipment 
     that is necessary to successfully carry out farming or 
     ranching operations.
       ``(c) Hazard Insurance Requirement.--
       ``(1) In general.--The Secretary may not make a loan to a 
     farmer or rancher under this subtitle unless the farmer or 
     rancher has, or agrees to obtain, hazard insurance on any 
     real property to be acquired or improved with the loan.
       ``(2) Determination.--Not later than 180 days after the 
     date of enactment of this subsection, the Secretary shall 
     determine the appropriate level of insurance to be required 
     under paragraph (1).
       ``(3) Transitional provision.--Paragraph (1) shall not 
     apply until the Secretary makes the determination required 
     under paragraph (2).''.

     SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

       Section 304 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1924) is amended--
       (1) by striking subsections (b) and (c);
       (2) by striking ``Sec. 304. (a)(1) Loans'' and inserting 
     the following:

     ``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

       ``(a) In General.--Loans'';
       (3) by striking ``(2) In making or insuring'' and inserting 
     the following:
       ``(b) Priority.--In making or guaranteeing'';
       (4) by striking ``(3) The Secretary'' and inserting the 
     following:
       ``(c) Loan Maximum.--The Secretary'';
       (5) by redesignating subparagraphs (A) through (F) of 
     subsection (a) (as amended by paragraph (2)) as paragraphs 
     (1) through (6), respectively; and
       (6) by redesignating subparagraphs (A) and (B) of 
     subsection (c) (as amended by paragraph (4)) as paragraphs 
     (1) and (2), respectively.

     SEC. 604. INTEREST RATE REQUIREMENTS.

       Section 307(a)(3) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1927(a)(3)) is amended--
       (1) in subparagraph (B), by inserting ``subparagraph (D) 
     and in'' after ``Except as provided in''; and
       (2) by adding at the end the following:
       ``(D) Joint financing arrangement.--If a direct farm 
     ownership loan is made under this subtitle as part of a joint 
     financing arrangement and the amount of the direct farm 
     ownership loan does not exceed 50 percent of the total 
     principal amount financed under the arrangement, the interest 
     rate on the direct farm ownership loan shall be 4 percent 
     annually.''.

     SEC. 605. INSURANCE OF LOANS.

       Section 308 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1928) is amended to read as follows:

     ``SEC. 308. FULL FAITH AND CREDIT.

       ``(a) In General.--A contract of insurance or guarantee 
     executed by the Secretary under this title shall be an 
     obligation supported by the full faith and credit of the 
     United States.
     
[[Page S1224]]

       ``(b) Contestability.--A contract of insurance or guarantee 
     executed by the Secretary under this title shall be 
     incontestable except for fraud or misrepresentation that the 
     lender or any holder--
       ``(1) has actual knowledge of at the time the contract or 
     guarantee is executed; or
       ``(2) participates in or condones.''.

     SEC. 606. LOANS GUARANTEED.

       Section 309(h) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1929(h)) is amended by adding at 
     the end the following:
       ``(4) Maximum guarantee of 90 percent.--Except as provided 
     in paragraph (5), a loan guarantee under this title shall be 
     for not more than 90 percent of the principal and interest 
     due on the loan.
       ``(5) Refinanced loans guaranteed at 95 percent.--The 
     Secretary shall guarantee 95 percent of--
       ``(A) in the case of a loan that solely refinances a direct 
     loan made under this title, the principal and interest due on 
     the loan on the date of the refinancing; or
       ``(B) in the case of a loan that is used for multiple 
     purposes, the portion of the loan that refinances the 
     principal and interest due on a direct loan made under this 
     title that is outstanding on the date the loan is guaranteed.
       ``(6) Beginning farmer loans guaranteed up to 95 percent.--
     The Secretary may guarantee up to 95 percent of--
       ``(A) a farm ownership loan for acquiring a farm or ranch 
     to a borrower who is participating in the down payment loan 
     program under section 310E; or
       ``(B) an operating loan to a borrower who is participating 
     in the down payment loan program under section 310E that is 
     made during the period that the borrower has a direct loan 
     for acquiring a farm or ranch.''.

                       CHAPTER 2--OPERATING LOANS

     SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

       (a) In General.--Section 311 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1941) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Direct Loans.--
       ``(1) In general.--Subject to paragraph (3), the Secretary 
     may only make a direct loan under this subtitle to a farmer 
     or rancher who--
       ``(A) is a qualified beginning farmer or rancher who has 
     not operated a farm or ranch, or who has operated a farm or 
     ranch for not more than 5 years;
       ``(B) has not had a previous direct operating loan under 
     this subtitle; or
       ``(C) has not had a previous direct operating loan under 
     this subtitle for more than 7 years.
       ``(2) Youth Loans.--In this subsection, the term `direct 
     operating loan' shall not include a loan made to a youth 
     under subsection (b).
       ``(3) Transition Rule.--If, as of the date of enactment of 
     this paragraph, a farmer or rancher has received a direct 
     operating loan under this subtitle during each of 4 or more 
     previous years, the borrower shall be eligible to receive a 
     direct operating loan under this subtitle during 3 additional 
     years after the date of enactment of this paragraph.''.
       (b) Youth Enterprises Not Farming or Ranching.--Section 
     311(b) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1941(b)) is amended by adding at the end the 
     following:
       ``(4) Youth enterprises not farming or ranching.--The 
     operation of an enterprise by a youth under this subsection 
     shall not be considered the operation of a farm or ranch 
     under this title.''.

     SEC. 612. PURPOSES OF OPERATING LOANS.

       Section 312 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1942) is amended to read as follows:

     ``SEC. 312. PURPOSES OF LOANS.

       ``(a) In General.--A direct loan may be made under this 
     subtitle only for--
       ``(1) paying the costs incident to reorganizing a farming 
     or ranching system for more profitable operation;
       ``(2) purchasing livestock, poultry, or farm or ranch 
     equipment;
       ``(3) purchasing feed, seed, fertilizer, insecticide, or 
     farm or ranch supplies, or to meet other essential farm or 
     ranch operating expenses, including cash rent;
       ``(4) financing land or water development, use, or 
     conservation;
       ``(5) paying loan closing costs;
       ``(6) assisting a farmer or rancher in effecting an 
     addition to, or alteration of, the equipment, facilities, or 
     methods of operation of a farm or ranch to comply with a 
     standard promulgated under section 6 of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 655) or a standard 
     adopted by a State under a plan approved under section 18 of 
     the Act (29 U.S.C. 667), if the Secretary determines that 
     without assistance under this paragraph the farmer or rancher 
     is likely to suffer substantial economic injury due to 
     compliance with the standard;
       ``(7) training a limited-resource borrower receiving a loan 
     under section 310D in maintaining records of farming and 
     ranching operations;
       ``(8) training a borrower under section 359;
       ``(9) refinancing the indebtedness of a borrower if the 
     borrower--
       ``(A) has refinanced a loan under this subtitle not more 
     than 4 times previously; and
       ``(B)(i) is a direct loan borrower under this title at the 
     time of the refinancing and has suffered a qualifying loss 
     because of a natural disaster declared by the Secretary under 
     this title or a major disaster or emergency designated by the 
     President under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.); or
       ``(ii) is refinancing a debt obtained from a creditor other 
     than the Secretary; or
       ``(10) providing other farm, ranch, or home needs, 
     including family subsistence.
       ``(b) Guaranteed Loans.--A loan may be guaranteed under 
     this subtitle only for--
       ``(1) paying the costs incident to reorganizing a farming 
     or ranching system for more profitable operation;
       ``(2) purchasing livestock, poultry, or farm or ranch 
     equipment;
       ``(3) purchasing feed, seed, fertilizer, insecticide, or 
     farm or ranch supplies, or to meet other essential farm or 
     ranch operating expenses, including cash rent;
       ``(4) financing land or water development, use, or 
     conservation;
       ``(5) refinancing indebtedness;
       ``(6) paying loan closing costs;
       ``(7) assisting a farmer or rancher in effecting an 
     addition to, or alteration of, the equipment, facilities, or 
     methods of operation of a farm or ranch to comply with a 
     standard promulgated under section 6 of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 655) or a standard 
     adopted by a State under a plan approved under section 18 of 
     the Act (29 U.S.C. 667), if the Secretary determines that 
     without assistance under this paragraph the farmer or rancher 
     is likely to suffer substantial economic injury due to 
     compliance with the standard;
       ``(8) training a borrower under section 359; or
       ``(9) providing other farm, ranch, or home needs, including 
     family subsistence.
       ``(c) Hazard Insurance Requirement.--
       ``(1) In general.--The Secretary may not make a loan to a 
     farmer or rancher under this subtitle unless the farmer or 
     rancher has, or agrees to obtain, hazard insurance on any 
     property to be acquired with the loan.
       ``(2) Determination.--Not later than 180 days after the 
     date of enactment of this paragraph, the Secretary shall 
     determine the appropriate level of insurance to be required 
     under paragraph (1).
       ``(3) Transitional provision.--Paragraph (1) shall not 
     apply until the Secretary makes the determination required 
     under paragraph (2).
       ``(d) Private Reserve.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, the Secretary may reserve the lesser of 10 
     percent or $5,000 of the amount of a direct loan made under 
     this subtitle, to be placed in a nonsupervised bank account 
     that may be used at the discretion of the borrower for any 
     necessary family living need or purpose that is consistent 
     with any farming or ranching plan agreed to by the Secretary 
     and the borrower prior to the date of the loan.
       ``(2) Adjustment of reserve.--If a borrower exhausts the 
     amount of funds reserved under paragraph (1), the Secretary 
     may--
       ``(A) review and adjust the farm or ranch plan referred to 
     in paragraph (1) with the borrower and reschedule the loan;
       ``(B) extend additional credit;
       ``(C) use income proceeds to pay necessary farm, ranch, 
     home, or other expenses; or
       ``(D) provide additional available loan servicing.''.

     SEC. 613. PARTICIPATION IN LOANS.

       Section 315 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1945) is repealed.

     SEC. 614. LINE-OF-CREDIT LOANS.

       Section 316 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1946) is amended by adding at the end the 
     following:
       ``(c) Line-of-Credit Loans.--
       ``(1) In general.--A loan made or guaranteed by the 
     Secretary under this subtitle may be in the form of a line-
     of-credit loan.
       ``(2) Term.--A line-of-credit loan under paragraph (1) 
     shall terminate not later than 5 years after the date that 
     the loan is made or guaranteed.
       ``(3) Eligibility.--For purposes of determining eligibility 
     for a farm operating loan, each year in which a farmer or 
     rancher takes an advance or draws on a line-of-credit loan 
     the farmer or rancher shall be considered to have received an 
     operating loan for 1 year.''.

     SEC. 615. INSURANCE OF OPERATING LOANS.

       Section 317 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1947) is repealed.

     SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND 
                   RANCHERS.

       (a) In General.--Section 318 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1948) is repealed.
       (b) Conforming Amendment.--Section 310F of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1936) is repealed.

     SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
                   ELIGIBLE FOR GUARANTEED ASSISTANCE.

       Section 319 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1949) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Limitation on Period Borrowers Are Eligible for 
     Guaranteed Assistance.--
       ``(1) General rule.--Subject to paragraph (2), the 
     Secretary shall not guarantee a loan under this subtitle for 
     a borrower for any year after the 15th year that a loan is 
     made to, or a guarantee is provided with respect to, the 
     borrower under this subtitle.
     
[[Page S1225]]

       ``(2) Transition rule.--If, as of October 28, 1992, a 
     farmer or rancher has received a direct or guaranteed 
     operating loan under this subtitle during each of 10 or more 
     previous years, the borrower shall be eligible to receive a 
     guaranteed operating loan under this subtitle during 5 
     additional years after October 28, 1992.''.

                       CHAPTER 3--EMERGENCY LOANS

     SEC. 621. HAZARD INSURANCE REQUIREMENT.

       Section 321 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1961) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Hazard Insurance Requirement.--
       ``(1) In general.--The Secretary may not make a loan to a 
     farmer or rancher under this subtitle to cover a property 
     loss unless the farmer or rancher had hazard insurance that 
     insured the property at the time of the loss.
       ``(2) Determination.--Not later than 180 days after the 
     date of enactment of this paragraph, the Secretary shall 
     determine the appropriate level of insurance to be required 
     under paragraph (1).
       ``(3) Transitional provision.--Paragraph (1) shall not 
     apply until the Secretary makes the determination required 
     under paragraph (2).''.

     SEC. 622. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

       Section 324 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1964) is amended by striking ``Sec. 324. (a) No 
     loan'' and all that follows through the end of subsection (a) 
     and inserting the following:

     ``SEC. 324. TERMS OF LOANS.

       ``(a) Maximum Amount of Loan.--The Secretary may not make a 
     loan under this subtitle that--
       ``(1) exceeds the actual loss caused by a disaster; or
       ``(2) would cause the total indebtedness of the borrower 
     under this subtitle to exceed $500,000.''.

     SEC. 623. INSURANCE OF EMERGENCY LOANS.

       Section 328 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1968) is repealed.

                  CHAPTER 4--ADMINISTRATIVE PROVISIONS

     SEC. 631. USE OF COLLECTION AGENCIES.

       Section 331 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981) is amended by adding at the end the 
     following:
       ``(d) Private Collection Agency.--The Secretary may use a 
     private collection agency to collect a claim or obligation 
     described in subsection (b)(5).''.

     SEC. 632. NOTICE OF LOAN SERVICE PROGRAMS.

       Section 331D(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1981d(a)) is amended by striking 
     ``180 days delinquent in'' and inserting ``90 days past due 
     on''.

     SEC. 633. SALE OF PROPERTY.

       Section 335 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1985) is amended--
       (1) in subsection (b), by striking ``subsection (e)'' and 
     inserting ``subsections (c) and (e)'';
       (2) by striking subsection (c) and inserting the following:
       ``(c) Sale of Property.--
       ``(1) In general.--Subject to this subsection and 
     subsection (e)(1)(A), the Secretary shall offer to sell real 
     property that is acquired by the Secretary under this title 
     in the following order and method of sale:
       ``(A) Advertisement.--Not later than 15 days after 
     acquiring real property, the Secretary shall publicly 
     advertise the property for sale.
       ``(B) Beginning farmer or rancher.--
       ``(i) In general.--Not later than 75 days after acquiring 
     real property, the Secretary shall attempt to sell the 
     property to a qualified beginning farmer or rancher at 
     current market value based on a current appraisal.
       ``(ii) Random selection.--If more than 1 qualified 
     beginning farmer or rancher offers to purchase the property, 
     the Secretary shall select between the qualified applicants 
     on a random basis.
       ``(iii) Appeal of random selection.--A random selection or 
     denial by the Secretary of a beginning farmer or rancher for 
     farm inventory property under this subparagraph shall be 
     final and not administratively appealable.
       ``(C) Public sale.--If no acceptable offer is received from 
     a qualified beginning farmer or rancher under subparagraph 
     (B) within 75 days of acquiring the real property, the 
     Secretary shall, within 30 days, sell the property after 
     public notice at a public sale, and, if no acceptable bid is 
     received, by negotiated sale, at the best price obtainable.
       ``(2) Transitional rules.--
       ``(A) Previous lease.--In the case of real property 
     acquired prior to the date of enactment of this subparagraph 
     that the Secretary leased prior to the date of enactment of 
     this subparagraph, the Secretary shall offer to sell the 
     property according to paragraph (1) not later than 60 days 
     after the lease expires.
       ``(B) Previously in inventory.--In the case of real 
     property acquired prior to the date of enactment of this 
     subparagraph that the Secretary has not leased, the Secretary 
     shall offer to sell the property according to paragraph (1) 
     not later than 60 days after the date of enactment of this 
     subparagraph.
       ``(3) Interest.--
       ``(A) In general.--Subject to subparagraph (B), any 
     conveyance under this subsection shall include all of the 
     interest of the United States, including mineral rights.
       ``(B) Conservation.--The Secretary may for conservation 
     purposes grant or sell an easement, restriction, development 
     right, or similar legal right to a State, a political 
     subdivision of a State, or a private nonprofit organization 
     separately from the underlying fee or other rights owned by 
     the Secretary.
       ``(4) Other law.--This title shall not be subject to the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 471 et seq.).
       ``(5) Lease of property.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary may not lease any real property acquired under this 
     title.
       ``(B) Exception.--
       ``(i) Beginning farmer or rancher.--Notwithstanding 
     paragraph (1), the Secretary may lease or contract to sell a 
     farm or ranch acquired by the Secretary under this title to a 
     beginning farmer or rancher if the beginning farmer or 
     rancher qualifies for a credit sale or direct farm ownership 
     loan but credit sale authority for loans or direct farm 
     ownership funds, respectively, are not available.
       ``(ii) Term.--A lease or contract to sell to a beginning 
     farmer or rancher under clause (i) shall be until the earlier 
     of--

       ``(I) the date that is 18 months after the date of the 
     lease or sale; or
       ``(II) the date that direct farm ownership loan funds or 
     credit sale authority for loans become available to the 
     beginning farmer or rancher.

       ``(iii) Income-producing capability.--In determining the 
     rental rate on real property leased under this subparagraph, 
     the Secretary shall consider the income-producing capability 
     of the property during the term that the property is leased.
       ``(6) Determination by secretary.--
       ``(A) Expedited review.--On the request of an applicant, 
     the Secretary shall provide within 30 days of denial of the 
     applicant's application for an expedited review by the 
     appropriate State Director of whether the applicant is a 
     beginning farmer or rancher for the purpose of acquiring farm 
     inventory property.
       ``(B) Appeal.--The results of a review conducted by a State 
     Director under subparagraph (A) shall be final and not 
     administratively appealable.
       ``(C) Effects of review.--
       ``(i) In general.--The Secretary shall maintain statistical 
     data on the number and results of reviews conducted under 
     subparagraph (A) and whether the reviews adversely impact 
     on--

       ``(I) selling farm inventory property to beginning farmers 
     and ranchers; and
       ``(II) disposing of real property in inventory.

       ``(ii) Notification.--The Secretary shall notify the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate if the Secretary determines that reviews under 
     subparagraph (A) are adversely impacting the selling of farm 
     inventory property to beginning farmers or ranchers or on 
     disposing of real property in inventory.''; and
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) by striking subparagraphs (A) through (C);
       (ii) by redesignating subparagraphs (D) through (G) as 
     subparagraphs (A) through (D), respectively;
       (iii) in subparagraph (A) (as redesignated by clause 
     (ii))--

       (I) in clause (i)--

       (aa) in the matter preceding subclause (I), by striking 
     ``(G)'' and inserting ``(D)'';
       (bb) by striking subclause (I) and inserting the following:
       ``(I) the Secretary acquires property under this title that 
     is located within an Indian reservation; and'';
       (cc) in subclause (II), by striking ``, and'' at the end 
     and inserting a semicolon; and
       (dd) by striking subclause (III); and

       (II) in clause (iii), by striking ``The Secretary shall'' 
     and all that follows through ``of subparagraph (A),'' and 
     inserting ``Not later than 90 days after acquiring the 
     property, the Secretary shall''; and

       (iv) in subparagraph (D) (as redesignated by clause (ii))--

       (I) in clause (i), by striking ``(D)'' in the matter 
     following subclause (IV) and inserting ``(A)'';
       (II) in clause (iii)(I), by striking ``subparagraphs 
     (C)(i), (C)(ii), and (D)'' and inserting ``subparagraph 
     (A)''; and
       (III) by striking clause (v) and inserting the following:

       ``(v) Foreclosure procedures.--

       ``(I) Notice to borrower.--If a borrower-owner does not 
     voluntarily convey to the Secretary real property described 
     in clause (i), not less than 30 days before a foreclosure 
     sale of the property the Secretary shall provide the Indian 
     borrower-owner with the option of--

       ``(aa) requiring the Secretary to assign the loan and 
     security instruments to the Secretary of the Interior, 
     provided the Secretary of the Interior agrees to the 
     assignment, releasing the Secretary of Agriculture from all 
     further responsibility for collection of any amounts with 
     regard to the loan secured by the real property; or
       ``(bb) requiring the Secretary to assign the loan and 
     security instruments to the tribe having jurisdiction over 
     the reservation in which the real property is located, 
     provided the tribe agrees to the assignment.
     
[[Page S1226]]


       ``(II) Notice to tribe.--If a borrower-owner does not 
     voluntarily convey to the Secretary real property described 
     in clause (i), not less than 30 days before a foreclosure 
     sale of the property the Secretary shall provide written 
     notice to the Indian tribe that has jurisdiction over the 
     reservation in which the real property is located of--

       ``(aa) the sale;
       ``(bb) the fair market value of the property; and
       ``(cc) the requirements of this subparagraph.

       ``(III) Assumed Loans.--If an Indian tribe assumes a loan 
     under subclause (I)--

       ``(aa) the Secretary shall not foreclose the loan because 
     of any default that occurred prior to the date of the 
     assumption;
       ``(bb) the loan shall be for the lesser of the outstanding 
     principal and interest of the loan or the fair market value 
     of the property; and
       ``(cc) the loan shall be treated as though the loan was 
     made under Public Law 91-229 (25 U.S.C. 488 et seq.).'';
       (B) by striking paragraph (3);
       (C) in paragraph (4)--
       (i) by striking subparagraph (B);
       (ii) in subparagraph (A)--

       (I) in clause (i), by striking ``(i)''; and
       (II) by redesignating clause (ii) as subparagraph (B); and

       (iii) in subparagraph (B) (as redesignated by clause 
     (ii)(II)), by striking ``clause (i)'' and inserting 
     ``subparagraph (A)'';
       (D) by striking paragraph (5);
       (E) by striking paragraph (6);
       (F) by redesignating paragraph (4) as paragraph (3); and
       (G) by redesignating paragraphs (7) through (10) as 
     paragraphs (4) through (7), respectively.

     SEC. 634. DEFINITIONS.

       Section 343(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991(a)) is amended--
       (1) in paragraph (11)--
       (A) in the text preceding subparagraph (A), by striking 
     ``applicant--'' and inserting ``applicant, regardless of 
     whether participating in a program under section 310E--''; 
     and
       (B) in subparagraph (F)--
       (i) by striking ``15 percent'' and inserting ``35 
     percent''; and
       (ii) by inserting before the semicolon at the end the 
     following: ``, except that this subparagraph shall not apply 
     to loans under subtitle B''; and
       (2) by adding at the end the following:
       ``(12) Debt forgiveness.--
       ``(A) In general.--The term `debt forgiveness' means 
     reducing or terminating a farm loan made or guaranteed under 
     this title, in a manner that results in a loss to the 
     Secretary, through--
       ``(i) writing-down or writing-off a loan under section 353;
       ``(ii) compromising, adjusting, reducing, or charging-off a 
     debt or claim under section 331;
       ``(iii) paying a loss on a guaranteed loan under section 
     357; or
       ``(iv) discharging a debt as a result of bankruptcy.
       ``(B) Loan restructuring.--The term `debt forgiveness' does 
     not include consolidation, rescheduling, reamortization, or 
     deferral.''.

     SEC. 635. AUTHORIZATION FOR LOANS.

       Section 346 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1994) is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``with or without'' and all that follows through 
     ``administration'' and inserting the following: ``without 
     authority for the Secretary to transfer amounts between the 
     categories''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Authorization for Loans.--
       ``(1) In general.--The Secretary may make or guarantee 
     loans under subtitles A and B from the Agricultural Credit 
     Insurance Fund established under section 309 in not more than 
     the following amounts:
       ``(A) Fiscal year 1996.--For fiscal year 1996, 
     $3,085,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,500,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $600,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $1,900,000,000 shall be for operating loans under 
     subtitle B.

       ``(B) Fiscal year 1997.--For fiscal year 1997, 
     $3,165,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,580,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $630,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $1,950,000,000 shall be for operating loans under 
     subtitle B.

       ``(C) Fiscal year 1998.--For fiscal year 1998, 
     $3,245,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,660,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $660,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $2,000,000,000 shall be for operating loans under 
     subtitle B.

       ``(D) Fiscal year 1999.--For fiscal year 1999, 
     $3,325,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,740,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $690,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $2,050,000,000 shall be for operating loans under 
     subtitle B.

       ``(E) Fiscal year 2000.--For fiscal year 2000, 
     $3,435,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,850,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $750,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $2,100,000,000 shall be for operating loans under 
     subtitle B.

       ``(F) Fiscal year 2001.--For fiscal year 2001, 
     $3,435,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,850,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $750,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $2,100,000,000 shall be for operating loans under 
     subtitle B.

       ``(G) Fiscal year 2002.--For fiscal year 2002, 
     $3,435,000,000, of which--
       ``(i) $585,000,000 shall be for direct loans, of which--

       ``(I) $85,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $500,000,000 shall be for operating loans under 
     subtitle B; and

       ``(ii) $2,850,000,000 shall be for guaranteed loans, of 
     which--

       ``(I) $750,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(II) $2,100,000,000 shall be for operating loans under 
     subtitle B.

       ``(2) Beginning farmers and ranchers.--
       ``(A) Direct loans.--
       ``(i) Farm ownership loans.--Of the amounts made available 
     under paragraph (1) for direct farm ownership loans, the 
     Secretary shall reserve 70 percent of available funds for 
     qualified beginning farmers and ranchers.
       ``(ii) Operating loans.--Of the amounts made available 
     under paragraph (1) for direct operating loans, the Secretary 
     shall reserve for qualified beginning farmers and ranchers--

       ``(I) for fiscal year 1996, 25 percent;
       ``(II) for fiscal year 1997, 25 percent;
       ``(III) for fiscal year 1998, 25 percent;
       ``(IV) for fiscal year 1999, 30 percent; and
       ``(V) for each of fiscal years 2000 through 2002, 35 
     percent.

       ``(iii) Funds reserved until september 1.--Funds reserved 
     for beginning farmers or ranchers under this subparagraph 
     shall be reserved only until September 1 of each fiscal year.
       ``(B) Guaranteed loans.--
       ``(i) Farm ownership loans.--Of the amounts made available 
     under paragraph (1) for guaranteed farm ownership loans, the 
     Secretary shall reserve 25 percent for qualified beginning 
     farmers and ranchers.
       ``(ii) Operating loans.--Of the amounts made available 
     under paragraph (1) for guaranteed operating loans, the 
     Secretary shall reserve 40 percent for qualified beginning 
     farmers and ranchers.
       ``(iii) Funds reserved until april 1.--Funds reserved for 
     beginning farmers or ranchers under this subparagraph shall 
     be reserved only until April 1 of each fiscal year.
       ``(C) Reserved funds for all qualified beginning farmers 
     and ranchers.--If a qualified beginning farmer or rancher 
     meets the eligibility criteria for receiving a direct or 
     guaranteed loan under section 302, 310E, or 311, the 
     Secretary shall make or guarantee the loan if sufficient 
     funds reserved under this paragraph are available to make or 
     guarantee the loan.
       ``(3) Transfer for down payment loans.--
       ``(A) In general.--Notwithstanding subsection (a), subject 
     to subparagraph (B)--
       ``(i) beginning on August 1 of each fiscal year, the 
     Secretary shall use available unsubsidized guaranteed farm 
     operating loan funds to fund approved direct farm ownership 
     loans to beginning farmers and ranchers under the down 
     payment loan program established under section 310E; and
       ``(ii) beginning on September 1 of each fiscal year, the 
     Secretary shall use available unsubsidized guaranteed farm 
     operating loan funds to fund approved direct farm ownership 
     loans to beginning farmers and ranchers.
       ``(B) Limitation.--The Secretary shall limit the transfer 
     of funds under subparagraph (A) so that all guaranteed farm 
     operating loans that have been approved, or will be approved, 
     during the fiscal year shall be funded to extent of 
     appropriated amounts.
     
[[Page S1227]]

       ``(4) Transfer for credit sales of farm inventory 
     property.--
       ``(A) In general.--Notwithstanding subsection (a), subject 
     to subparagraphs (B) and (C), beginning on September 1 of 
     each fiscal year, the Secretary may use available emergency 
     disaster loan funds appropriated for the fiscal year to fund 
     the credit sale of farm real estate in the inventory of the 
     Secretary.
       ``(B) Supplemental appropriations.--The transfer authority 
     provided under subparagraph (A) does not include any 
     emergency disaster loan funds made available to the Secretary 
     for any fiscal year as a result of a supplemental 
     appropriation made by Congress.
       ``(C) Limitation.--The Secretary shall limit the transfer 
     of funds under subparagraph (A) so that all emergency 
     disaster loans that have been approved, or will be approved, 
     during the fiscal year shall be funded to extent of 
     appropriated amounts.''.

     SEC. 636. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY 
                   DEMONSTRATION PROJECT.

       (a) In General.--Section 351 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1999) is amended--
       (1) in subsection (f)--
       (A) by striking ``Each Farmers Home Administration county 
     supervisor'' and inserting ``The Secretary'';
       (B) by striking ``approved lenders'' and inserting 
     ``lenders''; and
       (C) by striking ``the Farmers Home Administration''; and
       (2) by striking subsection (h).
       (b) Technical Amendments.--
       (1) Section 1320 of the Food Security Act of 1985 (Public 
     Law 99-198; 7 U.S.C. 1999 note) is amended by striking 
     ``Effective only'' and all that follows through ``1995, the'' 
     and inserting ``The''.
       (2) Section 351(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1999) is amended--
       (A) by striking ``Sec. 351. (a) The'' and inserting the 
     following:

     ``SEC. 351. INTEREST RATE REDUCTION PROGRAM.

       ``(a) Establishment of Program.--
       ``(1) In general.--The''; and
       (B) by adding at the end the following:
       ``(2) Termination of authority.--The authority provided by 
     this subsection shall terminate on September 30, 2002.''.

     SEC. 637. HOMESTEAD PROPERTY.

       Section 352(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2000(c)) is amended--
       (1) in paragraph (1)(A), by striking ``90'' each place it 
     appears and inserting ``30''; and
       (2) in paragraph (6), by striking ``Within 30'' and all 
     that follows through ``title,'' and insert ``Not later than 
     the date of acquisition of the property securing a loan made 
     under this title (or, in the case of real property in 
     inventory on the effective date of the Agricultural Reform 
     and Improvement Act of 1996, not later than 5 days after the 
     date of enactment of the Act),'' and by striking the second 
     sentence.

     SEC. 638. RESTRUCTURING.

       Section 353 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2001) is amended--
       (1) in subsection (c)--
       (A) in paragraph (3) by striking subparagraph (C) and 
     inserting the following:
       ``(C) Cash flow margin.--
       ``(i) Assumption.--For the purpose of assessing under 
     subparagraph (A) the ability of a borrower to meet debt 
     obligations and continue farming operations, the Secretary 
     shall assume that the borrower needs up to 110 percent of the 
     amount indicated for payment of farm operating expenses, debt 
     service obligations, and family living expenses.
       ``(ii) Available income.--If an amount up to 110 percent of 
     the amount determined under subparagraph (A) is available, 
     the Secretary shall consider the income of the borrower to be 
     adequate to meet all expenses, including the debt obligations 
     of the borrower.''; and
       (B) by striking paragraph (6) and inserting the following:
       ``(6) Termination of loan obligations.--The obligations of 
     a borrower to the Secretary under a loan shall terminate if--
       ``(A) the borrower satisfies the requirements of paragraphs 
     (1) and (2) of subsection (b);
       ``(B) the value of the restructured loan is less than the 
     recovery value; and
       ``(C) not later than 90 days after receipt of the 
     notification described in paragraph (4)(B), the borrower pays 
     (or obtains third-party financing to pay) the Secretary an 
     amount equal to the current market value.'';
       (2) by striking subsection (k); and
       (3) by redesignating subsections (l) through (p) as 
     subsections (k) through (o), respectively.

     SEC. 639. TRANSFER OF INVENTORY LANDS.

       Section 354 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2002) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``The Secretary, without reimbursement,'' and inserting the 
     following:
       ``(a) In General.--Subject to subsection (b), the 
     Secretary'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) that is eligible to be disposed of in accordance with 
     section 335; and''; and
       (3) by adding at the end the following:
       ``(b) Conditions.--The Secretary may not transfer any 
     property or interest under subsection (a) unless--
       ``(1) at least 2 public notices are given of the transfer;
       ``(2) if requested, at least 1 public meeting is held prior 
     to the transfer; and
       ``(3) the Governor and at least 1 elected county official 
     are consulted prior to the transfer.''.

     SEC. 640. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

       Section 355 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2003) is amended by adding at the end the 
     following:
       ``(f) Implementation Consistent with Supreme Court 
     Holding.--Not later than 180 days after the date of enactment 
     of this subsection, the Secretary shall ensure that the 
     implementation of this section is consistent with the holding 
     of the Supreme Court in Adarand Constructors, Inc. v. 
     Federico Pena, Secretary of Transportation, 63 U.S.L.W. 4523 
     (U.S. June 12, 1995).''.

     SEC. 641. DELINQUENT BORROWERS AND CREDIT STUDY.

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

     ``SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN 
                   SERVICING FOR BORROWERS.

       ``The Secretary may not reschedule or reamortize a loan for 
     a borrower under this title who has not requested 
     consideration under section 331D(e) unless the borrower pays 
     a portion, as determined by the Secretary, of the interest 
     due on the loan.

     ``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS

       ``(a) Delinquent Borrowers Prohibited from Obtaining Direct 
     Operating Loans.--The Secretary may not make a direct 
     operating loan under subtitle B to a borrower who is 
     delinquent on any loan made or guaranteed under this title.
       ``(b) Loans Prohibited for Borrowers that Have Received 
     Debt Forgiveness.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary may not make or guarantee a loan under this title 
     to a borrower who received debt forgiveness under this title.
       ``(2) Exception.--The Secretary may make a direct or 
     guaranteed farm operating loan for paying annual farm or 
     ranch operating expenses to a borrower who was restructured 
     with debt write-down under section 353.
       ``(c) No More That 1 Debt Forgiveness For A Borrower On A 
     Direct Loan.--The Secretary may not provide debt forgiveness 
     to a borrower on a direct loan made under this title if the 
     borrower has received debt forgiveness on another direct loan 
     under this title.

     ``SEC. 374. CREDIT STUDY.

       ``(a) In General.--The Secretary of Agriculture shall 
     perform a study and report to the Committee on Agriculture in 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry in the Senate on the 
     demand for and availability of credit in rural areas for 
     agriculture, rural housing, and rural development.
       ``(b) Purpose.--The purpose of the study is to ensure that 
     Congress has current and comprehensive information to 
     consider as Congress deliberates on the credit needs of rural 
     America and the availability of credit to satisfy the needs 
     of rural America.
       ``(c) Items in Study.--The study should be based on the 
     most current available data and should include--
       ``(1) rural demand for credit from the Farm Credit System, 
     the ability of the Farm Credit System to meet the demand, and 
     the extent to which the Farm Credit System provided loans to 
     satisfy the demand;
       ``(2) rural demand for credit from the nation's banking 
     system, the ability of banks to meet the demand, and the 
     extent to which banks provided loans to satisfy the demand;
       ``(3) rural demand for credit from the Secretary, the 
     ability of the Secretary to meet the demand, and the extent 
     to which the Secretary provided loans to satisfy the demand;
       ``(4) rural demand for credit from other Federal agencies, 
     the ability of the agencies to meet the demand, and the 
     extent to which the agencies provided loans to satisfy the 
     demand;
       ``(5) what measure or measures exist to gauge the overall 
     demand for rural credit and the extent to which rural demand 
     for credit is satisfied, and what the measures have shown;
       ``(6) a comparison of the interest rates and terms charged 
     by the Farm Credit System Farm Credit Banks, production 
     credit associations, and banks for cooperatives with the 
     rates and terms charged by the nation's banks for credit of 
     comparable risk and maturity;
       ``(7) the advantages and disadvantages of the modernization 
     and expansion proposals of the Farm Credit System on the Farm 
     Credit System, the nation's banking system, rural users of 
     credit, local rural communities, and the Federal Government, 
     including--
       ``(A) any added risk to the safety and soundness of the 
     Farm Credit System that may result from approval of a 
     proposal; and
       ``(B) any positive or adverse impacts on competition 
     between the Farm Credit System and the nation's banks in 
     providing credit to rural users;
       ``(8) the nature and extent of the unsatisfied rural credit 
     need that the Farm Credit System proposal are supposed to 
     address and what aspects of the present Farm Credit System 
     prevent the Farm Credit System from meeting the need;
       ``(9) the advantages and disadvantages of the proposal by 
     commercial bankers to allow 

[[Page S1228]]
     banks access to the Farm Credit System as a funding source on the Farm 
     Credit System, the nation's banking system, rural users of 
     credit, local rural communities, and the Federal Government, 
     including--
       ``(A) any added risk to the safety and soundness of the 
     Farm Credit System that may result from approval of the 
     proposal; and
       ``(B) any positive or adverse impacts on competition 
     between the Farm Credit System and the nation's banks in 
     providing credit to rural users; and
       ``(10) problems that commercial banks have in obtaining 
     capital for lending in rural areas, how access to Farm Credit 
     System funds would improve the availability of capital in 
     rural areas in ways that cannot be achieved in the present 
     system, and the possible effects on the viability of the Farm 
     Credit System of granting banks access to Farm Credit System 
     funds.
       ``(d) Interagency Task Force.--In completing the study, the 
     Secretary shall use, among other things, data and information 
     obtained by the interagency task force on rural credit.''.

                     CHAPTER 5--GENERAL PROVISIONS

     SEC. 651. CONFORMING AMENDMENTS.

       (a) Section 307(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1927(a)) is amended--
       (1) in paragraph (4), by striking ``304(b), 306(a)(1), and 
     310B'' and inserting ``306(a)(1) and 310B''; and
       (2) in paragraph (6)(B)--
       (A) by striking clauses (i), (ii), and (vii);
       (B) in clause (v), by adding ``and'' at the end;
       (C) in clause (vi), by striking ``, and'' at the end and 
     inserting a period; and
       (D) by redesignating clauses (iii) through (vi) as clauses 
     (i) through (iv), respectively.
       (b) The second sentence of section 309(g)(1) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1929(g)(1)) is amended by striking ``section 308,''.
       (c) Section 309A of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1929a) is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``304(b), 306(a)(1), 306(a)(14), 310B, and 312(b)'' and 
     inserting ``306(a)(1), 306(a)(14), and 310B''; and
       (2) in subsection (b), by striking ``and section 308''.
       (d) Section 310B(d) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(d)) is amended--
       (1) by striking ``sections 304(b), 310B, and 312(b)'' each 
     place it appears in paragraphs (2), (3), and (4) and 
     inserting ``this section''; and
       (2) in paragraph (6), by striking ``this section, section 
     304, or section 312'' and inserting ``this section''.
       (e) The first sentence of section 310D(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1934(a)) is amended by striking ``paragraphs (1) through (5) 
     of section 303(a), or subparagraphs (A) through (E) of 
     section 304(a)(1)'' and inserting ``section 303(a), or 
     paragraphs (1) through (5) of section 304(b)''.
       (f) Section 311(b)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1941(b)(1)) is amended by striking 
     ``and for the purposes specified in section 312''.
       (g) Section 316(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1946(a)) is amended by striking 
     paragraph (3).
       (h) Section 343 of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991) is amended--
       (1) in subsection (a)(10), by striking ``recreation loan 
     (RL) under section 304,''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``351(h),''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Preservation loan service program.--The term 
     ``preservation loan service program'' means homestead 
     retention as authorized under section 352.''.
       (i) The first sentence of section 344 of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1992) is amended by 
     striking ``304(b), 306(a)(1), 310B, 312(b), or 312(c)'' and 
     inserting ``306(a)(1), 310B, or 312(c)''.
       (j) Section 353(l) of the Consolidated Farm and Rural 
     Development Act (as redesignated by section 638(3)) is 
     further amended by striking ``and subparagraphs (A)(i) and 
     (C)(i) of section 335(e)(1),''.
                     Subtitle B--Farm Credit System

           CHAPTER 1--AGRICULTURAL MORTGAGE SECONDARY MARKET

     SEC. 661. DEFINITION OF REAL ESTATE.

       Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa(1)(B)(ii)) is amended by striking ``with a 
     purchase price'' and inserting ``, excluding the land to 
     which the dwelling is affixed, with a value''.

     SEC. 662. DEFINITION OF CERTIFIED FACILITY.

       Section 8.0(3) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa(3)) is amended--
       (1) in subparagraph (A), by striking ``a secondary 
     marketing agricultural loan'' and inserting ``an agricultural 
     mortgage marketing''; and
       (2) in subparagraph (B), by striking ``, but only'' and all 
     that follows through ``(9)(B)''.

     SEC. 663. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE 
                   CORPORATION.

       Section 8.1(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-1(b)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) purchase qualified loans and issue securities 
     representing interests in, or obligations backed by, the 
     qualified loans, guaranteed for the timely repayment of 
     principal and interest.''.

     SEC. 664. POWERS OF THE CORPORATION.

       Section 8.3(c) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-3(c)) is amended--
       (1) by redesignating paragraphs (13) and (14) as paragraphs 
     (14) and (15), respectively; and
       (2) by inserting after paragraph (12) the following:
       ``(13) To purchase, hold, sell, or assign a qualified loan, 
     to issue a guaranteed security, representing an interest in, 
     or an obligation backed by, the qualified loan, and to 
     perform all the functions and responsibilities of an 
     agricultural mortgage marketing facility operating as a 
     certified facility under this title.''.

     SEC. 665. FEDERAL RESERVE BANKS AS DEPOSITARIES AND FISCAL 
                   AGENTS.

       Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-3) is amended--
       (1) in subsection (d), by striking ``may act as 
     depositories for, or'' and inserting ``shall act as 
     depositories for, and''; and
       (2) in subsection (e), by striking ``Secretary of the 
     Treasury may authorize the Corporation to use'' and inserting 
     ``Corporation shall have access to''.

     SEC. 666. CERTIFICATION OF AGRICULTURAL MORTGAGE MARKETING 
                   FACILITIES.

       Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-5) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting ``(other than the 
     Corporation)'' after ``agricultural mortgage marketing 
     facilities''; and
       (B) in paragraph (2), by inserting ``(other than the 
     Corporation)'' after ``agricultural mortgage marketing 
     facility''; and
       (2) in subsection (e)(1), by striking ``(other than the 
     Corporation)''.

     SEC. 667. GUARANTEE OF QUALIFIED LOANS.

       Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-6) is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``Corporation shall guarantee'' and 
     inserting the following: ``Corporation--
       ``(A) shall guarantee'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(B) may issue a security, guaranteed as to the timely 
     payment of principal and interest, that represents an 
     interest solely in, or an obligation fully backed by, a pool 
     consisting of qualified loans that--
       ``(i) meet the standards established under section 8.8; and
       ``(ii) have been purchased and held by the Corporation.'';
       (2) in subsection (d)--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (4), (5), and (6), respectively; and
       (3) in subsection (g)(2), by striking ``section 
     8.0(9)(B))'' and inserting ``section 8.0(9))''.

     SEC. 668. MANDATORY RESERVES AND SUBORDINATED PARTICIPATION 
                   INTERESTS ELIMINATED.

       (a) Guarantee of Qualified Loans.--Section 8.6 of the Farm 
     Credit Act of 1971 (12 U.S.C. 2279aa-6) is amended by 
     striking subsection (b).
       (b) Reserves and Subordinated Participation Interests.--
     Section 8.7 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
     7) is repealed.
       (c) Conforming Amendments.--
       (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa(9)(B)(i)) is amended by striking ``8.7, 8.8,'' 
     and inserting ``8.8''.
       (2) Section 8.6(a)(2) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa-6(a)(2)) is amended by striking ``subject to 
     the provisions of subsection (b)''.

     SEC. 669. STANDARDS REQUIRING DIVERSIFIED POOLS.

       (a) In General.--Section 8.6 of the Farm Credit Act of 1971 
     (12 U.S.C. 2279aa-6) (as amended by section 668) is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d) through (g) as 
     subsections (b) through (e), respectively.
       (b) Conforming Amendments.--
       (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa(9)(B)(i)) is amended by striking ``(f)'' and 
     inserting ``(d)''.
       (2) Section 8.13(a) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa-13(a)) is amended by striking ``sections 8.6(b) 
     and'' in each place it appears and inserting ``section''.
       (3) Section 8.32(b)(1)(C) of the Farm Credit Act of 1971 
     (12 U.S.C. 2279bb-1(b)(1)(C)) is amended--
       (A) by striking ``shall'' and inserting ``may''; and
       (B) by inserting ``(as in effect before the date of the 
     enactment of the Agricultural Reform and Improvement Act of 
     1996)'' before the semicolon.
       (4) Section 8.6(b) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279aa-6(b)) (as redesignated by subsection (a)(2)) is 
     amended--
       (A) by striking paragraph (4) (as redesignated by section 
     667(2)(B)); and
       (B) by redesignating paragraphs (5) and (6) (as 
     redesignated by section 667(2)(B)) as paragraphs (4) and (5), 
     respectively.

     SEC. 670. SMALL FARMS.

       Section 8.8(e) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-8(e)) is amended by 

[[Page S1229]]
     adding at the end the following: ``The Board shall promote and 
     encourage the inclusion of qualified loans for small farms 
     and family farmers in the agricultural mortgage secondary 
     market.''.

     SEC. 671. DEFINITION OF AN AFFILIATE.

       Section 8.11(e) of the Farm Credit Act of 1971 (21 U.S.C. 
     2279aa-11(e)) is amended--
       (1) by striking ``a certified facility or''; and
       (2) by striking ``paragraphs (3) and (7), respectively, of 
     section 8.0'' and inserting ``section 8.0(7)''.

     SEC. 672. STATE USURY LAWS SUPERSEDED.

       Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-12) is amended by striking subsection (d) and 
     inserting the following:
       ``(d) State Usury Laws Superseded.--A provision of the 
     Constitution or law of any State shall not apply to an 
     agricultural loan made by an originator or a certified 
     facility in accordance with this title for sale to the 
     Corporation or to a certified facility for inclusion in a 
     pool for which the Corporation has provided, or has committed 
     to provide, a guarantee, if the loan, not later than 180 days 
     after the date the loan was made, is sold to the Corporation 
     or included in a pool for which the Corporation has provided 
     a guarantee, if the provision--
       ``(1) limits the rate or amount of interest, discount 
     points, finance charges, or other charges that may be 
     charged, taken, received, or reserved by an agricultural 
     lender or a certified facility; or
       ``(2) limits or prohibits a prepayment penalty (either 
     fixed or declining), yield maintenance, or make-whole payment 
     that may be charged, taken, or received by an agricultural 
     lender or a certified facility in connection with the full or 
     partial payment of the principal amount due on a loan by a 
     borrower in advance of the scheduled date for the payment 
     under the terms of the loan, otherwise known as a prepayment 
     of the loan principal.''.

     SEC. 673. EXTENSION OF CAPITAL TRANSITION PERIOD.

       Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279bb-1) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``Not later than the expiration of the 2-year period 
     beginning on December 13, 1991,'' and inserting ``Not sooner 
     than the expiration of the 3-year period beginning on the 
     date of enactment of the Agricultural Reform and Improvement 
     Act of 1996,'';
       (2) in the first sentence of subsection (b)(2), by striking 
     ``5-year'' and inserting ``8-year''; and
       (3) in subsection (d)--
       (A) in the first sentence--
       (i) by striking ``The regulations establishing'' and 
     inserting the following:
       ``(1) In general.--The regulations establishing''; and
       (ii) by striking ``shall contain'' and inserting the 
     following: ``shall--
       ``(A) be issued by the Director for public comment in the 
     form of a notice of proposed rulemaking, to be first 
     published after the expiration of the period referred to in 
     subsection (a); and
       ``(B) contain''; and
       (B) in the second sentence, by striking ``The regulations 
     shall'' and inserting the following:
       ``(2) Specificity.--The regulations referred to in 
     paragraph (1) shall''.

     SEC. 674. MINIMUM CAPITAL LEVEL.

       Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279bb-2) is amended to read as follows:

     ``SEC. 8.33. MINIMUM CAPITAL LEVEL.

       ``(a) In General.--Except as provided in subsection (b), 
     for purposes of this subtitle, the minimum capital level for 
     the Corporation shall be an amount of core capital equal to 
     the sum of--
       ``(1) 2.75 percent of the aggregate on-balance sheet assets 
     of the Corporation, as determined in accordance with 
     generally accepted accounting principles; and
       ``(2) 0.75 percent of the aggregate off-balance sheet 
     obligations of the Corporation, which, for the purposes of 
     this subtitle, shall include--
       ``(A) the unpaid principal balance of outstanding 
     securities that are guaranteed by the Corporation and backed 
     by pools of qualified loans;
       ``(B) instruments that are issued or guaranteed by the 
     Corporation and are substantially equivalent to instruments 
     described in subparagraph (A); and
       ``(C) other off-balance sheet obligations of the 
     Corporation.
       ``(b) Transition Period.--
       ``(1) In general.--For purposes of this subtitle, the 
     minimum capital level for the Corporation--
       ``(A) prior to January 1, 1997, shall be the amount of core 
     capital equal to the sum of--
       ``(i) 0.45 percent of aggregate off-balance sheet 
     obligations of the Corporation;
       ``(ii) 0.45 percent of designated on-balance sheet assets 
     of the Corporation, as determined under paragraph (2); and
       ``(iii) 2.50 percent of on-balance sheet assets of the 
     Corporation other than assets designated under paragraph (2);
       ``(B) during the 1-year period ending December 31, 1997, 
     shall be the amount of core capital equal to the sum of--
       ``(i) 0.55 percent of aggregate off-balance sheet 
     obligations of the Corporation;
       ``(ii) 1.20 percent of designated on-balance sheet assets 
     of the Corporation, as determined under paragraph (2); and
       ``(iii) 2.55 percent of on-balance sheet assets of the 
     Corporation other than assets designated under paragraph (2);
       ``(C) during the 1-year period ending December 31, 1998, 
     shall be the amount of core capital equal to--
       ``(i) if the Corporation's core capital is not less than 
     $25,000,000 on January 1, 1998, the sum of--

       ``(I) 0.65 percent of aggregate off-balance sheet 
     obligations of the Corporation;
       ``(II) 1.95 percent of designated on-balance sheet assets 
     of the Corporation, as determined under paragraph (2); and
       ``(III) 2.65 percent of on-balance sheet assets of the 
     Corporation other than assets designated under paragraph (2); 
     or

       ``(ii) if the Corporation's core capital is less than 
     $25,000,000 on January 1, 1998, the amount determined under 
     subsection (a); and
       ``(D) on and after January 1, 1999, shall be the amount 
     determined under subsection (a).
       ``(2) Designated on-balance sheet assets.--For purposes of 
     this subsection, the designated on-balance sheet assets of 
     the Corporation shall be--
       ``(A) the aggregate on-balance sheet assets of the 
     Corporation acquired under section 8.6(e); and
       ``(B) the aggregate amount of qualified loans purchased and 
     held by the Corporation under section 8.3(c)(13).''.

     SEC. 675. CRITICAL CAPITAL LEVEL.

       Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C. 
     2279bb-3) is amended to read as follows:

     ``SEC. 8.34. CRITICAL CAPITAL LEVEL.

       ``For purposes of this subtitle, the critical capital level 
     for the Corporation shall be an amount of core capital equal 
     to 50 percent of the total minimum capital amount determined 
     under section 8.33.''.

     SEC. 676. ENFORCEMENT LEVELS.

       Section 8.35(e) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279bb-4(e)) is amended by striking ``during the 30-month 
     period beginning on the date of the enactment of this 
     section,'' and inserting ``during the period beginning on 
     December 13, 1991, and ending on the effective date of the 
     risk based capital regulation issued by the Director under 
     section 8.32,''.

     SEC. 677. RECAPITALIZATION OF THE CORPORATION.

       Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa 
     et seq.) is amended by adding at the end the following:

     ``SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.

       ``(a) Mandatory Recapitalization.--The Corporation shall 
     increase the core capital of the Corporation to an amount 
     equal to or greater than $25,000,000, not later than the 
     earlier of--
       ``(1) the date that is 2 years after the date of enactment 
     of this section; or
       ``(2) the date that is 180 days after the end of the first 
     calendar quarter that the aggregate on-balance sheet assets 
     of the Corporation, plus the outstanding principal of the 
     off-balance sheet obligations of the Corporation, equal or 
     exceed $2,000,000,000.
       ``(b) Raising Core Capital.--In carrying out this section, 
     the Corporation may issue stock under section 8.4 and 
     otherwise employ any recognized and legitimate means of 
     raising core capital in the power of the Corporation under 
     section 8.3.
       ``(c) Limitation on Growth of Total Assets.--During the 2-
     year period beginning on the date of enactment of this 
     section, the aggregate on-balance sheet assets of the 
     Corporation plus the outstanding principal of the off-balance 
     sheet obligations of the Corporation may not exceed 
     $3,000,000,000 if the core capital of the Corporation is less 
     than $25,000,000.
       ``(d) Enforcement.--If the Corporation fails to carry out 
     subsection (a) by the date required under paragraph (1) or 
     (2) of subsection (a), the Corporation may not purchase a new 
     qualified loan or issue or guarantee a new loan-backed 
     security until the core capital of the Corporation is 
     increased to an amount equal to or greater than 
     $25,000,000.''.

     SEC. 678. LIQUIDATION OF THE FEDERAL AGRICULTURAL MORTGAGE 
                   CORPORATION.

       Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa 
     et seq.) (as amended by section 677) is amended by adding at 
     the end the following:
  ``Subtitle C--Receivership, Conservatorship, and Liquidation of the 
               Federal Agricultural Mortgage Corporation

     ``SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP.

       ``(a) Voluntary Liquidation.--The Corporation may 
     voluntarily liquidate only with the consent of, and in 
     accordance with a plan of liquidation approved by, the Farm 
     Credit Administration Board.
       ``(b) Involuntary Liquidation.--
       ``(1) In general.--The Farm Credit Administration Board may 
     appoint a conservator or receiver for the Corporation under 
     the circumstances specified in section 4.12(b).
       ``(2) Application.--In applying section 4.12(b) to the 
     Corporation under paragraph (1)--
       ``(A) the Corporation shall also be considered insolvent if 
     the Corporation is unable to pay its debts as they fall due 
     in the ordinary course of business;
       ``(B) a conservator may also be appointed for the 
     Corporation if the authority of the Corporation to purchase 
     qualified loans or issue or guarantee loan-backed securities 
     is suspended; and
       ``(C) a receiver may also be appointed for the Corporation 
     if--
       ``(i)(I) the authority of the Corporation to purchase 
     qualified loans or issue or guarantee loan-backed securities 
     is suspended; or
     
[[Page S1230]]

       ``(II) the Corporation is classified under section 8.35 as 
     within level III or IV and the alternative actions available 
     under subtitle B are not satisfactory; and
       ``(ii) the Farm Credit Administration determines that the 
     appointment of a conservator would not be appropriate.
       ``(3) No effect on supervisory actions.--The grounds for 
     appointment of a conservator for the Corporation under this 
     subsection shall be in addition to those in section 8.37.
       ``(c) Appointment of Conservator or Receiver.--
       ``(1) Qualifications.--Notwithstanding section 4.12(b), if 
     a conservator or receiver is appointed for the Corporation, 
     the conservator or receiver shall be--
       ``(A) the Farm Credit Administration or any other 
     governmental entity or employee, including the Farm Credit 
     System Insurance Corporation; or
       ``(B) any person that--
       ``(i) has no claim against, or financial interest in, the 
     Corporation or other basis for a conflict of interest as the 
     conservator or receiver; and
       ``(ii) has the financial and management expertise necessary 
     to direct the operations and affairs of the Corporation and, 
     if necessary, to liquidate the Corporation.
       ``(2) Compensation.--
       ``(A) In general.--A conservator or receiver for the 
     Corporation and professional personnel (other than a Federal 
     employee) employed to represent or assist the conservator or 
     receiver may be compensated for activities conducted as, or 
     for, a conservator or receiver.
       ``(B) Limit on compensation.--Compensation may not be 
     provided in amounts greater than the compensation paid to 
     employees of the Federal Government for similar services, 
     except that the Farm Credit Administration may provide for 
     compensation at higher rates that are not in excess of rates 
     prevailing in the private sector if the Farm Credit 
     Administration determines that compensation at higher rates 
     is necessary in order to recruit and retain competent 
     personnel.
       ``(C) Contractual arrangements.--The conservator or 
     receiver may contract with any governmental entity, including 
     the Farm Credit System Insurance Corporation, to make 
     personnel, services, and facilities of the entity available 
     to the conservator or receiver on such terms and compensation 
     arrangements as shall be mutually agreed, and each entity may 
     provide the same to the conservator or receiver.
       ``(3) Expenses.--A valid claim for expenses of the 
     conservatorship or receivership (including compensation under 
     paragraph (2)) and a valid claim with respect to a loan made 
     under subsection (f) shall--
       ``(A) be paid by the conservator or receiver from funds of 
     the Corporation before any other valid claim against the 
     Corporation; and
       ``(B) may be secured by a lien, on such property of the 
     Corporation as the conservator or receiver may determine, 
     that shall have priority over any other lien.
       ``(4) Liability.--If the conservator or receiver for the 
     Corporation is not a Federal entity, or an officer or 
     employee of the Federal Government, the conservator or 
     receiver shall not be personally liable for damages in tort 
     or otherwise for an act or omission performed pursuant to and 
     in the course of the conservatorship or receivership, unless 
     the act or omission constitutes gross negligence or any form 
     of intentional tortious conduct or criminal conduct.
       ``(5) Indemnification.--The Farm Credit Administration may 
     allow indemnification of the conservator or receiver from the 
     assets of the conservatorship or receivership on such terms 
     as the Farm Credit Administration considers appropriate.
       ``(d) Judicial Review of Appointment.--
       ``(1) In general.--Notwithstanding subsection (i)(1), not 
     later than 30 days after a conservator or receiver is 
     appointed under subsection (b), the Corporation may bring an 
     action in the United States District Court for the District 
     of Columbia for an order requiring the Farm Credit 
     Administration Board to remove the conservator or receiver. 
     The court shall, on the merits, dismiss the action or direct 
     the Farm Credit Administration Board to remove the 
     conservator or receiver.
       ``(2) Stay of other actions.--On the commencement of an 
     action under paragraph (1), any court having jurisdiction of 
     any other action or enforcement proceeding authorized under 
     this Act to which the Corporation is a party shall stay the 
     action or proceeding during the pendency of the action for 
     removal of the conservator or receiver.
       ``(e) General Powers of Conservator or Receiver.--The 
     conservator or receiver for the Corporation shall have such 
     powers to conduct the conservatorship or receivership as 
     shall be provided pursuant to regulations adopted by the Farm 
     Credit Administration Board. Such powers shall be comparable 
     to the powers available to a conservator or receiver 
     appointed pursuant to section 4.12(b).
       ``(f) Borrowings for Working Capital.--
       ``(1) In general.--If the conservator or receiver of the 
     Corporation determines that it is likely that there will be 
     insufficient funds to pay the ongoing administrative expenses 
     of the conservatorship or receivership or that there will be 
     insufficient liquidity to fund maturing obligations of the 
     conservatorship or receivership, the conservator or receiver 
     may borrow funds in such amounts, from such sources, and at 
     such rates of interest as the conservator or receiver 
     considers necessary or appropriate to meet the administrative 
     expenses or liquidity needs of the conservatorship or 
     receivership.
       ``(2) Working capital from farm credit banks.--A Farm 
     Credit bank may loan funds to the conservator or receiver for 
     a loan authorized under paragraph (1) or, in the event of 
     receivership, a Farm Credit bank may purchase assets of the 
     Corporation.
       ``(g) Agreements Against Interests of Conservator or 
     Receiver.--No agreement that tends to diminish or defeat the 
     right, title, or interest of the conservator or receiver for 
     the Corporation in any asset acquired by the conservator or 
     receiver as conservator or receiver for the Corporation shall 
     be valid against the conservator or receiver unless the 
     agreement--
       ``(1) is in writing;
       ``(2) is executed by the Corporation and any person 
     claiming an adverse interest under the agreement, including 
     the obligor, contemporaneously with the acquisition of the 
     asset by the Corporation;
       ``(3) is approved by the Board or an appropriate committee 
     of the Board, which approval shall be reflected in the 
     minutes of the Board or committee; and
       ``(4) has been, continuously, from the time of the 
     agreement's execution, an official record of the Corporation.
       ``(h) Report to the Congress.--On a determination by the 
     receiver for the Corporation that there are insufficient 
     assets of the receivership to pay all valid claims against 
     the receivership, the receiver shall submit to the Secretary 
     of the Treasury, the Committee on Agriculture of the House of 
     Representatives, and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report on the financial 
     condition of the receivership.
       ``(i) Termination of Authorities.--
       ``(1) Corporation.--The charter of the Corporation shall be 
     canceled, and the authority provided to the Corporation by 
     this title shall terminate, on such date as the Farm Credit 
     Administration Board determines is appropriate following the 
     placement of the Corporation in receivership, but not later 
     than the conclusion of the receivership and discharge of the 
     receiver.
       ``(2) Oversight.--The Office of Secondary Market Oversight 
     established under section 8.11 shall be abolished, and 
     section 8.11(a) and subtitle B shall have no force or effect, 
     on such date as the Farm Credit Administration Board 
     determines is appropriate following the placement of the 
     Corporation in receivership, but not later than the 
     conclusion of the receivership and discharge of the 
     receiver.''.

                      CHAPTER 2--REGULATORY RELIEF

     SEC. 681. COMPENSATION OF ASSOCIATION PERSONNEL.

       Section 1.5(13) of the Farm Credit Act of 1971 (12 U.S.C. 
     2013(13)) is amended by striking ``, and the appointment and 
     compensation of the chief executive officer thereof,''.

     SEC. 682. USE OF PRIVATE MORTGAGE INSURANCE.

       (a) In General.--Section 1.10(a)(1) of the Farm Credit Act 
     of 1971 (12 U.S.C. 2018(a)(1)) is amended by adding at the 
     end the following:
       ``(D) Private mortgage insurance.--A loan on which private 
     mortgage insurance is obtained may exceed 85 percent of the 
     appraised value of the real estate security to the extent 
     that the loan amount in excess of such 85 percent is covered 
     by the insurance.''.
       (b) Conforming Amendment.--Section 1.10(a)(1)(A) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended 
     by striking ``paragraphs (2) and (3)'' and inserting 
     ``subparagraphs (C) and (D)''.

     SEC. 683. REMOVAL OF CERTAIN BORROWER REPORTING REQUIREMENT.

       Section 1.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2018(a)) is amended by striking paragraph (5).

     SEC. 684. REFORM OF REGULATORY LIMITATIONS ON DIVIDEND, 
                   MEMBER BUSINESS, AND VOTING PRACTICES OF 
                   ELIGIBLE FARMER-OWNED COOPERATIVES.

       (a) In General.--Section 3.8(a) of the Farm Credit Act of 
     1971 (12 U.S.C. 2129(a)) is amended by adding at the end the 
     following: ``Any such association that has received a loan 
     from a bank for cooperatives shall, without regard to the 
     requirements of paragraphs (1) through (4), continue to be 
     eligible for so long as more than 50 percent (or such higher 
     percentage as is established by the bank board) of the voting 
     control of the association is held by farmers, producers or 
     harvesters of aquatic products, or eligible cooperative 
     associations.''.
       (b) Conforming Amendment.--Section 3.8(b)(1)(D) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2129(b)(1)(D)) is amended by 
     striking ``and (4) of subsection (a)'' and inserting ``and 
     (4), or under the last sentence, of subsection (a)''.

     SEC. 685. REMOVAL OF FEDERAL GOVERNMENT CERTIFICATION 
                   REQUIREMENT FOR CERTAIN PRIVATE SECTOR 
                   FINANCINGS.

       Section 3.8(b)(1)(A) of the Farm Credit Act of 1971 (12 
     U.S.C. 2129(b)(1)(A)) is amended--
       (1) by striking ``have been certified by the Administrator 
     of the Rural Electrification Administration to be eligible 
     for such'' and inserting ``are eligible under the Rural 
     Electrification Act of 1936 (7 U.S.C. 901 et seq.) for''; and
       (2) by striking ``loan guarantee, and'' and inserting 
     ``loan guarantee from the Administration or the Bank (or a 
     successor of the Administration or the Bank), and''.
     
[[Page S1231]]


     SEC. 686. BORROWER STOCK.

       Section 4.3A of the Farm Credit Act of 1971 (12 U.S.C. 
     2154a) is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Loans Designated for Sale or Sold Into the Secondary 
     Market.--
       ``(1) In general.--Subject to paragraph (2) and 
     notwithstanding any other provision of this section, the 
     bylaws adopted by a bank or association under subsection (b) 
     may provide--
       ``(A) in the case of a loan made on or after the date of 
     enactment of this paragraph that is designated, at the time 
     the loan is made, for sale into a secondary market, that no 
     voting stock or participation certificate purchase 
     requirement shall apply to the borrower for the loan; and
       ``(B) in the case of a loan made before the date of 
     enactment of this paragraph that is sold into a secondary 
     market, that all outstanding voting stock or participation 
     certificates held by the borrower with respect to the loan 
     shall, subject to subsection (d)(1), be retired.
       ``(2) Applicability.--Notwithstanding any other provision 
     of this section, in the case of a loan sold to a secondary 
     market under title VIII, paragraph (1) shall apply regardless 
     of whether the bank or association retains a subordinated 
     participation interest in a loan or pool of loans or 
     contributes to a cash reserve.
       ``(3) Exception.--
       ``(A) In general.--Subject to subparagraph (B) and 
     notwithstanding any other provision of this section, if a 
     loan designated for sale under paragraph (1)(A) is not sold 
     into a secondary market during the 180-day period that begins 
     on the date of the designation, the voting stock or 
     participation certificate purchase requirement that would 
     otherwise apply to the loan in the absence of a bylaw 
     provision described in paragraph (1)(A) shall be effective.
       ``(B) Retirement.--The bylaws adopted by a bank or 
     association under subsection (b) may provide that if a loan 
     described in subparagraph (A) is sold into a secondary market 
     after the end of the 180-day period described in the 
     subparagraph, all outstanding voting stock or participation 
     certificates held by the borrower with respect to the loan 
     shall, subject to subsection (d)(1), be retired.''.

     SEC. 687. DISCLOSURE RELATING TO ADJUSTABLE RATE LOANS.

       Section 4.13(a)(4) of the Farm Credit Act of 1971 (12 
     U.S.C. 2199(a)(4)) is amended by inserting before the 
     semicolon at the end the following: ``, and notice to the 
     borrower of a change in the interest rate applicable to the 
     loan of the borrower may be made within a reasonable time 
     after the effective date of an increase or decrease in the 
     interest rate''.

     SEC. 688. BORROWERS' RIGHTS.

       (a) Definition of Loan.--Section 4.14A(a)(5) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2202a(a)(5)) is amended--
       (1) by striking ``(5) Loan.--The'' and inserting the 
     following:
       ``(5) Loan.--
       ``(A) In general.--Subject to subparagraph (B), the''; and
       (2) by adding at the end the following:
       ``(B) Exclusion for loans designated for sale into 
     secondary market.--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `loan' does not include a loan made on or after the date 
     of enactment of this subparagraph that is designated, at the 
     time the loan is made, for sale into a secondary market.
       ``(ii) Unsold loans.--

       ``(I) In general.--Except as provided in subclause (II), if 
     a loan designated for sale under clause (i) is not sold into 
     a secondary market during the 180-day period that begins on 
     the date of the designation, the provisions of this section 
     and sections 4.14, 4.14B, 4.14C, 4.14D, and 4.36 that would 
     otherwise apply to the loan in the absence of the exclusion 
     described in clause (i) shall become effective with respect 
     to the loan.
       ``(II) Later sale.--If a loan described in subclause (I) is 
     sold into a secondary market after the end of the 180-day 
     period described in subclause (I), subclause (I) shall not 
     apply with respect to the loan beginning on the date of the 
     sale.''.

       (b) Borrowers' Rights for Pooled Loans.--The first sentence 
     of section 8.9(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-9(b)) is amended by inserting ``(as defined in section 
     4.14A(a)(5))'' after ``application for a loan''.

     SEC. 689. FORMATION OF ADMINISTRATIVE SERVICE ENTITIES.

       Part E of title IV of the Farm Credit Act of 1971 is 
     amended by inserting after section 4.28 (12 U.S.C. 2214) the 
     following:

     ``SEC. 4.28A. DEFINITION OF BANK.

       ``In this part, the term `bank' includes each association 
     operating under title II.''.

     SEC. 690. JOINT MANAGEMENT AGREEMENTS.

       The first sentence of section 5.17(a)(2)(A) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2252(a)(2)(A)) is amended by 
     striking ``or management agreements''.

     SEC. 691. DISSEMINATION OF QUARTERLY REPORTS.

       Section 5.17(a)(8) of the Farm Credit Act of 1971 (12 
     U.S.C. 2252(a)(8)) is amended by inserting after ``except 
     that'' the following: ``the requirements of the Farm Credit 
     Administration governing the dissemination to stockholders of 
     quarterly reports of System institutions may not be more 
     burdensome or costly than the requirements applicable to 
     national banks, and''.

     SEC. 692. REGULATORY REVIEW.

       (a) Findings.--Congress finds that--
       (1) the Farm Credit Administration, in the role of the 
     Administration as an arms-length safety and soundness 
     regulator, has made considerable progress in reducing the 
     regulatory burden on Farm Credit System institutions;
       (2) the efforts of the Farm Credit Administration described 
     in paragraph (1) have resulted in cost savings for Farm 
     Credit System institutions; and
       (3) the cost savings described in paragraph (2) ultimately 
     benefit the farmers, ranchers, agricultural cooperatives, and 
     rural residents of the United States.
       (b) Continuation of Regulatory Review.--The Farm Credit 
     Administration shall continue the comprehensive review of 
     regulations governing the Farm Credit System to identify and 
     eliminate, consistent with law, safety, and soundness, all 
     regulations that are unnecessary, unduly burdensome or 
     costly, or not based on law.

     SEC. 693. EXAMINATION OF FARM CREDIT SYSTEM INSTITUTIONS.

       The first sentence of section 5.19(a) of the Farm Credit 
     Act of 1971 (12 U.S.C. 2254(a)) is amended by striking ``each 
     year'' and inserting ``during each 18-month period''.

     SEC. 694. CONSERVATORSHIPS AND RECEIVERSHIPS.

       (a) Definitions.--Section 5.51 of the Farm Credit Act of 
     1971 (12 U.S.C. 2277a) is amended--
       (1) by striking paragraph (5); and
       (2) by redesignating paragraph (6) as paragraph (5).
       (b) General Corporate Powers.--Section 5.58 of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-7) is amended by striking 
     paragraph (9) and inserting the following:
       ``(9) Conservator or receiver.--The Corporation may act as 
     a conservator or receiver.''.

     SEC. 695. FARM CREDIT INSURANCE FUND OPERATIONS.

       (a) Adjustment of Premiums.--
       (1) In general.--Section 5.55(a) of the Farm Credit Act of 
     1971 (12 U.S.C. 2277a-4(a)) is amended--
       (A) in paragraph (1), by striking ``Until the aggregate of 
     amounts in the Farm Credit Insurance Fund exceeds the secure 
     base amount, the annual premium due from any insured System 
     bank for any calendar year'' and inserting the following: 
     ``If at the end of any calendar year the aggregate of amounts 
     in the Farm Credit Insurance Fund does not exceed the secure 
     base amount, subject to paragraph (2), the annual premium due 
     from any insured System bank for the calendar year'';
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following:
       ``(2) Reduced premiums.--The Corporation, in the sole 
     discretion of the Corporation, may reduce by a percentage 
     uniformly applied to all insured System banks the annual 
     premium due from each insured System bank during any calendar 
     year, as determined under paragraph (1).''.
       (2) Conforming amendments.--
       (A) Section 5.55(b) of the Farm Credit Act of 1971 (12 
     U.S.C. 2277a-4(b)) is amended--
       (i) by striking ``Insurance Fund'' each place it appears 
     and inserting ``Farm Credit Insurance Fund'';
       (ii) by striking ``for the following calendar year''; and
       (iii) by striking ``subsection (a)'' and inserting 
     ``subsection (a)(1)''.
       (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 
     U.S.C. 2277a-5(a)) is amended by striking ``section 
     5.55(a)(2)'' each place it appears in paragraphs (2) and (3) 
     and inserting ``section 5.55(a)(3)''.
       (C) Section 1.12(b) (12 U.S.C. 2020(b)) is amended--
       (i) in paragraph (1), by inserting ``(as defined in section 
     5.55(a)(3))'' after ``government-guaranteed loans''; and
       (ii) in paragraph (3), by inserting ``(as so defined)'' 
     after ``government-guaranteed loans'' each place such term 
     appears.
       (b) Allocation to Insured System Banks and Other System 
     Institutions of Excess Amounts in the Farm Credit Insurance 
     Fund.--Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 
     2277a-4) is amended by adding at the end the following:
       ``(e) Allocation to System Institutions of Excess 
     Reserves.--
       ``(1) Establishment of allocated insurance reserves 
     accounts.--There is hereby established in the Farm Credit 
     Insurance Fund an Allocated Insurance Reserves Account--
       ``(A) for each insured System bank; and
       ``(B) subject to paragraph (6)(C), for all holders, in the 
     aggregate, of Financial Assistance Corporation stock.
       ``(2) Treatment.--Amounts in any Allocated Insurance 
     Reserves Account shall be considered to be part of the Farm 
     Credit Insurance Fund.
       ``(3) Annual allocations.--If, at the end of any calendar 
     year, the aggregate of the amounts in the Farm Credit 
     Insurance Fund exceeds the average secure base amount for the 
     calendar year (as calculated on an average daily balance 
     basis), the Corporation shall allocate to the Allocated 
     Insurance Reserves Accounts the excess amount less the 

[[Page S1232]]
     amount that the Corporation, in its sole discretion, determines to be 
     the sum of the estimated operating expenses and estimated 
     insurance obligations of the Corporation for the immediately 
     succeeding calendar year.
       ``(4) Allocation formula.--From the total amount required 
     to be allocated at the end of a calendar year under paragraph 
     (3)--
       ``(A) 10 percent of the total amount shall be credited to 
     the Allocated Insurance Reserves Account established under 
     paragraph (1)(B), subject to paragraph (6)(C); and
       ``(B) there shall be credited to the Allocated Insurance 
     Reserves Account of each insured System bank an amount that 
     bears the same ratio to the total amount (less any amount 
     credited under subparagraph (A)) as the average principal 
     outstanding for the 3-year period ending on the end of the 
     calendar year on loans made by the bank that are in accrual 
     status bears to the average principal outstanding for the 3-
     year period ending on the end of the calendar year on loans 
     made by all insured System banks that are in accrual status 
     (excluding, in each case, the guaranteed portions of 
     government-guaranteed loans described in subsection 
     (a)(1)(C)).
       ``(5) Use of funds in allocated insurance reserves 
     accounts.--To the extent that the sum of the operating 
     expenses of the Corporation and the insurance obligations of 
     the Corporation for a calendar year exceeds the sum of 
     operating expenses and insurance obligations determined under 
     paragraph (3) for the calendar year, the Corporation shall 
     cover the expenses and obligations by--
       ``(A) reducing each Allocated Insurance Reserves Account by 
     the same proportion; and
       ``(B) expending the amounts obtained under subparagraph (A) 
     before expending other amounts in the Fund.
       ``(6) Other disposition of account funds.--
       ``(A) In general.--As soon as practicable during each 
     calendar year beginning more than 8 years after the date on 
     which the aggregate of the amounts in the Farm Credit 
     Insurance Fund exceeds the secure base amount, but not 
     earlier than January 1, 2005, the Corporation may--
       ``(i) subject to subparagraphs (D) and (F), pay to each 
     insured System bank, in a manner determined by the 
     Corporation, an amount equal to the lesser of--

       ``(I) 20 percent of the balance in the insured System 
     bank's Allocated Insurance Reserves Account as of the 
     preceding December 31; or
       ``(II) 20 percent of the balance in the bank's Allocated 
     Insurance Reserves Account on the date of the payment; and

       ``(ii) subject to subparagraphs (C), (E), and (F), pay to 
     each System bank and association holding Financial Assistance 
     Corporation stock a proportionate share, determined by 
     dividing the number of shares of Financial Assistance 
     Corporation stock held by the institution by the total number 
     of shares of Financial Assistance Corporation stock 
     outstanding, of the lesser of--

       ``(I) 20 percent of the balance in the Allocated Insurance 
     Reserves Account established under paragraph (1)(B) as of the 
     preceding December 31; or
       ``(II) 20 percent of the balance in the Allocated Insurance 
     Reserves Account established under paragraph (1)(B) on the 
     date of the payment.

       ``(B) Authority to eliminate or reduce payments.--The 
     Corporation may eliminate or reduce payments during a 
     calendar year under subparagraph (A) if the Corporation 
     determines, in its sole discretion, that the payments, or 
     other circumstances that might require use of the Farm Credit 
     Insurance Fund, could cause the amount in the Farm Credit 
     Insurance Fund during the calendar year to be less than the 
     secure base amount.
       ``(C) Reimbursement for financial assistance corporation 
     stock.--
       ``(i) Sufficient funding.--Notwithstanding paragraph 
     (4)(A), on provision by the Corporation for the accumulation 
     in the Account established under paragraph (1)(B) of funds in 
     an amount equal to $56,000,000 (in addition to the amounts 
     described in subparagraph (F)(ii)), the Corporation shall not 
     allocate any further funds to the Account except to replenish 
     the Account if funds are diminished below $56,000,000 by the 
     Corporation under paragraph (5).
       ``(ii) Wind down and termination.--

       ``(I) Final disbursements.--On disbursement of $53,000,000 
     (in addition to the amounts described in subparagraph 
     (F)(ii)) from the Allocated Insurance Reserves Account, the 
     Corporation shall disburse the remaining amounts in the 
     Account, as determined under subparagraph (A)(ii), without 
     regard to the percentage limitations in subclauses (I) and 
     (II) of subparagraph (A)(ii).
       ``(II) Termination of account.--On disbursement of 
     $56,000,000 (in addition to the amounts described in 
     subparagraph (F)(ii)) from the Allocated Insurance Reserves 
     Account, the Corporation shall close the Account established 
     under paragraph (1)(B) and transfer any remaining funds in 
     the Account to the remaining Allocated Insurance Reserves 
     Accounts in accordance with paragraph (4)(B) for the calendar 
     year in which the transfer occurs.

       ``(D) Distribution of payments received.--Not later than 60 
     days after receipt of a payment made under subparagraph 
     (A)(i), each insured System bank, in consultation with 
     affiliated associations of the insured System bank, and 
     taking into account the direct or indirect payment of 
     insurance premiums by the associations, shall develop and 
     implement an equitable plan to distribute payments received 
     under subparagraph (A)(i) among the bank and associations of 
     the bank.
       ``(E) Exception for previously reimbursed associations.--
     For purposes of subparagraph (A)(ii), in any Farm Credit 
     district in which the funding bank has reimbursed 1 or more 
     affiliated associations of the bank for the previously 
     unreimbursed portion of the Financial Assistance Corporation 
     stock held by the associations, the funding bank shall be 
     deemed to be the holder of the shares of Financial Assistance 
     Corporation stock for which the funding bank has provided the 
     reimbursement.
       ``(F) Initial payment.--Notwithstanding subparagraph (A), 
     the initial payment made to each payee under subparagraph (A) 
     shall be in such amount determined by the Corporation to be 
     equal to the sum of--
       ``(i) the total of the amounts that would have been paid if 
     payments under subparagraph (A) had been authorized to begin, 
     under the same terms and conditions, in the first calendar 
     year beginning more than 5 years after the date on which the 
     aggregate of the amounts in the Farm Credit Insurance Fund 
     exceeds the secure base amount, and to continue through the 2 
     immediately subsequent years;
       ``(ii) interest earned on any amounts that would have been 
     paid as described in clause (i) from the date on which the 
     payments would have been paid as described in clause (i); and
       ``(iii) the payment to be made in the initial year 
     described in subparagraph (A), based on the amount in each 
     Account after subtracting the amounts to be paid under 
     clauses (i) and (ii).''
       (c) Technical Amendments.--Section 5.55(d) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-4(d)) is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``subsections (a) and (c)'' and inserting 
     ``subsections (a), (c), and (e)''; and
       (B) by striking ``a Farm Credit Bank'' and inserting ``an 
     insured System bank''; and
       (2) in paragraphs (1), (2), and (3), by striking ``Farm 
     Credit Bank'' each place it appears and inserting ``insured 
     System bank''.

     SEC. 696. EXAMINATIONS BY THE FARM CREDIT SYSTEM INSURANCE 
                   CORPORATION.

       Section 5.59(b)(1)(A) of the Farm Credit Act of 1971 (12 
     U.S.C. 2277a-8(b)(1)(A)) is amended by adding at the end the 
     following: ``Notwithstanding any other provision of this Act, 
     on cancellation of the charter of a System institution, the 
     Corporation shall have authority to examine the system 
     institution in receivership. An examination shall be 
     performed at such intervals as the Corporation shall 
     determine.''.

     SEC. 697. POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM 
                   BANKS.

       (a) Least-Cost Resolution.--Section 5.61(a)(3) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (F); 
     and
       (2) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Least-cost resolution.--Assistance may not be 
     provided to an insured System bank under this subsection 
     unless the means of providing the assistance is the least 
     costly means of providing the assistance by the Farm Credit 
     Insurance Fund of all possible alternatives available to the 
     Corporation, including liquidation of the bank (including 
     paying the insured obligations issued on behalf of the bank). 
     Before making a least-cost determination under this 
     subparagraph, the Corporation shall accord such other insured 
     System banks as the Corporation determines to be appropriate 
     the opportunity to submit information relating to the 
     determination.
       ``(B) Determining least costly approach.--In determining 
     the least costly alternative under subparagraph (A), the 
     Corporation shall--
       ``(i) evaluate alternatives on a present-value basis, using 
     a reasonable discount rate;
       ``(ii) document the evaluation and the assumptions on which 
     the evaluation is based; and
       ``(iii) retain the documentation for not less than 5 years.
       ``(C) Time of determination.--
       ``(i) General rule.--For purposes of this subsection, the 
     determination of the costs of providing any assistance under 
     any provision of this section with respect to any insured 
     System bank shall be made as of the date on which the 
     Corporation makes the determination to provide the assistance 
     to the institution under this section.
       ``(ii) Rule for liquidations.--For purposes of this 
     subsection, the determination of the costs of liquidation of 
     any insured System bank shall be made as of the earliest of--

       ``(I) the date on which a conservator is appointed for the 
     insured System bank;
       ``(II) the date on which a receiver is appointed for the 
     insured System bank; or
       ``(III) the date on which the Corporation makes any 
     determination to provide any assistance under this section 
     with respect to the insured System bank.

       ``(D) Rule for stand-alone assistance.--Before providing 
     any assistance under paragraph (1), the Corporation shall 
     evaluate the adequacy of managerial resources of the insured 
     System bank. The continued service of any director or senior 
     ranking officer who serves in a policymaking role for the 
     assisted insured System bank, as determined by the 
     Corporation, shall be subject to approval by the Corporation 
     as a condition of assistance.
       ``(E) Discretionary determinations.--Any determination that 
     the Corporation makes 

[[Page S1233]]
     under this paragraph shall be in the sole discretion of the 
     Corporation.''.
       (b) Conforming Amendments.--Section 5.61(a) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2277a-10(a)) is amended--
       (1) in paragraph (1) by striking ``In general.--'' and 
     inserting ``Stand-alone assistance.--''; and
       (2) in paragraph (2)--
       (A) by striking ``Enumerated powers.--'' and inserting 
     ``Facilitation of mergers or consolidation.--''; and
       (B) in subparagraph (A) by striking ``Facilitation of 
     mergers or consolidation.--'' and inserting ``In general.--
     ''.

     SEC. 698. OVERSIGHT AND REGULATORY ACTIONS BY THE FARM CREDIT 
                   SYSTEM INSURANCE CORPORATION.

       The Farm Credit Act of 1971 is amended by inserting after 
     section 5.61 (12 U.S.C. 2279a-10) the following:

     ``SEC. 5.61A. OVERSIGHT ACTIONS BY THE CORPORATION.

