[Congressional Record Volume 148, Number 16 (Monday, February 25, 2002)]
[Senate]
[Pages S1006-S1135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      AGRICULTURE, CONSERVATION AND RURAL ENHANCEMENT ACT OF 2001

  On February 13, 2002, the Senate passed H.R. 2646, with an amendment 
in the nature of a substitute, as follows:

         Resolved, That the bill from the House of Representatives 
     (H.R. 2646) entitled ``An Act to provide for the continuation 
     of agricultural programs through fiscal year 2011.'', do pass 
     with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agriculture, Conservation, and Rural Enhancement Act of 
     2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Definitions.

            Subtitle A--Direct and Counter-Cyclical Payments

Sec. 111. Direct and counter-cyclical payments.
Sec. 112. Violations of contracts.
Sec. 113. Planting flexibility.
Sec. 114. Pilot program for farm counter-cyclical savings accounts.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

Sec. 121. Nonrecourse marketing assistance loans and loan deficiency 
              payments.
Sec. 122. Eligible production.
Sec. 123. Loan rates.
Sec. 124. Term of loans.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency payments.
Sec. 127. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 128. Special marketing loan provisions for upland cotton.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 131. Milk price support program.
Sec. 132. National dairy program.
Sec. 133. Dairy export incentive and dairy indemnity programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product mandatory reporting.
Sec. 136. Funding of dairy promotion and research program.
Sec. 137. Dairy studies.

                            Chapter 2--Sugar

Sec. 141. Sugar program.
Sec. 142. Storage facility loans.
Sec. 143. Flexible marketing allotments for sugar.
Sec. 144. Reallocation of sugar quota.

                           Chapter 3--Peanuts

Sec. 151. Peanut program.
Sec. 152. Termination of marketing quotas for peanuts and compensation 
              to peanut quota holders.

                       Subtitle D--Administration

Sec. 161. Marketing orders for caneberries.
Sec. 162. Reserve stock level.
Sec. 163. Farm reconstitutions.
Sec. 164. Adjustment authority related to Uruguay Round compliance.
Sec. 165. Suspension of permanent price support authority.
Sec. 166. Commodity purchases.
Sec. 167. Hard white wheat incentive payments.
Sec. 168. Livestock assistance program.
Sec. 169. Payment limitations; nutrition and commodity programs.
Sec. 170. Restriction of commodity and crop insurance payments, loans, 
              and benefits to previously cropped land; food stamp 
              program for certain qualified aliens.
Sec. 171. Reduction of commodity benefits to improve nutrition 
              assistance.
Sec. 172. Reports on equitable relief and misaction-misinformation 
              requests.
Sec. 173. Estimates of net farm income.
Sec. 174. Commodity Credit Corporation inventory.
Sec. 175. Agricultural producers supplemental payments and assistance.

               Subtitle E--Payment Limitation Commission

Sec. 181. Establishment of Commission.
Sec. 182. Duties.
Sec. 183. Powers.
Sec. 184. Commission personnel matters.
Sec. 185. Federal Advisory Committee Act.
Sec. 186. Funding.
Sec. 187. Termination of Commission.

              Subtitle F--Emergency Agriculture Assistance

Sec. 191. Income loss assistance.
Sec. 192. Livestock assistance program.
Sec. 193. Market loss assistance for apple producers.
Sec. 194. Commodity Credit Corporation.
Sec. 195. Administrative expenses.
Sec. 196. Regulations.
Sec. 197. Emergency requirement.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

Sec. 201. Conservation security program.
Sec. 202. Funding.
Sec. 203. Partnerships and cooperation.
Sec. 204. Administrative requirements for conservation programs.
Sec. 205. Reform and assessment of conservation programs.
Sec. 206. Conservation security program regulations.
Sec. 207. Conforming amendments.

                     Subtitle B--Program Extensions

Sec. 211. Comprehensive conservation enhancement program.
Sec. 212. Conservation reserve program.
Sec. 213. Environmental quality incentives program.
Sec. 214. Wetlands reserve program.
Sec. 215. Water conservation.
Sec. 216. Resource conservation and development program.
Sec. 217. Wildlife habitat incentive program.
Sec. 218. Farmland protection program.
Sec. 219. Grassland reserve program.
Sec. 220. State technical committees.
Sec. 221. Use of symbols, slogans, and logos.

                      Subtitle C--Organic Farming

Sec. 231. Organic Agriculture Research Trust Fund.
Sec. 232. Establishment of National Organic Research Endowment 
              Institute.

                      Subtitle D--Regional Equity

Sec. 241. Allocation of conservation funds by State.

                       Subtitle E--Miscellaneous

Sec. 261. Cranberry acreage reserve program.
Sec. 262. Klamath Basin.

                            TITLE III--TRADE

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

Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of currencies by private voluntary 
              organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation, 
              delivery, and distribution of shelf-stable prepackaged 
              foods.
Sec. 309. Pilot emergency relief program to provide live lamb to 
              Afghanistan.

[[Page S1007]]

Sec. 310. Sale procedure.
Sec. 311. Prepositioning.
Sec. 312. Expiration date.
Sec. 313. Micronutrient fortification program.
Sec. 314. John Ogonowski Farmer-to-Farmer Program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 321. Export credit guarantee program.
Sec. 322. Market access program.
Sec. 323. Export enhancement program.
Sec. 324. Foreign market development cooperator program.
Sec. 325. Food for progress and education programs.
Sec. 326. Exporter assistance initiative.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Bill Emerson Humanitarian Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Surplus commodities for developing or friendly countries.
Sec. 335. Agricultural trade with Cuba.
Sec. 336. Sense of Congress concerning agricultural trade.
Sec. 337. Report on use of perishable commodities.
Sec. 338. Sense of Senate concerning foreign assistance programs.

                      TITLE IV--NUTRITION PROGRAMS

Sec. 401. Short title.

                     Subtitle A--Food Stamp Program

Sec. 411. Encouragement of payment of child support.
Sec. 412. Simplified definition of income.
Sec. 413. Increase in benefits to households with children.
Sec. 414. Simplified determination of housing costs.
Sec. 415. Simplified utility allowance.
Sec. 416. Simplified procedure for determination of earned income.
Sec. 417. Simplified determination of deductions.
Sec. 418. Simplified definition of resources.
Sec. 419. Alternative issuance systems in disasters.
Sec. 420. State option to reduce reporting requirements.
Sec. 421. Benefits for adults without dependents.
Sec. 422. Preservation of access to electronic benefits.
Sec. 423. Cost neutrality for electronic benefit transfer systems.
Sec. 424. Alternative procedures for residents of certain group 
              facilities.
Sec. 425. Redemption of benefits through group living arrangements.
Sec. 426. Availability of food stamp program applications on the 
              Internet.
Sec. 427. Simplified determinations of continuing eligibility.
Sec. 428. Clearinghouse for successful nutrition education efforts.
Sec. 429. Transitional food stamps for families moving from welfare.
Sec. 430. Delivery to retailers of notices of adverse action.
Sec. 431. Reform of quality control system.
Sec. 432. Improvement of calculation of State performance measures.
Sec. 433. Bonuses for States that demonstrate high performance.
Sec. 434. Employment and training program.
Sec. 435. Reauthorization of food stamp program and food distribution 
              program on Indian reservations.
Sec. 436. Coordination of program information efforts.
Sec. 437. Expanded grant authority.
Sec. 438. Access and outreach pilot projects.
Sec. 439. Consolidated block grants and administrative funds.
Sec. 440. Assistance for community food projects.
Sec. 441. Availability of commodities for the emergency food assistance 
              program.
Sec. 442. Use of approved food safety technology.
Sec. 443. Innovative programs for addressing common community problems.
Sec. 444. Report on use of electronic benefit transfer systems.
Sec. 445. Vitamin and mineral supplements.

                  Subtitle B--Miscellaneous Provisions

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Partial restoration of benefits to legal immigrants.
Sec. 453. Commodities for school lunch programs.
Sec. 454. Eligibility for free and reduced price meals.
Sec. 455. Eligibility for assistance under the special supplemental 
              nutrition program for women, infants, and children.
Sec. 456. Report on conversion of WIC program into an individual 
              entitlement program.
Sec. 457. Commodity donations.
Sec. 458. Purchases of locally produced foods.
Sec. 459. Seniors farmers' market nutrition program.
Sec. 460. Farmers' market nutrition program.
Sec. 461. Fruit and vegetable pilot program.
Sec. 462. Congressional Hunger Fellows Program.
Sec. 463. Nutrition information and awareness pilot program.
Sec. 464. Effective date.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 501. Direct loans.
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or 
              rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 511. Direct loans.
Sec. 512. Amount of guarantee of loans for tribal farm operations; 
              waiver of limitations for tribal farm operations and 
              other farm operations.

                 Subtitle C--Administrative Provisions

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

                        Subtitle D--Farm Credit

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

                     Subtitle E--General Provisions

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effective date.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

Sec. 601. National Rural Cooperative and Business Equity Fund.
Sec. 602. Rural business investment program.
Sec. 603. Full funding of pending rural development loan and grant 
              applications.
Sec. 604. Rural Endowment Program.
Sec. 605. Enhancement of access to broadband service in rural areas.
Sec. 606. Value-added agricultural product market development grants.
Sec. 607. National Rural Development Information Clearinghouse.

           Subtitle B--National Rural Development Partnership

Sec. 611. Short title.
Sec. 612. National Rural Development Partnership.

        Subtitle C--Consolidated Farm and Rural Development Act

Sec. 621. Water or waste disposal grants.
Sec. 622. Rural business opportunity grants.
Sec. 623. Rural water and wastewater circuit rider program.
Sec. 624. Multijurisdictional regional planning organizations.
Sec. 625. Certified nonprofit organizations sharing expertise.
Sec. 626. Loan guarantees for certain rural development loans.
Sec. 627. Rural firefighters and emergency personnel grant program.
Sec. 628. Tribal college and university essential community facilities.
Sec. 629. Emergency community water assistance grant program.
Sec. 630. Water and waste facility grants for Native American tribes.
Sec. 631. Water systems for rural and native villages in Alaska.
Sec. 632. Rural business enterprise grants.
Sec. 633. Rural cooperative development grants.
Sec. 634. Grants to broadcasting systems.
Sec. 635. Business and industry loan modifications.
Sec. 636. Value-added intermediary relending program.
Sec. 637. Use of rural development loans and grants for other purposes.
Sec. 638. Simplified application forms for loan guarantees.
Sec. 639. Definition of rural and rural area.
Sec. 640. Rural entrepreneurs and microenterprise assistance program.
Sec. 641. Rural seniors.
Sec. 642. Children's day care facilities.
Sec. 643. Rural telework.
Sec. 644. Historic barn preservation.
Sec. 645. Grants for emergency weather radio transmitters.
Sec. 646. Grants for training farm workers.
Sec. 647. Delta Regional Authority.
Sec. 648. SEARCH grants for small communities.
Sec. 649. Northern Great Plains Regional Authority.

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

Sec. 651. Alternative Agricultural Research and Commercialization 
              Corporation.
Sec. 652. Telemedicine and distance learning services in rural areas.

             Subtitle E--Rural Electrification Act of 1936

Sec. 661. Guarantees for bonds and notes issued for electrification or 
              telephone purposes.
Sec. 662. Expansion of 911 access.

[[Page S1008]]

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 701. Definitions.
Sec. 702. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 703. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 704. Competitive research facilities grant program.
Sec. 705. Grants for research on the production and marketing of 
              alcohols and industrial hydrocarbons from agricultural 
              commodities and forest products.
Sec. 706. Policy research centers.
Sec. 707. Human nutrition intervention and health promotion research 
              program.
Sec. 708. Pilot research program to combine medical and agricultural 
              research.
Sec. 709. Nutrition education program.
Sec. 710. Animal health and disease research programs.
Sec. 711. Research on national or regional problems.
Sec. 712. Education grants programs for Hispanic-serving institutions.
Sec. 713. Competitive grants for international agricultural science and 
              education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment grants.
Sec. 716. Agricultural research programs.
Sec. 717. Extension education.
Sec. 718. Availability of competitive grant funds.
Sec. 719. Joint requests for proposals.
Sec. 720. Supplemental and alternative crops.
Sec. 721. Aquaculture.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning and response programs.

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

Sec. 731. National genetic resources program.
Sec. 732. Biotechnology risk assessment research.
Sec. 733. Rural electronic commerce extension program.
Sec. 734. High-priority research and extension initiatives.
Sec. 735. Nutrient management research and extension initiative.
Sec. 736. Organic agriculture research and extension initiative.
Sec. 737. Agricultural telecommunications program.
Sec. 738. Assistive technology program for farmers with disabilities.

Subtitle C--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 741. Initiative for Future Agriculture and Food Systems.
Sec. 742. Partnerships for high-value agricultural product quality 
              research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson Initiative for Crop Diversification.
Sec. 746. Integrated research, education, and extension competitive 
              grants program.
Sec. 747. Support for research regarding diseases of wheat and barley 
              caused by fusarium graminearum.
Sec. 748. Bovine Johne's disease control program.
Sec. 749. Grants for youth organizations.
Sec. 750. Agricultural biotechnology research and development for 
              developing countries.
Sec. 750A. Office of Pest Management Policy.
Sec. 750B. Senior Scientific Research Service.

                     Subtitle D--Land-Grant Funding

                      Chapter 1--1862 Institutions

Sec. 751. Carryover.
Sec. 752. Reporting of technology transfer activities.
Sec. 753. Compliance with multistate and integration requirements.

                      Chapter 2--1994 Institutions

Sec. 754. Extension at 1994 institutions.
Sec. 755. Equity in Educational Land-Grant Status Act of 1994.
Sec. 756. Eligibility for integrated grants program.

                      Chapter 3--1890 Institutions

Sec. 757. Authorization percentages for research and extension formula 
              funds.
Sec. 758. Carryover.
Sec. 759. Reporting of technology transfer activities.
Sec. 760. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 761. National research and training virtual centers.
Sec. 762. Matching funds requirement for research and extension 
              activities.

                   Chapter 4--Land-grant Institutions


                          SUBCHAPTER A--GENERAL

Sec. 771. Priority-setting process.
Sec. 772. Termination of certain schedule A appointments.


          SUBCHAPTER B--LAND-GRANT INSTITUTIONS IN INSULAR AREAS

Sec. 775. Distance education grants program for insular area land-grant 
              institutions.
Sec. 776. Matching requirements for research and extension formula 
              funds for insular area land-grant institutions.

                         Subtitle E--Other Laws

Sec. 781. Critical agricultural materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural research facilities.
Sec. 784. Competitive, special, and facilities research grants.
Sec. 785. Risk management education for beginning farmers and ranchers.
Sec. 786. Aquaculture.
Sec. 787. Carbon cycle research.

                      Subtitle F--New Authorities

Sec. 791. Definitions.
Sec. 792. Regulatory and inspection research.
Sec. 793. Emergency research transfer authority.
Sec. 794. Review of Agricultural Research Service.
Sec. 795. Technology transfer for rural development.
Sec. 796. Beginning farmer and rancher development program.
Sec. 797. Sense of Congress regarding doubling of funding for 
              agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for farmers and ranchers participating in 
              conservation programs.
Sec. 798B. Organic production and market data initiatives.
Sec. 798C. Organically produced product research and education.
Sec. 798D. International organic research collaboration.
Sec. 798E. Report on producers and handlers of organic agricultural 
              products.

                          TITLE VIII--FORESTRY

Sec. 801. Office of International Forestry.
Sec. 802. McIntire-Stennis cooperative forestry research program.
Sec. 803. Sustainable forestry outreach initiative; renewable resources 
              extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Sustainable forestry cooperative program.
Sec. 806. Sustainable forest management program.
Sec. 807. Forest Legacy Program.
Sec. 808. Forest fire research centers.
Sec. 809. Wildfire prevention and hazardous fuel purchase program.
Sec. 810. Chesapeake Bay Watershed Forestry Program.
Sec. 811. Enhanced community fire protection.
Sec. 812. Watershed forestry assistance program.
Sec. 813. Suburban and Community Forestry and Open Space Initiative.
Sec. 814. General provisions.
Sec. 815. State forest stewardship coordinating committees.
Sec. 816. USDA National Agroforestry Center.
Sec. 817. Office of Tribal Relations.
Sec. 818. Assistance to tribal governments.
Sec. 819. Sudden oak death syndrome.
Sec. 820. Independent investigation of firefighter
Sec. 821. Adaptive ecosystem restoration of Arizona and New Mexico 
              forests and woodlands.

                            TITLE IX--ENERGY

Sec. 901. Findings.
Sec. 902. Consolidated Farm and Rural Development Act.
Sec. 903. Biomass Research and Development Act of 2000.
Sec. 904. Rural Electrification Act of 1936.
Sec. 905. Carbon sequestration demonstration program.
Sec. 906. Sense of Congress concerning national renewable fuels 
              standard.
Sec. 907. Sense of Congress concerning the bioenergy program of the 
              Department of Agriculture.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

Sec. 1001. Country of origin labeling.
Sec. 1002. Quality grade labeling of imported meat and meat food 
              products.

                       Subtitle B--Crop Insurance

Sec. 1011. Equal crop insurance treatment of potatoes and sweet 
              potatoes.
Sec. 1012. Continuous coverage.
Sec. 1013. Quality loss adjustment procedures.
Sec. 1014. Conservation requirements.

                  Subtitle C--Animal Health Protection

Sec. 1021. Short title.
Sec. 1022. Findings.
Sec. 1023. Definitions.
Sec. 1024. Restriction on importation or entry.
Sec. 1025. Exportation.
Sec. 1026. Interstate movement.
Sec. 1027. Seizure, quarantine, and disposal.
Sec. 1028. Inspections, seizures, and warrants.
Sec. 1029. Detection, control, and eradication of diseases and pests.
Sec. 1030. Veterinary accreditation program.
Sec. 1031. Cooperation.
Sec. 1032. Reimbursable agreements.
Sec. 1033. Administration and claims.
Sec. 1034. Penalties.
Sec. 1035. Enforcement.
Sec. 1036. Regulations and orders.
Sec. 1037. Authorization of appropriations.
Sec. 1038. Repeals and conforming amendments.

                     Subtitle D--General Provisions

Sec. 1041. Fees for pesticides.
Sec. 1042. Pest management in schools.
Sec. 1043. Prohibition on packers owning, feeding, or controlling 
              livestock.
Sec. 1044. Packers and stockyards.
Sec. 1045. Unlawful stockyard practices involving nonambulatory 
              livestock.
Sec. 1046. Arbitration clauses.
Sec. 1047. Cotton classification services.
Sec. 1048. Protection for purchasers of farm products.

[[Page S1009]]

Sec. 1049. Improved standards for the care and treatment of certain 
              animals.
Sec. 1050. Expansion of State marketing programs.
Sec. 1051. Definition of animal under the Animal Welfare Act.
Sec. 1052. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.
Sec. 1053. Prohibition on interstate movement of animals for animal 
              fighting.
Sec. 1054. Outreach and assistance for socially disadvantaged farmers 
              and ranchers.
Sec. 1055. Wild fish and wild shellfish.
Sec. 1056. Assistant Secretary of Agriculture for Civil Rights.
Sec. 1057. Transparency and accountability for socially disadvantaged 
              farmers and ranchers; public disclosure requirements for 
              county committee elections.
Sec. 1058. Animal enterprise terrorism.
Sec. 1059. Pseudorabies eradication program.
Sec. 1060. Transportation of poultry and other animals.
Sec. 1061. Emergency grants to assist low-income migrant and seasonal 
              farmworkers.
Sec. 1062. Tree assistance program.
Sec. 1063. Preclearance quarantine inspections.
Sec. 1064. Emergency loans for seed producers.
Sec. 1065. National organic certification cost-share program.
Sec. 1066. Food Safety Commission.
Sec. 1067. Humane methods of animal slaughter.
Sec. 1068. Penalties for violations of Plant Protection Act.
Sec. 1069. Connecticut River Atlantic Salmon Commission.
Sec. 1070. Bear protection.
Sec. 1071. Reenactment of family farmer bankruptcy provisions.
Sec. 1072. Prohibition on packers owning, feeding, or controlling 
              livestock.
Sec. 1073. Equity and fairness for the promotion of imported Hass 
              avocados.
Sec. 1074. Sense of the Senate regarding social security surplus funds.
Sec. 1075. Sense of the Senate on permanent repeal of estate taxes.
Sec. 1076. Commercial fisheries failure.
Sec. 1077. Review of state meat inspection programs.
Sec. 1078. Agricultural research and technology.
Sec. 1079. Office of Science Technology Policy.
Sec. 1079A. Operation of agricultural and natural resource programs on 
              tribal trust land.
Sec. 1079B. Assistance for geographically disadvantaged farmers and 
              ranchers.
Sec. 1079C. Sense of Senate regarding use of the name ginseng.
Sec. 1079D. Adjusted gross revenue insurance pilot program.
Sec. 1079E. Pasteurization.

                    Subtitle E--Studies and Reports

Sec. 1081. Report on pouched and canned salmon.
Sec. 1082. Settlement agreement report.
Sec. 1083. Report on genetically modified pest-protected plants.
Sec. 1084. Study of creation of litter bank by University of Arkansas.
Sec. 1085. Study of feasibility of producer indemnification from 
              Government-caused disasters.
Sec. 1086. Report on sale and use of pesticides for agricultural uses.
Sec. 1087. Report on rats, mice, and birds.
Sec. 1088. Task Force on National Institutes for Plant and Agricultural 
              Sciences.

                 Subtitle F--Organic Products Promotion

Sec. 1091. Short title.
Sec. 1092. Definitions.
Sec. 1093. Issuance of orders.
Sec. 1094. Required terms in order.
Sec. 1095. Permissive terms in order.
Sec. 1096. Assessments.
Sec. 1097. Referenda.
Sec. 1098. Petition and review of orders.
Sec. 1098A. Enforcement.
Sec. 1098B. Investigations and power to subpoena.
Sec. 1098C. Suspension or termination.
Sec. 1098D. Amendments to orders.
Sec. 1098E. Effect on other laws.
Sec. 1098F. Regulations.
Sec. 1098G. Authorization of appropriations.

                       Subtitle G--Administration

Sec. 1099. Regulations.
Sec. 1099A. Effect of amendments.
Sec. 1099B. Commodity Credit Corporation funding.

                      TITLE I--COMMODITY PROGRAMS

     SEC. 101. DEFINITIONS.

       Section 102 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7202) is amended to read as 
     follows:

     ``SEC. 102. DEFINITIONS.

       ``In this title:
       ``(1) Agricultural act of 1949.--Except in section 171, the 
     term `Agricultural Act of 1949' means the Agricultural Act of 
     1949 (7 U.S.C. 1421 et seq.), as in effect prior to the 
     suspensions under section 171(b)(1).
       ``(2) Considered planted.--The term `considered planted' 
     means any acreage on the farm that--
       ``(A) producers on a farm were prevented from planting to a 
     crop because of drought, flood, or other natural disaster, or 
     other condition beyond the control of the eligible owners and 
     producers on the farm, as determined by the Secretary; and
       ``(B) was not planted to another contract commodity (other 
     than a contract commodity produced under an established 
     practice of double cropping).
       ``(3) Contract.--The term `contract' means a contract 
     entered into under subtitle B.
       ``(4) Contract acreage.--The term `contract acreage' means 
     the contract acreage determined under section 111(f).
       ``(5) Contract commodity.--The term `contract commodity' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, rice, and oilseeds.
       ``(6) Contract payment.--The term `contract payment' means 
     a payment made under subtitle B pursuant to a contract.
       ``(7) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(8) Extra long staple cotton.--The term `extra long 
     staple cotton' means cotton that--
       ``(A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid thereof, or other similar 
     types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       ``(B) is ginned on a roller-type gin or, if authorized by 
     the Secretary, ginned on another type gin for experimental 
     purposes.
       ``(9) Loan commodity.--The term `loan commodity' means 
     wheat, corn, grain sorghum, barley, oats, upland cotton, 
     extra long staple cotton, rice, oilseeds, wool, honey, dry 
     peas, lentils, and chickpeas.
       ``(10) Oilseed.--The term `oilseed' means a crop of 
     soybeans, sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, and, if designated by the Secretary, 
     other oilseeds.
       ``(11) Payment yield.--The term `payment yield' means a 
     payment yield determined under section 111(g).
       ``(12) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing a crop; and
       ``(ii) 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.--In determining whether a grower of 
     hybrid seed is a producer, the Secretary shall not take into 
     consideration the existence of a hybrid seed contract.
       ``(13) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(14) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.
       ``(15) United states.--The term `United States', when used 
     in a geographical sense, means all of the States.''.

            Subtitle A--Direct and Counter-Cyclical Payments

     SEC. 111. DIRECT AND COUNTER-CYCLICAL PAYMENTS.

       Sections 111 through 114 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7211 through 
     7214) are amended to read as follows:

     ``SEC. 111. AUTHORIZATION FOR CONTRACTS.

       ``(a) In General.--The Secretary shall offer to enter into 
     a contract with an eligible owner or producer described in 
     subsection (b) on a farm containing eligible cropland under 
     which the eligible owner or producer will receive direct 
     payments and counter-cyclical payments under sections 113 and 
     114, respectively.
       ``(b) Eligible Owners and Producers.--
       ``(1) In general.--Subject to paragraphs (2) and (3), an 
     owner or producer on a farm shall be eligible to enter into a 
     contract.
       ``(2) Tenants.--
       ``(A) Share-rent tenants.--A producer on eligible cropland 
     that is a tenant with a share-rent lease of the eligible 
     cropland, regardless of the length of the lease, shall be 
     eligible to enter into a contract, if the owner of the 
     eligible cropland enters into the same contract.
       ``(B) Cash-rent tenants.--
       ``(i) Contracts with long-term leases.--A producer on 
     eligible cropland that cash rents the eligible cropland under 
     a lease expiring on or after the termination of the contract 
     shall be eligible to enter into a contract.
       ``(ii) Contracts with short-term leases.--

       ``(I) In general.--A producer that cash rents the eligible 
     cropland under a lease expiring before the termination of the 
     contract shall be eligible to enter into a contract.
       ``(II) Owner's contract interest.--The owner of the 
     eligible cropland may also enter into the same contract.
       ``(III) Consent of owner.--If the producer elects to enroll 
     less than 100 percent of the eligible cropland in the 
     contract, the consent of the owner shall be required for a 
     valid contract.

       ``(3) Cash-rent owners.--
       ``(A) In general.--An owner of eligible cropland that cash 
     rents the eligible cropland under a lease term that expires 
     before the end of 2006 crop year shall be eligible to enter 
     into a contract if the tenant declines to enter into the 
     contract.
       ``(B) Contract payments.--In the case of an owner covered 
     by subparagraph (A), the Secretary shall not make contract 
     payments to the owner under the contract until the lease held 
     by the tenant terminates.
       ``(c) Compliance With Certain Requirements.--Under the 
     terms of a contract, the owner or producer shall agree, in 
     exchange for annual contract payments--
       ``(1) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

[[Page S1010]]

       ``(2) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       ``(3) to comply with the planting flexibility requirements 
     of section 118; and
       ``(4) to use a quantity of land on the farm equal to the 
     contract acreage, for an agricultural or conserving use or 
     related activity, and not for a nonagricultural commercial or 
     industrial use, as determined by the Secretary.
       ``(d) Protection of Interests of Certain Producers.--
       ``(1) Tenants and sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(2) Sharing of payments.--The Secretary shall provide for 
     the sharing of contract payments among the eligible producers 
     on a farm on a fair and equitable basis.
       ``(e) Eligible Cropland.--
       ``(1) In general.--Land shall be considered to be cropland 
     eligible for coverage under a contract only if the land--
       ``(A) has with respect to a contract commodity--
       ``(i) contract acreage attributable to the land; and
       ``(ii) a payment yield; or
       ``(B) was subject to a conservation reserve contract under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with a term that expired, or was voluntarily 
     terminated, on or after the date of enactment of this 
     paragraph.
       ``(2) Quantity of eligible cropland covered by contract.--
     An eligible owner or producer may enroll as contract acreage 
     under this subtitle all or a portion of the eligible cropland 
     on the farm.
       ``(3) Voluntary reduction in contract acreage.--An eligible 
     owner or producer that enters into a contract may 
     subsequently reduce the quantity of contract acreage covered 
     by the contract.
       ``(f) Contract Acreage.--
       ``(1) In general.--Subject to subsection (h), for the 
     purpose of making direct payments and counter-cyclical 
     payments to eligible owners and producers on a farm, the 
     Secretary shall provide the eligible owners and producers on 
     the farm with an opportunity to elect 1 of the following 
     methods as the method by which the contract acreages for the 
     2002 through 2006 crops of all contract commodities for a 
     farm are determined:
       ``(A) The 4-year average of acreage planted or considered 
     planted to a contract commodity for harvest, grazing, haying, 
     silage, or other similar purposes during each of the 1998 
     through 2001 crop years.
       ``(B) The total of--
       ``(i) the contract acreage (as defined in section 102 (as 
     in effect before the amendment made by section 101 of the 
     Agriculture, Conservation, and Rural Enhancement Act of 
     2002)) that would have been used by the Secretary to 
     calculate the payment for fiscal year 2002 under such section 
     102 for the contract commodity on the farm; and
       ``(ii) the 4-year average determined under subparagraph (A) 
     for each oilseed produced on the farm.
       ``(C) In the case of land described in section 112(a)(3), 
     land with eligible base, as determined by the Secretary.
       ``(2) Prevention of excess contract acreages.--
       ``(A) Required reduction.--If the total of the contract 
     acreages for a farm, together with the acreage described in 
     subparagraph (C), exceeds the actual cropland acreage of the 
     farm, the Secretary shall reduce the quantity of contract 
     acreages for 1 or more contract commodities for the farm or 
     peanut acres as necessary so that the total of the contract 
     acreages and acreage described in subparagraph (C) does not 
     exceed the actual cropland acreage of the farm.
       ``(B) Selection of acres.--The Secretary shall give the 
     eligible owners and producers on the farm the opportunity to 
     select the contract acreages or peanut acres against which 
     the reduction will be made.
       ``(C) Other acreage.--For purposes of subparagraph (A), the 
     Secretary shall include--
       ``(i) any peanut acres for the farm under chapter 3 of 
     subtitle D;
       ``(ii) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       ``(iii) any other acreage on the farm enrolled in a 
     voluntary Federal conservation program under which production 
     of any agricultural commodity is prohibited.
       ``(D) Double-cropped acreage.--In applying subparagraph 
     (A), the Secretary shall take into account additional acreage 
     as a result of an established double-cropping history on a 
     farm, as determined by the Secretary.
       ``(g) Payment Yields.--
       ``(1) In general.--Subject to paragraph (2) and subsection 
     (h), an eligible owner or producer that has entered into a 
     contract under this subtitle may make a 1-time election to 
     have the payment yield for a payment for each of the 2002 
     through 2006 crops of all contract commodities for a farm be 
     equal to--
       ``(A) an amount that is the greater of--
       ``(i) the average of the yield per harvested acre for the 
     crop of the contract commodity for the farm for the 1998 
     through 2001 crop years, excluding--

       ``(I) any crop year for which the producers on the farm did 
     not plant the contract commodity; and
       ``(II) at the option of the producers on the farm, 1 
     additional crop year; or

       ``(ii) the farm program payment yield described in 
     subparagraph (B); or
       ``(B) the farm program payment yield established for the 
     1995 crop of a contract commodity under section 505 of the 
     Agricultural Act of 1949 (7 U.S.C. 1465), as adjusted by the 
     Secretary to account for any additional yield payments made 
     with respect to that crop under section 505(b)(2) of that 
     Act.
       ``(2) Assigned yields.--In the case of a farm for which 
     yield records are unavailable for a contract commodity 
     (including land of a farm that is devoted to an oilseed under 
     a former conservation reserve contract described in section 
     112(a)(3)), the Secretary shall establish an appropriate 
     payment yield for the contract commodity on the farm taking 
     in consideration the payment yields applicable to the 
     contract commodity under paragraph (1) for similar farms in 
     the area, taking into consideration the yield election for 
     the farm under subsection (h).
       ``(h) Eligible Owner and Producer Election Options.--
       ``(1) In general.--In making elections under subsections 
     (f) and (g), eligible owners and producers on a farm shall 
     elect to have--
       ``(A)(i) contract acreage for the farm determined under 
     subsection (f)(1)(A); and
       ``(ii) payment yields determined under subsection 
     (g)(1)(A); or
       ``(B)(i) contract acreage for the farm determined under 
     subsection (f)(1)(B); and
       ``(ii) payment yields determined under--
       ``(I) in the case of contract commodities other than 
     oilseeds, subsection (g)(1)(B); and
       ``(II) in the case of oilseeds, subsection (g)(1)(A).
       ``(2) Single election; time for election.--
       ``(A) Single election.--The eligible owners and producers 
     on a farm shall have 1 opportunity to make the election 
     described in paragraph (1).
       ``(B) Time for election.--Subject to section 112(a)(3), not 
     later than 180 days after the date of enactment of this 
     subsection, the eligible owners and producers on a farm shall 
     notify the Secretary of the election made by the eligible 
     owners and producers on the farm under paragraph (1).
       ``(3) Effect of failure to make election.--If the producers 
     on a farm fail to make the election under paragraph (1), or 
     fail to timely notify the Secretary of the selected option as 
     required by paragraph (2), the eligible owners and producers 
     on the farm shall be deemed to have made the election 
     described in paragraph (1)(B) for the purpose of determining 
     the contract acreages for all contract commodities on the 
     farm.
       ``(4) Application of election to all contract 
     commodities.--The election made under paragraph (1) or deemed 
     to be made under paragraph (3) with respect to a farm shall 
     apply to all of the contract commodities produced on the 
     farm.

     ``SEC. 112. ELEMENTS OF CONTRACTS.

       ``(a) Time for Contracting.--
       ``(1) Commencement.--To the extent practicable, the 
     Secretary shall commence entering into contracts not later 
     than 45 days after the date of enactment of the Agriculture, 
     Conservation, and Rural Enhancement Act of 2002.
       ``(2) Deadline.--Except as provided in paragraph (3), the 
     Secretary may not enter into a contract after the date that 
     is 180 days after the date of enactment of that Act.
       ``(3) Conservation reserve land.--
       ``(A) In general.--At the beginning of each fiscal year, 
     the Secretary shall allow an eligible owner or producer on a 
     farm covered by a conservation reserve contract entered into 
     under section 1231 of the Food Security Act of 1985 (16 
     U.S.C. 3831) that terminated after the date specified in 
     paragraph (2) to enter into or expand a contract to cover the 
     eligible cropland of the farm that was subject to the former 
     conservation reserve contract.
       ``(B) Election.--For the fiscal year and crop year for 
     which a contract acreage adjustment under subparagraph (A) is 
     first made, the eligible owners and producers on the farm 
     shall elect to receive--
       ``(i) direct payments and counter-cyclical payments under 
     sections 113 and 114, respectively, with respect to the 
     acreage added to the farm under this paragraph; or
       ``(ii) a prorated payment under the conservation reserve 
     contract.
       ``(b) Duration of Contract.--
       ``(1) Beginning date.--The term of a contract shall begin 
     with--
       ``(A) the 2002 crop of a contract commodity; or
       ``(B) in the case of acreage that was subject to a 
     conservation reserve contract described in subsection (a)(3), 
     the date the contract was entered into or expanded to cover 
     the acreage.
       ``(2) Ending date.--Subject to sections 116 and 117, the 
     term of a contract shall extend through the 2006 crop, unless 
     earlier terminated by the eligible owners or producers on a 
     farm.

     ``SEC. 113. DIRECT PAYMENTS.

       ``(a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments available to 
     eligible owners and producers on a farm that have entered 
     into a contract to receive payments under this section.
       ``(b) Payment Amount.--The amount of a direct payment to be 
     paid to the eligible owners and producers on a farm for a 
     contract commodity for a fiscal year under this section shall 
     be obtained by multiplying--
       ``(1) the payment rate for the contract commodity specified 
     in subsection (c);
       ``(2) the contract acreage attributable to the contract 
     commodity for the farm; and
       ``(3) the payment yield for the contract commodity for the 
     farm.
       ``(c) Payment Rate.--The payment rates used to make direct 
     payments with respect to contract commodities for a fiscal 
     year under this section are as follows:
       ``(1) Wheat.--In the case of wheat:
       ``(A) For each of fiscal years 2002 and 2003, $0.450 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.225 per 
     bushel.

[[Page S1011]]

       ``(C) For fiscal year 2006, $0.113 per bushel.
       ``(2) Corn.--In the case of corn:
       ``(A) For each of fiscal years 2002 and 2003, $0.270 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.135 per 
     bushel.
       ``(C) For fiscal year 2006, $0.068 per bushel.
       ``(3) Grain sorghum.--In the case of grain sorghum:
       ``(A) For the 2002 fiscal year, $0.310 per bushel.
       ``(B) For the 2003 fiscal year, $0.270 per bushel.
       ``(C) For each of fiscal years 2004 and 2005, $0.135 per 
     bushel.
       ``(D) For fiscal year 2006, $0.068 per bushel.
       ``(4) Barley.--In the case of barley:
       ``(A) For each of fiscal years 2002 and 2003, $0.200 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.100 per 
     bushel.
       ``(C) For fiscal year 2006, $0.050 per bushel.
       ``(5) Oats.--In the case of oats:
       ``(A) For each of fiscal years 2002 and 2003, $0.050 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.025 per 
     bushel.
       ``(C) For fiscal year 2006, $0.013 per bushel.
       ``(6) Upland cotton.--In the case of upland cotton:
       ``(A) For each of fiscal years 2002 and 2003, $0.130 per 
     pound.
       ``(B) For each of fiscal years 2004 and 2005, $0.065 per 
     pound.
       ``(C) For fiscal year 2006, $0.0325 per pound.
       ``(7) Rice.--In the case of rice:
       ``(A) For each of fiscal years 2002 and 2003, $2.450 per 
     hundredweight.
       ``(B) For each of fiscal years 2004 and 2006, $2.40 per 
     hundredweight.
       ``(8) Soybeans.--In the case of soybeans:
       ``(A) For each of fiscal years 2002 and 2003, $0.550 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.275 per 
     bushel.
       ``(C) For fiscal year 2006, $0.138 per bushel.
       ``(9) Oilseeds (other than soybeans).--In the case of 
     oilseeds (other than soybeans):
       ``(A) For each of fiscal years 2002 and 2003, $0.010 per 
     pound.
       ``(B) For each of fiscal years 2004 and 2005, $0.005 per 
     pound.
       ``(C) For fiscal year 2006, $0.0025 per pound.
       ``(d) Time for Payments.--
       ``(1) Initial payment.--At the option of the eligible 
     owners and producers on a farm, the Secretary shall pay 50 
     percent of the direct payment for a crop of a contract 
     commodity for the eligible owners and producers on the farm 
     on or after December 1 of the fiscal year, as determined by 
     the Secretary.
       ``(2) Final payment.--The Secretary shall pay the final 
     amount of the direct payment that is payable to the eligible 
     owners and producers on a farm for a contract commodity under 
     subsection (a) (less the amount of any initial payment made 
     to the producers on the farm of the contract commodity under 
     paragraph (1)) not later than September 30 of the fiscal 
     year, as determined by the Secretary.

     ``SEC. 114. COUNTER-CYCLICAL PAYMENTS.

       ``(a) In General.--For each of the 2002 through 2006 crop 
     years, the Secretary shall make counter-cyclical payments to 
     eligible owners and producers on a farm of each contract 
     commodity that have entered into a contract to receive 
     payments under this section.
       ``(b) Payment Amount.--The amount of the payments made to 
     eligible owners and producers on a farm for a crop of a 
     contract commodity under this section shall equal the amount 
     obtained by multiplying--
       ``(1) the payment rate for the contract commodity specified 
     in subsection (c);
       ``(2) the contract acreage attributable to the contract 
     commodity for the farm; and
       ``(3) the payment yield for the contract commodity for the 
     farm.
       ``(c) Payment Rates.--
       ``(1) In general.--The payment rate for a crop of a 
     contract commodity under subsection (b)(1) shall equal the 
     difference between--
       ``(A) the income protection price for the contract 
     commodity established under paragraph (2); and
       ``(B) the total of--
       ``(i) the higher of--

       ``(I) the average price of the contract commodity during 
     the first 5 months of the marketing year of the contract 
     commodity, as determined by the Secretary; and
       ``(II) the loan rate for the crop of the contract commodity 
     under section 132; and

       ``(ii) the direct payment for the contract commodity under 
     section 113 for the fiscal year that precedes the date of a 
     payment under this section.
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.45 per bushel.
       ``(B) Corn, $2.35 per bushel.
       ``(C) Grain sorghum, $2.35 per bushel.
       ``(D) Barley, $2.20 per bushel.
       ``(E) Oats, $1.55 per bushel.
       ``(F) Upland cotton, $0.680 per pound.
       ``(G) Rice, $9.30 per hundredweight.
       ``(H) Soybeans, $5.75 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.105 per pound.
       ``(d) Time for Payment.--The Secretary shall make counter-
     cyclical payments for each of the 2002 through 2006 crop 
     years not later than 190 days after the beginning of 
     marketing year for the crop of the contract commodity.''.

     SEC. 112. VIOLATIONS OF CONTRACTS.

       Section 116 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7216) is amended--
       (1) in the first sentence of subsection (a)--
       (A) by striking ``subsection (b)'' and inserting 
     ``subsections (b) and (e)''; and
       (B) by striking ``section 111(a)'' and inserting ``this 
     subtitle'';
       (2) in subsection (b), by striking ``If'' and inserting 
     ``Except as provided in subsection (e), if''; and
       (3) by adding at the end the following:
       ``(e) Planting Flexibility.--In the case of a first 
     violation of section 118(b) by an eligible owner or producer 
     that has entered into a contract and that acted in good 
     faith, in lieu of terminating the contract under subsection 
     (a), the Secretary shall require a refund or reduce a future 
     contract payment under subsection (b) in an amount that does 
     not exceed twice the amount otherwise payable under the 
     contract on the number of acres involved in the violation.''.

     SEC. 113. PLANTING FLEXIBILITY.

       Section 118(b) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7218(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on contract 
     acreage:
       ``(A) Fruits.
       ``(B) Vegetables (other than lentils, mung beans, dry peas, 
     and chickpeas).
       ``(C) In the case of the 2003 and subsequent crops of an 
     agricultural commodity, wild rice.''; and
       (2) in paragraph (2)(C), by striking ``1991 through 1995'' 
     and inserting ``1996 through 2001''.

     SEC. 114. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS 
                   ACCOUNTS.

       Subtitle B of title I of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7211 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 119. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS 
                   ACCOUNTS.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross revenue.--The term `adjusted gross 
     revenue' means the adjusted gross income for all agricultural 
     enterprises of a producer in a year, excluding revenue earned 
     from nonagricultural sources, as determined by the 
     Secretary--
       ``(A) by taking into account gross receipts from the sale 
     of crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       ``(B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A));
       ``(C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       ``(D) as represented on--
       ``(i) a schedule F of the Federal income tax returns of the 
     producer; or
       ``(ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       ``(2) Agricultural enterprise.--The term `agricultural 
     enterprise' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       ``(3) Average adjusted gross revenue.--The term `average 
     adjusted gross revenue' means--
       ``(A) the average of the adjusted gross revenue of a 
     producer for each of the preceding 5 taxable years; or
       ``(B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       ``(4) Producer.--The term `producer' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       ``(A) shares in the risk of producing, or provides a 
     material contribution in producing, an agricultural commodity 
     for the applicable year;
       ``(B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       ``(C)(i) during each of the preceding 5 taxable years, has 
     filed--
       ``(I) a schedule F of the Federal income tax returns; or
       ``(II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       ``(ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       ``(D)(i) has earned at least $50,000 in average adjusted 
     gross revenue over the preceding 5 taxable years;
       ``(ii) is a limited resource farmer or rancher, as 
     determined by the Secretary; or
       ``(iii) in the case of a beginning farmer or rancher or 
     other producer that does not have average adjusted gross 
     revenue for the preceding 5 taxable years, has at least 
     $50,000 in estimated income from all agricultural enterprises 
     for the applicable year, as determined by the Secretary.
       ``(b) Establishment.--For each of fiscal years 2003 through 
     2005, the Secretary shall establish a pilot program in 3 
     States (as determined by the Secretary) under which a 
     producer may establish a farm counter-cyclical savings 
     account in the name of the producer in a bank or financial 
     institution selected by the producer and approved by the 
     Secretary.
       ``(c) Content of Account.--A farm counter-cyclical savings 
     account shall consist of--
       ``(1) contributions of the producer; and
       ``(2) matching contributions of the Secretary.
       ``(d) Producer Contributions.--A producer may deposit such 
     amounts in the account of the producer as the producer 
     considers appropriate.

[[Page S1012]]

       ``(e) Matching Contributions.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall provide a matching contribution on the 
     amount deposited by the producer into the account.
       ``(2) Amount.--Subject to paragraph (3), the amount of a 
     matching contribution that the Secretary shall provide under 
     paragraph (1) shall be equal to 2 percent of the average 
     adjusted gross revenue of the producer.
       ``(3) Maximum contributions for individual producer.--The 
     amount of matching contributions that may be provided by the 
     Secretary for an individual producer under this subsection 
     shall not exceed $5,000 for any applicable fiscal year.
       ``(4) Maximum contributions for all producers in a State.--
     The total amount of matching contributions that may be 
     provided by the Secretary for all producers in a State under 
     this subsection shall not exceed $4,000,000 for each of 
     fiscal years 2003 through 2005.
       ``(5) Date for matching contributions.--The Secretary shall 
     provide the matching contributions required for a producer 
     under paragraph (1) as of the date that a majority of the 
     covered commodities grown by the producer are harvested.
       ``(f) Interest.--Funds deposited into the account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       ``(g) Use.--Funds credited to the account--
       ``(1) shall be available for withdrawal by a producer, in 
     accordance with subsection (h); and
       ``(2) may be used for purposes determined by the producer.
       ``(h) Withdrawal.--
       ``(1) In general.--Subject to paragraph (2), in any year, a 
     producer may withdraw funds from the account in an amount 
     that is equal to--
       ``(A) 90 percent of average adjusted gross revenue of the 
     producer for the previous 5 years; minus
       ``(B) the adjusted gross revenue of the producer in that 
     year.
       ``(2) Retirement.--A producer that ceases to be actively 
     engaged in farming, as determined by the Secretary--
       ``(A) may withdraw the full balance from, and close, the 
     account; and
       ``(B) may not establish another account.
       ``(i) Administration.--The Secretary shall administer this 
     section through the Farm Service Agency and local, county, 
     and area offices of the Department of Agriculture.''.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

     SEC. 121. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                   DEFICIENCY PAYMENTS.

       (a) In General.--Sections 131(a) and 137 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7231(a), 7237) are amended by striking ``2002'' each place it 
     appears and inserting ``2006''.
       (b) Upland Cotton.--Sections 134(e)(1), 136, and 136A(a) of 
     the Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7234(e)(1), 7236, 7236a(a)) are amended by striking 
     ``2003'' each place it appears and inserting ``2007''.

     SEC. 122. ELIGIBLE PRODUCTION.

       Section 131 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7231) is amended by striking 
     subsection (b) and inserting the following:
       ``(b) Eligible Production.--The producers on a farm shall 
     be eligible for a marketing loan under subsection (a) for any 
     quantity of a loan commodity produced on the farm.''.

     SEC. 123. LOAN RATES.

       (a) In General.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7232) is amended 
     to read as follows:

     ``SEC. 132. LOAN RATES.

       ``(a) In General.--Subject to subsection (b), the loan rate 
     for a marketing assistance loan under section 131 for a loan 
     commodity shall be--
       ``(1) in the case of wheat, $3.00 per bushel;
       ``(2) in the case of corn, $2.08 per bushel;
       ``(3) in the case of grain sorghum, $2.08 per bushel;
       ``(4) in the case of barley, $2.00 per bushel;
       ``(5) in the case of oats, $1.50 per bushel;
       ``(6) in the case of upland cotton, $0.55 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.50 per hundredweight;
       ``(9) in the case of soybeans, $5.20 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.095 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool (including unshorn 
     pelts), $0.40 per pound;
       ``(13) in the case of honey, $0.60 per pound;
       ``(14) in the case of dry peas, $6.78 per hundredweight;
       ``(15) in the case of lentils, $12.79 per hundredweight;
       ``(16) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(17) in the case of small chickpeas, $8.10 per 
     hundredweight.
       ``(b) Adjustments.--
       ``(1) In general.--The Secretary may make appropriate 
     adjustments in the loan rates for any loan commodity for 
     differences in grade, type, quality, location, and other 
     factors.
       ``(2) Manner.--The adjustments under this subsection shall, 
     to the maximum extent practicable, be made in such manner 
     that the average loan rate for the loan commodity will, on 
     the basis of the anticipated incidence of the factors 
     described in paragraph (1), be equal to the loan rate 
     provided under this section.''.
       (b) Conforming Amendment.--Section 162 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7282) is repealed.

     SEC. 124. TERM OF LOANS.

       Section 133 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7233) is amended to read as 
     follows:

     ``SEC. 133. TERM OF LOANS.

       ``In the case of each loan commodity, a marketing loan 
     under section 131 shall have a term of 9 months beginning on 
     the first day of the first month after the month in which the 
     loan is made.''.

     SEC. 125. REPAYMENT OF LOANS.

       Section 134(a) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7234(a)) is amended--
       (1) by striking ``wheat, corn, grain sorghum, barley, oats, 
     and oilseeds'' and inserting ``a loan commodity (other than 
     upland cotton, rice, and extra long staple cotton)''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries.''.

     SEC. 126. LOAN DEFICIENCY PAYMENTS.

       Section 135 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7235) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--The Secretary may make loan deficiency 
     payments available to producers on a farm that, although 
     eligible to obtain a marketing assistance loan under section 
     131 with respect to a loan commodity, agree to forgo 
     obtaining the loan for the loan commodity in return for 
     payments under this section.''; and
       (2) by striking subsections (e) and (f) and inserting the 
     following:
       ``(e) Beneficial Interest.--
       ``(1) In general.--A producer shall be eligible for a 
     payment for a loan commodity under this section only if the 
     producer has a beneficial interest in the loan commodity, as 
     determined by the Secretary.
       ``(2) Application.--The Secretary shall make a payment 
     under this section to the producers on a farm with respect to 
     a quantity of a loan commodity as of the earlier of--
       ``(A) the date on which the producers on the farm marketed 
     or otherwise lost beneficial interest in the loan commodity, 
     as determined by the Secretary; or
       ``(B) the date the producers on the farm request the 
     payment.
       ``(3) 2001 crop.--Notwithstanding paragraphs (1) and (2), 
     effective for the 2001 crop only, if a producer eligible for 
     a payment under this section loses beneficial interest in the 
     covered commodity, the producer shall be eligible for the 
     payment determined as of the date the producer lost 
     beneficial interest in the covered commodity, as determined 
     by the Secretary.''.

     SEC. 127. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       (a) In General.--Subtitle C of title I of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231 
     et seq.) is amended by adding at the end the following:

     ``SEC. 138. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       ``(a) In General.--For each crop of wheat, grain sorghum, 
     barley, and oats, in the case of the producers on a farm that 
     would be eligible for a loan deficiency payment under section 
     135 for wheat, grain sorghum, barley, or oats, but that 
     elects to use acreage planted to the wheat, grain sorghum, 
     barley, or oats for the grazing of livestock, the Secretary 
     shall make a payment to the producers on the farm under this 
     section if the producers on the farm enter into an agreement 
     with the Secretary to forgo any other harvesting of the 
     wheat, grain sorghum, barley, or oats on the acreage.
       ``(b) Payment Amount.--The amount of a payment made to the 
     producers on a farm under this section shall be equal to the 
     amount obtained by multiplying--
       ``(1) the loan deficiency payment rate determined under 
     section 135(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       ``(2) the payment quantity obtained by multiplying--
       ``(A) the quantity of the grazed acreage on the farm with 
     respect to which the producers on the farm elect to forgo 
     harvesting of wheat, grain sorghum, barley, or oats; and
       ``(B) the payment yield for that contract commodity on the 
     farm.
       ``(c) Time, Manner, and Availability of Payment.--
       ``(1) Time and manner.--A payment under this section shall 
     be made at the same time and in the same manner as loan 
     deficiency payments are made under section 135.
       ``(2) Availability.--The Secretary shall establish an 
     availability period for the payment authorized by this 
     section that is consistent with the availability period for 
     wheat, grain sorghum, barley, and oats established by the 
     Secretary for marketing assistance loans authorized by this 
     subtitle.
       ``(d) Prohibition on Crop Insurance or Noninsured Crop 
     Assistance.--The producers on a farm shall not be eligible 
     for insurance under the Federal Crop Insurance Act (7 U.S.C. 
     1501 et seq.) or noninsured crop assistance under section 196 
     with respect to a crop of wheat, grain sorghum, barley, or 
     oats planted on acreage that the producers on the farm elect, 
     in the agreement required by subsection (a), to use for the 
     grazing of livestock in lieu of any other harvesting of the 
     crop.''.

[[Page S1013]]

     SEC. 128. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       Section 136(a) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7236(a)) is amended by adding at 
     the end the following:
       ``(4) Application of threshold.--During the period 
     beginning on the date of this paragraph and ending on July 
     31, 2003, the Secretary shall make the calculations under 
     paragraphs (1)(A) and (2) and subsection (b)(1)(B) without 
     regard to the 1.25 cent threshold provided under those 
     paragraphs and subsection.''.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

     SEC. 131. MILK PRICE SUPPORT PROGRAM.

       Section 141 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7251) (as amended by section 
     772(a) of Public Law 107-76) is amended in subsections (b)(5) 
     and (h) by striking ``May 31, 2002'' each place it appears 
     and inserting ``December 31, 2006''.

     SEC. 132. NATIONAL DAIRY PROGRAM.

       The Federal Agriculture Improvement and Reform Act of 1996 
     (as amended by section 772(b) of Public Law 107-76) is 
     amended by inserting after section 141 (7 U.S.C. 7251) the 
     following:

     ``SEC. 142. NATIONAL DAIRY PROGRAM.

       ``(a) Dairy Market Loss Assistance Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Average price of milk.--The term `average price of 
     milk' means the blending of the prices of milk for use as 
     fluid milk and in cheese, ice cream, butter, and nonfat dry 
     milk in the marketing area where the milk was marketed, as 
     determined by the Secretary.
       ``(B) Producer.--The term `producer' means an individual or 
     entity that directly or indirectly (as determined by the 
     Secretary) shares in the risk of producing milk.
       ``(2) Program.--Subject to paragraph (8), the Secretary 
     shall provide market loss assistance payments to producers on 
     a dairy farm with respect to the production of milk in a 
     State other than a participating State (as defined in 
     subsection (b)(1)) that is marketed during the period 
     beginning on December 1, 2001, and ending on September 30, 
     2005.
       ``(3) Amount.--Subject to paragraph (8), payments to a 
     producer under this subsection shall be calculated by 
     multiplying--
       ``(A) the payment quantity for the producer during the 
     applicable quarter established under paragraph (4); by
       ``(B) the payment rate established under paragraph (5).
       ``(4) Payment quantity.--
       ``(A) In general.--Subject to subparagraph (B), the payment 
     quantity for a producer during the applicable quarter under 
     this subsection shall be equal to the quantity of milk 
     produced and marketed by the producer during the quarter.
       ``(B) Limitation.--The payment quantity for a producer 
     during the applicable fiscal year under this subsection shall 
     not exceed the milk marketing base for the producer 
     established under subsection (c).
       ``(5) Payment rate.--The payment rate for a payment under 
     this subsection shall be calculated by multiplying (as 
     determined by the Secretary)--
       ``(A) 40 percent; by
       ``(B) the amount by which--
       ``(i) the average price of milk during the applicable 
     quarter; is less than
       ``(ii) the average price of milk for the same quarter 
     during each of the previous 5 years.
       ``(6) Reporting of production.--The Secretary may require 
     producers that receive payments under this subsection to 
     report the quantity of milk produced and marketed by the 
     producer on the dairy farm of the producer, in a manner 
     determined by the Secretary.
       ``(7) Timing of payments.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     payments made under this subsection shall be made on a 
     quarterly basis.
       ``(B) Payments for fiscal year 2002.--Payments under this 
     subsection for fiscal year 2002 shall not be made before 
     October 1, 2002.
       ``(8) Funding.--The Secretary shall use not more than 
     $1,500,000,000 of funds of the Commodity Credit Corporation 
     to carry out this subsection.
       ``(b) Northeast Dairy Market Loss Payments.--
       ``(1) Definitions.--In this subsection:
       ``(A) Class i milk.--The term `Class I milk' means milk 
     (including milk components) classified as Class I milk under 
     a Federal milk marketing order.
       ``(B) Eligible production.--The term `eligible production' 
     means milk produced by a producer in a participating State.
       ``(C) Federal milk marketing order.--The term `Federal milk 
     marketing order' means an order issued under section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937.
       ``(D) Participating state.--The term `participating State' 
     means Connecticut, Delaware, Maine, Maryland, Massachusetts, 
     New Hampshire, New Jersey, New York, Pennsylvania, Rhode 
     Island, Vermont, and West Virginia.
       ``(E) Producer.--The term `producer' means an individual or 
     entity that directly or indirectly (as determined by the 
     Secretary)--
       ``(i) shares in the risk of producing milk; and
       ``(ii) makes contributions (including land, labor, 
     management, equipment, or capital) to the dairy farming 
     operation of the individual or entity that are at least 
     commensurate with the share of the individual or entity of 
     the proceeds of the operation.
       ``(2) Payments.--Subject to paragraph (9), the Secretary 
     shall offer to enter into contracts with producers on a dairy 
     farm located in a participating State under which the 
     producers receive payments on eligible production in exchange 
     for compliance on the farm with--
       ``(A) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       ``(B) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(3) Amount.--Payments to a producer under this subsection 
     shall be calculated by multiplying (as determined by the 
     Secretary)--
       ``(A) the payment quantity for the producer during the 
     applicable month established under paragraph (4);
       ``(B) the amount equal to--
       ``(i) $16.94 per hundredweight; less
       ``(ii) the Class I milk price per hundredweight in Boston 
     under the applicable Federal milk marketing order; by
       ``(C) 45 percent.
       ``(4) Payment quantity.--
       ``(A) In general.--Subject to subparagraph (B), the payment 
     quantity for a producer during the applicable month under 
     this subsection shall be equal to the quantity of milk 
     produced and marketed by the producer during the month.
       ``(B) Limitation.--The payment quantity for a producer 
     during the applicable fiscal year under this subsection shall 
     not exceed the milk marketing base for the producer 
     established under subsection (c).
       ``(5) Payments.--A payment under a contract under this 
     subsection shall be made on a monthly basis not later than 60 
     days after the last day of the month for which the payment is 
     made.
       ``(6) Signup.--The Secretary shall offer to enter into 
     contracts under this subsection during the period beginning 
     on December 1, 2001, and ending on September 30, 2005.
       ``(7) Duration of contract.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and paragraph (8), any contract entered into by producers on 
     a dairy farm under this subsection shall cover eligible 
     production marketed by the producers on the dairy farm during 
     the period starting with the first day of month the producers 
     on the dairy farm enter into the contract and ending on 
     September 30, 2005.
       ``(B) Violations.--If a producer violates the contract, the 
     Secretary may--
       ``(i) terminate the contract and allow the producer to 
     retain any payments received under the contract; or
       ``(ii) allow the contract to remain in effect and require 
     the producer to repay a portion of the payments received 
     under the contract based on the severity of the violation.
       ``(8) Transition rule.--In addition to any payment that is 
     otherwise available under this subsection, if the producers 
     on a dairy farm enter into a contract under this subsection 
     by March 1, 2002, the Secretary shall make a payment under 
     this subsection on the quantity of eligible production of the 
     producer marketed during the period beginning on December 1, 
     2001, and ending on January 1, 2002.
       ``(9) Funding.--The Secretary shall use not more than 
     $500,000,000 of funds of the Commodity Credit Corporation to 
     carry out this subsection.
       ``(c) Milk Marketing Base.--
       ``(1) Definition of new producer.--In this subsection, the 
     term `new producer' means a producer of milk that did not 
     have an interest in the production of milk during any of 1999 
     through 2001 fiscal years.
       ``(2) Established producers.--In the case of a producer of 
     milk other than a new producer, the milk marketing base of a 
     producer for a fiscal year under this section shall be equal 
     to the lesser of--
       ``(A) the average quantity of milk marketed for commercial 
     use in which the producer has had a direct or indirect 
     interest during each of the 1999 through 2001 fiscal years; 
     or
       ``(B) 8,000,000 pounds.
       ``(3) New producers.--In the case of a new producer, the 
     milk marketing base of the new producer under this section 
     shall be equal to--
       ``(A) during each of the first 3 fiscal years of milk 
     production by the new producer, 1,500,000 pounds; and
       ``(B) during each subsequent year of milk production, the 
     lesser of--
       ``(i) the average quantity of milk marketed for commercial 
     use in which the producer has had a direct or indirect 
     interest during the first 3 years of milk production by the 
     new producer; or
       ``(ii) 8,000,000 pounds.
       ``(4) Adjustments.--The Secretary may provide for the 
     adjustment of any milk marketing base of a producer under 
     this subsection--
       ``(A) if the production of milk used to determine the milk 
     marketing base of the producer has been adversely affected by 
     damaging weather or a related condition (as determined by the 
     Secretary); or
       ``(B) if the adjustment is necessary to provide fair and 
     equitable treatment to tenants and sharecroppers.
       ``(5) Transfers.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a producer that is assigned a milk marketing base under this 
     subsection may not transfer the base to any person.
       ``(B) Family members.--A producer that is assigned a milk 
     marketing base under this subsection may irrevocably transfer 
     all or part of the base to a family member of the producer.
       ``(6) Schemes or devices.--If the Secretary determines that 
     any producer has adopted a scheme or device to increase the 
     milk marketing base of the producer under this subsection, 
     the producer shall become ineligible for any milk marketing 
     base under this subsection.''.

     SEC. 133. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY 
                   PROGRAMS.

       (a) Dairy Export Incentive Program.--Section 153(a) of the 
     Food Security Act of 1985 (15

[[Page S1014]]

     U.S.C. 713a-14(a)) is amended by striking ``2002'' and 
     inserting ``2006''.
       (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
     484 (7 U.S.C. 450l) is amended by striking ``1995'' and 
     inserting ``2006''.

     SEC. 134. FLUID MILK PROMOTION.

       (a) Definition of Fluid Milk Product.--Section 1999C of the 
     Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended 
     by striking paragraph (3) and inserting the following:
       ``(3) Fluid milk product.--The term `fluid milk product' 
     has the meaning given the term in--
       ``(A) section 1000.15 of title 7, Code of Federal 
     Regulations, subject to such amendments as may be made by the 
     Secretary; or
       ``(B) any successor regulation.''.
       (b) Definition of Fluid Milk Processor.--Section 1999C(4) 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is 
     amended by striking ``500,000 pounds of fluid milk products 
     in consumer-type packages per month'' and inserting 
     ``3,000,000 pounds of fluid milk products in consumer-type 
     packages per month (excluding products delivered directly to 
     the place of residence of a consumer)''.
       (c) Elimination of Order Termination Date.--Section 1999O 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is 
     amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.

     SEC. 135. DAIRY PRODUCT MANDATORY REPORTING.

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

     SEC. 136. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

       (a) Definitions.--Section 111 of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4502) is amended--
       (1) in subsection (k), by striking ``and'' at the end;
       (2) in subsection (l), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(m) the term `imported dairy product' means any dairy 
     product that is imported into the United States, including a 
     dairy product imported into the United States in the form 
     of--
       ``(1) milk, cream, and fresh and dried dairy products;
       ``(2) butter and butterfat mixtures;
       ``(3) cheese; and
       ``(4) casein and mixtures;
       ``(n) the term `importer' means a person that imports an 
     imported dairy product into the United States; and
       ``(o) the term `Customs' means the United States Customs 
     Service.''.
       (b) Representation of Importers on Board.--Section 113(b) 
     of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
     4504(b)) is amended--
       (1) by inserting ``National Dairy Promotion and Research 
     Board.--'' after ``(b)'';
       (2) by designating the first through ninth sentences as 
     paragraphs (1) through (5) and paragraphs (7) through (10), 
     respectively, and indenting the paragraphs appropriately;
       (3) in paragraph (2) (as so designated), by striking 
     ``Members'' and inserting ``Except as provided in paragraph 
     (6), the members''; and
       (4) by inserting after paragraph (5) (as so designated) the 
     following:
       ``(6) Importers.--
       ``(A) Representation.--The Secretary shall appoint not more 
     than 2 members who represent importers of dairy products and 
     are subject to assessments under the order, to reflect the 
     proportion of domestic production and imports supplying the 
     United States market, as determined by the Secretary on the 
     basis of the average volume of domestic production of dairy 
     products in proportion to the average volume of imports of 
     dairy products in the United States during the immediately 
     preceding 3 years.
       ``(B) Additional members; nominations.--The members 
     appointed under this paragraph--
       ``(i) shall be in addition to the total number of members 
     appointed under paragraph (2); and
       ``(ii) shall be appointed from nominations submitted by 
     importers under such procedures as the Secretary determines 
     to be appropriate.''.
       (c) Importer Assessment.--Section 113(g) of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is 
     amended--
       (1) by inserting ``Assessments.--'' after ``(g)'';
       (2) by designating the first through fifth sentences as 
     paragraphs (1) through (5), respectively, and indenting 
     appropriately; and
       (3) by adding at the end the following:
       ``(6) Importers.--
       ``(A) In general.--The order shall provide that each 
     importer of imported dairy products shall pay an assessment 
     to the Board in the manner prescribed by the order.
       ``(B) Time for payment.--
       ``(i) In general.--The assessment on imported dairy 
     products shall be--

       ``(I) paid by the importer to Customs at the time of the 
     entry of the products into the United States; and
       ``(II) remitted by Customs to the Board.

       ``(ii) Time of entry.--For purposes of this subparagraph, 
     entry of the products into the United States shall be 
     considered to have occurred when a dairy product is released 
     from custody of Customs and introduced into the stream of 
     commerce within the United States.
       ``(iii) Importers.--For purposes of this subparagraph, an 
     importer includes--

       ``(I) a person that holds title to a dairy product produced 
     outside the United States immediately on release by Customs; 
     and
       ``(II) a person that acts on behalf of other persons, as an 
     agent, broker, or consignee, to secure the release of a dairy 
     product from Customs and introduce the released dairy product 
     into the stream of commerce.

       ``(C) Rate.--The rate of assessment on imported dairy 
     products shall be determined in the same manner as the rate 
     of assessment per hundredweight or the equivalent of milk.
       ``(D) Value of products.--For the purpose of determining 
     the assessment on imported dairy products under subparagraph 
     (C), the value to be placed on imported dairy products shall 
     be established by the Secretary in a fair and equitable 
     manner.
       ``(E) Use of assessments on imported dairy products.--
     Assessments collected on imported dairy products shall not be 
     used for foreign market promotion of United States dairy 
     products.''.
       (d) Records.--Section 113(k) of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in 
     the first sentence by striking ``person receiving'' and 
     inserting ``importer of imported dairy products, each person 
     receiving''.
       (e) Importer Eligibility To Vote in Referendum.--Section 
     116(b) of the Dairy Production Stabilization Act of 1983 (7 
     U.S.C. 4507(b)) is amended--
       (1) in the first sentence, by inserting ``and importers'' 
     after ``producers'' each place it appears; and
       (2) in the second sentence, by inserting after ``commercial 
     use'' the following: ``and importers voting in the referendum 
     (that have been engaged in the importation of dairy products 
     into the United States during the applicable period, as 
     determined by the Secretary)''.
       (f) Conforming Amendments.--Section 110(b) of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4501(b)) is 
     amended--
       (1) in the first sentence--
       (A) by inserting after ``commercial use'' the following: 
     ``and on imported dairy products''; and
       (B) by striking ``products produced in the United States.'' 
     and inserting ``products.''; and
       (2) in the second sentence, by inserting after ``produce 
     milk'' the following: ``or the right of any person to import 
     dairy products''.

     SEC. 137. DAIRY STUDIES.

       (a) In General.--The Secretary of Agriculture shall 
     conduct--
       (1) a study of the effects of terminating all Federal 
     programs relating to price support and supply management for 
     milk and granting the consent of Congress to cooperative 
     efforts by States to manage milk prices and supply; and
       (2) a study of the effects of including in the standard of 
     identity for fluid milk a required minimum protein content 
     that is commensurate with the average nonfat solids content 
     of bovine milk produced in the United States.
       (b) Reports.--Not later than September 30, 2002, the 
     Secretary shall submit to the Committee on Agriculture of 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry a report describing the results of 
     each of the studies required under subsection (a).

                            CHAPTER 2--SUGAR

     SEC. 141. SUGAR PROGRAM.

       (a) Loan Rate Adjustments.--Section 156(c) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(c)) is amended--
       (1) by striking ``Reduction in Loan Rates'' and inserting 
     ``Loan Rate Adjustments''; and
       (2) in paragraph (1)--
       (A) by striking ``Reduction required'' and inserting ``In 
     general''; and
       (B) by striking ``shall'' and inserting ``may''.
       (b) Loan Type; Processor Assurances.--Section 156(e) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272(e)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Processor assurances.--
       ``(A) In general.--The Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for the sugar beets and sugarcane delivered by 
     producers to the processor.
       ``(B) Minimum payments.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may establish appropriate minimum payments for purposes of 
     this paragraph.
       ``(ii) Limitation.--In the case of sugar beets, the minimum 
     payment established under clause (i) shall not exceed the 
     rate of payment provided for under the applicable contract 
     between a sugar beet producer and a sugar beet processor.
       ``(C) Bankruptcy or insolvency of processors.--
       ``(i) In general.--The Secretary shall use funds of the 
     Commodity Credit Corporation to pay a producer of sugar beets 
     or sugarcane loan benefits described in clause (ii) if--

       ``(I) a processor that has entered into a contract with the 
     producer has filed for bankruptcy protection or is otherwise 
     insolvent;
       ``(II) the assurances under subparagraph (A) are not 
     adequate to ensure compliance with subparagraph (A), as 
     determined by the Secretary;
       ``(III) the producer demands payments of loan benefits 
     required under this section from the processor; and
       ``(IV) the Secretary determines that the processor is 
     unable to provide the loan benefits required under this 
     section.

       ``(ii) Amount.--The amount of loan benefits provided to a 
     producer under clause (i) shall be equal to--

       ``(I) the maximum amount of loan benefits the producer 
     would have been entitled to receive under this section during 
     the 30-day period beginning on the final settlement date 
     provided for

[[Page S1015]]

     in the contract between the producer and processor; less
       ``(II) any such benefits received by the producer from the 
     processor.

       ``(iii) Administration.--On payment to a producer under 
     clause (i), the Secretary shall--

       ``(I) be subrogated to all claims of the producer against 
     the processor and other persons responsible for nonpayment; 
     and
       ``(II) have authority to pursue such claims as are 
     necessary to recover the benefits not paid to the producer by 
     the processor.''; and

       (2) by adding at the end the following:
       ``(3) Administration.--The Secretary may not impose or 
     enforce any prenotification or similar administrative 
     requirement that has the effect of preventing a processor 
     from electing to forfeit the loan collateral on the maturity 
     of the loan.''.
       (c) Termination of Marketing Assessment.--Effective October 
     1, 2001, section 156 of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking 
     subsection (f).
       (d) Termination of Forfeiture Penalty.--Section 156 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272) is amended by striking subsection (g).
       (e) In-Process Sugar.--Section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) (as amended by subsections (c) and (d)) is amended by 
     inserting after subsection (e) the following:
       ``(f) Loans for In-Process Sugar.--
       ``(1) Definition of in-process sugars and syrups.--In this 
     subsection, the term `in-process sugars and syrups' does not 
     include raw sugar, liquid sugar, invert sugar, invert syrup, 
     or other finished product that is otherwise eligible for a 
     loan under subsection (a) or (b).
       ``(2) Availability.--The Secretary shall make nonrecourse 
     loans available to processors of a crop of domestically grown 
     sugarcane and sugar beets for in-process sugars and syrups 
     derived from the crop.
       ``(3) Loan rate.--The loan rate shall be equal to 80 
     percent of the loan rate applicable to raw cane sugar or 
     refined beet sugar, as determined by the Secretary on the 
     basis of the source material for the in-process sugars and 
     syrups.
       ``(4) Further processing on forfeiture.--
       ``(A) In general.--As a condition of the forfeiture of in-
     process sugars and syrups serving as collateral for a loan 
     under paragraph (2), the processor shall, within such 
     reasonable time period as the Secretary may prescribe and at 
     no cost to the Commodity Credit Corporation, convert the in-
     process sugars and syrups into raw cane sugar or refined beet 
     sugar of acceptable grade and quality for sugars eligible for 
     loans under subsection (a) or (b).
       ``(B) Transfer to corporation.--Once the in-process sugars 
     and syrups are fully processed into raw cane sugar or refined 
     beet sugar, the processor shall transfer the sugar to the 
     Commodity Credit Corporation.
       ``(C) Payment to processor.--On transfer of the sugar, the 
     Secretary shall make a payment to the processor in an amount 
     equal to the amount obtained by multiplying--
       ``(i) the difference between--

       ``(I) the loan rate for raw cane sugar or refined beet 
     sugar, as appropriate; and
       ``(II) the loan rate the processor received under paragraph 
     (3); by

       ``(ii) the quantity of sugar transferred to the Secretary.
       ``(5) Loan conversion.--If the processor does not forfeit 
     the collateral as described in paragraph (4), but instead 
     further processes the in-process sugars and syrups into raw 
     cane sugar or refined beet sugar and repays the loan on the 
     in-process sugars and syrups, the processor may obtain a loan 
     under subsection (a) or (b) for the raw cane sugar or refined 
     beet sugar, as appropriate.''.
       (f) Administration of Program.--Section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) (as amended by subsection (e)) is amended by inserting 
     after subsection (f) the following:
       ``(g) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       ``(1) In general.--Subject to subsection (e)(3), to the 
     maximum extent practicable, the Secretary shall operate the 
     program established under this section at no cost to the 
     Federal Government by avoiding the forfeiture of sugar to the 
     Commodity Credit Corporation.
       ``(2) Inventory disposition.--
       ``(A) In general.--To carry out paragraph (1), the 
     Commodity Credit Corporation may accept bids to obtain raw 
     cane sugar or refined beet sugar in the inventory of the 
     Commodity Credit Corporation from (or otherwise make 
     available such commodities, on appropriate terms and 
     conditions, to) processors of sugarcane and processors of 
     sugar beets (acting in conjunction with the producers of the 
     sugarcane or sugar beets processed by the processors) in 
     return for the reduction of production of raw cane sugar or 
     refined beet sugar, as appropriate.
       ``(B) Additional authority.--The authority provided under 
     this paragraph is in addition to any authority of the 
     Commodity Credit Corporation under any other law.''.
       (g) Information Reporting.--Section 156(h) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(h)) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively;
       (2) by inserting after paragraph (1) the following:
       ``(2) Duty of producers to report.--
       ``(A) Proportionate share states.--As a condition of a loan 
     made to a processor for the benefit of a producer, the 
     Secretary shall require each producer of sugarcane located in 
     a State (other than the Commonwealth of Puerto Rico) in which 
     there are in excess of 250 producers of sugarcane to report, 
     in the manner prescribed by the Secretary, the sugarcane 
     yields and acres planted to sugarcane of the producer.
       ``(B) Other states.--The Secretary may require each 
     producer of sugarcane or sugar beets not covered by paragraph 
     (1) to report, in a manner prescribed by the Secretary, the 
     yields of, and acres planted to, sugarcane or sugar beets, 
     respectively, of the producer.
       ``(3) Duty of importers to report.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require an importer of sugars, syrups, or 
     molasses to be used for human consumption or to be used for 
     the extraction of sugar for human consumption to report, in 
     the manner prescribed by the Secretary, the quantities of the 
     products imported by the importer and the sugar content or 
     equivalent of the products.
       ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
     to sugars, syrups, or molasses that are within the quantities 
     of tariff-rate quotas that are subject to the lower rate of 
     duties.''; and
       (3) in paragraph (5) (as redesignated by paragraph (1)), by 
     striking ``paragraph (1)'' and inserting ``this subsection''.
       (h) Substitutability of Sugar.--Section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) is amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following:
       ``(i) Substitution of Refined Sugar.--For purposes of 
     Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff 
     Schedule of the United States and the reexport programs and 
     polyhydric alcohol program administered by the Foreign 
     Agricultural Service of the Department of Agriculture, all 
     refined sugars (whether derived from sugar beets or 
     sugarcane) produced by cane sugar refineries and beet sugar 
     processors shall be fully substitutable for the export of 
     sugar under those programs.''.
       (i) Crops.--Subsection (j) of section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) (as redesignated by subsection (h)(1)) is amended--
       (1) by striking ``(other than subsection (f))''; and
       (2) by striking ``2002'' and inserting ``2006''.
       (j) Interest Rate.--Section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283) is 
     amended--
       (1) by inserting ``(a) In General.--'' before 
     ``Notwithstanding''; and
       (2) by adding at the end the following:
       ``(b) Sugar.--For purposes of this section, raw cane sugar, 
     refined beet sugar, and in-process sugar eligible for a loan 
     under section 156 shall not be considered an agricultural 
     commodity.''.

     SEC. 142. STORAGE FACILITY LOANS.

       Chapter 2 of subtitle D of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7271 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 157. STORAGE FACILITY LOANS.

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

     SEC. 143. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       (a) Information Reporting.--Section 359a of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is 
     repealed.
       (b) Estimates.--Section 359b of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359bb) is amended--
       (1) in the section heading--
       (A) by inserting ``FLEXIBLE'' before ``MARKETING''; and
       (B) by striking ``AND CRYSTALLINE FRUCTOSE'';
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``Before'' and inserting ``Not later than 
     August 1 before'';
       (ii) by striking ``1992 through 1998'' and inserting ``2002 
     through 2006'';
       (iii) in subparagraph (A), by striking ``(other than 
     sugar'' and all that follows through ``stocks'';
       (iv) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (E), respectively;
       (v) by inserting after subparagraph (A) the following:
       ``(B) the quantity of sugar that would provide for 
     reasonable carryover stocks;'';
       (vi) in subparagraph (C) (as so redesignated)--

       (I) by striking ``or'' and all that follows through 
     ``beets''; and
       (II) by striking ``and'' following the semicolon;

       (vii) by inserting after subparagraph (C) (as so 
     redesignated) the following:
       ``(D) the quantity of sugar that will be available from the 
     domestic processing of sugarcane and sugar beets; and''; and

[[Page S1016]]

       (viii) in subparagraph (E) (as so redesignated)--

       (I) by striking ``quantity of sugar'' and inserting 
     ``quantity of sugars, syrups, and molasses'';
       (II) by inserting ``human'' after ``imported for'' the 
     first place it appears;
       (III) by inserting after ``consumption'' the first place it 
     appears the following: ``or to be used for the extraction of 
     sugar for human consumption'';
       (IV) by striking ``year'' and inserting ``year, whether 
     such articles are under a tariff-rate quota or are in excess 
     or outside of a tariff-rate quota''; and
       (V) by striking ``(other than sugar'' and all that follows 
     through ``carry-in stocks'';

       (B) by redesignating paragraph (2) as paragraph (3);
       (C) by inserting after paragraph (1) the following:
       ``(2) Exclusion.--The estimates under this subsection shall 
     not apply to sugar imported for the production of polyhydric 
     alcohol or to any sugar refined and reexported in refined 
     form or in products containing sugar.''; and
       (D) in paragraph (3) (as so redesignated)--
       (i) in the paragraph heading, by striking ``Quarterly 
     reestimates'' and inserting ``Reestimates''; and
       (ii) by inserting ``as necessary, but'' after ``a fiscal 
     year'';
       (3) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--By the beginning of each fiscal year, 
     the Secretary shall establish for that fiscal year 
     appropriate allotments under section 359c for the marketing 
     by processors of sugar processed from sugar beets and from 
     domestically-produced sugarcane at a level that the Secretary 
     estimates will result in no forfeitures of sugar to the 
     Commodity Credit Corporation under the loan program for sugar 
     established under section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272).''; and
       (B) in paragraph (2), by striking ``or crystalline 
     fructose'';
       (4) by striking subsection (c);
       (5) by redesignating subsection (d) as subsection (c); and
       (6) in subsection (c) (as so redesignated)--
       (A) by striking paragraph (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (C) in paragraph (2) (as so redesignated)--
       (i) by striking ``or manufacturer'' and all that follows 
     through ``(2)''; and
       (ii) by striking ``or crystalline fructose''.
       (c) Establishment.--Section 359c of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
       (1) in the section heading, by inserting ``FLEXIBLE'' after 
     ``OF'';
       (2) in subsection (a), by inserting ``flexible'' after 
     ``establish'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``1,250,000'' and 
     inserting ``1,532,000''; and
       (B) in paragraph (2), by striking ``to the maximum extent 
     practicable'';
       (4) by striking subsection (c) and inserting the following:
       ``(c) Marketing Allotment for Sugar Derived from Sugar 
     Beets and Sugar Derived from Sugarcane.--The overall 
     allotment quantity for the fiscal year shall be allotted 
     between--
       ``(1) sugar derived from sugar beets by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 54.35 percent; and
       ``(2) sugar derived from sugarcane by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 45.65 percent.'';
       (5) by striking subsection (d) and inserting the following:
       ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
       ``(1) Cane sugar.--Each marketing allotment for cane sugar 
     established under this section may only be filled with sugar 
     processed from domestically grown sugarcane.
       ``(2) Beet sugar.--Each marketing allotment for beet sugar 
     established under this section may only be filled with sugar 
     domestically processed from sugar beets.'';
       (6) by striking subsection (e);
       (7) by redesignating subsection (f) as subsection (e);
       (8) in subsection (e) (as so redesignated)--
       (A) by striking ``The allotment'' and inserting the 
     following:
       ``(1) In general.--The allotment'';
       (B) in paragraph (1) (as so redesignated)--
       (i) by striking ``the 5'' and inserting ``the'';
       (ii) by inserting after ``sugarcane is produced,'' the 
     following: ``after a hearing (if requested by the affected 
     sugarcane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe,''; and
       (iii) by striking ``on the basis of past marketings'' and 
     all that follows through ``allotments'' and inserting ``as 
     provided in this subsection and section 359d(a)(2)(A)(iv)''; 
     and
       (C) by inserting after paragraph (1) (as so designated) the 
     following:
       ``(2) Offshore allotment.--
       ``(A) Collectively.--Prior to the allotment of sugar 
     derived from sugarcane to any other State, 325,000 short 
     tons, raw value shall be allotted to the offshore States.
       ``(B) Individually.--The collective offshore State 
     allotment provided for under subparagraph (A) shall be 
     further allotted among the offshore States in which sugarcane 
     is produced, after a hearing (if requested by the affected 
     sugarcane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe, in a fair and 
     equitable manner on the basis of--
       ``(i) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(ii) the ability of processors to market the sugar 
     covered under the allotments for the crop year; and
       ``(iii) past processings of sugar from sugarcane based on 
     the 3-year average of the 1998 through 2000 crop years.
       ``(3) Mainland allotment.--The allotment for sugar derived 
     from sugarcane, less the amount provided for under paragraph 
     (2), shall be allotted among the mainland States in the 
     United States in which sugarcane is produced, after a hearing 
     (if requested by the affected sugarcane processors and 
     growers) and on such notice as the Secretary by regulation 
     may prescribe, in a fair and equitable manner on the basis 
     of--
       ``(A) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(B) the ability of processors to market the sugar covered 
     under the allotments for the crop year; and
       ``(C) past processings of sugar from sugarcane, based on 
     the 3 crop years with the greatest processings (in the 
     mainland States collectively) during the 1991 through 2000 
     crop years.'';
       (9) by inserting after subsection (e) (as so redesignated) 
     the following:
       ``(f) Filling Cane Sugar Allotments.--Except as provided in 
     section 359e, a State cane sugar allotment established under 
     subsection (e) for a fiscal year may be filled only with 
     sugar processed from sugarcane grown in the State covered by 
     the allotment.'';
       (10) in subsection (g)--
       (A) in paragraph (1), by striking ``359b(a)(2)--'' and all 
     that follows through the comma at the end of subparagraph (C) 
     and inserting ``359b(a)(3), adjust upward or downward 
     marketing allotments in a fair and equitable manner'';
       (B) in paragraph (2), by striking ``359f(b)'' and inserting 
     ``359f(c)''; and
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``Reductions'' 
     and inserting ``Carry-over of reductions'';
       (ii) by inserting after ``this subsection, if'' the 
     following: ``at the time of the reduction'';
       (iii) by striking ``price support'' and inserting 
     ``nonrecourse'';
       (iv) by striking ``206'' and all that follows through ``the 
     allotment'' and inserting ``156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272),''; and
       (v) by striking ``, if any,''; and
       (11) by striking subsection (h) and inserting the 
     following:
       ``(h) Suspension of Allotments.--Whenever the Secretary 
     estimates or reestimates under section 359b(a), or has reason 
     to believe, that imports of sugars, syrups or molasses for 
     human consumption or to be used for the extraction of sugar 
     for human consumption, whether under a tariff-rate quota or 
     in excess or outside of a tariff-rate quota, will exceed 
     1,532,000 short tons (raw value equivalent), and that the 
     imports would lead to a reduction of the overall allotment 
     quantity, the Secretary shall suspend the marketing 
     allotments established under this section until such time as 
     the imports have been restricted, eliminated, or reduced to 
     or below the level of 1,532,000 short tons (raw value 
     equivalent).''.
       (d) Allocation.--Section 359d(a)(2) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(i) In general.--The Secretary'';
       (B) in the first sentence of clause (i) (as so 
     designated)--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugarcane processors and growers''; and
       (ii) by striking ``by taking'' and all that follows through 
     ``allotment allocated.'' and inserting ``under this 
     subparagraph.''; and
       (C) by inserting after clause (i) the following:
       ``(ii) Multiple processor states.--Except as provided in 
     clauses (iii) and (iv), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single State based on--

       ``(I) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from among 
     the 1996 through 2000 crops;
       ``(II) the ability of processors to market sugar covered by 
     that portion of the allotment allocated for the crop year; 
     and
       ``(III) past processings of sugar from sugarcane, based on 
     the average of the 3 highest years of production during the 
     1996 through 2000 crop years.

       ``(iii) Talisman processing facility.--In the case of 
     allotments under clause (ii) attributable to the operations 
     of the Talisman processing facility before the date of 
     enactment of this clause, the Secretary shall allocate the 
     allotment among processors in the State under clause (i) in 
     accordance with the agreements of March 25 and 26, 1999, 
     between the affected processors and the Secretary of the 
     Interior.
       ``(iv) Proportionate share states.--In the case of States 
     subject to section 359f(c), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single state based on--

       ``(I) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from among 
     the 1997 through 2001 crop years;
       ``(II) the ability of processors to market sugar covered by 
     that portion of the allotments allocated for the crop year; 
     and

[[Page S1017]]

       ``(III) past processings of sugar from sugarcane, based on 
     the average of the 2 highest crop years of crop production 
     during the 1997 through 2001 crop years.

       ``(v) New entrants.--

       ``(I) In general.--Notwithstanding clauses (ii) and (iv), 
     the Secretary, on application of any processor that begins 
     processing sugarcane on or after the date of enactment of 
     this clause, and after a hearing (if requested by the 
     affected sugarcane processors and growers) and on such notice 
     as the Secretary by regulation may prescribe, may provide the 
     processor with an allocation that provides a fair, efficient 
     and equitable distribution of the allocations from the 
     allotment for the State in which the processor is located.
       ``(II) Proportionate share states.--In the case of 
     proportionate share States, the Secretary shall establish 
     proportionate shares in a quantity sufficient to produce the 
     sugarcane required to satisfy the allocations.
       ``(III) Limitations.--The allotment for a new processor 
     under this clause shall not exceed--

       ``(aa) in the case of the first fiscal year of operation of 
     a new processor, 50,000 short tons (raw value); and
       ``(bb) in the case of each subsequent fiscal year of 
     operation of the new processor, a quantity established by the 
     Secretary in accordance with this clause and the criteria 
     described in clause (ii) or (iii), as applicable.

       ``(IV) New entrant states.--

       ``(aa) In general.--Notwithstanding subparagraphs (A) and 
     (C) of section 359c(e)(3), to accommodate an allocation under 
     subclause (I) to a new processor located in a new entrant 
     mainland State, the Secretary shall provide the new entrant 
     mainland State with an allotment.
       ``(bb) Effect on other allotments.--The allotment to any 
     new entrant mainland State shall be subtracted, on a pro rata 
     basis, from the allotments otherwise allotted to each 
     mainland State under section 359c(e)(3).

       ``(V) Adverse effects.--Before providing an initial 
     processor allocation or State allotment to a new entrant 
     processor or a new entrant State under this clause, the 
     Secretary shall take into consideration any adverse effects 
     that the provision of the allocation or allotment may have on 
     existing cane processors and producers in mainland States.
       ``(VI) Ability to market.--Consistent with section 359c and 
     this section, any processor allocation or State allotment 
     made to a new entrant processor or to a new entrant State 
     under this clause shall be provided only after the applicant 
     processor, or the applicable processors in the State, have 
     demonstrated the ability to process, produce, and market 
     (including the transfer or delivery of the raw cane sugar to 
     a refinery for further processing or marketing) raw cane 
     sugar for the crop year for which the allotment is 
     applicable.
       ``(VII) Prohibition.--Not more than 1 processor allocation 
     provided under this clause may be applicable to any 
     individual sugar processing facility.

       ``(vi) Transfer of ownership.--Except as otherwise provided 
     in section 359f(c)(8), if a sugarcane processor is sold or 
     otherwise transferred to another owner or closed as part of 
     an affiliated corporate group processing consolidation, the 
     Secretary shall transfer the allotment allocation for the 
     processor to the purchaser, new owner, successor in interest, 
     or any remaining processor of an affiliated entity, as 
     applicable, of the processor.''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Beet sugar.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph and sections 359c(g), 359e(b), and 359f(b), the 
     Secretary shall make allocations for beet sugar among beet 
     sugar processors for each crop year that allotments are in 
     effect on the basis of the adjusted weighted average quantity 
     of beet sugar produced by the processors for each of the 1998 
     through 2000 crop years, as determined under this 
     subparagraph.
       ``(ii) Quantity.--The quantity of an allocation made for a 
     beet sugar processor for a crop year under clause (i) shall 
     bear the same ratio to the quantity of allocations made for 
     all beet sugar processors for the crop year as the adjusted 
     weighted average quantity of beet sugar produced by the 
     processor (as determined under clauses (iii) and (iv)) bears 
     to the total of the adjusted weighted average quantities of 
     beet sugar produced by all processors (as so determined).
       ``(iii) Weighted average quantity.--Subject to clause (iv), 
     the weighted quantity of beet sugar produced by a beet sugar 
     processor during each of the 1998 through 2000 crop years 
     shall be (as determined by the Secretary)--

       ``(I) in the case of the 1998 crop year, 25 percent of the 
     quantity of beet sugar produced by the processor during the 
     crop year;
       ``(II) in the case of the 1999 crop year, 35 percent of the 
     quantity of beet sugar produced by the processor during the 
     crop year; and
       ``(III) in the case of the 2000 crop year, 40 percent of 
     the quantity of beet sugar produced by the processor 
     (including any quantity of sugar received from the Commodity 
     Credit Corporation) during the crop year.

       ``(iv) Adjustments.--

       ``(I) In general.--The Secretary shall adjust the weighted 
     average quantity of beet sugar produced by a beet sugar 
     processor during the 1998 through 2000 crop years under 
     clause (iii) if the Secretary determines that, during any 
     such crop year, the processor--

       ``(aa) opened or closed a sugar beet processing factory;
       ``(bb) constructed a molasses desugarization facility; or
       ``(cc) suffered substantial quality losses on sugar beets 
     stored during any such crop year.

       ``(II) Quantity.--The quantity of beet sugar produced by a 
     beet sugar processor under clause (iii) shall be--

       ``(aa) in the case of a processor that opened a sugar beet 
     processing factory, increased by 1.25 percent of the total of 
     the adjusted weighted average quantities of beet sugar 
     produced by all processors during the 1998 through 2000 crop 
     years (without consideration of any adjustment under this 
     clause) for each sugar beet processing factory that is opened 
     by the processor;
       ``(bb) in the case of a processor that closed a sugar beet 
     processing factory, decreased by 1.25 percent of the total of 
     the adjusted weighted average quantities of beet sugar 
     produced by all processors during the 1998 through 2000 crop 
     years (without consideration of any adjustment under this 
     clause) for each sugar beet processing factory that is closed 
     by the processor;
       ``(cc) in the case of a processor that constructed a 
     molasses desugarization facility, increased by 0.25 percent 
     of the total of the adjusted weighted average quantities of 
     beet sugar produced by all processors during the 1998 through 
     2000 crop years (without consideration of any adjustment 
     under this clause) for each molasses desugarization facility 
     that is constructed by the processor; and
       ``(dd) in the case of a processor that suffered substantial 
     quality losses on stored sugar beets, increased by 1.25 
     percent of the total of the adjusted weighted average 
     quantities of beet sugar produced by all processors during 
     the 1998 through 2000 crop years (without consideration of 
     any adjustment under this clause).
       ``(v) Permanent termination of operations of a processor.--
     If a processor of beet sugar has been dissolved, liquidated 
     in a bankruptcy proceeding, or otherwise has permanently 
     terminated operations (other than in conjunction with a sale 
     or other disposition of the processor or the assets of the 
     processor), the Secretary shall--

       ``(I) eliminate the allocation of the processor provided 
     under this section; and
       ``(II) distribute the allocation to other beet sugar 
     processors on a pro rata basis.

       ``(vi) Sale of all assets of a processor to another 
     processor.--If a processor of beet sugar (or all of the 
     assets of the processor) is sold to another processor of beet 
     sugar, the Secretary shall transfer the allocation of the 
     seller to the buyer unless the allocation has been 
     distributed to other sugar beet processors under clause (v).
       ``(vii) Sale of factories of a processor to another 
     processor.--

       ``(I) In general.--Subject to clauses (v) and (vi), if 1 or 
     more factories of a processor of beet sugar (but not all of 
     the assets of the processor) are sold to another processor of 
     beet sugar during a fiscal year, the Secretary shall assign a 
     pro rata portion of the allocation of the seller to the 
     allocation of the buyer to reflect the historical 
     contribution of the production of the sold factory or 
     factories to the total allocation of the seller.
       ``(II) Application of allocation.--The assignment of the 
     allocation under subclause (I) shall apply--

       ``(aa) during the remainder of the fiscal year during which 
     the sale described in subclause (I) occurs (referred to in 
     this clause as the `initial fiscal year'); and
       ``(bb) each subsequent fiscal year (referred in this clause 
     as a `subsequent fiscal year'), subject to subclause (III).

       ``(III) Subsequent fiscal years.--

       ``(aa) In general.--The assignment of the allocation under 
     subclause (I) shall apply during each subsequent fiscal year 
     unless the acquired factory or factories continue in 
     operation for less than the initial fiscal year and the first 
     subsequent fiscal year.
       ``(bb) Reassignment.--If the acquired factory or factories 
     do not continue in operation for the complete initial fiscal 
     year and the first subsequent fiscal year, the Secretary 
     shall reassign the temporary allocation to other processors 
     of beet sugar on a pro rata basis.

       ``(IV) Use of other factories to fill allocation.--If the 
     transferred allocation to the buyer for the purchased factory 
     or factories cannot be filled by the production by the 
     purchased factory or factories for the initial fiscal year or 
     a subsequent fiscal year, the remainder of the transferred 
     allocation may be filled by beet sugar produced by the buyer 
     from other factories of the buyer.

       ``(viii) New entrants starting production or reopening 
     factories.--If an individual or entity that does not have an 
     allocation of beet sugar under this part (referred to in this 
     subparagraph as a `new entrant') starts processing sugar 
     beets after the date of enactment of this clause, or acquires 
     and reopens a factory that produced beet sugar during the 
     period of the 1998 through 2000 crop years that (at the time 
     of acquisition) has no allocation associated with the factory 
     under this part, the Secretary shall--

       ``(I) assign an allocation for beet sugar to the new 
     entrant that provides a fair and equitable distribution of 
     the allocations for beet sugar; and
       ``(II) reduce the allocations for beet sugar of all other 
     processors on a pro rata basis to reflect the new allocation.

       ``(ix) New entrants acquiring ongoing factories with 
     production history.--If a new entrant acquires a factory that 
     has production history during the period of the 1998 through 
     2000 crop years and that is producing beet sugar at the time 
     the allocations are made from a processor that has an 
     allocation of beet sugar, the Secretary shall transfer a 
     portion of the allocation of the seller to the new entrant to 
     reflect the historical contribution of the production of the 
     sold factory to the total allocation of the seller.''.
       (e) Reassignment.--Section 359e(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking the ``and'' after the 
     semicolon;

[[Page S1018]]

       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments, the deficit cannot be 
     completely eliminated, the Secretary shall reassign the 
     estimated quantity of the deficit to the sale of any 
     inventories of sugar held by the Commodity Credit 
     Corporation; and''; and
       (D) in subparagraph (D) (as so redesignated), by inserting 
     ``and sales'' after ``reassignments''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking the ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``reassign the 
     remainder to imports.'' and inserting ``use the estimated 
     quantity of the deficit for the sale of any inventories of 
     sugar held by the Commodity Credit Corporation; and''; and
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments and sales, the deficit 
     cannot be completely eliminated, the Secretary shall reassign 
     the remainder to imports.''.
       (f) Producer Provisions.--Section 359f of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
       (1) in subsection (a)--
       (A) by striking ``Whenever'' and inserting the following:
       ``(1) In general.--If'';
       (B) in the second sentence, by striking ``processor's 
     allocation'' and inserting ``allocation to the processor'';
       (C) by striking ``Any dispute'' and inserting the 
     following:
       ``(2) Arbitration.--
       ``(A) In general.--Any dispute''; and
       (D) by adding at the end the following:
       ``(B) Period.--The arbitration shall, to the maximum extent 
     practicable, be--
       ``(i) commenced not more than 45 days after the request; 
     and
       ``(ii) completed not more than 60 days after the 
     request.'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following:
       ``(b) Sugar Beet Processing Facility Closures.--
       ``(1) In general.--If a sugar beet processing facility is 
     closed and the sugar beet growers that previously delivered 
     beets to the facility elect to deliver their beets to another 
     processing company, the growers may petition the Secretary to 
     modify allocations under this part to allow the delivery.
       ``(2) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers elect to deliver their sugar 
     beets, with the approval of the processing company, to a 
     level that does not exceed the processing capacity of the 
     processing company, to accommodate the change in deliveries.
       ``(3) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation shall be unaffected.
       ``(4) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''; and
       (4) in subsection (c) (as so redesignated)--
       (A) in paragraph (3)(A), by striking ``the preceding 5 
     years'' and inserting ``the 2 highest years from among the 
     1999, 2000, and 2001 crop years'';
       (B) in paragraph (4)(A), by striking ``each'' and all that 
     follows through ``in effect'' and inserting ``the 2 highest 
     of the 1999, 2000, and 2001 crop years''; and
       (C) by inserting after paragraph (7) the following:
       ``(8) Processing facility closures.--
       ``(A) In general.--If a sugarcane processing facility 
     subject to this subsection is closed and the sugarcane 
     growers that delivered sugarcane to the facility prior to 
     closure elect to deliver their sugarcane to another 
     processing company, the growers may petition the Secretary to 
     modify allocations under this part to allow the delivery.
       ``(B) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers elect to deliver the sugarcane, 
     with the approval of the processing company, to a level that 
     does not exceed the processing capacity of the processing 
     company, to accommodate the change in deliveries.
       ``(C) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation shall be unaffected.
       ``(D) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''.
       (g) Conforming Amendments.--
       (1) Part VII of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by 
     striking the part heading and inserting the following:

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

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

     ``SEC. 359A. DEFINITIONS.

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

     SEC. 144. REALLOCATION OF SUGAR QUOTA.

       Subtitle B of title III of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1311 et seq.) is amended by adding at the 
     end the following:

        ``PART VIII--REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS

     ``SEC. 360. REALLOCATING CERTAIN SUGAR QUOTAS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, on or after June 1 of each year, the United States Trade 
     Representative, in consultation with the Secretary, shall 
     determine the amount of the quota of cane sugar used by each 
     qualified supplying country for that fiscal year, and may 
     reallocate the unused quota for that fiscal year among 
     qualified supplying countries.
       ``(b) Definitions.--In this section:
       ``(1) Qualified supplying country.--The term `qualified 
     supplying country' means one of the following 40 foreign 
     countries that is allowed to export cane sugar to the United 
     States under an agreement or any other country with which the 
     United States has an agreement relating to the importation of 
     cane sugar:

    Argentina
    Australia
    Barbados
    Belize
    Bolivia
    Brazil
    Colombia
    Congo
    Costa Rica
    Dominican Republic
    Ecuador
    El Salvador
    Fiji
    Gabon
    Guatemala
    Guyana
    Haiti
    Honduras
    India
    Ivory Coast
    Jamaica
    Madagascar
    Malawi
    Mauritius
    Mexico
    Mozambique
    Nicaragua
    Panama
    Papua New Guinea
    Paraguay
    Peru
    Philippines
    St. Kitts and Nevis
    South Africa
    Swaziland
    Taiwan
    Thailand
    Trinidad-Tobago
    Uruguay
    Zimbabwe.
       ``(2) Cane sugar.--The term `cane sugar' has the same 
     meaning as the term has under part VII.''.

                           CHAPTER 3--PEANUTS

     SEC. 151. PEANUT PROGRAM.

       (a) In General.--Subtitle D of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7251 et seq.) is 
     amended by adding at the end the following:

                          ``CHAPTER 3--PEANUTS

     ``SEC. 158A. DEFINITIONS.

       ``In this chapter:
       ``(1) Counter-cyclical payment.--The term `counter-cyclical 
     payment' means a payment made to peanut producers on a farm 
     under section 158D.
       ``(2) Direct payment.--The term `direct payment' means a 
     payment made to peanut producers on a farm under section 
     158C.
       ``(3) Effective price.--The term `effective price' means 
     the price calculated by the Secretary under section 158D for 
     peanuts to determine whether counter-cyclical payments are 
     required to be made under section 158D for a crop year.
       ``(4) Historical peanut producers on a farm.--The term 
     `historical peanut producers on a farm' means the peanut 
     producers on a farm in the United States that produced or 
     were prevented from planting peanuts during any of the 1998 
     through 2001 crop years.
       ``(5) Income protection price.--The term `income protection 
     price' means the price per ton of peanuts used to determine 
     the payment rate for counter-cyclical payments.
       ``(6) Payment acres.--The term `payment acres' means 85 
     percent of the peanut acres on a farm, as established under 
     section 158B, on

[[Page S1019]]

     which direct payments and counter-cyclical payments are made.
       ``(7) Peanut acres.--The term `peanut acres' means the 
     number of acres assigned to a particular farm for historical 
     peanut producers on a farm pursuant to section 158B(b).
       ``(8) Payment yield.--The term `payment yield' means the 
     yield assigned to a farm by historical peanut producers on 
     the farm pursuant to section 158B(b).
       ``(9) Peanut producer.--The term `peanut producer' means an 
     owner, operator, landlord, tenant, or sharecropper that--
       ``(A) shares in the risk of producing a crop of peanuts in 
     the United States; and
       ``(B) is entitled to share in the crop available for 
     marketing from the farm or would have shared in the crop had 
     the crop been produced.

     ``SEC. 158B. PAYMENT YIELDS, PEANUT ACRES, AND PAYMENT ACRES 
                   FOR FARMS.

       ``(a) Payment Yields and Payment Acres.--
       ``(1) Average yield.--
       ``(A) In general.--The Secretary shall determine, for each 
     historical peanut producer, the average yield for peanuts on 
     all farms of the historical peanut producer for the 1998 
     through 2001 crop years, excluding any crop year during which 
     the producers did not produce peanuts.
       ``(B) Assigned yields.--Except as provided in subparagraph 
     (C), if, for any of the crop years referred to in 
     subparagraph (A) in which peanuts were planted on a farm by 
     the historical peanut producer, the historical peanut 
     producer has satisfied the eligibility criteria established 
     to carry out section 1102 of the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public 
     Law 105-277), the Secretary shall assign to the historical 
     peanut producer a yield for the farm for the crop year equal 
     to 65 percent of the average yield for peanuts for the 
     previous 5 crop years.
       ``(C) Selection by producer.--If a county in which a 
     historical peanut producer described in subparagraph (A) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in subparagraph (A), for the purposes of 
     determining the 4-year average yield for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       ``(i) the State 4-year average yield of peanuts produced in 
     the State; or
       ``(ii) the average yield for the historical peanut producer 
     determined by the Secretary under subparagraph (A).
       ``(2) Acreage average.--The Secretary shall determine, for 
     the historical peanut producer, the 4-year average of--
       ``(A) acreage planted to peanuts on all farms for harvest 
     during the 1998 through 2001 crop years; and
       ``(B) any acreage that was prevented from being planting to 
     peanuts during the crop years because of drought, flood, or 
     other natural disaster, or other condition beyond the control 
     of the historical peanut producer, as determined by the 
     Secretary.
       ``(3) Time for determinations; factors.--
       ``(A) Timing.--The Secretary shall make the determinations 
     required by this subsection not later than 90 days after the 
     date of enactment of this section.
       ``(B) Factors.--In making the determinations, the Secretary 
     shall take into account changes in the number and identity of 
     historical peanut producers sharing in the risk of producing 
     a peanut crop since the 1998 crop year, including providing a 
     method for the assignment of average acres and average yield 
     to a farm when a historical peanut producer is no longer 
     living or an entity composed of historical peanut producers 
     has been dissolved.
       ``(b) Assignment of Yield and Acres to Farms.--
       ``(1) Assignment by historical peanut producers.--For the 
     first crop year that begins after the date of enactment of 
     this section, the Secretary shall provide each historical 
     peanut producer in a State that produced a contract 
     commodity, or another agricultural commodity for which a 
     production adjustment program is carried out under the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.), 
     or was prevented from planting a contract commodity, or 
     another such agricultural commodity, during the 2001 crop 
     year with an opportunity to assign the average peanut yield 
     and average acreage determined under subsection (a) for the 
     historical peanut producer to cropland on a farm in the 
     State.
       ``(2) Assignment to cropland.--In the case of a historical 
     peanut producer on a farm that did not produce a contract 
     commodity, or another such agricultural commodity, and was 
     not prevented from planting a contract commodity or another 
     such agricultural commodity during the 2001 crop year, the 
     average peanut yield and average acreage determined under 
     subsection (a) shall be assigned to the cropland on the farm.
       ``(3) Payment yield.--The average of all of the yields 
     assigned by historical peanut producers to a farm shall be 
     considered to be the payment yield for the farm for the 
     purpose of making direct payments and counter-cyclical 
     payments under this chapter.
       ``(4) Peanut acres.--Subject to subsection (e), the total 
     number of acres assigned by historical peanut producers to a 
     farm shall be considered to be the peanut acres for the farm 
     for the purpose of making direct payments and counter-
     cyclical payments under this chapter.
       ``(c) Election.--In the case of the first crop year that 
     begins after the date of enactment of this subsection, a 
     historical peanut producer shall notify the Secretary of the 
     assignments described in subsection (b)(1) not later than 180 
     days after the date of enactment of this section.
       ``(d) Payment Acres.--The payment acres for peanuts on a 
     farm shall be equal to 85 percent of the peanut acres 
     assigned to the farm.
       ``(e) Prevention of Excess Peanut Acres.--
       ``(1) Required reduction.--If the total of the peanut acres 
     for a farm, together with the acreage described in paragraph 
     (3), exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of peanut acres for the 
     farm or contract acreage for 1 or more covered commodities 
     for the farm as necessary so that the total of the peanut 
     acres and acreage described in paragraph (3) does not exceed 
     the actual cropland acreage of the farm.
       ``(2) Selection of acres.--The Secretary shall give the 
     peanut producers on the farm the opportunity to select the 
     peanut acres or contract acreage against which the reduction 
     will be made.
       ``(3) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include--
       ``(A) any contract acreage for the farm under subtitle B;
       ``(B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       ``(C) any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       ``(3) Double-cropped acreage.--In applying paragraph (1), 
     the Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

     ``SEC. 158C. DIRECT PAYMENTS FOR PEANUTS.

       ``(a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments to peanut 
     producers on a farm with peanut acres under section 158B and 
     a payment yield for peanuts under section 158B.
       ``(b) Payment Rate.--The payment rate used to make direct 
     payments with respect to peanuts for a fiscal year shall be 
     equal to $0.018 per pound.
       ``(c) Payment Amount.--The amount of the direct payment to 
     be paid to the peanut producers on a farm for peanuts for a 
     fiscal year shall be equal to the product obtained by 
     multiplying--
       ``(1) the payment rate specified in subsection (b);
       ``(2) the payment acres on the farm; by
       ``(3) the payment yield for the farm.
       ``(d) Time for Payment.--
       ``(1) In general.--The Secretary shall make direct 
     payments--
       ``(A) in the case of the 2002 fiscal year, during the 
     period beginning December 1, 2001, and ending September 30, 
     2002; and
       ``(B) in the case of each of the 2003 through 2006 fiscal 
     years, not later than September 30 of the fiscal year.
       ``(2) Advance payments.--
       ``(A) In general.--At the option of the peanut producers on 
     a farm, the Secretary shall pay 50 percent of the direct 
     payment for a fiscal year for the producers on the farm on a 
     date selected by the peanut producers on the farm.
       ``(B) Selected date.--The selected date for a fiscal year 
     shall be on or after December 1 of the fiscal year.
       ``(C) Subsequent fiscal years.--The peanut producers on a 
     farm may change the selected date for a subsequent fiscal 
     year by providing advance notice to the Secretary.
       ``(3) Repayment of advance payments.--If any peanut 
     producer on a farm that receives an advance direct payment 
     for a fiscal year ceases to be eligible for a direct payment 
     before the date the direct payment would have been made by 
     the Secretary under paragraph (1), the peanut producer shall 
     be responsible for repaying the Secretary the full amount of 
     the advance payment.

     ``SEC. 158D. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

       ``(a) In General.--For each of the 2002 through 2006 crops 
     of peanuts, the Secretary shall make counter-cyclical 
     payments with respect to peanuts if the Secretary determines 
     that the effective price for peanuts is less than the income 
     protection price for peanuts.
       ``(b) Effective Price.--For purposes of subsection (a), the 
     effective price for peanuts is equal to the total of--
       ``(1) the greater of--
       ``(A) the national average market price received by peanut 
     producers during the marketing season for peanuts, as 
     determined by the Secretary; or
       ``(B) the national average loan rate for a marketing 
     assistance loan for peanuts under section 158G in effect for 
     the marketing season for peanuts under this chapter; and
       ``(2) the payment rate in effect for peanuts under section 
     158C for the purpose of making direct payments with respect 
     to peanuts.
       ``(c) Income Protection Price.--For purposes of subsection 
     (a), the income protection price for peanuts shall be equal 
     to $520 per ton.
       ``(d) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the peanut producers on a farm for a 
     crop year shall be equal to the product obtained by 
     multiplying--
       ``(1) the payment rate specified in subsection (e);
       ``(2) the payment acres on the farm; by
       ``(3) the payment yield for the farm.
       ``(e) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to peanuts for a crop year 
     shall be equal to the difference between--
       ``(1) the income protection price for peanuts; and
       ``(2) the effective price determined under subsection (b) 
     for peanuts.
       ``(f) Time for Payments.--
       ``(1) In general.--The Secretary shall make counter-
     cyclical payments to peanut producers on a farm under this 
     section for a crop of peanuts as soon as practicable after 
     determining under subsection (a) that the payments are 
     required for the crop year.

[[Page S1020]]

       ``(2) Partial payment.--
       ``(A) In general.--At the option of the Secretary, the 
     peanut producers on a farm may elect to receive up to 40 
     percent of the projected counter-cyclical payment to be made 
     under this section for a crop of peanuts on completion of the 
     first 2 months of the marketing season for the crop, as 
     determined by the Secretary.
       ``(B) Repayment.--The peanut producers on a farm shall 
     repay to the Secretary the amount, if any, by which the 
     payment received by producers on the farm (including any 
     partial payments) exceeds the counter-cyclical payment the 
     producers on the farm are eligible for under this section.

     ``SEC. 158E. PRODUCER AGREEMENTS.

       ``(a) Compliance With Certain Requirements.--
       ``(1) Requirements.--Before the peanut producers on a farm 
     may receive direct payments or counter-cyclical payments with 
     respect to the farm, the peanut producers on the farm shall 
     agree during the fiscal year or crop year, respectively, for 
     which the payments are received, in exchange for the 
     payments--
       ``(A) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       ``(B) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       ``(C) to comply with the planting flexibility requirements 
     of section 158F; and
       ``(D) to use a quantity of the land on the farm equal to 
     the peanut acres, for an agricultural or conserving use, and 
     not for a nonagricultural commercial or industrial use, as 
     determined by the Secretary.
       ``(2) Compliance.--The Secretary may promulgate such 
     regulations as the Secretary considers necessary to ensure 
     peanut producer compliance with paragraph (1).
       ``(b) Foreclosure.--
       ``(1) In general.--The Secretary shall not require the 
     peanut producers on a farm to repay a direct payment or 
     counter-cyclical payment if a foreclosure has occurred with 
     respect to the farm and the Secretary determines that 
     forgiving the repayment is appropriate to provide fair and 
     equitable treatment.
       ``(2) Compliance with requirements.--
       ``(A) In general.--This subsection shall not void the 
     responsibilities of the peanut producers on a farm under 
     subsection (a) if the peanut producers on the farm continue 
     or resume operation, or control, of the farm.
       ``(B) Applicable requirements.--On the resumption of 
     operation or control over the farm by the peanut producers on 
     the farm, the requirements of subsection (a) in effect on the 
     date of the foreclosure shall apply.
       ``(c) Transfer or Change of Interest in Farm.--
       ``(1) Termination.--Except as provided in paragraph (5), a 
     transfer of (or change in) the interest of the peanut 
     producers on a farm in peanut acres for which direct payments 
     or counter-cyclical payments are made shall result in the 
     termination of the payments with respect to the peanut acres, 
     unless the transferee or owner of the acreage agrees to 
     assume all obligations under subsection (a).
       ``(2) Effective date.--The termination takes effect on the 
     date of the transfer or change.
       ``(3) Transfer of payment base and yield.--The Secretary 
     shall not impose any restriction on the transfer of the 
     peanut acres or payment yield of a farm as part of a transfer 
     or change described in paragraph (1).
       ``(4) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     purposes of subsection (a), as determined by the Secretary.
       ``(5) Exception.--If a peanut producer entitled to a direct 
     payment or counter-cyclical payment dies, becomes 
     incompetent, or is otherwise unable to receive the payment, 
     the Secretary shall make the payment, in accordance with 
     regulations promulgated by the Secretary.
       ``(d) Acreage Reports.--As a condition on the receipt of 
     any benefits under this chapter, the Secretary shall require 
     the peanut producers on a farm to submit to the Secretary 
     acreage reports for the farm.
       ``(e) Tenants and Sharecroppers.--In carrying out this 
     chapter, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(f) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the peanut producers on a farm on a fair and equitable 
     basis.

     ``SEC. 158F. PLANTING FLEXIBILITY.

       ``(a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on peanut acres on a farm.
       ``(b) Limitations and Exceptions Regarding Certain 
     Commodities.--
       ``(1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on peanut acres:
       ``(A) Fruits.
       ``(B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       ``(C) In the case of the 2003 and subsequent crops of an 
     agricultural commodity, wild rice.
       ``(2) Exceptions.--Paragraph (1) shall not limit the 
     planting of an agricultural commodity specified in paragraph 
     (1)--
       ``(A) in any region in which there is a history of double-
     cropping of peanuts with agricultural commodities specified 
     in paragraph (1), as determined by the Secretary, in which 
     case the double-cropping shall be permitted;
       ``(B) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in paragraph 
     (1) on peanut acres, except that direct payments and counter-
     cyclical payments shall be reduced by an acre for each acre 
     planted to the agricultural commodity; or
       ``(C) by the peanut producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in paragraph (1), except 
     that--
       ``(i) the quantity planted may not exceed the average 
     annual planting history of the agricultural commodity by the 
     peanut producers on the farm during the 1996 through 2001 
     crop years (excluding any crop year in which no plantings 
     were made), as determined by the Secretary; and
       ``(ii) direct payments and counter-cyclical payments shall 
     be reduced by an acre for each acre planted to the 
     agricultural commodity.

     ``SEC. 158G. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR PEANUTS.

       ``(a) Nonrecourse Loans Available.--
       ``(1) Availability.--For each of the 2002 through 2006 
     crops of peanuts, the Secretary shall make available to 
     peanut producers on a farm nonrecourse marketing assistance 
     loans for peanuts produced on the farm.
       ``(2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       ``(3) Eligible production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under this 
     section for any quantity of peanuts produced on the farm.
       ``(4) Treatment of certain commingled commodities.--In 
     carrying out this section, the Secretary shall make loans to 
     peanut producers on a farm that would be eligible to obtain a 
     marketing assistance loan but for the fact the peanuts owned 
     by the peanut producers on the farm are commingled with other 
     peanuts of other producers in facilities unlicensed for the 
     storage of agricultural commodities by the Secretary or a 
     State licensing authority, if the peanut producers on a farm 
     obtaining the loan agree to immediately redeem the loan 
     collateral in accordance with section 158E.
       ``(5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     peanut producers on a farm through--
       ``(A) a designated marketing association of peanut 
     producers that is approved by the Secretary, which may own or 
     construct necessary storage facilities. In the Southeast and 
     Southwest areas such designated marketing association shall 
     be operated primarily on behalf of peanut producers. The 
     designated area marketing association shall be allowed to 
     form marketing pools for peanuts by type and quality, 
     including the creation of a separate pool for Valencia 
     peanuts in New Mexico;
       ``(B) the Farm Service Agency; or
       ``(C) a loan servicing agent approved by the Secretary.
       ``(6) Loan servicing agent.--If approved by a majority of 
     historical peanut producers in a State voting in a referendum 
     conducted by the Secretary, as a condition of the Secretary's 
     approval of an entity to serve as a loan servicing agent or 
     to handle or store peanuts for producers that receive any 
     marketing loan benefits in the State, the entity shall agree 
     to provide adequate storage (if available) and handling of 
     peanuts at the commercial rate to other approved loan 
     servicing agents and marketing associations.
       ``(b) Loan Rate.--The loan rate for a marketing assistance 
     loan for peanuts under subsection (a) shall be equal to $400 
     per ton.
       ``(c) Term of Loan.--
       ``(1) In general.--A marketing assistance loan for peanuts 
     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.
       ``(2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       ``(d) Repayment Rate.--The Secretary shall permit peanut 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       ``(1) the loan rate established for peanuts under 
     subsection (b), plus interest (as determined by the 
     Secretary); or
       ``(2) a rate that the Secretary determines will--
       ``(A) minimize potential loan forfeitures;
       ``(B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       ``(C) minimize the cost incurred by the Federal Government 
     in storing peanuts; and
       ``(D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       ``(e) Loan Deficiency Payments.--
       ``(1) Availability.--The Secretary may make loan deficiency 
     payments available to the peanut producers on a farm that, 
     although eligible to obtain a marketing assistance loan for 
     peanuts under subsection (a), agree to forgo obtaining the 
     loan for the peanuts in return for payments under this 
     subsection.
       ``(2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       ``(A) the loan payment rate determined under paragraph (3) 
     for peanuts; by
       ``(B) the quantity of the peanuts produced by the peanut 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under subsection (a).
       ``(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); 
     exceeds
       ``(B) the rate at which a loan may be repaid under 
     subsection (d).
       ``(4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the

[[Page S1021]]

     peanut producers on a farm with respect to a quantity of 
     peanuts as of the earlier of--
       ``(A) the date on which the peanut producers on the farm 
     marketed or otherwise lost beneficial interest in the 
     peanuts, as determined by the Secretary; or
       ``(B) the date the peanut producers on the farm request the 
     payment.
       ``(f) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the peanut producers on a farm shall comply 
     during the term of the loan with--
       ``(1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       ``(2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(g) Reimbursable Agreements and Payment of Expenses.--To 
     the maximum extent practicable, the Secretary shall implement 
     any reimbursable agreements or provide for the payment of 
     expenses under this chapter in a manner that is consistent 
     with the implementation of the agreements or payment of the 
     expenses for other commodities.
       ``(h) Area Marketing Association Costs.--If approved by a 
     majority of historical peanut producers in a State voting in 
     a referendum conducted by the Secretary, the Secretary shall 
     deduct in a marketing assistance loan made to an area 
     marketing association in a marketing area in the State, such 
     costs as the area marketing association may reasonably incur 
     in carrying out the responsibilities, operations, and 
     activities of the association and Commodity Credit 
     Corporation under this section.
       ``(i) Definition of Commingle.--In this section and section 
     158H, the term `commingle', with respect to peanuts, means--
       ``(1) the mixing of peanuts produced on different farms by 
     the same or different producers; or
       ``(2) the mixing of peanuts pledged for marketing 
     assistance loans with peanuts that are not pledged for 
     marketing assistance loans, to facilitate storage.

     ``SEC. 158H. QUALITY IMPROVEMENT.

       ``(a) Official Inspection.--
       ``(1) In general.--All peanuts placed under a marketing 
     assistance loan under section 158G or otherwise sold or 
     marketed shall be officially inspected and graded by a 
     Federal or State inspector.
       ``(2) Accounting for commingled peanuts.--If approved by a 
     majority of historical peanut producers in a State voting in 
     a referendum conducted by the Secretary, all peanuts stored 
     commingled with peanuts covered by a marketing assistance 
     loan in the State shall be graded and exchanged on a dollar 
     value basis, unless the Secretary determines that the 
     beneficial interest in the peanuts covered by the marketing 
     assistance loan have been transferred to other parties prior 
     to demand for delivery.
       ``(b) Termination of Peanut Administrative Committee.--The 
     Peanut Administrative Committee established under Marketing 
     Agreement No. 1436, which regulates 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, is terminated.
       ``(c) Establishment of Peanut Standards Board.--
       ``(1) In general.--The Secretary shall establish a Peanut 
     Standards Board for the purpose of assisting in the 
     establishment of quality standards with respect to peanuts.
       ``(2) Composition.--The Secretary shall appoint members to 
     the Board that, to the maximum extent practicable, reflect 
     all regions and segments of the peanut industry.
       ``(3) Duties.--The Board shall assist the Secretary in 
     establishing quality standards for peanuts.
       ``(d) Crops.--This section shall apply beginning with the 
     2002 crop of peanuts.''.
       (b) Conforming Amendments.--
       (1) The chapter heading of chapter 2 of subtitle D of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. prec. 7271) is amended by striking ``PEANUTS AND''.
       (2) Section 155 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7271) is repealed.

     SEC. 152. TERMINATION OF MARKETING QUOTAS FOR PEANUTS AND 
                   COMPENSATION TO PEANUT QUOTA HOLDERS.

       (a) Repeal of Marketing Quotas for Peanuts.--Effective 
     beginning with the 2002 crop of peanuts, part VI of subtitle 
     B of title III of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1357 et seq.) is repealed.
       (b) Compensation of Quota Holders.--
       (1) Definitions.--In this subsection:
       (A) Peanut quota holder.--
       (i) In general.--The term ``peanut quota holder'' means a 
     person or entity that owns a farm that--

       (I) held a peanut quota established for the farm for the 
     2001 crop of peanuts under part VI of subtitle B of title III 
     of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et 
     seq.) (as in effect before the amendment made by subsection 
     (a));
       (II) if there was not such a quota established for the farm 
     for the 2001 crop of peanuts, would be eligible to have such 
     a quota established for the farm for the 2002 crop of 
     peanuts, in the absence of the amendment made by subsection 
     (a); or
       (III) is otherwise a farm that was eligible for such a 
     quota as of the effective date of the amendments made by this 
     section.

       (ii) Seed or experimental purposes.--The Secretary shall 
     apply the definition of ``peanut quota holder'' without 
     regard to temporary leases, transfers, or quotas for seed or 
     experimental purposes.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) Contracts.--The Secretary shall offer to enter into a 
     contract with peanut quota holders for the purpose of 
     providing compensation for the lost value of quota as a 
     result of the repeal of the marketing quota program for 
     peanuts under the amendment made by subsection (a).
       (3) Payment period.--Under a contract, the Secretary shall 
     make payments to an eligible peanut quota holder for each of 
     fiscal years 2002 through 2006.
       (4) Time for payment.--The payments required under the 
     contracts shall be provided in 5 equal installments not later 
     than September 30 of each of fiscal years 2002 through 2006.
       (5) Payment amount.--The amount of the payment for a fiscal 
     year to a peanut quota holder under a contract shall be equal 
     to the product obtained by multiplying--
       (A) $0.11 per pound; by
       (B) the actual farm poundage quota (excluding any quantity 
     for seed and experimental peanuts) established for the farm 
     of a peanut quota holder under section 358-1(b) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) (as 
     in effect prior to the amendment made by subsection (a)) for 
     the 2001 marketing year.
       (6) Assignment of payments.--
       (A) In general.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to the 
     payments made to peanut quota holders under the contracts.
       (B) Notice.--The peanut quota holder making the assignment, 
     or the assignee, shall provide the Secretary with notice, in 
     such manner as the Secretary may require, of any assignment 
     made under this subsection.
       (c) Conforming Amendments.--
       (1) Administrative provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``peanuts,''.
       (2) Adjustment of quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (A) in the first sentence of subsection (a), by striking 
     ``peanuts,''; and
       (B) in the first sentence of subsection (b), by striking 
     ``peanuts''.
       (3) Reports and records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (A) in the first sentence of subsection (a)--
       (i) by striking ``peanuts,'' each place it appears;
       (ii) by inserting ``and'' after ``from producers,''; and
       (iii) by striking ``for producers, all'' and all that 
     follows through the period at the end of the sentence and 
     inserting ``for producers.''; and
       (B) in subsection (b), by striking ``peanuts,''.
       (4) Eminent domain.--Section 378(c) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the 
     first sentence--
       (A) by striking ``cotton,'' and inserting ``cotton and''; 
     and
       (B) by striking ``and peanuts,''.
       (d) Crops.--This section and the amendments made by this 
     section apply beginning with the 2002 crop of peanuts.