       ``(a) Definitions.--In this section, the term `institution' 
     means--
       ``(1) an insured System bank; and
       ``(2) a production credit association or other association 
     making loans under section 7.6 with a direct loan payable to 
     the funding bank of the association that comprises 20 percent 
     or more of the funding bank's total loan volume net of 
     nonaccrual loans.
       ``(b) Consultation Regarding Participation of 
     Undercapitalized Banks in Issuance of Insured Obligations.--
     The Farm Credit Administration shall consult with the 
     Corporation prior to approving an insured obligation that is 
     to be issued by or on behalf of, or participated in by, any 
     insured System bank that fails to meet the minimum level for 
     any capital requirement established by the Farm Credit 
     Administration for the bank.
       ``(c) Consultation Regarding Applications for Mergers and 
     Restructurings.--
       ``(1) Corporation to receive copy of transaction 
     applications.--On receiving an application for a merger or 
     restructuring of an institution, the Farm Credit 
     Administration shall forward a copy of the application to the 
     Corporation.
       ``(2) Consultation required.--If the proposed merger or 
     restructuring involves an institution that fails to meet the 
     minimum level for any capital requirement established by the 
     Farm Credit Administration applicable to the institution, the 
     Farm Credit Administration shall allow 30 days within which 
     the Corporation may submit the views and recommendations of 
     the Corporation, including any conditions for approval. In 
     determining whether to approve or disapprove any proposed 
     merger or restructuring, the Farm Credit Administration shall 
     give due consideration to the views and recommendations of 
     the Corporation.

     ``SEC. 5.61B. AUTHORITY TO REGULATE GOLDEN PARACHUTE AND 
                   INDEMNIFICATION PAYMENTS.

       ``(a) Definitions.--In this section:
       ``(1) Golden parachute payment.--The term `golden parachute 
     payment'--
       ``(A) means a payment (or any agreement to make a payment) 
     in the nature of compensation for the benefit of any 
     institution-related party under an obligation of any Farm 
     Credit System institution that--
       ``(i) is contingent on the termination of the party's 
     relationship with the institution; and
       ``(ii) is received on or after the date on which--

       ``(I) the institution is insolvent;
       ``(II) a conservator or receiver is appointed for the 
     institution;
       ``(III) the institution has been assigned by the Farm 
     Credit Administration a composite CAMEL rating of 4 or 5 
     under the Farm Credit Administration Rating System, or an 
     equivalent rating; or
       ``(IV) the Corporation otherwise determines that the 
     institution is in a troubled condition (as defined in 
     regulations issued by the Corporation); and

       ``(B) includes a payment that would be a golden parachute 
     payment but for the fact that the payment was made before the 
     date referred to in subparagraph (A)(ii) if the payment was 
     made in contemplation of the occurrence of an event described 
     in any subclause of subparagraph (A); but
       ``(C) does not include--
       ``(i) a payment made under a retirement plan that is 
     qualified (or is intended to be qualified) under section 401 
     of the Internal Revenue Code of 1986 or other 
     nondiscriminatory benefit plan;
       ``(ii) a payment made under a bona fide supplemental 
     executive retirement plan, deferred compensation plan, or 
     other arrangement that the Corporation determines, by 
     regulation or order, to be permissible; or
       ``(iii) a payment made by reason of the death or disability 
     of an institution-related party.
       ``(2) Indemnification payment.--The term `indemnification 
     payment' means a payment (or any agreement to make a payment) 
     by any Farm Credit System institution for the benefit of any 
     person who is or was an institution-related party, to pay or 
     reimburse the person for any liability or legal expense with 
     regard to any administrative proceeding or civil action 
     instituted by the Farm Credit Administration that results in 
     a final order under which the person--
       ``(A) is assessed a civil money penalty; or
       ``(B) is removed or prohibited from participating in the 
     conduct of the affairs of the institution.
       ``(3) Institution-related party.--The term `institution-
     related party' means--
       ``(A) a director, officer, employee, or agent for a Farm 
     Credit System institution or any conservator or receiver of 
     such an institution;
       ``(B) a stockholder (other than another Farm Credit System 
     institution), consultant, joint venture partner, or any other 
     person determined by the Farm Credit Administration to be a 
     participant in the conduct of the affairs of a Farm Credit 
     System institution; and
       ``(C) an independent contractor (including any attorney, 
     appraiser, or accountant) that knowingly or recklessly 
     participates in any violation of any law or regulation, any 
     breach of fiduciary duty, or any unsafe or unsound practice 
     that caused or is likely to cause more than a minimal 
     financial loss to, or a significant adverse effect on, the 
     Farm Credit System institution.
       ``(4) Liability or legal expense.--The term `liability or 
     legal expense' means--
       ``(A) a legal or other professional expense incurred in 
     connection with any claim, proceeding, or action;
       ``(B) the amount of, and any cost incurred in connection 
     with, any settlement of any claim, proceeding, or action; and
       ``(C) the amount of, and any cost incurred in connection 
     with, any judgment or penalty imposed with respect to any 
     claim, proceeding, or action.
       ``(5) Payment.--The term `payment' means--
       ``(A) a direct or indirect transfer of any funds or any 
     asset; and
       ``(B) any segregation of any funds or assets for the 
     purpose of making, or under an agreement to make, any payment 
     after the date on which the funds or assets are segregated, 
     without regard to whether the obligation to make the payment 
     is contingent on--
       ``(i) the determination, after that date, of the liability 
     for the payment of the amount; or
       ``(ii) the liquidation, after that date, of the amount of 
     the payment.
       ``(b) Prohibition.--The Corporation may prohibit or limit, 
     by regulation or order, any golden parachute payment or 
     indemnification payment by a Farm Credit System institution 
     (including any conservator or receiver of the Federal 
     Agricultural Mortgage Corporation) in troubled condition (as 
     defined in regulations issued by the Corporation).
       ``(c) Factors To Be Taken into Account.--The Corporation 
     shall prescribe, by regulation, the factors to be considered 
     by the Corporation in taking any action under subsection (b). 
     The factors may include--
       ``(1) whether there is a reasonable basis to believe that 
     an institution-related party has committed any fraudulent act 
     or omission, breach of trust or fiduciary duty, or insider 
     abuse with regard to the Farm Credit System institution 
     involved that has had a material effect on the financial 
     condition of the institution;
       ``(2) whether there is a reasonable basis to believe that 
     the institution-related party is substantially responsible 
     for the insolvency of the Farm Credit System institution, the 
     appointment of a conservator or receiver for the institution, 
     or the institution's troubled condition (as defined in 
     regulations prescribed by the Corporation);
       ``(3) whether there is a reasonable basis to believe that 
     the institution-related party has materially violated any 
     applicable law or regulation that has had a material effect 
     on the financial condition of the institution;
       ``(4) whether there is a reasonable basis to believe that 
     the institution-related party has violated or conspired to 
     violate--
       ``(A) section 215, 657, 1006, 1014, or 1344 of title 18, 
     United States Code; or
       ``(B) section 1341 or 1343 of title 18, United States Code, 
     affecting a Farm Credit System institution;
       ``(5) whether the institution-related party was in a 
     position of managerial or fiduciary responsibility; and
       ``(6) the length of time that the party was related to the 
     Farm Credit System institution and the degree to which--
       ``(A) the payment reasonably reflects compensation earned 
     over the period of employment; and
       ``(B) the compensation represents a reasonable payment for 
     services rendered.
       ``(d) Certain Payments Prohibited.--No Farm Credit System 
     institution may prepay the salary or any liability or legal 
     expense of any institution-related party if the payment is 
     made--
       ``(1) in contemplation of the insolvency of the institution 
     or after the commission of an act of insolvency; and
       ``(2) with a view to, or with the result of--
       ``(A) preventing the proper application of the assets of 
     the institution to creditors; or
       ``(B) preferring 1 creditor over another creditor.
       ``(e) Rule of Construction.--Nothing in this section--
       ``(1) prohibits any Farm Credit System institution from 
     purchasing any commercial insurance policy or fidelity bond, 
     so long as the insurance policy or bond does not cover any 
     legal or liability expense of an institution described in 
     subsection (a)(2); or
       ``(2) limits the powers, functions, or responsibilities of 
     the Farm Credit Administration.''.

     SEC. 699. FARM CREDIT SYSTEM INSURANCE CORPORATION BOARD OF 
                   DIRECTORS.

       (a) In General.--Section 5.53 of the Farm Credit Act of 
     1971 (12 U.S.C. 2277a-2) is amended to read as follows:
     
[[Page S1234]]


     ``SEC. 5.53. BOARD OF DIRECTORS.

       ``(a) Establishment.--The Corporation shall be managed by a 
     Board of Directors that shall consist of the members of the 
     Farm Credit Administration Board.
       ``(b) Chairman.--The Board of Directors shall be chaired by 
     any Board member other than the Chairman of the Farm Credit 
     Administration Board.''.
       (b) Conforming Amendments.--
       (1) Section 5314 of title 5, United States Code, is amended 
     by striking ``Chairperson, Board of Directors of the Farm 
     Credit System Insurance Corporation.''.
       (2) Section 5315 of title 5, United States Code, is amended 
     by striking ``Members, Board of Directors of the Farm Credit 
     System Insurance Corporation.''.

     SEC. 699A. LIABILITY FOR MAKING CRIMINAL REFERRALS.

       (a) In General.--Any institution of the Farm Credit System, 
     or any director, officer, employee, or agent of a Farm Credit 
     System institution, that discloses to a Government authority 
     information proffered in good faith that may be relevant to a 
     possible violation of any law or regulation shall not be 
     liable to any person under any law of the United States or 
     any State--
       (1) for the disclosure; or
       (2) for any failure to notify the person involved in the 
     possible violation.
       (b) No Prohibition on Disclosure.--Any institution of the 
     Farm Credit System, or any director, officer, employee, or 
     agent of a Farm Credit System institution, may disclose 
     information to a Government authority that may be relevant to 
     a possible violation of any law or regulation.
                      TITLE VII--RURAL DEVELOPMENT
  Subtitle A--Amendments to the Food, Agriculture, Conservation, and 
                           Trade Act of 1990

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

       (a) In General.--Section 2310(c)(1) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2007(c)(1)) is amended by striking ``1996'' and inserting 
     ``2002''.
       (b) Authorization of Appropriations.--The first sentence of 
     section 2313(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2007c) is amended by striking 
     ``$10,000,000'' and all that follows through ``1996'' and 
     inserting ``$4,700,000 for each of fiscal years 1996 through 
     2002''.

     SEC. 702. WATER AND WASTE FACILITY FINANCING.

       Section 2322 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 1926-1) is repealed.

     SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

       Section 2324 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is 
     repealed.

     SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       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.) is amended to read as follows:

``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

     ``SEC. 2331. PURPOSE.

       ``The purpose of the financing programs established under 
     this chapter is to encourage and improve telemedicine 
     services and distance learning services in rural areas 
     through the use of telecommunications, computer networks, and 
     related advanced technologies by students, teachers, medical 
     professionals, and rural residents.

     ``SEC. 2332. DEFINITIONS.

       ``In this chapter:
       ``(1) Construct.--The term `construct' means to construct, 
     acquire, install, improve, or extend a facility or system.
       ``(2) Cost of money loan.--The term `cost of money loan' 
     means a loan made under this chapter bearing interest at a 
     rate equal to the then current cost to the Federal Government 
     of loans of similar maturity.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.

     ``SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       ``(a) Services to Rural Areas.--The Secretary is authorized 
     to provide financial assistance for the purpose of financing 
     the construction of facilities and systems to provide 
     telemedicine services and distance learning services to 
     persons and entities in rural areas.
       ``(b) Financial Assistance.--
       ``(1) In general.--Financial assistance shall consist of 
     grants or cost of money loans, or both.
       ``(2) Form.--The Secretary shall determine the portion of 
     the financial assistance provided to a recipient that 
     consists of grants and that consists of cost of money loans 
     so as to result in the maximum feasible repayment to the 
     Federal Government of the financial assistance, based on the 
     ability to repay of the recipient and full utilization of 
     funds made available to carry out this chapter.
       ``(c) Recipients.--
       ``(1) In general.--The Secretary may provide financial 
     assistance under this chapter to--
       ``(A) entities using telemedicine services or distance 
     learning services, or both; and
       ``(B) entities providing or proposing to provide 
     telemedicine service or distance learning service, or both, 
     to other persons at rates reflecting the benefit of the 
     financial assistance.
       ``(2) Electric or telecommunications borrowers.--
       ``(A) Loans to borrowers.--Subject to subparagraph (B), the 
     Secretary may provide a cost of money loan under this chapter 
     to a borrower of an electric or telecommunications loan under 
     the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.). 
     A borrower receiving a cost of money loan under this 
     paragraph shall--
       ``(i) make the funds provided available to entities that 
     qualify under paragraph (1) for projects satisfying the 
     requirements of this chapter;
       ``(ii) use the funds provided to acquire, install, improve, 
     or extend a system for the purposes of this chapter; or
       ``(iii) use the funds provided to install, improve, or 
     extend a facility for the purposes of this chapter.
       ``(B) Limitations.--A borrower of an electric or 
     telecommunications loan under the Rural Electrification Act 
     of 1936 shall--
       ``(i) make a system or facility funded under subparagraph 
     (A) available to entities that qualify under paragraph (1); 
     and
       ``(ii) neither retain from the proceeds of a loan provided 
     under subparagraph (A), nor assess a qualifying entity under 
     paragraph (1), any amount except as may be required to pay 
     the actual costs incurred in administering the loan funds or 
     making the system or facility available.
       ``(3) Assistance to provide or improve services.--Financial 
     assistance may be provided under this chapter for a facility 
     regardless of the location of the facility if the Secretary 
     determines that the assistance is necessary to provide or 
     improve telemedicine services or distance learning services 
     in a rural area.
       ``(d) Priority.--The Secretary shall establish procedures 
     to prioritize financial assistance provided under this 
     chapter considering--
       ``(1) the need for the assistance in the affected rural 
     area;
       ``(2) the financial need of the applicant;
       ``(3) the population sparsity of the affected rural area;
       ``(4) the local involvement in the project serving the 
     affected rural area;
       ``(5) geographic diversity among the recipients of 
     financial assistance;
       ``(6) the utilization of the telecommunications facilities 
     of the existing telecommunications provider;
       ``(7) the portion of total project financing provided by 
     the applicant from the funds of the applicant;
       ``(8) the portion of project financing provided by the 
     applicant with funds obtained from non-Federal sources;
       ``(9) the joint utilization of facilities financed by other 
     financial assistance;
       ``(10) the coordination of the proposed project with 
     regional projects or networks;
       ``(11) service to the widest practical number of persons 
     within the general geographic area covered by the financial 
     assistance;
       ``(12) conformity with the State strategic plan as prepared 
     under section 381D of the Consolidated Farm and Rural 
     Development Act; and
       ``(13) other factors determined appropriate by the 
     Secretary.
       ``(e) Maximum Amount of Assistance to Individual 
     Recipients.--The Secretary may establish the maximum amount 
     of financial assistance to be made available to an individual 
     recipient for each fiscal year under this chapter by 
     publishing notice in the Federal Register. The notice shall 
     be published not more than 45 days after funds are made 
     available to carry out this chapter during a fiscal year.
       ``(f) Use of Funds.--Financial assistance provided under 
     this chapter shall be used for--
       ``(1) the development and acquisition of instructional 
     programming;
       ``(2) the development and acquisition, through lease or 
     purchase, of computer hardware and software, audio and visual 
     equipment, computer network components, telecommunications 
     terminal equipment, telecommunications transmission 
     facilities, data terminal equipment, or interactive video 
     equipment, and other facilities that would further 
     telemedicine services or distance learning services, or both;
       ``(3) providing technical assistance and instruction for 
     the development or use of the programming, equipment, or 
     facilities referred to in paragraphs (1) and (2); or
       ``(4) other uses that are consistent with this chapter, as 
     determined by the Secretary.
       ``(g) Salaries and Expenses.--Notwithstanding subsection 
     (f), financial assistance provided under this chapter shall 
     not be used for paying salaries of employees or 
     administrative expenses.
       ``(h) Expediting Coordinated Telephone Loans.--
       ``(1) In general.--The Secretary may establish and carry 
     out procedures to ensure that expedited consideration and 
     determination is given to applications for loans and advances 
     of funds submitted by local exchange carriers under this 
     chapter and the Rural Electrification Act of 1936 (7 U.S.C. 
     901 et seq.) to enable the exchange carriers to provide 
     advanced telecommunications services in rural areas in 
     conjunction with any other projects carried out under this 
     chapter.
       ``(2) Deadline imposed on secretary.--Not later than 45 
     days after the receipt of a completed application for an 
     expedited telephone loan under paragraph (1), the Secretary 
     shall respond to the application. The Secretary 

[[Page S1235]]
     shall notify the applicant in writing of the decision of the Secretary 
     regarding each expedited loan application.
       ``(i) Notification of Local Exchange Carrier.--
       ``(1) Applicants.--Each applicant for a grant for a 
     telemedicine or distance learning project established under 
     this chapter shall notify the appropriate local telephone 
     exchange carrier regarding the application filed with the 
     Secretary for the grant.
       ``(2) Secretary.--The Secretary shall--
       ``(A) publish notice of applications received for grants 
     under this chapter for telemedicine or distance learning 
     projects; and
       ``(B) make the applications available for inspection.

     ``SEC. 2334. ADMINISTRATION.

       ``(a) Nonduplication.--The Secretary shall ensure that 
     facilities constructed using financial assistance provided 
     under this chapter do not duplicate adequate established 
     telemedicine services or distance learning services.
       ``(b) Loan Maturity.--The maturities of cost of money loans 
     shall be determined by the Secretary, based on the useful 
     life of the facility being financed, except that the loan 
     shall not be for a period of more than 10 years.
       ``(c) Loan Security and Feasibility.--The Secretary shall 
     make a cost of money loan only after determining that the 
     security for the loan is reasonably adequate and that the 
     loan will be repaid within the period of the loan.
       ``(d) Encouraging Consortia.--The Secretary shall encourage 
     the development of consortia to provide telemedicine services 
     or distance learning services, or both, through 
     telecommunications in rural areas served by a 
     telecommunications provider.
       ``(e) Cooperation With Other Agencies.--The Secretary shall 
     cooperate, to the extent practicable, with other Federal and 
     State agencies with similar grant or loan programs to pool 
     resources for funding meritorious proposals in rural areas.
       ``(f) Informational Efforts.--The Secretary shall establish 
     and implement procedures to carry out informational efforts 
     to advise potential end users located in rural areas of each 
     State about the program authorized by this chapter.

     ``SEC. 2335. REGULATIONS.

       ``Not later than 180 days after the effective date of the 
     Agricultural Reform and Improvement Act of 1996, the 
     Secretary shall issue regulations to carry out this chapter.

     ``SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     chapter $100,000,000 for each of fiscal years 1996 through 
     2002.''.

     SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR 
                   RURAL TECHNOLOGY GRANTS.

       Section 2347 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 104 Stat. 4034) is 
     amended--
       (1) by striking ``(a) In General.--''; and
       (2) by striking subsection (b).

     SEC. 706. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

       Section 2382 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is 
     repealed.

     SEC. 707. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

       Section 2385 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 
     note) is repealed.

     SEC. 708. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

       Section 2391 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is 
     repealed.

     SEC. 709. CENSUS OF AGRICULTURE.

       Section 2392 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 104 Stat. 4057) is 
     repealed.

   CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

     SEC. 721. DEFINITIONS.

       Section 1657(c) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5901(c)) is amended--
       (1) by striking paragraphs (3) and (4);
       (2) by redesignating paragraph (5) as paragraph (3);
       (3) by redesignating paragraphs (6) through (12) as 
     paragraphs (7) through (13), respectively; and
       (4) by inserting after paragraph (3) (as redesignated by 
     paragraph (2)) the following:
       ``(4) Corporate board.--The term `Corporate Board' means 
     the Board of Directors of the Corporation described in 
     section 1659.
       ``(5) Corporation.--The term `Corporation' means the 
     Alternative Agricultural Research and Commercialization 
     Corporation established under section 1658.
       ``(6) Executive director.--The term `Executive Director' 
     means the Executive Director of the Corporation appointed 
     under section 1659(d)(2).''.

     SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION CORPORATION.

       (a) In General.--Section 1658 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is 
     amended to read as follows:

     ``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION CORPORATION.

       ``(a) Establishment.--To carry out this subtitle, there is 
     created a body corporate to be known as the Alternative 
     Agricultural Research and Commercialization Corporation, 
     which shall be an agency of the United States, within the 
     Department of Agriculture, subject to the general supervision 
     and direction of the Secretary, except as specifically 
     provided for in this subtitle.
       ``(b) Purpose.--The purpose of the Corporation is to--
       ``(1) expedite the development and market penetration of 
     industrial, nonfood, nonfeed products from agricultural and 
     forestry materials; and
       ``(2) assist the private sector in bridging the gap between 
     research results and the commercialization of the research.
       ``(c) Place of Incorporation.--The Corporation shall be 
     located in the District of Columbia.
       ``(d) Central Office.--The Secretary shall provide 
     facilities for the principal office of the Corporation within 
     the Washington, D.C. metropolitan area.
       ``(e) Wholly-Owned Government Corporation.--The Corporation 
     shall be considered a wholly-owned government corporation for 
     purposes of chapter 91 of title 31, United States Code.
       ``(f) General Powers.--In addition to any other powers 
     granted to the Corporation under this subtitle, the 
     Corporation--
       ``(1) shall have succession in its corporate name;
       ``(2) may adopt, alter, and rescind any bylaw and adopt and 
     alter a corporate seal, which shall be judicially noticed;
       ``(3) may enter into any agreement or contract with a 
     person or private or governmental agency, except that the 
     Corporation shall not provide any financial assistance unless 
     specifically authorized under this subtitle;
       ``(4) may lease, purchase, accept a gift or donation of, or 
     otherwise acquire, use, own, hold, improve, or otherwise deal 
     in or with, and sell, convey, mortgage, pledge, lease, 
     exchange, or otherwise dispose of, any property, real, 
     personal, or mixed, or any interest in property, as the 
     Corporation considers necessary in the transaction of the 
     business of the Corporation, except that this paragraph shall 
     not provide authority for carrying out a program of real 
     estate investment;
       ``(5) may sue and be sued in the corporate name of the 
     Corporation, except that--
       ``(A) no attachment, injunction, garnishment, or similar 
     process shall be issued against the Corporation or property 
     of the Corporation; and
       ``(B) exclusive original jurisdiction shall reside in the 
     district courts of the United States, but the Corporation may 
     intervene in any court in any suit, action, or proceeding in 
     which the Corporation has an interest;
       ``(6) may independently retain legal representation;
       ``(7) may provide for and designate such committees, and 
     the functions of the committees, as the Corporate Board 
     considers necessary or desirable,
       ``(8) may indemnify the Executive Director and other 
     officers of the Corporation, as the Corporate Board considers 
     necessary and desirable, except that the Executive Director 
     and officers shall not be indemnified for an act outside the 
     scope of employment;
       ``(9) may, with the consent of any board, commission, 
     independent establishment, or executive department of the 
     Federal Government, including any field service, use 
     information, services, facilities, officials, and employees 
     in carrying out this subtitle, and pay for the use, which 
     payments shall be credited to the applicable appropriation 
     that incurred the expense;
       ``(10) may obtain the services and fix the compensation of 
     any consultant and otherwise procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code;
       ``(11) may use the United States mails on the same terms 
     and conditions as the Executive agencies of the Federal 
     Government;
       ``(12) shall have the rights, privileges, and immunities of 
     the United States with respect to the right to priority of 
     payment with respect to debts due from bankrupt, insolvent, 
     or deceased creditors;
       ``(13) may collect or compromise any obligations assigned 
     to or held by the Corporation, including any legal or 
     equitable rights accruing to the Corporation;
       ``(14) shall determine the character of, and necessity for, 
     obligations and expenditures of the Corporation and the 
     manner in which the obligations and expenditures shall be 
     incurred, allowed, and paid, subject to provisions of law 
     specifically applicable to Government corporations;
       ``(15) may make final and conclusive settlement and 
     adjustment of any claim by or against the Corporation or a 
     fiscal officer of the Corporation;
       ``(16) may sell assets, loans, and equity interests 
     acquired in connection with the financing of projects funded 
     by the Corporation; and
       ``(17) may exercise all other lawful powers necessarily or 
     reasonably related to the establishment of the Corporation to 
     carry out this subtitle and the powers, purposes, functions, 
     duties, and authorized activities of the Corporation.
       ``(g) Specific Powers.--To carry out this subtitle, the 
     Corporation shall have the authority to--
       ``(1) make grants to, and enter into cooperative agreements 
     and contracts with, eligible applicants for research, 
     development, and demonstration projects in accordance with 
     section 1660;
     
[[Page S1236]]

       ``(2) make loans and interest subsidy payments and invest 
     venture capital in accordance with section 1661;
       ``(3) collect and disseminate information concerning State, 
     regional, and local commercialization projects;
       ``(4) search for new nonfood, nonfeed products that may be 
     produced from agricultural commodities and for processes to 
     produce the products;
       ``(5) administer, maintain, and dispense funds from the 
     Alternative Agricultural Research and Commercialization 
     Revolving Fund to facilitate the conduct of activities under 
     this subtitle; and
       ``(6) engage in other activities incident to carrying out 
     the functions of the Corporation.''.
       (b) Wholly Owned Government Corporation.--Section 9101(3) 
     of title 31, United States Code, is amended--
       (1) by redesignating subparagraph (N) (relating to the 
     Uranium Enrichment Corporation) as subparagraph (O); and
       (2) by adding at the end the following:
       ``(P) the Alternative Agricultural Research and 
     Commercialization Corporation.''.
       (c) Conforming Amendment.--Section 211(b)(5) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6911(b)(5)) is amended by striking ``Alternative 
     Agricultural Research and Commercialization Board'' and 
     inserting ``Corporate Board of the Alternative Agricultural 
     Research and Commercialization Corporation''.

     SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

       (a) In General.--Section 1659 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is 
     amended to read as follows:

     ``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

       ``(a) In General.--The powers of the Corporation shall be 
     vested in a Corporate Board.
       ``(b) Members of the Corporate Board.--The Corporate Board 
     shall consist of 10 members as follows:
       ``(1) The Under Secretary of Agriculture for Rural Economic 
     and Community Development.
       ``(2) The Under Secretary of Agriculture for Research, 
     Education, and Economics.
       ``(3) 4 members appointed by the Secretary, of whom--
       ``(A) at least 1 member shall be a representative of the 
     leading scientific disciplines relevant to the activities of 
     the Corporation;
       ``(B) at least 1 member shall be a producer or processor of 
     agricultural commodities; and
       ``(C) at least 1 member shall be a person who is privately 
     engaged in the commercialization of new nonfood, nonfeed 
     products from agricultural commodities.
       ``(4) 2 members appointed by the Secretary who--
       ``(A) have expertise in areas of applied research relating 
     to the development or commercialization of new nonfood, 
     nonfeed products; and
       ``(B) shall be appointed from a group of at least 4 
     individuals nominated by the Director of the National Science 
     Foundation if the nominations are made within 60 days after 
     the date a vacancy occurs.
       ``(5) 2 members appointed by the Secretary who--
       ``(A) have expertise in financial and managerial matters; 
     and
       ``(B) shall be appointed from a group of at least 4 
     individuals nominated by the Secretary of Commerce if the 
     nominations are made within 60 days after the date a vacancy 
     occurs.
       ``(c) Responsibilities of the Corporate Board.--
       ``(1) In general.--The Corporate Board shall--
       ``(A) be responsible for the general supervision of the 
     Corporation and Regional Centers established under section 
     1663;
       ``(B) determine (in consultation with Regional Centers) 
     high priority commercialization areas to receive assistance 
     under section 1663;
       ``(C) review any grant, contract, or cooperative agreement 
     to be made or entered into by the Corporation under section 
     1660 and any financial assistance to be provided under 
     section 1661;
       ``(D) make the final decision, by majority vote, on whether 
     and how to provide assistance to an applicant; and
       ``(E) using the results of the hearings and other 
     information and data collected under paragraph (2), develop 
     and establish a budget plan and a long-term operating plan to 
     carry out this subtitle.
       ``(2) Authority of the secretary.--
       ``(A) In general.--The Secretary shall vacate and remand to 
     the Board for reconsideration any decision made pursuant to 
     paragraph (1)(D) if the Secretary determines that there has 
     been a violation of subsection (j), or any conflict of 
     interest provisions of the bylaws of the Board, with respect 
     to the decision.
       ``(B) Reasons.--In the case of any violation and referral 
     of a funding decision to the Board, the Secretary shall 
     inform the Board of the reasons for any remand pursuant to 
     subparagraph (A).
       ``(d) Chairperson.--The members of the Corporate Board 
     shall select a Chairperson from among the members of the 
     Corporate Board. The term of office of the Chairperson shall 
     be 2 years. The members referred to in paragraphs (1) and (2) 
     of subsection (b) may not serve as Chairperson.
       ``(e) Executive Director.--
       ``(1) In general.--The Executive Director of the 
     Corporation shall be the chief executive officer of the 
     Corporation, with such power and authority as may be 
     conferred by the Corporate Board. The Executive Director 
     shall be appointed by the Corporate Board. The appointment 
     shall be subject to the approval of the Secretary.
       ``(2) Compensation.--The Executive Director shall receive 
     basic pay at the rate provided for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       ``(f) Officers.--The Corporate Board shall establish the 
     offices and appoint the officers of the Corporation, 
     including a Secretary, and define the duties of the officers 
     in a manner consistent with this subtitle.
       ``(g) Meetings.--The Corporate Board shall meet at least 3 
     times each fiscal year at the call of the Chairperson or at 
     the request of the Executive Director. The location of the 
     meetings shall be subject to approval of the Executive 
     Director. A quorum of the Corporate Board shall consist of a 
     majority of the members. The decisions of the Corporate Board 
     shall be made by majority vote.
       ``(h) Term; Vacancies.--
       ``(1) In general.--The term of office of a member of the 
     Corporate Board shall be 4 years, except that the members 
     initially appointed shall be appointed to serve staggered 
     terms. A member appointed to fill a vacancy for an unexpired 
     term may be appointed only for the remainder of the term. A 
     vacancy on the Corporate Board shall be filled in the same 
     manner as the original appointment. The Secretary shall not 
     remove a member of the Corporate Board except for cause.
       ``(2) Transition measure.--An individual who is serving on 
     the Alternative Agricultural Research and Commercialization 
     Board on the day before the effective date of the 
     Agricultural Reform and Improvement Act of 1996 may be 
     appointed to the Corporate Board by the Secretary for a term 
     that does not exceed the term of the individual on the 
     Alternative Agricultural Research and Commercialization Board 
     if the Act had not been enacted.
       ``(i) Compensation.--A member of the Corporate Board who is 
     an officer or employee of the United States shall not receive 
     any additional compensation by reason of service on the 
     Corporate Board. Any other member shall receive, for each day 
     (including travel time) the member is engaged in the 
     performance of the functions of the Corporate Board, 
     compensation at a rate not to exceed the daily equivalent of 
     the annual rate in effect for Level IV of the Executive 
     Schedule. A member of the Corporate Board shall be reimbursed 
     for travel, subsistence, and other necessary expenses 
     incurred by the member in the performance of the duties of 
     the member.
       ``(j) Conflict of Interest; Financial Disclosure.--
       ``(1) Conflict of interest.--Except as provided in 
     paragraph (3), no member of the Corporate Board shall vote on 
     any matter respecting any application, contract, claim, or 
     other particular matter pending before the Corporation, in 
     which, to the knowledge of the member, the member, spouse, or 
     child of the member, partner, or organization in which the 
     member is serving as officer, director, trustee, partner, or 
     employee, or any person or organization with whom the member 
     is negotiating or has any arrangement concerning prospective 
     employment, has a financial interest.
       ``(2) Violations.--Action by a member of the Corporate 
     Board that is contrary to the prohibition contained in 
     paragraph (1) shall be cause for removal of the member, but 
     shall not impair or otherwise affect the validity of any 
     otherwise lawful action by the Corporation in which the 
     member participated.
       ``(3) Exceptions.--The prohibitions contained in paragraph 
     (1) shall not apply if a member of the Corporate Board 
     advises the Corporate Board of the nature of the particular 
     matter in which the member proposes to participate, and if 
     the member makes a full disclosure of the financial interest, 
     prior to any participation, and the Corporate Board 
     determines, by majority vote, that the financial interest is 
     too remote or too inconsequential to affect the integrity of 
     the member's services to the Corporation in that matter. The 
     member involved shall not vote on the determination.
       ``(4) Financial disclosure.--A Board member shall be 
     subject to the financial disclosure requirements applicable 
     to a special Government employee (as defined in section 
     202(a) of title 18, United States Code).
       ``(k) Delegation of Authority.--
       ``(1) In general.--The Corporate Board may, by resolution, 
     delegate to the Chairperson, the Executive Director, or any 
     other officer or employee any function, power, or duty 
     assigned to the Corporation under this subtitle, other than a 
     function, power, or duty expressly vested in the Corporate 
     Board by subsections (c) through (n).
       ``(2) Prohibition on delegation.--Notwithstanding any other 
     law, the Secretary and any other officer or employee of the 
     United States shall not make any delegation to the Corporate 
     Board, the Chairperson, the Executive Director, or the 
     Corporation of any power, function, or authority not 
     expressly authorized by this subtitle, unless the delegation 
     is made pursuant to an authority in law that expressly makes 
     reference to this section.
     
[[Page S1237]]

       ``(3) Reorganization act.--Notwithstanding any other law, 
     the President (through authorities provided under chapter 9, 
     title 5, United States Code) may not authorize the transfer 
     to the Corporation of any power, function, or authority in 
     addition to powers, functions, and authorities provided by 
     law.
       ``(l) Bylaws.--Notwithstanding section 1658(f)(2), the 
     Corporate Board shall adopt, and may from time to time amend, 
     any bylaw that is necessary for the proper management and 
     functioning of the Corporation. The Corporate Board shall not 
     adopt any bylaw that has not been reviewed and approved by 
     the Secretary.
       ``(m) Organization.--The Corporate Board shall provide a 
     system of organization to fix responsibility and promote 
     efficiency.
       ``(n) Personnel and Facilities of Corporation.--
       ``(1) Appointment and compensation of personnel.--The 
     Corporation may select and appoint officers, attorneys, 
     employees, and agents, who shall be vested with such powers 
     and duties as the Corporation may determine.
       ``(2) Use of facilities and services of the department of 
     agriculture.--Notwithstanding any other provision of law, to 
     perform the responsibilities of the Corporation under this 
     subtitle, the Corporation may partially or jointly utilize 
     the facilities of and the services of employees of the 
     Department of Agriculture, without cost to the Corporation.
       ``(3) Government employment laws.--An officer or employee 
     of the Corporation shall be subject to all laws of the United 
     States relating to governmental employment.''.
       (b) Conforming Amendment.--Section 5315 of title V, United 
     States Code, is amended by adding at the end the following:
       ``Executive Director of the Alternative Agricultural 
     Research and Commercialization Corporation.''.

     SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND 
                   AGREEMENTS.

       Section 1660 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5904) is amended--
       (1) by striking ``Center'' each place it appears and 
     inserting ``Corporation'';
       (2) in subsection (c), by striking ``Board'' and inserting 
     ``Corporate Board''; and
       (3) in subsection (f), by striking ``non-Center'' and 
     inserting ``non-Corporation''.

     SEC. 725. COMMERCIALIZATION ASSISTANCE.

       Section 1661 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5905) is amended--
       (1) by striking ``Center'' each place it appears and 
     inserting ``Corporation'';
       (2) by striking ``Board'' each place it appears and 
     inserting ``Corporate Board'';
       (3) by striking subsection (c);
       (4) by redesignating subsections (d), (e), and (f) as 
     subsections (c), (d), and (e), respectively; and
       (5) in subsection (c) (as so redesignated)--
       (A) in the subsection heading of paragraph (1), by striking 
     ``director'' and inserting ``executive director''; and
       (B) by striking ``Director'' each place it appears and 
     inserting ``Executive Director''.

     SEC. 726. GENERAL RULES REGARDING THE PROVISION OF 
                   ASSISTANCE.

       Section 1662 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5906) is amended--
       (1) by striking ``Center'' each place it appears (except in 
     subsection (b)) and inserting ``Corporation'';
       (2) by striking ``Board'' each place it appears and 
     inserting ``Corporate Board''; and
       (3) in subsection (b)--
       (A) in the second sentence, by striking ``Board, a Regional 
     Center, or the Advisory Council'' and inserting ``Board or a 
     Regional Center''; and
       (B) by striking the third sentence.

     SEC. 727. REGIONAL CENTERS.

       Section 1663 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5907) is amended--
       (1) by striking ``Board'' each place it appears and 
     inserting ``Corporate Board'';
       (2) in subsection (e)(8), by striking ``Center'' and 
     inserting ``Corporation''; and
       (3) in subsection (f)--
       (A) in paragraph (2), by striking ``in consultation with 
     the Advisory Council appointed under section 1661(c)''; and
       (B) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Recommendation.--The Regional Director, based on the 
     comments of the reviewers, shall make and submit a 
     recommendation to the Board. A recommendation submitted by a 
     Regional Director shall not be binding on the Board.''.

     SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION REVOLVING FUND.

       Section 1664 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5908) is amended to read as 
     follows:

     ``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION REVOLVING FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States a revolving fund to be known as the 
     Alternative Agricultural Research and Commercialization 
     Revolving Fund. The Fund shall be available to the 
     Corporation, without fiscal year limitation, to carry out the 
     authorized programs and activities of the Corporation under 
     this subtitle.
       ``(b) Contents of Fund.--There shall be deposited in the 
     Fund--
       ``(1) such amounts as may be appropriated or transferred to 
     support programs and activities of the Corporation;
       ``(2) payments received from any source for products, 
     services, or property furnished in connection with the 
     activities of the Corporation;
       ``(3) fees and royalties collected by the Corporation from 
     licensing or other arrangements relating to commercialization 
     of products developed through projects funded in whole or 
     part by grants, contracts, or cooperative agreements executed 
     by the Corporation;
       ``(4) proceeds from the sale of assets, loans, and equity 
     interests made in furtherance of the purposes of the 
     Corporation;
       ``(5) donations or contributions accepted by the 
     Corporation to support authorized programs and activities; 
     and
       ``(6) any other funds acquired by the Corporation.
       ``(c) Funding Allocations.--Funding of projects and 
     activities under this subtitle shall be subject to the 
     following restrictions:
       ``(1) Of the total amount of funds made available for a 
     fiscal year under this subtitle--
       ``(A) not more than the lesser of 15 percent or $3,000,000 
     may be set aside to be used for authorized administrative 
     expenses of the Corporation in carrying out the functions of 
     the Corporation;
       ``(B) not more than 1 percent may be set aside to be used 
     for generic studies and specific reviews of individual 
     proposals for financial assistance; and
       ``(C) except as provided in subsection (e), not less than 
     84 percent shall be set aside to be awarded to qualified 
     applicants who file project applications with, or respond to 
     requests for proposals from, the Corporation under sections 
     1660 and 1661.
       ``(2) Any funds remaining uncommitted at the end of a 
     fiscal year shall be credited to the Fund and added to the 
     total program funds available to the Corporation for the next 
     fiscal year.
       ``(d) Authorized Administrative Expenses.--For the purposes 
     of this section, authorized administrative expenses shall 
     include all ordinary and necessary expenses, including all 
     compensation for personnel and consultants, expenses for 
     computer usage, or space needs of the Corporation and similar 
     expenses. Funds authorized for administrative expenses shall 
     not be available for the acquisition of real property.
       ``(e) Project Monitoring.--The Board may establish, in the 
     bylaws of the Board, a percent of funds provided under 
     subsection (c), not to exceed 1 percent per project award, 
     for any commercialization project to be expended from project 
     awards that shall be used to ensure that project funds are 
     being utilized in accordance with the project agreement.
       ``(f) Termination of the Fund.--On expiration of the 
     authority provided by this subtitle, all assets (after 
     payment of all outstanding obligations) of the Fund shall 
     revert to the general fund of the Treasury.
       ``(g) Authorization of Appropriations; Capitalization.--
       ``(1) Authorization of appropriation.--There are authorized 
     to be appropriated to the Fund $75,000,000 for each of fiscal 
     years 1996 through 2002.
       ``(2) Capitalization.--The Executive Director may pay as 
     capital of the Corporation, from amounts made available 
     through annual appropriations, $75,000,000 for each of fiscal 
     years 1996 through 2002. On the payment of capital by the 
     Executive Director, the Corporation shall issue an equivalent 
     amount of capital stock to the Secretary of the Treasury.
       ``(3) Transfer.--All obligations, assets, and related 
     rights and responsibilities of the Alternative Agricultural 
     Research and Commercialization Center established under 
     section 1658 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5902) (as in effect on the day 
     before the effective date of the Agricultural Reform and 
     Improvement Act of 1996) are transferred to the 
     Corporation.''.

     SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING 
                   CORPORATION ASSISTANCE.

       Subtitle G of title XVI of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH 
                   AND COMMERCIALIZATION PRODUCTS.

       ``(a) Definition of Executive Agency.--In this section, the 
     term `executive agency' has the meaning provided the term in 
     section 4(1) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403(1)).
       ``(b) Procurement.--To further the achievement of the 
     purposes specified in section 1657(b), an executive agency 
     may, for any procurement involving the acquisition of 
     property, establish set-asides and preferences for property 
     that has been commercialized with assistance provided under 
     this subtitle.
       ``(c) Set-Asides.--Procurements solely for property may be 
     set-aside exclusively for products developed with 
     commercialization assistance provided under section 1661.
       ``(d) Preferences.--Preferences for property developed with 
     assistance provided under this subtitle in procurements 
     involving the acquisition of property may be--
       ``(1) a price preference, if the procurement is solely for 
     property, of not greater than a percentage to be determined 
     within the sole discretion of the head of the procuring 
     agency; or
     
[[Page S1238]]

       ``(2) a technical evaluation preference included as an 
     award factor or subfactor as determined within the sole 
     discretion of the head of the procuring agency.
       ``(e) Notice.--Each competitive solicitation or invitation 
     for bids selected by an executive agency for a set-aside or 
     preference under this section shall contain a provision 
     notifying offerors where a list of products eligible for the 
     set aside or preference may be obtained.
       ``(f) Eligibility.--Offerors shall receive the set aside or 
     preference required under this section if, in the case of 
     products developed with financial assistance under--
       ``(1) section 1660, less than 10 years have elapsed since 
     the expiration of the grant, cooperative agreement, or 
     contract;
       ``(2) paragraph (1) or (2) of section 1661(a), less than 5 
     years have elapsed since the date the loan was made or 
     insured;
       ``(3) section 1661(a)(3), less than 5 years have elapsed 
     since the date of sale of any remaining government equity 
     interest in the company; or
       ``(4) section 1661(a)(4), less than 5 years have elapsed 
     since the date of the final payment on the repayable 
     grant.''.

     SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.

       (a) Business Plan.--Not later than 180 days after the date 
     of enactment of this Act, the Alternative Agricultural 
     Research and Commercialization Corporation established under 
     section 1658 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5902) shall--
       (1) develop a 5-year business plan pursuant to section 
     1659(c)(1)(E) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (as amended by section 723); and
       (2) submit the plan to the Secretary of Agriculture, the 
     Committee on Agriculture of the House of Representatives, and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (b) Feasibility Study and Report.--
       (1) Study.--The Secretary of Agriculture shall conduct a 
     study of and prepare a report on the continued feasibility of 
     the Alternative Agricultural Research and Commercialization 
     Corporation. In conducting the study, the Secretary shall 
     examine options for privatizing the Corporation and 
     converting the Corporation to a Government sponsored 
     enterprise.
       (2) Report.--Not later than December 31, 2001, the 
     Secretary shall transmit the report to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate.
 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                  Act

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

       (a) In General.--Section 306(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1926(a)) is amended--
       (1) in the first sentence of paragraph (2), by striking 
     ``$500,000,000'' and inserting ``$590,000,000'';
       (2) by striking paragraph (7) and inserting the following:
       ``(7) Definition of rural and rural areas.--For the purpose 
     of water and waste disposal grants and direct and guaranteed 
     loans provided under paragraphs (1) and (2), the terms 
     `rural' and `rural area' shall mean a city, town, or 
     unincorporated area that has a population of no more than 
     10,000 inhabitants.'';
       (3) by striking paragraphs (9), (10), and (11) and 
     inserting the following:
       ``(9) Conformity with state drinking water standards.--No 
     Federal funds shall be made available under this section 
     unless the Secretary determines that the water system seeking 
     funding will make significant progress toward meeting the 
     standards established under title XIV of the Public Health 
     Service Act (commonly known as the `Safe Drinking Water Act') 
     (42 U.S.C. 300f et seq.).
       ``(10) Conformity with federal and state water pollution 
     control standards.--In the case of a water treatment 
     discharge or waste disposal system seeking funding, no 
     Federal funds shall be made available under this section 
     unless the Secretary determines that the effluent from the 
     system conforms with applicable Federal and State water 
     pollution control standards.
       ``(11) Rural business opportunity grants.--
       ``(A) In general.--The Secretary may make grants, not to 
     exceed $1,500,000 annually, to public bodies, private 
     nonprofit community development corporations or entities, or 
     such other agencies as the Secretary may select to enable the 
     recipients--
       ``(i) to identify and analyze business opportunities, 
     including opportunities in export markets, that will use 
     local rural economic and human resources;
       ``(ii) to identify, train, and provide technical assistance 
     to existing or prospective rural entrepreneurs and managers;
       ``(iii) to establish business support centers and otherwise 
     assist in the creation of new rural businesses, the 
     development of methods of financing local businesses, and the 
     enhancement of the capacity of local individuals and entities 
     to engage in sound economic activities;
       ``(iv) to conduct regional, community, and local economic 
     development planning and coordination, and leadership 
     development; and
       ``(v) to establish centers for training, technology, and 
     trade that will provide training to rural businesses in the 
     utilization of interactive communications technologies to 
     develop international trade opportunities and markets.
       ``(B) Criteria.--In awarding the grants, the Secretary 
     shall consider, among other criteria to be established by the 
     Secretary--
       ``(i) the extent to which the applicant provides 
     development services in the rural service area of the 
     applicant; and
       ``(ii) the capability of the applicant to carry out the 
     purposes of this section.
       ``(C) Coordination.--The Secretary shall ensure, to the 
     maximum extent practicable, that assistance provided under 
     this paragraph is coordinated with and delivered in 
     cooperation with similar services or assistance provided to 
     rural residents by the Cooperative State Research, Education, 
     and Extension Service or other Federal agencies.
       ``(D) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $7,500,000 for each of fiscal years 1996 through 2002.'';
       (4) by striking paragraphs (14) and (15); and
       (5) in paragraph (16)--
       (A) by striking ``(16)(A) The'' and inserting the 
     following:
       ``(16) Rural water and wastewater technical assistance and 
     training programs.--
       ``(A) In general.--The'';
       (B) in subparagraph (A)--
       (i) by striking ``(i) identify'' and inserting the 
     following:
       ``(i) identify'';
       (ii) by striking ``(ii) prepare'' and inserting the 
     following:
       ``(ii) prepare''; and
       (iii) by striking ``(iii) improve'' and inserting the 
     following:
       ``(iii) improve'';
       (C) in subparagraph (B), by striking ``(B) In'' and 
     inserting the following:
       ``(B) Selection priority.--In''; and
       (D) in subparagraph (C)--
       (i) by striking ``(C) Not'' and inserting the following:
       ``(C) Funding.--Not''; and
       (ii) by striking ``2 per centum of any funds provided in 
     Appropriations Acts'' and inserting ``3 percent of any funds 
     appropriated''.
       (b) Conforming Amendments.--
       (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1927(a)(6)(B)) (as amended by 
     section 651(a)(2)) is further amended--
       (A) by striking clause (ii); and
       (B) by redesignating clauses (iii) and (iv) as clauses (ii) 
     and (iii), respectively.
       (2) The second sentence of section 309A(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1929a(a)) is amended by striking ``, 306(a)(14),''.

     SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM 
                   FOR SMALL COMMUNITIES.

       Section 306A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926a) is amended--
       (1) in subsection (e)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Maximum income.--No grant provided under this section 
     may be used to assist any rural area or community that has a 
     median household income in excess of the State 
     nonmetropolitan median household income according to the most 
     recent decennial census of the United States.''; and
       (B) in paragraph (2), by striking ``5,000'' and inserting 
     ``3,000''; and
       (2) by striking subsection (i) and inserting the following:
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $35,000,000 for each of fiscal years 1996 through 2002.''.

     SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM 
                   FOR SMALLEST COMMUNITIES.

       Section 306B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926b) is repealed.

     SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

       Section 309(f) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1929(f)) is amended--
       (1) by striking paragraph (1); and
       (2) by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.

     SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

       Section 309A(g) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1929a(g)) is amended--
       (1) by striking paragraph (1); and
       (2) by redesignating paragraphs (2) through (8) as 
     paragraphs (1) through (7), respectively.

     SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND 
                   DEVELOPMENT LOANS.

       Section 310A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1931) is repealed.

     SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

       (a) In General.--Section 310B of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1932) is amended--
       (1) in subsection (b), by striking ``(b)(1)'' and all that 
     follows through ``(2) The'' and inserting the following:
       ``(b) Solid Waste Management Grants.--The'';
       (2) in subsection (c)--
       (A) by striking ``(c)(1) The'' and inserting the following:
     
[[Page S1239]]

       ``(c) Rural Business Enterprise Grants.--
       ``(1) In general.--The'';
       (B) in paragraph (1), by inserting ``(including nonprofit 
     entities)'' after ``private business enterprises''; and
       (C) in paragraph (2)--
       (i) by striking ``(2) The'' and inserting the following:
       ``(2) Passenger transportation services or facilities.--
     The''; and
       (ii) by striking ``make grants'' and inserting ``award 
     grants on a competitive basis''; and
       (3) by striking subsections (e), (g), (h), and (i);
       (4) by redesignating subsections (f) and (j) as subsections 
     (e) and (f), respectively;
       (5) by striking subsection (e) (as so redesignated) and 
     inserting the following:
       ``(e) Rural Cooperative Development Grants.--
       ``(1) Definitions.--In this subsection:
       ``(A) Nonprofit institution.--The term `nonprofit 
     institution' means any organization or institution, including 
     an accredited institution of higher education, no part of the 
     net earnings of which inures, or may lawfully inure, to the 
     benefit of any private shareholder or individual.
       ``(B) United states.--The term `United States' means the 
     several States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Virgin Islands, Guam, American Samoa, and 
     the other territories and possessions of the United States.
       ``(2) Grants.--The Secretary shall make grants under this 
     subsection to nonprofit institutions for the purpose of 
     enabling the institutions to establish and operate centers 
     for rural cooperative development.
       ``(3) Goals.--The goals of a center funded under this 
     subsection shall be to facilitate the creation of jobs in 
     rural areas through the development of new rural 
     cooperatives, value added processing, and rural businesses.
       ``(4) Application.--Any nonprofit institution seeking a 
     grant under paragraph (2) shall submit to the Secretary an 
     application containing a plan for the establishment and 
     operation by the institution of a center or centers for 
     cooperative development. The Secretary may approve the 
     application if the plan contains the following:
       ``(A) A provision that substantiates that the center will 
     effectively serve rural areas in the United States.
       ``(B) A provision that the primary objective of the center 
     will be to improve the economic condition of rural areas 
     through cooperative development.
       ``(C) A description of the activities that the center will 
     carry out to accomplish the objective. The activities may 
     include the following:
       ``(i) Programs for applied research and feasibility studies 
     that may be useful to individuals, cooperatives, small 
     businesses, and other similar entities in rural areas served 
     by the center.
       ``(ii) Programs for the collection, interpretation, and 
     dissemination of information that may be useful to 
     individuals, cooperatives, small businesses, and other 
     similar entities in rural areas served by the center.
       ``(iii) Programs providing training and instruction for 
     individuals, cooperatives, small businesses, and other 
     similar entities in rural areas served by the center.
       ``(iv) Programs providing loans and grants to individuals, 
     cooperatives, small businesses, and other similar entities in 
     rural areas served by the center.
       ``(v) Programs providing technical assistance, research 
     services, and advisory services to individuals, cooperatives, 
     small businesses, and other similar entities in rural areas 
     served by the center.
       ``(vi) Programs providing for the coordination of services 
     and sharing of information among the center.
       ``(D) A description of the contributions that the 
     activities are likely to make to the improvement of the 
     economic conditions of the rural areas for which the center 
     will provide services.
       ``(E) Provisions that the center, in carrying out the 
     activities, will seek, where appropriate, the advice, 
     participation, expertise, and assistance of representatives 
     of business, industry, educational institutions, the Federal 
     Government, and State and local governments.
       ``(F) Provisions that the center will take all practicable 
     steps to develop continuing sources of financial support for 
     the center, particularly from sources in the private sector.
       ``(G) Provisions for--
       ``(i) monitoring and evaluating the activities by the 
     nonprofit institution operating the center; and
       ``(ii) accounting for money received by the institution 
     under this section.
       ``(5) Awarding grants.--Grants made under paragraph (2) 
     shall be made on a competitive basis. In making grants under 
     paragraph (2), the Secretary shall give preference to grant 
     applications providing for the establishment of centers for 
     rural cooperative development that--
       ``(A) demonstrate a proven track record in administering a 
     nationally coordinated, regionally or State-wide operated 
     project;
       ``(B) demonstrate previous expertise in providing technical 
     assistance in rural areas;
       ``(C) demonstrate the ability to assist in the retention of 
     existing businesses, facilitate the establishment of new 
     cooperatives and new cooperative approaches, and generate new 
     employment opportunities that will improve the economic 
     conditions of rural areas;
       ``(D) demonstrate the ability to create horizontal linkages 
     among businesses within and among various sectors in rural 
     America and vertical linkages to domestic and international 
     markets;
       ``(E) commit to providing technical assistance and other 
     services to underserved and economically distressed areas in 
     rural America; and
       ``(F) commit to providing greater than a 25 percent 
     matching contribution with private funds and in-kind 
     contributions.
       ``(6) Two-year grants.--The Secretary shall evaluate 
     programs receiving assistance under this subsection and, if 
     the Secretary determines it to be in the best interest of the 
     Federal Government, the Secretary may approve grants under 
     this subsection for up to 2 years.
       ``(7) Technical assistance to prevent excessive 
     unemployment or underemployment.--In carrying out this 
     subsection, the Secretary may provide technical assistance to 
     alleviate or prevent conditions of excessive unemployment, 
     underemployment, outmigration, or low employment growth in 
     economically distressed rural areas that the Secretary 
     determines have a substantial need for the assistance. The 
     assistance may include planning and feasibility studies, 
     management and operational assistance, and studies evaluating 
     the need for development potential of projects that increase 
     employment and improve economic growth in the areas.
       ``(8) Grants to defray administrative costs.--The Secretary 
     may make grants to defray not to exceed 75 percent of the 
     costs incurred by organizations and public bodies to carry 
     out projects for which grants or loans are made under this 
     subsection. For purposes of determining the non-Federal share 
     of the costs, the Secretary shall consider contributions in 
     cash and in kind, fairly evaluated, including premises, 
     equipment, and services.
       ``(9) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     $50,000,000 for each of fiscal years 1996 through 2002.''; 
     and
       (6) by adding at the end the following:
       ``(g) Loan Guarantees for the Purchase of Cooperative 
     Stock.--
       ``(1) Definition of farmer.--In this subsection, the term 
     `farmer' means any farmer that meets the family farmer 
     definition, as determined by the Secretary.
       ``(2) Loan guarantees.--The Secretary may guarantee loans 
     under this section to individual farmers for the purpose of 
     purchasing capital stock of a farmer cooperative established 
     for the purpose of processing an agricultural commodity.
       ``(3) Eligibility.--To be eligible for a loan guarantee 
     under this subsection, a farmer must produce the agricultural 
     commodity that will be processed by the cooperative.
       ``(4) Collateral.--To be eligible for a loan guarantee 
     under this subsection for the establishment of a cooperative, 
     the borrower of the loan must pledge collateral to secure at 
     least 25 percent of the amount of the loan.''.
       (b) Conforming Amendments.--
       (1) Clause (iii) of section 307(a)(6)(B) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1927(a)(6)(B)) (as redesignated by section 741(b)(1)(B)) is 
     amended by striking ``subsections (d) and (e) of section 
     310B'' and inserting ``section 310B(d)''.
       (2) Section 232(c)(2) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6942(c)(2)) is amended--
       (A) by striking ``310B(b)(2)'' and inserting ``310B(b)''; 
     and
       (B) by striking ``1932(b)(2)'' and inserting ``1932(b)''.
       (3) Section 233(b) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6943(b)) is amended--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraph (3) as paragraph (2).

     SEC. 748. ADMINISTRATION.

       Section 331(b)(4) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1981(b)(4)) is amended--
       (1) by inserting after ``claims'' the following: 
     ``(including debts and claims arising from loan 
     guarantees)'';
       (2) by striking ``Farmers Home Administration or'' and 
     inserting ``Consolidated Farm Service Agency, Rural Utilities 
     Service, Rural Housing and Community Development Service, 
     Rural Business and Cooperative Development Service, or a 
     successor agency, or''; and
       (3) by inserting after ``activities under the Housing Act 
     of 1949.'' the following: ``In the case of a security 
     instrument entered into under the Rural Electrification Act 
     of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify 
     the Attorney General of the intent of the Secretary to 
     exercise the authority of the Secretary under this 
     paragraph.''.

     SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 338 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1988) is amended--
       (1) by striking subsections (b), (c), (d), and (e); and
       (2) by redesignating subsection (f) as subsection (b).
       (b) Conforming Amendments.--
       (1) The first sentence of section 309(g)(1) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1929(g)(1)) is amended by inserting after ``section 338(c)'' 
     the following: ``(before the amendment made by section 
     447(a)(1) of the Agricultural Reform and Improvement Act of 
     1996)''.
     
[[Page S1240]]

       (2) Section 343(b) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991(b)) is amended by striking 
     ``338(f),'' and inserting ``338(b),''.

     SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

       Section 345 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1993) is repealed.

     SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

       Section 363 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2006e) is amended by adding at the end the 
     following: ``This section shall not apply to a loan made or 
     guaranteed under this title for a utility line.''.

     SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

       The Consolidated Farm and Rural Development Act is amended 
     by inserting after section 363 (7 U.S.C. 2006e) the 
     following:

     ``SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

       ``(a) Certified Lenders Program.--
       ``(1) In general.--The Secretary may establish a program 
     under which the Secretary may guarantee a loan for any rural 
     development program that is made by a lender certified by the 
     Secretary.
       ``(2) Certification requirements.--The Secretary may 
     certify a lender if the lender meets such criteria as the 
     Secretary may prescribe in regulations, including the ability 
     of the lender to properly make, service, and liquidate the 
     guaranteed loans of the lender.
       ``(3) Condition of certification.--As a condition of 
     certification, the Secretary may require the lender to 
     undertake to service the guaranteed loan using standards that 
     are not less stringent than generally accepted banking 
     standards concerning loan servicing that are used by prudent 
     commercial or cooperative lenders.
       ``(4) Guarantee.--Notwithstanding any other provision of 
     law, the Secretary may guarantee not more than 80 percent of 
     a loan made by a certified lender described in paragraph (1), 
     if the borrower of the loan meets the eligibility 
     requirements and such other criteria for the loan guarantee 
     that are established by the Secretary.
       ``(5) Certifications.--With respect to loans to be 
     guaranteed, the Secretary may permit a certified lender to 
     make appropriate certifications (as provided in regulations 
     issued by the Secretary) --
       ``(A) relating to issues such as creditworthiness, 
     repayment ability, adequacy of collateral, and feasibility of 
     the operation; and
       ``(B) that the borrower is in compliance with all 
     requirements of law, including regulations issued by the 
     Secretary.
       ``(6) Relationship to other requirements.--This subsection 
     shall not affect the responsibility of the Secretary to 
     determine eligibility, review financial information, and 
     otherwise assess an application.
       ``(b) Preferred Certified Lenders Program.--
       ``(1) In general.--The Secretary may establish a preferred 
     certified lenders program for lenders who establish their--
       ``(A) knowledge of, and experience under, the program 
     established under subsection (a);
       ``(B) knowledge of the regulations concerning the 
     particular guaranteed loan program; and
       ``(C) proficiency related to the certified lender program 
     requirements.
       ``(2) Additional lending institutions.--The Secretary may 
     certify any lending institution as a preferred certified 
     lender if the institution meets such additional criteria as 
     the Secretary may prescribe by regulation.
       ``(3) Revocation of designation.--The designation of a 
     lender as a preferred certified lender shall be revoked if 
     the Secretary determines that the lender is not adhering to 
     the rules and regulations applicable to the program or if the 
     loss experiences of a preferred certified lender are greater 
     than other preferred certified lenders, except that the 
     suspension or revocation shall not affect any outstanding 
     guarantee.
       ``(4) Condition of certification.--As a condition of the 
     preferred certification, the Secretary shall require the 
     lender to undertake to service the loan guaranteed by the 
     Secretary under this subsection using generally accepted 
     banking standards concerning loan servicing employed by 
     prudent commercial or cooperative lenders. The Secretary 
     shall, at least annually, monitor the performance of each 
     preferred certified lender to ensure that the conditions of 
     the certification are being met.
       ``(5) Effect of preferred lender certification.--
     Notwithstanding any other provision of law, the Secretary 
     may--
       ``(A) guarantee not more than 80 percent of any approved 
     loan made by a preferred certified lender as described in 
     this subsection, if the borrower meets the eligibility 
     requirements and such other criteria as may be applicable to 
     loans guaranteed by the Secretary; and
       ``(B) permit preferred certified lenders to make all 
     decisions, with respect to loans to be guaranteed by the 
     Secretary under this subsection relating to creditworthiness, 
     the closing, monitoring, collection, and liquidation of 
     loans, and to accept appropriate certifications, as provided 
     in regulations issued by the Secretary, that the borrower is 
     in compliance with all requirements of law and regulations 
     issued by the Secretary.''.

     SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT 
                   PROGRAMS.

       (a) In General.--Section 365 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2008) is repealed.
       (b) Conforming Amendments.--
       (1) Section 2310 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2007) is amended--
       (A) in subsection (a), by striking ``or the program 
     established in sections 365 and 366 of the Consolidated Farm 
     and Rural Development Act (as added by chapter 3 of this 
     subtitle)'';
       (B) in subsection (b)--
       (i) by striking ``States.--'' and all that follows through 
     ``partnerships.--The'' in paragraph (1) and inserting 
     ``States.--The''; and
       (ii) by striking paragraph (2);
       (C) in subsection (c)--
       (i) by striking ``Projects.--'' and all that follows 
     through ``partnerships.--Chapter'' in paragraph (1) and 
     inserting ``Projects.--Chapter'';
       (ii) by striking ``subsection (b)(1)'' and inserting 
     ``subsection (b)''; and
       (iii) by striking paragraph (2); and
       (D) in subsection (d), by striking ``and sections 365, 366, 
     367, and 368(b) of the Consolidated Farm and Rural 
     Development Act (as added by chapter 3 of this subtitle)''.
       (2) Section 2375 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 6613) is amended--
       (A) in subsection (e), by striking ``, as defined in 
     section 365(b)(2) of the Consolidated Farm and Rural 
     Development Act,''; and
       (B) by adding at the end the following:
       ``(g) Definition of Designated Rural Development Program.--
     In this section, the term `designated rural development 
     program' means a program carried out under section 304(b), 
     306(a), or 310B(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)), or 
     under section 1323 of the Food Security Act of 1985 (Public 
     Law 99-198; 7 U.S.C. 1932 note), for which funds are 
     available at any time during the fiscal year under the 
     section.''.
       (3) Paragraph (2) of section 233(b) of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6943(b)) (as 
     redesignated by section 747(b)(3)(B)) is amended by striking 
     ``sections 365 through 369 of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008-2008d)'' and inserting 
     ``section 369 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008d)''.

     SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

       Section 366 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008a) is repealed.

     SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

       Section 367 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008b) is repealed.

     SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE 
                   AUTHORITY.

       Section 368 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008c) is repealed.

     SEC. 757. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

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

     ``SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

       ``(a) Definitions.--In this section:
       ``(1) Board.--The term `Board' means the Board of Directors 
     established under subsection (f).
       ``(2) Center.--The term `Center' means the National Sheep 
     Industry Improvement Center established under subsection (b).
       ``(3) Eligible entity.--The term `eligible entity' means an 
     entity that promotes the betterment of the United States lamb 
     or wool industry and that is--
       ``(A) a public, private, or cooperative organization;
       ``(B) an association, including a corporation not operated 
     for profit;
       ``(C) a federally recognized Indian Tribe; or
       ``(D) a public or quasi-public agency.
       ``(4) Fund.--The term `Fund' means the Natural Sheep 
     Improvement Center Revolving Fund established under 
     subsection (e).
       ``(b) Establishment of Center.--The Secretary shall 
     establish a National Sheep Industry Improvement Center.
       ``(c) Purposes.--The purposes of the Center shall be to--
       ``(1) promote strategic development activities and 
     collaborative efforts by private and State entities to 
     maximize the impact of Federal assistance to strengthen and 
     enhance the production and marketing of lamb and wool in the 
     United States;
       ``(2) optimize the use of available human capital and 
     resources within the sheep industry;
       ``(3) provide assistance to meet the needs of the sheep 
     industry for infrastructure development, business 
     development, production, resource development, and market and 
     environmental research;
       ``(4) advance activities that empower and build the 
     capacity of the United States sheep industry to design unique 
     responses to the special needs of the lamb and wool 
     industries on both a regional and national basis; and
       ``(5) adopt flexible and innovative approaches to solving 
     the long-term needs of the United States sheep industry.
       ``(d) Strategic Plan.--
       ``(1) In general.--The Center shall submit to the Secretary 
     an annual strategic plan for the delivery of financial 
     assistance provided by the Center.
       ``(2) Requirements.--A strategic plan shall identify--
     
[[Page S1241]]

       ``(A) goals, methods, and a benchmark for measuring the 
     success of carrying out the plan and how the plan relates to 
     the national and regional goals of the Center;
       ``(B) the amount and sources of Federal and non-Federal 
     funds that are available for carrying out the plan;
       ``(C) funding priorities;
       ``(D) selection criteria for funding; and
       ``(E) a method of distributing funding.
       ``(e) Revolving Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     the Natural Sheep Improvement Center Revolving Fund. The Fund 
     shall be available to the Center, without fiscal year 
     limitation, to carry out the authorized programs and 
     activities of the Center under this section.
       ``(2) Contents of fund.--There shall be deposited in the 
     Fund--
       ``(A) such amounts as may be appropriated, transferred, or 
     otherwise made available to support programs and activities 
     of the Center;
       ``(B) payments received from any source for products, 
     services, or property furnished in connection with the 
     activities of the Center;
       ``(C) fees and royalties collected by the Center from 
     licensing or other arrangements relating to commercialization 
     of products developed through projects funded, in whole or 
     part, by grants, contracts, or cooperative agreements 
     executed by the Center;
       ``(D) proceeds from the sale of assets, loans, and equity 
     interests made in furtherance of the purposes of the Center;;
       ``(E) donations or contributions accepted by the Center to 
     support authorized programs and activities; and
       ``(F) any other funds acquired by the Center.
       ``(3) Use of fund.--
       ``(A) In general.--The Center may use amounts in the Fund 
     to make grants and loans to eligible entities in accordance 
     with a strategic plan submitted under subsection (d).
       ``(B) Continued existence.--The Center shall manage the 
     Fund in a manner that ensures that sufficient amounts are 
     available in the Fund to carry out subsection (c).
       ``(C) Diverse area.--The Center shall, to the maximum 
     extent practicable, use the Fund to serve broad geographic 
     areas and regions of diverse production.
       ``(D) Variety of loans and grants.--The Center shall, to 
     the maximum extent practicable, use the Fund to provide a 
     variety of intermediate- and long-term grants and loans.
       ``(E) Administration.--The Center may not use more than 3 
     percent of the amounts in the Fund for a fiscal year for the 
     administration of the Center.
       ``(F) Influencing legislation.--None of the amounts in the 
     Fund may be used to influence legislation.
       ``(G) Accounting.--To be eligible to receive amounts from 
     the Fund, an entity must agree to account for the amounts 
     using generally accepted accounting principles.
       ``(H) Uses of fund.--The Center may use amounts in the Fund 
     to--
       ``(i) participate with Federal and State agencies in 
     financing activities that are in accordance with a strategic 
     plan submitted under subsection (d), including participation 
     with several States in a regional effort;
       ``(ii) participate with other public and private funding 
     sources in financing activities that are in accordance with 
     the strategic plan, including participation in a regional 
     effort;
       ``(iii) provide security for, or make principle or interest 
     payments on, revenue or general obligation bonds issued by a 
     State, if the proceeds from the sale of the bonds are 
     deposited in the Fund;
       ``(iv) accrue interest;
       ``(v) guarantee or purchase insurance for local obligations 
     to improve credit market access or reduce interest rates for 
     a project that is in accordance with the strategic plan; or
       ``(vi) sell assets, loans, and equity interests acquired in 
     connection with the financing of projects funded by the 
     Center.
       ``(4) Loans.--
       ``(A) Rate.--A loan from the Fund may be made at an 
     interest rate that is below the market rate or may be 
     interest free.
       ``(B) Term.--The term of a loan may not exceed the shorter 
     of--
       ``(i) the useful life of the activity financed; or
       ``(ii) 40 years.
       ``(C) Source of repayment.--The Center may not make a loan 
     from the Fund unless the recipient establishes an assured 
     source of repayment.
       ``(D) Proceeds.--All payments of principal and interest on 
     a loan made from the Fund shall be deposited into the Fund.
       ``(5) Maintenance of effort.--The Center shall use the Fund 
     only to supplement and not to supplant Federal, State, and 
     private funds expended for rural development.
       ``(6) Funding.--
       ``(A) Deposit of funds.--All Federal and non-Federal 
     amounts received by the Center to carry out this section 
     shall be deposited in the Fund.
       ``(B) Mandatory funds.--Out of any moneys in the Treasury 
     not otherwise appropriated, the Secretary of the Treasury 
     shall provide to the Center not to exceed $20,000,000 to 
     carry out this section.
       ``(C) Additional funds.--In addition to any funds provided 
     under subparagraph (B), there is authorized to be 
     appropriated to carry out this section $30,000,000 to carry 
     out this section.
       ``(D) Privatization.--Federal funds shall not be used to 
     carry out this section beginning on the earlier of--
       ``(i) the date that is 10 years after the effective date of 
     this section; or
       ``(ii) the day after a total of $50,000,000 is made 
     available under subparagraphs (B) and (C) to carry out this 
     section.
       ``(f) Board of Directors.--
       ``(1) In general.--The management of the Center shall be 
     vested in a Board of Directors.
       ``(2) Powers.--The Board shall--
       ``(A) be responsible for the general supervision of the 
     Center;
       ``(B) review any grant, loan, contract, or cooperative 
     agreement to be made or entered into by the Center and any 
     financial assistance provided to the Center;
       ``(C) make the final decision, by majority vote, on whether 
     and how to provide assistance to an applicant; and
       ``(D) develop and establish a budget plan and a long-term 
     operating plan to carry out the goals of the Center.
       ``(3) Composition.--The Board shall be composed of--
       ``(A) 7 voting members, of whom--
       ``(i) 4 members shall be active producers of sheep in the 
     United States;
       ``(ii) 2 members shall have expertise in finance and 
     management; and
       ``(iii) 1 member shall have expertise in lamb and wool 
     marketing; and
       ``(B) 2 nonvoting members, of whom--
       ``(i) 1 member shall be the Under Secretary of Agriculture 
     for Rural Economic and Community Development; and
       ``(ii) 1 member shall be the Under Secretary of Agriculture 
     for Research, Education, and Economics.
       ``(4) Election.--A voting member of the Board shall be 
     chosen in an election of the members of a national 
     organization selected by the Secretary that--
       ``(A) consists only of sheep producers in the United 
     States; and
       ``(B) has as the primary interest of the organization the 
     production of lamb and wool in the United States.
       ``(5) Term of office.--
       ``(A) In general.--Subject to subparagraph (B), the term of 
     office of a voting member of the Board shall be 3 years.
       ``(B) Staggered initial terms.--The initial voting members 
     of the Board (other than the chairperson of the initially 
     established Board) shall serve for staggered terms of 1, 2, 
     and 3 years, as determined by the Secretary.
       ``(C) Reelection.--A voting member may be reelected for not 
     more than 1 additional term.
       ``(6) Vacancy.--
       ``(A) In general.--A vacancy on the Board shall be filled 
     in the same manner as the original Board.
       ``(B) Reelection.--A member elected to fill a vacancy for 
     an unexpired term may be reelected for 1 full term.
       ``(7) Chairperson.--
       ``(A) In general.--The Board shall select a chairperson 
     from among the voting members of the Board.
       ``(B) Term.--The term of office of the chairperson shall be 
     2 years.
       ``(8) Annual meeting.--
       ``(A) In general.--The Board shall meet not less than once 
     each fiscal year at the call of the chairperson or at the 
     request of the executive director appointed under subsection 
     (g)(1).
       ``(B) Location.--The location of a meeting of the Board 
     shall be established by the Board.
       ``(9) Voting.--
       ``(A) Quorum.--A quorum of the Board shall consist of a 
     majority of the voting members.
       ``(B) Majority vote.--A decision of the Board shall be made 
     by a majority of the voting members of the Board.
       ``(10) Conflicts of interest.--
       ``(A) In general.--A member of the Board shall not vote on 
     any matter respecting any application, contract, claim, or 
     other particular matter pending before the Board in which, to 
     the knowledge of the member, an interest is held by--
       ``(i) the member;
       ``(ii) any spouse of the member;
       ``(iii) any child of the member;
       ``(iv) any partner of the member;
       ``(v) any organization in which the member is serving as an 
     officer, director, trustee, partner, or employee; or
       ``(vi) any person with whom the member is negotiating or 
     has any arrangement concerning prospective employment or with 
     whom the member has a financial interest.
       ``(B) Removal.--Any action by a member of the Board that 
     violates subparagraph (A) shall be cause for removal from the 
     Board.
       ``(C) Validity of action.--An action by a member of the 
     Board that violates subparagraph (A) shall not impair or 
     otherwise affect the validity of any otherwise lawful action 
     by the Board.
       ``(D) Disclosure.--
       ``(i) In general.--If a member of the Board makes a full 
     disclosure of an interest and, prior to any participation by 
     the member, the Board determines, by majority vote, that the 
     interest is too remote or too inconsequential to affect the 
     integrity of any participation by the member, the member may 
     participate in the matter relating to the interest.
       ``(ii) Vote.--A member that discloses an interest under 
     clause (i) shall not vote on a 

[[Page S1242]]
     determination of whether the member may participate in the matter 
     relating to the interest.
       ``(E) Remands.--
       ``(i) In general.--The Secretary may vacate and remand to 
     the Board for reconsideration any decision made pursuant to 
     subsection (e)(3)(H) if the Secretary determines that there 
     has been a violation of this paragraph or any conflict of 
     interest provision of the bylaws of the Board with respect to 
     the decision.
       ``(ii) Reasons.--In the case of any violation and remand of 
     a funding decision to the Board under clause (i), the 
     Secretary shall inform the Board of the reasons for the 
     remand.
       ``(11) Compensation.--
       ``(A) In general.--A member of the Board shall not receive 
     any compensation by reason of service on the Board.
       ``(B) Expenses.--A member of the Board shall be reimbursed 
     for travel, subsistence, and other necessary expenses 
     incurred by the member in the performance of a duty of the 
     member.
       ``(12) Bylaws.--The Board shall adopt, and may from time to 
     time amend, any bylaw that is necessary for the proper 
     management and functioning of the Center.
       ``(13) Public hearings.--Not later than 1 year after the 
     effective date of this section, the Board shall hold public 
     hearings on policy objectives of the program established 
     under this section.
       ``(14) Organizational system.--The Board shall provide a 
     system of organization to fix responsibility and promote 
     efficiency in carrying out the functions of the Board.
       ``(15) Use of department of agriculture.--The Board may, 
     with the consent of the Secretary, utilize the facilities of 
     and the services of employees of the Department of 
     Agriculture, without cost to the Center.
       ``(g) Officers and employees.--
       ``(1) Executive director.--
       ``(A) In general.--The Board shall appoint an executive 
     director to be the chief executive officer of the Center.
       ``(B) Tenure.--The executive director shall serve at the 
     pleasure of the Board.
       ``(C) Compensation.--Compensation for the executive 
     director shall be established by the Board.
       ``(2) Other officers and employees.--The Board may select 
     and appoint officers, attorneys, employees, and agents who 
     shall be vested with such powers and duties as the Board may 
     determine.
       ``(3) Delegation.--The Board may, by resolution, delegate 
     to the chairperson, the executive director, or any other 
     officer or employee any function, power, or duty of the Board 
     other than voting on a grant, loan, contract, agreement, 
     budget, or annual strategic plan.
       ``(h) Consultation.--To carry out this section, the Board 
     may consult with--
       ``(1) State departments of agriculture;
       ``(2) Federal departments and agencies;
       ``(3) nonprofit development corporations;
       ``(4) colleges and universities;
       ``(5) banking and other credit-related agencies;
       ``(6) agriculture and agribusiness organizations; and
       ``(7) regional planning and development organizations.
       ``(i) Oversight.--
       ``(1) In general.--The Secretary shall review and monitor 
     compliance by the Board and the Center with this section.
       ``(2) Sanctions.--If, following notice and opportunity for 
     a hearing, the Secretary finds that the Board or the Center 
     is not in compliance with this section, the Secretary may--
       ``(A) cease making deposits to the Fund;
       ``(B) suspend the authority of the Center to withdraw funds 
     from the Fund; or
       ``(C) impose other appropriate sanctions, including 
     recoupment of money improperly expended for purposes 
     prohibited or not authorized by this Act and disqualification 
     from receipt of financial assistance under this section.
       ``(3) Removing sanctions.--The Secretary shall remove 
     sanctions imposed under paragraph (2) on a finding that there 
     is no longer any failure by the Board or the Center to comply 
     with this section or that the noncompliance shall be promptly 
     corrected.''.

             CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM

     SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

       The Consolidated Farm and Rural Development Act (7 U.S.C. 
     1921 et seq.) is amended by adding at the end the following:
           ``Subtitle E--Rural Community Advancement Program

     ``SEC. 381A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Rural and rural area.--The terms `rural' and `rural 
     area' mean, subject to section 306(a)(7), a city, town, or 
     unincorporated area that has a population of 50,000 
     inhabitants or less, other than an urbanized area immediately 
     adjacent to a city, town, or unincorporated area that has a 
     population in excess of 50,000 inhabitants.
       ``(2) State.--The term `State' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     Guam, the Virgin Islands of the United States, American 
     Samoa, the Commonwealth of the Northern Mariana Islands, the 
     Trust Territory of the Pacific Islands, and the Federated 
     States of Micronesia.

     ``SEC. 381B. ESTABLISHMENT.

       ``The Secretary shall establish a rural community 
     advancement program to provide grants, loans, loan 
     guarantees, and other assistance to meet the rural 
     development needs of local communities in States and 
     federally recognized Indian tribes.

     ``SEC. 381C. NATIONAL OBJECTIVES.

       ``The national objectives of the program established under 
     this subtitle shall be to--
       ``(1) promote strategic development activities and 
     collaborative efforts by State and local communities, and 
     federally recognized Indian tribes, to maximize the impact of 
     Federal assistance;
       ``(2) optimize the use of resources;
       ``(3) provide assistance in a manner that reflects the 
     complexity of rural needs, including the needs for business 
     development, health care, education, infrastructure, cultural 
     resources, the environment, and housing;
       ``(4) advance activities that empower, and build the 
     capacity of, State and local communities to design unique 
     responses to the special needs of the State and local 
     communities, and federally recognized Indian tribes, for 
     rural development assistance; and
       ``(5) adopt flexible and innovative approaches to solving 
     rural development problems.

     ``SEC. 381D. STRATEGIC PLANS.

       ``(a) In General.--The Secretary shall direct each of the 
     Directors of Rural Economic and Community Development State 
     Offices to prepare a strategic plan for each State for the 
     delivery of assistance under this subtitle within the State.
       ``(b) Assistance.--
       ``(1) In general.--Financial assistance for rural 
     development allocated for a State under this subtitle shall 
     be used only for orderly community development that is 
     consistent with the strategic plan of the State.
       ``(2) Rural area.--Assistance under this subtitle may only 
     be provided in a rural area.
       ``(3) Small communities.--In carrying out this subtitle 
     within a State, the Secretary shall give priority to 
     communities with the smallest populations and lowest per 
     capita income.
       ``(c) Review.--The Secretary shall review the strategic 
     plan of a State at least once every 5 years.
       ``(d) Contents.--A strategic plan of a State under this 
     section shall be a plan that--
       ``(1) coordinates economic, human, and community 
     development plans and related activities proposed for an 
     affected area;
       ``(2) provides that the State and an affected community 
     (including local institutions and organizations that have 
     contributed to the planning process) shall act as full 
     partners in the process of developing and implementing the 
     plan;
       ``(3) identifies goals, methods, and benchmarks for 
     measuring the success of carrying out the plan and how the 
     plan relates to local or regional ecosystems;
       ``(4) provides for the involvement, in the preparation of 
     the plan, of State, local, private, and public persons, State 
     rural development councils, federally-recognized Indian 
     tribes, and community-based organizations;
       ``(5) identifies the amount and source of Federal and non-
     Federal resources that are available for carrying out the 
     plan; and
       ``(6) includes such other information as may be required by 
     the Secretary.

     ``SEC. 381E. ACCOUNTS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, for each fiscal year, the Secretary shall consolidate 
     into 3 accounts, corresponding to the 3 function categories 
     established under subsection (c), the amounts made available 
     for programs included in each function category.
       ``(b) Allocation Within Account.--The Secretary shall 
     allocate the amounts in each account for such program 
     purposes authorized for the corresponding function category 
     among the States, as the Secretary may determine in 
     accordance with this subtitle.
       ``(c) Function Categories.--For purposes of subsection (a):
       ``(1) Rural housing and community development.--The rural 
     housing and community development category shall include 
     funds made available for--
       ``(A) community facility direct and guaranteed loans 
     provided under section 306(a)(1);
       ``(B) community facility grants provided under section 
     306(a)(21); and
       ``(C) rental housing loans for new housing provided under 
     section 515 of the Housing Act of 1949 (42 U.S.C. 1485).
       ``(2) Rural utilities.--The rural utilities category shall 
     include funds made available for--
       ``(A) water and waste disposal grants and direct and 
     guaranteed loans provided under paragraphs (1) and (2) of 
     section 306(a);
       ``(B) rural water and wastewater technical assistance and 
     training grants provided under section 306(a)(16);
       ``(C) emergency community water assistance grants provided 
     under section 306A; and
       ``(D) solid waste management grants provided under section 
     310B(b).
       ``(3) Rural business and cooperative development.--The 
     rural business and cooperative development category shall 
     include funds made available for--
       ``(A) rural business opportunity grants provided under 
     section 306(a)(11)(A);
       ``(B) business and industry guaranteed loans provided under 
     section 310B(a)(1); and
       ``(C) rural business enterprise grants and rural 
     educational network grants provided under section 310B(c).
     
[[Page S1243]]

       ``(d) Other Programs.--Subject to subsection (e), in 
     addition to any other appropriated amounts, the Secretary may 
     transfer amounts allocated for a State for any of the 3 
     function categories for a fiscal year under subsection (c) 
     to--
       ``(1) mutual and self-help housing grants provided under 
     section 523 of the Housing Act of 1949 (42 U.S.C. 1490c);
       ``(2) rural rental housing loans for existing housing 
     provided under section 515 of the Housing Act of 1949 (42 
     U.S.C. 1485);
       ``(3) rural cooperative development grants provided under 
     section 310B(e); and
       ``(4) grants to broadcasting systems provided under section 
     310B(f).
       ``(e) Transfer.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may transfer within each State up to 25 percent of the total 
     amount allocated for a State under each function category 
     referred to in subsection (c) for each fiscal year under this 
     section to any other function category, or to a program 
     referred to in subsection (d), but excluding State grants 
     under section 381G.
       ``(2) Limitation.--Not more than 10 percent of the total 
     amount (excluding grants to States under section 381G) made 
     available for any fiscal year for the programs covered by 
     each of the 3 function categories referred to in subsection 
     (c), and the programs referred to in subsection (d), shall be 
     available for the transfer.
       ``(f) Availability of Funds.--The Secretary may make 
     available funds appropriated for the programs referred to in 
     subsection (c) to defray the cost of any subsidy associated 
     with a guarantee provided under section 381H, except that not 
     more than 5 percent of the funds provided under subsection 
     (c) may be made available within a State.