                       Subtitle D--Administration

     SEC. 161. MARKETING ORDERS FOR CANEBERRIES.

       (a) In General.--Section 8c of the Agricultural Adjustment 
     Act (7 U.S.C. 608c), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended--
       (1) in subsection (2)(A), by inserting ``caneberries 
     (including raspberries, blackberries, and loganberries),'' 
     after ``other than pears, olives, grapefruit, cherries,''; 
     and
       (2) in subsection (6)(I), by striking ``tomatoes,,'' and 
     inserting ``tomatoes, caneberries (including raspberries, 
     blackberries, and loganberries),''.
       (b) Conforming Amendment.--Section 8e(a) of the 
     Agricultural Adjustment Act (7 U.S.C. 608e-l(a)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended in the first sentence by striking ``or 
     apples'' and inserting ``apples, or caneberries (including 
     raspberries, blackberries, and loganberries)''.

     SEC. 162. RESERVE STOCK LEVEL.

       Section 301(b)(14)(C) of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1301(b)(14)(C)) is amended--
       (1) in clause (i), by striking ``100,000,000'' and 
     inserting ``75,000,000''; and
       (2) in clause (ii), by striking ``15 percent'' and 
     inserting ``10 percent''.

     SEC. 163. FARM RECONSTITUTIONS.

       (a) In General.--Section 316(a)(1)(A)(ii) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1314b(a)(1)(A)(ii)) is amended by adding at the end the 
     following: ``Notwithstanding any other provision of law, for 
     the 2002 crop only, the Secretary shall allow special farm 
     reconstitutions, in lieu of lease and transfer of allotments 
     and quotas, under this section, in accordance with such 
     conditions as are established by the Secretary.''.
       (b) Study.--
       (1) In general.--The Secretary of Agriculture shall conduct 
     a study on the effects on the limitation on producers to move 
     quota to a farm other than the farm to which the quota was 
     initially assigned under part I of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et 
     seq.).
       (2) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on the results of the study.

     SEC. 164. ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND 
                   COMPLIANCE.

       Section 161 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C.

[[Page S1022]]

     7281) is amended by adding at the end the following:
       ``(e) Adjustment Authority Related to Uruguay Round 
     Compliance.--If the Secretary determines that expenditures 
     under subtitles A through D that are subject to the total 
     allowable domestic support levels under the Uruguay Round 
     Agreements (as defined in section 2 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501)), as in effect on the date of 
     enactment of this subsection, will exceed the allowable 
     levels for any applicable reporting period, the Secretary may 
     make adjustments in the amount of the expenditures to ensure 
     that the expenditures do not exceed, but are not less than, 
     the allowable levels.
       ``(f) Expenditure Limitation.--If the Secretary makes a 
     determination under subsection (e) that expenditures will 
     exceed allowable levels for any applicable reporting period 
     and notifies Congress of the Secretary's intent to make 
     adjustments to ensure that expenditures do not exceed 
     allowable levels, no expenditures under any program proposed 
     to be adjusted by the Secretary may be made after the date 
     that is 18 months after the date of the determination, unless 
     a joint resolution disapproving the adjustments is enacted by 
     both Houses of Congress within 60 days of the date of the 
     notification.
       ``(g) Annual Report on Domestic Support.--Not later than 
     April 30 of each year, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes--
       ``(1) estimated levels of domestic support for agricultural 
     commodities during the current marketing year and the 
     following marketing year;
       ``(2) the manner in which the Secretary intends to notify 
     the World Trade Organization of the estimated levels; and
       ``(3) proposed changes to domestic support programs subject 
     to reduction commitments made in the context of WTO trade 
     negotiations.''.

     SEC. 165. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

       Section 171 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7301) is amended--
       (1) by striking ``2002'' each place it appears and 
     inserting ``2006''; and
       (2) in subsection (a)(1)--
       (A) by striking subparagraph (E); and
       (B) by redesignating subparagraphs (F) through (I) as 
     subparagraphs (E) through (H), respectively.

     SEC. 166. COMMODITY PURCHASES.

       (a) In General.--Section 191 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7331 et seq.) is 
     amended to read as follows:

     ``SEC. 191. COMMODITY PURCHASES.

       ``(a) In General.--To purchase agricultural commodities 
     under this section, the Secretary shall use funds of the 
     Commodity Credit Corporation in an amount equal to--
       ``(1) for each of fiscal years 2002 and 2003, $130,000,000, 
     of which not less than $100,000,000 shall be used for the 
     purchase of specialty crops;
       ``(2) for fiscal year 2004, $150,000,000, of which not less 
     than $120,000,000 shall be used for the purchase of specialty 
     crops;
       ``(3) for fiscal year 2005, $170,000,000, of which not less 
     than $140,000,000 shall be used for the purchase of specialty 
     crops;
       ``(4) for fiscal year 2006, $200,000,000, of which not less 
     than $170,000,000 shall be used for the purchase of specialty 
     crops; and
       ``(5) for fiscal year 2007, $0.
       ``(b) Other Purchases.--The Secretary shall ensure that 
     purchases of agricultural commodities under this section are 
     in addition to purchases by the Secretary under any other 
     law.
       ``(c) Purchases by Department of Defense for School Lunch 
     Program.--The Secretary shall provide not less than 
     $50,000,000 for each fiscal year of the funds made available 
     under subsection (a) to the Secretary of Defense to purchase 
     fresh fruits and vegetables for distribution to schools and 
     service institutions in accordance with section 6(a) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1755(a)) in a manner prescribed by the Secretary of 
     Agriculture.
       ``(d) Purchases for Emergency Food Assistance Program.--The 
     Secretary shall use not less than $40,000,000 for each fiscal 
     year of the funds made available under subsection (a) to 
     purchase agricultural commodities for distribution under the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et 
     seq.).''.
       (b) Sense of the Senate Concerning Purchases of 
     Cranberries.--
       (1) Findings.--Congress finds that--
       (A) the price per hundred pounds of cranberries has dropped 
     from approximately $70 to approximately $10;
       (B) the cost of producing cranberries is between $30 and 
     $35 per hundred pounds, which is much more than the price per 
     hundred pounds of cranberries for each of the past 2 years;
       (C) there is a serious economic crisis among cranberry 
     growers in the United States, especially in the States of 
     Wisconsin, Massachusetts, and New Jersey;
       (D) the Cranberry Marketing Committee has issued 2 
     marketing orders, but the marketing orders have not led to 
     higher prices;
       (E) although Congress directed the Secretary of Agriculture 
     to use $30,000,000 to purchase cranberries in fiscal year 
     2001, the price of cranberries has not risen significantly; 
     and
       (F) the cranberry industry faces a surplus of cranberries 
     and continuing low prices for cranberries.
       (2) Sense of the senate.--It is the sense of the Senate 
     that the Secretary of Agriculture should attempt to alleviate 
     the economic crisis among cranberry growers by continuing to 
     expend for each fiscal year for the purchase of cranberries 
     the same amount as the Secretary expended for fiscal year 
     2001.

     SEC. 167. HARD WHITE WHEAT INCENTIVE PAYMENTS.

       Section 193 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 1508) is amended to read as 
     follows:

     ``SEC. 193. HARD WHITE WHEAT INCENTIVE PAYMENTS.

       ``(a) In General.--For the period of crop years 2003 
     through 2005, the Secretary shall use $40,000,000 of funds of 
     the Commodity Credit Corporation to provide incentive 
     payments to producers of hard white wheat to ensure that hard 
     white wheat, produced on a total of not more than 2,000,000 
     acres, meets minimum quality standards established by the 
     Secretary.
       ``(b) Application.--The amounts payable to producers in the 
     form of payments under this section shall be determined 
     through the submission of bids by producers in such manner as 
     the Secretary may prescribe.
       ``(c) Demand for Wheat.--To be eligible to obtain a payment 
     under this section, a producer shall demonstrate to the 
     Secretary the availability of buyers and end-users for the 
     wheat that is the covered by the payment.''.

     SEC. 168. LIVESTOCK ASSISTANCE PROGRAM.

       Section 194 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 6933) is amended to read as 
     follows:

     ``SEC. 194. LIVESTOCK ASSISTANCE PROGRAM.

       ``(a) In General.--The Secretary shall carry out a program 
     to provide livestock feed assistance to livestock producers 
     affected by disasters.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $500,000,000 for each of fiscal years 2003 through 2008.''.

     SEC. 169. PAYMENT LIMITATIONS; NUTRITION AND COMMODITY 
                   PROGRAMS.

       (a) Payment Limitations.--
       (1) In general.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended to read as follows:

     ``SEC. 1001. PAYMENT LIMITATIONS.

       ``(a) Definitions.--In this section and sections 1001A 
     through 1001F:
       ``(1) Beneficial interest.--The term `beneficial interest' 
     means an interest in an entity that is at least--
       ``(A) 10 percent; or
       ``(B) a lower percentage, which the Secretary shall 
     establish, on a case-by-case basis, as needed to achieve the 
     purposes of this section and sections 1001A through 1001F, 
     including effective implementation of section 1001A(b).
       ``(2) Counter-cyclical payment.--The term `counter-cyclical 
     payment' means a payment made under section 114 or 158D of 
     the Federal Agriculture Improvement and Reform Act of 1996.
       ``(3) Direct payment.--The term `direct payment' means a 
     payment made under section 113 or 158C of the Federal 
     Agriculture Improvement and Reform Act of 1996.
       ``(4) Entity.--
       ``(A) In general.--The term `entity' means--
       ``(i) an entity that (subject to the requirements of this 
     section and section 1001A) is eligible to receive a payment 
     under subsection (b) or (c);
       ``(ii) a corporation, joint stock company, association, 
     limited partnership, charitable organization, a grantor of a 
     revocable trust, or other similar entity (as determined by 
     the Secretary); and
       ``(iii) an entity that is participating in a farming 
     operation as a partner in a general partnership or as a 
     participant in a joint venture.
       ``(B) Exclusion.--Except in section 1001F, the term 
     `entity' does not include an entity that is a general 
     partnership or joint venture.
       ``(5) Individual.--The term `individual' means--
       ``(A) a natural person, and minor children of the natural 
     person (as determined by the Secretary), that (subject to the 
     requirements of this section and section 1001A) is eligible 
     to receive a payment under subsection (b) or (c); and
       ``(B) an individual participating in a farming operation as 
     a partner in a general partnership, a participant in a joint 
     venture, a grantor of a revocable trust, or a participant in 
     a similar entity (as determined by the Secretary).
       ``(6) Loan commodity.--The term `loan commodity' has the 
     meaning given the term in section 102 of the Federal 
     Agriculture Improvement and Reform Act of 1996.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Limitations on Direct and Counter-Cyclical 
     Payments.--Subject to subsections (d) through (i), the total 
     amount of direct payments and counter-cyclical payments that 
     an individual or entity may receive, directly or indirectly, 
     during any fiscal year shall not exceed $75,000.
       ``(c) Limitations on Marketing Loan Gains, Loan Deficiency 
     Payments, and Commodity Certificate Transactions.--
       ``(1) In general.--Subject to subsections (d) through (i), 
     the total amount of the payments and benefits described in 
     paragraph (2) that an individual or entity may receive, 
     directly or indirectly, during any crop year shall not exceed 
     $150,000.
       ``(2) Payments and benefits.--Paragraph (1) shall apply to 
     the following payments and benefits:
       ``(A) Marketing loan gains.--
       ``(i) Repayment gains.--Any gain realized by a producer 
     from repaying a marketing assistance loan under section 131 
     or 158G(a) of the Federal Agriculture Improvement and Reform 
     Act of 1996 for a crop of any loan commodity or peanuts, 
     respectively, at a lower level than the original loan rate 
     established for the loan commodity or peanuts under section 
     132 or 158G(d) of that Act, respectively.

[[Page S1023]]

       ``(ii) Forfeiture gains.--In the case of settlement of a 
     marketing assistance loan under section 131 or 158G(a) of 
     that Act for a crop of any loan commodity or peanuts, 
     respectively, by forfeiture, the amount by which the loan 
     amount exceeds the repayment amount for the loan if the loan 
     had been settled by repayment instead of forfeiture.
       ``(B) Loan deficiency payments.--Any loan deficiency 
     payment received for a loan commodity or peanuts under 
     section 135 or 158G(e) of that Act, respectively.
       ``(C) Commodity certificates.--Any gain realized from the 
     use of a commodity certificate issued by the Commodity Credit 
     Corporation, as determined by the Secretary, including the 
     use of a certificate for the settlement of a marketing 
     assistance loan made under section 131 or 158G(a) of that 
     Act.
       ``(d) Settlement of Certain Loans.--Notwithstanding 
     subtitle C and section 158G of the Federal Agriculture 
     Improvement and Reform Act of 1996, if the amount of payments 
     and benefits described in subsection (c)(2) attributed 
     directly or indirectly to an individual or entity for a crop 
     year reaches the limitation described in subsection (c)(1)--
       ``(1) the portion of any unsettled marketing assistance 
     loan made under section 131 or 158G(a) of that Act attributed 
     directly or indirectly to the individual or entity shall be 
     settled through the repayment of the total loan principal, 
     plus applicable interest; and
       ``(2) the Secretary may refuse to provide to the producer 
     for the crop year any additional marketing assistance loans 
     under section 131 or 158G(a) of that Act.
       ``(e) Payments to Individuals and Entities.--
       ``(1) Interests within the same entity.--All individuals or 
     entities that are owners of an entity, including 
     shareholders, may not collectively receive payments directly 
     or indirectly that are attributable to the ownership 
     interests in the entity for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b) and (c).
       ``(2) All interests of an individual or entity.--An 
     individual or entity may not receive, directly or indirectly, 
     through all ownership interests of the individual or entity 
     from all sources, payments for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b) and (c).
       ``(f) Married Couples.--During a fiscal and corresponding 
     crop year, the total amount of payments and benefits 
     described in subsections (b) and (c) that a married couple 
     may receive directly or indirectly may not exceed--
       ``(1) the limits described in subsections (b) and (c); plus
       ``(2) if each spouse meets the other requirements 
     established under this section and section 1001A, a combined 
     total of an additional $50,000.
       ``(g) Public Schools.--The provisions of this section that 
     limit payments to any individual or entity shall not be 
     applicable to land owned by a public school district or land 
     owned by a State that is used to maintain a public school.
       ``(h) Time Limits.--The Secretary shall promulgate 
     regulations that establish time limits for the various steps 
     involved with notice, hearing, decision, and the appeals 
     procedure in order to ensure expeditious handling and 
     settlement of payment limitation disputes.
       ``(i) Good Faith Reliance.--Notwithstanding any other 
     provision of law, an action taken by an individual or other 
     entity in good faith on action or advice of an authorized 
     representative of the Secretary may be accepted as meeting 
     the requirements of this section or section 1001A, to the 
     extent the Secretary determines it is desirable in order to 
     provide fair and equitable treatment.''.
       (2) Substantive change.--Section 1001A(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1(a)) is amended--
       (A) in the section heading, by striking ``prevention of 
     creation of entities to qualify as separate persons;'' and 
     inserting ``substantive change;'';
       (B) by striking ``(a) Prevention'' and all that follows 
     through the end of paragraph (2) and inserting the following:
       ``(a) Substantive Change.--
       ``(1) In general.--The Secretary may not approve (for 
     purposes of the application of the limitations under this 
     section) any change in a farming operation that otherwise 
     will increase the number of individuals or entities to which 
     the limitations under this section are applied unless the 
     Secretary determines that the change is bona fide and 
     substantive.
       ``(2) Family members.--For the purpose of paragraph (1), 
     the addition of a family member to a farming operation under 
     the criteria established under subsection (b)(3)(B) shall be 
     considered a bona fide and substantive change in the farming 
     operation.'';
       (C) in the first sentence of paragraph (3)--
       (i) by striking ``as a separate person''; and
       (ii) by inserting ``, as determined by the Secretary'' 
     before the period at the end; and
       (D) by striking paragraph (4).
       (3) Actively engaged in farming.--Section 1001A(b) of the 
     Food Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--To be eligible to receive, directly or 
     indirectly, payments or benefits (as described in subsections 
     (b) and (c) of section 1001 as being subject to limitation) 
     with respect to a particular farming operation an individual 
     or entity shall be actively engaged in farming with respect 
     to the operation, as provided under paragraphs (2), (3), and 
     (4).'';
       (B) in paragraph (2)--
       (i) in subparagraph (A)(i), by striking subclause (II) and 
     inserting the following:

       ``(II) personal labor and active personal management (in 
     accordance with subparagraph (F));'';

       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Entities.--An entity (as defined in section 1001(a)) 
     shall be considered as actively engaged in farming with 
     respect to a farming operation if--
       ``(i) the entity separately makes a significant 
     contribution (based on the total value of the farming 
     operation) of capital, equipment, or land;
       ``(ii)(I) the stockholders or members that collectively own 
     at least 50 percent of the combined beneficial interest in 
     the entity make a significant contribution of personal labor 
     or active personal management to the operation; or
       ``(II) in the case of a corporation or entity in which all 
     of the beneficial interests are held by family members (as 
     defined in paragraph (3)(B))--

       ``(aa) any stockholder (or household comprised of a 
     stockholder and the spouse of the stockholder) who owns at 
     least 10 percent of the beneficial interest and makes a 
     significant contribution of personal labor or active personal 
     management; or
       ``(bb) any combination of stockholders who collectively own 
     at least 10 percent of the beneficial interest and makes a 
     significant contribution of personal labor or active personal 
     management; and

       ``(iii) the standards provided in clauses (ii) and (iii) of 
     subparagraph (A), as applied to the entity, are met by the 
     entity.''; and
       (iii) by adding at the end the following:
       ``(E) Active personal management.--For an individual to be 
     considered to be providing active personal management under 
     this paragraph on behalf of the individual or entity, the 
     management provided by the individual shall be personally 
     provided on a regular, substantial, and continuous basis 
     through the direct supervision and direction of--
       ``(i) activities and labor involved in the farming 
     operation; and
       ``(ii) onsite services that are directly related and 
     necessary to the farming operation.
       ``(F) Significant contribution of personal labor or active 
     personal management.--
       ``(i) In general.--For an individual to be considered to be 
     providing a significant contribution of personal labor or 
     active personal management under this paragraph on behalf of 
     the individual or entity, the total contribution of personal 
     labor and active personal management shall be at least equal 
     to the lesser of--

       ``(I) 1,000 hours annually; or
       ``(II) 50 percent of the commensurate share of the total 
     number of hours of personal labor and active personal 
     management required to conduct the farming operation.

       ``(ii) Minimum number of labor hours.--For the purpose of 
     clause (i), the minimum number of labor hours required to 
     produce each commodity shall be equal to the number of hours 
     that would be necessary to conduct a farming operation for 
     the production of each commodity that is comparable in size 
     to an individual or entity's commensurate share in the 
     farming operation for the production of the commodity, based 
     on the minimum number of hours per acre required to produce 
     the commodity in the State where the farming operation is 
     located, as determined by the Secretary.'';
       (C) in paragraph (3)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Landowners.--An individual or entity that is a 
     landowner contributing the owned land and that meets the 
     standard provided in clauses (ii) and (iii) of paragraph 
     (2)(A), if--
       ``(i) the landowner share rents the land;
       ``(ii) the tenant is actively engaged in farming; and
       ``(iii) the share received by the landowner is commensurate 
     with the share of the crop or income received as rent; or
       ``(iv)(I) the landowner makes a significant contribution of 
     active personal management;
       ``(II) the landowner formerly made a significant 
     contribution of personal labor or active personal management 
     on the land for which payments are received and ceased to 
     make the contribution as a result of a disability, as 
     determined by the Secretary; or
       ``(III) the landowner or spouse of the landowner formerly 
     made a significant contribution of personal labor or active 
     personal management on the land for which payments are 
     received and ceased to make the contribution as a result of 
     death or retirement, and 1 or more family members of the 
     landowner currently make a significant contribution of 
     personal labor or active personal management on the land.''; 
     and
       (ii) in subparagraph (B), by striking ``persons'' and 
     inserting ``individuals and entities''; and
       (D) in paragraph (4)--
       (i) in the paragraph heading, by striking ``Persons'' and 
     inserting ``Individuals and entities'';
       (ii) in the matter preceding subparagraph (A), by striking 
     ``persons'' and inserting ``individuals and entities''; and
       (iii) in subparagraph (B)--

       (I) in the subparagraph heading, by striking ``persons'' 
     and inserting ``individuals and entities''; and
       (II) by striking ``person, or class of persons'' and 
     inserting ``individual or entity, or class of individuals or 
     entities'';

       (E) in paragraph (5)--
       (i) by striking ``A person'' and inserting ``An individual 
     or entity''; and
       (ii) by striking ``such person'' and inserting ``the 
     individual or entity''; and
       (F) in paragraph (6), by striking ``a person'' and 
     inserting ``an individual or entity''.
       (4) Administration.--Section 1001A of the Food Security Act 
     of 1985 (7 U.S.C. 1308-1) is amended by adding at the end the 
     following:
       ``(c) Administration.--
       ``(1) Reviews.--

[[Page S1024]]

       ``(A) In general.--During each of fiscal years 2002 through 
     2006, the Office of Inspector General for the Department of 
     Agriculture shall conduct a review of the administration of 
     the requirements of this section and sections 1001, 1001B, 
     1001C, and 1001E in at least 6 States.
       ``(B) Minimum number of counties.--Each State review 
     described in subparagraph (A) shall cover at least 5 counties 
     in the State.
       ``(C) Report.--Not later than 90 days after completing a 
     review described in subparagraph (A), the Inspector General 
     for the Department of Agriculture shall issue a final report 
     to the Secretary of the findings of the Inspector General.
       ``(2) Effect of report.--If a report issued under paragraph 
     (1) reveals that significant problems exist in the 
     implementation of payment limitation requirements of this 
     section and sections 1001, 1001B, 1001C, and 1001E in a State 
     and the Secretary agrees that the problems exist, the 
     Secretary--
       ``(A) shall initiate a training program regarding the 
     payment limitation requirements; and
       ``(B) may require that all payment limitation 
     determinations regarding farming operations in the State be 
     issued from the headquarters of the Farm Service Agency.''.
       (5) Scheme or device.--Section 1001B of the Food Security 
     Act of 1985 (7 U.S.C. 1308-2) is amended--
       (A) by striking ``person'' each place it appears and 
     inserting ``individual or entity''; and
       (B) by striking ``paragraphs (1) and (2)'' and inserting 
     ``subsections (b) and (c)''.
       (6) Foreign individuals and entities.--Section 1001C(b) of 
     the Food Security Act of 1985 (7 U.S.C. 1308-3(b)) is amended 
     in the first sentence by striking ``considered a person that 
     is''.
       (7) Education program.--Section 1001D(c) of the Food 
     Security Act of 1985 (7 U.S.C. 1308-4(c)) is amended by 
     striking ``5 persons'' and inserting ``5 individuals or 
     entities''.
       (8) Report to congress.--No later than 180 days after the 
     date of enactment of this Act, the Secretary of Agriculture 
     shall provide a report to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate that describes--
       (A) how State and county office employees are trained 
     regarding the payment limitation requirements of section 1001 
     through 1001E of the Food Security Act of 1985 (7 U.S.C. 1308 
     through 1308-5);
       (B) the general procedures used by State and county office 
     employees to identify potential violations of the payment 
     limitation requirements;
       (C) the requirements for State and county office employees 
     to report serious violations of the payment limitation 
     requirements, including violations of section 1001B of that 
     Act to the county committee, higher level officials of the 
     Farm Service Agency, and to the Office of Inspector General; 
     and
       (D) the sanctions imposed against State and county office 
     employees who fail to report or investigate potential 
     violations of the payment limitation requirements.
       (b) Adjusted Gross Income Limitation.--The Food Security 
     Act of 1985 is amended by inserting after section 1001E (7 
     U.S.C. 1308-5) the following:

     ``SEC. 1001F. ADJUSTED GROSS INCOME LIMITATION.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross income.--The term `adjusted gross 
     income' means adjusted gross income of an individual or 
     entity--
       ``(A) as defined in section 62 of the Internal Revenue Code 
     of 1986 and implemented in accordance with procedures 
     established by the Secretary; and
       ``(B) that is earned directly or indirectly from all 
     agricultural and nonagricultural sources of an individual or 
     entity for a fiscal or corresponding crop year.
       ``(2) Average adjusted gross income.--
       ``(A) In general.--The term `average adjusted gross income' 
     means the average adjusted gross income of an individual or 
     entity for each of the 3 preceding taxable years.
       ``(B) Effective adjusted gross income.--In the case of an 
     individual or entity that does not have an adjusted gross 
     income for each of the 3 preceding taxable years, the 
     Secretary shall establish rules that provide the individual 
     or entity with an effective adjusted gross income for the 
     applicable year.
       ``(b) Limitation.--Notwithstanding any other provision of 
     title I of the Federal Agriculture Improvement and Reform Act 
     of 1996 (7 U.S.C. 7201 et seq.), an individual or entity 
     shall not be eligible for a payment or benefit described in 
     subsection (b) or (c) of section 1001 if the average adjusted 
     gross income of the individual or entity exceeds $2,500,000.
       ``(c) Certification.--To comply with the limitation under 
     subsection (b), an individual or entity shall provide to the 
     Secretary--
       ``(1) a certification by a certified public accountant or 
     another third party that is acceptable to the Secretary that 
     the average adjusted gross income of the individual or entity 
     does not exceed $2,500,000; or
       ``(2) information and documentation regarding the adjusted 
     gross income of the individual or entity through other 
     procedures established by the Secretary.
       ``(d) Commensurate Reduction.--In the case of a payment or 
     benefit made in a fiscal year or corresponding crop year to 
     an entity that has an average adjusted gross income of 
     $2,500,000 or less, the payment shall be reduced by an amount 
     that is commensurate with the direct and indirect ownership 
     interest in the entity of each individual who has an average 
     adjusted gross income in excess of $2,500,000 for that fiscal 
     year or corresponding crop year.
       ``(e) General Partnerships and Joint Ventures.--For 
     purposes of this section, a general partnership or joint 
     venture shall be considered an entity.''.
       (c) Food Stamp Program.--
       (1) Increase in benefits to households with children.--
     Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow for each household a 
     standard deduction that is equal to the greater of--
       ``(i) the applicable percentage specified in subparagraph 
     (D) of the applicable income standard of eligibility 
     established under subsection (c)(1); or
       ``(ii) the minimum deduction specified in subparagraph (E).
       ``(B) Guam.--The Secretary shall allow for each household 
     in Guam a standard deduction that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2004;
       ``(ii) 8.25 percent for each of fiscal years 2005 and 2006;
       ``(iii) 8.5 percent for each of fiscal years 2007 and 2008;
       ``(iv) 8.75 percent for fiscal year 2009; and
       ``(v) 9 percent for each of fiscal years 2010 and 2011.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.
       (2) Excess shelter expense deduction.--
       (A) In general.--Section 5(e)(7)(B) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014(e)(7)(B)) is amended--
       (i) in clause (v), by striking ``and'' at the end; and
       (ii) by striking clause (vi) and inserting the following:
       ``(vi) for fiscal year 2002, $354, $566, $477, $416, and 
     $279 per month, respectively;
       ``(vii) for fiscal year 2003, $390, $624, $526, $458, and 
     $307 per month, respectively; and
       ``(viii) for fiscal years 2004 and each fiscal year 
     thereafter, the applicable amount for the preceding fiscal 
     year, as adjusted to reflect changes for the 12-month period 
     ending the preceding November 30 in the Consumer Price Index 
     for All Urban Consumers published by the Bureau of Labor 
     Statistics of the Department of Labor.''.
       (B) Prospective amendments.--Effective October 1, 2009, 
     section 5(e)(7) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(7)) is amended--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B).
       (3) Participant expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``, except that the State agency may 
     limit such reimbursement to each participant to $25 per 
     month''.
       (4) Federal reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``such total amount shall not exceed an amount 
     representing $25 per participant per month for costs of 
     transportation and other actual costs (other than dependent 
     care costs) and'' and inserting ``the amount of the 
     reimbursement for dependent care expenses shall not exceed''.
       (5) Effectiveness of certain provisions.--Section 413 and 
     subsections (c) and (d) of section 434, and the amendments 
     made by section 413 and subsections (c) and (d) of section 
     434, shall have no effect.
       (d) Loan Deficiency Payments.--
       (1) Eligibility.--Section 135 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7235) (as 
     amended by section 126(1)) is amended by striking subsection 
     (a) and inserting the following:
       ``(a) In General.--The Secretary may make loan deficiency 
     payments available to--
       ``(1) producers on a farm that, although eligible to obtain 
     a marketing assistance loan under section 131 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     covered commodity in return for payments under this section; 
     and
       ``(2) effective only for the 2000 and 2001 crop years, 
     producers that, although not eligible to obtain such a 
     marketing assistance loan under section 131, produce a loan 
     commodity.''.
       (2) Beneficial interest.--Section 135(e)(1) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7235(e)) (as amended by section 126(2)) is amended by 
     striking ``A producer'' and inserting ``Effective for the 
     2001 through 2006 crops, a producer''.
       (e) Loan Authorization Levels.--Section 346(b) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1994(b)) (as amended by section 529(1)(A)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary may make or guarantee 
     loans under subtitles A and B from the Agricultural Credit 
     Insurance Fund provided for in section 309 for not more than 
     $3,796,000,000 for each of fiscal years 2002 through 2006, of 
     which, for each fiscal year--

[[Page S1025]]

       ``(A) $770,000,000 shall be for direct loans, of which--
       ``(i) $205,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(ii) $565,000,000 shall be for operating loans under 
     subtitle B; and
       ``(B) $3,026,000,000 shall be for guaranteed loans, of 
     which--
       ``(i) $1,000,000,000 shall be for guarantees of farm 
     ownership loans under subtitle A; and
       ``(ii) $2,026,000,000 shall be for guarantees of operating 
     loans under subtitle B.''.
       (f) Beginning Farmer and Rancher Development Program.--In 
     addition to funds made available under the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2002 (Public Law 107-76), the 
     Secretary of Agriculture shall use $5,000,000 of funds of the 
     Commodity Credit Corporation for fiscal year 2002 to make 
     loans described in section 346(b)(2)(A)(i) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1994(b)(2)(A)(i)).
       (g) Initiative for Future Agriculture and Food Systems.--
     Section 401(b)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) (as 
     amended by section 741) is amended--
       (1) in subparagraph (A), by striking ``$120,000,000'' and 
     inserting ``$130,000,000''; and
       (2) in subparagraph (B), by striking ``$145,000,000'' and 
     inserting ``$225,000,000''.
       (h) Specialty Crop Insurance Initiative.--
       (1) Research and development funding.--Section 522(e) of 
     the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended 
     by striking paragraph (1) and inserting the following:
       ``(1) Reimbursements.--Of the amounts made available from 
     the insurance fund established under section 516(c), the 
     Corporation may use to provide reimbursements under 
     subsection (b) not more than--
       ``(A) $32,000,000 for fiscal year 2002;
       ``(B) $27,500,000 for each of fiscal years 2003 and 2004;
       ``(C) $25,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(D) $15,000,000 for fiscal year 2007 and each subsequent 
     fiscal year.''.
       (2) Education and information funding.--Section 524(a)(4) 
     of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) for the education and information program established 
     under paragraph (2)--
       ``(i) $10,000,000 for fiscal year 2003;
       ``(ii) $13,000,000 for fiscal year 2004;
       ``(iii) $15,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(iv) $5,000,000 for fiscal year 2007 and each subsequent 
     fiscal year; and''.
       (3) Reports.--Not later than September 30, 2002, the 
     Secretary of Agriculture shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report that describes--
       (A) the progress made by the Corporation in research and 
     development of innovative risk management products to include 
     cost of production insurance that provides coverage for 
     specialty crops, paying special attention to apples, 
     asparagus, blueberries (wild and domestic), cabbage, canola, 
     carrots, cherries, Christmas trees, citrus fruits, cucumbers, 
     dry beans, eggplants, floriculture, grapes, greenhouse and 
     nursery agricultural commodities, green peas, green peppers, 
     hay, lettuce, maple, mushrooms, pears, potatoes, pumpkins, 
     snap beans, spinach, squash, strawberries, sugar beets, and 
     tomatoes;
       (B) the progress made by the Corporation in increasing the 
     use of risk management products offered through the 
     Corporation by producers of specialty crops, by small- and 
     moderate-sized farms, and in areas that are underserved, as 
     determined by the Secretary; and
       (C) how the additional funding provided under the 
     amendments made by this section has been used.
       (i) Effective Date.--This section and the amendments made 
     by this section take effect 1 day after the date of enactment 
     of this Act.

     SEC. 170. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND; FOOD STAMP PROGRAM FOR CERTAIN 
                   QUALIFIED ALIENS.

       (a) Restriction of Commodity and Crop Insurance Payments, 
     Loans, and Benefits to Previously Cropped Land.--Section 194 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (Public Law 104-127; 110 Stat. 945) is amended to read as 
     follows:

     ``SEC. 194. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND.

       ``(a) Definitions.--In this section:
       ``(1) Agricultural commodity.--The term `agricultural 
     commodity' has the meaning given the term in section 102 of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
       ``(2) Exclusions.--The term `agricultural commodity' does 
     not include forage, livestock, timber, forest products, or 
     hay.
       ``(3) In general.--The term `considered planted' shall 
     include cropland that has been prevented from being planted 
     at least 8 out of the past 10 years due to disaster related 
     conditions as determined by the Secretary.
       ``(b) Commodities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, except as provided in paragraph (2), the 
     Secretary shall not provide a crop payment, crop loan, or 
     other crop benefit under this title to an owner or producer, 
     with respect to an agricultural commodity produced on land 
     during a crop year unless the land has been planted, 
     considered planted, or devoted to an agricultural commodity 
     during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year.
       ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
     owner or producer, with respect to any agricultural commodity 
     planted or considered planted, on land if the land--
       ``(A) has been planted, considered planted, or devoted to 
     an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(c) Crop Insurance.--Notwithstanding any provision of the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), the 
     Federal Crop Insurance Corporation shall not pay premium 
     subsidies or administrative costs of a reinsured company for 
     insurance regarding a crop insurance policy of a producer 
     under that Act unless the land that is covered by the 
     insurance policy for an agricultural commodity--
       ``(1) has been planted, considered planted, or devoted to 
     an agricultural commodity during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year; or
       ``(2)(A) has been planted, considered planted, or devoted 
     to an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(d) Conservation Reserve Land.--For purposes of this 
     section, land that is enrolled in the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C.3831 et seq.) shall be considered planted to an 
     agricultural commodity.
       ``(e) Land Under the Jurisdiction of an Indian Tribe.--For 
     purposes of this section, land that is under the jurisdiction 
     of an Indian tribe (as defined in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b)) shall be considered planted to an agricultural 
     commodity if--
       ``(1) the land is planted to an agricultural commodity 
     after the date of enactment of this subsection as part of an 
     irrigation project that--
       ``(A) is authorized by the Bureau of Reclamation or the 
     Bureau of Indian Affairs; and
       ``(B) is under construction prior to the date of enactment 
     of this subsection; or
       ``(2) the land becomes available for planting because of a 
     settlement or statutory authorization of a water rights claim 
     by an Indian tribe after the date of enactment of this 
     subsection.''.
       (b) Partial Restoration of Benefits to Legal Immigrants.--
     Section 403(c)(2)(L) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)(L)) (as amended by section 452(a)(2)(A)) is 
     amended by inserting ``provided to individuals under the age 
     of 18'' after ``benefits''.
       (c) Food Stamp Exception for Certain Qualified Aliens.--
       (1) In general.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(2)) (as amended by section 452(c)(2)) 
     is amended by adding at the end the following:
       ``(M) Food stamp exception for certain qualified aliens.--
       ``(i) With respect to eligibility for benefits for the 
     specified Federal program described in paragraph (3)(B), 
     paragraph (1) shall not apply, subject to the exclusion in 
     clause (ii), to any individual who has continuously resided 
     in the United States as a qualified alien for a period of 5 
     years or more beginning on the date on which the qualified 
     alien entered the United States.
       ``(ii) No alien who enters the country illegally and 
     remains in the United States illegally for a period of one 
     year or longer or has been in the United States as an illegal 
     alien for a period of one year or longer, regardless of their 
     status upon entering the country or their current status as a 
     qualified alien, shall be eligible under clause (i) for 
     benefits for the specified Federal program described in 
     paragraph (3)(B).
       ``(iii) Clause (ii) shall not apply to a qualified alien 
     who has continuously resided in the United States for a 
     period of 5 years or more as of the date of enactment of this 
     Act.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on April 1, 2003.

     SEC. 171. REDUCTION OF COMMODITY BENEFITS TO IMPROVE 
                   NUTRITION ASSISTANCE.

       (a) Income Protection Prices for Counter-Cyclical 
     Payments.--Section 114(c) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     111) is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.4460 per bushel.
       ``(B) Corn, $2.3472 per bushel.
       ``(C) Grain sorghum, $2.3472 per bushel.
       ``(D) Barley, $2.1973 per bushel.
       ``(E) Oats, $1.5480 per bushel.
       ``(F) Upland cotton, $0.6793 per pound.
       ``(G) Rice, $9.2914 per hundredweight.
       ``(H) Soybeans, $5.7431 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.1049 per pound.''.
       (b) Loan Rates for Marketing Assistance Loans.--
       (1) In general.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     123(a)) is amended to read as follows:

     ``SEC. 132. LOAN RATES.

       ``The loan rate for a marketing assistance loan under 
     section 131 for a loan commodity shall be--

[[Page S1026]]

       ``(1) in the case of wheat, $2.9960 per bushel;
       ``(2) in the case of corn, $2.0772 per bushel;
       ``(3) in the case of grain sorghum, $2.0772 per bushel;
       ``(4) in the case of barley, $1.9973 per bushel;
       ``(5) in the case of oats, $1.4980 per bushel;
       ``(6) in the case of upland cotton, $0.5493 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.4914 per hundredweight;
       ``(9) in the case of soybeans, $5.1931 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.0949 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool, $0.40 per pound;
       ``(13) in the case of mohair, $2.00 per pound;
       ``(14) in the case of honey, $0.60 per pound;
       ``(15) in the case of dry peas, $6.78 per hundredweight;
       ``(16) in the case of lentils, $12.79 per hundredweight;
       ``(17) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(18) in the case of small chickpeas, $8.10 per 
     hundredweight.''.
       (2) Adjustment of loans.--
       (A) In general.--The amendment made by section 123(b) is 
     repealed.
       (B) Applicability.--Section 162 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be 
     applied and administered as if the amendment made by section 
     123(b) had not been enacted.
       (c) Food Stamp Program.--
       (1) Simplified resource eligibility limit.--Section 5(g)(1) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(1)) is 
     amended by striking ``a member who is 60 years of age or 
     older'' and inserting ``an elderly or disabled member''.
       (2) Increase in benefits to households with children.--
     Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow a standard deduction for 
     each household that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of the income standard of eligibility 
     established under subsection (c)(1); but
       ``(ii) not less than the minimum deduction specified in 
     subparagraph (E).
       ``(B) Guam.--The Secretary shall allow a standard deduction 
     for each household in Guam that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2004;
       ``(ii) 8.5 percent for each of fiscal years 2005 through 
     2007;
       ``(iii) 9 percent for each of fiscal years 2008 through 
     2010; and
       ``(iv) 10 percent for each fiscal year thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.
       (3) Effectiveness of certain provisions.--Sections 413 and 
     165(c)(1) shall have no effect.

     SEC. 172. REPORTS ON EQUITABLE RELIEF AND MISACTION-
                   MISINFORMATION REQUESTS.

       Section 195 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (Public Law 104-127; 110 Stat. 946) is 
     amended to read as follows:

     ``SEC. 195. REPORTS ON EQUITABLE RELIEF AND MISACTION-
                   MISINFORMATION REQUESTS.

       ``(a) In General.--Not later than 90 days after the date of 
     enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2002 and not later than December 1 of 
     fiscal year 2003 and each subsequent fiscal year, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that 
     describes--
       ``(1) the number of requests received by the Secretary 
     during the preceding fiscal year for equitable relief under 
     programs carried out by the Farm Service Agency and the 
     Natural Resources Conservation Service, including a 
     description (by program) of--
       ``(A) the number of requests received;
       ``(B) the number of requests approved by the Secretary; and
       ``(C) the basis for the approval or denial of the requests; 
     and
       ``(2) the number of requests received by the Secretary 
     during the preceding fiscal year for relief described in 
     section 326 of the Food and Agriculture Act of 1962 (7 U.S.C. 
     1339a) with respect to programs carried out under this title, 
     including a description (by program) of--
       ``(A) the number of requests received;
       ``(B) the number of requests approved by the Secretary; and
       ``(C) the basis for the approval or denial of the requests.
       ``(b) Appeals.--The Secretary, acting through the Director 
     of the National Appeals Division, shall include in each 
     report submitted under subsection (a) a description of 
     actions taken by the Division taken during the preceding 
     fiscal year with respect to requests for relief described in 
     subsection (a).''.

     SEC. 173. ESTIMATES OF NET FARM INCOME.

       Title I of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7201 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 197. ESTIMATES OF NET FARM INCOME.

       ``In each issuance of projections of net farm income, the 
     Secretary shall include (as determined by the Secretary)--
       ``(1) an estimate of the net farm income earned by 
     commercial producers in the United States; and
       ``(2) an estimate of the net farm income attributable to 
     commercial producers of each of--
       ``(A) livestock;
       ``(B) loan commodities; and
       ``(C) agricultural commodities other than loan 
     commodities.''.

     SEC. 174. COMMODITY CREDIT CORPORATION INVENTORY.

       Section 5 of the Commodity Credit Corporation Charter Act 
     (15 U.S.C. 714c) is amended in the last sentence by inserting 
     before the period at the end the following: ``(including, at 
     the option of the Corporation, the use of private sector 
     entities)''.

     SEC. 175. AGRICULTURAL PRODUCERS SUPPLEMENTAL PAYMENTS AND 
                   ASSISTANCE.

       (a) In General.--The Secretary of Agriculture may use such 
     funds of the Commodity Credit Corporation as are necessary to 
     provide payments and assistance under Public Law 107-25 (115 
     Stat. 201) to persons that (as determined by the Secretary)--
       (1) are eligible to receive the payments or assistance; but
       (2) did not receive the payments or assistance prior to 
     October 1, 2001.
       (b) Limitation.--The amount of payments or assistance 
     provided under Public Law 107-25 and this section to an 
     eligible person described in subsection (a) shall not exceed 
     the amount of payments or assistance the person would have 
     been eligible to receive under Public Law 107-25.

               Subtitle E--Payment Limitation Commission

     SEC. 181. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``Commission on the Application of Payment 
     Limitations for Agriculture'' (referred to in this subtitle 
     as the ``Commission'').
       (b) Membership.--
       (1) Composition.--
       (A) In general.--The Commission shall be composed of 11 
     members appointed as follows:
       (i) 3 members shall be appointed by the President, of whom 
     2 shall be from land grant colleges or universities and have 
     expertise in agricultural economics.
       (ii) 1 member shall be appointed by the Majority Leader of 
     the Senate.
       (iii) 1 member shall be appointed by the Minority Leader of 
     the Senate.
       (iv) 1 member shall be appointed by the Speaker of the 
     House of Representatives.
       (v) 1 member shall be appointed by the Minority Leader of 
     the House of Representatives.
       (vi) 1 member shall be appointed by the Chairman of the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (vii) 1 member shall be appointed by the ranking minority 
     member of the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate.
       (viii) 1 member shall be appointed by the Chairman of the 
     Committee on Agriculture of the House of Representatives.
       (ix) 1 member shall be appointed by the ranking minority 
     member of the Committee on Agriculture of the House of 
     Representatives.
       (B) Diversity of views.--The appointing authorities under 
     subparagraph (A) shall seek to ensure that the membership of 
     the Commission has a diversity of experiences and expertise 
     on the issues to be studied by the Commission, such as 
     agricultural production, agricultural lending, farmland 
     appraisal, agricultural accounting and finance, and other 
     relevant areas.
       (2) Federal government employment.--The membership of the 
     Commission may include 1 or more employees of the Department 
     of Agriculture or other Federal agencies.
       (3) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 60 days after the 
     date of enactment of this Act.
       (c) Term; Vacancies.--
       (1) Term.--A member shall be appointed for the life of the 
     Commission.
       (2) Vacancies.--A vacancy on the Commission--
       (A) shall not affect the powers of the Commission; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (e) Meetings.--The Commission shall meet--
       (1) on a regular basis, as determined by the Chairperson; 
     and
       (2) at the call of the Chairperson or a majority of the 
     members of the Commission.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business, 
     but a lesser number of members may hold hearings.
       (g) Chairperson.--The Secretary shall appoint 1 of the 
     members of the Commission to serve as Chairperson of the 
     Commission.

     SEC. 182. DUTIES.

       (a) Comprehensive Review.--The Commission shall conduct a 
     comprehensive review of--

[[Page S1027]]

       (1) the laws (including regulations) that apply or fail to 
     apply payment limitations to agricultural commodity and 
     conservation programs administered by the Secretary;
       (2) the impact that failing to apply effective payment 
     limitations has on--
       (A) the agricultural producers that participate in the 
     programs;
       (B) overproduction of agricultural commodities;
       (C) the prices that agricultural producers receive for 
     agricultural commodities in the marketplace; and
       (D) land prices and rental rates;
       (3) the feasibility of improving the application and 
     effectiveness of payment limitation requirements, including 
     the use of commodity certificates and the forfeiture of loan 
     collateral; and
       (4) alternatives to payment limitation requirements in 
     effect on the date of enactment of this Act that would apply 
     meaningful limitations to improve the effectiveness and 
     integrity of the requirements.
       (b) Recommendations.--In carrying out the review under 
     subsection (a), the Commission shall develop specific 
     recommendations for modifications to applicable legislation 
     and regulations that would improve payment limitation 
     requirements.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall submit to the 
     President, the Committee on Agriculture of the House of 
     Representatives, and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report containing the results of 
     the review conducted, and any recommendations developed, 
     under this section.

     SEC. 183. POWERS.

       (a) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this subtitle.
       (b) Information From Federal Agencies.--
       (1) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this subtitle.
       (2) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (d) Assistance From Secretary.--The Secretary may provide 
     to the Commission appropriate office space and such 
     reasonable administrative and support services as the 
     Commission may request.

     SEC. 184. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (b) Travel Expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.

     SEC. 185. FEDERAL ADVISORY COMMITTEE ACT.

       The Federal Advisory Committee Act (5 U.S.C. App.) shall 
     not apply to the Commission or any proceeding of the 
     Commission.

     SEC. 186. FUNDING.

       Of the funds of the Commodity Credit Corporation, the 
     Secretary shall use not more than $100,000 to carry out this 
     subtitle.

     SEC. 187. TERMINATION OF COMMISSION.

       The Commission shall terminate on the day after the date on 
     which the Commission submits the report of the Commission 
     under section 182(c).

              Subtitle F--Emergency Agriculture Assistance

     SEC. 191. INCOME LOSS ASSISTANCE.

       (a) In General.--The Secretary of Agriculture (referred to 
     in this subtitle as the ``Secretary'') shall use 
     $1,800,000,000 of funds of the Commodity Credit Corporation 
     to make emergency financial assistance available to producers 
     on a farm that have incurred qualifying income losses in 
     calendar year 2001, including losses due to army worms.
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 815 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 106-387; 114 Stat. 1549A-55), including 
     using the same loss thresholds for the quantity and economic 
     losses as were used in administering that section.
       (c) Use of Funds for Cash Payments.--The Secretary may use 
     funds made available under this section to make, in a manner 
     consistent with this section, cash payments not for crop 
     disasters, but for income loss to carry out the purposes of 
     this section.

     SEC. 192. LIVESTOCK ASSISTANCE PROGRAM.

       (a) In General.--The Secretary shall use $500,000,000 of 
     the funds of the Commodity Credit Corporation to make and 
     administer payments for livestock losses to producers for 
     2001 losses in a county that has received an emergency 
     designation by the President or the Secretary after January 
     1, 2001, of which $12,000,000 shall be made available for the 
     American Indian livestock program under section 806 of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2001 (Public Law 
     106-387; 114 Stat. 1549A-51).
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 806 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 105-277; 114 Stat. 1549A-51).

     SEC. 193. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.

       (a) In General.--The Secretary of Agriculture shall use 
     $100,000,000 of funds of the Commodity Credit Corporation for 
     fiscal year 2002 to make payments to apple producers, as soon 
     as practicable after the date of enactment of this Act, for 
     the loss of markets during the 2000 crop year.
       (b) Payment Quantity.--A payment to the producers on a farm 
     for the 2000 crop year under this section shall be made on 
     the lesser of--
       (1) the quantity of apples produced by the producers on the 
     farm during the 2000 crop year; or
       (2) 5,000,000 pounds of apples.
       (c) Limitations.--The Secretary shall not establish a 
     payment limitation, or income eligibility limitation, with 
     respect to payments made under this section.

     SEC. 194. COMMODITY CREDIT CORPORATION.

       The Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this subtitle.

     SEC. 195. ADMINISTRATIVE EXPENSES.

       (a) In General.--In addition to funds otherwise available, 
     not later than 30 days after the date of enactment of this 
     Act, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture to pay the salaries and expenses 
     of the Department of Agriculture in carrying out this 
     subtitle $50,000,000, to remain available until expended.
       (b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation.

     SEC. 196. REGULATIONS.

       (a) In General.--The Secretary may promulgate such 
     regulations as are necessary to implement this subtitle.
       (b) Procedure.--The promulgation of the regulations and 
     administration of this subtitle shall be made without regard 
     to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

     SEC. 197. EMERGENCY REQUIREMENT.

       The entire amount necessary to carry out this subtitle is 
     designated by Congress as an emergency requirement pursuant 
     to section 252(e) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901(e)).

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

     SEC. 201. CONSERVATION SECURITY PROGRAM.

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

       ``CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

             ``Subchapter A--Conservation Security Program

     ``SEC. 1238. DEFINITIONS.

       ``In this subchapter:
       ``(1) Base payment.--The term `base payment' means the 
     amount paid to a producer under a conservation security 
     contract that is equal to the total of the amounts described 
     in clauses (i) and (ii) of subparagraphs (C), (D), or (E) of 
     section 1238C(b)(1), as appropriate.
       ``(2) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning provided under section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1999(a)).
       ``(3) Bonus amount.--The term `bonus amount' means the 
     amount paid to a producer under a conservation security 
     contract that is equal to the total of the amounts described 
     in clauses (iii) and (iv) of subparagraph (C), and of clause 
     (iii) of subparagraph (D) or (E), of section 1238C(b)(1), as 
     appropriate.
       ``(4) Conservation practice.--The term `conservation 
     practice' means a land-based farming technique that--
       ``(A) requires planning, implementation, management, and 
     maintenance; and
       ``(B) promotes 1 or more of the purposes described in 
     section 1238A(a).
       ``(5) Conservation security contract.--The term 
     `conservation security contract' means a contract described 
     in section 1238A(e).
       ``(6) Conservation security plan.--The term `conservation 
     security plan' means a plan described in section 1238A(c).
       ``(7) Conservation security program.--The term 
     `conservation security program' means the program established 
     under section 1238A(a).

[[Page S1028]]

       ``(8) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(9) Nutrient management.--The term `nutrient management' 
     means management of the quantity, source, placement, form, 
     and timing of the land application of nutrients and other 
     additions to soil on land enrolled in the conservation 
     security program--
       ``(A) to achieve or maintain adequate soil fertility for 
     agricultural production;
       ``(B) to minimize the potential for loss of environmental 
     quality, including soil, water, fish and wildlife habitat, 
     and air and water quality; and
       ``(C) to reduce energy consumption.
       ``(10) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing any crop or 
     livestock; and
       ``(ii) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       ``(B) Hybrid seed growers.--In determining whether a grower 
     of hybrid seed is a producer, the Secretary shall not take 
     into consideration the existence of a hybrid seed contract.
       ``(11) Resource of concern.--The term `resource of concern' 
     means a conservation priority of a State and locality under 
     section 1238A(c)(3).
       ``(12) Resource-conserving crop.--The term `resource-
     conserving crop' means--
       ``(A) a perennial grass;
       ``(B) a legume grown for use as--
       ``(i) forage;
       ``(ii) seed for planting; or
       ``(iii) green manure;
       ``(C) a legume-grass mixture;
       ``(D) a small grain grown in combination with a grass or 
     legume, whether interseeded or planted in succession; and
       ``(E) such other plantings, including trees and annual 
     grasses, as the Secretary considers appropriate for a 
     particular area.
       ``(13) Resource-conserving crop rotation.--The term 
     `resource-conserving crop rotation' means a crop rotation 
     that--
       ``(A) includes at least 1 resource-conserving crop;
       ``(B) reduces erosion;
       ``(C) improves soil fertility and tilth; and
       ``(D) interrupts pest cycles.
       ``(14) Resource management system.--The term `resource 
     management system' means a system of conservation practices 
     and management relating to land or water use that is designed 
     to prevent resource degradation and permit sustained use of 
     land, water, and other natural resources, as defined in 
     accordance with the technical guide of the Natural Resources 
     Conservation Service.
       ``(15) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Natural Resources 
     Conservation Service.
       ``(16) Tier i conservation practice.--The term `Tier I 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(A)(ii).
       ``(17) Tier i conservation security contract.--The term 
     `Tier I conservation security contract' means a contract 
     described in section 1238A(d)(4)(A).
       ``(18) Tier ii conservation practice.--The term `Tier II 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(B)(ii).
       ``(19) Tier ii conservation security contract.--The term 
     `Tier II conservation security contract' means a contract 
     described in section 1238A(d)(4)(B).
       ``(20) Tier iii conservation practice.--The term `Tier III 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(C)(ii).
       ``(21) Tier iii conservation security contract.--The term 
     `Tier III conservation security contract' means a contract 
     described in section 1238A(d)(4)(C).

     ``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

       ``(a) In General.--For each of fiscal years 2003 through 
     2006, the Secretary shall establish a conservation security 
     program to assist owners and operators of agricultural 
     operations to promote, as is applicable for each operation--
       ``(1) conservation of soil, water, energy, and other 
     related resources;
       ``(2) soil quality protection and improvement;
       ``(3) water quality protection and improvement;
       ``(4) air quality protection and improvement;
       ``(5) soil, plant, or animal health and well-being;
       ``(6) diversity of flora and fauna;
       ``(7) on-farm conservation and regeneration of biological 
     resources, including plant and animal germplasm;
       ``(8) wetland restoration, conservation, and enhancement;
       ``(9) wildlife habitat management, with special emphasis on 
     species identified by any natural heritage program of the 
     applicable State;
       ``(10) reduction of greenhouse gas emissions and 
     enhancement of carbon sequestration;
       ``(11) environmentally sound management of invasive 
     species; or
       ``(12) any similar conservation purpose (as determined by 
     the Secretary).
       ``(b) Eligibility.--
       ``(1) Eligible owners and operators.--To be eligible to 
     participate in the conservation security program (other than 
     to receive technical assistance under section 1238C(g) for 
     the development of conservation security contracts), a 
     producer shall--
       ``(A) develop and submit to the Secretary, and obtain the 
     approval of the Secretary of, a conservation security plan 
     that meets the requirements of subsection (c)(1); and
       ``(B) enter into a conservation security contract with the 
     Secretary to carry out the conservation security plan.
       ``(2) Eligible land.--
       ``(A) In general.--Except as provided in subparagraph 
     (C)(iii), private agricultural land (including cropland, 
     grassland, prairie land, pasture land, and rangeland) and 
     land under the jurisdiction of an Indian tribe shall be 
     eligible for enrollment in the conservation security program.
       ``(B) Forested land.--Private forested land shall be 
     eligible for enrollment in the conservation security program 
     if the forested land is part of the agricultural land 
     described in subparagraph (A), including land that is used 
     for--
       ``(i) alley cropping;
       ``(ii) forest farming;
       ``(iii) forest buffers;
       ``(iv) windbreaks;
       ``(v) silvopasture systems; and
       ``(vi) such other integrated agroforestry uses as the 
     Secretary may determine to be appropriate.
       ``(C) Exclusions.--
       ``(i) Conservation reserve program.--Land enrolled in the 
     conservation reserve program under subchapter B of chapter 1 
     shall not be eligible for enrollment in the conservation 
     security program except for land described in section 
     1231(b)(6).
       ``(ii) Wetlands reserve program.--Land enrolled in the 
     wetlands reserve program established under subchapter C of 
     chapter 1 shall not be eligible for enrollment in the 
     conservation security program.
       ``(iii) Conversion to cropland.--Land that is used for crop 
     production after the date of enactment of this subchapter 
     that had not been in crop production for at least 3 of the 10 
     years preceding that date (except for land enrolled in the 
     conservation reserve program under subchapter B of chapter 1) 
     shall not be eligible for enrollment in the conservation 
     security program.
       ``(3) Sustainable economic uses.--The Secretary shall 
     permit a producer to implement, with respect to all eligible 
     land covered by a conservation security plan, sustainable 
     economic uses (including Tier II conservation practices) 
     that--
       ``(A) maintain the agricultural nature of the land; and
       ``(B) are consistent with the natural resource and 
     environmental benefits of the conservation security plan.
       ``(c) Conservation Security Plans.--
       ``(1) In general.--A conservation security plan shall--
       ``(A) identify the resources and designated land to be 
     conserved under the conservation security plan;
       ``(B) describe--
       ``(i) the tier of conservation security contracts, and the 
     particular conservation practices, to be implemented, 
     maintained, or improved, in accordance with subsection (d) on 
     the land covered by the conservation security contract for 
     the specified term; and
       ``(ii) as appropriate for the land covered by the 
     conservation security contract, the minimum number, type, 
     extent, and scope of conservation practices described in 
     clause (i) that are required to be carried out on the land 
     before the producer is eligible to receive--

       ``(I) a base payment; and
       ``(II) a bonus amount;

       ``(C) contain a schedule for the implementation, 
     maintenance, or improvement of the conservation practices 
     described in the conservation security plan during the term 
     of the conservation security contract;
       ``(D) meet the highly erodible land and wetland 
     conservation requirements of subtitles B and C; and
       ``(E) identify, and authorize the implementation of, 
     sustainable economic uses described in subsection (b)(3).
       ``(2) Comprehensive planning.--The Secretary shall 
     encourage owners and operators that enter into conservation 
     security contracts--
       ``(A) to undertake a comprehensive examination of the 
     opportunities for conserving natural resources and improving 
     the profitability, environmental health, and quality of life 
     in relation to their entire agricultural operation;
       ``(B) to develop a long-term strategy for implementing, 
     monitoring, and evaluating conservation practices and 
     environmental results in the entire agricultural operation;
       ``(C) to participate in other Federal, State, local, or 
     private conservation programs;
       ``(D) to maintain the agricultural integrity of the land; 
     and
       ``(E) to adopt innovative conservation technologies and 
     management practices or update existing technologies and 
     practices.
       ``(3) State, tribal, and local conservation priorities.--
       ``(A) In general.--To the maximum extent practicable and in 
     a manner consistent with the conservation security program, 
     each conservation security plan shall address, at least, the 
     conservation priorities of the State or Indian tribe, and 
     locality in which the agricultural operation is located.
       ``(B) Administration.--The conservation priorities of the 
     State, Indian tribe, and locality in which the agricultural 
     operation is located shall be--
       ``(i)(I) determined by the State conservationist, in 
     consultation with the State technical committee established 
     under subtitle G and the local subcommittee of the State 
     technical committee; and
       ``(II) approved by the Secretary; and
       ``(ii) in the case of land under the jurisdiction of an 
     Indian tribe--

       ``(I) determined by the Indian tribe, after consultation 
     with the Secretary; and
       ``(II) approved by the Secretary.

[[Page S1029]]

       ``(4) Submission of plan.--
       ``(A) In general.--During the development of a conservation 
     security plan by a producer, at the request of the producer, 
     the Secretary shall supply to the producer a statement of the 
     minimum number, type, and scope of conservation practices 
     described in paragraph (1)(B)(ii).
       ``(B) Approval for base payments.--If a conservation 
     security plan submitted to the Secretary contains, in 
     addition to paragraph (1)(C), the conservation practices 
     referred to in paragraph (1)(B)(ii)--
       ``(i) the Secretary shall approve the conservation security 
     plan; and
       ``(ii) the producer of the conservation security plan, on 
     approval of and compliance with the plan, as determined by 
     the Secretary, shall be eligible to receive a base payment.
       ``(C) Approval for bonus amounts.--If a conservation 
     security plan submitted to the Secretary contains a proposal 
     for the implementation, maintenance, or improvement of a 
     conservation practice that qualifies for a bonus amount under 
     section 1238C(b)(1)(C)(iii), the Secretary may increase the 
     payment of the producer by such bonus amount as the Secretary 
     determines is appropriate.
       ``(d) Conservation Contracts and Practices.--
       ``(1) In general.--
       ``(A) Establishment of tiers.--The Secretary shall 
     establish 3 tiers of conservation contracts under which a 
     payment under this subchapter may be received.
       ``(B) Eligible conservation practices.--
       ``(i) In general.--The Secretary shall make eligible for 
     payment under a conservation security contract land 
     management, vegetative, and structural practices that--

       ``(I) are necessary to achieve the purposes of the 
     conservation security plan; and
       ``(II) primarily provide for, and have as a primary 
     purpose, resource protection and environmental improvement.

       ``(ii) Determination.--

       ``(I) In general.--Subject to subclause (II), in 
     determining the eligibility of a practice described in clause 
     (i), the Secretary shall require, to the maximum extent 
     practicable, the lowest cost alternatives be used to fulfill 
     the purposes of the conservation security plan, as determined 
     by the Secretary.
       ``(II) Innovative technologies.--Subclause (I) shall not 
     apply, to the maximum extent practicable, to the adoption of 
     innovative technologies.

       ``(2) On-farm research and demonstration.--With respect to 
     land enrolled in the conservation security program that will 
     be maintained using a Tier II conservation practice or a Tier 
     III conservation practice, the Secretary may approve a 
     conservation security plan that includes on-farm conservation 
     research and demonstration activities, including--
       ``(A) total farm planning;
       ``(B) total resource management;
       ``(C) integrated farming systems;
       ``(D) germplasm conservation and regeneration;
       ``(E) greenhouse gas reduction and carbon sequestration;
       ``(F) agroecological restoration and wildlife habitat 
     restoration;
       ``(G) agroforestry;
       ``(H) invasive species control;
       ``(I) energy conservation and management;
       ``(J) farm and environmental results monitoring and 
     evaluation; or
       ``(K) participation in research projects relating to water 
     conservation and management through--
       ``(i) recycling or reuse of water; or
       ``(ii) more efficient irrigation of farmland.
       ``(3) Use of handbook and guides.--
       ``(A) In general.--In determining eligible conservation 
     practices under the conservation security program, the 
     Secretary shall use the National Handbook of Conservation 
     Practices of the Natural Resources Conservation Service.
       ``(B) Conservation practice standards.--To the maximum 
     extent practicable, the Secretary shall establish guidance 
     standards for implementation of eligible conservation 
     practices that shall include measurable goals for enhancing 
     and preventing degradation of resources.
       ``(C) Adjustments.--
       ``(i) In general.--After providing notice and an 
     opportunity for public participation, the Secretary shall 
     make such adjustments to the National Handbook of 
     Conservation Practices, and the field office technical 
     guides, of the Natural Resources Conservation Service as are 
     necessary to carry out this chapter.
       ``(ii) Effect on plan.--If the Secretary makes an 
     adjustment to a practice under clause (i), the Secretary may 
     require an adjustment to a conservation security plan in 
     effect as of the date of the adjustment if the Secretary 
     determines that the plan, without the adjustment, would 
     significantly interfere with achieving the purposes of the 
     conservation security program.
       ``(D) Pilot testing.--
       ``(i) In general.--Under any of the 3 tiers of conservation 
     practices established under paragraph (4), the Secretary may 
     approve requests by a producer for pilot testing of new 
     technologies and innovative conservation practices and 
     systems.
       ``(ii) Incorporation into standards.--

       ``(I) In general.--After evaluation by the Secretary and 
     provision of notice and an opportunity for public 
     participation, the Secretary may, as expeditiously as 
     practicable, approve new technologies and innovative 
     conservation practices and systems.
       ``(II) Incorporation.--If the Secretary approves a new 
     technology or innovative conservation practice under 
     subclause (I), the Secretary shall, as expeditiously as 
     practicable, incorporate the technology or practice into the 
     standards for implementation of conservation practices 
     established under paragraph (3).

       ``(4) Tiers.--Subject to paragraph (5), to carry out this 
     subsection, the Secretary shall establish the following 3 
     tiers of conservation contracts:
       ``(A) Tier i conservation contracts.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier I 
     conservation security contract shall be maintained using Tier 
     I conservation practices and shall, at a minimum--

       ``(I) if applicable to the particular agricultural 
     operation, address at least 1 resource of concern;
       ``(II) apply to the total agricultural operation or to a 
     particular unit of the agricultural operation;
       ``(III) cover--

       ``(aa) management of conservation practices that are being 
     implemented as of the date on which the conservation security 
     contract is entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(IV) meet applicable standards for implementation of 
     conservation practices established under paragraph (3).

       ``(ii) Conservation practices.--Tier I conservation 
     practices shall consist of, as appropriate for the 
     agricultural operation of a producer, 1 or more of the 
     following basic conservation activities:

       ``(I) Nutrient management.
       ``(II) Integrated pest management.
       ``(III) Irrigation, water conservation, and water quality 
     management.
       ``(IV) Grazing pasture and rangeland management.
       ``(V) Soil conservation, quality, and residue management.
       ``(VI) Invasive species management.
       ``(VII) Fish and wildlife habitat management, with special 
     emphasis on species identified by any natural heritage 
     program of the applicable State or the appropriate State 
     agency.
       ``(VIII) Fish and wildlife conservation and enhancement.
       ``(IX) Air quality management.
       ``(X) Energy conservation measures.
       ``(XI) Biological resource conservation and regeneration.
       ``(XII) Animal health management.
       ``(XIII) Plant and animal germplasm conservation, 
     evaluation, and development.
       ``(XIV) Contour farming.
       ``(XV) Strip cropping.
       ``(XVI) Cover cropping.
       ``(XVII) Sediment dams.
       ``(XVIII) Any other conservation practice that the 
     Secretary determines to be appropriate and comparable to 
     other conservation practices described in this clause.

       ``(iii) Tier ii conservation contracts.--A conservation 
     security plan for land enrolled in the conservation security 
     program that will be maintained using Tier I conservation 
     contracts may include Tier II conservation practices.
       ``(B) Tier ii conservation practices.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier II 
     conservation security contract shall be maintained using Tier 
     II conservation practices and shall, at a minimum--

       ``(I) as applicable to the particular agricultural 
     operation, address at least 1 resource of concern for the 
     entire agricultural operation;
       ``(II) cover--

       ``(aa) management of conservation practices that are being 
     implemented as of the date on which the conservation security 
     contract is entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(III) meet applicable resource management system criteria 
     for 1 or more resources of concern of the agricultural 
     operation, as specified in the conservation security 
     contract.

       ``(ii) Conservation practices and requirements.--Tier II 
     conservation practices and requirements shall consist of, as 
     appropriate for the agricultural operation of a producer, any 
     of the Tier I conservation practices and 1 or more of the 
     following land use adjustment or protection practices:

       ``(I) Resource-conserving crop rotations.
       ``(II) Controlled, rotational grazing.
       ``(III) Conversion of portions of cropland from a soil-
     depleting use to a soil-conserving use, including production 
     of cover crops.
       ``(IV) Partial field conservation practices (including 
     windbreaks, grass waterways, shelter belts, filter strips, 
     riparian buffers, wetland buffers, contour buffer strips, 
     living snow fences, crosswind trap strips, field borders, 
     grass terraces, wildlife corridors, and critical area 
     planting appropriate to the agricultural operation).
       ``(V) Fish and wildlife habitat conservation and 
     restoration.
       ``(VI) Native grassland and prairie protection and 
     restoration.
       ``(VII) Wetland protection and restoration.
       ``(VIII) Agroforestry practices and systems as described in 
     subsection (b)(2)(B).
       ``(IX) Any other conservation practice involving 
     modification of the use of land that the Secretary determines 
     to be appropriate and comparable to other conservation 
     practices described in this clause.

       ``(C) Tier iii conservation contracts.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier 
     III conservation security contract shall be maintained using 
     Tier III conservation contracts and shall, at a minimum--

       ``(I) address all applicable resources of concern in the 
     total agricultural operation;
       ``(II) cover--

       ``(aa) management of conservation practices that are being 
     implemented as of the date on

[[Page S1030]]

     which the conservation security contract is entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(III) meet applicable resource management system criteria 
     for 1 or more resources of concern of the agricultural 
     operation, as specified in the conservation security 
     contract.

       ``(ii) Conservation practices.--Tier III conservation 
     practices shall consist of, as appropriate for the 
     agricultural operation of a producer (in addition to 
     appropriate Tier I conservation practices and Tier II 
     conservation practices), development, implementation, and 
     maintenance of a conservation security plan that, over the 
     term of the conservation security contract--

       ``(I) integrates all necessary conservation practices to 
     foster environmental enhancement and the long-term 
     sustainability of the natural resource base of an 
     agricultural operation; and
       ``(II) improves profitability and sustainability associated 
     with the agricultural operation.

       ``(5) Minimum requirements.--The minimum requirements for 
     each tier of conservation practices described in paragraph 
     (4) shall be--
       ``(A)(i) determined by the State conservationist, in 
     consultation with the State technical committee established 
     under subtitle G and the local subcommittee of the State 
     technical committee; and
       ``(ii) approved by the Secretary; and
       ``(B) in the case of land under the jurisdiction of an 
     Indian tribe--
       ``(i) determined by the Indian tribe, after consultation 
     with the Secretary; and
       ``(ii) approved by the Secretary.
       ``(e) Conservation Security Contracts.--
       ``(1) Contracts.--
       ``(A) In general.--On approval of a conservation security 
     plan of a producer, the Secretary shall enter into a 
     conservation security contract with the producer to enroll 
     the land covered by the conservation security plan in the 
     conservation security program.
       ``(B) Required components.--A conservation security 
     contract shall specifically describe the practices that are 
     required under subsection (c)(1)(B).
       ``(2) Term.--Subject to paragraphs (3) and (4)--
       ``(A) a conservation security contract for land enrolled in 
     the conservation security program of a producer that will be 
     maintained using 1 or more Tier I conservation contracts 
     shall have a term of 5 years; and
       ``(B) a conservation security contract for land enrolled in 
     the conservation security program that will be maintained 
     using a Tier II conservation contract or Tier III 
     conservation contract shall have a 5-year to 10-year term, as 
     determined by the producer.
       ``(3) Modifications.--
       ``(A) Optional modifications.--
       ``(i) In general.--An owner or operator may apply to the 
     Secretary to modify the conservation security plan to 
     effectuate the purposes of the conservation security program.
       ``(ii) Approval by the secretary.--To be effective, any 
     modification under clause (i)--

       ``(I) shall be approved by the Secretary; and
       ``(II) shall authorize the Secretary to redetermine, if 
     necessary, the amount and timing of the payments under the 
     conservation security contract and subsections (a) and (b) of 
     section 1238C.

       ``(B) Other modifications.--
       ``(i) In general.--The Secretary may, in writing, require a 
     producer to modify a conservation security contract before 
     the expiration of the conservation security contract if--

       ``(I) the Secretary determines that a change made to the 
     type, size, management, or other aspect of the agricultural 
     operation of the producer would, without the modification of 
     the contract, significantly interfere with achieving the 
     purposes of the conservation security program; or
       ``(II) the Secretary makes a change to the National 
     Handbook of Conservation Practices of the Natural Resource 
     Conservation Service under subsection (d)(3)(C).

       ``(ii) Payments.--The Secretary may adjust the amount and 
     timing of the payment schedule under the conservation 
     security contract to reflect any modifications made under 
     this subparagraph.
       ``(iii) Deadline.--The Secretary may terminate a 
     conservation security contract if a modification required 
     under this subparagraph is not submitted to the Secretary in 
     the form of an amended conservation security contract by the 
     date that is 90 days after the date on which the Secretary 
     issues a written request for the modification.
       ``(iv) Termination.--a producer that is required to modify 
     a conservation security contract under this subparagraph may, 
     in lieu of modifying the contract--

       ``(I) terminate the conservation security contract; and
       ``(II) retain payments received under the conservation 
     security contract, if the producer fully complied with the 
     terms and conditions of the conservation security contract 
     before termination of the contract.

       ``(4) Renewal.--
       ``(A) In general.--At the option of a producer, the 
     conservation security contract of the producer may be 
     renewed, for a term described in subparagraph (B), if--
       ``(i) the producer agrees to any modification of the 
     applicable conservation security contract that the Secretary 
     determines to be necessary to achieve the purposes of the 
     conservation security program;
       ``(ii) the Secretary determines that the producer has 
     complied with the terms and conditions of the conservation 
     security contract, including the conservation security plan; 
     and
       ``(iii) in the case of a Tier I conservation security 
     contract, the producer agrees to increase the conservation 
     practices on land enrolled in the conservation security 
     program by--

       ``(I) adopting new conservation practices; or
       ``(II) expanding existing practices to meet applicable 
     resource management systems criteria.

       ``(B) Terms of renewal.--Under subparagraph (A)--
       ``(i) a conservation security contract for land enrolled in 
     the conservation security program that will be maintained 
     using Tier I conservation contracts may be renewed for 5-year 
     terms;
       ``(ii) in the case of a Tier II conservation security 
     contract or a Tier III conservation security contract, the 
     contract shall be renewed for 5-year to 10-year terms, at the 
     option of the producer; and
       ``(iii) participation in the conservation security program 
     prior to the renewal of the conservation security contract 
     shall not bar renewal more than once.
       ``(f) Noncompliance Due to Circumstances Beyond the Control 
     of Producers.--The Secretary shall include in the 
     conservation security contract a provision, and may modify a 
     conservation security contract under subsection (e)(3)(B), to 
     ensure that a producer shall not be considered in violation 
     of a conservation security contract for failure to comply 
     with the conservation security contract due to circumstances 
     beyond the control of the producer, including a disaster or 
     related condition, as determined by the Secretary.

     ``SEC. 1238B. DUTIES OF PRODUCERS.

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

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

       ``(a) Advance Payment.--At the time at which a producer 
     enters into a conservation security contract, the Secretary 
     shall, at the option of the producer, make an advance payment 
     to the producer in an amount not to exceed--
       ``(1) in the case of a Tier I conservation security 
     contract, the greater of--
       ``(A) $1,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary;
       ``(2) in the case of a Tier II conservation security 
     contract, the greater of--
       ``(A) $2,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary; and
       ``(3) in the case of a Tier III conservation security 
     contract, the greater of--
       ``(A) $3,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary.
       ``(b) Annual Payments.--
       ``(1) Criteria for determining amount of payments.--
       ``(A) Base rate.--In this paragraph, the term `base rate' 
     means the average county rental rate for the specific land 
     use during the 2001 crop year, or another appropriate average 
     county rate for the 2001 crop year, that ensures regional 
     equity, as determined by the Secretary.
       ``(B) Payments.--A payment for a conservation practice 
     under this paragraph shall be determined in accordance with 
     subparagraphs (C) through (F).
       ``(C) Tier i conservation contracts.--The payment for a 
     Tier I conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 6 percent of the base rate for 
     land covered by the contract.
       ``(ii) An amount equal to the following costs of practices 
     covered by the conservation security contract, based on the 
     average county costs for such practices for the 2001 crop 
     year, as determined by the Secretary:

       ``(I) 100 percent of the cost of--

       ``(aa) the adoption of new management practices; and
       ``(bb) the maintenance of new and existing land management 
     and vegetative practices.

       ``(II) 100 percent of the cost of maintenance of existing 
     land-based structural practices approved by the Secretary.
       ``(III)(aa) 75 percent (or, in the case of a limited 
     resource producer (as determined by the Secretary) or a 
     beginning farmer or rancher, 90 percent) of the cost of 
     adoption of new land-based structural practices; or
       ``(bb) 75 percent (or, in the case of a limited resource 
     producer (as determined by the Secretary) or a beginning 
     farmer or rancher, 90 percent) of the cost of the adoption of 
     a structural practice for which a similar structural practice

[[Page S1031]]

     under the environmental quality incentives program 
     established under chapter 4 would require maintenance, if the 
     producer agrees to provide, without reimbursement, 
     substantially equivalent maintenance.

       ``(iii) A bonus amount determined by the Secretary for 
     implementing or adopting 1 or more of the following 
     practices:

       ``(I) A practice adopted or maintained that, because of the 
     extent and scope of the practice, maximizes the objectives of 
     the conservation security program beyond the minimum 
     requirements of the practices adopted or maintained.
       ``(II) A practice adopted or maintained to address 
     resources of concern and local conservation concerns beyond 
     those identified as State or local conservation priorities.
       ``(III) A practice adopted or maintained to address 
     national priority concerns, as determined by the Secretary.
       ``(IV) Participation by the producer in an on-farm 
     conservation research, demonstration, or pilot project.
       ``(V) Participation by the producer in a watershed or 
     regional resource conservation plan that involves at least 75 
     percent of producers in a targeted area.
       ``(VI) Recordkeeping, monitoring, and evaluation carried 
     out by the producer that furthers the purposes of the 
     conservation security program.

       ``(iv) A bonus amount determined by the Secretary that 
     reflects the status of a producer as a beginning farmer or 
     rancher.
       ``(D) Tier ii conservation contracts.--The payment for a 
     Tier II conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 11 percent of the base rate for 
     land covered by the conservation security contract.
       ``(ii) An amount equal to the cost of practices covered by 
     the conservation security contract, based on the average 
     county costs for practices for the 2001 crop year, described 
     in subparagraph (C)(ii).
       ``(iii) A bonus amount determined by the Secretary in 
     accordance with clauses (iii) and (iv) of subparagraph (C), 
     except that the bonus amount under this clause may include 
     any amount for the adoption or maintenance by the producer of 
     any practice that exceeds resource management system 
     standards.
       ``(E) Tier iii conservation contracts.--The payment for a 
     Tier III conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 20 percent of the base rate for 
     land covered by the conservation security contract.
       ``(ii) An amount equal to the cost of practices covered by 
     the conservation security contract, based on the average 
     county costs for practices for the 2001 crop year, described 
     in subparagraph (C)(ii).
       ``(iii) A bonus amount determined by the Secretary in 
     accordance with subparagraph (D)(iii).
       ``(F) Exclusion of costs for purchase or maintenance of 
     equipment or non-land based structures.--A payment under this 
     subchapter shall not include any amount for the purchase or 
     maintenance of equipment or a non-land based structure.
       ``(2) Time of payment.--The Secretary shall provide 
     payments under a conservation security contract as soon as 
     practicable after October 1 of each fiscal year.
       ``(3) Limitation on payments.--
       ``(A) In general.--Subject to paragraphs (1), (2), (4), and 
     (5), the Secretary shall, in amounts and for a term specified 
     in a conservation security contract and taking into account 
     any advance payments, make an annual payment, directly or 
     indirectly, to the individual or entity covered by the 
     conservation security contract in an amount not to exceed--
       ``(i) in the case of a Tier I conservation security 
     contract, $20,000;
       ``(ii) in the case of a Tier II conservation security 
     contract, $35,000; or
       ``(iii) in the case of a Tier III conservation security 
     contract, $50,000.
       ``(B) Limitation on nonbonus payments.--In applying the 
     payment limitation under each of clauses (i), (ii), and (iii) 
     of subparagraph (A), an individual or entity may not receive, 
     directly or indirectly, payments described in clauses (i) and 
     (ii) of paragraph (1)(C), (1)(D), or (1)(E), as appropriate, 
     in an amount that exceeds 75 percent of the applicable 
     payment limitation.
       ``(C) Other usda payments.--If a producer has the same 
     practices on the same land enrolled in the conservation 
     security program and 1 or more other conservation programs 
     administered by the Secretary, the Secretary shall include 
     all payments from the conservation security program and the 
     other conservation programs, other than payments for 
     conservation easements, in applying the annual payment 
     limitations under this paragraph.
       ``(D) Non-usda payments.--
       ``(i) In general.--A payment described in clause (ii) shall 
     not be considered an annual payment for purposes of the 
     annual payment limitations under this paragraph.
       ``(ii) Payment.--A payment referred to in clause (i) is a 
     payment that--

       ``(I) is for the same practice on the same land enrolled in 
     the conservation security program; and
       ``(II) is received from a Federal program that is not 
     administered by the Secretary, or that is administered by any 
     State, local, or private agricultural agency or organization.

       ``(E) Commensurate share.--To be eligible to receive a 
     payment under this chapter, an individual or entity shall 
     make contributions (including contributions of land, labor, 
     management, equipment, or capital) to the operation of the 
     farm that are at least commensurate with the share of the 
     proceeds of the operation of the individual or entity.
       ``(4) Land enrolled in other conservation programs.--
     Notwithstanding any other provision of law, if a producer has 
     land enrolled in another conservation program administered by 
     the Secretary and has applied to enroll the same land in the 
     conservation security program, the producer may elect to--
       ``(A) convert the contract under the other conservation 
     program to a conservation security contract, without penalty, 
     except that this subparagraph shall not apply to a contract 
     entered into under--
       ``(i) the conservation reserve program under subchapter B 
     of chapter 1; or
       ``(ii) the wetlands reserve program under subchapter C of 
     chapter 1; or
       ``(B) have each annual payment to the producer under this 
     subsection reduced to reflect payment for practices the 
     producer receives under the other conservation program, 
     except that the annual payment under this subsection shall 
     not be reduced by the amount of any incentive received under 
     a program referred to in section 1231(b)(6) for qualified 
     practices that enhance or extend the conservation benefit 
     achieved under the other conservation program.
       ``(5) Waste storage or treatment facilities.--A payment to 
     a producer under this subchapter shall not be provided for 
     the purpose of construction or maintenance of animal waste 
     storage or treatment facilities or associated waste transport 
     or transfer devices for animal feeding operations.
       ``(c) Minimum Practice Requirement.--In determining a 
     payment under subsection (a) or (b) for an owner, operator, 
     or producer that receives a payment under another program 
     administered by the Secretary that is contingent on complying 
     with requirements under subtitle B or C of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3811 et seq.) relating 
     to the use of highly erodible land or wetland, a payment 
     under this chapter for 1 or more practices on land subject to 
     those requirements shall be for practices that exceed minimum 
     requirements for the owner, operator, or producer under those 
     subtitles, as determined by the Secretary.
       ``(d) Regulations.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations that--
       ``(A) provide for adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing payments, on a fair and equitable basis; and
       ``(B) prescribe such other rules as the Secretary 
     determines to be necessary to ensure a fair and reasonable 
     application of the limitations established under subsections 
     (a) and (b).
       ``(2) Penalties for schemes or devices.--
       ``(A) In general.--If the Secretary determines that an 
     individual or entity has adopted a scheme or device to evade, 
     or that has the purpose of evading, the regulations 
     promulgated under paragraph (1), the individual or entity 
     shall be ineligible to participate in the conservation 
     security program for--
       ``(i) the year for which the scheme or device was adopted; 
     and
       ``(ii) each of the following 5 years.
       ``(B) Fraud.--If the Secretary determines that fraud was 
     committed in connection with the scheme or device, the 
     individual or entity shall be ineligible to participate in 
     the conservation security program for--
       ``(i) the year for which the scheme or device was adopted; 
     and
       ``(ii) each of the following 10 years.
       ``(e) Termination.--
       ``(1) In general.--Subject to section 1238B, the Secretary 
     shall allow a producer to terminate the conservation security 
     contract.
       ``(2) Payments.--The producer may retain any or all 
     payments received under a terminated conservation security 
     contract if--
       ``(A) the producer is in full compliance with the terms and 
     conditions (including any maintenance requirements) of the 
     conservation security contract as of the date of the 
     termination; and
       ``(B) the Secretary determines that termination of the 
     contract will not defeat the purposes of the conservation 
     security plan of the producer.
       ``(f) Transfer or Change of Interest in Land Subject to 
     Conservation Security Contract.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     transfer, or change in the interest, of a producer in land 
     subject to a conservation security contract shall result in 
     the termination of the conservation security contract.
       ``(2) Transfer of duties and rights.--Paragraph (1) shall 
     not apply if, not later than 60 days after the date of the 
     transfer or change in the interest in land, the transferee of 
     the land provides written notice to the Secretary that all 
     duties and rights under the conservation security contract 
     have been transferred to the transferee.
       ``(g) Technical Assistance.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the Secretary shall provide technical assistance to 
     producers for the development and implementation of 
     conservation security contracts, in an amount not to exceed 
     20 percent of amounts expended for the fiscal year.
       ``(2) Coordination by the secretary.--The Secretary shall 
     provide overall technical coordination and leadership for the 
     conservation security program, including final approval of 
     all conservation security plans.
       ``(h) Conservation Security State Program.--
       ``(1) In general.--Effective October 1, 2004, the 
     Secretary, in cooperation with appropriate State agencies, 
     may permit 1 State to jointly implement a conservation 
     security program with the Secretary.
       ``(2) Eligible state.--The State referred to in paragraph 
     (1) shall be a State selected by the Secretary--
       ``(A) in consultation with--
       ``(i) the Committee on Agriculture of the House of 
     Representatives; and

[[Page S1032]]

       ``(ii) the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate; and
       ``(B) after taking into consideration--
       ``(i) the percentage of private land in agricultural 
     production in the State; and
       ``(ii) infrastructure in the State that is available to 
     implement the pilot program under paragraph (1).''.

     SEC. 202. FUNDING.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) is amended by adding at the end the following:
       ``(c) Conservation Security Program.--Of the funds of the 
     Commodity Credit Corporation, the Corporation shall make 
     available for each of fiscal years 2002 through 2006 such 
     sums as are necessary to carry out subchapter A of chapter 2 
     (including the provision of technical assistance, education 
     and outreach, and monitoring and evaluation).''.

     SEC. 203. PARTNERSHIPS AND COOPERATION.

       Section 1243 of the Food Security Act of 1985 (16 U.S.C. 
     3843) is amended by adding at the end the following:
       ``(f) Partnerships and Cooperation.--
       ``(1) In general.--In carrying out any program under 
     subtitle D, the Secretary may use resources provided under 
     that subtitle to enter into agreements with State and local 
     agencies, Indian tribes, and nongovernmental organizations 
     and to designate special projects, as recommended by the 
     State Conservationist, after consultation with the State 
     technical committee, to enhance technical and financial 
     assistance provided to owners, operators, and producers to 
     address environmental issues affected by agricultural 
     production with respect to--
       ``(A) meeting the purposes of--
       ``(i) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.) or comparable State or tribal laws in impaired 
     or threatened watersheds;
       ``(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
     or comparable State or tribal laws in watersheds providing 
     water for drinking water supplies;
       ``(iii) the Clean Air Act (42 U.S.C. 7401 et seq.) or 
     comparable State laws; or
       ``(iv) other Federal, State, tribal, or local laws; or
       ``(B) watersheds of special significance, conservation 
     priority areas described in section 1230(c), or other 
     geographic areas of environmental sensitivity, such as 
     wetland, including State, multi-State, or tribal projects--
       ``(i) to facilitate surface and ground water conservation;
       ``(ii) to protect water quality;
       ``(iii) to protect endangered or threatened species or 
     habitat, such as conservation corridors;
       ``(iv) to improve methods of irrigation;
       ``(v) to convert acreage from irrigated production; or
       ``(vi) to reduce nutrient loads of watersheds.''.
       ``(2) Incentives.--To realize the purposes of the special 
     projects under paragraph (1), the Secretary may provide 
     special incentives to owners, operators, and producers 
     participating in the special projects to encourage 
     partnerships, enrollments of exceptional environmental value, 
     and sharing of technical and financial resources among 
     owners, operators, and producers and among owners, operators, 
     and producers and governmental and nongovernmental 
     organizations.
       ``(3) Flexibility.--
       ``(A) In general.--The Secretary may enter into agreements 
     with States (including State agencies and units of local 
     government), Indian tribes, and nongovernmental organizations 
     to allow greater flexibility to adjust the application of 
     eligibility criteria, approved practices, innovative 
     conservation practices, and other elements of the programs 
     under this title to better reflect unique local circumstances 
     and purposes in a manner that is consistent with--
       ``(i) environmental enhancement and long-term 
     sustainability of the natural resource base; and
       ``(ii) the purposes and requirements of this title.
       ``(B) Plan.--Each party to an agreement under subparagraph 
     (A) shall submit to the Secretary, for approval by the 
     Secretary, a special project area or priority area program 
     plan for each program to be carried out by the party that 
     includes--
       ``(i) a description of the requested resources and 
     adjustments to program implementation (including a 
     description of how those adjustments will accelerate the 
     achievement of environmental benefits);
       ``(ii) an analysis of the contribution those adjustments 
     will make to the effectiveness of programs in achieving the 
     purposes of the special project or priority area program;
       ``(iii) a timetable for reevaluating the need for or 
     performance of the proposed adjustments;
       ``(iv) a description of non-Federal programs and resources 
     that will contribute to achieving the purposes of the special 
     project or priority area program; and
       ``(v) a plan for regular monitoring, evaluation, and 
     reporting of progress toward the purposes of the special 
     project or priority area program.
       ``(4) Purposes of special projects.--The purposes of 
     special projects carried out under this section shall be to 
     encourage--
       ``(A) producers to cooperate in the installation and 
     maintenance of conservation systems that affect multiple 
     agricultural operations;
       ``(B) the sharing of information and technical and 
     financial resources;
       ``(C) cumulative environmental benefits across operations 
     of producers; and
       ``(D) the development and demonstration of innovative 
     conservation methods.
       ``(5) Funding.--
       ``(A) In general.--In addition to resources from programs 
     under subtitle D, subject to subparagraph (B), the Secretary 
     shall use 5 percent of the funds made available for each 
     fiscal year under section 1241(b) to carry out activities 
     that are authorized under the environmental quality 
     incentives program established under chapter 4 of subtitle D.
       ``(B) Unused funding.--Any funds made available for a 
     fiscal year under subparagraph (A) that are not obligated by 
     April 1 of the fiscal year may be used to carry out other 
     activities under the environmental quality incentives program 
     during the fiscal year in which the funding becomes 
     available.''.

     SEC. 204. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

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

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

       ``(a) Good Faith Reliance.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, except as provided in paragraph (4), the Secretary shall 
     provide equitable relief to an owner, operator, or producer 
     that has entered into a contract under a conservation program 
     administered by the Secretary, and that is subsequently 
     determined to be in violation of the contract, if the owner, 
     operator, or producer, in attempting to comply with the terms 
     of the contract and enrollment requirements--
       ``(A) took actions in good faith reliance on the action or 
     advice of an employee of the Secretary; and
       ``(B) had no knowledge that the actions taken were in 
     violation of the contract.
       ``(2) Types of relief.--The Secretary shall--
       ``(A) to the extent the Secretary determines that an owner, 
     operator, or producer has been injured by good faith reliance 
     described in paragraph (1), allow the owner, operator, or 
     producer--
       ``(i) to retain payments received under the contract;
       ``(ii) to continue to receive payments under the contract;
       ``(iii) to keep all or part of the land covered by the 
     contract enrolled in the applicable program;
       ``(iv) to reenroll all or part of the land covered by the 
     contract in the applicable program; or
       ``(v) to receive any other equitable relief the Secretary 
     considers appropriate; and
       ``(B) require the owner, operator, or producer to take such 
     actions as are necessary to remedy any failure to comply with 
     the contract.
       ``(3) Relationship to other law.--The authority to provide 
     relief under this subsection shall be in addition to any 
     other authority provided in this or any other Act.
       ``(4) Exceptions.--This section shall not apply to--
       ``(A) any pattern of conduct in which an employee of the 
     Secretary takes actions or provides advice with respect to an 
     owner, operator, or producer that the employee and the owner, 
     operator, or producer know are inconsistent with applicable 
     law (including regulations); or
       ``(B) an owner, operator, or producer takes any action, 
     independent of any advice or authorization provided by an 
     employee of the Secretary, that the owner, operator, or 
     producer knows or should have known to be inconsistent with 
     applicable law (including regulations).
       ``(5) Applicability of relief.--Relief under this section 
     shall be available for contracts in effect on or after the 
     date of enactment of this section.
       ``(b) Education, Outreach, Monitoring, and Evaluation.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary--
       ``(1) shall provide education, outreach, training, 
     monitoring, evaluation, technical assistance, and related 
     services to agricultural producers (socially disadvantaged 
     agricultural producers, beginning farmers and ranchers, 
     Indian tribes (as those terms are defined in section 1238), 
     and limited resource agricultural producers);
       ``(2) may enter into contracts with States (including State 
     agencies and units of local government), private nonprofit, 
     community-based organizations, and educational institutions 
     with demonstrated experience in providing the services 
     described in paragraph (1), to provide those services; and
       ``(3) shall use such sums as are necessary from funds of 
     the Commodity Credit Corporation to carry out activities 
     described in paragraphs (1) and (2).
       ``(c) Beginning Farmers and Ranchers and Indian Tribes.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary may provide to beginning farmers and 
     ranchers and Indian tribes (as those terms are defined in 
     section 1238) and limited resource agricultural producers 
     incentives to participate in the conservation program to--
       ``(1) foster new farming opportunities; and
       ``(2) enhance environmental stewardship over the long term.
       ``(d) Program Evaluation.--The Secretary shall maintain 
     data concerning conservation security plans, conservation 
     practices planned or implemented, environmental outcomes, 
     economic costs, and related matters under conservation 
     programs administered by the Secretary.
       ``(e) Mediation and Informal Hearings.--If the Secretary 
     makes a decision under a conservation program administered by 
     the Secretary that is adverse to an owner, operator, or 
     producer, at the request of the owner, operator, or producer, 
     the Secretary shall provide the owner, operator, or producer 
     with mediation services or an informal hearing on the 
     decision.
       ``(f) Technical Assistance.--
       ``(1) In general.--Under any conservation program 
     administered by the Secretary, subject to paragraph (2), 
     technical assistance provided by persons certified under 
     paragraph (3) (including farmers and ranchers) may include--
       ``(A) conservation planning;

[[Page S1033]]

       ``(B) design, installation, and certification of 
     conservation practices;
       ``(C) conservation training for producers; and
       ``(D) such other conservation activities as the Secretary 
     determines to be appropriate.
       ``(2) Outside assistance.--
       ``(A) In general.--The Secretary may contract directly with 
     qualified persons not employed by the Department to provide 
     conservation technical assistance.
       ``(B) Payment by secretary.--Subject to subparagraph (C), 
     the Secretary may provide a payment to an owner, operator, or 
     producer enrolled in a conservation program administered by 
     the Secretary if the owner, operator, or producer elects to 
     obtain technical assistance from a person certified to 
     provide technical assistance under this subsection.
       ``(C) Nonprivate providers.--In determining whether to 
     provide a payment under subparagraph (B) to a nonprivate 
     provider, the Secretary shall provide a payment if the 
     provision of the payment would result in an increase in the 
     total amount of technical assistance available to producers, 
     as determined by the Secretary.
       ``(3) Certification of providers of technical assistance.--
       ``(A) Procedures.--
       ``(i) In general.--The Secretary shall establish procedures 
     for certifying persons not employed by the Department to 
     provide technical assistance in planning, designing, or 
     certifying activities to participate in any conservation 
     program administered by the Secretary to agricultural 
     producers and landowners participating, or seeking to 
     participate, in conservation programs administered by the 
     Secretary.
       ``(ii) Non-federal assistance.--The Secretary may request 
     the services of, and enter into a cooperative agreement with, 
     a State water quality agency, State fish and wildlife agency, 
     State forestry agency, State conservation agency or 
     conservation district, or any other governmental or 
     nongovernmental organization or person considered appropriate 
     by the Secretary to assist in providing the technical 
     assistance necessary to develop and implement conservation 
     plans under this title.
       ``(B) Equivalence.--The Secretary shall ensure that new 
     certification programs of the Department for providers of 
     technical assistance meet or exceed the testing and 
     continuing education standards of any certification program 
     that establishes nationally recognized and accepted standards 
     for training, testing, and other professional qualifications.
       ``(C) Standards.--The Secretary shall establish standards 
     for the conduct of--
       ``(i) the certification process conducted by the Secretary; 
     and
       ``(ii) periodic recertification by the Secretary of 
     providers.
       ``(D) Certification required.--
       ``(i) In general.--A provider may not provide to any 
     producer technical assistance described in paragraph 
     (3)(A)(i) unless the provider is certified by the Secretary.
       ``(ii) Waiver.--The Secretary may exempt a provider from 
     any requirement of this subparagraph if the Secretary 
     determines that the provider has been certified or 
     recertified to provide technical assistance through a program 
     the standards of which meet or exceed standards established 
     by the Secretary under subparagraph (C).
       ``(E) Fee.--
       ``(i) In general.--In exchange for certification or 
     recertification, a provider shall pay a fee to the Secretary 
     in an amount determined by the Secretary.
       ``(ii) Account.--A fee paid to the Secretary under clause 
     (i) shall be--

       ``(I) credited to the account in the Treasury that incurs 
     costs relating to implementing this subsection; and
       ``(II) made available to the Secretary for use for 
     conservation programs administered by the Secretary, without 
     further appropriation, until expended.

       ``(iii) Waiver.--The Secretary may waive any requirement of 
     any provider to pay a fee under this subparagraph if the 
     provider qualifies for a waiver under subparagraph (D)(ii).
       ``(F) Technical assistance advisory council.--
       ``(i) Purpose.--The Secretary shall establish a technical 
     assistance advisory council (referred to in this subparagraph 
     as the `advisory council') to advise the Secretary with 
     respect to the management of certification programs for the 
     provision of technical assistance for third party providers.
       ``(ii) Membership.--The membership of the advisory council 
     shall include--

       ``(I) representatives of the Federal Government and 
     appropriate State and local governments; and
       ``(II) not more than 20 additional members that represent 2 
     or more of the following:

       ``(aa) Agricultural producers.
       ``(bb) Agricultural industries.
       ``(cc) Wildlife and environmental entities.
       ``(dd) A minimum of 6 professional societies and 
     organizations.
       ``(ee) Such other entities (the representation of which on 
     the advisory council shall not exceed 4 members) as the 
     Secretary determines would contribute to the work of the 
     advisory council.
       ``(iii) Responsibilities.--The advisory council shall 
     advise the Secretary with respect to--

       ``(I) appropriate standards for certification;
       ``(II) the status of third party certification programs;
       ``(III) cases in which waivers for certification, 
     recertification and payment of fees should be allowed;
       ``(IV) periodic reviews of certification program; and
       ``(V) guidelines for penalties and disciplinary actions for 
     violation of certification requirements.

       ``(iv) Meetings.--

       ``(I) Initial meeting.--Not later than 30 days after the 
     date on which all members of the advisory council have been 
     appointed, the advisory council shall hold the initial 
     meeting of advisory council.
       ``(II) Subsequent meetings.--The Secretary shall require 
     the advisory council to meet as needed.

       ``(v) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subparagraph 
     such sums as are necessary for each of fiscal years 2002 
     through 2006.
       ``(4) Effect on implementation.--Nothing in this subsection 
     shall prohibit or impede the expeditious implementation of 
     the provision of third-party technical assistance under this 
     title.
       ``(5) Other requirements.--The Secretary may establish such 
     other requirements as the Secretary determines are necessary 
     to carry out this subsection.
       ``(g) Privacy of Personal Information Relating to Natural 
     Resources Conservation Programs.--
       ``(1) Information received for technical and financial 
     assistance.--
       ``(A) In general.--In accordance with section 552(b)(3) of 
     title 5, United States Code, except as provided in 
     subparagraph (C) and paragraph (3), information described in 
     subparagraph (B)--
       ``(i) shall not be considered to be public information; and
       ``(ii) shall not be released to any person or Federal, 
     State, local agency or Indian tribe (as defined in section 
     1238) outside the Department of Agriculture.
       ``(B) Information.--The information referred to in 
     subparagraph (A) is information--
       ``(i) provided to the Secretary or a contractor of the 
     Secretary (including information provided under subtitle D) 
     for the purpose of providing technical or financial 
     assistance to an owner, operator, or producer with respect to 
     any natural resources conservation program administered by 
     the Natural Resources Conservation Service or the Farm 
     Service Agency; and
       ``(ii) that is proprietary (within the meaning of section 
     552(b)(4) of title 5, United States Code) to the agricultural 
     operation or land that is a part of an agricultural operation 
     of the owner, operator, or producer.
       ``(C) Exception.--Information regarding owners, operators, 
     or producers that have received payments from the Secretary 
     and the amounts received, shall be--
       ``(i) considered to be public information; and
       ``(ii) may be released to any--

       ``(I) person;
       ``(II) Indian tribe (as defined in section 1238); or
       ``(III) Federal, State, local agency outside the Department 
     of Agriculture.

       ``(2) Inventory, monitoring, and site specific 
     information.--Except as provided in paragraph (3) and 
     notwithstanding any other provision of law, in order to 
     maintain the personal privacy, confidentiality, and 
     cooperation of owners, operators, and producers, and to 
     maintain the integrity of each unit at which primary sampling 
     for data gathering is carried out by the National Resources 
     Inventory (referred to in this subsection as a `data 
     gathering site'), the specific geographic locations of data 
     gathering sites, and the information generated by the data 
     gathering sites--
       ``(A) shall not be considered to be public information; and
       ``(B) shall not be released to any person or Federal, 
     State, local, or tribal agency outside the Department.
       ``(3) Exceptions.--
       ``(A) release and disclosure for enforcement.--The 
     Secretary may release or disclose to the Attorney General 
     information covered by paragraph (1) or (2) to the extent 
     necessary to enforce the natural resources conservation 
     programs referred to in paragraph (1)(B)(i).
       ``(B) Disclosure to cooperating persons and agencies.--
       ``(i) In general.--The Secretary may release or disclose 
     information covered by paragraph (1) or (2) to a person or 
     Federal, State, local, or tribal agency working in 
     cooperation with the Secretary in providing technical and 
     financial assistance described in paragraph (1)(B)(i) or 
     collecting information from data gathering sites.
       ``(ii) Use of information.--The person or Federal, State, 
     local, or tribal agency that receives information described 
     in clause (i) may release the information only for the 
     purpose of assisting the Secretary--

       ``(I) in providing the requested technical or financial 
     assistance; or
       ``(II) in collecting information from data gathering sites.

       ``(C) Statistical and aggregate information.--Information 
     covered by paragraph (1) or (2) may be disclosed to the 
     public if the information has been transformed into a 
     statistical or aggregate form without naming any--
       ``(i) individual owner, operator, or producer; or
       ``(ii) specific data gathering site.
       ``(D) Consent of owner, operator, or producer.--
       ``(i) In general.--An owner, operator, or producer may 
     consent to the disclosure of information described in 
     paragraph (1) or (2).
       ``(ii) Condition of other programs.--The participation of 
     the owner, operator, or producer in, and the receipt of any 
     benefit by the owner, operator, or producer under, this title 
     or any other program administered by the Secretary may not be 
     conditioned on the owner, operator, or producer providing 
     consent under this paragraph.
       ``(4) Violations; penalties.--Section 1770(c) shall apply 
     with respect to the release of information collected in any 
     manner or for any purpose prohibited by this subsection.

[[Page S1034]]

       ``(5) Data collection, disclosure, and review.--Nothing in 
     this subsection--
       ``(A) affects any procedure for data collection or 
     disclosure through the National Resources Inventory; or
       ``(B) limits the authority of Congress or the General 
     Accounting Office to review information collected or 
     disclosed under this subsection.
       ``(h) Indian Tribes.--In carrying out any conservation 
     program administered by the Secretary on land under the 
     jurisdiction of an Indian tribe (as defined in section 1238), 
     the Secretary shall cooperate with the tribal government of 
     the Indian tribe to ensure, to the maximum extent 
     practicable, that the program is administered in a fair and 
     equitable manner.''.

     SEC. 205. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

       (a) In General.--The Secretary of Agriculture shall develop 
     a plan for--
       (1) coordinating conservation programs administered by the 
     Secretary that are targeted at agricultural land to--
       (A) eliminate redundancy; and
       (B) improve delivery;
       (2) to the maximum extent practicable--
       (A) designing forms that are applicable to all conservation 
     programs administered by the Secretary;
       (B) reducing and consolidating paperwork requirements for 
     the programs;
       (C) developing universal classification systems for all 
     information obtained on the forms that can be used by other 
     agencies of the Department of Agriculture;
       (D) ensuring that the information and classification 
     systems developed under this paragraph can be shared with 
     other agencies of the Department through computer 
     technologies used by agencies; and
       (E) developing 1 format for a conservation plan that can be 
     applied to all conservation programs targeted at agricultural 
     land;
       (3) to the maximum extent practicable, improving the 
     delivery of conservation programs to Indian tribes (as 
     defined in section 4 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b)), including 
     programs for the delivery of conservation programs to Indian 
     tribes under plans carried out in conjunction with the 
     Secretary of the Interior; and
       (4) improving the regional distribution of program funds 
     and resources to ensure, to the maximum extent practicable, 
     that--
       (A) the highest conservation priorities of the United 
     States receive funding; and
       (B) regional variations in conservation costs are taken 
     into account.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes the plan 
     developed under subsection (a), including any recommendations 
     for implementation of the plan.
       (c) National Conservation Plan.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a plan and estimated budget for 
     implementing the appraisal of the soil, water, and related 
     resources of the United States contained in the national 
     conservation program under sections 5 and 6 of the Soil and 
     Water Resources Conservation Act of 1977 (16 U.S.C. 2004, 
     2005) as the primary vehicle for managing conservation on 
     agricultural land in the United States.
       (2) Report on implementation.--Not later than April 30, 
     2005, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that--
       (A) describes the status of the implementation of the plan 
     described in paragraph (1);
       (B) contains an evaluation of the scope, quality, and 
     outcomes of the conservation practices carried out under the 
     plan; and
       (C) makes recommendations for achieving specific and 
     quantifiable improvements for the purposes of programs 
     covered by the plan.
       (d) Conservation Practice Standards.--The Secretary of 
     Agriculture shall--
       (1) revise standards and, if necessary, establish 
     standards, for eligible conservation practices to include 
     measurable goals for enhancing natural resources, including 
     innovative practices;
       (2) not later than 180 days after the date of enactment of 
     this Act, revise the National Handbook of Conservation 
     Practices and field office technical guides of the Natural 
     Resources Conservation Service; and
       (3) not less frequently than once every 5 years, update the 
     Handbook and technical guides.

     SEC. 206. CONSERVATION SECURITY PROGRAM REGULATIONS.

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

     SEC. 207. CONFORMING AMENDMENTS.

       (a) Chapter 1 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended in 
     the chapter heading by striking ``ENVIRONMENTAL CONSERVATION 
     ACREAGE RESERVE PROGRAM'' and inserting ``COMPREHENSIVE 
     CONSERVATION ENHANCEMENT PROGRAM''.
       (b) Section 1230 of the Food Security Act of 1985 (16 
     U.S.C. 3830) is amended--
       (1) in the section heading, by striking ``environmental 
     conservation acreage reserve program'' and inserting `` 
     comprehensive conservation enhancement program'';
       (2) in subsection (a)(1), by striking ``an environmental 
     conservation acreage reserve program'' and inserting ``a 
     comprehensive conservation enhancement program''; and
       (3) by striking ``ECARP'' each place it appears and 
     inserting ``CCEP''.
       (c) Section 1230A of the Food Security Act of 1985 (16 
     U.S.C. 3830a) is repealed.
       (d) Section 1243 of the Food Security Act of 1985 (16 
     U.S.C. 3843) is amended by striking the section heading and 
     inserting the following:

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

                     Subtitle B--Program Extensions

     SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

       (a) In General.--Section 1230(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3830(a)) is amended--
       (1) in paragraph (1), by striking ``2002'' and inserting 
     ``2006''; and
       (2) in paragraph (3)--
       (A) in subparagraph (B), by striking ``and'' at the end; 
     and
       (B) by striking subparagraph (C) and inserting the 
     following:
       ``(C) the grassland reserve program established under 
     subchapter C of chapter 2;
       ``(D) the environmental quality incentives program 
     established under chapter 4;
       ``(E) the wildlife habitat incentive program established 
     under section 1240M; and
       ``(F) the program for conservation of private grazing land 
     established under section 1240P.''.
       (b) Priority.--Section 1230(c) of the Food Security Act of 
     1985 (16 U.S.C. 3830(c)) is amended by adding at the end the 
     following:
       ``(4) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of a program established under this 
     title.''.
       (c) Funding.--Section 1241(a) of the Food Security Act of 
     1985 (16 U.S.C. 3841(a)) is amended--
       (1) by striking ``2002'' and inserting ``2006'';
       (2) by inserting ``(including the provision of technical 
     assistance)'' after ``the programs'';
       (3) in paragraph (2)--
       (A) by striking ``subchapter C'' and inserting 
     ``subchapters C and D''; and
       (B) by striking ``and'' at the end;
       (4) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (5) by adding at the end the following:
       ``(4) chapter 6 of subtitle D.''.

     SEC. 212. CONSERVATION RESERVE PROGRAM.

       (a) Reauthorization.--
       (1) In general.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended in subsections (a), (b)(3), 
     and (d), by striking ``2002'' each place it appears and 
     inserting ``2006''.
       (2) Duties of owners and operators.--Section 1232(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
     striking ``2002'' and inserting ``2006''.
       (b) Conservation Priority Areas.--
       (1) Eligibility.--Section 1231(b) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) highly erodible cropland that--
       ``(A)(i) if permitted to remain untreated could 
     substantially reduce the production capability for future 
     generations; or
       ``(ii) cannot be farmed in accordance with a conservation 
     plan that complies with the requirements of subtitle B; and
       ``(B) the Secretary determines had a cropping history or 
     was considered to be planted for 3 of the 6 years preceding 
     the date of enactment of the Agriculture, Conservation, and 
     Rural Enhancement Act of 2002 (except for land enrolled in 
     the conservation reserve program as of that date);''; and
       (B) by adding at the end the following:
       ``(5) the portion of land in a field not enrolled in the 
     conservation reserve in a case in which more than 50 percent 
     of the land in the field is enrolled as a buffer under a 
     program described in paragraph (6)(A), if the land is 
     enrolled as part of the buffer; and
       ``(6) land (including land that is not cropland) enrolled 
     through continuous signup--
       ``(A) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 
     Fed. Reg. 14109) or a successor program; or
       ``(B) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.''.
       (2) CRP priority areas.--Section 1231(f) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(f)) is amended by adding 
     at the end the following:
       ``(5) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of the program established under 
     this subchapter.''.
       (c) Maximum Enrollment.--Section 1231(d) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(d)) is amended by 
     striking ``36,400,000'' and inserting ``41,100,000''.
       (d) Duration of Contracts; Hardwood Trees.--Section 1231(e) 
     of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 
     amended--
       (1) in paragraph (1), by striking ``For the purpose: and 
     inserting ``Except as provided in paragraph (2)(D), for the 
     purpose'';

[[Page S1035]]

       (2) in paragraph (2)--
       (A) by striking ``In the'' and inserting the following:
       ``(A) In general.--In the'';
       (B) by striking ``The Secretary'' and inserting the 
     following:
       ``(B) Existing hardwood tree contracts.--The Secretary''; 
     and
       (C) by adding at the end the following:
       ``(C) Extension of hardwood tree contracts.--
       ``(i) In general.--In the case of land devoted to hardwood 
     trees under a contract entered into under this subchapter 
     before the date of enactment of this subparagraph, the 
     Secretary may extend the contract for a term of not more than 
     15 years.
       ``(ii) Rental payments.--The amount of a rental payment for 
     a contract extended under clause (i)--

       ``(I) shall be determined by the Secretary; but
       ``(II) shall not exceed 50 percent of the rental payment 
     that was applicable to the contract before the contract was 
     extended.

       ``(D) New hardwood tree contracts.--
       ``(i) In general.--The Secretary may enter into contracts 
     of not less than 10, nor more than 30, years with owners of 
     land intended to be devoted to hardwood trees after the date 
     of enactment of this paragraph.
       ``(ii) Payments.--The Secretary shall make payments under a 
     contract described in clause (i)--

       ``(I) on an annual basis; and
       ``(II) at such an appropriate rate and in such appropriate 
     amounts as the Secretary shall determine in accordance with 
     subparagraph (C)(ii).

       ``(E) Hardwood planning goal.--The Secretary shall take 
     such steps as the Secretary determines are necessary to 
     ensure, to the maximum extent practicable, that all hardwood 
     tree sites annually enrolled in the conservation reserve 
     program are reforested with appropriate species.''; and
       (3) by adding at the end the following:
       ``(3) 1-year extension.--In the case of a contract 
     described in paragraph (1) the term of which expires during 
     calendar year 2002, an owner or operator of land enrolled 
     under the contract may extend the contract for 1 additional 
     year.''.
       (e) Pilot Program for Enrollment of Wetland and Buffer 
     Acreage in Conservation Reserve.--Section 1231(h) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) in paragraph (1), by striking ``During the 2001 and 
     2002 calendar years, the Secretary shall carry out a pilot 
     program'' and inserting ``During the 2002 through 2006 
     calendar years, the Secretary shall carry out a program'';
       (3) in paragraph (2), by striking ``pilot''; and
       (4) in paragraph (3)(D)(i), by striking ``5 contiguous 
     acres.'' and inserting ``10 contiguous acres, of which--

       ``(I) not more than 5 acres shall be eligible for payment; 
     and
       ``(II) all acres (including acres that are ineligible for 
     payment) shall be covered by the conservation contract.''.

       (f) Irrigated Land.--Section 1231 of the Food Security Act 
     of 1985 (16 U.S.C. 3831) is amended by adding at the end the 
     following:
       ``(i) Irrigated Land.--Irrigated land shall be enrolled in 
     the programs described in subsection (b)(6) at irrigated land 
     rates unless the Secretary determines that other compensation 
     is appropriate.''.
       (g) Vegetative Cover; Haying and Grazing; Wind Turbines.--
     Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 
     3832(a)) is amended--
       (1) in paragraph (4)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by inserting ``and'' after the 
     semicolon at the end; and
       (C) by adding at the end the following:
       ``(C) in the case of marginal pasture land, an owner or 
     operator shall not be required to plant trees if the land is 
     to be restored--
       ``(i) as wetland; or
       ``(ii) with appropriate native riparian vegetation;'';
       (2) in paragraph (7)--
       (A) by striking ``except that the Secretary--'' and 
     inserting ``except that--'';
       (B) in subparagraph (A)--
       (i) by striking ``(A) may'' and inserting ``(A) the 
     Secretary may''; and
       (ii) by striking ``and'' at the end;
       (C) in subparagraph (B)--
       (i) by striking ``(B) shall'' and inserting ``(B) the 
     Secretary shall''; and
       (ii) by striking the period at the end and inserting a 
     semicolon;
       (D) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following:
       ``(D) for maintenance purposes, the Secretary may permit 
     harvesting or grazing or other commercial uses of forage, in 
     a manner that is consistent with the purposes of this 
     subchapter and a conservation plan approved by the Secretary, 
     on acres enrolled--
       ``(i) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 
     Fed. Reg. 14109) or a successor program; and
       ``(ii) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.'';
       (3) in paragraph (9), by striking ``and'' at the end;
       (4) by redesignating paragraph (10) as paragraph (11); and
       (5) by inserting after paragraph (9) the following:
       ``(10) with respect to any contract entered into after the 
     date of enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2002--
       ``(A) not to produce a crop for the duration of the 
     contract on any other highly erodible land that the owner or 
     operator owns unless the highly erodible land--
       ``(i) has a history of being used to produce a crop other 
     than a forage crop, as determined by the Secretary; or
       ``(ii) is being used as a homestead or building site at the 
     time of purchase; and
       ``(B) on a violation of a contract described in 
     subparagraph (A), to be subject to the requirements of 
     paragraph (5); and''.
       (h) Wind Turbines.--Section 1232 of the Food Security Act 
     of 1985 (8906 U.S.C. 3832) is amended by adding at the end 
     the following:
       ``(f) Wind Turbines.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may permit an owner or operator of land that is enrolled in 
     the conservation reserve program, but that is not enrolled 
     under continuous signup (as described in section 1231(b)(6)), 
     to install wind turbines on the land.
       ``(2) Number; location.--The Secretary shall determine the 
     number and location of wind turbines that may be installed on 
     a tract of land under paragraph (1), taking into account--
       ``(A) the location, size, and other physical 
     characteristics of the land;
       ``(B) the extent to which the land contains wildlife and 
     wildlife habitat; and
       ``(C) the purposes of the conservation reserve program.
       ``(3) Payment limitation.--Notwithstanding the amount of a 
     rental payment limited by section 1234(c)(2) and specified in 
     a contract entered into under this chapter, the Secretary 
     shall reduce the amount of the rental payment paid to an 
     owner or operator of land on which 1 or more wind turbines 
     are installed under this subsection by an amount determined 
     by the Secretary to be commensurate with the value of the 
     reduction of benefit gained by enrollment of the land in the 
     conservation reserve program.''.
       (i) Additional Eligible Practices.--Section 1234 of the 
     Food Security Act of 1985 (16 U.S.C. 3834) is amended by 
     adding at the end the following:
       ``(i) Payments.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall provide signing and practice incentive payments under 
     the conservation reserve program to owners and operators that 
     implement a practice under--
       ``(A) the program to establish conservation buffers 
     described in a notice issued on March 24, 1998 (63 Fed. Reg. 
     14109) or a successor program; or
       ``(B) the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.
       ``(2) Other practices.--The Secretary shall administer 
     paragraph (1) in a manner that does not reduce the amount of 
     payments made by the Secretary for other practices under the 
     conservation reserve program.''.
       (j) Payments.--Section 1239C(f) of the Food Security Act of 
     1985 (16 U.S.C. 3839c(f)) is amended by adding at the end the 
     following:
       ``(5) Exception.--Paragraph (1) shall not apply to any land 
     enrolled in--
       ``(A) the program to establish conservation buffers 
     described in a notice issued on March 24, 1998 (63 Fed. Reg. 
     14109) or a successor program; or
       ``(B) the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.''.
       (k) County Participation.--Section 1243(b)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3843(b)(1)) is amended by 
     striking ``The Secretary'' and inserting ``Except for land 
     enrolled under continuous signup (as described in section 
     1231(b)(6)), the Secretary''.
       (l) Study on Economic Effects.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes the 
     economic and social effects on rural communities resulting 
     from the conservation reserve program established under 
     subchapter B of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
       (2) Components.--The study under paragraph (1) shall 
     include analyses of--
       (A) the impact that enrollments in the conservation reserve 
     program described in that paragraph have on rural businesses, 
     civic organizations, and community services (such as schools, 
     public safety, and infrastructure), particularly in 
     communities with a large percentage of whole farm 
     enrollments;
       (B) the effect that those enrollments have on rural 
     population and beginning farmers (including a description of 
     any connection between the rate of enrollment and the 
     incidence of absentee ownership); and
       (C)(i) the manner in which differential per acre payment 
     rates potentially impact the types of land (by productivity) 
     enrolled;
       (ii) changes to the per acre payment rates that may affect 
     that impact; and
       (iii) the manner in which differential per acre payment 
     rates could facilitate retention of productive agricultural 
     land in agriculture.

     SEC. 213. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       (a) In General.--Chapter 4 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) is 
     amended to read as follows:

     ``SEC. 1240. PURPOSES.

       ``The purposes of the environmental quality incentives 
     program established by this chapter are to promote 
     agricultural production and environmental quality as 
     compatible national goals, and to maximize environmental 
     benefits per dollar expended, by--

[[Page S1036]]

       ``(1) assisting producers in complying with--
       ``(A) this title;
       ``(B) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(C) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
       ``(D) the Clean Air Act (42 U.S.C. 7401 et seq.); and
       ``(E) other Federal, State, tribal, and local environmental 
     laws (including regulations);
       ``(2) avoiding, to the maximum extent practicable, the need 
     for resource and regulatory programs by assisting producers 
     in protecting soil, water, air, and related natural resources 
     and meeting environmental quality criteria established by 
     Federal, State, tribal, and local agencies;
       ``(3) providing flexible technical and financial assistance 
     to producers to install and maintain conservation systems 
     that enhance soil, water, related natural resources 
     (including grazing land and wetland), and wildlife while 
     sustaining production of food and fiber;
       ``(4) assisting producers to make beneficial, cost 
     effective changes to cropping systems, grazing management, 
     nutrient management associated with livestock, pest or 
     irrigation management, or other practices on agricultural 
     land;
       ``(5) facilitating partnerships and joint efforts among 
     producers and governmental and nongovernmental organizations; 
     and
       ``(6) consolidating and streamlining conservation planning 
     and regulatory compliance processes to reduce administrative 
     burdens on producers and the cost of achieving environmental 
     goals.

     ``SEC. 1240A. DEFINITIONS.

       ``In this chapter:
       ``(1) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning provided under section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1999(a)).
       ``(2) Comprehensive nutrient management.--
       ``(A) In general.--The term `comprehensive nutrient 
     management' means any combination of structural practices, 
     land management practices, and management activities 
     associated with crop or livestock production described in 
     subparagraph (B) that collectively ensure that the purposes 
     of crop or livestock production and preservation of natural 
     resources (especially the preservation and enhancement of 
     water quality) are compatible.
       ``(B) Elements.--For the purpose of subparagraph (A), 
     structural practices, land management practices, and 
     management activities associated with livestock production 
     are--
       ``(i) manure and wastewater handling and storage;
       ``(ii) manure processing, composting, or digestion for 
     purposes of capturing emissions, concentrating nutrients for 
     transport, destroying pathogens or otherwise improving the 
     environmental safety and beneficial uses of manure;
       ``(iii) land treatment practices;
       ``(iv) nutrient management;
       ``(v) recordkeeping;
       ``(vi) feed management; and
       ``(vii) other waste utilization options.
       ``(C) Practice.--
       ``(i) Planning.--The development of a comprehensive 
     nutrient management plan shall be a practice that is eligible 
     for incentive payments and technical assistance under this 
     chapter.
       ``(ii) Implementation.--The implementation of a 
     comprehensive nutrient plan shall be accomplished through 
     structural and land management practices identified in the 
     plan.
       ``(iii) Requirement.--A comprehensive nutrient management 
     plan shall meet all Federal, State, and local water quality 
     and public health goals and regulations, and in the case of a 
     large confined livestock operation (as defined by the 
     Secretary), shall include all necessary and essential land 
     treatment practices as determined by the Secretary.
       ``(3) Eligible land.--The term `eligible land' means 
     agriculture land (including cropland, grassland, rangeland, 
     pasture, private nonindustrial forest land and other land on 
     which crops or livestock are produced), including 
     agricultural land 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.
       ``(4) Innovative technology.--The term `innovative 
     technology' means a new conservation technology that, as 
     determined by the Secretary--
       ``(A) maximizes environmental benefits;
       ``(B) complements agricultural production; and
       ``(C) may be adopted in a practical manner.
       ``(5) Land management practices.--The term `land management 
     practice' means a site-specific nutrient or manure 
     management, integrated pest management, irrigation 
     management, tillage or residue management, grazing 
     management, air quality management, or other land management 
     practice carried out on eligible land that the Secretary 
     determines is needed to protect from degradation, in the most 
     cost-effective manner, water, soil, or related resource.
       ``(6) Livestock.--The term `livestock' means dairy cattle, 
     beef cattle, laying hens, broilers, turkeys, swine, sheep, 
     and other such animals as are determined by the Secretary.
       ``(7) Managed grazing.--The term `managed grazing' means 
     the application of 1 or more practices that involve the 
     frequent rotation of animals on grazing land to--
       ``(A) enhance plant health;
       ``(B) limit soil erosion;
       ``(C) protect ground and surface water quality; or
       ``(D) benefit wildlife.
       ``(8) Maximize environmental benefits per dollar 
     expended.--
       ``(A) In general.--The term `maximize environmental 
     benefits per dollar expended' means to maximize environmental 
     benefits to the extent the Secretary determines is 
     practicable and appropriate, taking into account the amount 
     of funding made available to carry out this chapter.
       ``(B) Limatation.--The term `maximize environmental 
     benefits per dollar expended' does not require the 
     Secretary--
       ``(i) to require the adoption of the least cost practice or 
     technical assistance; or
       ``(ii) to require the development of a plan under section 
     1240E as part of an application for payments or technical 
     assistance.
       ``(9) Practice.--The term `practice' means 1 or more 
     structural practices, land management practices, and 
     comprehensive nutrient management planning practices.
       ``(10) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing any crop or 
     livestock; and
       ``(ii) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       ``(B) Hybrid seed growers.--In determining whether a grower 
     of hybrid seed is a producer, the Secretary shall not take 
     into consideration the existence of a hybrid seed contract.
       ``(11) Program.--The term `program' means the environmental 
     quality incentives program comprised of sections 1240 through 
     1240J.
       ``(12) Structural practice.--The term `structural practice' 
     means--
       ``(A) the establishment on eligible land of a site-specific 
     animal waste management facility, terrace, grassed waterway, 
     contour grass strip, filterstrip, tailwater pit, permanent 
     wildlife habitat, constructed wetland, or other structural 
     practice that the Secretary determines is needed to protect, 
     in the most cost effective manner, water, soil, or related 
     resources from degradation; and
       ``(B) the capping of abandoned wells on eligible land.