     ``SEC. 381F. ALLOCATION.

       ``(a) National Reserve.--The Secretary may use not more 
     than 10 percent of the total amount of funds made available 
     for a fiscal year under section 381E to establish a national 
     reserve for rural development that may be used by the 
     Secretary in rural areas during the fiscal year to--
       ``(1) meet situations of exceptional need;
       ``(2) provide incentives to promote or reward superior 
     performance; or
       ``(3) carry out performance-oriented demonstration 
     projects.
       ``(b) Indian Tribes.--
       ``(1) Reservation.--The Secretary shall reserve not less 
     than 3 percent of the total amounts made available for a 
     fiscal year under section 381E to carry out rural development 
     programs specified in subsections (c) and (d) of section 381D 
     for federally recognized Indian tribes.
       ``(2) Allocation.--The Secretary shall establish a formula 
     for allocating the reserve and shall administer the reserve 
     through the appropriate Director of the Rural Economic and 
     Cooperative Development State office.
       ``(c) State Allocation.--
       ``(1) In general.--The Secretary shall allocate among all 
     the States the amounts made available under section 381E in a 
     fair, reasonable, and appropriate manner that takes into 
     consideration rural population, levels of income, 
     unemployment, and other relevant factors, as determined by 
     the Secretary.
       ``(2) Minimum allocation.--In making the allocations for 
     each of fiscal years 1996 through 2002, the Secretary shall 
     ensure that the percentage allocation for each State is equal 
     to the percentage of the average of the total funds made 
     available to carry out the programs referred to in section 
     381E(c) that were obligated in the State for each of fiscal 
     years 1993 and 1994.

     ``SEC. 381G. GRANTS TO STATES.

       ``(a) In General.--Subject to subsection (c), the Secretary 
     shall grant to any eligible State from which a request is 
     received for a fiscal year 5 percent of the amount allocated 
     for the State for the fiscal year under section 381F(c).
       ``(b) Eligibility.--To be eligible to receive a grant under 
     this section, the Secretary shall require that the State 
     maintain the grant funds received and any non-Federal 
     matching funds to carry out this subtitle in a separate 
     account, to remain available until expended.
       ``(c) Matching Funds.--For any fiscal year, if non-Federal 
     matching funds are provided for a State in an amount that is 
     equal to 200 percent or more of an amount equal to 5 percent 
     of the amount allocated for the State for the fiscal year 
     under section 381F(c), the Secretary shall pay to the State 
     the grant provided under this subsection in an amount equal 
     to 5 percent of the amount allocated for the State for the 
     fiscal year under section 381F(c).
       ``(d) Use of Funds.--The Secretary shall require that funds 
     provided to a State under this section be used in rural areas 
     to achieve the purposes of the programs referred to in 
     section 381E(c) in accordance with the strategic plan 
     referred to in section 381D.
       ``(e) Maintenance of Effort.--The State shall provide 
     assurances that funds received under this section will be 
     used only to supplement, not to supplant, the amount of 
     Federal, State, and local funds otherwise expended for rural 
     development assistance in the State.
       ``(f) Appeals.--The Secretary shall provide to a State an 
     opportunity for an appeal of any action taken under this 
     section.
       ``(g) Administrative Costs.--Federal funds shall not be 
     used for any administrative costs incurred by a State in 
     carrying out this subtitle.
       ``(h) Spending of Funds by State.--
       ``(1) In general.--Payments to a State from a grant under 
     this section for a fiscal year shall be obligated by the 
     State in the fiscal year or in the succeeding fiscal year. A 
     State shall obligate funds under this section to provide 
     assistance to rural areas pursuant, to the maximum extent 
     practicable, to applications received from the rural areas.
       ``(2) Failure to obligate.--If a State fails to obligate 
     payments in accordance with paragraph (1), the Secretary 
     shall make a corresponding reduction in the amount of 
     payments provided to the State under this section for the 
     subsequent fiscal year.
       ``(3) Noncompliance.--
       ``(A) Review.--The Secretary shall review and monitor State 
     compliance with this section.
       ``(B) Penalty.--If the Secretary finds that there has been 
     misuse of grant funds provided under this section, or 
     noncompliance with any of the terms and conditions of a 
     grant, after reasonable notice and opportunity for a 
     hearing--
       ``(i) the Secretary shall notify the State of the finding; 
     and
       ``(ii) no further payments to the State shall be made with 
     respect to the programs funded under this section until the 
     Secretary is satisfied that there is no longer any failure to 
     comply or that the noncompliance will be promptly corrected.
       ``(C) Other sanctions.--In the case of a finding of 
     noncompliance made pursuant to subparagraph (B), the 
     Secretary may, in addition to, or in lieu of, imposing the 
     sanctions described in subparagraph (B), impose other 
     appropriate sanctions, including recoupment of money 
     improperly expended for purposes prohibited or not authorized 
     by this section and disqualification from the receipt of 
     financial assistance under this section.
       ``(i) No Entitlement to Contract, Grant, or Assistance.--
     Nothing in this subtitle--
       ``(1) entitles any person to assistance or a contract or 
     grant; or
       ``(2) limits the right of a State to impose additional 
     limitations or conditions on assistance or a contract or 
     grant under this section.

     ``SEC. 381H. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS.

       ``(a) Definition of Eligible Public Entity.--In this 
     section, the term `eligible public entity' means any unit of 
     general local government.
       ``(b) Guarantee and Commitment.--The Secretary is 
     authorized, on such terms and conditions as the Secretary may 
     prescribe, to guarantee and make commitments to guarantee the 
     notes or other obligations issued by eligible public 
     entities, or by public agencies designated by the eligible 
     public entities, for the purposes of financing rural 
     development assistance activities authorized and funded under 
     section 381G.
       ``(c) Prerequisites.--No guarantee or commitment to 
     guarantee shall be made with respect to any note or other 
     obligation if the issuer's total outstanding notes or 
     obligations guaranteed under this section (excluding any 
     amount repaid under the contract entered into under 
     subsection (e)(1)(A)) would exceed an amount equal to 5 times 
     the amount of the grant approval for the issuer pursuant to 
     section 381G.
       ``(d) Payment of Principal, Interest, and Costs.--
     Notwithstanding any other provision of this subtitle, grants 
     allocated to an issuer pursuant to this subtitle (including 
     program income derived from the grants) shall be authorized 
     for use in the payment of principal and interest due 
     (including such servicing, underwriting, or other costs as 
     may be specified in regulations of the Secretary) on the 
     notes or other obligations guaranteed pursuant to this 
     section.
       ``(e) Repayment Contract; Security.--
       ``(1) In general.--To ensure the repayment of notes or 
     other obligations and charges incurred under this section and 
     as a condition for receiving the guarantees, the Secretary 
     shall require the issuer to--
       ``(A) enter into a contract, in a form acceptable to the 
     Secretary, for repayment of notes or other obligations 
     guaranteed under this section;
       ``(B) pledge any grant for which the issuer may become 
     eligible under this subtitle; and
       ``(C) furnish, at the discretion of the Secretary, such 
     other security as may be considered appropriate by the 
     Secretary in making the guarantees.
       ``(2) Security.--To assist in ensuring the repayment of 
     notes or other obligations and charges incurred under this 
     section, a State shall pledge any grant for which the State 
     may become eligible under this subtitle as security for notes 
     or other obligations and charges issued under this section by 
     any unit of general local government in the State.
       ``(f) Pledged Grants for Repayments.--Notwithstanding any 
     other provision of this subtitle, the Secretary is authorized 
     to apply grants pledged pursuant to paragraphs (1)(B) and (2) 
     of subsection (e) to any repayments due the United States as 
     a result of the guarantees.
       ``(g) Outstanding Obligations.--The total amount of 
     outstanding obligations guaranteed on a cumulative basis by 
     the Secretary pursuant to subsection (b) shall not at any 
     time exceed such amount as may be authorized to be 
     appropriated for any fiscal year.
       ``(h) Purchase of Guaranteed Obligations by Federal 
     Financing Bank.--Notes or other obligations guaranteed under 
     this section may not be purchased by the Federal Financing 
     Bank.
       ``(i) Full Faith and Credit.--The full faith and credit of 
     the United States is 

[[Page S1244]]
     pledged to the payment of all guarantees made under this section. Any 
     such guarantee made by the Secretary shall be conclusive 
     evidence of the eligibility of the obligations for the 
     guarantee with respect to principal and interest. The 
     validity of the guarantee shall be incontestable in the hands 
     of a holder of the guaranteed obligations.

     ``SEC. 381I. LOCAL INVOLVEMENT.

       ``The Secretary shall require that an applicant for 
     assistance under this subtitle demonstrate evidence of 
     significant community support.

     ``SEC. 381J. STATE-TO-STATE COLLABORATION.

       ``The Secretary shall permit the establishment of voluntary 
     pooling arrangements among States, and regional fund-sharing 
     agreements, to carry out this subtitle.

     ``SEC. 381K. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

       ``(a) In General.--The Secretary shall designate up to 10 
     community development venture capital organizations to 
     demonstrate the utility of guarantees to attract increased 
     private investment in rural private business enterprises.
       ``(b) Rural Business Investment Pool.--
       ``(1) Establishment.--To be eligible to participate in the 
     demonstration program, an organization referred to in 
     subsection (a) shall establish a rural business private 
     investment pool (referred to in this subsection as a `pool') 
     for the purpose of making equity investments in rural private 
     business enterprises.
       ``(2) Guarantee.--From funds allocated for the national 
     reserve under section 381F(a), the Secretary shall guarantee 
     the funds in a pool against loss, except that the guarantee 
     shall not exceed an amount equal to 30 percent of the total 
     funds in the pool.
       ``(3) Amount.--The Secretary shall issue guarantees 
     covering not more than $15,000,000 of obligations for each of 
     fiscal years 1996 through 2002.
       ``(4) Term.--The term of a guarantee provided under this 
     subsection shall not exceed 10 years.
       ``(5) Submission of plan.--To be eligible to participate in 
     the demonstration program, an organization referred to in 
     subsection (a) shall submit a plan that describes--
       ``(A) potential sources and uses of the pool to be 
     established by the organization;
       ``(B) the utility of the guarantee authority in attracting 
     capital for the pool; and
       ``(C) on selection, mechanisms for notifying State, local, 
     and private nonprofit business development organizations and 
     businesses of the existence of the pool.
       ``(6) Competition.--
       ``(A) In general.--The Secretary shall conduct a 
     competition for the designation and establishment of pools.
       ``(B) Priority.--In conducting the competition, the 
     Secretary shall give priority to organizations that--
       ``(i) have a demonstrated record of performance or have a 
     board and executive director with experience in venture 
     capital, small business equity investments, or community 
     development finance;
       ``(ii) propose to serve low-income communities;
       ``(iii) propose to maintain an average investment of not 
     more than $500,000 from the pool of the organization;
       ``(iv) invest funds statewide or in a multicounty region; 
     and
       ``(v) propose to target job opportunities resulting from 
     the investments primarily to economically disadvantaged 
     individuals.
       ``(C) Geographic diversity.--To the extent practicable, the 
     Secretary shall select organizations in diverse geographic 
     areas.

     ``SEC. 381L. ANNUAL REPORT.

       ``(a) In General.--The Secretary, in collaboration with 
     public, State, local, and private entities, State rural 
     development councils, and community-based organizations, 
     shall prepare an annual report that contains evaluations, 
     assessments, and performance outcomes concerning the rural 
     community advancement programs carried out under this 
     subtitle.
       ``(b) Submission.--Not later than March 1 of each year, the 
     Secretary shall--
       ``(1) submit the report required under subsection (a) to 
     Congress and the chief executives of States participating in 
     the program established under this subtitle; and
       ``(2) make the report available to State and local 
     participants.

     ``SEC. 381M. RURAL DEVELOPMENT INTERAGENCY WORKING GROUP.

       ``(a) In General.--The Secretary shall provide leadership 
     within the Executive branch for, and assume responsibility 
     for, establishing an interagency working group chaired by the 
     Secretary.
       ``(b) Duties.--The working group shall establish policy, 
     provide coordination, make recommendations, and evaluate the 
     performance of or for all Federal rural development efforts.

     ``SEC. 381N. DUTIES OF RURAL ECONOMIC AND COMMUNITY 
                   DEVELOPMENT STATE OFFICES.

       ``In carrying out this subtitle, the Director of a Rural 
     Economic and Community Development State Office shall--
       ``(1) to the maximum extent practicable, ensure that the 
     State strategic plan is implemented;
       ``(2) coordinate community development objectives within 
     the State;
       ``(3) establish links between local, State, and field 
     office program administrators of the Department of 
     Agriculture;
       ``(4) ensure that recipient communities comply with 
     applicable Federal and State laws and requirements; and
       ``(5) integrate State development programs with assistance 
     under this subtitle.

     ``SEC. 381O. ELECTRONIC TRANSFER.

       ``The Secretary shall transfer funds in accordance with 
     this subtitle through electronic transfer as soon as 
     practicable after the effective date of this subtitle.''.

     SEC. 762. COMMUNITY FACILITIES GRANT PROGRAM.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by adding at 
     the end the following:
       ``(21) Community facilities grant program.--
       ``(A) In general.--The Secretary may make grants, in a 
     total amount not to exceed $10,000,000 for any fiscal year, 
     to associations, units of general local government, nonprofit 
     corporations, and federally recognized Indian tribes to 
     provide the Federal share of the cost of developing specific 
     essential community facilities in rural areas.
       ``(B) Federal share.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), the Secretary shall, by regulation, establish the 
     amount of the Federal share of the cost of the facility under 
     this paragraph.
       ``(ii) Maximum amount.--The amount of a grant provided 
     under this paragraph shall not exceed 75 percent of the cost 
     of developing a facility.
       ``(iii) Graduated scale.--The Secretary shall provide for a 
     graduated scale for the amount of the Federal share provided 
     under this paragraph, with higher Federal shares for 
     facilities in communities that have lower community 
     population and income levels, as determined by the 
     Secretary.''.
    Subtitle C--Amendments to the Rural Electrification Act of 1936

     SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

       Section 2 of the Rural Electrification Act of 1936 (7 
     U.S.C. 902) is amended--
       (1) by striking ``Sec. 2. (a) The Secretary of Agriculture 
     is'' and inserting the following:

     ``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

       ``(a) Loans.--The Secretary of Agriculture (referred to in 
     this Act as the `Secretary') is'';
       (2) in subsection (a)--
       (A) by striking ``and the furnishing'' the first place it 
     appears and all that follows through ``central station 
     service''; and
       (B) by striking ``systems; to make'' and all that follows 
     through the period at the end of the subsection and inserting 
     ``systems''; and
       (3) by striking subsection (b) and inserting the following:
       ``(b) Investigations and Reports.--The Secretary may make, 
     or cause to be made, studies, investigations, and reports 
     regarding matters, including financial, technological, and 
     regulatory matters, affecting the condition and progress of 
     electric, telecommunications, and economic development in 
     rural areas and publish and disseminate information with 
     respect to the matters.''.

     SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 3 of the Rural Electrification Act 
     of 1936 (7 U.S.C. 903) is amended to read as follows:

     ``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.''.
       (b) Conforming Amendments.--
       (1) Section 301(a) of the Rural Electrification Act of 1936 
     (7 U.S.C. 931(a)) is amended--
       (A) by striking ``(a)''; and
       (B) in paragraph (3), by striking ``notwithstanding section 
     3(a) of title I,''.
       (2) Section 302(b)(2) of the Rural Electrification Act of 
     1936 (7 U.S.C. 932(b)(2)) is amended by striking ``pursuant 
     to section 3(a) of this Act''.
       (3) The last sentence of section 406(a) of the Rural 
     Electrification Act of 1936 (7 U.S.C. 946(a)) is amended by 
     striking ``pursuant to section 3(a) of this Act''.

     SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.

       Section 4 of the Rural Electrification Act of 1936 (7 
     U.S.C. 904) is amended--
       (1) in the first sentence--
       (A) by striking ``for the furnishing of'' and all that 
     follows through ``central station service and''; and
       (B) by striking ``the provisions of sections 3(d) and 3(e) 
     but without regard to the 25 per centum limitation therein 
     contained,'' and inserting ``section 3,'';
       (2) in the second sentence, by striking ``: Provided 
     further, That all'' and all that follows through ``loan: And 
     provided further, That'' and inserting ``, except that''; and
       (3) in the third sentence, by striking ``and section 5''.

     SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.

       (a) In General.--Section 5 of the Rural Electrification Act 
     of 1936 (7 U.S.C. 905) is repealed.
       (b) Conforming Amendments.--Section 12(a) of the Rural 
     Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
       (1) by striking ``: Provided, however, That'' and inserting 
     ``, except that,''; and
       (2) by striking ``, and with respect to any loan made under 
     section 5,'' and all that follows through ``section 3''.

     SEC. 775. TESTIMONY ON BUDGET REQUESTS.

       Section 6 of the Rural Electrification Act of 1936 (7 
     U.S.C. 906) is amended by striking the second sentence.
     
[[Page S1245]]


     SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY 
                   EXECUTIVE ORDER.

       Section 8 of the Rural Electrification Act of 1936 (7 
     U.S.C. 908) is repealed.

     SEC. 777. ANNUAL REPORT.

       Section 10 of the Rural Electrification Act of 1936 (7 
     U.S.C. 910) is repealed.

     SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY 
                   SERVICES TO ELECTRIC CUSTOMERS.

       The Rural Electrification Act of 1936 is amended by 
     inserting after section 16 (7 U.S.C. 916) the following:

     ``SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE 
                   FACILITY SERVICES TO ELECTRIC CUSTOMERS.

       ``The Secretary shall establish rules and procedures that 
     prohibit borrowers under title III or under the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1921 et seq.) from 
     conditioning or limiting access to, or the use of, water and 
     waste facility services financed under the Consolidated Farm 
     and Rural Development Act if the conditioning or limiting is 
     based on whether individuals or entities in the area served 
     or proposed to be served by the facility receive, or will 
     accept, electric service from the borrower.''.

     SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

       Section 309 of the Rural Electrification Act of 1936 (7 
     U.S.C. 939) is amended--
       (1) in subsection (a), by striking ``(a) In General.--''; 
     and
       (2) by striking subsection (b).

     SEC. 780. PRIVATIZATION PROGRAM.

       Section 311 of the Rural Electrification Act of 1936 (7 
     U.S.C. 940a) is repealed.

     SEC. 781. RURAL BUSINESS INCUBATOR FUND.

       (a) In General.--Section 502 of the Rural Electrification 
     Act of 1936 (7 U.S.C. 950aa-1) is repealed.
       (b) Conforming Amendments.--Section 501 of the Rural 
     Electrification Act of 1936 (7 U.S.C. 950aa) is amended--
       (1) in paragraph (5), by inserting ``and'' at the end;
       (2) in paragraph (6), by striking ``; and'' at the end and 
     inserting a period; and
       (3) by striking paragraph (7).
         Subtitle D--Miscellaneous Rural Development Provisions

     SEC. 791. INTEREST RATE FORMULA.

       (a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the 
     Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011) is amended by 
     striking the fifth sentence and inserting the following: ``A 
     loan under this subsection shall be made under a contract 
     that provides, under such terms and conditions as the 
     Secretary considers appropriate, for the repayment of the 
     loan in not more than 30 years, with interest at a rate not 
     to exceed the current market yield for outstanding municipal 
     obligations with remaining periods to maturity comparable to 
     the average maturity for the loan, adjusted to the nearest 
     \1/8\ of 1 percent.''.
       (b) Watershed Protection and Flood Prevention Act.--Section 
     8 of the Watershed Protection and Flood Prevention Act (16 
     U.S.C. 1006a) is amended by striking the second sentence and 
     inserting the following: ``A loan or advance under this 
     section shall be made under a contract or agreement that 
     provides, under such terms and conditions as the Secretary 
     considers appropriate, for the repayment of the loan or 
     advance in not more than 50 years from the date when the 
     principal benefits of the works of improvement first become 
     available, with interest at a rate not to exceed the current 
     market yield for outstanding municipal obligations with 
     remaining periods to maturity comparable to the average 
     maturity for the loan, adjusted to the nearest \1/8\ of 1 
     percent.''.

     SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED 
                   FARMERS, AND RURAL FAMILIES.

       (a) In General.--Section 502 of the Rural Development Act 
     of 1972 (7 U.S.C. 2662) is amended by striking subsection 
     (f).
       (b) Conforming Amendments.--
       (1) Section 2389 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 
     note) is amended by striking subsection (d).
       (2) Section 503(c) of the Rural Development Act of 1972 (7 
     U.S.C. 2663(c)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``(1)'';
       (ii) by striking ``section 502(e)'' and all that follows 
     through ``shall be distributed'' and inserting ``subsections 
     (e), (h), and (i) of section 502 shall be distributed''; and
       (iii) by striking ``objectives of'' and all that follows 
     through ``title'' and inserting ``objectives of subsections 
     (e), (h), and (i) of section 502''; and
       (B) by striking paragraph (2).

     SEC. 793. COOPERATIVE AGREEMENTS.

       (a) Section 607(b) of the Rural Development Act of 1972 (7 
     U.S.C. 2204b(b)) is amended by striking paragraph (4) and 
     inserting the following:
       ``(4) Cooperative agreements.--
       ``(A) In general.--Notwithstanding chapter 63 of title 31, 
     United States Code, the Secretary may enter into cooperative 
     agreements with other Federal agencies, State and local 
     governments, and any other organization or individual to 
     improve the coordination and effectiveness of Federal 
     programs, services, and actions affecting rural areas, 
     including the establishment and financing of interagency 
     groups, if the Secretary determines that the objectives of 
     the agreement will serve the mutual interest of the parties 
     in rural development activities.
       ``(B) Cooperators.--Each cooperator, including each Federal 
     agency, to the extent that funds are otherwise available, may 
     participate in any cooperative agreement or working group 
     established pursuant to this paragraph by contributing funds 
     or other resources to the Secretary to carry out the 
     agreement or functions of the group.''.
       (b) Notwithstanding any other provision of law, section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1991(a)) is amended in subparagraph (F)--
       (i) by striking ``exceed 15 percent'' and all that follows 
     through ``Code'' and inserting the following: ``exceed--
       ``(i) 25 percent of the median acreage of the farms or 
     ranches, as the case may be, in the county in which the farm 
     or ranch operations of the applicant are located, as reported 
     in the most recent census of agriculture taken under section 
     142 of title 13, United States Code.''.
              TITLE VIII--RESEARCH EXTENSION AND EDUCATION
 Subtitle A--Amendments to National Agricultural Research, Extension, 
          and Teaching Policy Act of 1977 and Related Statutes

     SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND 
                   EDUCATION.

       Section 1402 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is 
     amended to read as follows:

     ``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, 
                   AND EDUCATION.

       ``The purposes of federally supported agricultural 
     research, extension, and education are to--
       ``(1) enhance the competitiveness of the United States 
     agriculture and food industry in an increasingly competitive 
     world environment;
       ``(2) increase the long-term productivity of the United 
     States agriculture and food industry while protecting the 
     natural resource base on which rural America and the United 
     States agricultural economy depend;
       ``(3) develop new uses and new products for agricultural 
     commodities, such as alternative fuels, and develop new 
     crops;
       ``(4) support agricultural research and extension to 
     promote economic opportunity in rural communities and to meet 
     the increasing demand for information and technology transfer 
     throughout the United States agriculture industry;
       ``(5) improve risk management in the United States 
     agriculture industry;
       ``(6) improve the safe production and processing of, and 
     adding of value to, United States food and fiber resources 
     using methods that are environmentally sound;
       ``(7) support higher education in agriculture to give the 
     next generation of Americans the knowledge, technology, and 
     applications necessary to enhance the competitiveness of 
     United States agriculture; and
       ``(8) maintain an adequate, nutritious, and safe supply of 
     food to meet human nutritional needs and requirements.''.

     SEC. 802. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY 
                   RESEARCH.

       Section 401(h) of the National Science and Technology 
     Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
     6651(h)) is amended by striking the second through fifth 
     sentences.

     SEC. 803. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

       (a) In General.--Section 1407 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3122) is repealed.
       (b) Conforming Amendments.--
       (1) Section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
     amended--
       (A) by striking paragraph (9); and
       (B) by redesignating paragraphs (10) through (18) as 
     paragraphs (9) through (17), respectively.
       (2) Section 1405 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is 
     amended--
       (A) in paragraph (5), by striking ``Joint Council, Advisory 
     Board,'' and inserting ``Advisory Board''; and
       (B) in paragraph (11), by striking ``the Joint Council,''.
       (3) Section 1410(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
     is amended by striking ``the recommendations of the Joint 
     Council developed under section 1407(f),''.
       (4) Section 1412 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is 
     amended--
       (A) in the section heading, by striking ``JOINT COUNCIL, 
     ADVISORY BOARD,'' and inserting ``ADVISORY BOARD'';
       (B) in subsection (a)--
       (i) by striking ``Joint Council, the Advisory Board,'' and 
     inserting ``Advisory Board'';
       (ii) by striking ``the cochairpersons of the Joint Council 
     and'' each place it appears; and
       (iii) in paragraph (2), by striking ``one shall serve as 
     the executive secretary to the Joint Council, one shall serve 
     as the executive secretary to the Advisory Board,'' and 
     inserting ``1 shall serve as the executive secretary to the 
     Advisory Board''; and
       (C) in subsections (b) and (c), by striking ``Joint 
     Council, Advisory Board,'' each place it appears and 
     inserting ``Advisory Board''.
     
[[Page S1246]]

       (5) Section 1413 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) is 
     amended--
       (A) in subsection (a), by striking ``Joint Council, the 
     Advisory Board,'' and inserting ``Advisory Board'';
       (B) in subsection (b), by striking ``Joint Council, 
     Advisory Board,'' and inserting ``Advisory Board''; and
       (C) by striking subsection (d).
       (6) Section 1434(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(c)) 
     is amended--
       (A) in the second sentence, by striking ``Joint Council, 
     the Advisory Board,'' and inserting ``Advisory Board''; and
       (B) in the fourth sentence, by striking ``the Joint 
     Council,''.

     SEC. 804. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       (a) In General.--Section 1408 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3123) is amended to read as follows:

     ``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       ``(a) Establishment.--The Secretary shall establish within 
     the Department of Agriculture a board to be known as the 
     `National Agricultural Research, Extension, Education, and 
     Economics Advisory Board'.
       ``(b) Membership.--
       ``(1) In general.--The Advisory Board shall consist of 25 
     members, appointed by the Secretary.
       ``(2) Selection of members.--The Secretary shall appoint 
     members to the Advisory Board from individuals who are 
     selected from national farm, commodity, agribusiness, 
     environmental, consumer, and other organizations directly 
     concerned with agricultural research, education, and 
     extension programs.
       ``(3) Representation.--A member of the Advisory Board may 
     represent 1 or more of the organizations referred to in 
     paragraph (2), except that 1 member shall be a representative 
     of the scientific community that is not closely associated 
     with agriculture. The Secretary shall ensure that the 
     membership of the Advisory Board includes full-time farmers 
     and ranchers and represents the interests of the full variety 
     of stakeholders in the agricultural sector.
       ``(c) Duties.--The Advisory Board shall--
       ``(1) review and provide consultation to the Secretary and 
     land-grant colleges and universities on long-term and short-
     term national policies and priorities, as set forth in 
     section 1402, relating to agricultural research, extension, 
     education, and economics;
       ``(2) evaluate the results and effectiveness of 
     agricultural research, extension, education, and economics 
     with respect to the policies and priorities;
       ``(3) review and make recommendations to the Under 
     Secretary of Agriculture for Research, Education, and 
     Economics on the research, extension, education, and 
     economics portion of the draft strategic plan required under 
     section 306 of title 5, United States Code; and
       ``(4) review the mechanisms of the Department of 
     Agriculture for technology assessment (which should be 
     conducted by qualified professionals) for the purposes of--
       ``(A) performance measurement and evaluation of the 
     implementation by the Secretary of the strategic plan 
     required under section 306 of title 5, United States Code;
       ``(B) implementation of the national research policies and 
     priorities set forth in section 1402; and
       ``(C) the development of mechanisms for the assessment of 
     emerging public and private agricultural research and 
     technology transfer initiatives.
       ``(d) Consultation.--In carrying out this section, the 
     Advisory Board shall solicit opinions and recommendations 
     from persons who will benefit from and use federally funded 
     agricultural research, extension, education, and economics.
       ``(e) Appointment.--A member of the Advisory Board shall be 
     appointed by the Secretary for a term of up to 3 years. The 
     members of the Advisory Board shall be appointed to serve 
     staggered terms.
       ``(f) Federal Advisory Committee Act.--The Advisory Board 
     shall be deemed to have filed a charter for the purpose of 
     section 9(c) of the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       ``(g) Termination.--The Advisory Board shall remain in 
     existence until September 30, 2002.''.
       (b) Conforming Amendments.--
       (1) Section 1404(1) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(1)) 
     is amended by striking ``National Agricultural Research and 
     Extension Users Advisory Board'' and inserting ``National 
     Agricultural Research, Extension, Education, and Economics 
     Advisory Board''.
       (2) Section 1410(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
     is amended by striking ``the recommendations of the Advisory 
     Board developed under section 1408(g),'' and inserting ``any 
     recommendations of the Advisory Board''.
       (3) The last sentence of section 4(a) of the Renewable 
     Resources Extension Act of 1978 (16 U.S.C. 1673(a)) is 
     amended by striking ``National Agricultural Research and 
     Extension Users Advisory Board'' and inserting ``National 
     Agricultural Research, Extension, Education, and Economics 
     Advisory Board''.

     SEC. 805. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

       (a) In General.--Section 1408A of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3123a) is repealed.
       (b) Conforming Amendments.--
       (1) Section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) 
     (as amended by section 803(b)(1)(B)) is further amended--
       (A) in paragraph (15), by adding ``and'' at the end;
       (B) in paragraph (16), by striking ``; and'' and inserting 
     a period; and
       (C) by striking paragraph (17).
       (2) Section 1405(12) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3121(12)) is amended by striking ``, after coordination with 
     the Technology Board,''.
       (3) Section 1410(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125(2)) 
     (as amended by section 804(b)(2)) is further amended by 
     striking ``and the recommendations of the Technology Board 
     developed under section 1408A(d)''.
       (4) Section 1412 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) 
     (as amended by section 803(b)(4)) is further amended--
       (A) in the section heading, by striking ``AND TECHNOLOGY 
     BOARD'';
       (B) in subsection (a)--
       (i) by striking ``and the Technology Board'' each place it 
     appears; and
       (ii) in paragraph (2), by striking ``and one shall serve as 
     the executive secretary to the Technology Board''; and
       (C) in subsections (b) and (c), by striking ``and 
     Technology Board'' each place it appears.
       (5) Section 1413 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3128) 
     (as amended by section 803(b)(5)) is further amended--
       (A) in subsection (a), by striking ``or the Technology 
     Board''; and
       (B) in subsection (b), by striking ``and the Technology 
     Board''.

     SEC. 806. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR 
                   FEDERAL-STATE COOPERATIVE PROGRAMS.

       Section 1409A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3124a) 
     is amended by adding at the end the following:
       ``(e) Applicability of Federal Advisory Committee Act.--
       ``(1) Public meetings.--All meetings of any entity 
     described in paragraph (2) shall be publicly announced in 
     advance and shall be open to the public. Detailed minutes of 
     meetings and other appropriate records of the activities of 
     such an entity shall be kept and made available to the public 
     on request.
       ``(2) Exemption.--The Federal Advisory Committee Act (5 
     U.S.C. App.) and title XVIII of the Food and Agriculture Act 
     of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any 
     committee, board, commission, panel, or task force, or 
     similar entity that--
       ``(A) is created for the purpose of cooperative efforts in 
     agricultural research, extension, or teaching; and
       ``(B) consists entirely of full-time Federal employees and 
     individuals who are employed by, or who are officials of, a 
     State cooperative institution or a State cooperative 
     agent.''.

     SEC. 807. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, 
                   EXTENSION, AND EDUCATION.

       Subtitle B of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 1413A. ACCOUNTABILITY.

       ``(a) In General.--The Secretary shall develop and carry 
     out a system to monitor and evaluate agricultural research 
     and extension activities conducted or supported by the 
     Federal Government that will enable the Secretary to measure 
     the impact of research, extension, and education programs 
     according to priorities, goals, and mandates established by 
     law.
       ``(b) Consistency With Other Requirements.--The system 
     shall be developed and carried out in a manner that is 
     consistent with the Government Performance and Results Act of 
     1993 (Public Law 103-62; 107 Stat. 285) and amendments made 
     by the Act.

     ``SEC. 1413B. IMMINENT OR EMERGING THREATS TO FOOD SAFETY AND 
                   ANIMAL AND PLANT HEALTH.

       ``In the case of any activities of an agency of the 
     Department of Agriculture that relate to food safety, animal 
     or plant health, research, education, or technology transfer, 
     the Secretary may transfer up to 5 percent of any amounts 
     made available to the agency for a fiscal year to an agency 
     of the Department of Agriculture reporting to the Under 
     Secretary of Agriculture for Research, Education, and 
     Economics for the purpose of addressing imminent or emerging 
     threats to food safety and animal and plant health.

     ``SEC. 1413C. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR 
                   COMPETITIVE RESEARCH, EXTENSION, AND EDUCATION 
                   PROGRAMS.

       ``The Federal Advisory Committee Act (5 U.S.C. App.) and 
     title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 
     2281 et seq.) shall not apply to any committee, board, 
     commission, panel, or task force, or similar entity, created 
     solely for the purpose of reviewing applications or proposals 
     requesting 

[[Page S1247]]
     funding under any competitive research, extension, or education program 
     carried out by the Secretary.''.

     SEC. 808. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       (a) In General.--Section 1417 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3152) is amended--
       (1) in subsection (b)--
       (A) by inserting before ``for a period'' the following: 
     ``or to research foundations maintained by the colleges and 
     universities,''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) to design and implement food and agricultural 
     programs to build teaching and research capacity at primarily 
     minority institutions;'';
       (2) by redesignating subsections (h) and (i) as subsections 
     (i) and (j), respectively;
       (3) by inserting after subsection (g) the following:
       ``(h) Secondary Education and 2-year Postsecondary 
     Education Teaching Programs.--
       ``(1) Agriscience and agribusiness education.--The 
     Secretary shall--
       ``(A) promote and strengthen secondary education and 2-year 
     postsecondary education in agriscience and agribusiness in 
     order to help ensure the existence in the United States of a 
     qualified workforce to serve the food and agricultural 
     sciences system; and
       ``(B) promote complementary and synergistic linkages among 
     secondary, 2-year postsecondary, and higher education 
     programs in the food and agricultural sciences in order to 
     promote excellence in education and encourage more young 
     Americans to pursue and complete a baccalaureate or higher 
     degree in the food and agricultural sciences.
       ``(2) Grants.--The Secretary may make competitive or 
     noncompetitive grants, for grant periods not to exceed 5 
     years, to public secondary education institutions, 2-year 
     community colleges, and junior colleges that have made a 
     commitment to teaching agriscience and agribusiness--
       ``(A) to enhance curricula in agricultural education;
       ``(B) to increase faculty teaching competencies;
       ``(C) to interest young people in pursuing a higher 
     education in order to prepare for scientific and professional 
     careers in the food and agricultural sciences;
       ``(D) to promote the incorporation of agriscience and 
     agribusiness subject matter into other instructional 
     programs, particularly classes in science, business, and 
     consumer education;
       ``(E) to facilitate joint initiatives among other secondary 
     or 2-year postsecondary institutions and with 4-year colleges 
     and universities to maximize the development and use of 
     resources such as faculty, facilities, and equipment to 
     improve agriscience and agribusiness education; and
       ``(F) to support other initiatives designed to meet local, 
     State, regional, or national needs related to promoting 
     excellence in agriscience and agribusiness education.''; and
       (4) in subsection (j) (as so redesignated), by striking 
     ``1995'' and inserting ``2002''.
       (b) Transfer of Functions and Duties Pertaining to the 
     Future Farmers of America.--
       (1) In general.--There are transferred to the Secretary of 
     Agriculture all the functions and duties of the Secretary of 
     Education under the Act entitled ``An Act to incorporate the 
     Future Farmers of America, and for other purposes'', approved 
     August 30, 1950 (36 U.S.C. 271 et seq.).
       (2) Personnel and unexpended balances.--There are 
     transferred to the Department of Agriculture all personnel 
     and balances of unexpended appropriations available for 
     carrying out the duties and functions transferred under 
     paragraph (1).
       (3) Amendments.--The Act entitled ``An Act to incorporate 
     the Future Farmers of America, and for other purposes'', 
     approved August 30, 1950, is amended--
       (A) in section 7(c) (36 U.S.C. 277(c)) by striking 
     ``Secretary of Education, the executive secretary shall be a 
     member of the Department of Education'' and inserting 
     ``Secretary of Agriculture, the executive secretary shall be 
     an officer or employee of the Department of Agriculture'';
       (B) in section 8(a) (36 U.S.C. 278(a))--
       (i) by striking ``Secretary of Education'' and inserting 
     ``Secretary of Agriculture''; and
       (ii) by striking ``Department of Education'' and inserting 
     ``Department of Agriculture''; and
       (C) in section 18 (36 U.S.C. 288)--
       (i) by striking ``Secretary of Education'' each place it 
     appears and inserting ``Secretary of Agriculture''; and
       (ii) by striking ``Department of Education'' each place it 
     appears and inserting ``Department of Agriculture''.

     SEC. 809. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING 
                   OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``1995'' and inserting ``2002''.

     SEC. 810. POLICY RESEARCH CENTERS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (as amended by section 809) is further 
     amended by inserting after section 1418 (7 U.S.C. 3153) the 
     following:

     ``SEC. 1419. POLICY RESEARCH CENTERS.

       ``(a) In General.--Consistent with this section, the 
     Secretary may make grants, competitive grants, and special 
     research grants to, and enter into cooperative agreements and 
     other contracting instruments with, policy research centers 
     to conduct research and education programs that are 
     objective, operationally independent, and external to the 
     Federal Government and that concern the effect of public 
     policies on--
       ``(1) the farm and agricultural sectors;
       ``(2) the environment;
       ``(3) rural families, households and economies; and
       ``(4) consumers, food, and nutrition.
       ``(b) Eligible Recipients.--Except to the extent otherwise 
     prohibited by law, State agricultural experiment stations, 
     colleges and universities, other research institutions and 
     organizations, private organizations, corporations, and 
     individuals shall be eligible to apply for and receive 
     funding under subsection (a).
       ``(c) Activities.--Under this section, funding may be 
     provided for disciplinary and interdisciplinary research and 
     education concerning activities consistent with this section, 
     including activities that--
       ``(1) quantify the implications of public policies and 
     regulations;
       ``(2) develop theoretical and research methods;
       ``(3) collect and analyze data for policymakers, analysts, 
     and individuals; and
       ``(4) develop programs to train analysts.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for fiscal years 1996 through 2002.''.

     SEC. 811. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174) is 
     amended to read as follows:

     ``SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH 
                   PROMOTION RESEARCH PROGRAM.

       ``(a) Authority of Secretary.--
       ``(1) In general.--The Secretary may establish, and award 
     grants for projects for, a multi-year research initiative on 
     human nutrition intervention and health promotion.
       ``(2) Emphasis of initiative.--In administering human 
     nutrition research projects under this section, the Secretary 
     shall give specific emphasis to--
       ``(A) coordinated longitudinal research assessments of 
     nutritional status; and
       ``(B) the implementation of unified, innovative 
     intervention strategies;

     to identify and solve problems of nutritional inadequacy and 
     contribute to the maintenance of health, well-being, 
     performance, and productivity of individuals, thereby 
     reducing the need of the individuals to use the health care 
     system and social programs of the United States.
       ``(b) Administration of Funds.--The Administrator of the 
     Agricultural Research Service shall administer funds made 
     available to carry out this section to ensure a coordinated 
     approach to health and nutrition research efforts.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for fiscal years 1996 through 2002.''.

     SEC. 812. FOOD AND NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``fiscal year 1995'' and 
     inserting ``each of fiscal years 1996 through 2002''.

     SEC. 813. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND 
                   DISEASE RESEARCH.

       Section 1429 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3191) is 
     amended to read as follows:

     ``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH 
                   AND DISEASE RESEARCH.

       ``(a) Purposes.--The purposes of this subtitle are to--
       ``(1) promote the general welfare through the improved 
     health and productivity of domestic livestock, poultry, 
     aquatic animals, and other income-producing animals that are 
     essential to the food supply of the United States and the 
     welfare of producers and consumers of animal products;
       ``(2) improve the health of horses;
       ``(3) facilitate the effective treatment of, and, to the 
     extent possible, prevent animal and poultry diseases in both 
     domesticated and wild animals that, if not controlled, would 
     be disastrous to the United States livestock and poultry 
     industries and endanger the food supply of the United States;
       ``(4) improve methods for the control of organisms and 
     residues in food products of animal origin that could 
     endanger the human food supply;
       ``(5) improve the housing and management of animals to 
     improve the well-being of livestock production species;
       ``(6) minimize livestock and poultry losses due to 
     transportation and handling;
       ``(7) protect human health through control of animal 
     diseases transmissible to humans;
       ``(8) improve methods of controlling the births of 
     predators and other animals; and
     
[[Page S1248]]

       ``(9) otherwise promote the general welfare through 
     expanded programs of research and extension to improve animal 
     health.
       ``(b) Findings.--Congress finds that--
       ``(1) the total animal health and disease research and 
     extension efforts of State colleges and universities and of 
     the Federal Government would be more effective if there were 
     close coordination between the efforts; and
       ``(2) colleges and universities having accredited schools 
     or colleges of veterinary medicine and State agricultural 
     experiment stations that conduct animal health and disease 
     research are especially vital in training research workers in 
     animal health and related disciplines.''.

     SEC. 814. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

       Section 1432 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3194) is 
     repealed.

     SEC. 815. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.

       Section 1433 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is 
     amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002'';
       (2) in subsection (b)(2)--
       (A) by striking ``domestic livestock and poultry'' each 
     place it appears and inserting ``domestic livestock, poultry, 
     and commercial aquaculture species''; and
       (B) in the second sentence, by striking ``horses, and 
     poultry'' and inserting ``horses, poultry, and commercial 
     aquaculture species'';
       (3) in subsection (d), by striking ``domestic livestock and 
     poultry'' and inserting ``domestic livestock, poultry, and 
     commercial aquaculture species''; and
       (4) in subsection (f), by striking ``domestic livestock and 
     poultry'' and inserting ``domestic livestock, poultry, and 
     commercial aquaculture species''.