     ``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF 
                   ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During each of the 2002 through 2006 
     fiscal years, the Secretary shall provide technical 
     assistance, cost-share payments, and incentive payments to 
     producers that enter into contracts with the Secretary under 
     the program.
       ``(2) Eligible practices.--
       ``(A) Structural practices.--A producer that implements a 
     structural practice shall be eligible for any combination of 
     technical assistance, cost-share payments, and education.
       ``(B) Land management practices.--A producer that performs 
     a land management practice shall be eligible for any 
     combination of technical assistance, incentive payments, and 
     education.
       ``(C) Comprehensive nutrient management planning.--A 
     producer that develops a comprehensive nutrient management 
     plan shall be eligible for any combination of technical 
     assistance, incentive payments, and education.
       ``(3) Education.--The Secretary may provide conservation 
     education at national, State, and local levels consistent 
     with the purposes of the program to--
       ``(A) any producer that is eligible for assistance under 
     the program; or
       ``(B) any producer that is engaged in the production of an 
     agricultural commodity.
       ``(b) Application and Term.--With respect to practices 
     implemented under this program--
       ``(1) a contract between a producer and the Secretary may--
       ``(A) apply to 1 or more structural practices, land 
     management practices, and comprehensive nutrient management 
     planning practices; and
       ``(B) have a term of not less that 3, or more than 10 
     years, as determined appropriate by the Secretary, depending 
     on the practice or practices that are the basis of the 
     contract;
       ``(2) a producer may not enter into more than 1 contract 
     for structural practices involving livestock nutrient 
     management during the period of fiscal years 2002 through 
     2006; and
       ``(3) a producer that has an interest in more than 1 large 
     confined livestock operation, as defined by the Secretary, 
     may not enter into more than 1 contract for cost-share 
     payments for a storage or treatment facility, or associated 
     waste transport or transfer device, to manage manure, process 
     wastewater, or other animal waste generated by the large 
     confined livestock feeding operation.
       ``(c) Application and Evaluation.--
       ``(1) In general.--The Secretary shall establish an 
     application and evaluation process for awarding technical 
     assistance, cost-share payments and incentive payments to a 
     producer in exchange for the performance of 1 or more 
     practices that maximize environmental benefits per dollar 
     expended.
       ``(2) Comparable environmental value.--
       ``(A) In general.--The Secretary shall establish a process 
     for selecting applications for technical assistance, cost-
     share payments, and incentive payments in any case in which 
     there are numerous applications for assistance for practices 
     that would provide substantially the same level of 
     environmental benefits.
       ``(B) Criteria.--The process under subparagraph (A) shall 
     be based on--
       ``(i) a reasonable estimate of the projected cost of the 
     proposals described in the applications; and
       ``(ii) the priorities established under the program, and 
     other factors, that maximize environmental benefits per 
     dollar expended.
       ``(3) Consent of owner.--If the producer making an offer to 
     implement a structural practice is a tenant of the land 
     involved in agricultural production, for the offer to be 
     acceptable,

[[Page S1037]]

     the producer shall obtain the consent of the owner of the 
     land with respect to the offer.
       ``(4) Bidding down.--If the Secretary determines that the 
     environmental values of 2 or more applications for technical 
     assistance, cost-share payments, or incentive payments are 
     comparable, the Secretary shall not assign a higher priority 
     to the application only because it would present the least 
     cost to the program established under the program.
       ``(d) Cost-Share Payments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     cost-share payments provided to a producer proposing to 
     implement 1 or more practices under the program shall be not 
     more than 75 percent of the cost of the practice, as 
     determined by the Secretary.
       ``(2) Exceptions.--
       ``(A) Limited resource and beginning farmers.--The 
     Secretary may increase the amount provided to a producer 
     under paragraph (1) to not more than 90 percent if the 
     producer is a limited resource or beginning farmer or 
     rancher, as determined by the Secretary.
       ``(B) Cost-share assistance from other sources.--Except as 
     provided in paragraph (3), any cost-share payments received 
     by a producer from a State or private organization or person 
     for the implementation of 1 or more practices on eligible 
     land of the producer shall be in addition to the payments 
     provided to the producer under paragraph (1).
       ``(3) Other payments.--A producer shall not be eligible for 
     cost-share payments for practices on eligible land under the 
     program if the producer receives cost-share payments or other 
     benefits for the same practice on the same land under chapter 
     1 and the program.
       ``(e) Incentive Payments.--The Secretary shall make 
     incentive payments in an amount and at a rate determined by 
     the Secretary to be necessary to encourage a producer to 
     perform 1 or more practices.
       ``(f) Technical Assistance.--
       ``(1) In general.--The Secretary shall allocate funding 
     under the program for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       ``(2) Amount.--The allocated amount may vary according to--
       ``(A) the type of expertise required;
       ``(B) the quantity of time involved; and
       ``(C) other factors as determined appropriate by the 
     Secretary.
       ``(3) Limitation.--Funding for technical assistance under 
     the program shall not exceed the projected cost to the 
     Secretary of the technical assistance provided for a fiscal 
     year.
       ``(4) Other authorities.--The receipt of technical 
     assistance under the program shall not affect the eligibility 
     of the producer to receive technical assistance under other 
     authorities of law available to the Secretary.
       ``(5) Incentive payments for technical assistance.--
       ``(A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance associated with the development of any component 
     of the comprehensive nutrient management plan.
       ``(B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a certified provider.
       ``(C) Payment.--The incentive payment shall be--
       ``(i) in addition to cost-share or incentive payments that 
     a producer would otherwise receive for structural practices 
     and land management practices;
       ``(ii) used only to procure technical assistance from a 
     certified provider that is necessary to develop any component 
     of a comprehensive nutrient management plan; and
       ``(iii) in an amount determined appropriate by the 
     Secretary, taking into account--

       ``(I) the extent and complexity of the technical assistance 
     provided;
       ``(II) the costs that the Secretary would have incurred in 
     providing the technical assistance; and
       ``(III) the costs incurred by the private provider in 
     providing the technical assistance.

       ``(D) Eligible practices.--The Secretary may determine, on 
     a case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       ``(E) Certification by secretary.--
       ``(i) In general.--Only persons that have been certified by 
     the Secretary under section 1244(f)(3) shall be eligible to 
     provide technical assistance under this subsection.
       ``(ii) Quality assurance.--The Secretary shall ensure that 
     certified providers are capable of providing technical 
     assistance regarding comprehensive nutrient management in a 
     manner that meets the specifications and guidelines of the 
     Secretary and that meets the needs of producers under the 
     program.
       ``(F) Advance payment.--On the determination of the 
     Secretary that the proposed comprehensive nutrient management 
     of a producer is eligible for an incentive payment, the 
     producer may receive a partial advance of the incentive 
     payment in order to procure the services of a certified 
     provider.
       ``(G) Final payment.--The final installment of the 
     incentive payment shall be payable to a producer on 
     presentation to the Secretary of documentation that is 
     satisfactory to the Secretary and that demonstrates--
       ``(i) completion of the technical assistance; and
       ``(ii) the actual cost of the technical assistance.
       ``(g) Modification or Termination of Contracts.--
       ``(1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       ``(A) the producer 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 producer violated the contract.

     ``SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

       ``(a) In General.--In evaluating applications for technical 
     assistance, cost-share payments, and incentive payments, the 
     Secretary shall accord a higher priority to assistance and 
     payments that--
       ``(1) maximize environmental benefits per dollar expended; 
     and
       ``(2)(A) address national conservation priorities, 
     including--
       ``(i) meeting Federal, State, and local environmental 
     purposes focused on protecting air and water quality, 
     including assistance to production systems and practices that 
     avoid subjecting an operation to Federal, State, or local 
     environmental regulatory systems;
       ``(ii) applications from livestock producers using managed 
     grazing systems and other pasture and forage based systems;
       ``(iii) comprehensive nutrient management;
       ``(iv) water quality, particularly in impaired watersheds;
       ``(v) soil erosion;
       ``(vi) air quality; or
       ``(vii) pesticide and herbicide management or reduction;
       ``(B) are provided in conservation priority areas 
     established under section 1230(c);
       ``(C) are provided in special projects under section 
     1243(f)(4) with respect to which State or local governments 
     have provided, or will provide, financial or technical 
     assistance to producers for the same conservation or 
     environmental purposes; or
       ``(D) an innovative technology in connection with a 
     structural practice or land management practice.

     ``SEC. 1240D. DUTIES OF PRODUCERS.

       ``To receive technical assistance, cost-share payments, or 
     incentive payments under the program, a producer shall 
     agree--
       ``(1) to implement an environmental quality incentives 
     program plan that describes conservation and environmental 
     purposes to be achieved through 1 or more practices that are 
     approved by the Secretary;
       ``(2) not to conduct any practices on the farm or ranch 
     that would tend to defeat the purposes of the program;
       ``(3) on the violation of a term or condition of the 
     contract at anytime the producer has control of the land--
       ``(A) if the Secretary determines that the violation 
     warrants termination of the contract--
       ``(i) to forfeit all rights to receive payments under the 
     contract; and
       ``(ii) to refund to the Secretary all or a portion of the 
     payments received by the owner or operator under the 
     contract, including any interest on the payments, as 
     determined by the Secretary; or
       ``(B) if the Secretary determines that the violation does 
     not warrant termination of the contract, to refund to the 
     Secretary, or accept adjustments to, the payments provided to 
     the owner or operator, as the Secretary determines to be 
     appropriate;
       ``(4) on the transfer of the right and interest of the 
     producer 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-share payments and incentive payments 
     received under the program, as determined by the Secretary;
       ``(5) to supply information as required by the Secretary to 
     determine compliance with the program plan and requirements 
     of the program;
       ``(6) to comply with such additional provisions as the 
     Secretary determines are necessary to carry out the program 
     plan; and
       ``(7) to submit a list of all confined livestock feeding 
     operations wholly or partially owned or operated by the 
     applicant.

     ``SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       ``(a) In General.--To be eligible to receive technical 
     assistance, cost-share payments, or incentive payments under 
     the program, a producer of a livestock or agricultural 
     operation shall submit to the Secretary for approval a plan 
     of operations that specifies practices covered under the 
     program, and is based on such terms and conditions, as the 
     Secretary considers necessary to carry out the program, 
     including a description of the practices to be implemented 
     and the purposes to be met by the implementation of the plan, 
     and in the case of confined livestock feeding operations, 
     development and implementation of a comprehensive nutrient 
     management plan, and in the case of confined livestock 
     feeding operations, development and implementation of a 
     comprehensive nutrient management plan.
       ``(b) Avoidance of Duplication.--The Secretary shall, to 
     the maximum extent practicable, eliminate duplication of 
     planning activities under the program and comparable 
     conservation programs.

     ``SEC. 1240F. DUTIES OF THE SECRETARY.

       ``To the extent appropriate, the Secretary shall assist a 
     producer in achieving the conservation and environmental 
     goals of a program plan by--
       ``(1) providing technical assistance in developing and 
     implementing the plan;
       ``(2) providing technical assistance, cost-share payments, 
     or incentive payments for developing and implementing 1 or 
     more practices, as appropriate;

[[Page S1038]]

       ``(3) providing the producer with information, education, 
     and training to aid in implementation of the plan; and
       ``(4) encouraging the producer to obtain technical 
     assistance, cost-share payments, or grants from other 
     Federal, State, local, or private sources.

     ``SEC. 1240G. LIMITATION ON PAYMENTS.

       ``(a) In General.--Subject to subsection (b), the total 
     amount of cost-share and incentive payments paid to a 
     producer under this chapter shall not exceed--
       ``(1) $30,000 for any fiscal year, regardless of whether 
     the producer has more than 1 contract under this chapter for 
     the fiscal year;
       ``(2) $90,000 for a contract with a term of 3 years;
       ``(3) $120,000 for a contract with a term of 4 years; or
       ``(4) $150,000 for a contract with a term of more than 4 
     years.
       ``(b) Attribution.--An individual or entity shall not 
     receive, directly or indirectly, total payments from single 
     or multiple contracts under this chapter that exceed $30,000 
     for any fiscal year.
       ``(c) Exception to Annual Limit.--The Secretary may exceed 
     the limitation on the annual amount of a payment to a 
     producer under subsection (a)(1) if the Secretary determines 
     that a larger payment is--
       ``(1) essential to accomplish the land management practice 
     or structural practice for which the payment is made to the 
     producer; and
       ``(2) consistent with the maximization of environmental 
     benefits per dollar expended and the purposes of this 
     chapter.
       ``(d) Verification.--The Secretary shall identify 
     individuals and entities that are eligible for a payment 
     under the program using social security numbers and taxpayer 
     identification numbers, respectively.

     ``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

       ``(a) In General.--From funds made available to carry out 
     the program, for each of the 2003 through 2006 fiscal years, 
     the Secretary shall use not more than $100,000,000 for each 
     fiscal year to pay the cost of competitive grants that are 
     intended to stimulate innovative approaches to leveraging 
     Federal investment in environmental enhancement and 
     protection, in conjunction with agricultural production, 
     through the program.
       ``(b) Use.--The Secretary may award grants under this 
     section to governmental and nongovernmental organizations and 
     persons, on a competitive basis, to carry out projects that--
       ``(1) involve producers that are eligible for payments or 
     technical assistance under the program;
       ``(2) implement innovative projects, such as--
       ``(A) market systems for pollution reduction;
       ``(B) promoting agricultural best management practices, 
     including the storing of carbon in the soil;
       ``(C) protection of source water for human consumption; and
       ``(D) reducing negative effects on watersheds, including 
     through the significant reduction in nutrient applications, 
     as determined by the Secretary; and
       ``(3) leverage funds made available to carry out the 
     program with matching funds provided by State and local 
     governments and private organizations to promote 
     environmental enhancement and protection in conjunction with 
     agricultural production.
       ``(c) Cost Share.--The amount of a grant made under this 
     section to carry out a project shall not exceed 50 percent of 
     the cost of the project.
       ``(d) Unused Funding.--Any funds made available for a 
     fiscal year under this section that are not obligated by 
     April 1 of the fiscal year may be used to carry out other 
     activities under this chapter during the fiscal year in which 
     the funding becomes available.

     ``SEC. 1240I. SOUTHERN HIGH PLAINS AQUIFER GROUNDWATER 
                   CONSERVATION.

       ``(a) Definitions.--In this section:
       ``(1) Eligible activity.--
       ``(A) In general.--The term `eligible activity' means an 
     activity carried out to conserve groundwater.
       ``(B) Inclusions.--The term `eligible activity' includes an 
     activity to--
       ``(i) improve an irrigation system;
       ``(ii) reduce the use of water for irrigation (including 
     changing from high-water intensity crops to low-water 
     intensity crops); or
       ``(iii) convert from farming that uses irrigation to 
     dryland farming.
       ``(2) Southern high plains aquifer.--The term `Southern 
     High Plains Aquifer' means the portion of the groundwater 
     reserve under Kansas, New Mexico, Oklahoma, and Texas 
     depicted as Figure 1 in the United States Geological Survey 
     Professional Paper 1400-B, entitled `Geohydrology of the High 
     Plains Aquifer in Parts of Colorado, Kansas, Nebraska, New 
     Mexico, Oklahoma, South Dakota, Texas, and Wyoming'.
       ``(b) Conservation Measures.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall provide cost-share payments, incentive payments, and 
     groundwater education assistance to producers that draw water 
     from the Southern High Plains Aquifer to carry out eligible 
     activities.
       ``(2) Limitations.--The Secretary shall provide a payment 
     to a producer under this section only if the Secretary 
     determines that the payment will result in a net savings in 
     groundwater resources on the land of the producer.
       ``(3) Cooperation.--In accordance with this subtitle, in 
     providing groundwater education under this subsection, the 
     Secretary shall cooperate with--
       ``(A) States;
       ``(B) land-grant colleges and universities;
       ``(C) other educational institutions;
       ``(D) State cooperative extension services; and
       ``(E) private organizations.
       ``(c) Funding.--
       ``(1) In general.--Of the funds made available under 
     section 1241(b) to carry out the program, the Secretary shall 
     use to carry out this section--
       ``(A) $15,000,000 for fiscal year 2003;
       ``(B) $25,000,000 for each of fiscal years 2004 and 2005;
       ``(C) $35,000,000 for fiscal year 2006; and
       ``(D) $0 for fiscal year 2007.
       ``(2) Other funds.--Subject to paragraph (3), the funds 
     made available under this subsection shall be in addition to 
     any other funds provided under the program.
       ``(3) Unused funding.--Any funds made available for a 
     fiscal year under paragraph (1) that are not obligated by 
     April 1 of the fiscal year shall be used to carry out other 
     activities in other States under the program.

     ``SEC. 1240J. PILOT PROGRAMS.

       ``(a) Drinking Water Suppliers Pilot Program.--
       ``(1) In general.--For each fiscal year, the Secretary may 
     carry out, in watersheds selected by the Secretary, in 
     cooperation with local water utilities, a pilot program to 
     improve water quality.
       ``(2) Implementation.--The Secretary may select the 
     watersheds referred to in paragraph (1), and make available 
     funds (including funds for the provision of incentive 
     payments) to be allocated to producers in partnership with 
     drinking water utilities in the watersheds, if the drinking 
     water utilities agree to measure water quality at such 
     intervals and in such a manner as may be determined by the 
     Secretary.
       ``(b) Nutrient Reduction Pilot Program.--
       ``(1) Definition of chesapeake executive council.--In this 
     subsection, the term `Chesapeake Executive Council' means the 
     Federal-State council--
       ``(A) comprised of--
       ``(i) the mayor of the District of Columbia;
       ``(ii) the Governors of the States of Maryland, 
     Pennsylvania, and Virginia;
       ``(iii) the Administrator of the Environmental Protection 
     Agency; and
       ``(iv) the Chair of the Chesapeake Bay Commission; and
       ``(B) charged with the policy leadership, coordination, and 
     implementation of the region-wide Chesapeake Bay Program 
     restoration effort.
       ``(2) Program.--For each of fiscal years 2003 through 2006, 
     the Secretary shall use funds made available to carry out the 
     program, in the amounts specified in paragraph (5), in the 
     Chesapeake Bay watershed to provide incentive payments to 
     producers to--
       ``(A) reduce nutrient loads to the Chesapeake Bay; and
       ``(B) achieve the goals of the Chesapeake Executive 
     Council.
       ``(3) Priority; measurement; payments.--In carrying out 
     paragraph (2), the Secretary shall--
       ``(A) give priority to nutrient reduction techniques that 
     reduce nutrient applications rates to a level that is 
     substantially below the level recommended in a best 
     management practice (as identified by the Secretary);
       ``(B) measure any reduction in nutrient application rates 
     by an appropriate indicator of actual performance (such as 
     the level of nutrients applied or fixed in excess of crop 
     removal); and
       ``(C) increase the amount of an incentive payment to a 
     producer to reflect superior performance by the producer.
       ``(4) Partnerships.--The Secretary shall carry out this 
     subsection in partnership with--
       ``(A) State governments;
       ``(B) nonprofit organizations approved by the Secretary; 
     and
       ``(C) State colleges and universities.
       ``(5) Funding.--
       ``(A) In general.--Of the amounts made available under 
     section 1241(b) to carry out the program, the Secretary shall 
     use to carry out this subsection--
       ``(i) $10,000,000 for fiscal year 2003;
       ``(ii) $15,000,000 for fiscal year 2004;
       ``(iii) $20,000,000 for fiscal year 2005;
       ``(iv) $25,000,000 for fiscal year 2006; and
       ``(v) $0 for fiscal year 2007.
       ``(B) Unexpended funds.--Any funds made available for a 
     fiscal year under subparagraph (A) that are not obligated by 
     April 1 of the fiscal year shall be used to carry out other 
     activities under this chapter.
       ``(c) Consistency With Watershed Plan.--In allocating funds 
     for the pilot programs under subsections (a) and (b) and any 
     other pilot programs carried out under the program, the 
     Secretary shall take into consideration the extent to which 
     an application for the funds is consistent with--
       ``(1) any applicable locally developed watershed plan; and
       ``(2) the factors established by section 1240C.
       ``(d) Contracts.--
       ``(1) In general.--In carrying out this section, in 
     addition to other requirements under the program, the 
     Secretary shall enter into contracts in accordance with this 
     section with producers the activities of which affect water 
     quality (including the quality of public drinking water 
     supplies) to implement and maintain--
       ``(A) nutrient management;
       ``(B) pest management;
       ``(C) soil erosion practices; and
       ``(D) other conservation activities that protect water 
     quality and human health.
       ``(2) Requirements.--A contract described in paragraph (1) 
     shall--
       ``(A) describe the specific nutrient management, pest 
     management, soil erosion, or other practices to be 
     implemented, maintained, or improved;
       ``(B) contain a schedule of implementation for those 
     practices;

[[Page S1039]]

       ``(C) to the maximum extent practicable, address water 
     quality priorities of the watershed in which the operation is 
     located; and
       ``(D) contain such other terms as the Secretary determines 
     to be appropriate.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Environmental Quality Incentives Program.--Subject to 
     section 241 of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2002, of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to provide 
     technical assistance, cost-share payments, incentive 
     payments, bonus payments, grants, and education under the 
     environmental quality incentives program under chapter 4 of 
     subtitle D, to remain available until expended--
       ``(1) $500,000,000 for fiscal year 2002;
       ``(2) $1,300,000,000 for fiscal year 2003;
       ``(3) $1,450,000,000 for each of fiscal years 2004 and 
     2005;
       ``(4) $1,500,000,000 for fiscal year 2006; and
       ``(5) $850,000,000 for fiscal year 2007.''.
       (c) Reimbursements.--Section 11 of the Commodity Credit 
     Corporation Charter Act (15 U.S.C. 714i) is amended in the 
     last sentence by inserting ``but excluding transfers and 
     allotments for conservation technical assistance'' after 
     ``activities''.

     SEC. 214. WETLANDS RESERVE PROGRAM.

       (a) Technical Assistance.--Section 1237(a) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(a)) is amended by 
     inserting ``(including the provision of technical 
     assistance)'' before the period at the end.
       (b) Maximum Enrollment.--Section 1237(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Maximum enrollment.--
       ``(A) In general.--The total number of acres enrolled in 
     the wetlands reserve program shall not exceed 2,225,000 
     acres, of which, to the maximum extent practicable subject to 
     subparagraph (B), the Secretary shall enroll 250,000 acres in 
     each calendar year.
       ``(B) Wetlands reserve enhancement acreage.--Of the acreage 
     enrolled under subparagraph (A) for a calendar year, not more 
     than 25,000 acres may be enrolled in the wetlands reserve 
     enhancement program described in subsection (h).''.
       (c) Reauthorization.--Section 1237(c) of the Food Security 
     Act of 1985 (16 U.S.C. 3837(c)) is amended by striking 
     ``2002'' and inserting ``2006''.
       (d) Wetlands Reserve Enhancement Program.--Section 1237 of 
     the Food Security Act of 1985 (16 U.S.C. 3837) is amended by 
     adding at the end the following:
       ``(h) Wetlands Reserve Enhancement Program.--
       ``(1) In general.--Notwithstanding the Federal Grant and 
     Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.), 
     the Secretary may enter into cooperative agreements with 
     State or local governments, and with private organizations, 
     to develop, on land that is enrolled, or is eligible to be 
     enrolled, in the wetland reserve established under this 
     subchapter, wetland restoration activities in watershed 
     areas.
       ``(2) Purpose.--The purpose of the agreements shall be to 
     address critical environmental issues.
       ``(3) Relationship to other authorities.--Nothing in this 
     subsection limits the authority of the Secretary to enter 
     into a cooperative agreement with a party under which 
     agreement the Secretary and the party--
       ``(A) share a mutual interest in the program under this 
     subchapter; and
       ``(B) contribute resources to accomplish the purposes of 
     that program.''.
       (e) Monitoring and Maintenance.--Section 1237C(a)(2) of the 
     Food Security Act of 1985 (16 U.S.C. 3837c(a)(2)) is amended 
     by striking ``assistance'' and inserting ``assistance 
     (including monitoring and maintenance)''.

     SEC. 215. WATER CONSERVATION.

       (a) In General.--Section 1231(d) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(d)) (as amended by section 212(c)) is 
     amended by striking ``41,100,000'' and inserting 
     ``40,000,000''.
       (b) Additional Water Conservation Acreage Under 
     Conservation Reserve Enhancement Program.--Section 1231 of 
     the Food Security Act of 1985 (16 U.S.C. 3831) (as amended by 
     section 212(f)) is amended by adding at the end the 
     following:
       ``(j) Additional Water Conservation Acreage Under 
     Conservation Reserve Enhancement Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible entity.--
       ``(i) In general.--The term `eligible entity' means--

       ``(I)(aa) an owner or operator of agricultural land; or
       ``(bb) a person or entity that holds water rights in 
     accordance with or recognized by State law (including a 
     beneficial owner of water rights in accordance with State law 
     through direct contract with the individual or entity having 
     legal title to the water rights); and
       ``(II) any other landowner.

       ``(ii) Inclusions.--The term `eligible entity' includes an 
     irrigation district, water district, or similar governmental 
     entity in the State of California.
       ``(B) Program.--The term `program' means the conservation 
     reserve enhancement program described in a notice issued on 
     May 27, 1998 (63 Fed. Reg. 28965).
       ``(2) Protection of private property rights.--
       ``(A) Willing sellers and lessors.--An agreement may be 
     executed under this subsection only if each eligible entity 
     that is a party to the agreement is a willing seller or 
     willing lessor.
       ``(B) Property rights.--Nothing in this subsection 
     authorizes the Federal Government or any State government to 
     condemn private property.
       ``(3) Enrollment.--In addition to the acreage authorized to 
     be enrolled under subsection (d), in carrying out the 
     program, the Secretary, in consultation with eligible States, 
     shall enroll not more than 500,000 acres in eligible States 
     to promote water conservation.
       ``(4) Eligible states.--To be eligible to participate in 
     the program, a State--
       ``(A) shall submit to the Secretary, for review and 
     approval, a proposal that meets the requirements of the 
     program; and
       ``(B) shall--
       ``(i) have established a program or system to protect in-
     stream flows or uses; and
       ``(ii) agree to hold water rights leased or purchased under 
     a proposal submitted under subparagraph (A).
       ``(5) Eligible acreage.--An eligible entity may enroll in 
     the program land in an eligible State that is adjacent to a 
     watercourse or lake, or land that would contribute to the 
     restoration of a watercourse or lake (as determined by the 
     Secretary), if--
       ``(A)(i) the land can be restored as a wetland, grassland, 
     or other habitat, as determined by the Secretary in 
     accordance with the field office technical guides and 
     handbooks of the Natural Resources Conservation Service; and
       ``(ii) the restoration would significantly improve riparian 
     functions, as determined by the Secretary; or
       ``(B) water or water rights appurtenant to the land are 
     leased or sold to an appropriate State agency or State-
     designated water trust, as determined by the Secretary.
       ``(6) Relationship to other acreage.--For any fiscal year, 
     acreage enrolled under this subsection shall not affect the 
     quantity of--
       ``(A) acreage enrolled to establish conservation buffers as 
     part of the program described in a notice issued on March 24, 
     1998 (63 Fed. Reg. 14109);
       ``(B) acreage enrolled in the program before the date of 
     enactment of this subsection; or
       ``(C) acreage that, as of the date of enactment of this 
     subsection, is committed by the Secretary for enrollment in 
     the program in any State.
       ``(7) Duties of eligible entities.--Under a contract 
     entered into with respect to enrolled land under the program, 
     during the term of the contract, an eligible entity shall 
     agree--
       ``(A)(i) to restore the hydrology of the enrolled land to 
     the maximum extent practicable, as determined by the 
     Secretary; and
       ``(ii) to establish on the enrolled land wetland, 
     grassland, vegetative cover, or other habitat, as determined 
     by the Secretary; or
       ``(B) to transfer to the State, or a designee of the State, 
     water rights appurtenant to the enrolled land.
       ``(8) Rental rates.--
       ``(A) Irrigated land.--With respect to irrigated land 
     enrolled in the program, the rental rate shall be established 
     by the Secretary--
       ``(i) on a watershed basis;
       ``(ii) using data available as of the date on which the 
     rental rate is established; and
       ``(iii) at a level sufficient to ensure, to the maximum 
     extent practicable, that the eligible entity is fairly 
     compensated for the irrigated land value of the enrolled 
     land.
       ``(B) Nonirrigated land.--With respect to nonirrigated land 
     enrolled in the program, the rental rate shall be calculated 
     by the Secretary, in accordance with the conservation reserve 
     program manual of the Department.
       ``(C) Applicability.--An eligible entity that enters into a 
     contract to enroll land into the program shall receive, in 
     exchange for the enrollment, payments that are based on--
       ``(i) the irrigated rental rate described in subparagraph 
     (A), if the owner or operator agrees to enter into an 
     agreement with the State and approved by the Secretary under 
     which the State leases, for in-stream flow purposes or uses, 
     surface water appurtenant to the enrolled land; or
       ``(ii) the nonirrigated rental rate described in 
     subparagraph (B), if an owner or operator does not enter into 
     an agreement described in clause (i).
       ``(9) Priority.--In carrying out this subsection, the 
     Secretary shall give priority consideration to any State 
     proposal that--
       ``(A) provides a State or non-Federal share of 20 percent 
     or more of the cost of the proposal; and
       ``(B) significantly advances the goals of Federal, State, 
     tribal, and local fish, wildlife, and plant conservation 
     plans, including--
       ``(i) plans that address--

       ``(I) multiple endangered species or threatened species (as 
     defined in section 3 of the Endangered Species Act of 1973 
     (16 U.S.C. 1532)); or
       ``(II) species that may become threatened or endangered if 
     conservation measures are not carried out;

       ``(ii) agreements entered into, or conservation plans 
     submitted, under section 6 or 10(a)(2)(A), respectively, of 
     the Endangered Species Act of 1973 (16 U.S.C. 1535, 
     1539(a)(2)(A)); or
       ``(iii) plans that provide benefits to the fish, wildlife, 
     or plants located in 1 or more--

       ``(I) refuges within the National Wildlife Refuge System; 
     or
       ``(II) State wildlife management areas.

       ``(10) Consultation.--In carrying out this subsection, the 
     Secretary shall consult with--
       ``(A) the Secretary of the Interior;
       ``(B) eligible States;
       ``(C) affected Indian tribes; and
       ``(D) any affected irrigation districts established or 
     recognized under State law.
       ``(11) State water law.--Nothing in this subsection--
       ``(A) preempts any State water law;

[[Page S1040]]

       ``(B) affects any litigation concerning the right or 
     entitlement to, or lack of right or entitlement to, water 
     that is pending as of the date of enactment of this 
     subsection;
       ``(C) expands, alters, or otherwise affects the existence 
     or scope of any water right of any individual (except to the 
     extent that the individual agrees otherwise under the 
     program); or
       ``(D) authorizes or entitles the Federal Government to hold 
     or purchase any water right.
       ``(12) Implementation.--In carrying out this subsection, 
     the Secretary shall comply with--
       ``(A) all interstate compacts, court decrees, and Federal 
     and State laws (including regulations) that may affect water 
     or water rights; and
       ``(B) all procedural and substantive State water law.
       ``(13) California water law.--
       ``(A) In general.--Nothing in this subsection authorizes 
     the Secretary to enter into an agreement, in accordance with 
     this subsection, with a landowner for water obtained from an 
     irrigation district, water district, or other similar 
     governmental entity in the State of California.
       ``(B) District programs.--All landowners participating in 
     the program through membership in a district or entity 
     described in subparagraph (A) shall be willing participants 
     in the program.
       ``(14) Groundwater.--A right to groundwater shall not be 
     subject to any provision of this subsection unless the right 
     is granted--
       ``(A) under applicable State law; and
       ``(B) through a groundwater water rights process that is 
     fully integrated with the surface water rights process of the 
     applicable affected State.
       ``(15) Prohibition on federal purchase, lease, and 
     retention of water rights.--No water rights under this 
     subsection shall be purchased, leased, or held by the 
     Secretary or any other officer or agent of the Federal 
     Government.
       ``(16) State flexibility.--With respect to State 
     participation in the program--
       ``(A) nothing in this subsection limits any State 
     application to participate in the program; and
       ``(B) the Secretary shall accord States full flexibility to 
     carry out projects and activities under the program.
       ``(17) Eligible states.--Eligible States under this program 
     shall include only Nevada, California, New Mexico, 
     Washington, Oregon, Maine and New Hampshire.''.
       (c) Water Benefits Program.--Subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended 
     by adding at the end the following:

                    ``CHAPTER 6--WATER CONSERVATION

     ``SEC. 1240R. WATER BENEFITS PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--
       ``(A) In general.--The term `eligible entity' means--
       ``(i)(I) an owner or operator of agricultural land; or
       ``(II) a person or entity that holds water rights in 
     accordance with or recognized by State law (including a 
     beneficial owner of water rights in accordance with State law 
     through direct contract with the individual or entity having 
     legal title to the water rights); and
       ``(ii) any other landowner.
       ``(B) Inclusions.--The term `eligible entity' includes an 
     irrigation district, water district, or similar governmental 
     entity in the State of California.
       ``(2) Program.--The term `program' means the water benefits 
     program established under subsection (b).
       ``(b) Establishment.--The Secretary, in consultation with 
     eligible States, shall establish a program to promote water 
     conservation, to be known as the `water benefits program', 
     under which the Secretary shall, through the Natural 
     Resources Conservation Service, in consultation with eligible 
     States, provide cost-share payments to willing eligible 
     entities for--
       ``(1) in accordance with subsection (f), irrigation 
     efficiency infrastructure or measures that provide in-stream 
     flows for fish and wildlife and other environmental purposes 
     or uses;
       ``(2) converting from production of a water-intensive crop 
     to a crop that requires less water; or
       ``(3)(A) the lease, purchase, dry-year optioning, transfer, 
     or dedication of water or water rights to provide, directly 
     or indirectly through mechanisms consistent with State water 
     law, in-stream flows for fish and wildlife and other 
     environmental purposes or uses (including wetland 
     restoration); or
       ``(B) the conservation, provision, and protection of water 
     to benefit fish and wildlife under a State plan approved by 
     the Secretary for those purposes.
       ``(c) Protection of Private Property Rights.--
       ``(1) Willing sellers and lessors.--An agreement may be 
     executed under this section only if each eligible entity that 
     is a party to the agreement is a willing seller or willing 
     lessor.
       ``(2) Property rights.--Nothing in this section authorizes 
     the Federal Government or any State government to condemn 
     private property.
       ``(d) Eligible States.--An eligible entity may receive a 
     payment under the program if the State in which the eligible 
     entity is located--
       ``(1)(A) submits to the Secretary a State plan under which 
     the State holds and enforces water rights leased, purchased, 
     dry-year optioned, transferred, or dedicated to provide for 
     in-stream flows or other uses that benefit fish and wildlife; 
     or
       ``(B) otherwise establishes a State program to conserve, 
     provide, and protect water to benefit fish and wildlife 
     approved by the Secretary;
       ``(2)(A) submits to the Secretary a State plan to protect 
     in-stream flows or uses; and
       ``(B) obtains approval of the State programs and plans by 
     the Secretary;
       ``(3) designates a State agency to administer the State 
     programs and plans;
       ``(4) subjects each lease, purchase, dry-year optioning, 
     transfer, and dedication of water and water rights to any 
     review and approval required under State law, such as review 
     and approval by a water board, water court, or water engineer 
     of the State; and
       ``(5) ensure that each lease, purchase, dry-year optioning, 
     transfer, and dedication of water and water rights is 
     consistent with State water law.
       ``(e) Role of Secretary.--In carrying out this section, the 
     Secretary shall--
       ``(1) establish guidelines for participating States to pay 
     a portion of the cost of assisting the conversion from 
     production of water-intensive crops to crops that require 
     less water;
       ``(2) establish guidelines, in accordance with the field 
     office and technical guides and handbooks of the Natural 
     Resources Conservation Service, for assisting with the cost 
     of on-farm and off-farm irrigation efficiency infrastructure 
     and measures described in subsection (f)(2);
       ``(3) establish guidelines for participating States for--
       ``(A) the lease, purchase, dry-year optioning, transfer, 
     and dedication of water and water rights under State plans; 
     or
       ``(B) the conservation, provision, and protection of water 
     to benefit fish and wildlife under a program described in 
     subsection (b)(3)(B);
       ``(4) establish a program within the Agricultural Research 
     Service, in collaboration with the United States Geological 
     Survey, to monitor State efforts under the program, including 
     the construction and maintenance of stream gauging stations; 
     and
       ``(5) consult with eligible States, the Secretary of the 
     Interior, affected Indian tribes, and each affected 
     irrigation district established under or recognized by State 
     law that makes water available to a participating eligible 
     entity, particularly with respect to the establishment and 
     implementation of the program.
       ``(f) Irrigation Efficiency Infrastructure and Measures.--
       ``(1) In general.--The Secretary may pay--
       ``(A) not more than 75 percent of the cost of converting 
     from production of a water-intensive crop to a crop that 
     requires less water, as described in subsection (e)(2); and
       ``(B) the share determined under subsection (g) of the cost 
     of on-farm and, in cases in which an irrigation ditch crosses 
     more than 1 farm, off-farm irrigation efficiency 
     infrastructure and measures described in paragraph (2) if not 
     less than 75 percent of the water conserved as a result of 
     the infrastructure and measures is permanently allocated, 
     directly or indirectly, to in-stream flows or uses.
       ``(2) Eligible irrigation efficiency infrastructure and 
     measures.--Eligible irrigation efficiency land-based and 
     fixed infrastructure and measures referred to in paragraph 
     (1) are--
       ``(A) lining of ditches, insulation or installation of 
     piping, and installation of ditch portals or gates;
       ``(B) tail water return systems;
       ``(C) low-energy precision applications;
       ``(D) low-flow irrigation systems, including drip and 
     trickle systems and micro-sprinkler systems;
       ``(E) surge valves;
       ``(F) off-stream storage ponds inundating less than 5 acres 
     that the Secretary, in consultation with the State, the 
     Secretary of the Interior, and the Secretary of Commerce, 
     determines to be appropriate to carry out the program;
       ``(G) conversion from gravity or flood irrigation to low-
     flow sprinkler or drip irrigation systems;
       ``(H) intake screens, fish passages, and conversion of 
     diversions to pumps;
       ``(I) alternate furrow wetting, irrigation scheduling, and 
     similar measures; and
       ``(J) such other land-based irrigation efficiency 
     infrastructure and measures as the Secretary determines to be 
     appropriate to carry out the program.
       ``(g) Cost Sharing.--
       ``(1) In general.--The share of the cost of converting from 
     production of a water-intensive crop to a crop that requires 
     less water, or of an irrigation efficiency infrastructure or 
     measure assisted under subsection (f), that is not provided 
     by this section--
       ``(A) shall be not less than 25 percent; and
       ``(B) shall be paid by--
       ``(i) a State;
       ``(ii) an owner or operator of a farm or ranch (including 
     an Indian tribe); or
       ``(iii) a nonprofit organization;
     except that at least 10 percent of the share shall be paid by 
     the eligible entity.
       ``(2) Increased share.--If an owner or operator of a farm 
     or ranch pays 50 percent or more of the cost of converting 
     from production of a water-intensive crop to a crop that 
     requires less water, or of an irrigation efficiency 
     infrastructure or measure, the owner or operator shall retain 
     the right to use 50 percent of the water conserved by the 
     conversion, infrastructure, or measure.
       ``(3) Leasing of conserved water.--A State shall give an 
     eligible entity with respect to land enrolled in the program 
     the option of leasing, or providing a dry-year option on, 
     conserved water for 30 years.
       ``(4) Water lease and purchase.--The cost of water or water 
     rights that are directly leased, purchased, subject to a dry-
     year option, or dedicated under this section shall not be 
     subject to the cost-sharing requirement of this subsection.
       ``(h) State Plan Approval.--In determining whether to 
     approve a State plan under subsection (d)(3), the Secretary 
     shall consider the extent to which the State plan 
     significantly advances the goals of Federal, State, tribal, 
     and local fish, wildlife, and plant conservation plans, 
     including--

[[Page S1041]]

       ``(1) plans that address--
       ``(A) multiple endangered species or threatened species (as 
     defined in section 3 of the Endangered Species Act of 1973 
     (16 U.S.C. 1532)); or
       ``(B) species that may become threatened or endangered if 
     conservation measures are not carried out;
       ``(2) agreements entered into, or conservation plans 
     submitted, under section 6 or 10(a)(2)(A), respectively, of 
     the Endangered Species Act of 1973 (16 U.S.C. 1535, 
     1539(a)(2)(A)); and
       ``(3) plans that provide benefits to the fish, wildlife, or 
     plants located in 1 or more--
       ``(A) refuges within the National Wildlife Refuge System; 
     or
       ``(B) State wildlife management areas.
       ``(i) State Water Law.--Nothing in this section--
       ``(1) preempts any State water law;
       ``(2) affects any litigation concerning the right or 
     entitlement to, or lack of right or entitlement to, water 
     that is pending as of the date of enactment of this section;
       ``(3) expands, alters, or otherwise affects the existence 
     or scope of any water right of any individual (except to the 
     extent that the individual agrees otherwise under the 
     program); or
       ``(4) authorizes or entitles the Federal Government to hold 
     or purchase any water right.
       ``(j) Implementation.--In carrying out this section, the 
     Secretary shall comply with--
       ``(1) all interstate compacts, court decrees, and Federal 
     and State laws (including regulations) that may affect water 
     or water rights; and
       ``(2) all procedural and substantive State water law.
       ``(k) California Water Law.--
       ``(1) In general.--Nothing in this section authorizes the 
     Secretary to enter into an agreement, in accordance with this 
     section, with a landowner for water obtained from an 
     irrigation district, water district, or other similar 
     governmental entity in the State of California.
       ``(2) District programs.--All landowners participating in 
     the program through membership in a district or entity 
     described in paragraph (1) shall be willing participants in 
     the program.
       ``(l) Groundwater.--A right to groundwater shall not be 
     subject to any provision of this section unless the right is 
     granted--
       ``(1) under applicable State law; and
       ``(2) through a groundwater water rights process that is 
     fully integrated with the surface water rights process of the 
     applicable affected State.
       ``(m) Prohibition on Federal Purchase, Lease, and Retention 
     of Water Rights.--No water rights under this section shall be 
     purchased, leased, or held by the Secretary or any other 
     officer or agent of the Federal Government.
       ``(n) Exemption for Certain States.--This section shall not 
     apply to the States of Nebraska and North Dakota.
       ``(o) Funding.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this section--
       ``(A) $25,000,000 for fiscal year 2002;
       ``(B) $52,000,000 for fiscal year 2003; and
       ``(C) $100,000,000 for each of fiscal years 2004 through 
     2006.
       ``(2) Limitation on expenditures.--For any fiscal year, a 
     State may expend not more than 75 percent of the funds made 
     available to the State under the program to pay--
       ``(A) the cost of converting from production of a water-
     intensive crop to a crop that requires less water; or
       ``(B) the cost of irrigation efficiency infrastructure and 
     measures under subsection (f)(1).
       ``(3) Monitoring program.--For each fiscal year, of the 
     funds made available under paragraph (1), the Secretary shall 
     use not more than $5,000,000 to carry out the monitoring 
     program under subsection (e)(5).
       ``(4) Administration.--
       ``(A) Federal.--For each fiscal year, of the funds made 
     available under paragraph (1), the Secretary shall such sums 
     as are necessary for administration and technical assistance.
       ``(B) State.--For each fiscal year, of the funds made 
     available under paragraph (1), not more than 3 percent shall 
     be made available to States for administration of the 
     program.
       ``(5) Eligible states.--Eligible States under this program 
     shall include only Nevada, California, New Mexico, Oregon, 
     Washington, Maine and New Hampshire.''.
       (d) Conforming Amendment.--Section 1231(b)(6) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(b)(6)) (as amended by 
     section 212(b)(1)) is amended by striking subparagraph (B) 
     and inserting the following:
       ``(B)(i) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) (or a successor program); or
       ``(ii) under subsection (j).''.

     SEC. 216. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

      ``Subtitle H--Resource Conservation and Development Program

     ``SEC. 1528. DEFINITIONS.

       ``In this subtitle:
       ``(1) Area plan.--The term `area plan' means a resource 
     conservation and use plan developed through a planning 
     process by a council for a designated area of 1 or more 
     States, or of land under the jurisdiction of an Indian tribe, 
     that includes 1 or more of the following elements:
       ``(A) A land conservation element, the purpose of which is 
     to control erosion and sedimentation.
       ``(B) A water management element that provides 1 or more 
     clear environmental or conservation benefits, the purpose of 
     which is to provide for--
       ``(i) the conservation, use, and quality of water, 
     including irrigation and rural water supplies;
       ``(ii) the mitigation of floods and high water tables;
       ``(iii) the repair and improvement of reservoirs;
       ``(iv) the improvement of agricultural water management; 
     and
       ``(v) the improvement of water quality.
       ``(C) A community development element, the purpose of which 
     is to improve--
       ``(i) the development of resources-based industries;
       ``(ii) the protection of rural industries from natural 
     resource hazards;
       ``(iii) the development of adequate rural water and waste 
     disposal systems;
       ``(iv) the improvement of recreation facilities;
       ``(v) the improvement in the quality of rural housing;
       ``(vi) the provision of adequate health and education 
     facilities;
       ``(vii) the satisfaction of essential transportation and 
     communication needs; and
       ``(viii) the promotion of food security, economic 
     development, and education.
       ``(D) A land management element, the purpose of which is--
       ``(i) energy conservation, including the production of 
     energy crops;
       ``(ii) the protection of agricultural land, as appropriate, 
     from conversion to other uses;
       ``(iii) farmland protection; and
       ``(iv) the protection of fish and wildlife habitats.
       ``(2) Board.--The term `Board' means the Resource 
     Conservation and Development Policy Advisory Board 
     established under section 1533(a).
       ``(3) Council.--The term `council' means a nonprofit entity 
     (including an affiliate of the entity) operating in a State 
     that is--
       ``(A) established by volunteers or representatives of 
     States, local units of government, Indian tribes, or local 
     nonprofit organizations to carry out an area plan in a 
     designated area; and
       ``(B) designated by the chief executive officer or 
     legislature of the State to receive technical assistance and 
     financial assistance under this subtitle.
       ``(4) Designated area.--The term `designated area' means a 
     geographic area designated by the Secretary to receive 
     technical assistance and financial assistance under this 
     subtitle.
       ``(5) Financial assistance.--The term `financial 
     assistance' means a grant or loan provided by the Secretary 
     (or the Secretary and other Federal agencies) to, or a 
     cooperative agreement entered into by the Secretary (or the 
     Secretary and other Federal agencies) with, a council, or 
     association of councils, to carry out an area plan in a 
     designated area, including assistance provided for planning, 
     analysis, feasibility studies, training, education, and other 
     activities necessary to carry out the area plan.
       ``(6) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term by section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(7) Local unit of government.--The term `local unit of 
     government' means--
       ``(A) any county, city, town, township, parish, village, or 
     other general-purpose subdivision of a State; and
       ``(B) any local or regional special district or other 
     limited political subdivision of a State, including any soil 
     conservation district, school district, park authority, and 
     water or sanitary district.
       ``(8) Nonprofit organization.--The term `nonprofit 
     organization' means any organization that is--
       ``(A) described in section 501(c) of the Internal Revenue 
     Code of 1986; and
       ``(B) exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986.
       ``(9) Planning process.--The term `planning process' means 
     actions taken by a council to develop and carry out an 
     effective area plan in a designated area, including 
     development of the area plan, goals, purposes, policies, 
     implementation activities, evaluations and reviews, and the 
     opportunity for public participation in the actions.
       ``(10) Project.--The term `project' means a project that is 
     carried out by a council to achieve any of the elements of an 
     area plan.
       ``(11) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(12) State.--The term `State' means--
       ``(A) any State;
       ``(B) the District of Columbia; or
       ``(C) any territory or possession of the United States.
       ``(13) Technical assistance.--The term `technical 
     assistance' means any service provided by the Secretary or 
     agent of the Secretary, including--
       ``(A) inventorying, evaluating, planning, designing, 
     supervising, laying out, and inspecting projects;
       ``(B) providing maps, reports, and other documents 
     associated with the services provided;
       ``(C) providing assistance for the long-term implementation 
     of area plans; and
       ``(D) providing services of an agency of the Department of 
     Agriculture to assist councils in developing and carrying out 
     area plans.

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

       ``The Secretary shall establish a resource conservation and 
     development program under which the Secretary shall provide 
     technical assistance and financial assistance to councils to 
     develop and carry out area plans and projects in designated 
     areas--
       ``(1) to conserve and improve the use of land, develop 
     natural resources, and improve and enhance the social, 
     economic, and environmental conditions in primarily rural 
     areas of the United States; and

[[Page S1042]]

       ``(2) to encourage and improve the capability of State, 
     units of government, Indian tribes, nonprofit organizations, 
     and councils to carry out the purposes described in paragraph 
     (1).

     ``SEC. 1530. SELECTION OF DESIGNATED AREAS.

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

     ``SEC. 1531. POWERS OF THE SECRETARY.

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

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

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

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

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

     ``SEC. 1534. EVALUATION OF PROGRAM.

       ``(a) In General.--The Secretary, in consultation with 
     councils, shall evaluate the program established under this 
     subtitle to determine whether the program is effectively 
     meeting the needs of, and the purposes identified by, States, 
     units of government, Indian tribes, nonprofit organizations, 
     and councils participating in, or served by, the program.
       ``(b) Report.--Not later than June 30, 2005, the Secretary 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report describing the results of 
     the evaluation, together with any recommendations of the 
     Secretary for continuing, terminating, or modifying the 
     program.

     ``SEC. 1535. LIMITATION ON ASSISTANCE.

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

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

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

     ``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 217. WILDLIFE HABITAT INCENTIVE PROGRAM.

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

                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

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

       ``(a) Definitions.--In this section:
       ``(1) Endangered species.--The term `endangered species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(2) Program.--The term `program' means the wildlife 
     habitat incentive program established under subsection (b).
       ``(3) Sensitive species.--The term `sensitive species' has 
     the meaning given the term `candidate species' within the 
     meaning of section 424.02(b) of title 50, Code of Federal 
     Regulations (or a successor regulation) or a species which 
     may become threatened or endangered if conservation actions 
     are not taken to conserve that species.
       ``(4) Threatened species.--The term `threatened species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(b) Establishment.--In consultation with the State 
     technical committees established under section 1261 of the 
     Food Security Act of 1985 (16 U.S.C. 3861), the Secretary 
     shall establish the wildlife habitat incentive program.
       ``(c) Cost-Share Payments.--
       ``(1) In general.--Under the program, the Secretary shall 
     make cost-share payments, and provide technical assistance, 
     to landowners of eligible land to develop and enhance 
     wildlife habitat (including aquatic habitat) approved by the 
     Secretary.
       ``(2) Endangered and threatened species.--Of the funds made 
     available to carry out this subsection, the Secretary shall 
     use at least 15 percent to make cost-share payments to carry 
     out projects and activities relating to endangered species, 
     threatened species, and sensitive species.
       ``(d) Pilot Program for Essential Plant and Animal 
     Habitat.--Under the program, the Secretary may establish 
     procedures to use not more than 15 percent of funds made 
     available to acquire and enroll eligible land for periods of 
     at least 15 years to protect and restore essential (as 
     determined by the Secretary) plant and animal habitat.
       ``(e) Eligible Parties.--After consulting, to the maximum 
     extent practicable, with State wildlife officials, the 
     Secretary may provide grants under this section to 
     individuals and nonprofit organizations that lease public 
     land.
       ``(f) Nexus to Private Land.--Funds from a grant provided 
     under subsection (e) may be used, as determined by the 
     Secretary, for a purpose on public land if the purpose 
     benefits private land.
       ``(g) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section (including the provision of technical assistance), to 
     remain available until expended--
       ``(1) $50,000,000 for fiscal year 2002;
       ``(2) $225,000,000 for fiscal year 2003;
       ``(3) $275,000,000 for fiscal year 2004;
       ``(4) $325,000,000 for fiscal years 2005;
       ``(5) $355,000,000 for fiscal year 2006; and
       ``(6) $50,000,000 for fiscal year 2007.''.

     ``SEC. 1240N. WATERSHED RISK REDUCTION.

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

     ``SEC. 1240O. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 
                   SEDIMENT CONTROL.

       ``(a) In General.--The Secretary, in consultation with the 
     Great Lakes Commission created by Article IV of the Great 
     Lakes Basin Compact (82 Stat. 415) and in cooperation with 
     the Administrator of the Environmental Protection

[[Page S1043]]

     Agency and the Secretary of the Army, may carry out the Great 
     Lakes basin program for soil erosion and sediment control 
     (referred to in this section as the `program').
       ``(b) Assistance.--In carrying out the program, the 
     Secretary may--
       ``(1) provide project demonstration grants, provide 
     technical assistance, and carry out information and education 
     programs to improve water quality in the Great Lakes basin by 
     reducing soil erosion and improving sediment control; and
       ``(2) provide a priority for projects and activities that 
     directly reduce soil erosion or improve sediment control.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 1240P. CONSERVATION OF PRIVATE GRAZING LAND.

       ``(a) Findings.--Congress finds that--
       ``(1) private 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) private 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) landowners 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 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 limited and 
     does not meet the demand and basic need for adequately 
     sustaining or enhancing the private grazing land resources; 
     and
       ``(10) private grazing land can be enhanced to provide many 
     benefits to all citizens of the United States through 
     voluntary cooperation among owners and managers of the land, 
     local conservation districts, and the agencies of the 
     Department responsible for providing assistance to owners and 
     managers of land and to conservation districts.
       ``(b) Purpose.--The purpose of this section is to authorize 
     the Secretary 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, tribal, 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) Definition of Private Grazing Land.--In this section, 
     the term `private grazing land land' means rangeland, 
     pastureland, grazed forest land, hay land, and any other non-
     federally owned land that is--
       ``(1) private;
       ``(2) owned by a State; or
       ``(3) under the jurisdiction of an Indian tribe. ``(d) 
     Private Grazing Land Conservation Assistance.--
       ``(1) In general.--Subject to the availability of 
     appropriations for this section, 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 land; and
       ``(H) identifying the opportunities and encouraging the 
     diversification of private grazing land enterprises.
       ``(2) Program elements.--
       ``(A) Funding.--Funds may be used to carry out this section 
     only if the funds are provided 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.
       ``(e) Grazing Technical Assistance Self-Help.--
       ``(1) Findings.--Congress finds that--
       ``(A) there is a severe lack of technical assistance for 
     farmers and ranchers that graze livestock;
       ``(B) Federal budgetary constraints preclude any 
     significant expansion, and may force a reduction of, 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 districts.--In 
     accordance with paragraph (3), the Secretary may establish 2 
     grazing management demonstration districts on the 
     recommendation of the grazing land conservation initiative 
     steering committee.
       ``(3) Procedure.--
       ``(A) Proposal.--Within a reasonable time after the 
     submission of a proposal of an organization of farmers or 
     ranchers engaged in grazing in a district, subject to 
     subparagraphs (B) through (F), the Secretary establish a 
     grazing management district in accordance with the proposal.
       ``(B) Funding.--The terms and conditions of the funding and 
     operation of the grazing management district shall be 
     proposed by the farmers and ranchers engaged in grazing in 
     the district.
       ``(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 beef promotion and research order issued 
     under section 4 of the Beef Research and Information Act (7 
     U.S.C. 2903) in effect on April 4, 1996.
       ``(D) Area included.--The area proposed to be included in a 
     grazing management district shall be determined by the 
     Secretary on the basis of the proposal submitted by farmers 
     or ranchers under subparagraph (A).
       ``(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 farmers, ranchers, and 
     technical experts.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $60,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 1240Q. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       ``(a) In General.--The Secretary shall establish a national 
     grassroots water protection program to more effectively use 
     onsite technical assistance capabilities of each State rural 
     water association that, as of the date of enactment of this 
     section, operates a wellhead or groundwater protection 
     program in the State.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.''.
       (b) Conforming Amendment.--Section 386 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 
     2005b) is repealed.

     SEC. 218. FARMLAND PROTECTION PROGRAM.

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

              ``Subchapter B--Farmland Protection Program

     ``SEC. 1238H. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) any agency of any State or local government or an 
     Indian tribe (including a farmland protection board or land 
     resource council established under State law); or
       ``(B) any organization that--
       ``(i) is organized for, and at all times since the 
     formation of the organization has been operated principally 
     for, 1 or more of the conservation purposes specified in 
     clause (i), (ii), or (iii) of section 170(h)(4)(A) of the 
     Internal Revenue Code of 1986;
       ``(ii) is an organization described in section 501(c)(3) of 
     that Code that is exempt from taxation under section 501(a) 
     of that Code;

[[Page S1044]]

       ``(iii) is described in section 509(a)(2) of that Code; or
       ``(iv) is described in section 509(a)(3), and is controlled 
     by an organization described in section 509(a)(2), of that 
     Code.
       ``(2) Eligible land.--
       ``(A) In general.--The term `eligible land' means land on a 
     farm or ranch that--
       ``(i)(I) has prime, unique, or other productive soil; or
       ``(II) contains historical or archaeological resources; and
       ``(ii) is subject to a pending offer for purchase from an 
     eligible entity.
       ``(B) Inclusions.--The term `eligible land' includes, on a 
     farm or ranch--
       ``(i) cropland;
       ``(ii) rangeland;
       ``(iii) grassland;
       ``(iv) pasture land; and
       ``(v) forest land that is part of an agricultural 
     operation, as determined by the Secretary.
       ``(3) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(4) Program.--The term `program' means the farmland 
     protection program established under section 1238I(a).

     ``SEC. 1238I. FARMLAND PROTECTION.

       ``(a) In General.--The Secretary, acting through the 
     Natural Resources Conservation Service, shall establish and 
     carry out a farmland protection program under which the 
     Secretary shall purchase conservation easements or other 
     interests in eligible land that is subject to a pending offer 
     from an eligible entity for the purpose of protecting topsoil 
     by limiting nonagricultural uses of the land.
       ``(b) Conservation Plan.--Any highly erodible cropland for 
     which a conservation easement or other interest is purchased 
     under this subchapter shall be subject to the requirements of 
     a conservation plan that requires, at the option of the 
     Secretary, the conversion of the cropland to less intensive 
     uses.

     ``SEC. 1238J. MARKET VIABILITY PROGRAM.

       ``For each year for which funds are made available to carry 
     out this subchapter, the Secretary may use not more than 
     $10,000,000 to provide matching market viability grants and 
     technical assistance to farm and ranch operators that 
     participate in the program.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) (as amended by section 202) is amended by 
     adding at the end the following:
       ``(d) Farmland Protection Program.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out subchapter 
     B of chapter 2 (including the provision of technical 
     assistance), to remain available until expended--
       ``(A) $150,000,000 in fiscal year 2002;
       ``(B) $250,000,000 in fiscal year 2003;
       ``(C) $400,000,000 in fiscal year 2004;
       ``(D) $450,000,000 in fiscal year 2005;
       ``(E) $500,000,000 in fiscal year 2006; and
       ``(F) $100,000,000 in fiscal year 2007.
       ``(2) Cost sharing.--
       ``(A) Farmland protection.--
       ``(i) Share provided under this subsection.--The share of 
     the cost of purchasing a conservation easement or other 
     interest in eligible land described in section 1238I(a) 
     provided under this subsection shall not exceed 50 percent of 
     the appraised fair market value of the conservation easement 
     or other interest in eligible land.
       ``(ii) Share not provided under this subsection.--As part 
     of the share of the cost of purchasing a conservation 
     easement or other interest in eligible land described in 
     section 1238I(a) that is not provided under this subsection, 
     an eligible entity may include a charitable donation by the 
     private landowner from which the eligible land is to be 
     purchased of not more than 25 percent of the fair market 
     value of the conservation easement or other interest in 
     eligible land.
       ``(iii) Bidding down.--If the Secretary determines that 2 
     or more applications for the purchase of a conservation 
     easement or other interest in eligible land described in 
     section 1238I(a) are comparable in achieving the purposes of 
     section 1238I, the Secretary shall not assign a higher 
     priority to any 1 of those applications solely on the basis 
     of lesser cost to the farmland protection program established 
     under section 1238I(a).
       ``(B) Market viability contributions.--As a condition of 
     receiving a grant under section 1238J, a grantee shall 
     provide funds in an amount equal to the amount of the 
     grant.''.
       (c) Conforming Amendment.--
       (1) In general.--Section 388 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is 
     repealed.
       (2) Effect on contracts.--The amendment made by paragraph 
     (1) shall have no effect on any contract entered into under 
     section 388 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (16 U.S.C. 3830 note) that is in effect as of the 
     date of enactment of this Act.

     SEC. 219. GRASSLAND RESERVE PROGRAM.

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

               ``Subchapter C--Grassland Reserve Program

     ``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

       ``(a) Establishment.--The Secretary, acting through the 
     Natural Resource Conservation Service, shall establish a 
     grassland reserve program (referred to in this subchapter as 
     the `program') to assist owners in restoring and protecting 
     eligible land described in subsection (c).
       ``(b) Enrollment Conditions.--
       ``(1) In general.--The Secretary shall enroll in the 
     program, from willing owners, not less than--
       ``(A) 100 contiguous acres of land west of the 98th 
     meridian; or
       ``(B) except as provided in paragraph (2), 40 contiguous 
     acres of land east of the 98th meridian.
       ``(2) Maximum enrollment.--The total number of acres 
     enrolled in the program shall not exceed 2,000,000 acres, of 
     which not more than 500,000 acres shall be available for 
     enrollment of tracts of native grassland of 40 acres or less 
     that are located east of the 98th meridian.
       ``(3) Methods of enrollment.--The Secretary shall enroll 
     land in the program through--
       ``(A) permanent easements or 30-year easements;
       ``(B) in a State that imposes a maximum duration for such 
     an easement, an easement for the maximum duration allowed 
     under State law; or
       ``(C) a 30-year rental agreement.
       ``(c) Eligible Land.--Land shall be eligible to be enrolled 
     in the program if the Secretary determines that the land is 
     private land that is--
       ``(1) natural grassland (including prairie and land that 
     contains shrubs or forb) that is indigenous to the locality;
       ``(2) land that--
       ``(A) is located in an area that has been historically 
     dominated by natural grassland; and
       ``(B) has potential to serve as habitat for animal or plant 
     populations of significant ecological value if the land is 
     restored to a natural condition; or
       ``(3) land that is incidental to land described in 
     paragraph (1) or (2), if the incidental land is determined by 
     the Secretary to be necessary for the efficient 
     administration of an easement.

     ``SEC. 1238O. EASEMENTS AND AGREEMENTS.

       ``(a) In General.--To be eligible to enroll land in the 
     program, the owner of the land shall enter into an agreement 
     with the Secretary--
       ``(1) if the agreement is for an easement--
       ``(A) to grant an easement that applies to the land to the 
     Secretary;
       ``(B) to create and record an appropriate deed restriction 
     in accordance with applicable State law to reflect the 
     easement;
       ``(C) to provide a written statement of consent to the 
     easement signed by persons holding a security interest or any 
     vested interest in the land;
       ``(D) to provide proof of unencumbered title to the 
     underlying fee interest in the land that is the subject of 
     the easement; and
       ``(E) to comply with the terms of the easement and 
     restoration agreement; and
       ``(2) if the agreement is for a rental agreement described 
     in section 1238N(b)(3)(C), that specifies the terms and 
     conditions applicable to--
       ``(A) the Secretary; and
       ``(B) the owner of the land.
       ``(b) Terms of Easement of Rental Agreement.--An easement 
     or rental agreement under subsection (a) shall--
       ``(1) permit--
       ``(A) grazing on the land in a manner that is consistent 
     with maintaining the viability of natural grass, shrub, forb, 
     and wildlife species indigenous to that locality;
       ``(B) haying (including haying for seed production) or 
     mowing, except during the nesting and brood-rearing seasons 
     for birds in the area that are in significant decline, as 
     determined by the Natural Resources Conservation Service 
     State conservationist, or are protected Federal or State law; 
     and
       ``(C) fire rehabilitation, construction of fire breaks, and 
     fences (including placement of the posts necessary for 
     fences);
       ``(2) prohibit--
       ``(A) the production of row crops, fruit trees, vineyards, 
     or any other agricultural commodity that requires breaking 
     the soil surface; and
       ``(B) except as permitted under paragraph (1)(C), the 
     conduct of any other activities that would disturb the 
     surface of the land covered by the easement, including--
       ``(i) plowing; and
       ``(ii) disking; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out this subchapter or to 
     facilitate the administration of this subchapter.
       ``(c) Evaluation and Ranking of Easement and Rental 
     Agreement Applications.--
       ``(1) In general.--The Secretary, in conjunction with State 
     technical committees, shall establish criteria to evaluate 
     and rank applications for easements and rental agreements 
     under this subchapter.
       ``(2) Criteria.--In establishing the criteria, the 
     Secretary shall emphasize support for grazing operations, 
     plant and animal biodiversity, and grassland and land 
     containing shrubs or forb under the greatest threat of 
     conversion.
       ``(d) Restoration Agreements.--
       ``(1) In general.--The Secretary shall prescribe the terms 
     of a restoration agreement by which grassland and shrubland 
     subject to an easement or rental agreement entered into under 
     the program shall be restored.
       ``(2) Requirements.--The restoration agreement shall 
     describe the respective duties of the owner and the Secretary 
     (including paying the share of the cost of restoration 
     provided by the Secretary and the provision of technical 
     assistance).
       ``(e) Violations.--
       ``(1) In general.--On the violation of the terms or 
     conditions of an easement, rental agreement, or restoration 
     agreement entered into under this section--
       ``(A) the easement or rental agreement shall remain in 
     force; and
       ``(B) the Secretary may require the owner to refund all or 
     part of any payments received by the owner under this 
     subchapter, with interest on the payments as determined 
     appropriate by the Secretary.
       ``(2) Periodic inspections.--
       ``(A) In general.--After providing notice to the owner, the 
     Secretary shall conduct periodic

[[Page S1045]]

     inspections of land subject to easements and rental 
     agreements under this subchapter to ensure compliance with 
     the terms of the easement, rental agreement, and applicable 
     restoration agreement.
       ``(B) Limitation.--The Secretary may not prohibit the 
     owner, or a representative of the owner, from being present 
     during a periodic inspection.

     ``SEC. 1238P. DUTIES OF SECRETARY.

       ``(a) In General.--In return for the granting of an 
     easement, or the execution of a rental agreement, by an owner 
     under this subchapter, the Secretary shall, in accordance 
     with this section--
       ``(1) make easement or rental agreement payments;
       ``(2) pay a share of the cost of restoration; and
       ``(3) provide technical assistance to the owner.
       ``(b) Payment Schedule.--
       ``(1) Easement payments.--
       ``(A) Amount.--In return for the granting of an easement by 
     an owner under this subchapter, the Secretary shall make 
     easement payments to the owner in an amount equal to--
       ``(i) in the case of a permanent easement, the fair market 
     value of the land less the grazing value of the land 
     encumbered by the easement; and
       ``(ii) in the case of a 30-year easement or an easement for 
     the maximum duration allowed under applicable State law, 30 
     percent of the fair market value of the land less the grazing 
     value of the land for the period during which the land is 
     encumbered by the easement.
       ``(B) Schedule.--Easement payments may be provided in not 
     less than 1 payment nor more than 10 annual payments of equal 
     or unequal amount, as agreed to by the Secretary and the 
     owner.
       ``(2) Rental agreement payments.--
       ``(A) Amount.--If an owner enters into a 30-year rental 
     agreement authorized under section 1238N(b)(3)(C), the 
     Secretary shall make 30 annual rental payments to the owner 
     in an amount that equals, to the maximum extent practicable, 
     the 30-year easement payment amount under paragraph 
     (1)(A)(ii).
       ``(B) Assessment.--Not less than once every 5 years 
     throughout the 30-year rental period, the Secretary shall 
     assess whether the value of the rental payments under 
     subparagraph (A) equals, to the maximum extent practicable, 
     the total amount of 30-year easement payments as of the date 
     of the assessment.
       ``(C) Adjustment.--If on completion of the assessment under 
     subparagraph (B), the Secretary determines that the rental 
     payments do not equal, to the maximum extent practicable, the 
     value of payments under a 30-year easement, the Secretary 
     shall adjust the amount of the remaining payments to equal, 
     to the maximum extent practicable, the value of a 30-year 
     easement over the entire 30-year rental period.
       ``(c) Cost of Restoration.--The Secretary shall make 
     payments to the owner of not more than 75 percent of the cost 
     of carrying out measures and practices necessary to restore 
     grassland and shrubland functions and values.
       ``(d) Technical Assistance.--The Secretary shall provide 
     owners with technical assistance to execute easement 
     documents and restore the grassland and shrubland.
       ``(e) Payments to Others.--If an owner that is entitled to 
     a payment under this subchapter dies, becomes incompetent, is 
     otherwise unable to receive the payment, or is succeeded by 
     another person who renders or completes the required 
     performance, the Secretary shall make the payment, in 
     accordance with regulations promulgated by the Secretary and 
     without regard to any other provision of law, in such manner 
     as the Secretary determines is fair and reasonable in light 
     of all the circumstances.
       ``(f) Other Payments.--Easement or rental agreement 
     payments received by an owner under this subchapter shall be 
     in addition to, and not affect, the total amount of payments 
     that the owner is otherwise eligible to receive under other 
     Federal laws (except for funds provided to achieve similar 
     purposes).
       ``(g) Regulations.--Not later than 180 days after the date 
     of enactment of this subchapter, the Secretary shall 
     promulgate such regulations as are necessary to carry out 
     this subchapter.

     ``SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.

       ``(a) In General.--The Secretary may permit a private 
     conservation or land trust organization (referred to in this 
     section as a `private organization') or a State agency to 
     hold and enforce an easement under this subchapter, in lieu 
     of the Secretary, subject to the right of the Secretary to 
     conduct periodic inspections and enforce the easement, if--
       ``(1) the Secretary determines that granting the permission 
     will promote grassland and shrubland protection;
       ``(2) the owner authorizes the private organization or 
     State agency to hold and enforce the easement; and
       ``(3) the private organization or State agency agrees to 
     assume the costs incurred in administering and enforcing the 
     easement, including the costs of restoration or 
     rehabilitation of the land as specified by the owner and the 
     private organization or State agency.
       ``(b) Application.--A private organization or State agency 
     that seeks to hold and enforce an easement under this 
     subchapter shall apply to the Secretary for approval.
       ``(c) Approval by Secretary.--The Secretary may approve a 
     private organization to hold and enforce an easement under 
     this subchapter if (as determined by the Secretary) the 
     private organization--
       ``(1)(A) is an organization described in section 501(c)(3) 
     of the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of that Code; or
       ``(B) is described in section 509(a)(3), and is controlled 
     by an organization described in section 509(a)(2), of that 
     Code;
       ``(2) has the relevant experience necessary to administer 
     grassland and shrubland easements;
       ``(3) has a charter that describes the commitment of the 
     private organization to conserving ranchland, agricultural 
     land, or grassland for grazing and conservation purposes; and
       ``(4) has the resources necessary to effectuate the 
     purposes of the charter.
       ``(d) Reassignment.--
       ``(1) In general.--If a private organization holding an 
     easement on land under this subchapter terminates, not later 
     than 30 days after termination of the private organization, 
     the owner of the land shall reassign the easement to--
       ``(A) a new private organization that is approved by the 
     Secretary; or
       ``(B) the Secretary.
       ``(2) Notification of secretary.--
       ``(A) In general.--If the easement is reassigned to a new 
     private organization, not later than 60 days after the date 
     of reassignment, the owner and the new organization shall 
     notify the Secretary in writing that a reassignment for 
     termination has been made.
       ``(B) Failure to notify.--If the owner and the new 
     organization fail to notify the Secretary of the reassignment 
     in accordance with subparagraph (A), the easement shall 
     revert to the control of the Secretary.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) (as amended by section 218(b)) is amended by 
     adding at the end the following:
       ``(e) Grassland Reserve Program.--The Secretary shall use 
     such sums of the Commodity Credit Corporation as are 
     necessary to carry out subchapter C of chapter 2 (including 
     the provision of technical assistance).''.

     SEC. 220. STATE TECHNICAL COMMITTEES.

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

                ``Subtitle G--State Technical Committees

     ``SEC. 1261. ESTABLISHMENT.

       ``(a) In General.--The Secretary shall establish in each 
     State a technical committee to assist the Secretary in the 
     technical considerations relating to implementation of any 
     private land conservation program administered by the 
     Secretary.
       ``(b) Standards.--Not later than 180 days after the date of 
     enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2002, the Secretary shall develop 
     standards to be used by each State technical committee in the 
     development of technical guidelines under section 1262(b) for 
     the implementation of the conservation programs under this 
     title.
       ``(c) Composition.--Each State technical committee 
     established under subsection (a) shall be composed of 
     professional resource managers that represent a variety of 
     disciplines in the soil, water, wetland, forest, and wildlife 
     sciences, including representatives from among--
       ``(1) the Natural Resources Conservation Service (a 
     representative of which shall serve as Chair of the 
     Committee);
       ``(2) the Farm Service Agency;
       ``(3) the Forest Service;
       ``(4) the Extension Service;
       ``(5) the Fish and Wildlife Service;
       ``(6) such State departments and agencies as the Secretary 
     determines to be appropriate, including--
       ``(A) a State fish and wildlife agency;
       ``(B) a State forester or equivalent State official;
       ``(C) a State water resources agency;
       ``(D) a State department of agriculture;
       ``(E) a State soil conservation agency;
       ``(F) a State association of soil and water conservation 
     districts; and
       ``(G) land grant colleges and universities;
       ``(7) other individuals or agency personnel with expertise 
     in soil, water, wetland, and wildlife or forest management as 
     the Secretary determines to be appropriate;
       ``(8) agricultural producers with demonstrable conservation 
     expertise;
       ``(9) nonprofit organizations with demonstrable 
     conservation or forestry expertise;
       ``(10) persons knowledgeable about conservation or forestry 
     techniques; and
       ``(11) agribusinesses.

     ``SEC. 1262. RESPONSIBILITIES.

       ``(a) Information.--
       ``(1) Provision.--
       ``(A) In general.--Each State technical committee 
     established under section 1261 shall meet regularly to 
     provide information, analyses, and recommendations to the 
     Secretary.
       ``(B) Manner; form.--Information, analyses, and 
     recommendations described in subparagraph (A) shall--
       ``(i) be provided in writing, in a manner that assists the 
     Secretary in determining matters of fact, technical merit, or 
     scientific question; and
       ``(ii) reflect the best professional information and 
     judgment of the committee.
       ``(2) Coordination.--The Secretary shall coordinate 
     activities conducted under this section with activities 
     conducted under section 1628 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5831).
       ``(3) Public participation.--Each State technical committee 
     shall--
       ``(A) provide public notice of, and permit public 
     attendance at, meetings considering issues of concern related 
     to any program under this title; and
       ``(B) distribute meeting minutes to each person attending a 
     meeting described in subparagraph (A).
       ``(4) Communication.--Each State conservationist shall 
     communicate regularly with members of the State technical 
     committee concerning status of action on recommendations of 
     the committee.
       ``(b) Other Duties.--Each State technical committee shall 
     provide assistance and offer recommendations with respect to 
     the technical aspects of--

[[Page S1046]]

       ``(1) wetland protection, restoration, and mitigation 
     requirements;
       ``(2) criteria to be used in evaluating bids for enrollment 
     of environmentally-sensitive land in the conservation reserve 
     program established under subchapter B of chapter 1;
       ``(3) guidelines for haying or grazing and the control of 
     weeds to protect nesting wildlife on designated acreage 
     relating to--
       ``(A) highly erodible land conservation under subtitle B;
       ``(B) wetland conservation under subtitle C; or
       ``(C) other conservation requirements
       ``(4) addressing common weed and pest problems and programs 
     to control weeds and pests found on acreage enrolled in the 
     conservation reserve program;
       ``(5) guidelines for planting perennial cover for water 
     quality and wildlife habitat improvement on designated land;
       ``(6) establishing criteria and priorities for State 
     initiatives under the environmental quality incentives 
     program under chapter 4 of subtitle D;
       ``(7) establishing State and local conservation priorities 
     under the conservation security program under subchapter A of 
     chapter 2 of subtitle D;
       ``(8) establishing and maintaining natural resource 
     indicators and conservation program monitoring and evaluation 
     systems;
       ``(9) developing conservation program education and 
     outreach activities;
       ``(10) evaluating innovative practices and systems under 
     consideration for inclusion in the field office technical 
     guides; and
       ``(11) other matters, as determined to be appropriate by 
     the Secretary.
       ``(c) Authority.--
       ``(1) In general.--Each State technical committee 
     established under section 1261 shall--
       ``(A) serve in an advisory capacity; and
       ``(B) have no implementation or enforcement authority.
       ``(2) Consideration by secretary.--In carrying out any 
     program under this title, the Secretary shall give strong 
     consideration to the recommendations of a State technical 
     committee (including factual, technical, or scientific 
     findings and recommendations relating to areas in which the 
     State technical committee bears responsibility).
       ``(d) FACA Requirements.--A State technical committee 
     established under section 1261 shall be exempt from the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       ``(e) Advisory Subcommittees.--
       ``(1) In general.--Any State or local work group, task 
     force, or other advisory body authorized by any Federal law 
     (including a regulation) to advise the Secretary on issues 
     that are within the areas of responsibility of a State 
     technical committee established under section 1261 shall be 
     considered to be a subcommittee of the State technical 
     committee.
       ``(2) Composition.--A person eligible to serve on a State 
     technical committee under section 1261(c) shall also be 
     eligible to serve on 1 or more subcommittees of a State 
     technical committee.
       ``(3) Local working groups.--A local working group shall be 
     considered to be a subcommittee of a State technical 
     committee established under section 1261.''.

     SEC. 221. USE OF SYMBOLS, SLOGANS, AND LOGOS.

       Section 356 of the Federal Agriculture Improvement Act of 
     1996 (16 U.S.C. 5801 et seq.) is amended--
       (1) in subsection (c)--
       (A) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (B) by inserting after paragraph (3) the following:
       ``(4) on the written approval of the Secretary, to use, 
     license, or transfer symbols, slogans, and logos of the 
     Department;''; and
       (2) in subsection (d), by adding at the end the following:
       ``(3) Use of symbols, slogans, and logos.--
       ``(A) In general.--The Secretary may authorize the 
     Foundation to use, license, or transfer symbols, slogans, and 
     logos of the Department.
       ``(B) Income.--
       ``(i) In general.--All revenue received by the Foundation 
     from the use, licensing, or transfer of symbols, slogans, and 
     logos of the Department shall be transferred to the 
     Secretary.
       ``(ii) Conservation operations.--The Secretary shall 
     transfer all revenue received under clause (i) to the account 
     within the Natural Resources Conservation Service that is 
     used to carry out conservation operations.''.

                      Subtitle C--Organic Farming

     SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Organic 
     Agriculture Research Trust Fund'' (referred to in this 
     section as the ``Fund''), consisting of--
       (1) such amounts as are transferred to the Fund under 
     subsection (b); and
       (2) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       (b) Transfer to Fund.--During fiscal year 2003, the 
     Commodity Credit Corporation shall transfer $45,000,000 to 
     the Fund, which shall remain available until expended.
       (c) Expenditures From Fund.--On request by the Secretary of 
     Agriculture, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary of Agriculture such amounts as 
     the Secretary of Agriculture determines are necessary--
       (1) to carry out section 1672B of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5925b); and
       (2) for the board of trustees of the National Organic 
     Research Endowment Institute established under section 232(a) 
     (referred to in this subtitle as the ``Institute'') to 
     implement a program of organic products research designed by 
     the Institute and approved by the Secretary.
       (d) Investment of Amounts.--
       (1) In general.--
       (A) Investment.--The Secretary of the Treasury shall invest 
     such portion of the Fund as is not, in the judgment of the 
     Secretary of the Treasury, required to meet current 
     withdrawals.
       (B) Types of investments.--Investments may be made only 
     in--
       (i) an obligation of the United States or an agency of the 
     United States;
       (ii) a general obligation of a State or a political 
     subdivision of a State;
       (iii) an interest-bearing account or certificate of deposit 
     of a bank that is a member of the Federal Reserve System; or
       (iv) an obligation fully guaranteed as to principal and 
     interest by the United States.
       (2) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       (A) on original issue at the issue price; or
       (B) by purchase of outstanding obligations at the market 
     price.
       (3) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (4) Credits to fund.--The interest and dividends on, and 
     the proceeds from the sale or redemption of, any obligations, 
     interest-bearing accounts, or certificates of deposit held in 
     the Fund shall be credited to and form a part of the Fund.

     SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RESEARCH 
                   ENDOWMENT INSTITUTE.

       (a) In General.--The Secretary of Agriculture, in 
     consultation with the National Organic Standards Board, shall 
     establish in the Department of Agriculture an institute to be 
     known as the ``National Organic Research Endowment 
     Institute'' (referred to in this section as the 
     ``Institute'').
       (b) Board of Trustees.--
       (1) In general.--The Institute shall be headed by a board 
     of trustees composed of producers and handlers of organically 
     grown and processed agricultural commodities appointed by the 
     Secretary.
       (2) Geographic representation.--The membership of the Board 
     of Trustees shall reflect equally each of the various regions 
     in the United States in which organically grown and processed 
     agricultural commodities are produced.
       (c) Duties.--The duties of the Institute shall be to aid 
     the organically grown and processed agricultural commodities 
     industry through the development and implementation of a plan 
     for organic products research described in subsection (d)(1).
       (d) Implementation of Plan.--
       (1) In general.--The board of trustees of the Institute 
     shall implement a plan for organic products research, to be 
     carried out using funds made available to the board of 
     trustees of the Institute from the Organic Agriculture 
     Research Trust Fund established by section 231.
       (2) Expansion of markets.--In implementing the plan 
     described in paragraph (1), the board of trustees of the 
     Institute shall provide a permanent system for funding 
     research activities (as defined in section 1672B of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5925b).
       (e) Compensation of Members.--A member of the board of 
     trustees of the Institute shall serve without compensation.
       (f) Travel Expenses.--To the extent recommended by the 
     board of trustees of the Institute and approved by the 
     Secretary of Agriculture, a member of the board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Institute.

                      Subtitle D--Regional Equity

     SEC. 241. ALLOCATION OF CONSERVATION FUNDS BY STATE.

       (a) State Allocation.--
       (1) In general.--To the maximum extent practicable, in each 
     of fiscal years 2002 through 2006, the Secretary of 
     Agriculture (referred to in this section as the 
     ``Secretary''), subject to requirements of the conservation 
     programs administered by the Secretary, shall ensure that 
     each State receives, at a minimum, the share of the funds 
     made available under this title (and amendments made by this 
     title) that equals, at a minimum, $12,000,000 for each State, 
     for use in accordance with paragraph (2), for purposes 
     consistent with this title.
       (2) Use of funds.--Of the minimum amount made available to 
     each State under paragraph (1)--
       (A) $5,000,000 shall be used in accordance with the 
     environmental quality incentives program under chapter 4 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3839aa et seq.); and
       (B) $7,000,000 shall be used in accordance with other 
     conservation programs administered by the Secretary.
       (3) Unused funding.--Any funds made available for a fiscal 
     year under paragraph (1) that are not obligated by April 1 of 
     the fiscal year may be used to carry out other activities 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3801 et seq.).

                       Subtitle E--Miscellaneous

     SEC. 261. CRANBERRY ACREAGE RESERVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible area.--The term ``eligible area'' means a 
     wetland or buffer strip adjacent to a wetland that, as 
     determined by the Secretary--

[[Page S1047]]

       (A)(i) is used, and has a history of being used, for the 
     cultivation of cranberries; or
       (ii) is an integral component of a cranberry-growing 
     operation;
       (B) is located in an environmentally sensitive area.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (b) Program.--The Secretary shall establish a program to 
     purchase permanent easements in eligible areas from willing 
     sellers.
       (c) Purchase Price.--The Secretary shall ensure, to the 
     maximum extent practicable, that each easement purchased 
     under this section is for an amount that appropriately 
     reflects the range of values for agricultural and 
     nonagricultural land in the region in which the eligible area 
     subject to the easement is located (including whether that 
     land is located in 1 or more environmentally sensitive areas, 
     as determined by the Secretary).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000.

     SEC. 262. KLAMATH BASIN.

       (a) Definitions.--In this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) Task force.--The term ``Task Force'' means the Klamath 
     Basin Interagency Task Force established under subsection 
     (b).
       (b) Interagency Task Force.--
       (1) Establishment.--
       (A) In general.--The Secretary of Agriculture, in 
     conjunction with the Secretary of the Interior, shall 
     establish the Klamath Basin Interagency Task Force.
       (B) Approval of member.--A decision of the Task Force that 
     affects any area under the jurisdiction of a member of the 
     Task Force described in paragraph (2) shall not be 
     implemented without the consent of the member.
       (2) Membership.--The Task Force shall include 
     representatives of--
       (A) the Department of Agriculture, including--
       (i) the Natural Resources Conservation Service; and
       (ii) the Farm Service Agency;
       (B) the Department of the Interior, including--
       (i) the United States Fish and Wildlife Service;
       (ii) the Bureau of Reclamation; and
       (iii) the Bureau of Indian Affairs;
       (C) the Department of Commerce, including the National 
     Marine Fisheries Service;
       (D) the Council on Environmental Quality;
       (E) the Federal Energy Regulatory Commission;
       (F) the Environmental Protection Agency; and
       (G) the United States Geological Survey.
       (3) Duties.--The Task Force shall use conservation programs 
     of the Department of Agriculture and other Federal programs 
     in the Klamath Basin in Oregon and California for the 
     purposes of--
       (A) promoting agricultural production and environmental 
     quality as compatible Klamath Basin goals;
       (B) water conservation and improved agricultural practices;
       (C) aquatic ecosystem restoration;
       (D) improvement of water quality and quantity;
       (E) recovery and enhancement of endangered species, 
     including anadromous fish species and resident fish species; 
     and
       (F) restoration of the national wildlife refuges.
       (4) Cooperative agreement.--The Secretary of Agriculture, 
     Secretary of the Interior, and Secretary of Commerce shall 
     enter into a cooperative agreement to--
       (A) provide funding to the Task Force; and
       (B) use conservation programs administered by the Secretary 
     of Agriculture and other Federal programs administered by the 
     Secretary of the Interior and Secretary of Commerce in 
     carrying out the purposes described in paragraph (3).
       (5) Grant program.--
       (A) In general.--The Task Force shall establish a grant 
     program (including appropriate cost-sharing, monitoring, and 
     enforcement requirements) under which the Secretary of 
     Agriculture, the Secretary of the Interior, or the Secretary 
     of Commerce may enter into 1 or more agreements or contracts 
     with non-Federal entities, Indian tribes (as defined in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)), environmental 
     organizations, and water districts in the Klamath Basin to 
     carry out the purposes described in paragraph (3).
       (B) Contract terms.--An agreement or contract under 
     subparagraph (A) shall--
       (i) specify the responsibilities of the entity and the 
     Secretary under the agreement or contract;
       (ii) provide for such cost-sharing as the Secretary 
     considers appropriate; and
       (iii) include mechanisms for monitoring and enforcement 
     requirements.
       (c) Report and Plan.--
       (1) Development.--
       (A) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Task Force, after soliciting input 
     from the States of California and Oregon, local public 
     agencies, Indian tribes, Klamath Project districts, 
     environmental organizations, and the stakeholder community, 
     shall issue a report that--
       (i) considers the impacts of the biological assessment, the 
     biological opinion, activities of the Upper Klamath Basin 
     Working Group, activities of the Pacific Fisheries 
     Restoration Task Force, State water adjudications, and the 
     resolution of tribal rights, that may affect actions of the 
     Task Force; and
       (ii) includes a description of Federal spending in the 
     Klamath Basin for fiscal years 2000, 2001, and 2002.
       (B) Draft plan.--Not later than 60 days after completion of 
     the report under subparagraph (A), the Task Force shall 
     develop, and provide public notice of and an opportunity for 
     comment on, a draft 5-year plan to perform the duties of the 
     Task Force under subsection (b)(3).
       (C) Final plan.--Not later than 1 year after the date of 
     enactment of this Act, the Task Force shall finalize the plan 
     described in subparagraph (B).
       (2) Matters to be considered.--In developing the plan under 
     paragraph (1), the Task Force shall consider--
       (A) the use of water conservation easements by voluntary 
     participants;
       (B) purchase of agricultural land from willing sellers, 
     with priority given to land that will enhance natural water 
     storage capabilities;
       (C) benefits to the agricultural economy through incentives 
     for the use of irrigation efficiency, water conservation, or 
     other agricultural practices;
       (D) wetland restoration;
       (E) feasibility studies for alternative water storage, 
     water conservation, demand reduction, and restoration of 
     endangered species;
       (F) improvement of upper Klamath Basin watershed and water 
     quality;
       (G) improvement of habitat in the Tule Lake National 
     Wildlife Refuge, the Lower Klamath National Wildlife Refuge, 
     and the Upper Klamath Lake National Wildlife Refuge; and
       (H) fish screening and water metering.
       (d) Cooperation With Non-Federal Entities.--In carrying out 
     the duties of the Task Force under this section, the Task 
     Force shall--
       (1) consult with--
       (A) environmental, fishing, and agricultural interests; and
       (B) on a government-to-government basis, the Klamath, 
     Hoopa, Yurok, and Karuk Tribes;
       (2) provide appropriate opportunities for public 
     participation; and
       (3) hold meetings at least once every 3 months in the 
     Klamath Basin with opportunities for stakeholder 
     participation.
       (e) Funding.--
       (1) In general.--To carry out the purposes described in 
     subsection (b)(3), the Secretary shall use $175,000,000 of 
     the funds of the Commodity Credit Corporation for the period 
     of fiscal years 2003 through 2006, of which--
       (A) $15,000,000 shall be made available to the Klamath, 
     Hoopa, Yurok, and Karuk Tribes for use in the State of 
     California; and
       (B) $15,000,000 shall be made available to those Tribes for 
     use in the State of Oregon.
       (2) Funds made available to the tribes.--
       (A) In general.--The funds made available to the Tribes 
     under paragraph (1) shall be for projects for specific 
     habitat improvement related to the recovery of threatened and 
     endangered species to be carried out by the appropriate 
     tribal natural resources department, consistent with the 
     purposes of this section.
       (B) Reports.--The Tribes shall provide a biennial report to 
     the Task Force on expenditures of funds during the period 
     covered by the report.
       (3) Other funds.--The funds made available under paragraph 
     (1) shall be in addition to funds available to the States of 
     California and Oregon under other provisions of this Act 
     (including amendments made by this Act).
       (4) Unused funding.--Any funds made available for a fiscal 
     year under paragraph (1) that are not obligated by April 1, 
     2006, may be used to carry out other activities under 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3801 et seq.).
       (5) Expiration of authority to obligate funds.--The 
     Secretary may not obligate funds made available under this 
     subsection after September 30, 2006.
       (f) Savings Provision.--Nothing in this section regarding 
     the Klamath Basin affects any right or obligation of any 
     party under any treaty or any other provision of Federal or 
     State law.
       (g) Cooperative Agreements.--Notwithstanding the Federal 
     Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 501 et 
     seq.), the Secretary may enter into cooperative agreements 
     under this section.

                            TITLE III--TRADE

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

     SEC. 301. UNITED STATES POLICY.

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

     SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.

       Section 202 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1722) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(3) Program diversity.--The Administrator shall--
       ``(A) encourage eligible organizations to propose and 
     implement program plans to address 1 or more aspects of the 
     program under section 201; and
       ``(B) consider proposals that incorporate a variety of 
     program objectives and strategic plans based on the 
     identification by eligible organizations of appropriate 
     activities to assist development in foreign countries.'';
       (2) in subsection (e)(1), by striking ``not less than 
     $10,000,000, and not more than $28,000,000,'' and inserting 
     ``not less than 5 percent nor more than 10 percent of the 
     funds''; and
       (3) by adding at the end the following:
       ``(h) Certified Institutional Partners.--
       ``(1) In general.--The Administrator or the Secretary, as 
     applicable, shall promulgate regulations and issue guidelines 
     to permit private

[[Page S1048]]

     voluntary organizations and cooperatives to be certified as 
     institutional partners.
       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Administrator evidence of organizational 
     capacity that describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries in 
     which the certified institutional partner has already 
     demonstrated organizational capacity; and
       ``(B) receive expedited review of the proposal.''.

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

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

     SEC. 304. LEVELS OF ASSISTANCE.

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

     SEC. 305. FOOD AID CONSULTATIVE GROUP.

       Section 205(f) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.

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

     SEC. 307. ADMINISTRATION.

       Section 207 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Recipient countries.--A proposal to enter into a 
     nonemergency food assistance agreement under this title shall 
     identify the recipient country or countries that are the 
     subject of the agreement.
       ``(2) Timing.--Not later than 120 days after the date of 
     submission to the Administrator of a proposal submitted by an 
     eligible organization under this title, the Administrator 
     shall determine whether to accept the proposal.'';
       (2) in subsection (b), by striking ``guideline'' each place 
     it appears and inserting ``guideline or policy 
     determination''; and
       (3) by adding at the end the following:
       ``(e) Timely Approval.--
       ``(1) In general.--The Administrator shall finalize program 
     agreements and resource requests for programs under this 
     section before the beginning of each fiscal year.
       ``(2) Report.--Not later than December 1 of each year, the 
     Administrator shall submit to the Committee on Agriculture 
     and the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that contains--
       ``(A) a list of programs, countries, and commodities 
     approved to date for assistance under this section; and
       ``(B) a statement of the total amount of funds approved to 
     date for transportation and administrative costs under this 
     section.
       ``(f) Direct Delivery.--In addition to practices in effect 
     on the date of enactment of this subsection, the Secretary 
     may approve an agreement that provides for direct delivery of 
     agricultural commodities to milling or processing facilities 
     more than 50 percent of the interest in which is owned by 
     United States citizens in foreign countries, with the 
     proceeds of transactions transferred in cash to eligible 
     organizations described in section 202(d) to carry out 
     approved projects.''.

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

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

     SEC. 309. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB 
                   TO AFGHANISTAN.

       Title II of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1721 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 209. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE 
                   LAMB TO AFGHANISTAN.

       ``(a) In General.--The President may establish a pilot 
     emergency relief program under this title to provide live 
     lamb to Afghanistan on behalf of the people of the United 
     States.
       ``(b) Report.--Not later than January 1, 2004, the 
     Secretary shall submit to Congress a report that--
       ``(1)(A) evaluates the success of the program under 
     subsection (a); or
       ``(B) if the program has not succeeded or has not been 
     implemented, explains in detail why the program has not 
     succeeded or has not been implemented; and
       ``(2) discusses the feasibility and desirability of 
     providing assistance in the form of live animals.''.

     SEC. 310. SALE PROCEDURE.

       Section 403 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1733) is amended--
       (1) in subsection (b)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--In carrying out this Act, the 
     Secretary''; and
       (B) by adding at the end the following:
       ``(2) Currencies.--Sales of commodities described in 
     paragraph (1) may be in United States dollars or in a 
     different currency.'';
       (2) in subsection (e)--
       (A) by striking ``In carrying'' and inserting the 
     following:
       ``(1) In general.--In carrying''; and
       (B) by adding at the end the following:
       ``(2) Sale price.--Sales of commodities described in 
     paragraph (1) shall be made at a reasonable market price in 
     the economy where the commodity is to be sold, as determined 
     by the Secretary or the Administrator, as appropriate.''; and
       (3) by adding at the end the following:
       ``(l) Sale Procedure.--Subsections (b)(2) and (e)(2) shall 
     apply to sales of commodities in recipient countries to 
     generate proceeds to carry out projects under--
       ``(1) section 416(b) of the Agricultural Act of 1949 (7 
     U.S.C. 1431(b)); and
       ``(2) title VIII of the Agricultural Trade Act of 1978.''.

     SEC. 311. PREPOSITIONING.

       Section 407(c)(4) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by 
     striking ``and 2002'' and inserting ``through 2006''.

     SEC. 312. EXPIRATION DATE.

       Section 408 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736b) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 313. MICRONUTRIENT FORTIFICATION PROGRAM.

       Section 415 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``a micronutrient 
     fortification pilot program'' and inserting ``micronutrient 
     fortification programs''; and
       (B) in the second sentence--
       (i) by striking ``the program'' and inserting ``a 
     program'';
       (ii) in paragraph (1), by striking ``and'' at the end;
       (iii) in paragraph (2)--

       (I) by striking ``whole''; and
       (II) by striking the period at the end and inserting ``; 
     and''; and

       (iv) by adding at the end the following:
       ``(3) encourage technologies and systems for the improved 
     quality and safety of fortified grains and other commodities 
     that are readily transferable to developing countries.'';
       (2) in the first sentence of subsection (c)--
       (A) by striking ``the pilot program, whole'' and inserting 
     ``a program,'';
       (B) by striking ``the pilot program may'' and inserting ``a 
     program may''; and
       (C) by striking ``including'' and inserting ``such as''; 
     and
       (3) in subsection (d), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 314. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

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

               Subtitle B--Agricultural Trade Act of 1978

     SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Term of Supplier Credit Program.--Section 202(a)(2) of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is 
     amended by striking ``180 days'' and inserting ``12 months''.
       (b) Processed and High-Value Products.--Section 202(k)(1) 
     of the Agricultural Trade Act

[[Page S1049]]

     of 1978 (7 U.S.C. 5622(k)(1)) is amended by striking ``, 
     2001, and 2002'' and inserting ``through 2006''.
       (c) Report.--Section 202 of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622) is amended by adding at the end the 
     following:
       ``(l) Report on Agricultural Export Credit Programs.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, and annually thereafter, the 
     Secretary shall submit to the Committee on Agriculture and 
     the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate a report on the status of 
     multilateral negotiations regarding agricultural export 
     credit programs at the World Trade Organization and the 
     Organization of Economic Cooperation and Development in 
     fulfillment of Article 10.2 of the Agreement on Agriculture 
     (as described in section 101(d)(2) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(2))).
       ``(2) Classified information.--The report under paragraph 
     (1) shall be submitted in unclassified form, but may contain 
     a classified annex.''.
       (d) Reauthorization.--Section 211(b)(1) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 322. MARKET ACCESS PROGRAM.

       (a) In General.--Section 211(c) of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5641(c)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (2) by striking ``The Commodity'' and inserting the 
     following:
       ``(1) In general.--The Commodity'';
       (3) by striking subparagraph (A) (as so redesignated) and 
     inserting the following:
       ``(A) in addition to any funds that may be specifically 
     appropriated to implement a market access program, not more 
     than $100,000,000 for fiscal year 2002, $120,000,000 for 
     fiscal year 2003, $140,000,000 for fiscal year 2004, 
     $180,000,000 for fiscal year 2005, and $200,000,000 for 
     fiscal year 2006, of the funds of, or an equal value of 
     commodities owned by, the Commodity Credit Corporation, 
     except that this paragraph shall not apply to section 203(h); 
     and''; and
       (4) by adding at the end the following:
       ``(2) Program Priorities.--Of funds made available under 
     paragraph (1)(A) in excess of $90,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(A) made by eligible trade organizations that have never 
     participated in the market access program under this title; 
     or
       ``(B) for market access programs in emerging markets.''.
       (b) United States Quality Export Initiative.--
       (1) Findings.--Congress finds that--
       (A) the market access program established under section 203 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) and 
     foreign market development cooperator program established 
     under title VII of that Act (7 U.S.C. 5721 et seq.) target 
     generic and value-added agricultural products, with little 
     emphasis on the high quality of United States agricultural 
     products; and
       (B) new promotional tools are needed to enable United 
     States agricultural products to compete in higher margin, 
     international markets on the basis of quality.
       (2) Initiative.--Section 203 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5623) is amended by adding at the end the 
     following:
       ``(h) United States Quality Export Initiative.--
       ``(1) In general.--Subject to the availability of 
     appropriations, using the authorities under this section, the 
     Secretary shall establish a program under which, on a 
     competitive basis, using practical and objective criteria, 
     several agricultural products are selected to carry the `U.S. 
     Quality' seal.
       ``(2) Promotional activities.--Agricultural products 
     selected under paragraph (1) shall be promoted using the 
     `U.S. Quality' seal at trade fairs in key markets through 
     electronic and print media.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.''.

     SEC. 323. EXPORT ENHANCEMENT PROGRAM.

       (a) In General.--Section 301(e)(1)(G) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by 
     striking ``fiscal year 2002'' and inserting ``each of fiscal 
     years 2002 through 2006''.
       (b) Unfair Trade Practices.--Section 102(5)(A) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is 
     amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``, including, in the case of a state trading 
     enterprise engaged in the export of an agricultural 
     commodity, pricing practices that are not consistent with 
     sound commercial practices conducted in the ordinary course 
     of trade; or''; and
       (3) by adding at the end the following:
       ``(iii) changes United States export terms of trade through 
     a deliberate change in the dollar exchange rate of a 
     competing exporter.''.

     SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       Section 703 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5723) is amended to read as follows:

     ``SEC. 703. FUNDING.

       ``(a) In General.--To carry out this title, the Secretary 
     shall use funds of the Commodity Credit Corporation, or 
     commodities of the Commodity Credit Corporation of a 
     comparable value, in the following amounts:
       ``(1) For fiscal year 2002, $37,500,000.
       ``(2) For fiscal year 2003, $40,000,000.
       ``(3) For fiscal year 2004 and each subsequent fiscal year, 
     $42,500,000.
       ``(b) Program Priorities.--Of funds or commodities provided 
     under subsection (a) in excess of $35,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(1) made by eligible trade organizations that have never 
     participated in the program established under this title; or
       ``(2) for programs established under this title in emerging 
     markets.''.

     SEC. 325. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

       (a) In General.--The Agricultural Trade Act of 1978 (7 
     U.S.C. 5601 et seq.) is amended by adding at the end the 
     following:

         ``TITLE VIII--FOOD FOR PROGRESS AND EDUCATION PROGRAMS

     ``SEC. 801. DEFINITIONS.

       ``In this title:
       ``(1) Cooperative.--The term `cooperative' means a private 
     sector organization the members of which--
       ``(A) own and control the organization;
       ``(B) share in the profits of the organization; and
       ``(C) are provided services (such as business services and 
     outreach in cooperative development) by the organization.
       ``(2) Corporation.--The term `Corporation' means the 
     Commodity Credit Corporation.
       ``(3) Developing country.--The term `developing country' 
     means a foreign country that has--
       ``(A) a shortage of foreign exchange earnings; and
       ``(B) difficulty meeting all of the food needs of the 
     country through commercial channels and domestic production.
       ``(4) Eligible commodity.--The term `eligible commodity' 
     means an agricultural commodity (including vitamins and 
     minerals) acquired by the Secretary or the Corporation for 
     disposition in a program authorized under this title 
     through--
       ``(A) commercial purchases; or
       ``(B) inventories of the Corporation.
       ``(5) Eligible organization.--The term `eligible 
     organization' means a private voluntary organization, 
     cooperative, nongovernmental organization, or foreign 
     country, as determined by the Secretary.
       ``(6) Emerging agricultural country.--The term `emerging 
     agricultural country' means a foreign country that--
       ``(A) is an emerging democracy; and
       ``(B) has made a commitment to introduce or expand free 
     enterprise elements in the agricultural economy of the 
     country.
       ``(7) Food security.--The term `food security' means access 
     by all people at all times to sufficient food and nutrition 
     for a healthy and productive life.
       ``(8) Nongovernmental organization.--
       ``(A) In general.--The term `nongovernmental organization' 
     means an organization that operates on a local level to solve 
     development problems in a foreign country in which the 
     organization is located.
       ``(B) Exclusion.--The term `nongovernmental organization' 
     does not include an organization that is primarily an agency 
     or instrumentality of the government of a foreign country.
       ``(9) Private voluntary organization.--The term `private 
     voluntary organization' means a nonprofit, nongovernmental 
     organization that--
       ``(A) receives--
       ``(i) funds from private sources; and
       ``(ii) voluntary contributions of funds, staff time, or in-
     kind support from the public;
       ``(B) is engaged in or is planning to engage in 
     nonreligious voluntary, charitable, or development assistance 
     activities; and
       ``(C) in the case of an organization that is organized 
     under the laws of the United States or a State, is an 
     organization described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 that is exempt from taxation under 
     section 501(a) of that Code.
       ``(10) Program.--The term `program' means a food or 
     nutrition assistance or development initiative proposed by an 
     eligible organization and approved by the Secretary under 
     this title.
       ``(11) Recipient country.--The term `recipient country' 
     means an emerging agricultural country that receives 
     assistance under a program.

     ``SEC. 802. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

       ``(a) In General.--There are established the Food for 
     Progress Program and the International Food for Education and 
     Nutrition Program through which eligible commodities are made 
     available to eligible organizations to carry out programs of 
     assistance in developing countries.
       ``(b) Food for Progress Program.--
       ``(1) In general.--To provide agricultural commodities to 
     support the introduction or expansion of free trade 
     enterprises in national economies and to promote food 
     security in recipient countries, the Secretary shall 
     establish the Food for Progress Program, under which the 
     Secretary may enter into agreements (including multiyear 
     agreements and agreements for programs in more than 1 
     country) with entities described in paragraph (2).
       ``(2) Entities.--The Secretary may enter into agreements 
     under paragraph (1) with--
       ``(A) the governments of emerging agricultural countries;
       ``(B) private voluntary organizations;
       ``(C) nonprofit agricultural organizations and 
     cooperatives;
       ``(D) nongovernmental organizations; and
       ``(E) other private entities.
       ``(3) Considerations.--In determining whether to enter into 
     an agreement to establish a program under paragraph (1), the 
     Secretary shall

[[Page S1050]]

     take into consideration whether an emerging agricultural 
     country is committed to carrying out, or is carrying out, 
     policies that promote--
       ``(A) economic freedom;
       ``(B) private production of food commodities for domestic 
     consumption; and
       ``(C) the creation and expansion of efficient domestic 
     markets for the purchase and sale of those commodities.
       ``(c) International Food for Education and Nutrition 
     Program.--
       ``(1) In general.--In cooperation with other countries, the 
     Secretary shall establish an initiative under this title to 
     be known as the `International Food for Education and 
     Nutrition Program', through which the Secretary may provide 
     to eligible organizations agricultural commodities and 
     technical and nutritional assistance in connection with 
     education programs to improve food security and enhance 
     educational opportunities for preschool age and primary 
     school age children in recipient countries.
       ``(2) Agreements.--In carrying out this subsection, the 
     Secretary--
       ``(A) shall administer the programs under this subsection 
     in manner that is consistent with this title; and
       ``(B) may enter into agreements with eligible 
     organizations--
       ``(i) to purchase, acquire, and donate eligible commodities 
     to eligible organizations to carry out agreements in 
     recipient countries; and
       ``(ii) to provide technical and nutritional assistance to 
     carry out agreements in recipient countries.
       ``(3) Other donor countries.--The Secretary shall encourage 
     other donor countries, directly or through eligible 
     organizations--
       ``(A) to donate goods and funds to recipient countries; and
       ``(B) to provide technical and nutritional assistance to 
     recipient countries.
       ``(4) Private sector.--The President and the Secretary are 
     urged to encourage the support and active involvement of the 
     private sector, foundations, and other individuals and 
     organizations in programs and activities assisted under this 
     subsection.
       ``(5) Graduation.--An agreement with an eligible 
     organization under this subsection shall include provisions--
       ``(A)(i) to sustain the benefits to the education, 
     enrollment, and attendance of children in schools in the 
     targeted communities when the provision of commodities and 
     assistance to a recipient country under the program under 
     this subsection terminates; and
       ``(ii) to estimate the period of time required until the 
     recipient country or eligible organization is able to provide 
     sufficient assistance without additional assistance under 
     this subsection; or
       ``(B) to provide other long-term benefits to targeted 
     populations of the recipient country.
       ``(6) Eligible costs.--Subject to paragraphs (2) and (7), 
     the Secretary shall pay all or part of--
       ``(A) the costs and charges described in paragraphs (1) 
     through (5) and (7) of section 406(b) of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 
     1736(b)) with respect to an eligible commodity;
       ``(B) the internal transportation, storage, and handling 
     costs incurred in moving the eligible commodity, if the 
     Secretary determines that--
       ``(i) payment of the costs is appropriate; and
       ``(ii) the recipient country is a low income, net food-
     importing country that--

       ``(I) meets the poverty criteria established by the 
     International Bank for Reconstruction and Development for 
     Civil Works Preference; and
       ``(II) has a national government that is committed to or is 
     working toward, through a national action plan, the World 
     Declaration on Education for All convened in 1990 in Jomtien, 
     Thailand, and the followup Dakar Framework for Action of the 
     World Education Forum in 2000; and

       ``(C) the projected costs of an eligible organization for 
     administration, sales, monitoring, and technical assistance 
     under an agreement under paragraph (2) (including an itemized 
     budget), taking into consideration, as determined by the 
     Secretary--
       ``(i) the projected amount of such costs itemized by 
     category; and
       ``(ii) the projected amount of assistance to be received 
     from other donors.
       ``(7) Funding.--
       ``(A) Commodity credit corporation.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may use the funds, facilities, and authorities of the 
     Corporation to carry out this subsection.
       ``(ii) Limitation.--Not more than $150,000,000 for each of 
     fiscal years 2002 through 2005 shall be used to carry out 
     this subsection.
       ``(B) Use limitations.--Of the funds made available under 
     subparagraph (A), the Secretary may use to carry out 
     paragraph (6)(C) not more than $20,000,000 for each of fiscal 
     years 2002 through 2005.
       ``(C) Reallocation.--Funds not allocated under this 
     subsection by April 30 of a fiscal year shall be made 
     available for proposals submitted under the Food for Progress 
     Program under subsection (b).
       ``(8) Annual report.--The Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report that describes--
       ``(A) the results of the implementation of this subsection 
     during the year covered by the report, including the impact 
     on the enrollment, attendance, and performance of children in 
     preschools and primary schools targeted under the program 
     under this subsection; and
       ``(B) the level of commitments by, and the potential for 
     obtaining additional goods and assistance from, other 
     countries for subsequent years.
       ``(d) Terms.--
       ``(1) In general.--The Secretary may provide agricultural 
     commodities under this title on--
       ``(A) a grant basis; or
       ``(B) subject to paragraph (2), credit terms.
       ``(2) Credit terms.--Payment for agricultural commodities 
     made available under this title that are purchased on credit 
     terms shall be made on the same basis as payments made under 
     section 103 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1703).
       ``(3) No effect on domestic programs.--The Secretary shall 
     not make an agricultural commodity available for disposition 
     under this section in any amount that will reduce the amount 
     of the commodity that is traditionally made available through 
     donations to domestic feeding programs or agencies, as 
     determined by the Secretary.
       ``(4) Multiyear agreements.--In carrying out this title, on 
     request and subject to the availability of commodities, the 
     Secretary is encouraged to approve agreements that provide 
     for commodities to be made available for distribution on a 
     multiyear basis, if the agreements otherwise meet the 
     requirements of this title.
       ``(e) Reports.--Each eligible organization that enters into 
     an agreement under this title shall submit to the Secretary, 
     at such time as the Secretary may request, a report 
     containing such information as the Secretary may request 
     relating to the use of agricultural commodities and funds 
     provided to the eligible organization under this title.
       ``(f) Coordination.--To ensure that the provision of 
     commodities under this section is coordinated with and 
     complements other foreign assistance provided by the United 
     States, assistance under this section shall be coordinated 
     through the mechanism designated by the President to 
     coordinate assistance under the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.).
       ``(g) Quality Assurance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable, that each eligible organization 
     participating in 1 or more programs under this section--
       ``(A) uses eligible commodities made available under this 
     title--
       ``(i) in an effective manner;
       ``(ii) in the areas of greatest need; and
       ``(iii) in a manner that promotes the purposes of this 
     title;
       ``(B) in using eligible commodities, assesses and takes 
     into account the needs of recipient countries and the target 
     populations of the recipient countries;
       ``(C) works with recipient countries, and indigenous 
     institutions or groups in recipient countries, to design and 
     carry out mutually acceptable programs authorized under this 
     title;
       ``(D) monitors and reports on the distribution or sale of 
     eligible commodities provided under this title using methods 
     that, as determined by the Secretary, facilitate accurate and 
     timely reporting;
       ``(E) periodically evaluates the effectiveness of the 
     program of the eligible organization, including, as 
     applicable, an evaluation of whether the development or food 
     and nutrition purposes of the program can be sustained in a 
     recipient country if the assistance provided to the recipient 
     country is reduced and eventually terminated; and
       ``(F) considers means of improving the operation of the 
     program of the eligible organization.
       ``(2) Certified institutional partners.--
       ``(A) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.
       ``(B) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Secretary evidence of organizational 
     capacity that describes--
       ``(i) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(ii) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(C) Multicountry proposals.--A certified institutional 
     partner shall be eligible to--
       ``(i) submit a single proposal for 1 or more countries in 
     which the certified institutional partner has already 
     demonstrated organizational capacity; and
       ``(ii) receive expedited review of the proposal.
       ``(h) Transshipment and Resale.--
       ``(1) In general.--The transshipment or resale of an 
     eligible commodity to a country other than a recipient 
     country shall be prohibited unless the transshipment or 
     resale is approved by the Secretary.
       ``(2) Monetization.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (D), an eligible commodity provided under this section may be 
     sold for foreign currency or United States dollars or 
     bartered, with the approval of the Secretary.
       ``(B) Sale or barter of food assistance.--The sale or 
     barter of eligible commodities under this title may be 
     conducted only within (as determined by the Secretary)--
       ``(i) a recipient country or country near the recipient 
     country; or
       ``(ii) another country, if--

       ``(I) the sale or barter within the recipient country or 
     nearby country is not practicable; and
       ``(II) the sale or barter within countries other than the 
     recipient country or nearby country will not disrupt 
     commercial markets for the agricultural commodity involved.

       ``(C) Humanitarian or development purposes.--The Secretary 
     may authorize the use of proceeds or exchanges to pay the 
     costs incurred by an eligible organization under this title 
     for--
       ``(i)(I) programs targeted at hunger and malnutrition; or

[[Page S1051]]

       ``(II) development programs involving food security or 
     education;
       ``(ii) transportation, storage, and distribution of 
     eligible commodities provided under this title; and
       ``(iii) administration, sales, monitoring, and technical 
     assistance.
       ``(D) Exception.--The Secretary shall not approve the use 
     of proceeds described in subparagraph (C) to fund any 
     administrative expenses of a foreign government.
       ``(E) Private sector enhancement.--As appropriate, the 
     Secretary may provide eligible commodities under this title 
     in a manner that uses commodity transactions as a means of 
     developing in the recipient countries a competitive private 
     sector that can provide for the importation, transportation, 
     storage, marketing, and distribution of commodities.
       ``(i) Displacement of Commercial Sales.--In carrying out 
     this title, the Secretary shall, to the maximum extent 
     practicable consistent with the purposes of this title, 
     avoid--
       ``(1) displacing any commercial export sale of United 
     States agricultural commodities that would otherwise be made;
       ``(2) disrupting world prices of agricultural commodities; 
     or
       ``(3) disrupting normal patterns of commercial trade of 
     agricultural commodities with foreign countries.
       ``(j) Deadline for Program Announcements.--
       ``(1) In general.--Before the beginning of the applicable 
     fiscal year, the Secretary shall, to the maximum extent 
     practicable--
       ``(A) make all determinations concerning program agreements 
     and resource requests for programs under this title; and
       ``(B) announce those determinations.
       ``(2) Report.--Not later than November 1 of the applicable 
     fiscal year, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a list 
     of programs, countries, and commodities, and the total amount 
     of funds for transportation and administrative costs, 
     approved to date under this title.
       ``(k) Military Distribution of Assistance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable, that agricultural commodities 
     made available under this title are provided without regard 
     to--
       ``(A) the political affiliation, geographic location, 
     ethnic, tribal, or religious identity of the recipient; or
       ``(B) any other extraneous factors, as determined by the 
     Secretary.
       ``(2) Prohibition on handling of commodities by the 
     military.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall not enter into an agreement under this 
     title to provide agricultural commodities if the agreement 
     requires or permits the distribution, handling, or allocation 
     of agricultural commodities by the military forces of any 
     foreign government or insurgent group.
       ``(B) Exception.--The Secretary may authorize the 
     distribution, handling, or allocation of commodities by the 
     military forces of a country in exceptional circumstances in 
     which--
       ``(i) nonmilitary channels are not available for 
     distribution, handling, or allocation;
       ``(ii) the distribution, handling, or allocation is 
     consistent with paragraph (1); and
       ``(iii) the Secretary determines that the distribution, 
     handling, or allocation is necessary to meet the emergency 
     health, safety, or nutritional requirements of the population 
     of a recipient country.
       ``(3) Encouragement of safe passage.--In entering into an 
     agreement under this title that involves 1 or more areas 
     within a recipient country that is experiencing protracted 
     warfare or civil unrest, the Secretary shall, to the maximum 
     extent practicable, encourage all parties to the conflict 
     to--
       ``(A) permit safe passage of the commodities and other 
     relief supplies; and
       ``(B) establish safe zones for--
       ``(i) medical and humanitarian treatment; and
       ``(ii) evacuation of injured persons.
       ``(l) Level of Assistance.--The cost of commodities made 
     available under this title, and the expenses incurred in 
     connection with the provision of those commodities shall be 
     in addition to the level of assistance provided under the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1691 et seq.).
       ``(m) Commodity Credit Corporation.--
       ``(1) In general.--Subject to paragraphs (5) through (7), 
     the Secretary may use the funds, facilities, and authorities 
     of the Corporation to carry out this title.
       ``(2) Minimum tonnage.--Subject to paragraph (6)(B), not 
     less than 400,000 metric tons of commodities may be provided 
     under this title for the program established under subsection 
     (b) for each of fiscal years 2002 through 2006.
       ``(3) Authorization of appropriations.--In addition to 
     tonnage authorized under paragraph (2), there are authorized 
     to be appropriated such sums as are necessary to carry out 
     the program established under subsection (b).
       ``(4) Title i funds.--In addition to tonnage and funds 
     authorized under paragraphs (2), (3), and (6)(B), the 
     Corporation may use funds appropriated to carry out title I 
     of the Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1701 et seq.)) in carrying out the program 
     established under subsection (b).
       ``(5) Limitation on purchases of commodities.--The 
     Corporation may purchase agricultural commodities for 
     disposition under this title only if Corporation inventories 
     are insufficient to satisfy commitments made in agreements 
     entered into under this title.
       ``(6) Eligible costs and expenses.--
       ``(A) In general.--Subject to subparagraph (B), with 
     respect to an eligible commodity made available under the 
     program established under subsection (b), the Corporation may 
     pay--
       ``(i) the costs of acquiring the eligible commodity;
       ``(ii) the costs associated with packaging, enriching, 
     preserving, and fortifying of the eligible commodity;
       ``(iii) the processing, transportation, handling, and other 
     incidental costs incurred before the date on which the 
     commodity is delivered free on board vessels in United States 
     ports;
       ``(iv) the vessel freight charges from United States ports 
     or designated Canadian transshipment ports, as determined by 
     the Secretary, to designated ports of entry abroad;
       ``(v) the costs associated with transporting the eligible 
     commodity from United States ports to designated points of 
     entry abroad in a case in which--

       ``(I) a recipient country is landlocked;
       ``(II) ports of a recipient country cannot be used 
     effectively because of natural or other disturbances;
       ``(III) carriers to a specific country are unavailable; or
       ``(IV) substantial savings in costs or time may be gained 
     by the use of points of entry other than ports;

       ``(vi) the charges for general average contributions 
     arising out of the ocean transport of commodities 
     transferred; and
       ``(vii) the costs, in addition to costs authorized by 
     clauses (i) through (vi), of providing--

       ``(I) assistance in the administration, sale, and 
     monitoring of food assistance activities under this title; 
     and
       ``(II) technical assistance for monetization programs.

       ``(B) Funding.--Except for costs described in clauses (i) 
     through (iii) of subparagraph (A), unless authorized in 
     advance in an appropriations Act or reallocated under 
     subsection (c)(7)(C)--
       ``(i) not more than $55,000,000 of funds that would be 
     available to carry out paragraph (2) may be used to cover 
     costs under clauses (iv) through (vii) of subparagraph (A); 
     and
       ``(ii) of the amount provided under clause (i), not more 
     than $12,000,000 shall be made available to cover costs under 
     clauses (vi) and (vii) of subparagraph (A).
       ``(7) Payment of administrative costs.--An eligible 
     organization that receives payment for administrative costs 
     through monetization of the eligible commodity under 
     subsection (h)(2) shall not be eligible to receive payment 
     for the same administrative costs through direct payments 
     under paragraph (6)(A)(vii)(I).''.
       (b) Conforming Amendments.--
       (1) Section 416(b)(7)(D)(iii) of the Agricultural Act of 
     1949 (7 U.S.C. 1431(b)(7)(D)(iii)) is amended by striking 
     ``the Food for Progress Act of 1985'' and inserting ``title 
     VIII of the Agricultural Trade Act of 1978''.
       (2) The Act of August 19, 1958 (7 U.S.C. 1431 note; Public 
     Law 85-683) is amended by striking ``the Food for Progress 
     Act of 1985'' and inserting ``title VIII of the Agricultural 
     Trade Act of 1978''.
       (3) Section 1110 of the Food Security Act of 1985 (7 U.S.C. 
     1736o) is repealed.

     SEC. 326. EXPORTER ASSISTANCE INITIATIVE.

       (a) Findings.--Congress find that--
       (1) information in the possession of Federal agencies other 
     than the Department of Agriculture that is necessary for the 
     export of agricultural commodities and products is available 
     only from multiple disparate sources; and
       (2) because exporters often need access to information 
     quickly, exporters lack the time to search multiple sources 
     to access necessary information, and exporters often are 
     unaware of where the necessary information can be located.
       (b) Initiative.--Title I of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 107. EXPORTER ASSISTANCE INITIATIVE.

       ``(a) In General.--In order to create a single source of 
     information for exports of United States agricultural 
     commodities, the Secretary shall develop a website on the 
     Internet that collates onto a single website all information 
     from all agencies of the Federal Government that is relevant 
     to the export of United States agricultural commodities.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out subsection (a)--
       ``(1) $1,000,000 for each of fiscal years 2002 through 
     2004; and
       ``(2) $500,000 for each of fiscal years 2005 and 2006.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

     SEC. 331. BILL EMERSON HUMANITARIAN TRUST.

       Section 302 of the Bill Emerson Humanitarian Trust Act (7 
     U.S.C. 1736f-1) is amended by striking ``2002'' each place it 
     appears in subsection (b)(2)(B)(i) and paragraphs (1) and (2) 
     of subsection (h) and inserting ``2006''.

     SEC. 332. EMERGING MARKETS.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended by striking ``2002'' each place it appears in 
     subsections (a) and (d)(1)(A)(i) and inserting ``2006''.

     SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended by adding at the end the following:
       ``(g) Biotechnology and Agricultural Trade Program.--
       ``(1) In general.--The Secretary of Agriculture shall 
     establish a program to enhance foreign acceptance of 
     agricultural biotechnology and United States agricultural 
     products developed through biotechnology.

[[Page S1052]]

       ``(2) Focus.--The program shall address the continuing and 
     increasing market access, regulatory, and marketing issues 
     relating to export commerce of United States agricultural 
     biotechnology products.
       ``(3) Education and outreach.--
       ``(A) Foreign markets.--Support for United States 
     agricultural market development organizations to carry out 
     education and other outreach efforts concerning biotechnology 
     shall target such educational initiatives directed toward--
       ``(i) producers, buyers, consumers, and media in foreign 
     markets through initiatives in foreign markets; and
       ``(ii) government officials, scientists, and trade 
     officials from foreign countries through exchange programs.
       ``(B) Funding for education and outreach.--Funding for 
     activities under subparagraph (A) may be--
       ``(i) used through--

       ``(I) the emerging markets program under this section; or
       ``(II) the Cochran Fellowship Program under section 1543; 
     or

       ``(ii) applied directly to foreign market development 
     cooperators through the foreign market development cooperator 
     program established under section 702.
       ``(4) Rapid response.--
       ``(A) In general.--The Secretary shall assist exporters of 
     United States agricultural commodities in cases in which the 
     exporters are harmed by unwarranted and arbitrary barriers to 
     trade due to--
       ``(i) marketing of biotechnology products;
       ``(ii) food safety;
       ``(iii) disease; or
       ``(iv) other sanitary or phytosanitary concerns.
       ``(B) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $1,000,000 for 
     each of fiscal years 2002 through 2006.
       ``(5) Funding.--
       ``(A) Commodity credit corporation.--The Secretary shall 
     use the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this subsection (other than 
     paragraph (4)).
       ``(B) Funding amount.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this subsection (other than paragraph (4)) $15,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 334. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY 
                   COUNTRIES.

       (a) Use of Currencies.--Section 416(b)(7)(D) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is 
     amended--
       (1) in clauses (i) and (iii), by striking ``foreign 
     currency'' each place it appears;
       (2) in clause (ii)--
       (A) in the first sentence, by striking ``Foreign 
     currencies'' and inserting ``Proceeds''; and
       (B) in the second sentence, by striking ``foreign 
     currency''; and
       (3) in clause (iv)--
       (A) by striking ``Foreign currency proceeds'' and inserting 
     ``Proceeds''; and
       (B) by striking ``other than the country of origin--'' and 
     all that follows and inserting ``other than the country of 
     origin, for the purpose of carrying out programs under this 
     subsection.''.
       (b) Implementation of Agreements.--Section 416(b)(8) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended by 
     striking ``(8)(A)'' and all that follows through ``(B) The 
     Secretary'' and inserting the following:
       ``(8) Administrative provisions.--
       ``(A) Direct delivery.--In addition to practices in effect 
     on the date of enactment of this subparagraph, the Secretary 
     may approve an agreement that provides for direct delivery of 
     eligible commodities to milling or processing facilities more 
     than 50 percent of the interest in which is owned by United 
     States citizens in recipient countries, with the proceeds of 
     transactions transferred in cash to eligible organizations to 
     carry out approved projects.
       ``(B) Regulations.--The Secretary''.
       (c) Certified Institutional Partners.--Section 416 of the 
     Agricultural Act of 1949 (7 U.S.C. 1431) is amended by adding 
     at the end the following:
       ``(c) Certified Institutional Partners.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.
       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Secretary evidence of organizational 
     capacity that describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries in 
     which the certified institutional partner has already 
     demonstrated organizational capacity; and
       ``(B) receive expedited review of the proposal.''.

     SEC. 335. AGRICULTURAL TRADE WITH CUBA.

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

     SEC. 336. SENSE OF CONGRESS CONCERNING AGRICULTURAL TRADE.