     SEC. 816. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL 
                   RESEARCH.

       Section 1434 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196) is 
     amended--
       (1) in subsection (a)--
       (A) by inserting ``or national or regional problems 
     relating to pre-harvest, on-farm food safety, or animal well-
     being,'' after ``problems,''; and
       (B) by striking ``1995'' and inserting ``2002'';
       (2) in subsection (b), by striking ``eligible 
     institutions'' and inserting ``State agricultural experiment 
     stations, colleges and universities, other research 
     institutions and organizations, Federal agencies, private 
     organizations or corporations, and individuals'';
       (3) in subsection (c)--
       (A) in the first sentence, by inserting ``, food safety, 
     and animal well-being'' after ``animal health and disease''; 
     and
       (B) in the fourth sentence--
       (i) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (ii) by inserting after paragraph (1) the following:
       ``(2) any food safety problem that has a significant pre-
     harvest (on-farm) component and is recognized as posing a 
     significant health hazard to the consuming public;
       ``(3) issues of animal well-being related to production 
     methods that will improve the housing and management of 
     animals to improve the well-being of livestock production 
     species;'';
       (4) in the first sentence of subsection (d), by striking 
     ``to eligible institutions''; and
       (5) by adding at the end the following:
       ``(f) Applicability of Federal Advisory Committee Act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) and title 
     XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 
     et seq.) shall not apply to a panel or board created solely 
     for the purpose of reviewing applications or proposals 
     submitted under this subtitle.''.

     SEC. 817. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT 
                   COLLEGES.

       Section 1446 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a) 
     is repealed.

     SEC. 818. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD 
                   SCIENCES FACILITIES AT 1890 LAND-GRANT 
                   COLLEGES.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``$8,000,000 for each of the 
     fiscal years 1991 through 1995'' and inserting ``$15,000,000 
     for each of fiscal years 1996 through 2002''.

     SEC. 819. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS 
                   AUTHORIZATION.

       Section 1448 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
     is amended--
       (1) in subsection (a)(1), by inserting ``, or fiscal years 
     1996 through 2002,'' after ``1995''; and
       (2) in subsection (f), by striking ``1995'' and inserting 
     ``2002''.

     SEC. 820. GRANTS TO STATES FOR INTERNATIONAL TRADE 
                   DEVELOPMENT CENTERS.

       Section 1458A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292) is 
     repealed.

     SEC. 821. AGRICULTURAL RESEARCH PROGRAMS.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended by striking ``1995'' each place it appears and 
     inserting ``2002''.

     SEC. 822. EXTENSION EDUCATION.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``fiscal year 1995'' and inserting ``each 
     of fiscal years 1995 through 2002''.

     SEC. 823. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

       Section 1473D of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d) 
     is amended--
       (1) in subsection (a)--
       (A) by striking ``1995'' and inserting ``2002''; and
       (B) by striking ``and pilot'';
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) in subparagraph (B), by striking ``at pilot sites'' 
     through ``the area''; and
       (ii) in subparagraph (D)--

       (I) by striking ``near such pilot sites''; and
       (II) by striking ``successful pilot program'' and inserting 
     ``successful program'';

       (B) in paragraph (3)--
       (i) by striking ``pilot'';
       (ii) in subparagraph (C), by striking ``and'' at the end;
       (iii) in subparagraph (D), by striking the period at the 
     end and inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(E) to conduct fundamental and applied research related 
     to the development of new commercial products derived from 
     natural plant material for industrial, medical, and 
     agricultural applications; and
       ``(F) to participate with colleges and universities, other 
     Federal agencies, and private sector entities in conducting 
     research described in subparagraph (E).''

     SEC. 824. AQUACULTURE ASSISTANCE PROGRAMS.

       (a) Reports.--Section 1475 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3322) is amended--
       (1) by striking subsection (e); and
       (2) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (b) Aquaculture Research Facilities.--Section 1476(b) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3323(b)) is amended by striking 
     ``1995'' and inserting ``2002''.
       (c) Research and Extension.--Section 1477 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3324) is amended by striking ``1995'' and 
     inserting ``2002''.

     SEC. 825. RANGELAND RESEARCH.

       (a) Reports.--Section 1481 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3334) is repealed.
       (b) Advisory Board.--Section 1482 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3335) is repealed.
       (c) Authorization of Appropriations.--Section 1483(a) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking 
     ``1995'' and inserting ``2002''.

     SEC. 826. TECHNICAL AMENDMENTS.

       The table of contents of the Food and Agriculture Act of 
     1977 (Public Law 95-113; 91 Stat. 913) is amended--
       (1) by striking the item relating to section 1402 and 
     inserting the following:

``Sec. 1402. Purposes of agricultural research, extension, and 
              education.'';
       (2) by striking the items relating to sections 1406, 1407, 
     1408A, 1432, 1446, 1458A, 1481, and 1482;
       (3) by striking the item relating to section 1408 and 
     inserting the following:

``Sec. 1408. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.'';
       (4) by striking the item relating to section 1412 and 
     inserting the following:

``Sec. 1412. Support for the Advisory Board.'';
       (5) by adding at the end of the items relating to subtitle 
     B of title XIV the following:

``Sec. 1413A. Accountability.
``Sec. 1413B. Imminent or emerging threats to food safety and animal 
              and plant health.
``Sec. 1413C. Federal Advisory Committee Act exemption for competitive 
              research, extension, and education programs.'';
       (6) by striking the item relating to section 1419 and 
     inserting the following:

``Sec. 1419. Policy research centers.'';
       (7) by striking the item relating to section 1424 and 
     inserting the following:

``Sec. 1424. Human nutrition intervention and health promotion research 
              program.'';
     and
       (8) by striking the item relating to section 1429 and 
     inserting the following:

``Sec. 1429. Purposes and findings relating to animal health and 
              disease research.''.
 Subtitle B--Amendments to Food, Agriculture, Conservation, and Trade 
                              Act of 1990

     SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND 
                   COORDINATION.

       (a) In General.--Subtitle G of title XIV of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5501 et seq.) is repealed.
       (b) Conforming Amendments.--
       (1) Section 1627(a)(3) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is 
     amended by striking ``, subtitle G of title XIV,''.
     
[[Page S1249]]

       (2) Section 1628 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking 
     ``, subtitle G of title XIV,'' each place it appears in 
     subsections (a) and (d).
       (3) Section 1629 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking 
     ``, subtitle G of title XIV,'' each place it appears in 
     subsections (f) and (g)(11).

     SEC. 832. EDUCATION PROGRAM REGARDING HANDLING OF 
                   AGRICULTURAL CHEMICALS AND AGRICULTURAL 
                   CHEMICAL CONTAINERS.

       (a) In General.--Section 1499A of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 3125c) is 
     repealed.
       (b) Conforming Amendment.--Section 1499(b) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5506(b)) is amended by striking ``and section 1499A''.

     SEC. 833. PROGRAM ADMINISTRATION.

       (a) In General.--Section 1622 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5812) is 
     amended--
       (1) by striking subsections (b), (c), and (d); and
       (2) by redesignating subsection (e) as subsection (b).
       (b) Conforming Amendments.--
       (1) Section 1619(b) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (7), (8), and (9), respectively.
       (2) Section 1621(c) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5811(c)) is amended--
       (A) in paragraph (1)--
       (i) by striking subparagraph (A); and
       (ii) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (A) through (D), respectively; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A); and
       (ii) by redesignating subparagraphs (B) through (F) as 
     subparagraphs (A) through (E), respectively.
       (3) Section 1622 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5812) (as amended by 
     subsection (a)) is further amended--
       (A) in subsection (a)--
       (i) by striking paragraph (2);
       (ii) in paragraph (3), by striking ``subsection (e)'' and 
     inserting ``subsection (b)''; and
       (iii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (B) in subsection (b)(2)--
       (i) by striking subparagraph (A); and
       (ii) by redesignating subparagraphs (B) through (F) as 
     subparagraphs (A) through (E), respectively.
       (4) Section 1628(b) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5831(b)) is amended by 
     striking ``Advisory Council, the Soil Conservation Service,'' 
     and inserting ``Natural Resources Conservation Service''.

     SEC. 834. NATIONAL GENETICS RESOURCES PROGRAM.

       (a) Functions.--Section 1632(d) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is 
     amended by striking paragraph (4) and inserting the 
     following:
       ``(4) unless otherwise prohibited by law, have the right to 
     make available on request, without charge and without regard 
     to the country from which the request originates, the genetic 
     material that the program assembles;''.
       (b) Authorization of Appropriations.--Section 1635(b) of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 5844(b)) is amended by striking ``1995'' and inserting 
     ``2002''.

     SEC. 835. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

       Section 1641(c) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking 
     ``1995'' and inserting ``2002''.

     SEC. 836. RESEARCH REGARDING PRODUCTION, PREPARATION, 
                   PROCESSING, HANDLING, AND STORAGE OF 
                   AGRICULTURAL PRODUCTS.

       Subtitle E of title XVI of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5871 et seq.) 
     is repealed.

     SEC. 837. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

       (a) In General.--Subtitle F of title XVI of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5881) is repealed.
       (b) Conforming Amendments.--
       (1) Section 28(b)(2)(A) of the Federal Insecticide, 
     Fungicide, and Rodenticide Act (7 U.S.C. 136w-3(b)(2)(A)) is 
     amended by striking ``and the information required by section 
     1651 of the Food, Agriculture, Conservation, and Trade Act of 
     1990''.
       (2) Section 1627(a)(3) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5821(a)(3)) is 
     amended by striking ``and section 1650''.
       (3) Section 1628 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking 
     ``section 1650,'' each place it appears in subsections (a) 
     and (d).
       (4) Section 1629 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking 
     ``section 1650,'' each place it appears in subsections (f) 
     and (g)(11).

     SEC. 838. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.

       Section 1670(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking 
     ``1995'' and inserting ``2002''.

     SEC. 839. PLANT GENOME MAPPING PROGRAM.

       Section 1671 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5924) is repealed.

     SEC. 840. SPECIALIZED RESEARCH PROGRAMS.

       Section 1672 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is repealed.

     SEC. 841. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``1995'' and inserting ``2002''.

     SEC. 842. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY 
                   RESEARCH.

       Section 1675(g)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5928(g)(1)) is amended by 
     striking ``1995'' and inserting ``2002''.

     SEC. 843. TURKEY RESEARCH CENTER AUTHORIZATION.

       Section 1676 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5929) is repealed.

     SEC. 844. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL 
                   TRADE.

       Section 1678 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5931) is repealed.

     SEC. 845. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION 
                   EDUCATION PROGRAMS.

       Section 1679 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5932) is repealed.

     SEC. 846. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5933) is amended--
       (1) in subsection (a)(6)(B), by striking ``1996'' and 
     inserting ``2002''; and
       (2) in subsection (b)(2), by striking ``1996'' and 
     inserting ``2002''.

     SEC. 847. DEMONSTRATION PROJECTS.

       Section 2348 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

     SEC. 848. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

       Section 2381(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
     ``1995'' and inserting ``2002''.

     SEC. 849. GLOBAL CLIMATE CHANGE.

       (a) Technical Advisory Committee.--Section 2404 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 6703) is repealed.
       (b) Authorization of Appropriations.--Section 2412 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 6710) is amended by striking ``1996'' and inserting 
     ``2002''.

     SEC. 850. TECHNICAL AMENDMENTS.

       The table of contents of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (Public Law 101-624; 104 
     Stat. 3359) is amended by striking the items relating to 
     subtitle G of title XIV, section 1499A, subtitles E and F of 
     title XVI, and sections 1671, 1672, 1676, 1678, 1679, 2348, 
     and 2404.
             Subtitle C--Miscellaneous Research Provisions

     SEC. 861. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

       (a) In General.--Section 4 of the Critical Agricultural 
     Materials Act (7 U.S.C. 178b) is amended--
       (1) by striking subsection (g); and
       (2) by redesignating subsection (h) as subsection (g).
       (b) Authorization of Appropriations.--Section 16(a) of the 
     Critical Agricultural Materials Act (7 U.S.C. 178n(a)) is 
     amended by striking ``1995'' and inserting ``2002''.

     SEC. 862. 1994 INSTITUTIONS.

       (a) Land-Grant Status.--The first sentence of section 
     533(b) of the Equity in Educational Land-Grant Status Act of 
     1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended by 
     striking ``2000'' and inserting ``2002''.
       (b) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 
     (Public Law 103-382; 7 U.S.C. 301 note) is amended by 
     striking ``2000'' each place it appears in subsections (b)(1) 
     and (c) and inserting ``2002''.

     SEC. 863. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT 
                   COLLEGES, INCLUDING TUSKEGEE UNIVERSITY AND THE 
                   DISTRICT OF COLUMBIA.

       (a) Eligibility for Funds.--Section 3(d) of the Act of May 
     8, 1914 (commonly known as the ``Smith-Lever Act'') (38 Stat. 
     373, chapter 79; 7 U.S.C. 343(d)), is amended by adding at 
     the end the following: ``A college or university eligible to 
     receive funds under the Act of August 30, 1890 (26 Stat. 417, 
     chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee 
     University, or section 208 of the District of Columbia Public 
     Postsecondary Education Reorganization Act (Public Law 93-
     471; 88 Stat. 1428) may apply for and receive directly from 
     the Secretary of Agriculture--
       ``(1) amounts made available under this subsection after 
     September 30, 1995, to carry out programs or initiatives for 
     which no funds were made available under this subsection for 
     fiscal year 1995, or any previous 

[[Page S1250]]
     fiscal year, as determined by the Secretary; and
       ``(2) amounts made available after September 30, 1995, to 
     carry out programs or initiatives funded under this 
     subsection prior to that date that are in excess of the 
     highest amount made available for the programs or initiatives 
     under this subsection for fiscal year 1995, or any previous 
     fiscal year, as determined by the Secretary.''.
       (b) Conforming Amendments.--
       (1) The third sentence of section 1444(a) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(a)) is amended by inserting before the 
     period at the end the following: ``, except that for the 
     purpose of this calculation, the total appropriations shall 
     not include amounts made available after September 30, 1995, 
     under section 3(d) of the Act of May 8, 1914 (commonly known 
     as the `Smith-Lever Act') (38 Stat. 373, chapter 79; 7 U.S.C. 
     343(d)), to carry out programs or initiatives for which no 
     funds were made available under section 3(d) of the Act for 
     fiscal year 1995, or any previous fiscal year, as determined 
     by the Secretary, and shall not include amounts made 
     available after September 30, 1995, to carry out programs or 
     initiatives funded under section 3(d) of the Act prior to 
     that date that are in excess of the highest amount made 
     available for the programs or initiatives for fiscal year 
     1995, or any previous fiscal year, as determined by the 
     Secretary.''.
       (2) Section 208(c) of the District of Columbia Public 
     Postsecondary Education Reorganization Act (Public Law 93-
     471; 88 Stat. 1428) is amended by adding at the end the 
     following: ``Funds appropriated under this subsection shall 
     be in addition to any amounts provided to the District of 
     Columbia from--
       ``(1) amounts made available after September 30, 1995, 
     under section 3(d) of the Act to carry out programs or 
     initiatives for which no funds were made available under 
     section 3(d) of the Act for fiscal year 1995, or any previous 
     fiscal year, as determined by the Secretary of Agriculture; 
     and
       ``(2) amounts made available after September 30, 1995, to 
     carry out programs or initiatives funded under section 3(d) 
     of the Act prior to the date that are in excess of the 
     highest amount made available for the programs or initiatives 
     for fiscal year 1995, or any previous fiscal year, as 
     determined by the Secretary of Agriculture.''.

     SEC. 864. COMMITTEE OF NINE.

       Section 3(c)(3) of the Act of March 2, 1887 (Chapter 314; 7 
     U.S.C. 361c(c)(3)) is amended by striking from ``, and shall 
     be used'' through the end of the paragraph and inserting a 
     period.

     SEC. 865. AGRICULTURAL RESEARCH FACILITIES.

       (a) In General.--
       (1) Research facilities.--The Research Facilities Act (7 
     U.S.C. 390 et seq.) is amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Research Facilities Act'.

     ``SEC. 2. DEFINITIONS.

       ``In this Act:
       ``(1) Agricultural research facility.--The term 
     `agricultural research facility' means a proposed facility 
     for research in food and agricultural sciences for which 
     Federal funds are requested by a college, university, or 
     nonprofit institution to assist in the construction, 
     alteration, acquisition, modernization, renovation, or 
     remodeling of the facility.
       ``(2) Food and agricultural sciences.--The term `food and 
     agricultural sciences' means--
       ``(A) agriculture, including soil and water conservation 
     and use, the use of organic materials to improve soil tilth 
     and fertility, plant and animal production and protection, 
     and plant and animal health;
       ``(B) the processing, distributing, marketing, and 
     utilization of food and agricultural products;
       ``(C) forestry, including range management, production of 
     forest and range products. multiple use of forest and 
     rangelands, and urban forestry;
       ``(D) aquaculture (as defined in section 1404(3) of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3103(3));
       ``(E) human nutrition;
       ``(F) production inputs, such as energy, to improve 
     productivity; and
       ``(G) germ plasm collection and preservation.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.

     ``SEC. 3. REVIEW PROCESS.

       ``(a) Submission to Secretary.--Each proposal for an 
     agricultural research facility shall be submitted to the 
     Secretary for review. The Secretary shall review the 
     proposals in the order in which the proposals are received.
       ``(b) Application Process.--In consultation with the 
     Committee on Appropriations of the Senate and Committee on 
     Appropriations of the House of Representatives, the Secretary 
     shall establish an application process for the submission of 
     proposals for agricultural research facilities.
       ``(c) Criteria for Approval.--
       ``(1) Determination by secretary.--With respect to each 
     proposal for an agricultural research facility submitted 
     under subsection (a), the Secretary shall determine whether 
     the proposal meets the criteria set forth in paragraph (2).
       ``(2) Criteria.--A proposal for an agricultural research 
     facility shall meet the following criteria:
       ``(A) Non-federal share.--The proposal shall certify the 
     availability of at least a 50 percent non-Federal share of 
     the cost of the facility. The non-Federal share shall be paid 
     in cash and may include funding from private sources or from 
     units of State or local government.
       ``(B) Nonduplication of facilities.--The proposal shall 
     demonstrate how the agricultural research facility would be 
     complementary to, and not duplicative of, facilities of 
     colleges, universities, and nonprofit institutions, and 
     facilities of the Agricultural Research Service, within the 
     State and region.
       ``(C) National research priorities.--The proposal shall 
     demonstrate how the agricultural research facility would 
     serve--
       ``(i) 1 or more of the national research policies and 
     priorities set forth in section 1402 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3101); and
       ``(ii) regional needs.
       ``(D) Long-term support.--The proposal shall demonstrate 
     that the recipient college, university, or nonprofit 
     institution has the ability and commitment to support the 
     long-term, ongoing operating costs of--
       ``(i) the agricultural research facility after the facility 
     is completed; and
       ``(ii) each program to be based at the facility.
       ``(E) Strategic plan.--After the development of the 
     strategic plan required by section 4, the proposal shall 
     demonstrate how the agricultural research facility reflects 
     the strategic plan for Federal research facilities.
       ``(d) Evaluation of Proposals.--Not later than 90 days 
     after receiving a proposal under subsection (a), the 
     Secretary shall--
       ``(1) evaluate and assess the merits of the proposal, 
     including the extent to which the proposal meets the criteria 
     set forth in subsection (c); and
       ``(2) report to the Committee on Appropriations of the 
     Senate and Committee on Appropriations of the House of 
     Representatives on the results of the evaluation and 
     assessment.

     ``SEC. 4. STRATEGIC PLAN FOR FEDERAL RESEARCH FACILITIES.

       ``(a) In General.--Not later than September 30, 1997, the 
     Secretary shall develop a comprehensive plan for the 
     development, construction, modernization, consolidation, and 
     closure of federally supported agricultural research 
     facilities.
       ``(b) Factors.--In developing the plan, the Secretary shall 
     consider--
       ``(1) the need to increase agricultural productivity and to 
     enhance the competitiveness of the United States agriculture 
     and food industry as set forth in section 1402 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101); and
       ``(2) the findings of the National Academy of Sciences with 
     respect to programmatic and scientific priorities relating to 
     agriculture.
       ``(c) Implementation.--The plan shall be developed for 
     implementation over the 10-fiscal year period beginning with 
     fiscal year 1998.

     ``SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

       ``The Federal Advisory Committee Act (5 U.S.C. App) and 
     title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 
     2281 et. seq) shall not apply to a panel or board created 
     solely for the purpose of reviewing applications or proposals 
     submitted under this Act.

     ``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--Subject to subsection (b), there are 
     authorized to be appropriated such sums as are necessary for 
     fiscal years 1996 through 2002 for the study, plan, design, 
     structure, and related costs of agricultural research 
     facilities under this Act.
       ``(b) Allowable Administrative Costs.--Not more than 3 
     percent of the funds made available for any project for an 
     agricultural research facility shall be available for 
     administration of the project.''.
       (2) Application.--
       (A) Current projects.--The amendment made by paragraph (1), 
     other than section 4 of the Research Facilities Act (as 
     amended by paragraph (1)), shall not apply to any project for 
     an agricultural research facility for which funds have been 
     made available for a feasibility study or for any phase of 
     the project prior to October 1, 1995.
       (B) Strategic plan.--The strategic plan required by section 
     4 of the Act shall apply to all federally supported 
     agricultural research facilities, including projects funded 
     prior to the effective date of this title.
       (b) Authorization of Appropriations for Federal 
     Facilities.--Section 1431 of the National Agricultural 
     Research, Extension, and Teaching Policy Act Amendments of 
     1985 (Public Law 99-198; 99 Stat. 1556) is amended--
       (1) in subsection (a)--
       (A) by striking ``(a)''; and
       (B) by striking ``1995'' and inserting ``2002''; and
       (2) by striking subsection (b).
       (c) Conforming Amendment.--Section 1463(a) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3311(a)) is amended by striking ``1416,''.

     SEC. 866. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

       Subsection (b)(10) of the Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is 
     amended--
       (1) by striking ``of Appropriations.--There'' and inserting 
     the following: ``and availability of appropriations.--
     
[[Page S1251]]

       ``(A) In general.--There'';
       (2) by striking ``fiscal year 1995'' and inserting ``each 
     of fiscal years 1995 through 2002'';
       (3) by striking ``(A) not'' and inserting the following:
       ``(i) not'';
       (4) by striking ``(B) not'' and inserting the following:
       ``(ii) not'';
       (5) in clause (ii) (as so designated), by striking ``20 
     percent'' and inserting ``40 percent'';
       (6) by striking ``(C) not'' and inserting the following:
       ``(iii) not'';
       (7) by striking ``(D) not'' and inserting the following:
       ``(iv) not'';
       (8) by striking ``(E) not'' and inserting the following:
       ``(v) not''; and
       (9) by adding at the end the following:
       ``(B) Availability.--Funds made available under 
     subparagraph (A) shall be available for obligation for a 
     period of 2 years from the beginning of the fiscal year for 
     which the funds are made available.''.

     SEC. 867. COTTON CROP REPORTS.

       The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 
     475), is repealed.

     SEC. 868. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

       Section 502 of the Rural Development Act of 1972 (7 U.S.C. 
     2662) is amended--
       (1) in subsection (a), by inserting after the first 
     sentence the following: ``The rural development extension 
     programs shall also promote coordinated and integrated rural 
     community initiatives that advance and empower capacity 
     building through leadership development, entrepreneurship, 
     business development and management training and strategic 
     planning to increase jobs, income, and quality of life in 
     rural communities.'';
       (2) by striking subsections (g) and (j); and
       (3) by redesignating subsections (h) and (i) as subsections 
     (g) and (h) respectively.

     SEC. 869. HUMAN NUTRITION RESEARCH.

       Section 1452 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 7 U.S.C. 3173 note) is repealed.

     SEC. 870. DAIRY GOAT RESEARCH PROGRAM.

       Section 1432 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1981 (Public 
     Law 97-98; 7 U.S.C. 3222 note) is amended--
       (1) in subsection (a), by striking ``(a)''; and
       (2) by striking subsection (b).

     SEC. 871. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
                   FACILITIES.

       (a) In General.--Section 1416 of the Food Security Act of 
     1985 (7 U.S.C. 3224) is repealed.
       (b) Technical Amendment.--The table of contents of the Food 
     Security Act of 1985 (Public Law 99-198; 99 Stat. 1354) is 
     amended by striking the item relating to section 1416.

     SEC. 872. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.

       (a) Transfer of Functions to the Secretary of 
     Agriculture.--
       (1) Title of public law 85-342.--The title of Public Law 
     85-342 (16 U.S.C. 778 et seq.) is amended by striking 
     ``Secretary of the Interior'' and inserting ``Secretary of 
     Agriculture''.
       (2) Authorization.--The first section of Public Law 85-342 
     (16 U.S.C. 778) is amended--
       (A) by striking ``Secretary of the Interior'' and all that 
     follows through ``directed to'' and inserting ``Secretary of 
     Agriculture shall'';
       (B) by striking ``station and stations'' and inserting ``1 
     or more centers''; and
       (C) in paragraph (5), by striking ``Department of 
     Agriculture'' and inserting ``Secretary of the Interior''.
       (3) Authority.--Section 2 of Public Law 85-342 (16 U.S.C. 
     778a) is amended by striking ``, the Secretary'' and all that 
     follows through ``authorized'' and inserting ``, the 
     Secretary of Agriculture is authorized''.
       (4) Assistance.--Section 3 of Public Law 85-342 (16 U.S.C. 
     778b) is amended--
       (A) by striking ``Secretary of the Interior'' and inserting 
     ``Secretary of Agriculture''; and
       (B) by striking ``Department of Agriculture'' and inserting 
     ``Secretary of the Interior''.
       (b) Transfer of Fish Farming Experimental Laboratory to 
     Department of Agriculture.--
       (1) Designation of stuttgart national aquaculture research 
     center.--
       (A) In general.--The Fish Farming Experimental Laboratory 
     in Stuttgart, Arkansas (including the facilities in Kelso, 
     Arkansas), shall be known and designated as the ``Stuttgart 
     National Aquaculture Research Center''.
       (B) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     laboratory referred to in subparagraph (A) shall be deemed to 
     be a reference to the ``Stuttgart National Aquaculture 
     Research Center''.
       (2) Transfer of laboratory to the department of 
     agriculture.--Subject to section 1531 of title 31, United 
     States Code, not later than 90 days after the effective date 
     of this title, there are transferred to the Department of 
     Agriculture--
       (A) the personnel employed in connection with the 
     laboratory referred to in paragraph (1);
       (B) the assets, liabilities, contracts, and real and 
     personal property of the laboratory;
       (C) the records of the laboratory; and
       (D) the unexpended balance of appropriations, 
     authorizations, allocations and other funds employed, held, 
     arising from, available to, or to be made available in 
     connection with the laboratory.
       (3) Nonduplication.--The research center referred to in 
     paragraph (1)(A) shall be complementary to, and not 
     duplicative of, facilities of colleges, universities, and 
     nonprofit institutions, and facilities of the Agricultural 
     Research Service, within the State and region, as determined 
     by the Administrator of the Service.

     SEC. 873. NATIONAL AQUACULTURE POLICY, PLANNING, AND 
                   DEVELOPMENT.

       (a) Definitions.--Section 3 of the National Aquaculture Act 
     of 1980 (16 U.S.C. 2802) is amended--
       (1) in paragraph (1), by striking ``the propagation'' and 
     all that follows through the period at the end and inserting 
     the following: ``the commercially controlled cultivation of 
     aquatic plants, animals, and microorganisms, but does not 
     include private for-profit ocean ranching of Pacific salmon 
     in a State in which the ranching is prohibited by law.'';
       (2) in paragraph (3), by striking ``or aquatic plant'' and 
     inserting ``aquatic plant, or microorganism'';
       (3) by redesignating paragraphs (7) through (9) as 
     paragraphs (8) through (10), respectively; and
       (4) by inserting after paragraph (6) the following:
       ``(7) The term `private aquaculture' means the commercially 
     controlled cultivation of aquatic plants, animals, and 
     microorganisms other than cultivation carried out by the 
     Federal Government, any State or local government, or an 
     Indian tribe recognized by the Bureau of Indian Affairs.''.
       (b) National Aquaculture Development Plan.--Section 4 of 
     the National Aquaculture Act of 1980 (16 U.S.C. 2803) is 
     amended--
       (1) in subsection (c)--
       (A) in subparagraph (A), by adding ``and'' at the end;
       (B) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (C);
       (2) in the second sentence of subsection (d), by striking 
     ``Secretaries determine that'' and inserting ``Secretary, in 
     consultation with the Secretary of Commerce, the Secretary of 
     the Interior, and the heads of such other agencies as the 
     Secretary determines are appropriate, determines that''; and
       (3) in subsection (e), by striking ``Secretaries'' and 
     inserting ``Secretary, in consultation with the Secretary of 
     Commerce, the Secretary of the Interior, and the heads of 
     such other agencies as the Secretary determines are 
     appropriate,''.
       (c) Functions and Powers of Secretaries.--Section 5(b)(3) 
     of the National Aquaculture Act of 1980 (16 U.S.C. 
     2804(b)(3)) is amended by striking ``Secretaries deem'' and 
     inserting ``Secretary, in consultation with the Secretary of 
     Commerce, the Secretary of the Interior, and the heads of 
     such other agencies as the Secretary determines are 
     appropriate, consider''.
       (d) Coordination of National Activities Regarding 
     Aquaculture.--The first sentence of section 6(a) of the 
     National Aquaculture Act of 1980 (16 U.S.C. 2805(a)) is 
     amended by striking ``(f)'' and inserting ``(e)''.
       (e) National Policy for Private Aquaculture.--The National 
     Aquaculture Act of 1980 (16 U.S.C. 2801 et seq.) is amended--
       (1) by redesignating sections 7, 8, 9, 10, and 11 as 
     sections 8, 9, 10, 11, and 12, respectively; and
       (2) by inserting after section 6 (16 U.S.C. 2805) the 
     following:

     ``SEC. 7. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

       ``(a) In General.--In consultation with the Secretary of 
     Commerce and the Secretary of the Interior, the Secretary 
     shall coordinate and implement a national policy for private 
     aquaculture in accordance with this section. In developing 
     the policy, the Secretary may consult with other agencies and 
     organizations.
       ``(b) Department of Agriculture Aquaculture Plan.--
       ``(1) In general.--The Secretary shall develop and 
     implement a Department of Agriculture Aquaculture Plan 
     (referred to in this section as the `Department plan') for a 
     unified aquaculture program of the Department of Agriculture 
     (referred to in this section as the `Department') to support 
     the development of private aquaculture.
       ``(2) Elements of department plan.--The Department plan 
     shall address--
       ``(A) programs of individual agencies of the Department 
     related to aquaculture that are consistent with Department 
     programs related to other areas of agriculture, including 
     livestock, crops, products, and commodities under the 
     jurisdiction of agencies of the Department;
       ``(B) the treatment of cultivated aquatic animals as 
     livestock and cultivated aquatic plants as agricultural 
     crops; and
       ``(C) means for effective coordination and implementation 
     of aquaculture activities and programs within the Department, 
     including individual agency commitments of personnel and 
     resources.
       ``(c) National Aquaculture Information Center.--In carrying 
     out section 5, the Secretary may maintain and support a 
     National Aquaculture Information Center at the National 
     Agricultural Library as a repository for information on 
     national and international aquaculture.
     
[[Page S1252]]

       ``(d) Treatment of Aquaculture.--The Secretary shall 
     treat--
       ``(1) private aquaculture as agriculture; and
       ``(2) commercially cultivated aquatic animals, plants, and 
     microorganisms, and products of the animals, plants, and 
     microorganisms, produced by private persons and transported 
     or moved in standard commodity channels as agricultural 
     livestock, crops, and commodities.
       ``(e) Private Aquaculture Policy Coordination, Development, 
     and Implementation.--
       ``(1) Responsibility.--The Secretary shall have 
     responsibility for coordinating, developing, and carrying out 
     policies and programs for private aquaculture.
       ``(2) Duties.--The Secretary shall--
       ``(A) coordinate all intradepartmental functions and 
     activities relating to private aquaculture; and
       ``(B) establish procedures for the coordination of 
     functions, and consultation with, the coordinating group.
       ``(f) Liaison With Departments of Commerce and the 
     Interior.--The Secretary of Commerce and the Secretary of the 
     Interior shall each designate an officer or employee of the 
     Department of the Secretary to be the liaison of the 
     Department to the Secretary of Agriculture.''.
       (f) Authorization of Appropriations.--Section 11 of the 
     National Aquaculture Act of 1980 (as redesignated by 
     subsection (e)(1)) is amended by striking ``the fiscal years 
     1991, 1992, and 1993'' each place it appears and inserting 
     ``fiscal years 1991 through 2002''.

     SEC. 874. EXPANSION OF AUTHORITIES RELATED TO THE NATIONAL 
                   ARBORETUM.

       (a) Solicitation of Gifts, Benefits, and Devises.--The 
     first sentence of section 5 of the Act of March 4, 1927 (89 
     Stat. 683; 20 U.S.C. 195), is amended by inserting 
     ``solicit,'' after ``authorized to''.
       (b) Concessions, Fees, and Voluntary Services.--The Act of 
     March 4, 1927 (44 Stat. 1422, chapter 505; 20 U.S.C. 191 et 
     seq.), is amended by adding at the end the following:

     ``SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

       ``(a) In General.--Notwithstanding the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) 
     and section 321 of the Act of June 30, 1932 (47 Stat. 412, 
     chapter 314; 40 U.S.C. 303b), the Secretary of Agriculture, 
     in furtherance of the mission of the National Arboretum, 
     may--
       ``(1) negotiate agreements granting concessions at the 
     National Arboretum to nonprofit scientific or educational 
     organizations the interests of which are complementary to the 
     mission of the National Arboretum, except that the net 
     proceeds of the organizations from the concessions shall be 
     used exclusively for research and educational work for the 
     benefit of the National Arboretum;
       ``(2) provide by concession, on such terms as the Secretary 
     of Agriculture considers appropriate and necessary, for 
     commercial services for food, drink, and nursery sales, if an 
     agreement for a permanent concession under this paragraph is 
     negotiated with a qualified person submitting a proposal 
     after due consideration of all proposals received after the 
     Secretary of Agriculture provides reasonable public notice of 
     the intent of the Secretary to enter into such an agreement;
       ``(3) dispose of excess property, including excess plants 
     and fish, in a manner designed to maximize revenue from any 
     sale of the property, including by way of public auction, 
     except that this paragraph shall not apply to the free 
     dissemination of new varieties of seeds and germ plasm in 
     accordance with section 520 of the Revised Statutes (commonly 
     known as the `Department of Agriculture Organic Act of 1862') 
     (7 U.S.C. 2201);
       ``(4) charge such fees as the Secretary of Agriculture 
     considers reasonable for temporary use by individuals or 
     groups of National Arboretum facilities and grounds for any 
     purpose consistent with the mission of the National 
     Arboretum;
       ``(5) charge such fees as the Secretary of Agriculture 
     considers reasonable for the use of the National Arboretum 
     for commercial photography or cinematography;
       ``(6) publish, in print and electronically and without 
     regard to laws relating to printing by the Federal 
     Government, informational brochures, books, and other 
     publications concerning the National Arboretum or the 
     collections of the Arboretum; and
       ``(7) license use of the National Arboretum name and logo 
     for public service or commercial uses.
       ``(b) Use of Funds.--Any funds received or collected by the 
     Secretary of Agriculture as a result of activities described 
     in subsection (a) shall be retained in a special fund in the 
     Treasury for the use and benefit of the National Arboretum as 
     the Secretary of Agriculture considers appropriate.
       ``(c) Acceptance of Voluntary Services.--The Secretary of 
     Agriculture may accept the voluntary services of 
     organizations described in subsection (a)(1), and the 
     voluntary services of individuals (including employees of the 
     National Arboretum), for the benefit of the National 
     Arboretum.''.

     SEC. 875. STUDY OF AGRICULTURAL RESEARCH SERVICE.

       (a) Study.--The Secretary of Agriculture shall request the 
     National Academy of Sciences to conduct a study of the role 
     and mission of the Agricultural Research Service. The study 
     shall--
       (1) evaluate the strength of science of the Service and the 
     relevance of the science to national priorities;
       (2) examine how the work of the Service relates to the 
     capacity of the United States agricultural research, 
     education, and extension system overall; and
       (3) include recommendations, as appropriate.
       (b) Report.--Not later than 18 months after the effective 
     date of this title, the Secretary shall prepare a report that 
     describes the results of the study conducted under subsection 
     (a) and submit the report to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate.
       (c) Funding.--The Secretary shall use to carry out this 
     section not more than $500,000 of funds made available to the 
     Agricultural Research Service for research.

     SEC. 876. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

       Section 7 of the Federal Meat Inspection Act (21 U.S.C. 
     607) is amended by adding at the end the following:
       ``(f) Lamb and Mutton.--
       ``(1) Standards.--The Secretary, consistent with United 
     States international obligations, shall establish standards 
     for the labeling of sheep carcasses, parts of carcasses, 
     meat, and meat food products as `lamb' or `mutton'.
       ``(2) Method.--The standards under paragraph (1) shall be 
     based on the use of the break or spool joint method to 
     differentiate lamb from mutton by the degree of calcification 
     of bone to reflect maturity.''.

     SEC. 877. SENSE OF SENATE.

       It is the sense of the Senate that the Department of 
     Agriculture should continue to make methyl bromide 
     alternative research and extension activities a high priority 
     of the Department: Provided, That it is the sense of the 
     Senate that the Department of Agriculture, the Environmental 
     Protection Agency, producer and processor organizations, 
     environmental organizations, and State agencies continue 
     their dialogue on the risks and benefits of extending the 
     2001 phaseout deadline.
                    TITLE IX--AGRICULTURAL PROMOTION
                          Subtitle A--Popcorn

     SEC. 901. SHORT TITLE.

       This subtitle may be cited as the ``Popcorn Promotion, 
     Research, and Consumer Information Act''.

     SEC. 902. FINDINGS AND DECLARATION OF POLICY.

       (a) Findings.--Congress finds that--
       (1) popcorn is an important food that is a valuable part of 
     the human diet;
       (2) the production and processing of popcorn plays a 
     significant role in the economy of the United States in that 
     popcorn is processed by several popcorn processors, 
     distributed through wholesale and retail outlets, and 
     consumed by millions of people throughout the United States 
     and foreign countries;
       (3) popcorn must be of high quality, readily available, 
     handled properly, and marketed efficiently to ensure that the 
     benefits of popcorn are available to the people of the United 
     States;
       (4) the maintenance and expansion of existing markets and 
     uses and the development of new markets and uses for popcorn 
     are vital to the welfare of processors and persons concerned 
     with marketing, using, and producing popcorn for the market, 
     as well as to the agricultural economy of the United States;
       (5) the cooperative development, financing, and 
     implementation of a coordinated program of popcorn promotion, 
     research, consumer information, and industry information is 
     necessary to maintain and expand markets for popcorn; and
       (6) popcorn moves in interstate and foreign commerce, and 
     popcorn that does not move in those channels of commerce 
     directly burdens or affects interstate commerce in popcorn.
       (b) Policy.--It is the policy of Congress that it is in the 
     public interest to authorize the establishment, through the 
     exercise of the powers provided in this subtitle, of an 
     orderly procedure for developing, financing (through adequate 
     assessments on unpopped popcorn processed domestically), and 
     carrying out an effective, continuous, and coordinated 
     program of promotion, research, consumer information, and 
     industry information designed to--
       (1) strengthen the position of the popcorn industry in the 
     marketplace; and
       (2) maintain and expand domestic and foreign markets and 
     uses for popcorn.
       (c) Purposes.--The purposes of this subtitle are to--
       (1) maintain and expand the markets for all popcorn 
     products in a manner that--
       (A) is not designed to maintain or expand any individual 
     share of a producer or processor of the market;
       (B) does not compete with or replace individual advertising 
     or promotion efforts designed to promote individual brand 
     name or trade name popcorn products; and
       (C) authorizes and funds programs that result in government 
     speech promoting government objectives; and
       (2) establish a nationally coordinated program for popcorn 
     promotion, research, consumer information, and industry 
     information.
       (d) Statutory Construction.--This subtitle treats 
     processors equitably. Nothing in this subtitle--
       (1) provides for the imposition of a trade barrier to the 
     entry into the United States of imported popcorn for the 
     domestic market; or 
     
[[Page S1253]]

       (2) provides for the control of production or otherwise 
     limits the right of any individual processor to produce 
     popcorn.

     SEC. 903. DEFINITIONS.

       In this subtitle (except as otherwise specifically 
     provided):
       (1) Board.--The term ``Board'' means the Popcorn Board 
     established under section 905(b).
       (2) Commerce.--The term ``commerce'' means interstate, 
     foreign, or intrastate commerce.
       (3) Consumer information.--The term ``consumer 
     information'' means information and programs that will assist 
     consumers and other persons in making evaluations and 
     decisions regarding the purchase, preparation, and use of 
     popcorn.
       (4) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (5) Industry information.--The term ``industry 
     information'' means information and programs that will lead 
     to the development of--
       (A) new markets, new marketing strategies, or increased 
     efficiency for the popcorn industry; or
       (B) activities to enhance the image of the popcorn 
     industry.
       (6) Marketing.--The term ``marketing'' means the sale or 
     other disposition of unpopped popcorn for human consumption 
     in a channel of commerce, but does not include a sale or 
     disposition to or between processors.
       (7) Order.--The term ``order'' means an order issued under 
     section 904.
       (8) Person.--The term ``person'' means an individual, group 
     of individuals, partnership, corporation, association, or 
     cooperative, or any other legal entity.
       (9) Popcorn.--The term ``popcorn'' means unpopped popcorn 
     (Zea Mays L) that is--
       (A) commercially grown;
       (B) processed in the United States by shelling, cleaning, 
     or drying; and
       (C) introduced into a channel of commerce.
       (10) Process.--The term ``process'' means to shell, clean, 
     dry, and prepare popcorn for the market, but does not include 
     packaging popcorn for the market without also engaging in 
     another activity described in this paragraph.
       (11) Processor.--The term ``processor'' means a person 
     engaged in the preparation of unpopped popcorn for the market 
     who owns or shares the ownership and risk of loss of the 
     popcorn and who processes and distributes over 4,000,000 
     pounds of popcorn in the market per year.
       (12) Promotion.--The term ``promotion'' means an action, 
     including paid advertising, to enhance the image or 
     desirability of popcorn.
       (13) Research.--The term ``research'' means any type of 
     study to advance the image, desirability, marketability, 
     production, product development, quality, or nutritional 
     value of popcorn.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) State.--The term ``State'' means each of the 50 States 
     and the District of Columbia.
       (16) United states.--The term ``United States'' means all 
     of the States.

     SEC. 904. ISSUANCE OF ORDERS.

       (a) In General.--To effectuate the policy described in 
     section 902(b), the Secretary, subject to subsection (b), 
     shall issue 1 or more orders applicable to processors. An 
     order shall be applicable to all popcorn production and 
     marketing areas in the United States. Not more than 1 order 
     shall be in effect under this subtitle at any 1 time.
       (b) Procedure.--
       (1) Proposal or request for issuance.--The Secretary may 
     propose the issuance of an order, or an association of 
     processors or any other person that would be affected by an 
     order may request the issuance of, and submit a proposal for, 
     an order.
       (2) Notice and comment concerning proposed order.--Not 
     later than 60 days after the receipt of a request and 
     proposal for an order under paragraph (1), or at such time as 
     the Secretary determines to propose an order, the Secretary 
     shall publish a proposed order and give due notice and 
     opportunity for public comment on the proposed order.
       (3) Issuance of order.--After notice and opportunity for 
     public comment under paragraph (2), the Secretary shall issue 
     an order, taking into consideration the comments received and 
     including in the order such provisions as are necessary to 
     ensure that the order conforms to this subtitle. The order 
     shall be issued and become effective not later than 150 days 
     after the date of publication of the proposed order.
       (c) Amendments.--The Secretary, as appropriate, may amend 
     an order. The provisions of this subtitle applicable to an 
     order shall be applicable to any amendment to an order, 
     except that an amendment to an order may not require a 
     referendum to become effective.

     SEC. 905. REQUIRED TERMS IN ORDERS.

       (a) In General.--An order shall contain the terms and 
     conditions specified in this section.
       (b) Establishment and Membership of Popcorn Board.--
       (1) In general.--The order shall provide for the 
     establishment of, and appointment of members to, a Popcorn 
     Board that shall consist of not fewer than 4 members and not 
     more than 9 members.
       (2) Nominations.--The members of the Board shall be 
     processors appointed by the Secretary from nominations 
     submitted by processors in a manner authorized by the 
     Secretary, subject to paragraph (3). Not more than 1 member 
     may be appointed to the Board from nominations submitted by 
     any 1 processor.
       (3) Geographical diversity.--In making appointments, the 
     Secretary shall take into account, to the extent practicable, 
     the geographical distribution of popcorn production 
     throughout the United States.
       (4) Terms.--The term of appointment of each member of the 
     Board shall be 3 years, except that the members appointed to 
     the initial Board shall serve, proportionately, for terms of 
     2, 3, and 4 years, as determined by the Secretary.
       (5) Compensation and expenses.--A member of the Board shall 
     serve without compensation, but shall be reimbursed for the 
     expenses of the member incurred in the performance of duties 
     for the Board.
       (c) Powers and Duties of Board.--The order shall define the 
     powers and duties of the Board, which shall include the power 
     and duty--
       (1) to administer the order in accordance with the terms 
     and provisions of the order;
       (2) to make regulations to effectuate the terms and 
     provisions of the order;
       (3) to appoint members of the Board to serve on an 
     executive committee;
       (4) to propose, receive, evaluate, and approve budgets, 
     plans, and projects of promotion, research, consumer 
     information, and industry information, and to contract with 
     appropriate persons to implement the plans or projects;
       (5) to accept and receive voluntary contributions, gifts, 
     and market promotion or similar funds;
       (6) to invest, pending disbursement under a plan or 
     project, funds collected through assessments authorized under 
     subsection (f), only in--
       (A) obligations of the United States or an agency of the 
     United States;
       (B) general obligations of a State or a political 
     subdivision of a State;
       (C) an interest-bearing account or certificate of deposit 
     of a bank that is a member of the Federal Reserve System; or
       (D) obligations fully guaranteed as to principal and 
     interest by the United States;
       (7) to receive, investigate, and report to the Secretary 
     complaints of violations of the order; and
       (8) to recommend to the Secretary amendments to the order.
       (d) Plans and Budgets.--
       (1) In general.--The order shall provide that the Board 
     shall submit to the Secretary for approval any plan or 
     project of promotion, research, consumer information, or 
     industry information.
       (2) Budgets.--The order shall require the Board to submit 
     to the Secretary for approval budgets on a fiscal year basis 
     of the anticipated expenses and disbursements of the Board in 
     the implementation of the order, including projected costs of 
     plans and projects of promotion, research, consumer 
     information, and industry information.
       (e) Contracts and Agreements.--
       (1) In general.--The order shall provide that the Board may 
     enter into contracts or agreements for the implementation and 
     carrying out of plans or projects of promotion, research, 
     consumer information, or industry information, including 
     contracts with a processor organization, and for the payment 
     of the cost of the plans or projects with funds collected by 
     the Board under the order.
       (2) Requirements.--A contract or agreement under paragraph 
     (1) shall provide that--
       (A) the contracting party shall develop and submit to the 
     Board a plan or project, together with a budget that shows 
     the estimated costs to be incurred for the plan or project;
       (B) the plan or project shall become effective on the 
     approval of the Secretary; and
       (C) the contracting party shall keep accurate records of 
     each transaction of the party, account for funds received and 
     expended, make periodic reports to the Board of activities 
     conducted, and make such other reports as the Board or the 
     Secretary may require.
       (3) Processor organizations.--The order shall provide that 
     the Board may contract with processor organizations for any 
     other services. The contract shall include provisions 
     comparable to the provisions required by paragraph (2).
       (f) Assessments.--
       (1) Processors.--The order shall provide that each 
     processor marketing popcorn in the United States or for 
     export shall, in the manner prescribed in the order, pay 
     assessments and remit the assessments to the Board.
       (2) Direct marketers.--A processor that markets popcorn 
     produced by the processor directly to consumers shall pay and 
     remit the assessments on the popcorn directly to the Board in 
     the manner prescribed in the order.
       (3) Rate.--
       (A) In general.--The rate of assessment prescribed in the 
     order shall be a rate established by the Board but not more 
     than $.08 per hundredweight of popcorn.
       (B) Adjustment of rate.--The order shall provide that the 
     Board, with the approval of the Secretary, may raise or lower 
     the rate of assessment annually up to a maximum of $.08 per 
     hundredweight of popcorn.
       (4) Use of assessments.--
       (A) In general.--Subject to subparagraphs (B) and (C) and 
     subsection (c)(5), the order shall provide that the 
     assessments collected shall be used by the Board--
     
[[Page S1254]]

       (i) to pay expenses incurred in implementing and 
     administering the order, with provision for a reasonable 
     reserve; and
       (ii) to cover such administrative costs as are incurred by 
     the Secretary, except that the administrative costs incurred 
     by the Secretary (other than any legal expenses incurred to 
     defend and enforce the order) that may be reimbursed by the 
     Board may not exceed 15 percent of the projected annual 
     revenues of the Board.
       (B) Expenditures based on source of assessments.--In 
     implementing plans and projects of promotion, research, 
     consumer information, and industry information, the Board 
     shall expend funds on--
       (i) plans and projects for popcorn marketed in the United 
     States or Canada in proportion to the amount of assessments 
     collected on domestically marketed popcorn; and
       (ii) plans and projects for exported popcorn in proportion 
     to the amount of assessments collected on exported popcorn.
       (C) Notification.--If the administrative costs incurred by 
     the Secretary that are reimbursed by the Board exceed 10 
     percent of the projected annual revenues of the Board, the 
     Secretary shall notify as soon as practicable the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (g) Prohibition on Use of Funds.--The order shall prohibit 
     any funds collected by the Board under the order from being 
     used to influence government action or policy, other than the 
     use of funds by the Board for the development and 
     recommendation to the Secretary of amendments to the order.
       (h) Books and Records of the Board.--The order shall 
     require the Board to--
       (1) maintain such books and records (which shall be 
     available to the Secretary for inspection and audit) as the 
     Secretary may prescribe;
       (2) prepare and submit to the Secretary, from time to time, 
     such reports as the Secretary may prescribe; and
       (3) account for the receipt and disbursement of all funds 
     entrusted to the Board.
       (i) Books and Records of Processors.--
       (1) Maintenance and reporting of information.--The order 
     shall require that each processor of popcorn for the market 
     shall--
       (A) maintain, and make available for inspection, such books 
     and records as are required by the order; and
       (B) file reports at such time, in such manner, and having 
     such content as is prescribed in the order.
       (2) Use of information.--The Secretary shall authorize the 
     use of information regarding processors that may be 
     accumulated under a law or regulation other than this 
     subtitle or a regulation issued under this subtitle. The 
     information shall be made available to the Secretary as 
     appropriate for the administration or enforcement of this 
     subtitle, the order, or any regulation issued under this 
     subtitle.
       (3) Confidentiality.--
       (A) In general.--Subject to subparagraphs (B), (C), and 
     (D), all information obtained by the Secretary under 
     paragraphs (1) and (2) shall be kept confidential by all 
     officers, employees, and agents of the Board and the 
     Department.
       (B) Disclosure by secretary.--Information referred to in 
     subparagraph (A) may be disclosed if--
       (i) the Secretary considers the information relevant;
       (ii) the information is revealed in a suit or 
     administrative hearing brought at the request of the 
     Secretary, or to which the Secretary or any officer of the 
     United States is a party; and
       (iii) the information relates to the order.
       (C) Disclosure to other agency of federal government.--
       (i) In general.--No information obtained under the 
     authority of this subtitle may be made available to another 
     agency or officer of the Federal Government for any purpose 
     other than the implementation of this subtitle and any 
     investigatory or enforcement activity necessary for the 
     implementation of this subtitle.
       (ii) Penalty.--A person who knowingly violates this 
     subparagraph shall, on conviction, be subject to a fine of 
     not more than $1,000 or to imprisonment for not more than 1 
     year, or both, and if an officer, employee, or agent of the 
     Board or the Department, shall be removed from office or 
     terminated from employment, as applicable.
       (D) General statements.--Nothing in this paragraph 
     prohibits--
       (i) the issuance of general statements, based on the 
     reports, of the number of persons subject to the order or 
     statistical data collected from the reports, if the 
     statements do not identify the information provided by any 
     person; or
       (ii) the publication, by direction of the Secretary, of the 
     name of a person violating the order, together with a 
     statement of the particular provisions of the order violated 
     by the person.
       (j) Other Terms and Conditions.--The order shall contain 
     such terms and conditions, consistent with this subtitle, as 
     are necessary to effectuate this subtitle, including 
     regulations relating to the assessment of late payment 
     charges.

     SEC. 906. REFERENDA.

       (a) Initial Referendum.--
       (1) In general.--Within the 60-day period immediately 
     preceding the effective date of an order, as provided in 
     section 904(b)(3), the Secretary shall conduct a referendum 
     among processors who, during a representative period as 
     determined by the Secretary, have been engaged in processing, 
     for the purpose of ascertaining whether the order shall go 
     into effect.
       (2) Approval of order.--The order shall become effective, 
     as provided in section 904(b), only if the Secretary 
     determines that the order has been approved by not less than 
     a majority of the processors voting in the referendum and if 
     the majority processed more than 50 percent of the popcorn 
     certified as having been processed, during the representative 
     period, by the processors voting.
       (b) Additional Referenda.--
       (1) In general.--Not earlier than 3 years after the 
     effective date of an order approved under subsection (a), on 
     the request of the Board or a representative group of 
     processors, as described in paragraph (2), the Secretary may 
     conduct additional referenda to determine whether processors 
     favor the termination or suspension of the order.
       (2) Representative group of processors.--An additional 
     referendum on an order shall be conducted if the referendum 
     is requested by 30 percent or more of the number of 
     processors who, during a representative period as determined 
     by the Secretary, have been engaged in processing.
       (3) Disapproval of order.--If the Secretary determines, in 
     a referendum conducted under paragraph (1), that suspension 
     or termination of the order is favored by at least \2/3\ of 
     the processors voting in the referendum, the Secretary 
     shall--
       (A) suspend or terminate, as appropriate, collection of 
     assessments under the order not later than 180 days after the 
     date of determination; and
       (B) suspend or terminate the order, as appropriate, in an 
     orderly manner as soon as practicable after the date of 
     determination.
       (c) Costs of Referendum.--The Secretary shall be reimbursed 
     from assessments collected by the Board for any expenses 
     incurred by the Secretary in connection with the conduct of 
     any referendum under this section.
       (d) Method of Conducting Referendum.--Subject to this 
     section, a referendum conducted under this section shall be 
     conducted in such manner as is determined by the Secretary.
       (e) Confidentiality of Ballots and Other Information.--
       (1) In general.--The ballots and other information or 
     reports that reveal or tend to reveal the vote of any 
     processor, or any business operation of a processor, shall be 
     considered to be strictly confidential and shall not be 
     disclosed.
       (2) Penalty for violations.--An officer or employee of the 
     Department who knowingly violates paragraph (1) shall be 
     subject to the penalties described in section 
     905(i)(3)(C)(ii).

     SEC. 907. PETITION AND REVIEW.

       (a) Petition.--
       (1) In general.--A person subject to an order may file with 
     the Secretary a petition--
       (A) stating that the order, a provision of the order, or an 
     obligation imposed in connection with the order is not 
     established in accordance with law; and
       (B) requesting a modification of the order or obligation or 
     an exemption from the order or obligation.
       (2) Statute of limitations.--A petition under paragraph (1) 
     concerning an obligation may be filed not later than 2 years 
     after the date of imposition of the obligation.
       (3) Hearings.--The petitioner shall be given the 
     opportunity for a hearing on a petition filed under paragraph 
     (1), in accordance with regulations issued by the Secretary.
       (4) Ruling.--After a hearing under paragraph (3), the 
     Secretary shall issue a ruling on the petition that is the 
     subject of the hearing, which shall be final if the ruling is 
     in accordance with applicable law.
       (b) Review.--
       (1) Commencement of action.--The district court of the 
     United States for any district in which a person who is a 
     petitioner under subsection (a) resides or carries on 
     business shall have jurisdiction to review a ruling on the 
     petition, if the person files a complaint not later than 20 
     days after the date of issuance of the ruling under 
     subsection (a)(4).
       (2) Process.--Service of process in a proceeding under 
     paragraph (1) may be made on the Secretary by delivering a 
     copy of the complaint to the Secretary.
       (3) Remands.--If the court determines, under paragraph (1), 
     that a ruling issued under subsection (a)(4) is not in 
     accordance with applicable law, the court shall remand the 
     matter to the Secretary with directions--
       (A) to make such ruling as the court shall determine to be 
     in accordance with law; or
       (B) to take such further proceedings as, in the opinion of 
     the court, the law requires.
       (c) Enforcement.--The pendency of proceedings instituted 
     under subsection (a) may not impede, hinder, or delay the 
     Secretary or the Attorney General from taking action under 
     section 908.

     SEC. 908. ENFORCEMENT.

       (a) In General.--The Secretary may issue an enforcement 
     order to restrain or prevent any person from violating an 
     order or regulation issued under this subtitle and may assess 
     a civil penalty of not more than $1,000 for each violation of 
     the enforcement order, after an opportunity for an 
     administrative hearing, if the Secretary determines that the 
     administration and enforcement of the order and this subtitle 
     would be adequately served by such a procedure. 
     
[[Page S1255]]

       (b) Jurisdiction.--The district courts of the United States 
     are vested with jurisdiction specifically to enforce, and to 
     prevent and restrain any person from violating, an order or 
     regulation issued under this subtitle.
       (c) Referral to Attorney General.--A civil action 
     authorized to be brought under this section shall be referred 
     to the Attorney General for appropriate action.

     SEC. 909. INVESTIGATIONS AND POWER TO SUBPOENA.

       (a) Investigations.--The Secretary may make such 
     investigations as the Secretary considers necessary--
       (1) for the effective administration of this subtitle; and
       (2) to determine whether any person subject to this 
     subtitle has engaged, or is about to engage, in an act that 
     constitutes or will constitute a violation of this subtitle 
     or of an order or regulation issued under this subtitle.
       (b) Oaths, Affirmations, and Subpoenas.--For the purpose of 
     an investigation under subsection (a), the Secretary may 
     administer oaths and affirmations, subpoena witnesses, compel 
     the attendance of witnesses, take evidence, and require the 
     production of any records that are relevant to the inquiry. 
     The attendance of witnesses and the production of records may 
     be required from any place in the United States.
       (c) Aid of Courts.--
       (1) Request.--In the case of contumacy by, or refusal to 
     obey a subpoena issued to, any person, the Secretary may 
     request the aid of any court of the United States within the 
     jurisdiction of which the investigation or proceeding is 
     carried on, or where the person resides or carries on 
     business, in requiring the attendance and testimony of the 
     person and the production of records.
       (2) Enforcement order of the court.--The court may issue an 
     enforcement order requiring the person to appear before the 
     Secretary to produce records or to give testimony concerning 
     the matter under investigation.
       (3) Contempt.--A failure to obey an enforcement order of 
     the court under paragraph (2) may be punished by the court as 
     a contempt of the court.
       (4) Process.--Process in a case under this subsection may 
     be served in the judicial district in which the person 
     resides or conducts business or wherever the person may be 
     found.

     SEC. 910. RELATION TO OTHER PROGRAMS.

       Nothing in this subtitle preempts or supersedes any other 
     program relating to popcorn promotion organized and operated 
     under the laws of the United States or any State.

     SEC. 911. REGULATIONS.

       The Secretary may issue such regulations as are necessary 
     to carry out this subtitle.

     SEC. 912. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this subtitle. Amounts made available 
     under this section or otherwise made available to the 
     Department, and amounts made available under any other 
     marketing or promotion order, may not be used to pay any 
     administrative expense of the Board.
                    Subtitle B--Canola and Rapeseed

     SEC. 921. SHORT TITLE.

       This subtitle may be cited as the ``Canola and Rapeseed 
     Research, Promotion, and Consumer Information Act''.

     SEC. 922. FINDINGS AND DECLARATION OF POLICY.

       (a) Findings.--Congress finds that--
       (1) canola and rapeseed products are an important and 
     nutritious part of the human diet;
       (2) the production of canola and rapeseed products plays a 
     significant role in the economy of the United States in that 
     canola and rapeseed products are produced by thousands of 
     canola and rapeseed producers, processed by numerous 
     processing entities, and canola and rapeseed products 
     produced in the United States are consumed by people 
     throughout the United States and foreign countries;
       (3) canola, rapeseed, and canola and rapeseed products 
     should be readily available and marketed efficiently to 
     ensure that consumers have an adequate supply of canola and 
     rapeseed products at a reasonable price;
       (4) the maintenance and expansion of existing markets and 
     development of new markets for canola, rapeseed, and canola 
     and rapeseed products are vital to the welfare of canola and 
     rapeseed producers and processors and those persons concerned 
     with marketing canola, rapeseed, and canola and rapeseed 
     products, as well as to the general economy of the United 
     States, and are necessary to ensure the ready availability 
     and efficient marketing of canola, rapeseed, and canola and 
     rapeseed products;
       (5) there exist established State and national 
     organizations conducting canola and rapeseed research, 
     promotion, and consumer education programs that are valuable 
     to the efforts of promoting the consumption of canola, 
     rapeseed, and canola and rapeseed products;
       (6) the cooperative development, financing, and 
     implementation of a coordinated national program of canola 
     and rapeseed research, promotion, consumer information, and 
     industry information is necessary to maintain and expand 
     existing markets and develop new markets for canola, 
     rapeseed, and canola and rapeseed products; and
       (7) canola, rapeseed, and canola and rapeseed products move 
     in interstate and foreign commerce, and canola, rapeseed, and 
     canola and rapeseed products that do not move in interstate 
     or foreign commerce directly burden or affect interstate 
     commerce in canola, rapeseed, and canola and rapeseed 
     products.
       (b) Policy.--It is the policy of this subtitle to establish 
     an orderly procedure for developing, financing through 
     assessments on domestically-produced canola and rapeseed, and 
     implementing a program of research, promotion, consumer 
     information, and industry information designed to strengthen 
     the position in the marketplace of the canola and rapeseed 
     industry, to maintain and expand existing domestic and 
     foreign markets and uses for canola, rapeseed, and canola and 
     rapeseed products, and to develop new markets and uses for 
     canola, rapeseed, and canola and rapeseed products.
       (c) Construction.--Nothing in this subtitle provides for 
     the control of production or otherwise limits the right of 
     individual producers to produce canola, rapeseed, or canola 
     or rapeseed products.

     SEC. 923. DEFINITIONS.

       In this subtitle (unless the context otherwise requires):
       (1) Board.--The term ``Board'' means the National Canola 
     and Rapeseed Board established under section 925(b).
       (2) Canola; rapeseed.--The terms ``canola'' and 
     ``rapeseed'' means any brassica plant grown in the United 
     States for the production of an oilseed, the oil of which is 
     used for a food or nonfood use.
       (3) Canola or rapeseed products.--The term ``canola or 
     rapeseed products'' means products produced, in whole or in 
     part, from canola or rapeseed.
       (4) Commerce.--The term ``commerce'' includes interstate, 
     foreign, and intrastate commerce.
       (5) Conflict of interest.--The term ``conflict of 
     interest'' means a situation in which a member of the Board 
     has a direct or indirect financial interest in a corporation, 
     partnership, sole proprietorship, joint venture, or other 
     business entity dealing directly or indirectly with the 
     Board.
       (6) Consumer information.--The term ``consumer 
     information'' means information that will assist consumers 
     and other persons in making evaluations and decisions 
     regarding the purchase, preparation, and use of canola, 
     rapeseed, or canola or rapeseed products.
       (7) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (8) First purchaser.--The term ``first purchaser'' means--
       (A) except as provided in subparagraph (B), a person buying 
     or otherwise acquiring canola, rapeseed, or canola or 
     rapeseed products produced by a producer; or
       (B) the Commodity Credit Corporation, in a case in which 
     canola or rapeseed is forfeited to the Commodity Credit 
     Corporation as collateral for a loan issued under a price 
     support loan program administered by the Commodity Credit 
     Corporation.
       (9) Industry information.--The term ``industry 
     information'' means information or programs that will lead to 
     the development of new markets, new marketing strategies, or 
     increased efficiency for the canola and rapeseed industry, or 
     an activity to enhance the image of the canola or rapeseed 
     industry.
       (10) Industry member.--The term ``industry member'' means a 
     member of the canola and rapeseed industry who represents--
       (A) manufacturers of canola or rapeseed products; or
       (B) persons who commercially buy or sell canola or 
     rapeseed.
       (11) Marketing.--The term ``marketing'' means the sale or 
     other disposition of canola, rapeseed, or canola or rapeseed 
     products in a channel of commerce.
       (12) Order.--The term ``order'' means an order issued under 
     section 924.
       (13) Person.--The term ``person'' means an individual, 
     partnership, corporation, association, cooperative, or any 
     other legal entity.
       (14) Producer.--The term ``producer'' means a person 
     engaged in the growing of canola or rapeseed in the United 
     States who owns, or who shares the ownership and risk of loss 
     of, the canola or rapeseed.
       (15) Promotion.--The term ``promotion'' means an action, 
     including paid advertising, technical assistance, or trade 
     servicing activity, to enhance the image or desirability of 
     canola, rapeseed, or canola or rapeseed products in domestic 
     and foreign markets, or an activity designed to communicate 
     to consumers, processors, wholesalers, retailers, government 
     officials, or others information relating to the positive 
     attributes of canola, rapeseed, or canola or rapeseed 
     products or the benefits of use or distribution of canola, 
     rapeseed, or canola or rapeseed products.
       (16) Qualified state canola and rapeseed board.--The term 
     ``qualified State canola and rapeseed board'' means a State 
     canola and rapeseed promotion entity that is authorized and 
     functioning under State law.
       (17) Research.--The term ``research'' means any type of 
     test, study, or analysis to advance the image, desirability, 
     marketability, production, product development, quality, or 
     functional or nutritional value of canola, rapeseed, or 
     canola or rapeseed products, including research activity 
     designed to identify and analyze barriers to export sales of 
     canola or rapeseed produced in the United States.
       (18) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (19) State.--The term ``State'' means any of the 50 States, 
     the District of Columbia and the Commonwealth of Puerto Rico. 

     
[[Page S1256]]

       (20) United states.--The term ``United States'' means 
     collectively the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.

     SEC. 924. ISSUANCE AND AMENDMENT OF ORDERS.

       (a) In General.--Subject to subsection (b), the Secretary 
     shall issue 1 or more orders under this subtitle applicable 
     to producers and first purchasers of canola, rapeseed, or 
     canola or rapeseed products. The order shall be national in 
     scope. Not more than 1 order shall be in effect under this 
     subtitle at any 1 time.
       (b) Procedure.--
       (1) Proposal or request for issuance.--The Secretary may 
     propose the issuance of an order under this subtitle, or an 
     association of canola and rapeseed producers or any other 
     person that would be affected by an order issued pursuant to 
     this subtitle may request the issuance of, and submit a 
     proposal for, an order.
       (2) Notice and comment concerning proposed order.--Not 
     later than 60 days after the receipt of a request and 
     proposal for an order pursuant to paragraph (1), or whenever 
     the Secretary determines to propose an order, the Secretary 
     shall publish a proposed order and give due notice and 
     opportunity for public comment on the proposed order.
       (3) Issuance of order.--After notice and opportunity for 
     public comment are given as provided in paragraph (2), the 
     Secretary shall issue an order, taking into consideration the 
     comments received and including in the order provisions 
     necessary to ensure that the order is in conformity with the 
     requirements of this subtitle. The order shall be issued and 
     become effective not later than 180 days following 
     publication of the proposed order.
       (c) Amendments.--The Secretary, from time to time, may 
     amend an order issued under this section.

     SEC. 925. REQUIRED TERMS IN ORDERS.

       (a) In General.--An order issued under this subtitle shall 
     contain the terms and conditions specified in this section.
       (b) Establishment and Membership of the National Canola and 
     Rapeseed Board.--
       (1) In general.--The order shall provide for the 
     establishment of, and appointment of members to, a National 
     Canola and Rapeseed Board to administer the order.
       (2) Service to entire industry.--The Board shall carry out 
     programs and projects that will provide maximum benefit to 
     the canola and rapeseed industry in all parts of the United 
     States and only promote canola, rapeseed, or canola or 
     rapeseed products.
       (3) Board membership.--The Board shall consist of 15 
     members, including--
       (A) 11 members who are producers, including--
       (i) 1 member from each of 6 geographic regions comprised of 
     States where canola or rapeseed is produced, as determined by 
     the Secretary; and
       (ii) 5 members from the geographic regions referred to in 
     clause (i), allocated according to the production in each 
     region; and
       (B) 4 members who are industry members, including at 
     least--
       (i) 1 member who represents manufacturers of canola or 
     rapeseed end products; and
       (ii) 1 member who represents persons who commercially buy 
     or sell canola or rapeseed.
       (4) Limitation on state residence.--There shall be no more 
     than 4 producer members of the Board from any State.
       (5) Modifying board membership.--In accordance with 
     regulations approved by the Secretary, at least once each 3 
     years and not more than once each 2 years, the Board shall 
     review the geographic distribution of canola and rapeseed 
     production throughout the United States and, if warranted, 
     recommend to the Secretary that the Secretary--
       (A) reapportion regions in order to reflect the geographic 
     distribution of canola and rapeseed production; and
       (B) reapportion the seats on the Board to reflect the 
     production in each region.
       (6) Certification of organizations.--
       (A) In general.--The eligibility of any State organization 
     to represent producers shall be certified by the Secretary.
       (B) Criteria.--The Secretary shall certify any State 
     organization that the Secretary determines has a history of 
     stability and permanency and meets at least 1 of the 
     following criteria:
       (i) Majority representation.--The total paid membership of 
     the organization--

       (I) is comprised of at least a majority of canola or 
     rapeseed producers; or
       (II) represents at least a majority of the canola or 
     rapeseed producers in the State.

       (ii) Substantial number of producers represented.--The 
     organization represents a substantial number of producers 
     that produce a substantial quantity of canola or rapeseed in 
     the State.
       (iii) Purpose.--The organization is a general farm or 
     agricultural organization that has as a stated objective the 
     promotion and development of the United States canola or 
     rapeseed industry and the economic welfare of United States 
     canola or rapeseed producers.
       (C) Report.--The Secretary shall make a certification under 
     this paragraph on the basis of a factual report submitted by 
     the State organization.
       (7) Terms of office.--
       (A) In general.--The members of the Board shall serve for a 
     term of 3 years, except that the members appointed to the 
     initial Board shall serve, proportionately, for terms of 1, 
     2, and 3 years, as determined by the Secretary.
       (B) Termination of terms.--Notwithstanding subparagraph 
     (C), each member shall continue to serve until a successor is 
     appointed by the Secretary.
       (C) Limitation on terms.--No individual may serve more than 
     2 consecutive 3-year terms as a member.
       (8) Compensation.--A member of the Board shall serve 
     without compensation, but shall be reimbursed for necessary 
     and reasonable expenses incurred in the performance of duties 
     for and approved by the Board.
       (c) Powers and Duties of the Board.--The order shall define 
     the powers and duties of the Board, which shall include the 
     power and duty--
       (1) to administer the order in accordance with the terms 
     and conditions of the order;
       (2) to make regulations to effectuate the terms and 
     conditions of the order;
       (3) to meet, organize, and select from among members of the 
     Board a chairperson, other officers, and committees and 
     subcommittees, as the Board determines appropriate;
       (4) to establish working committees of persons other than 
     Board members;
       (5) to employ such persons, other than Board members, as 
     the Board considers necessary, and to determine the 
     compensation and define the duties of the persons;
       (6) to prepare and submit for the approval of the 
     Secretary, when appropriate or necessary, a recommended rate 
     of assessment under section 926, and a fiscal period budget 
     of the anticipated expenses in the administration of the 
     order, including the probable costs of all programs and 
     projects;
       (7) to develop programs and projects, subject to subsection 
     (d);
       (8) to enter into contracts or agreements, subject to 
     subsection (e), to develop and carry out programs or projects 
     of research, promotion, industry information, and consumer 
     information;
       (9) to carry out research, promotion, industry information, 
     and consumer information projects, and to pay the costs of 
     the projects with assessments collected under section 926;
       (10) to keep minutes, books, and records that reflect the 
     actions and transactions of the Board, and promptly report 
     minutes of each Board meeting to the Secretary;
       (11) to appoint and convene, from time to time, working 
     committees comprised of producers, industry members, and the 
     public to assist in the development of research, promotion, 
     industry information, and consumer information programs for 
     canola, rapeseed, and canola and rapeseed products;
       (12) to invest, pending disbursement under a program or 
     project, funds collected through assessments authorized under 
     section 926, or funds earned from investments, only in--
       (A) obligations of the United States or an agency of the 
     United States;
       (B) general obligations of a State or a political 
     subdivision of a State;
       (C) an interest-bearing account or certificate of deposit 
     of a bank that is a member of the Federal Reserve System; or
       (D) obligations fully guaranteed as to principal and 
     interest by the United States;
       (13) to receive, investigate, and report to the Secretary 
     complaints of violations of the order;
       (14) to furnish the Secretary with such information as the 
     Secretary may request;
       (15) to recommend to the Secretary amendments to the order;
       (16) to develop and recommend to the Secretary for approval 
     such regulations as may be necessary for the development and 
     execution of programs or projects, or as may otherwise be 
     necessary, to carry out the order; and
       (17) to provide the Secretary with advance notice of 
     meetings.
       (d) Programs and Budgets.--
       (1) Submission to secretary.--The order shall provide that 
     the Board shall submit to the Secretary for approval any 
     program or project of research, promotion, consumer 
     information, or industry information. No program or project 
     shall be implemented prior to approval by the Secretary.
       (2) Budgets.--The order shall require the Board, prior to 
     the beginning of each fiscal year, or as may be necessary 
     after the beginning of a fiscal year, to submit to the 
     Secretary for approval budgets of anticipated expenses and 
     disbursements in the implementation of the order, including 
     projected costs of research, promotion, consumer information, 
     and industry information programs and projects.
       (3) Incurring expenses.--The Board may incur such expenses 
     for programs or projects of research, promotion, consumer 
     information, or industry information, and other expenses for 
     the administration, maintenance, and functioning of the Board 
     as may be authorized by the Secretary, including any 
     implementation, administrative, and referendum costs incurred 
     by the Department.
       (4) Paying expenses.--The funds to cover the expenses 
     referred to in paragraph (3) shall be paid by the Board from 
     assessments collected under section 926 or funds borrowed 
     pursuant to paragraph (5).
       (5) Authority to borrow.--To meet the expenses referred to 
     in paragraph (3), the Board shall have the authority to 
     borrow funds, as approved by the Secretary, for capital 
     outlays and startup costs.
       (e) Contracts and Agreements.--
       (1) In general.--To ensure efficient use of funds, the 
     order shall provide that the Board may enter into a contract 
     or agreement for 

[[Page S1257]]
     the implementation and carrying out of a program or project of canola, 
     rapeseed, or canola or rapeseed products research, promotion, 
     consumer information, or industry information, including a 
     contract with a producer organization, and for the payment of 
     the costs with funds received by the Board under the order.
       (2) Requirements.--A contract or agreement under paragraph 
     (1) shall provide that--
       (A) the contracting party shall develop and submit to the 
     Board a program or project together with a budget that shall 
     show the estimated costs to be incurred for the program or 
     project;
       (B) the program or project shall become effective on the 
     approval of the Secretary; and
       (C) the contracting party shall keep accurate records of 
     all transactions, account for funds received and expended, 
     make periodic reports to the Board of activities conducted, 
     and make such other reports as the Board or the Secretary may 
     require.
       (3) Producer organizations.--The order shall provide that 
     the Board may contract with producer organizations for any 
     other services. The contract shall include provisions 
     comparable to those required by paragraph (2).
       (f) Books and Records of the Board.--
       (1) In general.--The order shall require the Board to--
       (A) maintain such books and records (which shall be 
     available to the Secretary for inspection and audit) as the 
     Secretary may prescribe;
       (B) prepare and submit to the Secretary, from time to time, 
     such reports as the Secretary may prescribe; and
       (C) account for the receipt and disbursement of all funds 
     entrusted to the Board.
       (2) Audits.--The Board shall cause the books and records of 
     the Board to be audited by an independent auditor at the end 
     of each fiscal year, and a report of the audit to be 
     submitted to the Secretary.
       (g) Prohibition.--
       (1) In general.--Subject to paragraph (2), the Board shall 
     not engage in any action to, nor shall any funds received by 
     the Board under this subtitle be used to--
       (A) influence legislation or governmental action;
       (B) engage in an action that would be a conflict of 
     interest;
       (C) engage in advertising that is false or misleading; or
       (D) engage in promotion that would disparage other 
     commodities.
       (2) Action permitted.--Paragraph (1) does not preclude--
       (A) the development and recommendation of amendments to the 
     order;
       (B) the communication to appropriate government officials 
     of information relating to the conduct, implementation, or 
     results of promotion, research, consumer information, or 
     industry information activities under the order; or
       (C) any action designed to market canola or rapeseed 
     products directly to a foreign government or political 
     subdivision of a foreign government.
       (h) Books and Records.--
       (1) In general.--The order shall require that each 
     producer, first purchaser, or industry member shall--
       (A) maintain and submit to the Board any reports considered 
     necessary by the Secretary to ensure compliance with this 
     subtitle; and
       (B) make available during normal business hours, for 
     inspection by employees of the Board or Secretary, such books 
     and records as are necessary to carry out this subtitle, 
     including such records as are necessary to verify any 
     required reports.
       (2) Confidentiality.--
       (A) In general.--Except as otherwise provided in this 
     subtitle, all information obtained from books, records, or 
     reports required to be maintained under paragraph (1) shall 
     be kept confidential, and shall not be disclosed to the 
     public by any person.
       (B) Disclosure.--Information referred to in subparagraph 
     (A) may be disclosed to the public if--
       (i) the Secretary considers the information relevant;
       (ii) the information is revealed in a suit or 
     administrative hearing brought at the direction or on the 
     request of the Secretary or to which the Secretary or any 
     officer of the Department is a party; and
       (iii) the information relates to this subtitle.
       (C) Misconduct.--A knowing disclosure of confidential 
     information in violation of subparagraph (A) by an officer or 
     employee of the Board or Department, except as required by 
     other law or allowed under subparagraph (B) or (D), shall be 
     considered a violation of this subtitle.
       (D) General statements.--Nothing in this paragraph 
     prohibits--
       (i) the issuance of general statements, based on the 
     reports, of the number of persons subject to the order or 
     statistical data collected from the reports, if the 
     statements do not identify the information furnished by any 
     person; or
       (ii) the publication, by direction of the Secretary, of the 
     name of a person violating the order, together with a 
     statement of the particular provisions of the order violated 
     by the person.
       (3) Availability of information.--
       (A) Exception.--Except as provided in this subtitle, 
     information obtained under this subtitle may be made 
     available to another agency of the Federal Government for a 
     civil or criminal law enforcement activity if the activity is 
     authorized by law and if the head of the agency has made a 
     written request to the Secretary specifying the particular 
     information desired and the law enforcement activity for 
     which the information is sought.
       (B) Penalty.--Any person knowingly violating this 
     subsection, on conviction, shall be subject to a fine of not 
     more than $1,000 or to imprisonment for not more than 1 year, 
     or both, and if an officer or employee of the Board or the 
     Department, shall be removed from office or terminated from 
     employment, as applicable.
       (5) Withholding information.--Nothing in this subtitle 
     authorizes withholding information from Congress.
       (i) Use of Assessments.--The order shall provide that the 
     assessments collected under section 926 shall be used for 
     payment of the expenses in implementing and administering 
     this subtitle, with provision for a reasonable reserve, and 
     to cover those administrative costs incurred by the Secretary 
     in implementing and administering this subtitle.
       (j) Other Terms and Conditions.--The order also shall 
     contain such terms and conditions, not inconsistent with this 
     subtitle, as determined necessary by the Secretary to 
     effectuate this subtitle.

     SEC. 926. ASSESSMENTS.

       (a) In General.--
       (1) First purchasers.--During the effective period of an 
     order issued pursuant to this subtitle, assessments shall 
     be--
       (A) levied on all canola or rapeseed produced in the United 
     States and marketed; and
       (B) deducted from the payment made to a producer for all 
     canola or rapeseed sold to a first purchaser.
       (2) Direct processing.--The order shall provide that any 
     person processing canola or rapeseed of that person's own 
     production and marketing the canola or rapeseed, or canola or 
     rapeseed products, shall remit to the Board or a qualified 
     State canola and rapeseed board, in the manner prescribed by 
     the order, an assessment established at a rate equivalent to 
     the rate provided for under subsection (d).
       (b) Limitation on Assessments.--No more than 1 assessment 
     may be assessed under subsection (a) on any canola or 
     rapeseed produced (as remitted by a first purchaser).
       (c) Remitting Assessments.--
       (1) In general.--Assessments required under subsection (a) 
     shall be remitted to the Board by a first purchaser. The 
     Board shall use qualified State canola and rapeseed boards to 
     collect the assessments. If an appropriate qualified State 
     canola and rapeseed board does not exist to collect an 
     assessment, the assessment shall be collected by the Board. 
     There shall be only 1 qualified State canola or rapeseed 
     Board in each State.
       (2) Times to remit assessment.--Each first purchaser shall 
     remit the assessment to the Board as provided for in the 
     order.
       (d) Assessment Rate.--
       (1) Initial rate.--The initial assessment rate shall be 4 
     cents per hundredweight of canola or rapeseed produced and 
     marketed.
       (2) Increase.--The assessment rate may be increased on 
     recommendation by the Board to a rate not exceeding 10 cents 
     per hundredweight of canola or rapeseed produced and marketed 
     in a State, unless--
       (A) after the initial referendum is held under section 
     927(a), the Board recommends an increase above 10 cents per 
     hundredweight; and
       (B) the increase is approved in a referendum under section 
     927(b).
       (3) Credit.--A producer who demonstrates to the Board that 
     the producer is participating in a program of an established 
     qualified State canola and rapeseed board shall receive 
     credit, in determining the assessment due from the producer, 
     for contributions to the program of up to 2 cents per 
     hundredweight of canola or rapeseed marketed.
       (e) Late Payment Charge.--
       (1) In general.--There shall be a late payment charge 
     imposed on any person who fails to remit, on or before the 
     date provided for in the order, to the Board the total amount 
     for which the person is liable.
       (2) Amount of charge.--The amount of the late payment 
     charge imposed under paragraph (1) shall be prescribed by the 
     Board with the approval of the Secretary.
       (f) Refund of Assessments From Escrow Account.--
       (1) Establishment of escrow account.--During the period 
     beginning on the date on which an order is first issued under 
     section 924(b)(3) and ending on the date on which a 
     referendum is conducted under section 927(a), the Board 
     shall--
       (A) establish an escrow account to be used for assessment 
     refunds; and
       (B) place funds in such account in accordance with 
     paragraph (2).
       (2) Placement of funds in account.--The Board shall place 
     in such account, from assessments collected during the period 
     referred to in paragraph (1), an amount equal to the product 
     obtained by multiplying the total amount of assessments 
     collected during the period by 10 percent.
       (3) Right to receive refund.--The Board shall refund to a 
     producer the assessments paid by or on behalf of the producer 
     if--
       (A) the producer is required to pay the assessment;
       (B) the producer does not support the program established 
     under this subtitle; and
     
[[Page S1258]]

       (C) the producer demands the refund prior to the conduct of 
     the referendum under section 927(a).
       (4) Form of demand.--The demand shall be made in accordance 
     with such regulations, in such form, and within such time 
     period as prescribed by the Board.
       (5) Making of refund.--The refund shall be made on 
     submission of proof satisfactory to the Board that the 
     producer paid the assessment for which the refund is 
     demanded.
       (6) Proration.--If--
       (A) the amount in the escrow account required by paragraph 
     (1) is not sufficient to refund the total amount of 
     assessments demanded by eligible producers; and
       (B) the order is not approved pursuant to the referendum 
     conducted under section 927(a);
     the Board shall prorate the amount of the refunds among all 
     eligible producers who demand a refund.
       (7) Program approved.--If the plan is approved pursuant to 
     the referendum conducted under section 927(a), all funds in 
     the escrow account shall be returned to the Board for use by 
     the Board in accordance with this subtitle.