       (a) Agriculture Trade Negotiating Objectives.--It is the 
     sense of Congress that the principal negotiating objective of 
     the United States with respect to agricultural trade in all 
     multilateral, regional, and bilateral negotiations is to 
     obtain competitive opportunities for the export of United 
     States agricultural commodities in foreign markets 
     substantially equivalent to the competitive opportunities 
     afforded foreign exports in United States markets and to 
     achieve fairer and more open conditions of agricultural trade 
     in bulk and value-added commodities by--
       (1) reducing or eliminating, by a date certain, tariffs or 
     other charges that decrease market opportunities for the 
     export of United States agricultural commodities, giving 
     priority to United States agricultural commodities that are 
     subject to significantly higher tariffs or subsidy regimes of 
     major producing countries;
       (2) immediately eliminating all export subsidies on 
     agricultural commodities worldwide while maintaining bona 
     fide food aid and preserving United States agricultural 
     market development and export credit programs that allow the 
     United States to compete with other foreign export promotion 
     efforts;
       (3) leveling the playing field for United States 
     agricultural producers by disciplining domestic supports such 
     that no other country can provide greater support, measured 
     as a percentage of total agricultural production value, than 
     the United States does while preserving existing green box 
     category to support conservation activities, family farms, 
     and rural communities;
       (4) developing, strengthening, and clarifying rules and 
     effective dispute settlement mechanisms to eliminate 
     practices that unfairly decrease United States market access 
     opportunities for United States agricultural commodities or 
     distort agricultural markets to the detriment of the United 
     States, including--
       (A) unfair or trade-distorting activities of state trading 
     enterprises and other administrative mechanisms, with 
     emphasis on--
       (i) requiring price transparency in the operation of state 
     trading enterprises and such other mechanisms; and
       (ii) ending discriminatory pricing practices for 
     agricultural commodities that amount to de facto export 
     subsidies so that the enterprises or other mechanisms do not 
     (except in cases of bona fide food aid) sell agricultural 
     commodities in foreign markets at prices below domestic 
     market prices or prices below the full costs of acquiring and 
     delivering agricultural commodities to the foreign markets;
       (B) unjustified trade restrictions or commercial 
     requirements affecting new agricultural technologies, 
     including biotechnology;
       (C) unjustified sanitary or phytosanitary restrictions, 
     including restrictions that are not based on scientific 
     principles, in contravention of the Agreement on the 
     Application of Sanitary and Phytosanitary Measures (as 
     described in section 101(d)(3) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(3)));
       (D) other unjustified technical barriers to agricultural 
     trade; and
       (E) restrictive and nontransparent rules in the 
     administration of tariff rate quotas;
       (5) improving import relief mechanisms to recognize the 
     unique characteristics of perishable agricultural 
     commodities;
       (6) taking into account whether a party to negotiations 
     with respect to trading in an agricultural commodity has--
       (A) failed to adhere to the provisions of an existing 
     bilateral trade agreement with the United States;
       (B) circumvented obligations under a multilateral trade 
     agreement to which the United States is a signatory; or
       (C) manipulated its currency value to the detriment of 
     United States agricultural producers or exporters; and
       (7) otherwise ensuring that countries that accede to the 
     World Trade Organization--
       (A) have made meaningful market liberalization commitments 
     in agriculture; and
       (B) make progress in fulfilling those commitments over 
     time.
       (b) Priority for Agriculture Trade.--It is the sense of 
     Congress that--
       (1) reaching a successful agreement on agriculture should 
     be the top priority of United States negotiators in World 
     Trade Organization talks; and
       (2) if the primary export competitors of the United States 
     fail to reduce their trade distorting domestic supports and 
     eliminate export subsidies in accordance with the negotiating 
     objectives expressed in this section, the United States 
     should take steps to increase the leverage of United States 
     negotiators and level the playing field for United States 
     producers, within existing World Trade Organization 
     commitments.
       (c) Consultation with Congressional Committees.--It is the 
     sense of Congress that--
       (1) before the United States Trade Representative 
     negotiates a trade agreement that would reduce tariffs on 
     agricultural commodities or require a change in United States 
     agricultural law, the United States Trade Representative 
     should consult with 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;

[[Page S1053]]

       (2) not less than 48 hours before initialing an agreement 
     relating to agricultural trade negotiated under the auspices 
     of the World Trade Organization, the United States Trade 
     Representative should consult closely with the committees 
     referred to in paragraph (1) regarding--
       (A) the details of the agreement;
       (B) the potential impact of the agreement on United States 
     agricultural producers; and
       (C) any changes in United States law necessary to implement 
     the agreement; and
       (3) any agreement or other understanding (whether verbal or 
     in writing) that relates to agricultural trade that is not 
     disclosed to Congress before legislation implementing a trade 
     agreement is introduced in either the Senate or the House of 
     Representatives should not be considered to be part of the 
     agreement approved by Congress and should have no force and 
     effect under Unites States law or in any dispute settlement 
     body.

     SEC. 337. REPORT ON USE OF PERISHABLE COMMODITIES.

       Not later than 120 days after the date of enactment of this 
     Act, the Secretary of Agriculture shall develop and submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report on deficiencies in transportation and 
     storage infrastructure and deficiencies in funding that have 
     limited the use, and expansion of use, of highly perishable 
     and semiperishable commodities in international food aid 
     programs of the Department of Agriculture.

     SEC. 338. SENSE OF SENATE CONCERNING FOREIGN ASSISTANCE 
                   PROGRAMS.

       (a) Findings.--Congress finds that--
       (1) the international community faces a continuing epidemic 
     of ethnic, sectarian, and criminal violence;
       (2) poverty, hunger, political uncertainty, and social 
     instability are the principal causes of violence and conflict 
     around the world;
       (3) broad-based, equitable economic growth and agriculture 
     development facilitates political stability, food security, 
     democracy, and the rule of law;
       (4) democratic governments are more likely to advocate and 
     observe international laws, protect civil and human rights, 
     pursue free market economies, and avoid external conflicts;
       (5) the United States Agency for International Development 
     has provided critical democracy and governance assistance to 
     a majority of the nations that successfully made the 
     transition to democratic governments during the past 2 
     decades;
       (6) 43 of the top 50 consumer nations of American 
     agricultural products were once United States foreign aid 
     recipients;
       (7) in the past 50 years, infant child death rates in the 
     developing world have been reduced by 50 percent, and health 
     conditions around the world have improved more during this 
     period than in any other period;
       (8) the United States Agency for International Development 
     child survival programs have significantly contributed to a 
     10 percent reduction in infant mortality rates worldwide in 
     just the past 8 years;
       (9) in providing assistance by the United States and other 
     donors in better seeds and teaching more efficient 
     agricultural techniques over the past 2 decades have helped 
     make it possible to feed an additional 1,000,000,000 people 
     in the world;
       (10) despite this progress, approximately 1,200,000,000 
     people, one-quarter of the world's population, live on less 
     that $1 per day, and approximately 3,000,000,000 people live 
     on only $2 per day;
       (11) 95 percent of new births occur in developing 
     countries, including the world's poorest countries; and
       (12) only \1/2\ percent of the Federal budget is dedicated 
     to international economic and humanitarian assistance.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) United States foreign assistance programs should play 
     an increased role in the global fight against terrorism to 
     complement the national security objectives of the United 
     States;
       (2) the United States should lead coordinated international 
     efforts to provide increased financial assistance to 
     countries with impoverished and disadvantaged populations 
     that are the breeding grounds for terrorism; and
       (3) the United States Agency for International Development 
     and the Department of Agriculture should substantially 
     increase humanitarian, economic development, and agricultural 
     assistance to foster international peace and stability and 
     the promotion of human rights.

                      TITLE IV--NUTRITION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Food Stamp Reauthorization 
     Act of 2002''.

                     Subtitle A--Food Stamp Program

     SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

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

     SEC. 412. SIMPLIFIED DEFINITION OF INCOME.

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

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

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow for each household a 
     standard deduction that is equal to the greater of--
       ``(i) the applicable percentage specified in subparagraph 
     (D) of the applicable income standard of eligibility 
     established under subsection (c)(1); or
       ``(ii) the minimum deduction specified in subparagraph (E).
       ``(B) Guam.--The Secretary shall allow for each household 
     in Guam a standard deduction that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2007;
       ``(ii) 8.25 percent for fiscal year 2008;
       ``(iii) 8.5 percent for each of fiscal years 2009 and 2010; 
     and
       ``(iv) 9 percent for fiscal year 2011 and each fiscal year 
     thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.

     SEC. 414. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

       (a) In General.--Section 5(e)(7) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(e)(7)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``A household'' and inserting the 
     following:

[[Page S1054]]

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

     SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.

       Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as 
     amended by section 414(b)(1)(B)) is amended--
       (1) in subclause (I)(bb), by inserting ``(without regard to 
     subclause (III))'' after ``Secretary finds''; and
       (2) by adding at the end the following:

       ``(III) Inapplicability of certain restrictions.--Clauses 
     (ii)(II) and (ii)(III) shall not apply in the case of a State 
     agency that has made the use of a standard utility allowance 
     mandatory under subclause (I).''.

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

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

     SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) (as amended by section 416) is amended by adding 
     at the end the following:
       ``(D) Simplified determination of deductions.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of subsection (e), a State agency may elect to 
     disregard until the next redetermination of eligibility under 
     section 11(e)(4) 1 or more types of changes in the 
     circumstances of a household that affect the amount of 
     deductions the household may claim under subsection (e).
       ``(ii) Changes that may not be disregarded.--Under clause 
     (i), a State agency may not disregard--

       ``(I) any reported change of residence; or
       ``(II) under standards prescribed by the Secretary, any 
     change in earned income.''.

     SEC. 418. SIMPLIFIED DEFINITION OF RESOURCES.

       Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)) is amended by adding at the end the following:
       ``(6) Exclusion of types of financial resources not 
     considered under certain other federal programs.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall promulgate regulations under which a State 
     agency may, at the option of the State agency, exclude from 
     financial resources under this subsection any types of 
     financial resources that the State agency does not consider 
     when determining eligibility for--
       ``(i) cash assistance under a program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.); or
       ``(ii) medical assistance under section 1931 of the Social 
     Security Act (42 U.S.C. 1396u-1).
       ``(B) Limitations.--Subparagraph (A) does not authorize a 
     State agency to exclude--
       ``(i) cash;
       ``(ii) licensed vehicles;
       ``(iii) amounts in any account in a financial institution 
     that are readily available to the household; or
       ``(iv) any other similar type of resource the inclusion in 
     financial resources of which the Secretary determines by 
     regulation to be essential to equitable determinations of 
     eligibility under the food stamp program, except to the 
     extent that any of those types of resources are excluded 
     under another paragraph of this subsection.''.

     SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

       Section 5(h)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(h)(3)(B)) is amended--
       (1) in the first sentence, by inserting ``issuance methods 
     and'' after ``shall adjust''; and
       (2) in the second sentence, by inserting ``, any conditions 
     that make reliance on electronic benefit transfer systems 
     described in section 7(i) impracticable,'' after 
     ``personnel''.

     SEC. 420. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

       Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)(1)) is amended--
       (1) in subparagraph (B), by striking ``on a monthly 
     basis''; and
       (2) by adding at the end the following:
       ``(D) Frequency of reporting.--
       ``(i) In general.--Except as provided in subparagraphs (A) 
     and (C), a State agency may require households that report on 
     a periodic basis to submit reports--

       ``(I) not less often than once each 6 months; but
       ``(II) not more often than once each month.

       ``(ii) Reporting by households with excess income.--A 
     household required to report less often than once each 3 
     months shall, notwithstanding subparagraph (B), report in a 
     manner prescribed by the Secretary if the income of the 
     household for any month exceeds the standard established 
     under section 5(c)(2).''.

     SEC. 421. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.

       (a) In General.--Section 6(o) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C)--
       (i) by striking ``subsection (d)(4),'' and inserting 
     ``subsection (d)(4)''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(D) a job search program or job search training program 
     if--
       ``(i) the program meets standards established by the 
     Secretary to ensure that the participant is continuously and 
     actively seeking employment in the private sector; and
       ``(ii) no position is currently available for the 
     participant in an employment or training program that meets 
     the requirements of subparagraph (C).'';
       (2) in paragraph (2)--
       (A) by striking ``36-month'' and inserting ``24-month''; 
     and
       (B) by striking ``3'' and inserting ``6'';
       (3) by striking paragraph (5) and inserting the following:
       ``(5) Eligibility of individuals while meeting work 
     requirement.--Notwithstanding paragraph (2), an individual 
     who would otherwise be ineligible under that paragraph shall 
     be eligible to participate in the food stamp program during 
     any period in which the individual meets the work requirement 
     of subparagraph (A), (B), or (C) of that paragraph.''; and
       (4) in paragraph (6)(A)(ii)--
       (A) in subclause (III), by adding ``and'' at the end;
       (B) in subclause (IV)--
       (i) by striking ``3'' and inserting ``6''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subclause (V).
       (b) Implementation of Amendments.--For the purpose of 
     implementing the amendments made by subsection (a), a State 
     agency shall disregard any period during which an individual 
     received food stamp benefits before the effective date of 
     this title.

     SEC. 422. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

       (a) In General.--Section 7(i)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2016(i)(1)) is amended by adding at the end 
     the following:
       ``(E) Access to ebt systems.--
       ``(i) In general.--No benefits shall be taken off-line or 
     otherwise made inaccessible because of inactivity until at 
     least 180 days have elapsed since a household last accessed 
     the account of the household.
       ``(ii) Notice to household.--In a case in which benefits 
     are taken off-line or otherwise made inaccessible, the 
     household shall be sent a notice that--

       ``(I) explains how to reactivate the benefits; and
       ``(II) offers assistance if the household is having 
     difficulty accessing the benefits of the household.''.

       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to each State agency beginning on 
     the date on which the State agency, after the date of 
     enactment of this Act, enters into a contract to operate an 
     electronic benefit transfer system.

     SEC. 423. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

       Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2016(i)(2)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) through (I) as 
     subparagraphs (A) through (H), respectively.

     SEC. 424. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN 
                   GROUP FACILITIES.

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in paragraph (1) shall be calculated in 
     accordance with standardized procedures established by the 
     Secretary that take into account the allotments typically 
     received by residents of facilities described in paragraph 
     (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.

[[Page S1055]]

       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

       ``(I) is eligible for continued benefits under the food 
     stamp program; and
       ``(II) should contact the State agency concerning 
     continuation of the benefits.

       ``(B) Issuance to departed residents.--On receiving a 
     notification under subparagraph (A)(i) concerning the 
     departure of a resident, the State agency--
       ``(i) shall promptly issue the departed resident an 
     allotment for the days of the month after the departure of 
     the resident (calculated in a manner prescribed by the 
     Secretary) unless the departed resident reapplies to 
     participate in the food stamp program; and
       ``(ii) may issue an allotment for the month following the 
     month of the departure (but not any subsequent month) based 
     on this subsection unless the departed resident reapplies to 
     participate in the food stamp program.
       ``(C) State option.--The State agency may elect not to 
     issue an allotment under subparagraph (B)(i) if the State 
     agency lacks sufficient information on the location of the 
     departed resident to provide the allotment.
       ``(D) Effect of reapplication.--If the departed resident 
     reapplies to participate in the food stamp program, the 
     allotment of the departed resident shall be determined 
     without regard to this subsection.''.
       (b) Conforming Amendments.--
       (1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(i)) is amended--
       (A) by striking ``(i) `Household' means (1) an'' and 
     inserting the following:
       ``(i)(1) `Household' means--
       ``(A) an'';
       (B) in the first sentence, by striking ``others, or (2) a 
     group'' and inserting the following: ``others; or
       ``(B) a group'';
       (C) in the second sentence, by striking ``Spouses'' and 
     inserting the following:
       ``(2) Spouses'';
       (D) in the third sentence, by striking ``Notwithstanding'' 
     and inserting the following:
       ``(3) Notwithstanding'';
       (E) in paragraph (3) (as designated by subparagraph (D)), 
     by striking ``the preceding sentences'' and inserting 
     ``paragraphs (1) and (2)'';
       (F) in the fourth sentence, by striking ``In no event'' and 
     inserting the following:
       ``(4) In no event'';
       (G) in the fifth sentence, by striking ``For the purposes 
     of this subsection, residents'' and inserting the following:
       ``(5) For the purposes of this subsection, the following 
     persons shall not be considered to be residents of 
     institutions and shall be considered to be individual 
     households:
       ``(A) Residents''; and
       (H) in paragraph (5) (as designated by subparagraph (G))--
       (i) by striking ``Act, or are individuals'' and inserting 
     the following: ``Act.
       ``(B) Individuals'';
       (ii) by striking ``such section, temporary'' and inserting 
     the following: ``that section.
       ``(C) Temporary'';
       (iii) by striking ``children, residents'' and inserting the 
     following: ``children.
       ``(D) Residents'';
       (iv) by striking ``coupons, and narcotics'' and inserting 
     the following: ``coupons.
       ``(E) Narcotics''; and
       (v) by striking ``shall not'' and all that follows and 
     inserting a period.
       (2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended by striking ``the third sentence of 
     section 3(i)'' each place it appears and inserting ``section 
     3(i)(4)''.
       (3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(e)(1)) is amended by striking ``the last sentence of 
     section 3(i)'' and inserting ``section 3(i)(5)''.
       (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by 
     striking ``the last 2 sentences of section 3(i)'' and 
     inserting ``paragraphs (4) and (5) of section 3(i)''.

     SEC. 425. REDEMPTION OF BENEFITS THROUGH GROUP LIVING 
                   ARRANGEMENTS.

       Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 2019) is 
     amended by inserting after the first sentence the following: 
     ``Notwithstanding the preceding sentence, a center, 
     organization, institution, shelter, group living arrangement, 
     or establishment described in that sentence may be authorized 
     to redeem coupons through a financial institution described 
     in that sentence if the center, organization, institution, 
     shelter, group living arrangement, or establishment is 
     equipped with 1 or more point-of-sale devices and is 
     operating in an area in which an electronic benefit transfer 
     system described in section 7(i) has been implemented.''.

     SEC. 426. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON 
                   THE INTERNET.

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

     SEC. 427. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

       (a) In General.--Section 11(e) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4)(A) that the State agency shall periodically require 
     each household to cooperate in a redetermination of the 
     eligibility of the household.
       ``(B) A redetermination under subparagraph (A) shall--
       ``(i) be based on information supplied by the household; 
     and
       ``(ii) conform to standards established by the Secretary.
       ``(C) The interval between redeterminations of eligibility 
     under subparagraph (A) shall not exceed the eligibility 
     review period;'' and
       (2) in paragraph (10)--
       (A) by striking ``within the household's certification 
     period''; and
       (B) by striking ``or until'' and all that follows through 
     ``occurs earlier''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended--
       (A) by striking ``Certification period'' and inserting 
     ``Eligibility review period''; and
       (B) by striking ``certification period'' each place it 
     appears and inserting ``eligibility review period''.
       (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (A) in subsection (d)(2), by striking ``in the 
     certification period which'' and inserting ``that''; and
       (B) in subsection (e) (as amended by section 
     414(b)(1)(B))--
       (i) in paragraph (5)(B)(ii)--

       (I) in subclause (II), by striking ``certification period'' 
     and inserting ``eligibility review period''; and
       (II) in subclause (III), by striking ``has been anticipated 
     for the certification period'' and inserting ``was 
     anticipated when the household applied or at the most recent 
     redetermination of eligibility for the household''; and

       (ii) in paragraph (6)(C)(iii)(II), by striking ``the end of 
     a certification period'' and inserting ``each redetermination 
     of the eligibility of the household''.
       (3) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
     is amended--
       (A) in subsection (c)(1)(C)(iv), by striking 
     ``certification period'' each place it appears and inserting 
     ``interval between required redeterminations of 
     eligibility''; and
       (B) in subsection (d)(1)(D)(v)(II), by striking ``a 
     certification period'' and inserting ``an eligibility review 
     period''.
       (4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)) is amended--
       (A) in the second sentence of paragraph (1), by striking 
     ``within a certification period''; and
       (B) in paragraph (2)(B), by striking ``expiration of'' and 
     all that follows through ``during a certification period,'' 
     and inserting ``termination of benefits to the household,''.
       (5) Section 11(e)(16) of the Food Stamp Act of 1977 (7 
     U.S.C. 2020(e)(16)) is amended by striking ``the 
     certification or recertification'' and inserting 
     ``determining the eligibility''.

     SEC. 428. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION 
                   EFFORTS.

       Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(f)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Nutrition education clearinghouse.--The Secretary 
     shall--
       ``(A) request State agencies to submit to the Secretary 
     descriptions of successful nutrition education programs 
     designed for use in the food stamp program and other 
     nutrition assistance programs;
       ``(B) make the descriptions submitted under subparagraph 
     (A) available on the website of the Department of 
     Agriculture; and
       ``(C) inform State agencies of the availability of the 
     descriptions on the website.''.

     SEC. 429. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State agency may provide transitional 
     food stamp benefits to a household that ceases to receive 
     cash assistance under a State program funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount of benefits.--During the transitional benefits 
     period under paragraph (2), a household shall receive an 
     amount of food stamp benefits equal to the allotment received 
     in the month immediately preceding the date on which cash 
     assistance was terminated, adjusted for--
       ``(A) the change in household income as a result of the 
     termination of cash assistance; and
       ``(B) any changes in circumstances that may result in an 
     increase in the food stamp allotment of the household and 
     that the household elects to report.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--
       ``(A) require the household to cooperate in a 
     redetermination of eligibility; and
       ``(B) initiate a new eligibility review period for the 
     household without regard to whether the preceding eligibility 
     review period has expired.
       ``(5) Limitation.--A household shall not be eligible for 
     transitional benefits under this subsection if the 
     household--

[[Page S1056]]

       ``(A) loses eligibility under section 6;
       ``(B) is sanctioned for a failure to perform an action 
     required by Federal, State, or local law relating to a cash 
     assistance program described in paragraph (1); or
       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 430. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

       Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2023(a)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Delivery of notices.--A notice under paragraph (1) 
     shall be delivered by any form of delivery that the Secretary 
     determines will provide evidence of the delivery.''.

     SEC. 431. REFORM OF QUALITY CONTROL SYSTEM.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``enhances payment accuracy'' and all that 
     follows through ``(A) the Secretary'' and inserting the 
     following: ``enhances payment accuracy and that has the 
     following elements:
       ``(A) Enhanced administrative funding.--With respect to 
     fiscal year 2001, the Secretary'';
       (B) in subparagraph (A)--
       (i) by striking ``one percentage point to a maximum of 60'' 
     and inserting ``\1/2\ of 1 percentage point to a maximum of 
     55''; and
       (ii) by striking the semicolon at the end and inserting a 
     period; and
       (C) by striking subparagraph (B) and all that follows and 
     inserting the following:
       ``(B) Investigation and initial sanctions.--
       ``(i) Investigation.--Except as provided under subparagraph 
     (C), for any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that the 
     payment error rate of a State agency exceeds the national 
     performance measure for payment error rates announced under 
     paragraph (6) by more than 1 percentage point, other than for 
     good cause shown, the Secretary shall investigate the 
     administration by the State agency of the food stamp program 
     unless the Secretary determines that sufficient information 
     is already available to review the administration by the 
     State agency.
       ``(ii) Initial sanctions.--If an investigation under clause 
     (i) results in a determination that the State agency has been 
     seriously negligent (as determined under standards 
     promulgated by the Secretary), the State agency shall pay the 
     Secretary an amount that reflects the extent of such 
     negligence (as determined under standards promulgated by the 
     Secretary), not to exceed 5 percent of the amount provided to 
     the State agency under subsection (a) for the fiscal year.
       ``(C) Additional sanctions.--If, for any fiscal year, the 
     Secretary determines that a 95 percent statistical 
     probability exists that the payment error rate of a State 
     agency exceeds the national performance measure for payment 
     error rates announced under paragraph (6) by more than 1 
     percentage point, other than for good cause shown, and that 
     the State agency was sanctioned under this paragraph or was 
     the subject of an investigation or review under subparagraph 
     (B)(i) for each of the 2 immediately preceding fiscal years, 
     the State agency shall pay to the Secretary an amount equal 
     to the product obtained by multiplying--
       ``(i) the value of all allotments issued by the State 
     agency in the fiscal year;
       ``(ii) the lesser of--

       ``(I) the ratio that--

       ``(aa) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year; bears to
       ``(bb) 10 percent; or

       ``(II) 1; and

       ``(iii) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year.
       ``(D) Corrective action plans.--The Secretary shall foster 
     management improvements by the States by requiring State 
     agencies to develop and implement corrective action plans to 
     reduce payment errors.'';
       (2) in paragraph (2)(A), by inserting before the semicolon 
     the following: ``, as adjusted downward as appropriate under 
     paragraph (10)'';
       (3) in paragraph (4), by striking ``(4)'' and all that 
     follows through the end of the first sentence and inserting 
     the following:
       ``(4) Reporting requirements.--The Secretary may require a 
     State agency to report any factors that the Secretary 
     considers necessary to determine a State agency's payment 
     error rate, enhanced administrative funding, claim for 
     payment error under paragraph (1), or performance under the 
     performance measures under paragraph (11).'';
       (4) in paragraph (5), by striking ``(5)'' and all that 
     follows through the end of the second sentence and inserting 
     the following:
       ``(5) Procedures.--To facilitate the implementation of this 
     subsection, each State agency shall expeditiously submit to 
     the Secretary data concerning the operations of the State 
     agency in each fiscal year sufficient for the Secretary to 
     establish the payment error rate for the State agency for the 
     fiscal year, to comply with paragraph (10), and to determine 
     the amount of enhanced administrative funding under paragraph 
     (1)(A), high performance bonus payments under paragraph (11), 
     or claims under subparagraph (B) or (C) of paragraph (1).'';
       (5) in paragraph (6)--
       (A) in the first and third sentences, by striking 
     ``paragraph (5)'' each place it appears and inserting 
     ``paragraph (8)''; and
       (B) in the first sentence, by inserting ``(but determined 
     without regard to paragraph (10))'' before ``times that''; 
     and
       (6) by adding at the end the following:
       ``(10) Adjustments of payment error rate.--
       ``(A) In general.--
       ``(i) Adjustment for higher percentage of households with 
     earned income.--With respect to fiscal year 2002 and each 
     fiscal year thereafter, in applying paragraph (1), the 
     Secretary shall adjust the payment error rate determined 
     under paragraph (2)(A) as necessary to take into account any 
     increases in errors that result from the State agency's 
     having a higher percentage of participating households that 
     have earned income than the lesser of--

       ``(I) the percentage of participating households in all 
     States that have earned income; or
       ``(II) the percentage of participating households in the 
     State in fiscal year 1992 that had earned income.

       ``(ii) Adjustment for higher percentage of households with 
     noncitizen members.--With respect to fiscal year 2002 and 
     each fiscal year thereafter, in applying paragraph (1), the 
     Secretary shall adjust the payment error rate determined 
     under paragraph (2)(A) as necessary to take into account any 
     increases in errors that result from the State agency's 
     having a higher percentage of participating households that 
     have 1 or more members who are not United States citizens 
     than the lesser of--

       ``(I) the percentage of participating households in all 
     States that have 1 or more members who are not United States 
     citizens; or
       ``(II) the percentage of participating households in the 
     State in fiscal year 1998 that had 1 or more members who were 
     not United States citizens.

       ``(B) Additional adjustments.--For fiscal year 2003 and 
     each fiscal year thereafter, the Secretary may make such 
     additional adjustments to the payment error rate determined 
     under paragraph (2)(A) as the Secretary determines to be 
     consistent with achieving the purposes of this Act.''.
       (b) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 432. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

       (a) In General.--Section 16(c)(8) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)(8)) is amended--
       (1) in subparagraph (B), by striking ``180 days after the 
     end of the fiscal year'' and inserting ``the first May 31 
     after the end of the fiscal year referred to in subparagraph 
     (A)''; and
       (2) in subparagraph (C), by striking ``30 days thereafter'' 
     and inserting ``the first June 30 after the end of the fiscal 
     year referred to in subparagraph (A)''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 433. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 431(a)(6)) is 
     amended by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--The Secretary shall--
       ``(i) with respect to fiscal year 2002 and each fiscal year 
     thereafter, measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) in fiscal year 2003 and each fiscal year thereafter, 
     subject to subparagraphs (C) and (D), make high performance 
     bonus payments to the State agencies with the highest or most 
     improved performance with respect to those performance 
     measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i) the ratio, expressed as a percentage, that--

       ``(I) the number of households in the State that--

       ``(aa) receive food stamps;
       ``(bb) have incomes less than 130 percent of the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902));
       ``(cc) have annual earnings equal to at least 1000 times 
     the Federal minimum hourly rate under the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 201 et seq.); and
       ``(dd) have children under age 18; bears to

       ``(II) the number of households in the State that meet the 
     criteria specified in items (bb) through (dd) of subclause 
     (I); and

       ``(ii) 4 additional performance measures, established by 
     the Secretary in consultation with the National Governors 
     Association, the American Public Human Services Association, 
     and the National Conference of State Legislatures not later 
     than 180 days after the date of enactment of this paragraph, 
     of which not less than 1 performance measure shall relate to 
     provision of timely and appropriate services to applicants 
     for and recipients of food stamp benefits.
       ``(C) High performance bonus payments.--

[[Page S1057]]

       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(6)(A).
       ``(ii) Amount of payments.--

       ``(I) In general.--In fiscal year 2003 and each fiscal year 
     thereafter, the Secretary shall--

       ``(aa) make 1 high performance bonus payment of $6,000,000 
     for each of the 5 performance measures under subparagraph 
     (B); and
       ``(bb) allocate the high performance bonus payment with 
     respect to each performance measure in accordance with 
     subclauses (II) and (III).

       ``(II) Payments for performance measures.--In fiscal year 
     2003 and each fiscal year thereafter, the Secretary shall 
     allocate, in accordance with subclause (III), the high 
     performance bonus payment made for each performance measure 
     under subparagraph (B) among the 6 State agencies with, as 
     determined by the Secretary by regulation--

       ``(aa) the greatest improvement in the level of performance 
     with respect to the performance measure between the 2 most 
     recent years for which the Secretary determines that reliable 
     data are available;
       ``(bb) the highest performance in the performance measure 
     for the most recent year for which the Secretary determines 
     that reliable data are available; or
       ``(cc) a combination of the greatest improvement described 
     in item (aa) and the highest performance described in item 
     (bb).

       ``(III) Allocation among state agencies eligible for 
     payments.--A high performance bonus payment under subclause 
     (II) made for a performance measure shall be allocated among 
     the 6 State agencies eligible for the payment in the ratio 
     that--

       ``(aa) the caseload of each of the 6 State agencies 
     eligible for the payment; bears to
       ``(bb) the caseloads of the 6 State agencies eligible for 
     the payment.
       ``(D) Prohibition on receipt of high performance bonus 
     payments by state agencies subject to sanctions.--If, for any 
     fiscal year, a State agency is subject to a sanction under 
     paragraph (1), the State agency shall not be eligible for a 
     high performance bonus payment for the fiscal year.
       ``(E) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a high performance bonus payment under this paragraph 
     shall not be subject to judicial review.''.
       (b) Applicability.--The amendment made by subsection (a) 
     takes effect on the date of enactment of this Act.

     SEC. 434. EMPLOYMENT AND TRAINING PROGRAM.

       (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, to remain available until expended,''; 
     and
       (B) by striking clause (vii) and inserting the following:
       ``(vii) for each of fiscal years 2002 through 2006, 
     $90,000,000, to remain available until expended.'';
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Allocation.--Funds made available under subparagraph 
     (A) shall be made available to and reallocated among State 
     agencies under a reasonable formula that--
       ``(i) is determined and adjusted by the Secretary; and
       ``(ii) takes into account the number of individuals who are 
     not exempt from the work requirement under section 6(o).''; 
     and
       (3) by striking subparagraphs (E) through (G) and inserting 
     the following:
       ``(E) Additional allocations for states that ensure 
     availability of work opportunities.--
       ``(i) In general.--In addition to the allocations under 
     subparagraph (A), from funds made available under section 
     18(a)(1), the Secretary shall allocate not more than 
     $25,000,000 for each of fiscal years 2002 through 2006 to 
     reimburse a State agency that is eligible under clause (ii) 
     for the costs incurred in serving food stamp recipients who--

       ``(I) are not eligible for an exception under section 
     6(o)(3); and
       ``(II) are placed in and comply with a program described in 
     subparagraph (B) or (C) of section 6(o)(2).

       ``(ii) Eligibility.--To be eligible for an additional 
     allocation under clause (i), a State agency shall--

       ``(I) exhaust the allocation to the State agency under 
     subparagraph (A) (including any reallocation that has been 
     made available under subparagraph (C)); and
       ``(II) make and comply with a commitment to offer a 
     position in a program described in subparagraph (B) or (C) of 
     section 6(o)(2) to each applicant or recipient who--

       ``(aa) is in the last month of the 6-month period described 
     in section 6(o)(2);
       ``(bb) is not eligible for an exception under section 
     6(o)(3);
       ``(cc) is not eligible for a waiver under section 6(o)(4); 
     and
       ``(dd) is not eligible for an exemption under section 
     6(o)(6).''.
       (b) Rescission of Carryover Funds.--Notwithstanding any 
     other provision of law, funds provided under section 
     16(h)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(h)(1)(A)) for any fiscal year before fiscal year 2002 
     shall cease to be available on the date of enactment of this 
     Act, unless obligated by a State agency before that date.
       (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``except that the State agency may limit 
     such reimbursement to each participant to $25 per month'' and 
     inserting ``except that, in the case of each of fiscal years 
     2002 through 2009, the State agency may limit such 
     reimbursement to each participant to $50 per month''.
       (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``except that such total amount shall not exceed an 
     amount representing $25 per participant per month'' and 
     inserting ``except that, in the case of each of fiscal years 
     2002 through 2009, such total amount shall not exceed an 
     amount representing $50 per participant per month''.
       (e) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 435. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD 
                   DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

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

     SEC. 436. COORDINATION OF PROGRAM INFORMATION EFFORTS.

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

     SEC. 437. EXPANDED GRANT AUTHORITY.

       Section 17(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(a)(1)) is amended--
       (1) by striking ``, by way of making contracts with or 
     grants to public or private organizations or agencies,'' and 
     inserting ``enter into contracts with or make grants to 
     public or private organizations or agencies under this 
     section to''; and
       (2) by adding at the end the following: ``The waiver 
     authority of the Secretary under subsection (b) shall extend 
     to all contracts and grants under this section.''.

     SEC. 438. ACCESS AND OUTREACH PILOT PROJECTS.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Access and Outreach Pilot Projects.--
       ``(1) In general.--The Secretary shall make grants to State 
     agencies and other entities to pay the Federal share of the 
     eligible costs of projects to improve--
       ``(A) access by eligible individuals to benefits under the 
     food stamp program; or
       ``(B) outreach to individuals eligible for those benefits.
       ``(2) Federal share.--The Federal share shall be 75 
     percent.
       ``(3) Types of projects.--To be eligible for a grant under 
     this subsection, a project may consist of--
       ``(A) establishing a single site at which individuals may 
     apply for--
       ``(i) benefits under the food stamp program; and
       ``(ii)(I) supplemental security income benefits under title 
     XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
       ``(II) benefits under the medicaid program under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.);
       ``(III) benefits under the State children's health 
     insurance program under title XXI of the Social Security Act 
     (42 U.S.C. 1397aa et seq.);
       ``(IV) benefits under the special supplemental nutrition 
     program for women, infants, and children under section 17 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786); or
       ``(V) benefits under such other programs as the Secretary 
     determines to be appropriate;
       ``(B) developing forms that allow an individual to apply 
     for more than 1 of the programs referred to in subparagraph 
     (A);
       ``(C) dispatching State agency personnel to conduct 
     outreach and enroll individuals in the food stamp program and 
     other programs in nontraditional venues (such as shopping 
     malls, schools, community centers, county fairs, clinics, 
     food banks, and job training centers);
       ``(D) developing systems to enable increased participation 
     in the provision of benefits under the food stamp program 
     through farmers' markets, roadside stands, and other 
     community-supported agriculture programs, including wireless 
     electronic benefit transfer systems and other systems 
     appropriate to open-air settings where farmers and other 
     vendors sell directly to consumers;
       ``(E) allowing individuals to submit applications for the 
     food stamp program by means of the telephone or the Internet, 
     in particular individuals who live in rural areas, elderly 
     individuals, and individuals with disabilities;
       ``(F) encouraging consumption of fruit and vegetables by 
     developing a cost-effective system

[[Page S1058]]

     for providing discounts for purchases of fruit and vegetables 
     made through use of electronic benefit transfer cards;
       ``(G) reducing barriers to participation by individuals, 
     with emphasis on working families, eligible immigrants, 
     elderly individuals, and individuals with disabilities;
       ``(H) developing training materials, guidebooks, and other 
     resources to improve access and outreach;
       ``(I) conforming verification practices under the food 
     stamp program with verification practices under other 
     assistance programs; and
       ``(J) such other activities as the Secretary determines to 
     be appropriate.
       ``(4) Selection.--
       ``(A) In general.--The Secretary shall develop criteria for 
     selecting recipients of grants under this subsection that 
     include the consideration of--
       ``(i) the demonstrated record of a State agency or other 
     entity in serving low-income individuals;
       ``(ii) the ability of a State agency or other entity to 
     reach hard-to-serve populations;
       ``(iii) the level of innovative proposals in the 
     application of a State agency or other entity for a grant; 
     and
       ``(iv) the development of partnerships between public and 
     private sector entities and linkages with the community.
       ``(B) Preference.--In selecting recipients of grants under 
     paragraph (1), the Secretary shall provide a preference to 
     any applicant that consists of a partnership between a State 
     and a private entity, such as--
       ``(i) a food bank;
       ``(ii) a community-based organization;
       ``(iii) a public school;
       ``(iv) a publicly-funded health clinic;
       ``(v) a publicly-funded day care center; and
       ``(vi) a nonprofit health or welfare agency.
       ``(C) Geographical distribution of recipients.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     shall select, from all eligible applications received, at 
     least 1 recipient to receive a grant under this subsection 
     from--

       ``(I) each region of the Department of Agriculture 
     administering the food stamp program; and
       ``(II) each additional rural or urban area that the 
     Secretary determines to be appropriate.

       ``(ii) Exception.--The Secretary shall not be required to 
     select grant recipients under clause (i) to the extent that 
     the Secretary determines that an insufficient number of 
     eligible grant applications has been received.
       ``(5) Project evaluations.--
       ``(A) In general.--The Secretary shall conduct evaluations 
     of projects funded by grants under this subsection.
       ``(B) Limitation.--Not more than 10 percent of funds made 
     available to carry out this subsection shall be used for 
     project evaluations described in subparagraph (A).
       ``(6) Maintenance of effort.--A State agency or other 
     entity shall provide assurances to the Secretary that funds 
     provided to the State agency or other entity under this 
     subsection will be used only to supplement, not to supplant, 
     the amount of Federal, State, and local funds otherwise 
     expended to carry out access and outreach activities in the 
     State under this Act.
       ``(7) Funding.--There is authorized to be appropriated to 
     carry out this subsection $3,000,000 for the period of fiscal 
     years 2003 through 2005.''.

     SEC. 439. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.

       (a) Consolidated Funding.--Section 19(a)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``the Commonwealth of Puerto Rico'' and 
     inserting ``governmental entities specified in subparagraph 
     (D)'';
       (B) in clause (ii), by striking ``and'' at the end; and
       (C) by striking clause (iii) and all that follows and 
     inserting the following:
       ``(iii) for fiscal year 2002, $1,356,000,000; and
       ``(iv) for each of fiscal years 2003 through 2006, the 
     amount provided in clause (iii), as adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(o)(4) between June 30, 2001, and June 30 of 
     the immediately preceding fiscal year;
     to pay the expenditures for nutrition assistance programs for 
     needy persons as described in subparagraphs (B) and (C).'';
       (2) in subparagraph (B)--
       (A) by striking ``(B) The'' and inserting the following:
       ``(B) Maximum payments to commonwealth of puerto rico.--
       ``(i) In general.--The'';
       (B) by inserting ``of Puerto Rico'' after ``Commonwealth'' 
     each place it appears; and
       (C) by adding at the end the following:
       ``(ii) Exception for expenditures for certain systems.--
     Notwithstanding subparagraph (A) and clause (i), the 
     Commonwealth of Puerto Rico may spend not more than 
     $6,000,000 of the amount required to be paid to the 
     Commonwealth for fiscal year 2002 under subparagraph (A) to 
     pay 100 percent of the costs of--

       ``(I) upgrading and modernizing the electronic data 
     processing system used to carry out nutrition assistance 
     programs for needy persons;
       ``(II) implementing systems to simplify the determination 
     of eligibility to receive that nutrition assistance; and
       ``(III) operating systems to deliver benefits through 
     electronic benefit transfers.''; and

       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay 100 
     percent of the expenditures for a nutrition assistance 
     program extended under section 601(c) of Public Law 96-597 
     (48 U.S.C. 1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and
       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Report to Congress and Increased Authorization.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall develop and submit to Congress a report that--
       (A) describes the similarities and differences (in terms of 
     program administration, rules, benefits, and requirements) 
     between--
       (i) the food stamp program under the Food Stamp Act of 1977 
     (7 U.S.C. 2011 et seq.), other than section 19 of that Act (7 
     U.S.C. 2028); and
       (ii) the program to provide assistance to Puerto Rico under 
     section 19 of that Act (as in effect on the day before the 
     date of enactment of this Act);
       (B) specifies the costs and savings associated with each 
     similarity and difference; and
       (C) states the recommendation of the Comptroller General as 
     to whether additional funding should be provided to carry out 
     section 19 of that Act.
       (2) Increased authorization.--Effective on the date of 
     submission to Congress of the report under paragraph (1), 
     there is authorized to be appropriated to carry out section 
     19 of the Food Stamp Act of 1977 (7 U.S.C. 2028) (in addition 
     to amounts made available to carry out that section under law 
     other than this subsection) $50,000,000 for each fiscal year.
       (3) Limitation.--No amounts may be made available to carry 
     out paragraph (2) unless specifically provided by an 
     appropriation Act.
       (c) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section take effect on October 1, 
     2002.
       (2) Exception for expenditures for certain systems.--The 
     amendments made by subsection (a)(2) take effect on the date 
     of enactment of this Act.

     SEC. 440. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

       Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
     amended--
       (1) in subsection (b)(2)(B), by striking ``2002'' and 
     inserting ``2006'';
       (2) in subsection (d)--
       (A) in paragraph (3), by striking ``or'' at the end; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) encourage long-term planning activities, and 
     multisystem, interagency approaches with multistakeholder 
     collaborations, that build the long-term capacity of 
     communities to address the food and agriculture problems of 
     the communities, such as food policy councils and food 
     planning associations; or
       ``(5) meet, as soon as practicable through the provision of 
     grants of not to exceed $25,000 each, specific neighborhood, 
     local, or State food and agriculture needs, including needs 
     for--
       ``(A) infrastructure improvement and development (including 
     the purchase of equipment necessary for the production, 
     handling, or marketing of locally produced food);
       ``(B) planning for long-term solutions; or
       ``(C) the creation of innovative marketing activities that 
     mutually benefit farmers and low-income consumers.''; and
       (3) in subsection (e)(1), by striking ``50'' and inserting 
     ``75''.

     SEC. 441. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                   ASSISTANCE PROGRAM.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``1997 through 2002'' and inserting ``2002 
     through 2006''; and
       (B) by striking ``$100,000,000'' and inserting 
     ``$110,000,000''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--
       ``(1) In general.--For each of fiscal years 2002 through 
     2006, the Secretary shall use $10,000,000 of the funds made 
     available under subsection (a) to pay the direct and indirect 
     costs of States relating to the processing, storing, 
     transporting, and distributing to eligible recipient agencies 
     of--
       ``(A) commodities purchased by the Secretary under 
     subsection (a); and
       ``(B) commodities acquired from other sources, including 
     commodities acquired by gleaning (as defined in section 
     111(a) of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
     note; Public Law 100-435)).
       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 442. USE OF APPROVED FOOD SAFETY TECHNOLOGY.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) (as amended by section 441) is amended by 
     adding at the end the following:
       ``(d) Use of Approved Food Safety Technology.--
       ``(1) In general.--In acquiring commodities for 
     distribution through a program specified in paragraph (2), 
     the Secretary shall not prohibit the use of any technology to 
     improve food safety that has been approved by the Secretary 
     or the Secretary of Health and Human Services.
       ``(2) Programs.--A program referred to in paragraph (1) is 
     a program authorized under--
       ``(A) this Act;

[[Page S1059]]

       ``(B) the Agriculture and Consumer Protection Act of 1973 
     (7 U.S.C. 612c note; Public Law 93-86);
       ``(C) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.);
       ``(D) the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.); or
       ``(E) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.).''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 443. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY 
                   PROBLEMS.

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

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

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

     SEC. 444. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

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

     SEC. 445. VITAMIN AND MINERAL SUPPLEMENTS.

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

                  Subtitle B--Miscellaneous Provisions

     SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

       (a) Commodity Distribution Program.--Section 4(a) of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended in the first sentence 
     by striking ``2002'' and inserting ``2006''.
       (b) Commodity Supplemental Food Program.--Section 5 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Grants Per Assigned Caseload Slot.--
       ``(1) In general.--In carrying out the program under 
     section 4 (referred to in this section as the `commodity 
     supplemental food program'), for each of fiscal years 2003 
     through 2006, the Secretary shall provide to each State 
     agency from funds made available to carry out that section 
     (including any such funds remaining available from the 
     preceding fiscal year), a grant per assigned caseload slot 
     for administrative costs incurred by the State agency and 
     local agencies in the State in operating the commodity 
     supplemental food program.
       ``(2) Amount of grants.--
       ``(A) Fiscal year 2003.--For fiscal year 2003, the amount 
     of each grant per caseload slot shall be equal to $50, 
     adjusted by the percentage change between--
       ``(i) the value of the State and local government price 
     index, as published by the Bureau of Economic Analysis of the 
     Department of Commerce, for the 12-month period ending June 
     30, 2001; and
       ``(ii) the value of that index for the 12-month period 
     ending June 30, 2002.
       ``(B) Fiscal years 2004 through 2006.--For each of fiscal 
     years 2004 through 2006, the amount of each grant per 
     caseload slot shall be equal to the amount of the grant per 
     caseload slot for the preceding fiscal year, adjusted by the 
     percentage change between--
       ``(i) the value of the State and local government price 
     index, as published by the Bureau of Economic Analysis of the 
     Department of Commerce, for the 12-month period ending June 
     30 of the second preceding fiscal year; and
       ``(ii) the value of that index for the 12-month period 
     ending June 30 of the preceding fiscal year.'';
       (2) in subsection (d)(2), by striking ``2002'' each place 
     it appears and inserting ``2006''; and
       (3) by striking subsection (l).
       (c) Distribution of Surplus Commodities to Special 
     Nutrition Projects.--Section 1114(a)(2)(A) of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 
     first sentence by striking ``2002'' and inserting ``2006''.
       (d) Emergency Food Assistance.--Section 204(a)(1) of the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
     is amended in the first sentence--
       (1) by striking ``2002'' and inserting ``2006'';
       (2) by striking ``administrative''; and
       (3) by inserting ``storage,'' after ``processing,''.

     SEC. 452. PARTIAL RESTORATION OF BENEFITS TO LEGAL 
                   IMMIGRANTS.

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

[[Page S1060]]

     16, in the case of the specified Federal program described in 
     section 402(a)(3)(B) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(3)(B)))''.
       (B) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or 16, in the case of the specified Federal program 
     described in section 402(a)(3)(B))''.
       (c) Restoration of Benefits to Refugees and Asylees.--
     Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended--
       (1) in subparagraph (A), by striking ``programs described 
     in paragraph (3)'' and inserting ``program described in 
     paragraph (3)(A)''; and
       (2) by adding at the end the following:
       ``(L) Food stamp exception for refugees and asylees.--With 
     respect to eligibility for benefits for the specified Federal 
     program described in paragraph (3)(B), paragraph (1) shall 
     not apply to an alien with respect to which an action 
     described in subparagraph (A) was taken and was not 
     revoked.''.
       (d) Restoration of Benefits to Disabled Aliens.--Section 
     402(a)(2)(F) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(F)) is amended by striking ``(i) was'' and all 
     that follows through ``(II) in the case'' and inserting the 
     following:
       ``(i) in the case of the specified Federal program 
     described in paragraph (3)(A)--

       ``(I) was lawfully residing in the United States on August 
     22, 1996; and
       ``(II) is blind or disabled, as defined in paragraph (2) or 
     (3) of section 1614(a) of the Social Security Act (42 U.S.C. 
     1382c(a)); and

       ``(ii) in the case''.

     SEC. 453. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

       (a) In General.--Section 6(e)(1)(B) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) 
     is amended by striking ``2001'' and inserting ``2003''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 454. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) is amended by 
     adding at the end the following:
       ``(7) Exclusion of certain military housing allowances.--
     For each of fiscal years 2002 and 2003, the amount of a basic 
     allowance provided under section 403 of title 37, United 
     States Code, on behalf of a member of a uniformed service for 
     housing that is acquired or constructed under subchapter IV 
     of chapter 169 of title 10, United States Code, or any 
     related provision of law, shall not be considered to be 
     income for the purpose of determining the eligibility of a 
     child who is a member of the household of the member of a 
     uniformed service for free or reduced price lunches under 
     this Act.''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 455. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL 
                   SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       (a) In General.--Section 17(d)(2)(B)(i) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(B)(i)) is 
     amended--
       (1) by striking ``basic allowance for housing'' and 
     inserting the following: ``basic allowance--

       ``(I) for housing'';

       (2) by striking ``and'' at the end and inserting ``or''; 
     and
       (3) by adding at the end the following:

       ``(II) provided under section 403 of title 37, United 
     States Code, for housing that is acquired or constructed 
     under subchapter IV of chapter 169 of title 10, United States 
     Code, or any related provision of law; and''.

       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 456. REPORT ON CONVERSION OF WIC PROGRAM INTO AN 
                   INDIVIDUAL ENTITLEMENT PROGRAM.

       (a) Findings.--Congress finds that the special supplemental 
     nutrition program for woman, infants, and children 
     established by section 17 of the Child Nutrition Act of 1966 
     (42 U.S.C. 1786) (referred to in this section as the `WIC 
     program')--
       (1) safeguards the health of low-income pregnant, 
     postpartum, and breast-feeding women, infants, and children 
     up to 5 years of age who are at nutritional risk through the 
     delivery of individualized food packages, nutrition 
     education, and health referrals;
       (2) is associated with a variety of desirable outcomes, 
     including lower incidence of infant mortality, reduced 
     prevalence of very low birth weights, improved nutrient 
     intake among children, improved cognitive development among 
     children, and lower Medicaid costs for women who participate;
       (3) is recognized generally as a leading national health 
     and nutrition program;
       (4) as a discretionary program, can have inappropriate 
     funding because funding levels must be determined early in 
     the year by the President and the Committees on 
     Appropriations of the House of Representatives and the Senate 
     (referred to in this subsection as the ``Committees'');
       (5) can have funding shortfalls in some years because the 
     economy worsens between the time that funding levels are 
     established and the fiscal year is underway;
       (6) may have to deny service or reduce benefits to eligible 
     women, infants, and children in some States as a result of 
     these funding shortfalls;
       (7) may be provided with more funding than is required in 
     those years in which the economy improves between the time 
     that funding levels are established and the fiscal year is 
     underway, with the result that the President and the 
     Committees will have committed funds to the WIC program that 
     could have been devoted to other priorities; and
       (8) would not have this funding uncertainty if the WIC 
     program were an entitlement program that provided benefits to 
     every eligible woman, infant, and child seeking benefits.
       (b) Report.--Not later than December 31, 2002, the 
     Secretary of Agriculture shall submit to the Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Agriculture, Nutrition and Forestry of 
     the Senate a report that analyzes the conversion of the WIC 
     program from a discretionary program into an individual 
     entitlement program.
       (c) Contents.--The report shall--
       (1) analyze the conversion of the WIC program into an 
     individual entitlement program, rather than a capped 
     entitlement program for States;
       (2) analyze the conversion using at least 3 separate 
     scenarios, including--
       (A) 1 scenario under which the costs to the Federal 
     Government approximate current projected funding levels;
       (B) 1 scenario under which the costs to the Federal 
     Government approximate current projected funding levels plus 
     5 percent; and
       (C) 1 scenario under which the costs to the Federal 
     Government approximate current projected funding levels plus 
     7 percent; and
       (3) address--
       (A) the levels at which, and manner by which, States will 
     be reimbursed for food package costs and administrative 
     costs;
       (B) how current cost containment savings will be preserved;
       (C) how reimbursement rates will be adjusted annually to 
     reflect inflation or other factors affecting food prices;
       (D) how program benefits and services will be affected by 
     the conversion to an individual entitlement program; and
       (E) any other issues that arise from converting the WIC 
     program to an individual entitlement program, as determined 
     by the Secretary of Agriculture.
       (d) Consultation.--In preparing the report, the Secretary 
     of Agriculture shall consult with--
       (1) the Committee on Education and the Workforce of the 
     House of Representatives;
       (2) the Committee on Agriculture, Nutrition and Forestry of 
     the Senate;
       (3) membership organizations representing State directors 
     and local agencies administering the WIC program;
       (4) Governors and other State officials;
       (5) research and policy organizations that have a history 
     of carrying out activities on issues affecting the WIC 
     program; and
       (6) advocacy organizations representing the needs of the 
     population that is eligible to participate in the WIC 
     program.
       (e) Funding.--Notwithstanding any other provision of law, 
     the Secretary shall carry out this section using funds made 
     available for necessary expenses to carry out the WIC 
     program.

     SEC. 457. COMMODITY DONATIONS.

       The Commodity Distribution Reform Act and WIC Amendments of 
     1987 (7 U.S.C. 612c note; Public Law 100-237) is amended--
       (1) by redesignating sections 17 and 18 as sections 18 and 
     19, respectively; and
       (2) by inserting after section 16 the following:

     ``SEC. 17. COMMODITY DONATIONS.

       ``(a) In General.--Notwithstanding any other provision of 
     law concerning commodity donations, any commodities acquired 
     in the conduct of the operations of the Commodity Credit 
     Corporation and any commodities acquired under section 32 of 
     the Act of August 24, 1935 (7 U.S.C. 612c), to the extent 
     that the commodities are in excess of the quantities of 
     commodities needed to carry out other authorized activities 
     of the Commodity Credit Corporation and the Secretary 
     (including any quantity specifically reserved for a specific 
     purpose), may be used for any program authorized to be 
     carried out by the Secretary that involves the acquisition of 
     commodities for use in a domestic feeding program, including 
     any program conducted by the Secretary that provides 
     commodities to individuals in cases of hardship.
       ``(b) Programs.--A program described in subsection (a) 
     includes a program authorized by--
       ``(1) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.);
       ``(2) the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.);
       ``(3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.);
       ``(4) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.); or
       ``(5) such other laws as the Secretary determines to be 
     appropriate.''.

     SEC. 458. PURCHASES OF LOCALLY PRODUCED FOODS.

       (a) In General.--The Secretary of Agriculture shall--
       (1) encourage institutions participating in the national 
     school lunch program authorized under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
     school breakfast program established by section 4 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1773) to purchase, in 
     addition to other food purchases, locally produced foods for 
     school meal programs to the maximum extent practicable and 
     appropriate;
       (2) advise institutions participating in a program 
     described in paragraph (1) of the policy described in that 
     paragraph and post information concerning the policy on the 
     website maintained by the Secretary; and
       (3) in accordance with requirements established by the 
     Secretary, provide start-up grants to not more than 200 
     institutions to defray the

[[Page S1061]]

     initial costs of equipment, materials, and storage 
     facilities, and similar costs, incurred in carrying out the 
     policy described in paragraph (1).
       (b) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $400,000 for each of fiscal years 2002 
     through 2006.
       (2) Limitation.--No amounts may be made available to carry 
     out this section unless specifically provided by an 
     appropriation Act.

     SEC. 459. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purpose.--The purpose of the seniors farmers' 
     market nutrition program is to provide to low-income seniors 
     resources in the form of fresh, nutritious, unprepared, 
     locally grown fruits, vegetables, and herbs from farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.
       (e) Authority.--The authority provided by this section is 
     in addition to, and not in lieu of, the authority of the 
     Secretary of Agriculture to carry out any similar program 
     under the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714 et seq.).

     SEC. 460. FARMERS' MARKET NUTRITION PROGRAM.

       Section 17(m)(9) of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786(m)(9)) is amended--
       (1) by striking ``(9)(A) There'' and inserting the 
     following:
       ``(9) Funding.--
       ``(A) In general.--
       ``(i) Authorization of appropriations.--There''; and
       (2) in subparagraph (A), by adding at the end the 
     following:
       ``(ii) Mandatory funding.--

       ``(I) In general.--Not later than 30 days after the date of 
     enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2001, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this subsection 
     $15,000,000.
       ``(II) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subclause (I), 
     without further appropriation.''.

     SEC. 461. FRUIT AND VEGETABLE PILOT PROGRAM.

       (a) In General.--In the school year beginning July 2002, 
     the Secretary of Agriculture shall use funds made available 
     under section 32 of the Act of August 24, 1935 (7 U.S.C. 
     612c), to conduct a pilot program to make available to 
     students, in 25 elementary or secondary schools in each of 4 
     States, and in elementary or secondary schools on 1 Indian 
     reservation, free fruits and vegetables throughout the school 
     day in--
       (1) a cafeteria;
       (2) a student lounge; or
       (3) another designated room of the school.
       (b) Publicity.--A school that participates in the pilot 
     program shall widely publicize within the school the 
     availability of free fruits and vegetables under the pilot 
     program.
       (c) Evaluation of Pilot Program.--
       (1) In general.--Not later than 1 year after the 
     implementation of the pilot program required by subsection 
     (a), the Secretary (acting through the Economic Research 
     Service) shall submit to the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate an 
     evaluation of the results of the pilot program to determine--
       (A) whether students took advantage of the pilot program;
       (B) whether interest in the pilot program increased or 
     lessened over time;
       (C) what effect, if any, the pilot program had on vending 
     machine sales; and
       (D) what effect, if any, the pilot program had on the sale 
     of meals served under the Child Nutrition Act of 1966 (42 
     U.S.C. 1771 et seq.) and the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1751 et seq.).
       (2) Funding.--The Secretary shall use $200,000 of the funds 
     described in subsection (a) to carry out the evaluation under 
     this subsection.

     SEC. 462. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2002''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and
       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.
       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex 
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

       (I) 2 members appointed by the Speaker of the House of 
     Representatives.
       (II) 1 member appointed by the minority leader of the House 
     of Representatives.
       (III) 2 members appointed by the majority leader of the 
     Senate.
       (IV) 1 member appointed by the minority leader of the 
     Senate.

       (iii) Nonvoting member.--The Executive Director of the 
     Program shall serve as a nonvoting ex officio member of the 
     Board.
       (B) Terms.--
       (i) In general.--Each member of the Board shall serve for a 
     term of 4 years.
       (ii) Incomplete term.--If a member of the Board does not 
     serve the full term of the member, the individual appointed 
     to fill the resulting vacancy shall be appointed for the 
     remainder of the term of the predecessor of the individual.
       (C) Vacancy.--A vacancy on the Board--
       (i) shall not affect the powers of the Board; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (D) Chairperson.--As the first order of business of the 
     first meeting of the Board, the members shall elect a 
     Chairperson.
       (E) Compensation.--
       (i) In general.--Subject to clause (ii), a member of the 
     Board shall not receive compensation for service on the 
     Board.
       (ii) Travel.--A member of the Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the Board.
       (3) Duties.--
       (A) Bylaws.--
       (i) Establishment.--The Board shall establish such bylaws 
     and other regulations as are appropriate to enable the Board 
     to carry out this section, including the duties described in 
     this paragraph.
       (ii) Contents.--Bylaws and other regulations established 
     under clause (i) shall include provisions--

       (I) for appropriate fiscal control, accountability for 
     funds, and operating principles;
       (II) to prevent any conflict of interest, or the appearance 
     of any conflict of interest, in--

       (aa) the procurement and employment actions taken by the 
     Board or by any officer or employee of the Board; and
       (bb) the selection and placement of individuals in the 
     fellowships developed under the Program;

       (III) for the resolution of a tie vote of the members of 
     the Board; and
       (IV) for authorization of travel for members of the Board.

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.

[[Page S1062]]

       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

       (I) training in direct service to the hungry in conjunction 
     with community-based organizations through a program of field 
     placement; and
       (II) experience in policy development through placement in 
     a governmental entity or nonprofit organization.

       (ii) Focus.--

       (I) Bill emerson hunger fellowship.--The Bill Emerson 
     Hunger Fellowship shall address hunger and other humanitarian 
     needs in the United States.
       (II) Mickey leland hunger fellowship.--The Mickey Leland 
     Hunger Fellowship shall address international hunger and 
     other humanitarian needs.

       (iii) Work plan.--To carry out clause (i) and to assist in 
     the evaluation of the fellowships under paragraph (4), the 
     Program shall, for each fellow, approve a work plan that 
     identifies the target objectives for the fellow in the 
     fellowship, including the specific duties and 
     responsibilities relating to the objectives.
       (C) Period of fellowship.--
       (i) Emerson fellowship.--A Bill Emerson Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 1 year.
       (ii) Leland fellowship.--A Mickey Leland Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 2 years, of which not less than 1 year shall be 
     dedicated to fulfilling the requirement of subparagraph 
     (B)(i)(I).
       (D) Selection of fellows.--
       (i) In general.--A fellowship shall be awarded through a 
     nationwide competition established by the Program.
       (ii) Qualification.--A successful applicant shall be an 
     individual who has demonstrated--

       (I) an intent to pursue a career in humanitarian service 
     and outstanding potential for such a career;
       (II) leadership potential or leadership experience;
       (III) diverse life experience;
       (IV) proficient writing and speaking skills;
       (V) an ability to live in poor or diverse communities; and
       (VI) such other attributes as the Board determines to be 
     appropriate.

       (iii) Amount of award.--

       (I) In general.--Each individual awarded a fellowship under 
     this paragraph shall receive a living allowance and, subject 
     to subclause (II), an end-of-service award as determined by 
     the Program.
       (II) Requirement for successful completion of fellowship.--
     Each individual awarded a fellowship under this paragraph 
     shall be entitled to receive an end-of-service award at an 
     appropriate rate for each month of satisfactory service as 
     determined by the Executive Director.

       (iv) Recognition of fellowship award.--

       (I) Emerson fellow.--An individual awarded a Bill Emerson 
     Hunger Fellowship shall be known as an ``Emerson Fellow''.
       (II) Leland fellow.--An individual awarded a Mickey Leland 
     Hunger Fellowship shall be known as a ``Leland Fellow''.