     SEC. 927. REFERENDA.

       (a) Initial Referendum.--
       (1) Requirement.--During the period ending 30 months after 
     the date of the first issuance of an order under section 924, 
     the Secretary shall conduct a referendum among producers who, 
     during a representative period as determined by the 
     Secretary, have been engaged in the production of canola or 
     rapeseed for the purpose of ascertaining whether the order 
     then in effect shall be continued.
       (2) Advance notice.--The Secretary shall, to the extent 
     practicable, provide broad public notice in advance of any 
     referendum. The notice shall be provided, without advertising 
     expenses, by means of newspapers, county newsletters, the 
     electronic media, and press releases, through the use of 
     notices posted in State and county Cooperative State 
     Research, Education, and Extension Service offices and county 
     Consolidated Farm Service Agency offices, and by other 
     appropriate means specified in the order. The notice shall 
     include information on when the referendum will be held, 
     registration and voting requirements, rules regarding 
     absentee voting, and other pertinent information.
       (3) Approval of order.--The order shall be continued only 
     if the Secretary determines that the order has been approved 
     by not less than a majority of the producers voting in the 
     referendum.
       (4) Disapproval of order.--If continuation of the order is 
     not approved by a majority of those voting in the referendum, 
     the Secretary shall terminate collection of assessments under 
     the order within 6 months after the referendum and shall 
     terminate the order in an orderly manner as soon as 
     practicable.
       (b) Additional Referenda.--
       (1) In general.--
       (A) Requirement.--After the initial referendum on an order, 
     the Secretary shall conduct additional referenda, as 
     described in subparagraph (C), if requested by a 
     representative group of producers, as described in 
     subparagraph (B).
       (B) Representative group of producers.--An additional 
     referendum on an order shall be conducted if requested by 10 
     percent or more of the producers who during a representative 
     period have been engaged in the production of canola or 
     rapeseed.
       (C) Eligible producers.--Each additional referendum shall 
     be conducted among all producers who, during a representative 
     period, as determined by the Secretary, have been engaged in 
     the production of canola or rapeseed to determine whether the 
     producers favor the termination or suspension of the order.
       (2) Disapproval of order.--If the Secretary determines, in 
     a referendum conducted under paragraph (1), that suspension 
     or termination of the order is favored by a majority of the 
     producers voting in the referendum, the Secretary shall 
     suspend or terminate, as appropriate, collection of 
     assessments under the order within 6 months after the 
     determination, and shall suspend or terminate the order, as 
     appropriate, in an orderly manner as soon as practicable 
     after the determination.
       (3) Opportunity to request additional referenda.--
       (A) In general.--Beginning on the date that is 5 years 
     after the conduct of a referendum under this subtitle, and 
     every 5 years thereafter, the Secretary shall provide canola 
     and rapeseed producers an opportunity to request an 
     additional referendum.
       (B) Method of making request.--
       (i) In-person requests.--To carry out subparagraph (A), the 
     Secretary shall establish a procedure under which a producer 
     may request a reconfirmation referendum in-person at a county 
     Cooperative State Research, Education, and Extension Service 
     office or a county Consolidated Farm Service Agency office 
     during a period established by the Secretary, or as provided 
     in clause (ii).
       (ii) Mail-in requests.--In lieu of making a request in 
     person, a producer may make a request by mail. To facilitate 
     the submission of requests by mail, the Secretary may make 
     mail-in request forms available to producers.
       (C) Notifications.--The Secretary shall publish a notice in 
     the Federal Register, and the Board shall provide written 
     notification to producers, not later than 60 days prior to 
     the end of the period established under subparagraph (B)(i) 
     for an in-person request, of the opportunity of producers to 
     request an additional referendum. The notification shall 
     explain the right of producers to an additional referendum, 
     the procedure for a referendum, the purpose of a referendum, 
     and the date and method by which producers may act to request 
     an additional referendum under this paragraph. The Secretary 
     shall take such other action as the Secretary determines is 
     necessary to ensure that producers are made aware of the 
     opportunity to request an additional referendum.
       (D) Action by secretary.--As soon as practicable following 
     the submission of a request for an additional referendum, the 
     Secretary shall determine whether a sufficient number of 
     producers have requested the referendum, and take such steps 
     as are necessary to conduct the referendum, as required under 
     paragraph (1).
       (E) Time limit.--An additional referendum requested under 
     the procedures provided in this paragraph shall be conducted 
     not later than 1 year after the Secretary determines that a 
     representative group of producers, as described in paragraph 
     (1)(B), have requested the conduct of the referendum.
       (c) Procedures.--
       (1) Reimbursement of secretary.--The Secretary shall be 
     reimbursed from assessments collected by the Board for any 
     expenses incurred by the Secretary in connection with the 
     conduct of an activity required under this section.
       (2) Date.--Each referendum shall be conducted for a 
     reasonable period of time not to exceed 3 days, established 
     by the Secretary, under a procedure under which producers 
     intending to vote in the referendum shall certify that the 
     producers were engaged in the production of canola, rapeseed, 
     or canola or rapeseed products during the representative 
     period and, at the same time, shall be provided an 
     opportunity to vote in the referendum.
       (3) Place.--Referenda under this section shall be conducted 
     at locations determined by the Secretary. On request, 
     absentee mail ballots shall be furnished by the Secretary in 
     a manner prescribed by the Secretary.

     SEC. 928. PETITION AND REVIEW.

       (a) Petition.--
       (1) In general.--A person subject to an order issued under 
     this subtitle may file with the Secretary a petition--
       (A) stating that the order, a provision of the order, or an 
     obligation imposed in connection with the order is not 
     established in accordance with law; and
       (B) requesting a modification of the order or an exemption 
     from the order.
       (2) Hearings.--The petitioner shall be given the 
     opportunity for a hearing on a petition filed under paragraph 
     (1), in accordance with regulations issued by the Secretary.
       (3) Ruling.--After a hearing under paragraph (2), the 
     Secretary shall make a ruling on the petition that is the 
     subject of the hearing, which shall be final if the ruling is 
     in accordance with applicable law.
       (4) Limitation on petition.--Any petition filed under this 
     subtitle challenging an order, or any obligation imposed in 
     connected with an order, shall be filed not later than 2 
     years after the effective date of the order or obligation.
       (b) Review.--
       (1) Commencement of action.--The district court of the 
     United States in any district in which the person who is a 
     petitioner under subsection (a) resides or carries on 
     business shall have jurisdiction to review a ruling on the 
     petition, if a complaint is filed by the person not later 
     than 20 days after the date of the entry of a ruling by the 
     Secretary under subsection (a)(3).
       (2) Process.--Service of process in a proceeding under 
     paragraph (1) shall be conducted in accordance with the 
     Federal Rules of Civil Procedure.
       (3) Remands.--If the court determines, under paragraph (1), 
     that a ruling issued under subsection (a)(3) is not in 
     accordance with applicable law, the court shall remand the 
     matter to the Secretary with directions either--
       (A) to make such ruling as the court shall determine to be 
     in accordance with law; or
       (B) to take such further proceedings as, in the opinion of 
     the court, the law requires.
       (4) Enforcement.--The pendency of proceedings instituted 
     under subsection (a) shall not impede, hinder, or delay the 
     Attorney General or the Secretary from taking any action 
     under section 929.

     SEC. 929. ENFORCEMENT.

       (a) Jurisdiction.--The district courts of the United States 
     are vested with jurisdiction specifically to enforce, and to 
     prevent and restrain any person from violating, an order or 
     regulation made or issued under this subtitle.
       (b) Referral to Attorney General.--A civil action 
     authorized to be commenced under this section shall be 
     referred to the Attorney General for appropriate action, 
     except that the Secretary shall not be required to refer to 
     the Attorney General a violation of this subtitle if the 
     Secretary believes that the administration and enforcement of 
     this subtitle would be adequately served by providing a 
     suitable written notice or warning to the person who 
     committed the violation or by administrative action under 
     section 928.
       (c) Civil Penalties and Orders.--
       (1) Civil penalties.--
     
[[Page S1259]]

       (A) In general.--Any person who willfully violates any 
     provision of an order or regulation issued by the Secretary 
     under this subtitle, or who fails or refuses to pay, collect, 
     or remit an assessment or fee required of the person under an 
     order or regulation, may be assessed--
       (i) a civil penalty by the Secretary of not more than 
     $1,000 for each violation; and
       (ii) in the case of a willful failure to pay, collect, or 
     remit an assessment as required by an order or regulation, an 
     additional penalty equal to the amount of the assessment.
       (B) Separate offense.--Each violation under subparagraph 
     (A) shall be a separate offense.
       (2) Cease-and-desist orders.--In addition to, or in lieu 
     of, a civil penalty under paragraph (1), the Secretary may 
     issue an order requiring a person to cease and desist from 
     continuing a violation.
       (3) Notice and hearing.--No penalty shall be assessed, or 
     cease-and-desist order issued, by the Secretary under this 
     subsection unless the person against whom the penalty is 
     assessed or the order is issued is given notice and 
     opportunity for a hearing before the Secretary with respect 
     to the violation.
       (4) Finality.--The order of the Secretary assessing a 
     penalty or imposing a cease-and-desist order under this 
     subsection shall be final and conclusive unless the affected 
     person files an appeal of the order with the appropriate 
     district court of the United States in accordance with 
     subsection (d).
       (d) Review by District Court.--
       (1) Commencement of action.--Any person who has been 
     determined to be in violation of this subtitle, or against 
     whom a civil penalty has been assessed or a cease-and-desist 
     order issued under subsection (c), may obtain review of the 
     penalty or order by--
       (A) filing, within the 30-day period beginning on the date 
     the penalty is assessed or order issued, a notice of appeal 
     in--
       (i) the district court of the United States for the 
     district in which the person resides or conducts business; or
       (ii) the United States District Court for the District of 
     Columbia; and
       (B) simultaneously sending a copy of the notice by 
     certified mail to the Secretary.
       (2) Record.--The Secretary shall file promptly, in the 
     appropriate court referred to in paragraph (1), a certified 
     copy of the record on which the Secretary has determined that 
     the person has committed a violation.
       (3) Standard of review.--A finding of the Secretary under 
     this section shall be set aside only if the finding is found 
     to be unsupported by substantial evidence.
       (e) Failure To Obey Orders.--Any person who fails to obey a 
     cease-and-desist order issued under this section after the 
     order has become final and unappealable, or after the 
     appropriate United States district court has entered a final 
     judgment in favor of the Secretary, shall be subject to a 
     civil penalty assessed by the Secretary, after opportunity 
     for a hearing and for judicial review under the procedures 
     specified in subsections (c) and (d), of not more than $5,000 
     for each offense. Each day during which the failure continues 
     shall be considered as a separate violation of the order.
       (f) Failure To Pay Penalties.--If a person fails to pay an 
     assessment of a civil penalty under this section after the 
     assessment has become a final and unappealable order, or 
     after the appropriate United States district court has 
     entered final judgment in favor of the Secretary, the 
     Secretary shall refer the matter to the Attorney General for 
     recovery of the amount assessed in the district court in 
     which the person resides or conducts business. In an action 
     for recovery, the validity and appropriateness of the final 
     order imposing the civil penalty shall not be subject to 
     review.
       (g) Additional Remedies.--The remedies provided in this 
     subtitle shall be in addition to, and not exclusive of, other 
     remedies that may be available.

     SEC. 930. INVESTIGATIONS AND POWER TO SUBPOENA.

       (a) Investigations.--The Secretary may make such 
     investigations as the Secretary considers necessary--
       (1) for the effective administration of this subtitle; and
       (2) to determine whether any person has engaged or is 
     engaging in an act that constitutes a violation of this 
     subtitle, or an order, rule, or regulation issued under this 
     subtitle.
       (b) Subpoenas, Oaths, and Affirmations.--
       (1) In general.--For the purpose of an investigation under 
     subsection (a), the Secretary may administer oaths and 
     affirmations, subpoena witnesses, take evidence, and issue 
     subpoenas to require the production of any records that are 
     relevant to the inquiry. The attendance of witnesses and the 
     production of records may be required from any place in the 
     United States.
       (2) Administrative hearings.--For the purpose of an 
     administrative hearing held under section 928 or 929, the 
     presiding officer is authorized to administer oaths and 
     affirmations, subpoena and compel the attendance of 
     witnesses, take evidence, and require the production of any 
     records that are relevant to the inquiry. The attendance of 
     witnesses and the production of records may be required from 
     any place in the United States.
       (c) Aid of Courts.--In the case of contumacy by, or refusal 
     to obey a subpoena issued to, any person, the Secretary may 
     invoke the aid of any court of the United States within the 
     jurisdiction of which the investigation or proceeding is 
     carried on, or where the person resides or carries on 
     business, in order to enforce a subpoena issued by the 
     Secretary under subsection (b). The court may issue an order 
     requiring the person to comply with the subpoena.
       (d) Contempt.--A failure to obey an order of the court 
     under this section may be punished by the court as contempt 
     of the court.
       (e) Process.--Process may be served on a person in the 
     judicial district in which the person resides or conducts 
     business or wherever the person may be found.
       (f) Hearing Site.--The site of a hearing held under section 
     928 or 729 shall be in the judicial district where the person 
     affected by the hearing resides or has a principal place of 
     business.

     SEC. 931. SUSPENSION OR TERMINATION OF AN ORDER.

       The Secretary shall, whenever the Secretary finds that an 
     order or a provision of an order obstructs or does not tend 
     to effectuate the declared policy of this subtitle, terminate 
     or suspend the operation of the order or provision. The 
     termination or suspension of an order shall not be considered 
     an order within the meaning of this subtitle.

     SEC. 932. REGULATIONS.

       The Secretary may issue such regulations as are necessary 
     to carry out this subtitle.

     SEC. 933. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each fiscal year such sums as are necessary to carry out 
     this subtitle.
       (b) Administrative Expenses.--Funds appropriated under 
     subsection (a) shall not be available for payment of the 
     expenses or expenditures of the Board in administering a 
     provision of an order issued under this subtitle.
                         Subtitle C--Kiwifruit

     SEC. 941. SHORT TITLE.

       This subtitle may be cited as the ``National Kiwifruit 
     Research, Promotion, and Consumer Information Act''.

     SEC. 942. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) domestically produced kiwifruit are grown by many 
     individual producers;
       (2) virtually all domestically produced kiwifruit are grown 
     in the State of California, although there is potential for 
     production in many other areas of the United States;
       (3) kiwifruit move in interstate and foreign commerce, and 
     kiwifruit that do not move in channels of commerce directly 
     burden or affect interstate commerce;
       (4) in recent years, large quantities of kiwifruit have 
     been imported into the United States;
       (5) the maintenance and expansion of existing domestic and 
     foreign markets for kiwifruit, and the development of 
     additional and improved markets for kiwifruit, are vital to 
     the welfare of kiwifruit producers and other persons 
     concerned with producing, marketing, and processing 
     kiwifruit;
       (6) a coordinated program of research, promotion, and 
     consumer information regarding kiwifruit is necessary for the 
     maintenance and development of the markets; and
       (7) kiwifruit producers, handlers, and importers are unable 
     to implement and finance such a program without cooperative 
     action.
       (b) Purposes.--The purposes of this subtitle are--
       (1) to authorize the establishment of an orderly procedure 
     for the development and financing (through an assessment) of 
     an effective and coordinated program of research, promotion, 
     and consumer information regarding kiwifruit;
       (2) to use the program to strengthen the position of the 
     kiwifruit industry in domestic and foreign markets and 
     maintain, develop, and expand markets for kiwifruit; and
       (3) to treat domestically produced kiwifruit and imported 
     kiwifruit equitably.

     SEC. 943. DEFINITIONS.

       In this subtitle (unless the context otherwise requires):
       (1) Board.--The term ``Board'' means the National Kiwifruit 
     Board established under section 945.
       (2) Consumer information.--The term ``consumer 
     information'' means any action taken to provide information 
     to, and broaden the understanding of, the general public 
     regarding the consumption, use, nutritional attributes, and 
     care of kiwifruit.
       (3) Exporter.--The term ``exporter'' means any person from 
     outside the United States who exports kiwifruit into the 
     United States.
       (4) Handler.--The term ``handler'' means any person, 
     excluding a common carrier, engaged in the business of buying 
     and selling, packing, marketing, or distributing kiwifruit as 
     specified in the order.
       (5) Importer.--The term ``importer'' means any person who 
     imports kiwifruit into the United States.
       (6) Kiwifruit.--The term ``kiwifruit'' means all varieties 
     of fresh kiwifruit grown or imported in the United States.
       (7) Marketing.--The term ``marketing'' means the sale or 
     other disposition of kiwifruit into interstate, foreign, or 
     intrastate commerce by buying, marketing, distribution, or 
     otherwise placing kiwifruit into commerce.
       (8) Order.--The term ``order'' means a kiwifruit research, 
     promotion, and consumer information order issued by the 
     Secretary under section 944.
       (9) Person.--The term ``person'' means any individual, 
     group of individuals, partnership, 

[[Page S1260]]
     corporation, association, cooperative, or other legal entity.
       (10) Processing.--The term ``processing'' means canning, 
     fermenting, distilling, extracting, preserving, grinding, 
     crushing, or in any manner changing the form of kiwifruit for 
     the purposes of preparing the kiwifruit for market or 
     marketing the kiwifruit.
       (11) Producer.--The term ``producer'' means any person who 
     grows kiwifruit in the United States for sale in commerce.
       (12) Promotion.--The term ``promotion'' means any action 
     taken under this subtitle (including paid advertising) to 
     present a favorable image for kiwifruit to the general public 
     for the purpose of improving the competitive position of 
     kiwifruit and stimulating the sale of kiwifruit.
       (13) Research.--The term ``research'' means any type of 
     research relating to the use, nutritional value, and 
     marketing of kiwifruit conducted for the purpose of advancing 
     the image, desirability, marketability, or quality of 
     kiwifruit.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) United states.--The term ``United States'' means the 
     50 States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

     SEC. 944. ISSUANCE OF ORDERS.

       (a) Issuance.--To effectuate the declared purposes of this 
     subtitle, the Secretary shall issue an order applicable to 
     producers, handlers, and importers of kiwifruit. Any such 
     order shall be national in scope. Not more than 1 order shall 
     be in effect under this subtitle at any 1 time.
       (b) Procedure.--
       (1) Proposal for issuance of order.--Any person that will 
     be affected by this subtitle may request the issuance of, and 
     submit a proposal for, an order under this subtitle.
       (2) Proposed order.--Not later than 90 days after the 
     receipt of a request and proposal for an order, the Secretary 
     shall publish a proposed order and give due notice and 
     opportunity for public comment on the proposed order.
       (3) Issuance of order.--After notice and opportunity for 
     public comment are provided under paragraph (2), the 
     Secretary shall issue an order, taking into consideration the 
     comments received and including in the order provisions 
     necessary to ensure that the order is in conformity with this 
     subtitle.
       (c) Amendments.--The Secretary may amend any order issued 
     under this section. The provisions of this subtitle 
     applicable to an order shall be applicable to an amendment to 
     an order.

     SEC. 945. NATIONAL KIWIFRUIT BOARD.

       (a) Membership.--An order issued by the Secretary under 
     section 944 shall provide for the establishment of a National 
     Kiwifruit Board that consists of the following 11 members:
       (1) 6 members who are producers (or representatives of 
     producers) and who are not exempt from an assessment under 
     section 946(b).
       (2) 4 members who are importers (or representatives of 
     importers) and who are not exempt from an assessment under 
     section 946(b) or are exporters (or representatives of 
     exporters).
       (3) 1 member appointed from the general public.
       (b) Adjustment of Membership.--Subject to the 11-member 
     limit, the Secretary may adjust membership on the Board to 
     accommodate changes in production and import levels of 
     kiwifruit.
       (c) Appointment and Nomination.--
       (1) Appointment.--The Secretary shall appoint the members 
     of the Board from nominations submitted in accordance with 
     this subsection.
       (2) Producers.--The members referred to in subsection 
     (a)(1) shall be appointed from individuals nominated by 
     producers.
       (3) Importers and exporters.--The members referred to in 
     subsection (a)(2) shall be appointed from individuals 
     nominated by importers or exporters.
       (4) Public representative.--The public representative shall 
     be appointed from nominations submitted by other members of 
     the Board.
       (5) Failure to nominate.--If producers, importers, and 
     exporters fail to nominate individuals for appointment, the 
     Secretary may appoint members on a basis provided for in the 
     order. If the Board fails to nominate a public 
     representative, the member may be appointed by the Secretary 
     without a nomination.
       (d) Alternates.--The Secretary shall appoint an alternate 
     for each member of the Board. An alternate shall--
       (1) be appointed in the same manner as the member for whom 
     the individual is an alternate; and
       (2) serve on the Board if the member is absent from a 
     meeting or is disqualified under subsection (f).
       (e) Terms.--A member of the Board shall be appointed for a 
     term of 3 years. No member may serve more than 2 consecutive 
     3-year terms, except that of the members first appointed--
       (1) 5 members shall be appointed for a term of 2 years; and
       (2) 6 members shall be appointed for a term of 3 years.
       (f) Disqualification.--If a member or alternate of the 
     Board who was appointed as a producer, importer, exporter, or 
     public representative member ceases to belong to the group 
     for which the member was appointed, the member or alternate 
     shall be disqualified from serving on the Board.
       (g) Compensation.--A members or alternate of the Board 
     shall serve without pay.
       (h) General Powers and Duties.--The Board shall--
       (1) administer an order issued by the Secretary under 
     section 944, and an amendment to the order, in accordance 
     with the order and amendment and this subtitle;
       (2) prescribe rules and regulations to carry out the order;
       (3) meet, organize, and select from among members of the 
     Board a chairperson, other officers, and committees and 
     subcommittees, as the Board determines appropriate;
       (4) receive, investigate, and report to the Secretary 
     accounts of violations of the order;
       (5) make recommendations to the Secretary with respect to 
     an amendment that should be made to the order; and
       (6) employ or contract with a manager and staff to assist 
     in administering the order, except that, to reduce 
     administrative costs and increase efficiency, the Board shall 
     seek, to the extent practicable, to employ or contract with 
     personnel who are already associated with State chartered 
     organizations involved in promoting kiwifruit.

     SEC. 946. REQUIRED TERMS IN ORDER.

       (a) Budgets and Plans.--
       (1) In general.--An order issued under section 944 shall 
     provide for periodic budgets and plans in accordance with 
     this subsection.
       (2) Budgets.--The Board shall prepare and submit to the 
     Secretary a budget prior to the beginning of the fiscal year 
     of the anticipated expenses and disbursements of the Board in 
     the administration of the order, including probable costs of 
     research, promotion, and consumer information. A budget shall 
     become effective on a \2/3\-vote of a quorum of the Board and 
     approval by the Secretary.
       (3) Plans.--Each budget shall include a plan for research, 
     promotion, and consumer information regarding kiwifruit. A 
     plan under this paragraph shall become effective on approval 
     by the Secretary. The Board may enter into contracts and 
     agreements, on approval by the Secretary, for--
       (A) the development of and carrying out the plan; and
       (B) the payment of the cost of the plan, with funds 
     collected pursuant to this subtitle.
       (b) Assessments.--
       (1) In general.--The order shall provide for the imposition 
     and collection of assessments with regard to the production 
     and importation of kiwifruit in accordance with this 
     subsection.
       (2) Rate.--The assessment rate shall be the reate that is 
     recommended by a \2/3\-vote of a quorum of the Board and 
     approved by the Secretary, except that the rate shall not 
     exceed $0.10 per 7-pound tray of kiwifruit or equivalent.
       (3) Collection by first handlers.--Except as provided in 
     paragraph (5), the first handler of kiwifruit shall--
       (A) be responsible for the collection from the producer, 
     and payment to the Board, of assessments required under this 
     subsection; and
       (B) maintain a separate record of the kiwifruit of each 
     producer whose kiwifruit are so handled, including the 
     kiwifruit owned by the handler.
       (4) Importers.--The assessment on imported kiwifruit shall 
     be paid by the importer to the United States Customs Service 
     at the time of entry into the United States and shall be 
     remitted to the Board.
       (5) Exemption from assessment.--The following persons or 
     activities are exempt from an assessment under this 
     subsection:
       (A) A producer who produces less than 500 pounds of 
     kiwifruit per year.
       (B) An importer who imports less than 10,000 pounds of 
     kiwifruit per year.
       (C) A sale of kiwifruit made directly from the producer to 
     a consumer for a purpose other than resale.
       (D) The production or importation of kiwifruit for 
     processing.
       (6) Claim of exemption.--To claim an exemption under 
     paragraph (5) for a particular year, a person shall--
       (A) submit an application to the Board stating the basis 
     for the exemption and certifying that the quantity of 
     kiwifruit produced, imported, or sold by the person will not 
     exceed any poundage limitation required for the exemption in 
     the year; or
       (B) be on a list of approved processors developed by the 
     Board.
       (c) Use of Assessments.
       (1) Authorized uses.--The order shall provide that funds 
     paid to the Board as assessments under subsection (b) may be 
     used by the Board--
       (A) to pay for research, promotion, and consumer 
     information described in the budget of the Board under 
     subsection (a) and for other expenses incurred by the Board 
     in the administration of an order;
       (B) to pay such other expenses for the administration, 
     maintenance, and functioning of the Board, including any 
     enforcement efforts for the collection of assessments as may 
     be authorized by the Secretary, including interest and 
     penalties for late payments; and
       (C) to fund a reserve established under section 947(d).
       (2) Required uses.--The order shall provide that funds paid 
     to the Board as assessments under subsection (b) shall be 
     used by the Board--
     
[[Page S1261]]

       (A) to pay the expenses incurred by the Secretary, 
     including salaries and expenses of Federal Government 
     employees, in implementing and administering the order; and
       (B) to reimburse the Secretary for any expenses incurred by 
     the Secretary in conducting referenda under this subtitle.
       (3) Limitation on use of assessments.--Except for the first 
     year of operation of the Board, expenses for the 
     administration, maintenance, and functioning of the Board may 
     not exceed 30 percent of the budget for a year.
       (d) False Claims.--The order shall provide that any 
     promotion funded with assessments collected under subsection 
     (b) may not make--
       (1) any false claims on behalf of kiwifruit; and
       (2) any false statements with respect to the attributes or 
     use of any product that competes with kiwifruit for sale in 
     commerce.
       (e) Prohibition on Use of Funds.--The order shall provide 
     that funds collected by the Board under this subtitle through 
     assessments may not, in any manner, be used for the purpose 
     of influencing legislation or governmental policy or action, 
     except for making recommendations to the Secretary as 
     provided for under this subtitle.
       (f) Books, Records, and Reports.--
       (1) Board.--The order shall require the Board--
       (A) to maintain books and records with respect to the 
     receipt and disbursement of funds received by the Board;
       (B) to submit to the Secretary from time to time such 
     reports as the Secretary may require for appropriate 
     accounting; and
       (C) to submit to the Secretary at the end of each fiscal 
     year a complete audit report by an independent auditor 
     regarding the activities of the Board during the fiscal year.
       (2) Others.--To make information and data available to the 
     Board and the Secretary that is appropriate or necessary for 
     the effectuation, administration, or enforcement of this 
     subtitle (or any order or regulation issued under this 
     subtitle), the order shall require handlers and importers who 
     are responsible for the collection, payment, or remittance of 
     assessments under subsection (b)--
       (A) to maintain and make available for inspection by the 
     employees and agents of the Board and the Secretary such 
     books and records as may be required by the order; and
       (B) to file, at the times and in the manner and content 
     prescribed by the order, reports regarding the collection, 
     payment, or remittance of the assessments.
       (g) Confidentiality.--
       (1) In general.--The order shall require that all 
     information obtained pursuant to subsection (f)(2) be kept 
     confidential by all officers and employees and agents of the 
     Department and of the Board. Only such information as the 
     Secretary considers relevant shall be disclosed to the public 
     and only in a suit or administrative hearing, brought at the 
     request of the Secretary or to which the Secretary or any 
     officer of the United States is a party, involving the order 
     with respect to which the information was furnished or 
     acquired.
       (2) Limitations.--Nothing in this subsection prohibits--
       (A) issuance of general statements based on the reports of 
     a number of handlers and importers subject to an order, if 
     the statements do not identify the information furnished by 
     any person; or
       (B) the publication, by direction of the Secretary, of the 
     name of any person violating an order issued under section 
     944(a), together with a statement of the particular 
     provisions of the order violated by the person.
       (3) Penalty.--Any person who willfully violates this 
     subsection, on conviction, shall be subject to a fine of not 
     more than $1,000 or to imprisonment for not more than 1 year, 
     or both, and, if the person is a member, officer, or agent of 
     the board or an employee of the Department, shall be removed 
     from office.
       (h) Withholding Information.--Nothing in this subtitle 
     authorizes the withholding of information from Congress.

     SEC. 947. PERMISSIVE TERMS IN ORDER.

       (a) Permissive Terms.--On the recommendation of the Board 
     and with the approval of the Secretary, an order issued under 
     section 944 may include the terms and conditions specified in 
     this section and such additional terms and conditions as the 
     Secretary considers necessary to effectuate the other 
     provisions of the order and are incidental to, and not 
     inconsistent with, this subtitle.
       (b) Alternative Payment and Reporting Schedules.--The order 
     may authorize the Board to designate different handler 
     payment and reporting schedules to recognize differences in 
     marketing practices and procedures.
       (c) Working Groups.--The order may authorize the Board to 
     convene working groups drawn from producers, handlers, 
     importers, exporters, or the general public and utilize the 
     expertise of the groups to assist in the development of 
     research and marketing programs for kiwifruit.
       (d) Reserve Funds.--The order may authorize the Board to 
     accumulate reserve funds from assessments collected pursuant 
     to section 946(b) to permit an effective and continuous 
     coordinated program of research, promotion, and consumer 
     information in years in which production and assessment 
     income may be reduced, except that any reserve fund may not 
     exceed the amount budgeted for operation of this subtitle for 
     1 year.
       (e) Promotion Activities Outside United States.--The order 
     may authorize the Board to use, with the approval of the 
     Secretary, funds collected under section 946(b) and funds 
     from other sources for the development and expansion of sales 
     in foreign markets of kiwifruit produced in the United 
     States.

     SEC. 948. PETITION AND REVIEW.

       (a) Petition.--
       (1) In general.--A person subject to an order may file with 
     the Secretary a petition--
       (A) stating that the order, a provision of the order, or an 
     obligation imposed in connection with the order is not in 
     accordance with law; and
       (B) requesting a modification of the order or an exemption 
     from the order.
       (2) Hearings.--A person submitting a petition under 
     paragraph (1) shall be given an opportunity for a hearing on 
     the petition, in accordance with regulations issued by the 
     Secretary.
       (3) Ruling.--After the hearing, the Secretary shall make a 
     ruling on the petition which shall be final if the petition 
     is in accordance with law.
       (4) Limitation on petition.--Any petition filed under this 
     subtitle challenging an order, or any obligation imposed in 
     connected with an order, shall be filed not later than 2 
     years after the effective date of the order or obligation.
       (b) Review.--
       (1) Commencement of action.--The district court of the 
     United States in any district in which the person who is a 
     petitioner under subsection (a) resides or carries on 
     business is vested with jurisdiction to review the ruling on 
     the petition of the person, if a complaint for that purpose 
     is filed not later than 20 days after the date of the entry 
     of a ruling by the Secretary under subsection (a).
       (2) Process.--Service of process in the proceedings shall 
     be conducted in accordance with the Federal Rules of Civil 
     Procedure.
       (3) Remands.--If the court determines that the ruling is 
     not in accordance with law, the court shall remand the matter 
     to the Secretary with directions--
       (A) to make such ruling as the court shall determine to be 
     in accordance with law; or
       (B) to take such further action as, in the opinion of the 
     court, the law requires.
       (4) Enforcement.--The pendency of a proceeding instituted 
     pursuant to subsection (a) shall not impede, hinder, or delay 
     the Attorney General or the Secretary from obtaining relief 
     pursuant to section 949.

     SEC. 949. ENFORCEMENT.

       (a) Jurisdiction.--A district court of the United States 
     shall have jurisdiction specifically to enforce, and to 
     prevent and restrain any person from violating, any order or 
     regulation made or issued by the Secretary under this 
     subtitle.
       (b) Referral to Attorney General.--A civil action 
     authorized to be brought under this section shall be referred 
     to the Attorney General for appropriate action, except that 
     the Secretary is not required to refer to the Attorney 
     General a violation of this subtitle, or any order or 
     regulation issued under this subtitle, if the Secretary 
     believes that the administration and enforcement of this 
     subtitle would be adequately served by administrative action 
     under subsection (c) or suitable written notice or warning to 
     any person committing the violation.
       (c) Civil Penalties and Orders.--
       (1) Civil penalties.--Any person who willfully violates any 
     provision of any order or regulation issued by the Secretary 
     under this subtitle, or who fails or refuses to pay, collect, 
     or remit any assessment or fee duly required of the person 
     under the order or regulation, may be assessed a civil 
     penalty by the Secretary of not less than $500 nor more than 
     $5,000 for each such violation. Each violation shall be a 
     separate offense.
       (2) Cease-and-desist orders.--In addition to or in lieu of 
     the civil penalty, the Secretary may issue an order requiring 
     the person to cease and desist from continuing the violation.
       (3) Notice and hearing.--No order assessing a civil penalty 
     or cease-and-desist order may be issued by the Secretary 
     under this subsection unless the Secretary gives the person 
     against whom the order is issued notice and opportunity for a 
     hearing on the record before the Secretary with respect to 
     the violation.
       (4) Finality.--The order of the Secretary assessing a 
     penalty or imposing a cease-and-desist order shall be final 
     and conclusive unless the person against whom the order is 
     issued files an appeal from the order with the appropriate 
     district court of the United States, in accordance with 
     subsection (d).
       (d) Review by United States District Court.--
       (1) Commencement of action.--Any person against whom a 
     violation is found and a civil penalty assessed or cease-and-
     desist order issued under subsection (c) may obtain review of 
     the penalty or order in the district court of the United 
     States for the district in which the person resides or does 
     business, or the United States district court for the 
     District of Columbia, by--
       (A) filing a notice of appeal in the court not later than 
     30 days after the date of the order; and
       (B) simultaneously sending a copy of the notice by 
     certified mail to the Secretary.
       (2) Record.--The Secretary shall promptly file in the court 
     a certified copy of the record on which the Secretary found 
     that the person had committed a violation. 
     
[[Page S1262]]

       (3) Standard of review.--A finding of the Secretary shall 
     be set aside only if the finding is found to be unsupported 
     by substantial evidence.
       (e) Failure to Obey Orders.--Any person who fails to obey a 
     cease-and-desist order issued by the Secretary after the 
     order has become final and unappealable, or after the 
     appropriate United States district court has entered a final 
     judgment in favor of the Secretary, shall be subject to a 
     civil penalty assessed by the Secretary, after opportunity 
     for a hearing and for judicial review under the procedures 
     specified in subsections (c) and (d), of not more than $500 
     for each offense. Each day during which the failure continues 
     shall be considered a separate violation of the order.
       (f) Failure to Pay Penalties.--If a person fails to pay an 
     assessment of a civil penalty after the assessment has become 
     a final and unappealable order issued by the Secretary, or 
     after the appropriate United States district court has 
     entered final judgment in favor of the Secretary, the 
     Secretary shall refer the matter to the Attorney General for 
     recovery of the amount assessed in the district court of the 
     United States in any district in which the person resides or 
     conducts business. In the action, the validity and 
     appropriateness of the final order imposing the civil penalty 
     shall not be subject to review.

     SEC. 950. INVESTIGATIONS AND POWER TO SUBPOENA.

       (a) In General.--The Secretary may make such investigations 
     as the Secretary considers necessary--
       (1) for the effective carrying out of the responsibilities 
     of the Secretary under this subtitle; or
       (2) to determine whether a person subject to this subtitle 
     has engaged or is engaging in any act that constitutes a 
     violation of this subtitle, or any order, rule, or regulation 
     issued under this subtitle.
       (b) Power to Subpoena.--
       (1) Investigations.--For the purpose of an investigation 
     made under subsection (a), the Secretary may administer oaths 
     and affirmations and may issue subpoenas to require the 
     production of any records that are relevant to the inquiry. 
     The production of any such records may be required from any 
     place in the United States.
       (2) Administrative hearings.--For the purpose of an 
     administrative hearing held under section 948 or 949, the 
     presiding officer is authorized to administer oaths and 
     affirmations, subpoena witnesses, compel the attendance of 
     witnesses, take evidence, and require the production of any 
     records that are relevant to the inquiry. The attendance of 
     witnesses and the production of any such records may be 
     required from any place in the United States.
       (c) Aid of Courts.--In the case of contumacy by, or refusal 
     to obey a subpoena to, any person, the Secretary may invoke 
     the aid of any court of the United States within the 
     jurisdiction of which the investigation or proceeding is 
     carried on, or where the person resides or carries on 
     business, to enforce a subpoena issued by the Secretary under 
     subsection (b). The court may issue an order requiring the 
     person to comply with the subpoena.
       (d) Contempt.--Any failure to obey the order of the court 
     may be punished by the court as a contempt of the order.
       (e) Process.--Process in any such case may be served in the 
     judicial district of which the person resides or conducts 
     business or wherever the person may be found.
       (f) Hearing Site.--The site of any hearing held under 
     section 948 or 949 shall be within the judicial district 
     where the person is an inhabitant or has a principal place of 
     business.

     SEC. 951. REFERENDA.

       (a) Initial Referendum.--
       (1) Referendum required.--During the 60-day period 
     immediately preceding the proposed effective date of an order 
     issued under section 944, the Secretary shall conduct a 
     referendum among kiwifruit producers and importers who will 
     be subject to assessments under the order, to ascertain 
     whether producers and importers approve the implementation of 
     the order.
       (2) Approval of order.--The order shall become effective, 
     as provided in section 944, if the Secretary determines 
     that--
       (A) the order has been approved by a majority of the 
     producers and importers voting in the referendum; and
       (B) the producers and importers produce and import more 
     than 50 percent of the total volume of kiwifruit produced and 
     imported by persons voting in the referendum.
       (b) Subsequent Referenda.--The Secretary may periodically 
     conduct a referendum to determine if kiwifruit producers and 
     importers favor the continuation, termination, or suspension 
     of any order issued under section 944 that is in effect at 
     the time of the referendum.
       (c) Required Referenda.--The Secretary shall hold a 
     referendum under subsection (b)--
       (1) at the end of the 6-year period beginning on the 
     effective date of the order and at the end of each subsequent 
     6-year period;
       (2) at the request of the Board; or
       (3) if not less than 30 percent of the kiwifruit producers 
     and importers subject to assessments under the order submit a 
     petition requesting the referendum.
       (d) Vote.--On completion of a referendum under subsection 
     (b), the Secretary shall suspend or terminate the order that 
     was subject to the referendum at the end of the marketing 
     year if--
       (1) the suspension or termination of the order is favored 
     by not less than a majority of the producers and importers 
     voting in the referendum; and
       (2) the producers and importers produce and import more 
     than 50 percent of the total volume of kiwifruit produced and 
     imported by persons voting in the referendum.
       (e) Confidentiality.--The ballots and other information or 
     reports that reveal, or tend to reveal, the vote of any 
     person under this subtitle and the voting list shall be held 
     strictly confidential and shall not be disclosed.

     SEC. 952. SUSPENSION AND TERMINATION OF ORDER BY SECRETARY.

       (a) In General.--If the Secretary finds that an order 
     issued under section 944, or a provision of the order, 
     obstructs or does not tend to effectuate the purposes of this 
     subtitle, the Secretary shall terminate or suspend the 
     operation of the order or provision.
       (b) Limitation.--The termination or suspension of any 
     order, or any provision of an order, shall not be considered 
     an order under this subtitle.

     SEC. 953. REGULATIONS.

       The Secretary may issue such regulations as are necessary 
     to carry out this subtitle.

     SEC. 954. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such funds as are 
     necessary to carry out this subtitle for each fiscal year.
             Subtitle D--Commodity Promotion and Evaluation

     SEC. 961. COMMODITY PROMOTION AND EVALUATION.

       (a) Findings.--Congress finds that--
       (1) it is in the national public interest and vital to the 
     welfare of the agricultural economy of the United States to 
     expand and develop markets for agricultural commodities 
     through generic, industry-funded promotion programs;
       (2) the programs play a unique role in advancing the demand 
     for agricultural commodities, since the programs increase the 
     total market for a product to the benefit of consumers and 
     all producers;
       (3) the programs complement branded advertising 
     initiatives, which are aimed at increasing the market share 
     of individual competitors;
       (4) the programs are of particular benefit to small 
     producers, who may lack the resources or market power to 
     advertise on their own;
       (5) the programs do not impede the branded advertising 
     efforts of individual firms but instead increase market 
     demand by methods that each individual entity would not have 
     the incentive to employ;
       (6) the programs, paid for by the producers who directly 
     reap the benefits of the programs, provide a unique 
     opportunity for agricultural producers to inform consumers 
     about their products;
       (7) it is important to ensure that the programs be carried 
     out in an effective and coordinated manner that is designed 
     to strengthen the position of the commodities in the 
     marketplace and to maintain and expand the markets and uses 
     of the commodities; and
       (8) independent evaluation of the effectiveness of the 
     programs will assist Congress and the Secretary of 
     Agriculture in ensuring that the objectives of the programs 
     are met.
       (b) Independent Evaluations.--Except as otherwise provided 
     by law, and at such intervals as the Secretary of Agriculture 
     may determine, but not more frequently than every 3 years or 
     3 years after the establishment of a program, the Secretary 
     shall require that each industry-funded generic promotion 
     program authorized by Federal law for an agricultural 
     commodity shall provide for an independent evaluation of the 
     program and the effectiveness of the program. The evaluation 
     may include an analysis of benefits, costs, and the efficacy 
     of promotional and research efforts under the program. The 
     evaluation shall be funded from industry assessments and made 
     available to the public.
       (c) Administrative Costs.--The Secretary shall provide to 
     Congress annually information on administrative expenses on 
     programs referred to in subsection (b).

                          ____________________