       (4) Evaluations.--
       (A) In general.--The Program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships.
       (B) Required elements.--Each evaluation shall include--
       (i) an assessment of the successful completion of the work 
     plan of each fellow;
       (ii) an assessment of the impact of the fellowship on the 
     fellows;
       (iii) an assessment of the accomplishment of the purposes 
     of the Program; and
       (iv) an assessment of the impact of each fellow on the 
     community.
       (g) Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Congressional 
     Hunger Fellows Trust Fund'', consisting of--
       (A) amounts appropriated to the Fund under subsection (k);
       (B) any amounts earned on investment of amounts in the Fund 
     under paragraph (2); and
       (C) amounts received under subsection (i)(3)(A).
       (2) Investment of amounts.--
       (A) In general.--
       (i) Authority to invest.--The Secretary of the Treasury 
     shall invest such portion of the Fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals.
       (ii) Types of investments.--Each investment may be made 
     only in an interest-bearing obligation of the United States 
     or an obligation guaranteed as to principal and interest by 
     the United States that, as determined by the Secretary of the 
     Treasury in consultation with the Board, has a maturity 
     suitable for the Fund.
       (B) Acquisition of obligations.--For the purpose of 
     investments under subparagraph (A), obligations may be 
     acquired--
       (i) on original issue at the issue price; or
       (ii) by purchase of outstanding obligations at the market 
     price.
       (C) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (D) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (h) Expenditures; Audits.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the Program from the amounts described in 
     subsections (g)(2)(D) and (i)(3)(A) such sums as the Board 
     determines to be necessary to enable the Program to carry out 
     this section.
       (2) Limitation.--The Secretary may not transfer to the 
     Program the amounts appropriated to the Fund under subsection 
     (k).
       (3) Use of funds.--Funds transferred to the Program under 
     paragraph (1) shall be used--
       (A) to provide a living allowance for the fellows;
       (B) to defray the costs of transportation of the fellows to 
     the fellowship placement sites;
       (C) to defray the costs of appropriate insurance of the 
     fellows, the Program, and the Board;
       (D) to defray the costs of preservice and midservice 
     education and training of fellows;
       (E) to pay staff described in subsection (i);
       (F) to make end-of-service awards under subsection 
     (f)(3)(D)(iii)(II); and
       (G) for such other purposes as the Board determines to be 
     appropriate to carry out the Program.
       (4) Audit by comptroller general.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct an annual audit of the accounts of the 
     Program.
       (B) Books.--The Program shall make available to the 
     Comptroller General all books, accounts, financial records, 
     reports, files, and other papers, things, or property 
     belonging to or in use by the Program and necessary to 
     facilitate the audit.
       (C) Report to congress.--The Comptroller General shall 
     submit to the appropriate congressional committees a copy of 
     the results of each audit under subparagraph (A).
       (i) Staff; Powers of Program.--
       (1) Executive director.--
       (A) In general.--The Board shall appoint an Executive 
     Director of the Program who shall--
       (i) administer the Program; and
       (ii) carry out such other functions consistent with this 
     section as the Board shall prescribe.
       (B) Restriction.--The Executive Director may not serve as 
     Chairperson of the Board.
       (C) Compensation.--The Executive Director shall be paid at 
     a rate not to exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (2) Staff.--
       (A) In general.--With the approval of a majority of the 
     Board, the Executive Director may appoint and fix the pay of 
     such additional personnel as the Executive Director considers 
     necessary to carry out this section.
       (B) Compensation.--An individual appointed under 
     subparagraph (A) shall be paid at a rate not to exceed the 
     rate payable for level GS-15 of the General Schedule.
       (3) Powers.--
       (A) Gifts.--
       (i) In general.--The Program may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of aiding 
     or facilitating the work of the Program.
       (ii) Use of gifts.--Gifts, bequests, or devises of money 
     and proceeds from sales of other property received as gifts, 
     bequests, or devises shall--

       (I) be deposited in the Fund; and
       (II) be available for disbursement on order of the Board.

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract

[[Page S1063]]

     with and compensate Government and private agencies or 
     persons without regard to section 3709 of the Revised 
     Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 463. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

       (a) Establishment.--The Secretary of Agriculture may 
     establish, in not more than 15 States, a pilot program to 
     increase the domestic consumption of fresh fruits and 
     vegetables.
       (b) Purpose.--The purpose of the program shall be to 
     provide funds to States to assist eligible public and private 
     sector entities with cost-share assistance to carry out 
     demonstration projects--
       (1) to increase fruit and vegetable consumption; and
       (2) to convey related health promotion messages.
       (c) Priority.--To the maximum extent practicable, the 
     Secretary shall--
       (1) establish the program in States in which the production 
     of fruits or vegetables is a significant industry, as 
     determined by the Secretary; and
       (2) base the program on strategic initiatives, including--
       (A) health promotion and education interventions;
       (B) public service and paid advertising or marketing 
     activities;
       (C) health promotion campaigns relating to locally grown 
     fruits and vegetables; and
       (D) social marketing campaigns.
       (d) Participant Eligibility.--In selecting States to 
     participate in the program, the Secretary shall take into 
     consideration, with respect to projects and activities 
     proposed to be carried out by the State under the program--
       (1) experience in carrying out similar projects or 
     activities;
       (2) innovation; and
       (3) the ability of the State--
       (A) to conduct marketing campaigns for, promote, and track 
     increases in levels of, produce consumption; and
       (B) to optimize the availability of produce through 
     distribution of produce.
       (e) Federal Share.--The Federal share of the cost of any 
     project or activity carried out using funds provided under 
     this section shall be 50 percent.
       (f) Use of Funds.--Funds made available to carry out this 
     section shall not be made available to any foreign for-profit 
     corporation.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2002 through 2006.

     SEC. 464. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title take effect on September 1, 2002, except 
     that a State agency may, at the option of the State agency, 
     elect not to implement any or all of the amendments until 
     October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 501. DIRECT LOANS.

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

     SEC. 502. FINANCING OF BRIDGE LOANS.

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

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

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

     SEC. 504. JOINT FINANCING ARRANGEMENTS.

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

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

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

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

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

     SEC. 507. DOWN PAYMENT LOAN PROGRAM.

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

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

       Subtitle A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1922 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES 
                   PROGRAM.

       ``(a) In General.--Not later than October 1, 2002, the 
     Secretary shall carry out a pilot program in not fewer than 
     10 geographically dispersed States, as determined by the 
     Secretary, to guarantee up to 5 loans per State in each of 
     fiscal years 2003 through 2006 made by a private seller of a 
     farm or ranch to a qualified beginning farmer or rancher on a 
     contract land sale basis, if the loan meets applicable 
     underwriting criteria and a commercial lending institution 
     agrees to serve as escrow agent.
       ``(b) Date of Commencement of Program.--The Secretary shall 
     commence the pilot program on making a determination that 
     guarantees of contract land sales present a risk that is 
     comparable with the risk presented in the case of guarantees 
     to commercial lenders.''.

                      Subtitle B--Operating Loans

     SEC. 511. DIRECT LOANS.

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

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

       (a) Amount of Guarantee of Loans for Tribal Operations.--
     Section 309(h) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929(h)) is amended--
       (1) in paragraph (4), by striking ``paragraphs (5) and 
     (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
       (2) by adding at the end the following:
       ``(7) Amount of guarantee of loans for tribal operations.--
     In the case of an operating loan made to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)), the Secretary shall guarantee 95 percent 
     of the loan.''.
       (b) Waiver of Limitations.--Section 311(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941(c)) is amended--
       (1) in paragraph (1), by striking ``paragraph (3)'' and 
     inserting ``paragraphs (3) and (4)''; and
       (2) by adding at the end the following:
       ``(4) Waivers.--
       ``(A) Tribal farm and ranch operations.--The Secretary 
     shall waive the limitation under paragraph (1)(C) or (3) for 
     a direct loan made under this subtitle to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)) if the Secretary determines that commercial 
     credit is not generally available for such farm or ranch 
     operations.

[[Page S1064]]

       ``(B) Other farm and ranch operations.--On a case-by-case 
     determination not subject to administrative appeal, the 
     Secretary may grant a borrower a waiver, 1 time only for a 
     period of 2 years, of the limitation under paragraph (1)(C) 
     or (3) for a direct operating loan if the borrower 
     demonstrates to the satisfaction of the Secretary that--
       ``(i) the borrower has a viable farm or ranch operation;
       ``(ii) the borrower applied for commercial credit from at 
     least 2 commercial lenders;
       ``(iii) the borrower was unable to obtain a commercial loan 
     (including a loan guaranteed by the Secretary); and
       ``(iv) the borrower successfully has completed, or will 
     complete within 1 year, borrower training under section 359 
     (from which requirement the Secretary shall not grant a 
     waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

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

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

     SEC. 522. DEBT SETTLEMENT.

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

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

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

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

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

     SEC. 525. ANNUAL REVIEW OF BORROWERS.

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

     SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

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

     SEC. 527. INVENTORY PROPERTY.

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

     SEC. 528. DEFINITIONS.

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

     SEC. 529. LOAN AUTHORIZATION LEVELS.

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

     SEC. 530. INTEREST RATE REDUCTION PROGRAM.

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

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

       (a) In General.--Section 353(e)(7) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2001(e)(7)) is amended--
       (1) in subparagraph (C), by redesignating clauses (i) and 
     (ii) as subclauses (I) and (II), respectively, and adjusting 
     the margins appropriately;
       (2) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and adjusting the 
     margins appropriately;
       (3) by striking the paragraph heading and inserting the 
     following:
       ``(7) Options for satisfaction of obligation to pay 
     recapture amount.--
       ``(A) In general.--As an alternative to repaying the full 
     recapture amount at the end of the term of the shared 
     appreciation agreement (as determined by the Secretary in 
     accordance with this subsection), a borrower may satisfy the 
     obligation to pay the amount of recapture by--
       ``(i) financing the recapture payment in accordance with 
     subparagraph (B); or
       ``(ii) granting the Secretary an agricultural use 
     protection and conservation easement on the property subject 
     to the shared appreciation agreement in accordance with 
     subparagraph (C).

[[Page S1065]]

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

     SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION 
                   REQUIREMENT.

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

     SEC. 533. ANNUAL REVIEW OF BORROWERS.

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

                        Subtitle D--Farm Credit

     SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

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

     SEC. 542. BANKS FOR COOPERATIVES.

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

     SEC. 543. INSURANCE CORPORATION PREMIUMS.

       (a) Reduction in Premiums for GSE-Guaranteed Loans.--
       (1) In general.--Section 5.55 of the Farm Credit Act of 
     1971 (12 U.S.C. 2277a-4) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) in subparagraph (A), by striking ``government-
     guaranteed loans provided for in subparagraph (C)'' and 
     inserting ``loans provided for in subparagraphs (C) and 
     (D)'';
       (II) in subparagraph (B), by striking ``and'' at the end;
       (III) in subparagraph (C), by striking the period at the 
     end and inserting ``; and''; and
       (IV) by adding at the end the following:

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

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

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

                     Subtitle E--General Provisions

     SEC. 551. INAPPLICABILITY OF FINALITY RULE.

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

[[Page S1066]]

     a committee, under the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.).''.

     SEC. 552. TECHNICAL AMENDMENTS.

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

     SEC. 553. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b) and 
     section 543(b), this title and the amendments made by this 
     title take effect on October 1, 2001.
       (b) Board of Directors of the Federal Agricultural Mortgage 
     Corporation.--The amendments made by section 544 take effect 
     on the date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

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

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

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

     ``SEC. 383A. SHORT TITLE.

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

     ``SEC. 383B. PURPOSE.

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

     ``SEC. 383C. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authorized private investor.--The term `authorized 
     private investor' means an individual, legal entity, or 
     affiliate or subsidiary of an individual or legal entity 
     that--
       ``(A) is eligible to receive a loan guarantee under this 
     title;
       ``(B) is eligible to receive a loan guarantee under the 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.);
       ``(C) is created under the National Consumer Cooperative 
     Bank Act (12 U.S.C. 3011 et seq.);
       ``(D) is an insured depository institution subject to 
     section 383E(b)(2);
       ``(E) is a Farm Credit System institution described in 
     section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2002(a)); or
       ``(F) is determined by the Board to be an appropriate 
     investor in the Fund.
       ``(2) Board.--The term `Board' means the board of directors 
     of the Fund established under section 383G.
       ``(3) Fund.--The term `Fund' means the National Rural 
     Cooperative and Business Equity Fund established under 
     section 383D.
       ``(4) Group of similar authorized private investors.--The 
     term `group of similar investors' means any 1 of the 
     following:
       ``(A) Insured depository institutions with total assets of 
     more than $250,000,000.
       ``(B) Insured depository institutions with total assets 
     equal to or less than $250,000,000.
       ``(C) Farm Credit System institutions described in section 
     1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
       ``(D) Cooperative financial institutions (other than Farm 
     Credit System institutions).
       ``(E) Private investors, other than those described in 
     subparagraphs (A) through (D), authorized by the Secretary.
       ``(F) Other nonprofit organizations, including credit 
     unions.
       ``(5) Insured depository institution.--The term `insured 
     depository institution' means any bank or savings association 
     the deposits of which are insured under the Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.).
       ``(6) Rural business.--The term `rural business' means a 
     rural cooperative, a value-added agricultural enterprise, or 
     any other business located or locating in a rural area.

     ``SEC. 383D. ESTABLISHMENT.

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

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

       ``(a) In General.--Of the funds made available under 
     section 383H, the Secretary shall--
       ``(1) subject to subsection (b)(1), make available to the 
     Fund $150,000,000;
       ``(2) subject to subsection (c), guarantee 50 percent of 
     each investment made by an authorized private investor in the 
     Fund; and
       ``(3) subject to subsection (d), guarantee the repayment of 
     principal of, and accrued interest on, debentures issued by 
     the Fund to authorized private investors.
       ``(b) Private Investment.--
       ``(1) Matching requirement.--Under subsection (a)(1), the 
     Secretary shall make an amount available to the Fund only 
     after an equal amount has been invested in the Fund by 
     authorized private investors in accordance with this subtitle 
     and the terms and conditions set forth in the bylaws of the 
     Fund.
       ``(2) Insured depository institutions.--
       ``(A) In general.--Subject to subparagraphs (B) and (C)--
       ``(i) an insured depository institution may be an 
     authorized private investor in the Fund; and
       ``(ii) an investment in the Fund may be considered to be 
     part of the record of an institution in meeting the credit 
     needs of the community in which the institution is located 
     under any applicable Federal law.
       ``(B) Investment limit.--The total investment in the Fund 
     of an insured depository institution shall not exceed 5 
     percent of the capital and surplus of the institution.
       ``(C) Regulatory authority.--An appropriate Federal banking 
     agency may, by regulation or order, impose on any insured 
     depository institution investing in the Fund, any safeguard, 
     limitation, or condition (including an investment limit that 
     is lower than the investment limit under subparagraph (B)) 
     that the Federal banking agency considers to be appropriate 
     to ensure that the institution operates--
       ``(i) in a financially sound manner; and
       ``(ii) in compliance with all applicable law.
       ``(c) Guarantee of Private Investments.--
       ``(1) In general.--The Secretary shall guarantee, under 
     terms and conditions determined by the Secretary, 50 percent 
     of any loss of the principal of an investment made in the 
     Fund by an authorized private investor.
       ``(2) Maximum total guarantee.--The aggregate potential 
     liability of the Secretary with respect to all guarantees 
     under paragraph (1) shall not apply to more than $300,000,000 
     in private investments in the Fund.
       ``(3) Redemption of guarantee.--
       ``(A) Date.--An authorized private investor in the Fund may 
     redeem a guarantee under paragraph (1), with respect to the 
     total investments in the Fund and the total losses of the 
     authorized private investor as of the date of redemption--
       ``(i) on the date that is 5 years after the date of the 
     initial investment by the authorized private investor; or
       ``(ii) annually thereafter.
       ``(B) Effect of redemption.--On redemption of a guarantee 
     under subparagraph (A)--
       ``(i) the shares in the Fund of the authorized private 
     investor shall be redeemed; and
       ``(ii) the authorized private investor shall be prohibited 
     from making any future investment in the Fund.
       ``(d) Debt Securities.--
       ``(1) In general.--The Fund may, at the discretion of the 
     Board, generate additional capital through--
       ``(A) the issuance of debt securities; and
       ``(B) other means determined to be appropriate by the 
     Board.
       ``(2) Guarantee of debt by secretary.--
       ``(A) In general.--The Secretary shall guarantee 100 
     percent of the principal of, and accrued interest on, 
     debentures issued by the Fund that are approved by the 
     Secretary.
       ``(B) Maximum debt guaranteed by secretary.--The 
     outstanding value of debentures issued by the Fund and 
     guaranteed by the Secretary shall not exceed the lesser of--
       ``(i) the amount equal to twice the value of the assets 
     held by the Fund; or
       ``(ii) $500,000,000.
       ``(C) Recapture of guarantee payments.--If the Secretary 
     makes a payment on a debt security issued by the Fund as a 
     result of a guarantee of the Secretary under this paragraph, 
     the Secretary shall have priority over other creditors for 
     repayment of the debt security.
       ``(3) Authorized private investors.--An authorized private 
     investor may purchase debt securities issued by the Fund.

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

       ``(a) Investments.--
       ``(1) In general.--
       ``(A) Types.--Subject to subparagraphs (B) and (C), the 
     Fund may--

[[Page S1067]]

       ``(i) make equity investments in a rural business that 
     meets--

       ``(I) the requirements of paragraph (6); and
       ``(II) such other requirements as the Board may establish; 
     and

       ``(ii) extend credit to the rural business in--

       ``(I) the form of mezzanine debt or subordinated debt; or
       ``(II) any other form of quasi-equity.

       ``(B) Limitations on investments.--
       ``(i) Total investments by a single rural business.--
     Subject to clause (ii), investment by the Fund in a single 
     rural business shall not exceed the greater of--

       ``(I) an amount equal to 7 percent of the capital of the 
     Fund; or
       ``(II) $2,000,000.

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

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

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

     ``SEC. 383H. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this subtitle.''.

     SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.

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

            ``Subtitle H--Rural Business Investment Program

     ``SEC. 384A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Articles.--The term `articles' means articles of 
     incorporation for an incorporated body or the functional 
     equivalent or other similar documents specified by the 
     Secretary for other business entities.
       ``(2) Developmental venture capital.--The term 
     `developmental venture capital' means capital in the form of 
     equity capital investments in Rural Business Investment 
     Companies with an objective of fostering economic development 
     in rural areas.
       ``(3) Employee welfare benefit plan; pension plan.--
       ``(A) In general.--The terms `employee welfare benefit 
     plan' and `pension plan' have the meanings given the terms in 
     section 3 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1002).
       ``(B) Inclusions.--The terms `employee welfare benefit 
     plan' and `pension plan' include--
       ``(i) public and private pension or retirement plans 
     subject to this subtitle; and
       ``(ii) similar plans not covered by this subtitle that have 
     been established and that are maintained by the Federal 
     Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State) for the benefit of employees.
       ``(4) Equity capital.--The term `equity capital' means 
     common or preferred stock or a similar instrument, including 
     subordinated debt with equity features.
       ``(5) Leverage.--The term `leverage' includes--
       ``(A) debentures purchased or guaranteed by the Secretary;
       ``(B) participating securities purchased or guaranteed by 
     the Secretary; and
       ``(C) preferred securities outstanding as of the date of 
     enactment of this subtitle.
       ``(6) License.--The term `license' means a license issued 
     by the Secretary as provided in section 384D(c).
       ``(7) Limited liability company.--The term `limited 
     liability company' means a business entity that is organized 
     and operating in accordance with a State limited liability 
     company law approved by the Secretary.
       ``(8) Member.--The term `member' means, with respect to a 
     Rural Business Investment Company that is a limited liability 
     company, a holder of an ownership interest or a person 
     otherwise admitted to membership in the limited liability 
     company.
       ``(9) Operational assistance.--The term `operational 
     assistance' means management, marketing, and other technical 
     assistance that assists a rural business concern with 
     business development.
       ``(10) Participation agreement.--The term `participation 
     agreement' means an agreement, between the Secretary and a 
     Rural Business Investment Company granted final approval 
     under section 384D(d), that requires the Rural Business 
     Investment Company to make investments in smaller enterprises 
     in rural areas.
       ``(11) Private capital.--
       ``(A) In general.--The term `private capital' means the 
     total of--
       ``(i) the paid-in capital and paid-in surplus of a 
     corporate Rural Business Investment Company, the contributed 
     capital of the partners of a partnership Rural Business 
     Investment Company, or the equity investment of the members 
     of a limited liability company Rural Business Investment 
     Company; and
       ``(ii) unfunded binding commitments, from investors that 
     meet criteria established by the Secretary to contribute 
     capital to the Rural Business Investment Company, except that 
     unfunded commitments may be counted as private capital for 
     purposes of approval by the Secretary of any request for 
     leverage, but leverage shall not be funded based on the 
     commitments.
       ``(B) Exclusions.--The term `private capital' does not 
     include--
       ``(i) any funds borrowed by a Rural Business Investment 
     Company from any source;
       ``(ii) any funds obtained through the issuance of leverage; 
     or
       ``(iii) any funds obtained directly or indirectly from the 
     Federal Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State), except for--

       ``(I) 50 percent of funds from the National Rural 
     Cooperative and Business Equity Fund;
       ``(II) funds obtained from the business revenues (excluding 
     any governmental appropriation) of any federally chartered or 
     government-sponsored enterprise established prior to the date 
     of enactment of this subtitle;
       ``(III) funds invested by an employee welfare benefit plan 
     or pension plan; and
       ``(IV) any qualified nonprivate funds (if the investors of 
     the qualified nonprivate funds do

[[Page S1068]]

     not control, directly or indirectly, the management, board of 
     directors, general partners, or members of the Rural Business 
     Investment Company).

       ``(12) Qualified nonprivate funds.--The term `qualified 
     nonprivate funds' means any--
       ``(A) funds directly or indirectly invested in any 
     applicant or Rural Business Investment Company on or before 
     the date of enactment of this subtitle, by any Federal 
     agency, other than the Department of Agriculture, under a 
     provision of law explicitly mandating the inclusion of those 
     funds in the definition of the term `private capital'; and
       ``(B) funds invested in any applicant or Rural Business 
     Investment Company by 1 or more entities of any State 
     (including by a political subdivision, agency, or 
     instrumentality of the State and including any guarantee 
     extended by those entities) in an aggregate amount that does 
     not exceed 33 percent of the private capital of the applicant 
     or Rural Business Investment Company.
       ``(13) Rural business concern.--The term `rural business 
     concern' means--
       ``(A) a public, private, or cooperative for-profit or 
     nonprofit organization;
       ``(B) a for-profit or nonprofit business controlled by an 
     Indian tribe on a Federal or State reservation or other 
     federally recognized Indian tribal group; or
       ``(C) any other person or entity;
     that primarily operates in a rural area, as determined by the 
     Secretary.
       ``(14) Rural business investment company.--The term `Rural 
     Business Investment Company' means a company that--
       ``(A) has been granted final approval by the Secretary 
     under section 384D(d); and
       ``(B) has entered into a participation agreement with the 
     Secretary.
       ``(15) Smaller enterprise.--The term `smaller enterprise' 
     means any rural business concern that, together with its 
     affiliates--
       ``(A) has--
       ``(i) a net financial worth of not more than $6,000,000, as 
     of the date on which assistance is provided under this 
     subtitle to the rural business concern; and
       ``(ii) an average net income for the 2-year period 
     preceding the date on which assistance is provided under this 
     subtitle to the rural business concern, of not more than 
     $2,000,000, after Federal income taxes (excluding any 
     carryover losses) except that, for purposes of this clause, 
     if the rural business concern is not required by law to pay 
     Federal income taxes at the enterprise level, but is required 
     to pass income through to the shareholders, partners, 
     beneficiaries, or other equitable owners of the business 
     concern, the net income of the business concern shall be 
     determined by allowing a deduction in an amount equal to the 
     total of--

       ``(I) if the rural business concern is not required by law 
     to pay State (and local, if any) income taxes at the 
     enterprise level, the net income (determined without regard 
     to this clause), multiplied by the marginal State income tax 
     rate (or by the combined State and local income tax rates, as 
     applicable) that would have applied if the business concern 
     were a corporation; and
       ``(II) the net income (so determined) less any deduction 
     for State (and local) income taxes calculated under subclause 
     (I), multiplied by the marginal Federal income tax rate that 
     would have applied if the rural business concern were a 
     corporation; or

       ``(B) satisfies the standard industrial classification size 
     standards established by the Administrator of the Small 
     Business Administration for the industry in which the rural 
     business concern is primarily engaged.

     ``SEC. 384B. PURPOSES.

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

     ``SEC. 384C. ESTABLISHMENT.

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

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

       ``(a) Eligibility.--A company shall be eligible to apply to 
     participate, as a Rural Business Investment Company, in the 
     program established under this subtitle if--
       ``(1) the company is a newly formed for-profit entity or a 
     newly formed for-profit subsidiary of such an entity;
       ``(2) the company has a management team with experience in 
     community development financing or relevant venture capital 
     financing; and
       ``(3) the company will invest in enterprises that will 
     create wealth and job opportunities in rural areas, with an 
     emphasis on smaller businesses.
       ``(b) Application.--To participate, as a Rural Business 
     Investment Company, in the program established under this 
     subtitle, a company meeting the eligibility requirements of 
     subsection (a) shall submit an application to the Secretary 
     that includes--
       ``(1) a business plan describing how the company intends to 
     make successful developmental venture capital investments in 
     identified rural areas;
       ``(2) information regarding the community development 
     finance or relevant venture capital qualifications and 
     general reputation of the management of the company;
       ``(3) a description of how the company intends to work with 
     community-based organizations and local entities (including 
     local economic development companies, local lenders, and 
     local investors) and to seek to address the unmet equity 
     capital needs of the communities served;
       ``(4) a proposal describing how the company intends to use 
     the grant funds provided under this subtitle to provide 
     operational assistance to smaller enterprises financed by the 
     company, including information regarding whether the company 
     intends to use licensed professionals, when necessary, on the 
     staff of the company or from an outside entity;
       ``(5) with respect to binding commitments to be made to the 
     company under this subtitle, an estimate of the ratio of cash 
     to in-kind contributions;
       ``(6) a description of the criteria to be used to evaluate 
     whether and to what extent the company meets the purposes of 
     the program established under this subtitle;
       ``(7) information regarding the management and financial 
     strength of any parent firm, affiliated firm, or any other 
     firm essential to the success of the business plan of the 
     company; and
       ``(8) such other information as the Secretary may require.
       ``(c) Issuance of License.--
       ``(1) Submission of application.--Each applicant for a 
     license to operate as a Rural Business Investment Company 
     under this subtitle shall submit to the Secretary an 
     application, in a form and including such documentation as 
     may be prescribed by the Secretary.
       ``(2) Procedures.--
       ``(A) Status.--Not later than 90 days after the initial 
     receipt by the Secretary of an application under this 
     subsection, the Secretary shall provide the applicant with a 
     written report describing the status of the application and 
     any requirements remaining for completion of the application.
       ``(B) Approval or disapproval.--Within a reasonable time 
     after receiving a completed application submitted in 
     accordance with this subsection and in accordance with such 
     requirements as the Secretary may prescribe by regulation, 
     the Secretary shall--
       ``(i) approve the application and issue a license for the 
     operation to the applicant, if the requirements of this 
     section are satisfied; or
       ``(ii) disapprove the application and notify the applicant 
     in writing of the disapproval.
       ``(3) Matters considered.--In reviewing and processing any 
     application under this subsection, the Secretary--
       ``(A) shall determine whether--
       ``(i) the applicant meets the requirements of subsection 
     (d); and
       ``(ii) the management of the applicant is qualified and has 
     the knowledge, experience, and capability necessary to comply 
     with this subtitle;
       ``(B) shall take into consideration--
       ``(i) the need for and availability of financing for rural 
     business concerns in the geographic area in which the 
     applicant is to commence business;
       ``(ii) the general business reputation of the owners and 
     management of the applicant; and
       ``(iii) the probability of successful operations of the 
     applicant, including adequate profitability and financial 
     soundness; and
       ``(C) shall not take into consideration any projected 
     shortage or unavailability of grant funds or leverage.
       ``(d) Approval; Designation.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary may approve an applicant to operate as a Rural 
     Business Investment Company under this subtitle and designate 
     the applicant as a Rural Business Investment Company, if--
       ``(A) the Secretary determines that the application 
     satisfies the requirements of subsection (b);
       ``(B) the area in which the Rural Business Investment 
     Company is to conduct its operations, and establishment of 
     branch offices or agencies (if authorized by the articles), 
     are approved by the Secretary; and
       ``(C) the applicant enters into a participation agreement 
     with the Secretary.
       ``(2) Capital requirements.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subtitle, the Secretary may approve an applicant to 
     operate as a Rural Business Investment Company under this 
     subtitle and designate the applicant as a Rural Business 
     Investment Company, if the Secretary determines that the 
     applicant--
       ``(i) has private capital of less than $2,500,000;
       ``(ii) would otherwise be approved under this subtitle, 
     except that the applicant does not satisfy the requirements 
     of section 384I(c); and
       ``(iii) has a viable business plan that reasonably projects 
     profitable operations and that has

[[Page S1069]]

     a reasonable timetable for achieving a level of private 
     capital that satisfies the requirements of section 384I(c).
       ``(B) Leverage.--An applicant approved under subparagraph 
     (A) shall not be eligible to receive leverage under this 
     subtitle until the applicant satisfies the requirements of 
     section 384I(c).
       ``(C) Grants.--An applicant approved under subparagraph (A) 
     shall be eligible for grants under section 384H in proportion 
     to the private capital of the applicant, as determined by the 
     Secretary.

     ``SEC. 384E. DEBENTURES.

       ``(a) In General.--The Secretary may guarantee the timely 
     payment of principal and interest, as scheduled, on 
     debentures issued by any Rural Business Investment Company.
       ``(b) Terms and Conditions.--The Secretary may make 
     guarantees under this section on such terms and conditions as 
     the Secretary considers appropriate, except that the term of 
     any debenture guaranteed under this section shall not exceed 
     15 years.
       ``(c) Full Faith and Credit of the United States.--Section 
     381H(i) shall apply to any guarantee under this section.
       ``(d) Maximum Guarantee.--Under this section, the Secretary 
     may--
       ``(1) guarantee the debentures issued by a Rural Business 
     Investment Company only to the extent that the total face 
     amount of outstanding guaranteed debentures of the Rural 
     Business Investment Company does not exceed the lesser of--
       ``(A) 300 percent of the private capital of the Rural 
     Business Investment Company; or
       ``(B) $105,000,000; and
       ``(2) provide for the use of discounted debentures.

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

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

     ``SEC. 384G. FEES.

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

     ``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

       ``(a) In General.--In accordance with this section, the 
     Secretary may make grants to Rural Business Investment 
     Companies and to other entities, as authorized by this 
     subtitle, to provide operational assistance to smaller 
     enterprises financed, or expected to be financed, by the 
     entities.
       ``(b) Terms.--Grants made under this section shall be made 
     over a multiyear period (not to exceed 10 years) under such 
     other terms as the Secretary may require.
       ``(c) Use of Funds.--The proceeds of a grant made under 
     this section may be used by the Rural Business Investment 
     Company receiving the grant only to provide operational 
     assistance in connection with an equity or prospective equity 
     investment in a business located in a rural area.
       ``(d) Submission of Plans.--A Rural Business Investment 
     Company shall be eligible for a grant under this section only 
     if the Rural Business Investment Company submits to the 
     Secretary, in such form and manner as the Secretary may 
     require, a plan for use of the grant.
       ``(e) Grant Amount.--
       ``(1) Rural business investment companies.--The amount of a 
     grant made under this section to a Rural Business Investment 
     Company shall be equal to the lesser of--
       ``(A) 10 percent of the private capital raised by the Rural 
     Business Investment Company; or
       ``(B) $1,000,000.
       ``(2) Other entities.--The amount of a grant made under 
     this section to any entity other than a Rural Business 
     Investment Company shall be equal to the resources (in cash 
     or in kind) raised by the entity in accordance with the 
     requirements applicable to Rural Business Investment 
     Companies under this subtitle.

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

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

[[Page S1070]]

     not more than 10 percent of the investments shall be made in 
     an area containing a city of over 100,000 in the last 
     decennial census and the Census Bureau defined urbanized area 
     containing or adjacent to that city;
       ``(D) ensure that the Rural Business Investment Company is 
     designed primarily to meet equity capital needs of the 
     businesses in which the Rural Business Investment Company 
     invests and not to compete with traditional small business 
     financing by commercial lenders; and
       ``(E) require that the Rural Business Investment Company 
     makes short-term non-equity investments of less than 5 years 
     only to the extent necessary to preserve an existing 
     investment.
         ``(d) Diversification of Ownership.--The Secretary shall 
     ensure that the management of each Rural Business Investment 
     Company licensed after the date of enactment of this subtitle 
     is sufficiently diversified from and unaffiliated with the 
     ownership of the Rural Business Investment Company so as to 
     ensure independence and objectivity in the financial 
     management and oversight of the investments and operations of 
     the Rural Business Investment Company.

     ``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

       ``(a) In General.--Except as otherwise provided in this 
     section and notwithstanding any other provision of law, the 
     following banks, associations, and institutions are eligible 
     both to establish and invest in any Rural Business Investment 
     Company or in any entity established to invest solely in 
     Rural Business Investment Companies:
       ``(1) Any bank or savings association the deposits of which 
     are insured under the Federal Deposit Insurance Act (12 
     U.S.C. 1811 et seq.)
       ``(2) Any Farm Credit System institution described in 
     section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2002(a)).
       ``(b) Limitation.--No bank, association, or institution 
     described in subsection (a) may make investments described in 
     subsection (a) that are greater than 5 percent of the capital 
     and surplus of the bank, association, or institution.
       ``(c) Limitation on Rural Business Investment Companies 
     Controlled by Farm Credit System Institutions.--If a Farm 
     Credit System institution described in section 1.2(a) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 
     15 percent of the shares of a Rural Business Investment 
     Company, either alone or in conjunction with other System 
     institutions (or affiliates), the Rural Business Investment 
     Company shall not provide equity investments in, or provide 
     other financial assistance to, entities that are not 
     otherwise eligible to receive financing from the Farm Credit 
     System under that Act (12 U.S.C. 2001 et seq.).

     ``SEC. 384K. REPORTING REQUIREMENTS.

       ``(a) Rural Business Investment Companies.--Each Rural 
     Business Investment Company that participates in the program 
     established under this subtitle shall provide to the 
     Secretary such information as the Secretary may require, 
     including--
       ``(1) information relating to the measurement criteria that 
     the Rural Business Investment Company proposed in the program 
     application of the Rural Business Investment Company; and
       ``(2) in each case in which the Rural Business Investment 
     Company under this subtitle makes an investment in, or a loan 
     or grant to, a business that is not located in a rural area, 
     a report on the number and percentage of employees of the 
     business who reside in those areas.
       ``(b) Public Reports.--
       ``(1) In general.--The Secretary shall prepare and make 
     available to the public an annual report on the program 
     established under this subtitle, including detailed 
     information on--
       ``(A) the number of Rural Business Investment Companies 
     licensed by the Secretary during the previous fiscal year;
       ``(B) the aggregate amount of leverage that Rural Business 
     Investment Companies have received from the Federal 
     Government during the previous fiscal year;
       ``(C) the aggregate number of each type of leveraged 
     instruments used by Rural Business Investment Companies 
     during the previous fiscal year and how each number compares 
     to previous fiscal years;
       ``(D) the number of Rural Business Investment Company 
     licenses surrendered and the number of Rural Business 
     Investment Companies placed in liquidation during the 
     previous fiscal year, identifying the amount of leverage each 
     Rural Business Investment Company has received from the 
     Federal Government and the type of leverage instruments each 
     Rural Business Investment Company has used;
       ``(E) the amount of losses sustained by the Federal 
     Government as a result of operations under this subtitle 
     during the previous fiscal year and an estimate of the total 
     losses that the Federal Government can reasonably expect to 
     incur as a result of the operations during the current fiscal 
     year;
       ``(F) actions taken by the Secretary to maximize recoupment 
     of funds of the Federal Government incurred to implement and 
     administer the Rural Business Investment Program under this 
     subtitle during the previous fiscal year and to ensure 
     compliance with the requirements of this subtitle (including 
     regulations);
       ``(G) the amount of Federal Government leverage that each 
     licensee received in the previous fiscal year and the types 
     of leverage instruments each licensee used;
       ``(H) for each type of financing instrument, the sizes, 
     types of geographic locations, and other characteristics of 
     the small business investment companies using the instrument 
     during the previous fiscal year, including the extent to 
     which the investment companies have used the leverage from 
     each instrument to make loans or equity investments in rural 
     areas; and
       ``(I) the actions of the Secretary to carry out this 
     subtitle.
       ``(2) Prohibition.--In compiling the report required under 
     paragraph (1), the Secretary may not--
       ``(A) compile the report in a manner that permits 
     identification of any particular type of investment by an 
     individual Rural Business Investment Company or small 
     business concern in which a Rural Business Investment Company 
     invests; and
       ``(B) may not release any information that is prohibited 
     under section 1905 of title 18, United States Code.

     ``SEC. 384L. EXAMINATIONS.

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

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

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

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

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

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

       ``(a) Parties Deemed To Commit a Violation.--Whenever any 
     Rural Business Investment Company violates this subtitle 
     (including any rule, regulation, order, or participation 
     agreement under this subtitle), by reason of the failure of 
     the Rural Business Investment Company to comply with this 
     subtitle or by reason of its engaging in any act or practice 
     that constitutes or will constitute a violation of this 
     subtitle, the violation shall also be deemed to be a

[[Page S1071]]

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

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

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

     ``SEC. 384Q. CONTRACTING OF FUNCTIONS.

       ``Notwithstanding any other provision of law, the Secretary 
     shall enter into an interagency agreement with the 
     Administrator of the Small Business Administration to carry 
     out, on behalf of the Secretary, the day-to-day management 
     and operation of the program authorized by this subtitle.

     ``SEC. 384R. REGULATIONS.

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

     ``SEC. 384S. FUNDING.

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

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

       (a) Definition of Application.--In this section, the term 
     ``application'' does not include an application for a loan, 
     loan guarantee, or grant that, as of the date of enactment of 
     this Act, is in the preapplication phase of consideration 
     under regulations of the Secretary of Agriculture in effect 
     on the date of enactment of this Act.
       (b) Account.--There is established in the Treasury of the 
     United States an account to be known as the ``Rural America 
     Infrastructure Development Account'' (referred to in this 
     section as the ``Account'') to fund rural development loans, 
     loan guarantees, and grants described in subsection (d) that 
     are pending on the date of enactment of this Act.
       (c) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture such sums as are 
     necessary to carry out this section, to remain available 
     until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (d) Use of Funds.--
       (1) Eligible programs.--Subject to paragraph (2), the 
     Secretary shall use the funds in the Account to provide funds 
     for applications that are pending on the date of enactment of 
     this Act for--
       (A) community facility direct loans under section 306(a)(1) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926(a)(1));
       (B) community facility grants under paragraph (19), (20), 
     or (21) of section 306(a) of that Act (7 U.S.C. 1926(a));
       (C) water or waste disposal grants or direct loans under 
     paragraph (1) or (2) of section 306(a) of that Act (7 U.S.C. 
     1926(a));
       (D) rural water or wastewater technical assistance and 
     training grants under section 306(a)(14) of that Act (7 
     U.S.C. 1926(a)(14));
       (E) emergency community water assistance grants under 
     section 306A of that Act (7 U.S.C. 1926a);
       (F) business and industry guaranteed loans authorized under 
     section 310B(a)(1)(A) of that Act (7 U.S.C. 1932(a)(1)(A)); 
     and
       (G) solid waste management grants under section 310B(b) of 
     that Act (7 U.S.C. 1932(b)).
       (2) Limitations.--
       (A) Appropriated amounts.--Funds in the Account shall be 
     available to the Secretary to provide funds for pending 
     applications for loans, loan guarantees, and grants described 
     in paragraph (1) only to the extent that funds for the loans, 
     loan guarantees, and grants appropriated in the annual 
     appropriations Act for fiscal year 2002 have been exhausted.
       (B) Program requirements.--The Secretary may use the 
     Account to provide funds for a pending application for a 
     loan, loan guarantee, or grant described in paragraph (1) 
     only if the Secretary processes, reviews, and approves the 
     application in accordance with regulations in effect on the 
     date of enactment of this Act.

     SEC. 604. RURAL ENDOWMENT PROGRAM.

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

                 ``Subtitle I--Rural Endowment Program

     ``SEC. 385A. PURPOSE.

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

     ``SEC. 385B. DEFINITIONS.

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

     ``SEC. 385C. RURAL ENDOWMENT PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary may establish a program, 
     to be known as the `Rural Endowment Program', to provide 
     approved program entities with assistance in developing and 
     implementing comprehensive community development strategies 
     for eligible rural areas.
       ``(2) Purposes.--The purposes of the Program are--
       ``(A) to enhance the ability of an eligible rural area to 
     engage in comprehensive community development;
       ``(B) to leverage private and public resources for the 
     benefit of community development efforts in eligible rural 
     areas;
       ``(C) to make available staff of Federal agencies to 
     directly assist the community development efforts of an 
     approved program entity or eligible rural area; and
       ``(D) to strengthen the asset base of an eligible rural 
     area to further long-term, ongoing community development.

[[Page S1072]]

       ``(b) Applications.--
       ``(1) In general.--To receive an endowment grant under the 
     Program, the eligible entity shall submit an application at 
     such time, in such form, and containing such information as 
     the Secretary may require.
       ``(2) Regional applications.--
       ``(A) In general.--Where appropriate, the Secretary shall 
     encourage regional applications from program entities serving 
     more than 1 eligible rural area.
       ``(B) Criteria for applications.--To be eligible for an 
     endowment grant for a regional application, the program 
     entities that submit the application shall demonstrate that--
       ``(i) a comprehensive community development strategy for 
     the eligible rural areas is best accomplished through a 
     regional approach; and
       ``(ii) the combined population of the eligible rural areas 
     covered by the comprehensive community development strategy 
     is 75,000 inhabitants or less.
       ``(C) Waiver for indian tribes.--The Secretary may, at the 
     request of an Indian tribe, waive the requirement under 
     subparagraph (B)(ii) with respect to an application submitted 
     by the Indian tribe for multiple eligible rural areas under 
     the jurisdiction of the Indian tribe.
       ``(D) Amount of endowment grants.--For the purpose of 
     subsection (f)(2), 2 or more program entities that submit a 
     regional application shall be considered to be a single 
     program entity.
       ``(3) Preference.--The Secretary shall give preference to a 
     joint application submitted by a private, nonprofit community 
     development corporation and a unit of local government or 
     Indian tribe.
       ``(c) Entity Approval.--The Secretary shall approve a 
     program entity to receive grants under the Program, if the 
     program entity meets criteria established by the Secretary, 
     including the following:
       ``(1) Distressed rural area.--The program entity shall 
     serve a rural area that suffers from economic or social 
     distress resulting from poverty, high unemployment, 
     outmigration, plant closings, agricultural downturn, declines 
     in the natural resource-based economy, or environmental 
     degradation.
       ``(2) Capacity to implement strategy.--The program entity 
     shall demonstrate the capacity to implement a comprehensive 
     community development strategy.
       ``(3) Goals.--The goals described in the application 
     submitted under subsection (b) shall be consistent with this 
     section.
       ``(4) Participation process.--The program entity shall 
     demonstrate the ability to convene and maintain a multi-
     stakeholder, community-based participation process.
       ``(d) Planning Grants to Conditionally Approved Program 
     Entities.--
       ``(1) In general.--The Secretary may award supplemental 
     grants to approved program entities to assist the approved 
     program entities in the development of a comprehensive 
     community development strategy under subsection (e).
       ``(2) Eligibility for supplemental grants.--In determining 
     whether to award a supplemental grant to an approved program 
     entity, the Secretary shall consider the economic need of the 
     approved program entity.
       ``(3) Limitations on amount of grants.--Under this 
     subsection, an approved program entity may receive a 
     supplemental grant in an amount of--
       ``(A) not more than $100,000; or
       ``(B) in the case of a regional application approved under 
     a waiver by the Secretary under subsection (b)(2)(C), not 
     more than $200,000.
       ``(e) Endowment Grant Award.--
       ``(1) In general.--To be eligible for an endowment grant 
     under the Program, an approved program entity shall develop, 
     and obtain the approval of the Secretary for, a comprehensive 
     community development strategy that--
       ``(A) is designed to reduce economic or social distress 
     resulting from poverty, high unemployment, outmigration, 
     plant closings, agricultural downturn, declines in the 
     natural resource-based economy, or environmental degradation;
       ``(B) addresses a broad range of the development needs of a 
     community, including economic, social, and environmental 
     needs, for a period of not less than 10 years;
       ``(C) is developed with input from a broad array of local 
     governments and business, civic, and community organizations;
       ``(D) specifies measurable performance-based outcomes for 
     all activities; and
       ``(E) includes a financial plan for achieving the outcomes 
     and activities of the comprehensive community development 
     strategy that identifies sources for, or a plan to meet, the 
     requirement for a non-Federal share under subsection 
     (f)(4)(B).
       ``(2) Final approval.--
       ``(A) In general.--An approved program entity shall receive 
     final approval if the Secretary determines that--
       ``(i) the comprehensive community development strategy of 
     the approved program entity meets the requirements of this 
     section;
       ``(ii) the management and organizational structure of the 
     approved program entity is sufficient to oversee fund and 
     development activities;
       ``(iii) the approved program entity has established an 
     endowment fund; and
       ``(iv) the approved program entity will be able to provide 
     the non-Federal share required under subsection (f)(4)(B).
       ``(B) Conditions.--As part of the final approval, the 
     approved program entity shall agree to--
       ``(i) achieve, to the maximum extent practicable, 
     performance-based benchmarks; and
       ``(ii) comply with the terms of the comprehensive community 
     development strategy for a period of not less than 10 years.
       ``(f) Endowment Grants.--
       ``(1) In general.--Under the Program, the Secretary may 
     make endowment grants to approved program entities with final 
     approval to implement an approved comprehensive community 
     development strategy.
       ``(2) Amount of grants.--An endowment grant to an approved 
     program entity shall be in an amount of not more than 
     $6,000,000, as determined by the Secretary based on--
       ``(A) the size of the population of the eligible rural area 
     for which the endowment grant is to be used;
       ``(B) the size of the eligible rural area for which the 
     endowment grant is to be used;
       ``(C) the extent of the comprehensive community development 
     strategy to be implemented using the endowment grant award; 
     and
       ``(D) the extent to which the community suffers from 
     economic or social distress resulting from--
       ``(i) poverty;
       ``(ii) high unemployment;
       ``(iii) outmigration;
       ``(iv) plant closings;
       ``(v) agricultural downturn;
       ``(vi) declines in the natural resource-based economy; or
       ``(vii) environmental degradation.
       ``(3) Endowment funds.--
       ``(A) Establishment.--On notification from the Secretary 
     that the program entity has been approved under subsection 
     (c), the approved program entity shall establish an endowment 
     fund.
       ``(B) Funding of endowment.--Federal funds provided in the 
     form of an endowment grant under the Program shall--
       ``(i) be deposited in the endowment fund;
       ``(ii) be the sole property of the approved program entity;
       ``(iii) be used in a manner consistent with this subtitle; 
     and
       ``(iv) be subject to oversight by the Secretary for a 
     period of not more than 10 years.
       ``(C) Interest.--Interest earned on Federal funds in the 
     endowment fund shall be--
       ``(i) retained by the grantee; and
       ``(ii) treated as Federal funds are treated under 
     subparagraph (B).
       ``(D) Limitation.--The Secretary shall promulgate 
     regulations on matching funds and returns on program-related 
     investments only to the extent that such funds or proceeds 
     are used in a manner consistent with this subtitle.
       ``(4) Conditions.--
       ``(A) Disbursement.--
       ``(i) In general.--Each endowment grant award shall be 
     disbursed during a period not to exceed 5 years beginning 
     during the fiscal year containing the date of final approval 
     of the approved program entity under subsection (e)(3).
       ``(ii) Manner of disbursement.--Subject to subparagraph 
     (B), the Secretary may disburse a grant award in 1 lump sum 
     or in incremental disbursements made each fiscal year.
       ``(iii) Incremental disbursements.--If the Secretary elects 
     to make incremental disbursements, for each fiscal year after 
     the initial disbursement, the Secretary shall make a 
     disbursement under clause (i) only if the approved program 
     entity--

       ``(I) has met the performance-based benchmarks of the 
     approved program entity for the preceding fiscal year; and
       ``(II) has provided the non-Federal share required for the 
     preceding fiscal year under subparagraph (B).

       ``(iv) Advance disbursements.--The Secretary may make 
     disbursements under this paragraph notwithstanding any 
     provision of law limiting grant disbursements to amounts 
     necessary to cover expected expenses on a term basis.
       ``(B) Non-federal share.--
       ``(i) In general.--Except as provided in clause (ii), for 
     each disbursement under subparagraph (A), the Secretary shall 
     require the approved program entity to provide a non-Federal 
     share in an amount equal to 50 percent of the amount of funds 
     received by the approved program entity under the 
     disbursement.
       ``(ii) Lower non-federal share.--In the case of an approved 
     program entity that serves a small, poor rural area or poor 
     Indian tribe (as determined by the Secretary), the Secretary 
     may--

       ``(I) reduce the non-Federal share to not less than 20 
     percent; and
       ``(II) allow the non-Federal share to be provided in the 
     form of in-kind contributions.

       ``(iii) Binding commitments; plan.--For the purpose of 
     meeting the non-Federal share requirement with respect to the 
     first disbursement of an endowment grant award to the 
     approved program entity under the Program, an approved 
     program entity shall--

       ``(I) have, at a minimum, binding commitments to provide 
     the non-Federal share required with respect to the first 
     disbursement of the endowment grant award; and
       ``(II) if the Secretary is making incremental disbursements 
     of a grant, develop a viable plan for providing the remaining 
     amount of the required non-Federal share.

       ``(C) Limitations.--
       ``(i) In general.--Subject to clause (ii), of each 
     disbursement, an approved program entity shall use--

       ``(I) not more than 10 percent for administrative costs of 
     carrying out program-related investments;
       ``(II) not more than 20 percent for the purpose of 
     maintaining a loss reserve account; and
       ``(III) the remainder for program-related investments 
     contained in the comprehensive community development 
     strategy.

       ``(ii) Loss reserve account.--If all disbursed funds 
     available under a grant are expended in accordance with 
     clause (i) and the grant recipient has no expected losses to 
     cover for a fiscal year, the recipient may use funds in the 
     loss reserve account described in clause (i)(II) for program-
     related investments described in clause (i)(III) for which no 
     reserve for losses is required.

[[Page S1073]]

       ``(g) Federal Agency Assistance.--Under the Program, the 
     Secretary shall provide and coordinate technical assistance 
     for grant recipients by designated field staff of Federal 
     agencies.
       ``(h) Private Technical Assistance.--
       ``(1) In general.--Under the Program, the Secretary may 
     make grants to qualified intermediaries to provide technical 
     assistance and capacity building to approved program entities 
     under the Program.
       ``(2) Duties.--A qualified intermediary that receives a 
     grant under this subsection shall--
       ``(A) provide assistance to approved program entities in 
     developing, coordinating, and overseeing investment strategy;
       ``(B) provide technical assistance in all aspects of 
     planning, developing, and managing the Program; and
       ``(C) facilitate Federal and private sector involvement in 
     rural community development.
       ``(3) Eligibility.--To be considered a qualified 
     intermediary under this subsection, an intermediary shall--
       ``(A) be a private, nonprofit community development 
     organization;
       ``(B) have expertise in Federal or private rural community 
     development policy or programs; and
       ``(C) have experience in providing technical assistance, 
     planning, and capacity building assistance to rural 
     communities and nonprofit entities in eligible rural areas.
       ``(4) Maximum amount of grants.--A qualified intermediary 
     may receive a grant under this subsection of not more than 
     $100,000.
       ``(5) Funding.--Of the amounts made available under section 
     385D, the Secretary may use to carry out this subsection not 
     more than $2,000,000 for each of not more than 2 fiscal 
     years.

     ``SEC. 385D. FUNDING.

       ``(a) Fiscal Years 2002 and 2003.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, out of any funds in the Treasury 
     not otherwise appropriated, the Secretary of the Treasury 
     shall transfer to the Secretary of Agriculture to carry out 
     this subtitle $82,000,000 for the period of fiscal years 2002 
     and 2003, to remain available until expended.
       ``(2) Schedule for obligations.--Of the amounts made 
     available under paragraph (1)--
       ``(A) not more than $5,000,000 shall be obligated to carry 
     out section 385C(d);
       ``(B) not less than $75,000,000 shall be obligated to carry 
     out section 385C(f); and
       ``(C) not less than $2,000,000 shall be obligated to carry 
     out section 385C(h).
       ``(3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subtitle the funds transferred under paragraph (1), 
     without further appropriation.
       ``(b) Fiscal Years 2004 through 2006.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subtitle for each of fiscal years 2004 through 2006.''.

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

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

                   ``TITLE VI--RURAL BROADBAND ACCESS

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

       ``(a) Purpose.--The purpose of this section is to provide 
     grants, loans, and loan guarantees to provide funds for the 
     costs of the construction, improvement, and acquisition of 
     facilities and equipment for broadband service in eligible 
     rural communities.
       ``(b) Definitions.--In this section:
       ``(1) Broadband service.--The term `broadband service' 
     means any technology identified by the Secretary as having 
     the capacity to transmit data to enable a subscriber to the 
     service to originate and receive high-quality voice, data, 
     graphics, or video.
       ``(2) Eligible rural community.--The term `eligible rural 
     community' means any incorporated or unincorporated place 
     that--
       ``(A) has not more than 20,000 inhabitants, based on the 
     most recent available population statistics of the Bureau of 
     the Census; and
       ``(B) is not located in an area designated as a standard 
     metropolitan statistical area.
       ``(c) Grants.--The Secretary shall make grants to eligible 
     entities described in subsection (e) to provide funds for the 
     construction, improvement, or acquisition of facilities and 
     equipment for the provision of broadband service in eligible 
     rural communities.
       ``(d) Loans and Loan Guarantees.--The Secretary shall make 
     or guarantee loans to eligible entities described in 
     subsection (e) to provide funds for the construction, 
     improvement, or acquisition of facilities and equipment for 
     the provision of broadband service in eligible rural 
     communities.
       ``(e) Eligible Entities.--To be eligible to obtain a grant, 
     loan, or loan guarantee under this section, an entity must--
       ``(1) be able to furnish, improve, or extend a broadband 
     service to an eligible rural community; and
       ``(2) submit to the Secretary a proposal for a project that 
     meets the requirements of this section.
       ``(f) Broadband Service.--The Secretary shall, from time to 
     time as advances in technology warrant, review and recommend 
     modifications of rate-of-data transmission criteria for 
     purposes of the identification of broadband service 
     technologies under subsection (b)(1).
       ``(g) Technological Neutrality.--For purposes of 
     determining whether or not to make a grant, loan, or loan 
     guarantee for a project under this section, the Secretary 
     shall not take into consideration the type of technology 
     proposed to be used under the project.
       ``(h) Terms and Conditions for Loans and Loan Guarantees.--
     A loan or loan guarantee under subsection (d) shall--
       ``(1) be made available in accordance with the requirements 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
     seq.);
       ``(2) bear interest at an annual rate of, as determined by 
     the Secretary--
       ``(A) 4 percent per annum; or
       ``(B) the current applicable market rate; and
       ``(3) have a term not to exceed the useful life of the 
     assets constructed, improved, or acquired with the proceeds 
     of the loan or extension of credit.
       ``(i) Use of Loan Proceeds to Refinance Loans for 
     Deployment of Broadband Service.--Notwithstanding any other 
     provision of this Act, the proceeds of any loan made by the 
     Secretary under this Act may be used by the recipient of the 
     loan for the purpose of refinancing an outstanding obligation 
     of the recipient on another telecommunications loan made 
     under this Act if the use of the proceeds for that purpose 
     will further the construction, improvement, or acquisition of 
     facilities and equipment for the provision of broadband 
     service in eligible rural communities.
       ``(j) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $100,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Allocation of funds.--
       ``(A) In general.--From amounts made available for each 
     fiscal year under paragraph (1), the Secretary shall--
       ``(i) establish a national reserve for grants, loans, and 
     loan guarantees to eligible entities in States under this 
     section; and
       ``(ii) allocate amounts in the reserve to each State for 
     each fiscal year for grants, loans, and loan guarantees to 
     eligible entities in the State.
       ``(B) Amount.--The amount of an allocation made to a State 
     for a fiscal year under subparagraph (A) shall bear the same 
     ratio to the amount of allocations made for all States for 
     the fiscal year as the number of communities with a 
     population of 2,500 inhabitants or less in the State bears to 
     the number of communities with a population of 2,500 
     inhabitants or less in all States, as determined on the basis 
     of the last available census.
       ``(C) Unobligated amounts.--Any amounts in the reserve 
     established for a State for a fiscal year under subparagraph 
     (B) that are not obligated by April 1 of the fiscal year 
     shall be available to the Secretary to make grants, loans, 
     and loan guarantees under this section to eligible entities 
     in any State, as determined by the Secretary.
       ``(k) Grants for Planning and Feasibility Studies on 
     Broadband Deployment.--
       ``(1) In general.--In addition to any other grants, loans, 
     or loan guarantees made under this section, the Secretary 
     shall make grants to eligible entities specified in paragraph 
     (2) for planning and feasibility studies carried out by those 
     entities on the deployment of broadband services in the areas 
     served by those entities.
       ``(2) Eligible entities.--The entities eligible for grants 
     under this subsection are--
       ``(A) State governments;
       ``(B) local governments (including consortia of local 
     governments);
       ``(C) tribal governments;
       ``(D) telecommunications cooperatives; and
       ``(E) appropriate State and regional nonprofit entities (as 
     determined by the Secretary).
       ``(3) Eligibility criteria.--
       ``(A) In general.--The Secretary shall establish criteria 
     for eligibility for grants under this subsection, including 
     criteria for the scope of the planning and feasibility 
     studies to be carried out with grants under this subsection.
       ``(B) Contribution by grantee.--An entity may not be 
     awarded a grant under this subsection unless the entity 
     agrees to contribute (out of funds other than the grant 
     amount) to the planning and feasibility study to be funded by 
     the grant an amount equal to the amount of the grant.
       ``(4) Application.--An entity seeking a grant under this 
     subsection shall submit to the Secretary an application for 
     the grant that is in such form, and that contains such 
     information, as the Secretary shall require.
       ``(5) Use of grant amounts.--
       ``(A) In general.--Subject to subparagraph (B), an entity 
     that receives a grant under this subsection shall use the 
     grant amount for planning and feasibility studies on the 
     deployment of broadband services in the area of--
       ``(i) an Indian tribe;
       ``(ii) a local government;
       ``(iii) a State;
       ``(iv) a region of a State; or
       ``(v) a region of States.
       ``(B) Limitation.--Grant amounts under this subsection may 
     not be used for the construction of buildings or other 
     facilities, the acquisition or improvement of existing 
     buildings or facilities, or the leasing of office space.
       ``(6) Limitation on grant amounts.--
       ``(A) Statewide grants.--The amount of the grants made 
     under this subsection in or with respect to any State in any 
     fiscal year may not exceed $250,000.
       ``(B) Local government, regional, or tribal grants.--The 
     amount of the grants made under this subsection in or with 
     respect to any local government, region, or tribal government 
     in any fiscal year may not exceed $100,000.
       ``(7) Reservation of funds for grants.--
       ``(A) In general.--For each fiscal year, up to 3 percent of 
     the funds made available to carry

[[Page S1074]]

     out this section for the fiscal year shall be reserved for 
     grants under this subsection.
       ``(B) Release.--Funds reserved under subparagraph (A) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.
       ``(8) Supplement not supplant.--
       ``(A) In general.--Eligibility for a grant under this 
     subsection shall not affect eligibility for a grant, loan, or 
     loan guarantee under another subsection of this section.
       ``(B) Considerations.--The Secretary shall not take into 
     account the award of a grant under this subsection, or the 
     award of a grant, loan, or loan guarantee under another 
     subsection of this section, in awarding a grant, loan, or 
     loan guarantee under this subsection or another subsection of 
     this section, as the case may be.
       ``(l) Termination of Authority.--
       ``(1) In general.--No grant, loan, or loan guarantee may be 
     made under this section after September 30, 2006.
       ``(2) Effect on validity of grant, loan, or loan 
     guarantee.--Notwithstanding paragraph (1), any grant, loan, 
     or loan guarantee made under this section before the date 
     specified in paragraph (1) shall be valid.''.

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

       Section 231 of the Agricultural Risk Protection Act of 2000 
     (7 U.S.C. 1621 note; Public Law 106-224) is amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively;
       (2) by striking subsection (a) and inserting the following:
       ``(a) Definition of Value-Added Agricultural Product.--The 
     term `value-added agricultural product' means any 
     agricultural commodity or product that--
       ``(1)(A) has undergone a change in physical state; or
       ``(B) was produced in a manner that enhances the value of 
     the agricultural commodity or product, as demonstrated 
     through a business plan that shows the enhanced value, as 
     determined by the Secretary; and
       ``(2) as a result of the change in physical state or the 
     manner in which the agricultural commodity or product was 
     produced--
       ``(A) the customer base for the agricultural commodity or 
     product has been expanded; and
       ``(B) a greater portion of the revenue derived from the 
     processing of the agricultural commodity or product is 
     available to the producer of the commodity or product.
       ``(b) Grant Program.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to increase the share of the food and agricultural 
     system profit received by agricultural producers;
       ``(B) to increase the number and quality of rural self-
     employment opportunities in agriculture and agriculturally-
     related businesses and the number and quality of jobs in 
     agriculturally-related businesses;
       ``(C) to help maintain a diversity of size in farms and 
     ranches by stabilizing the number of small and mid-sized 
     farms;
       ``(D) to increase the diversity of food and other 
     agricultural products available to consumers, including 
     nontraditional crops and products and products grown or 
     raised in a manner that enhances the value of the products to 
     the public; and
       ``(E) to conserve and enhance the quality of land, water, 
     and energy resources, wildlife habitat, and other landscape 
     values and amenities in rural areas.
       ``(2) Grants.--From amounts made available under paragraph 
     (6), the Secretary shall make award competitive grants--
       ``(A) to an eligible independent producer (as determined by 
     the Secretary) of a value-added agricultural product to 
     assist the producer--
       ``(i) to develop a business plan for viable marketing 
     opportunities for the value-added agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities for the producer; and
       ``(B) to an eligible nonprofit entity (as determined by the 
     Secretary) to assist the entity--
       ``(i) to develop a business plan for viable marketing 
     opportunities in emerging markets for a value-added 
     agricultural product;
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities in emerging markets for the value-
     added agricultural product; or
       ``(iii) to create, expand, or operate value-added 
     processing in an area described in paragraph (3)(B)(ii) in 
     connection with production agriculture.
       ``(3) Amount of grant.--
       ``(A) In general.--The total amount provided under this 
     subsection to a grant recipient may not exceed $500,000.
       ``(B) Priority.--The Secretary shall give priority to--
       ``(i) grant proposals for less than $200,000 submitted 
     under this subsection; and
       ``(ii) grant proposals submitted by an eligible nonprofit 
     entity with a principal office that is located--

       ``(I) on land of an existing or former Native American 
     reservation; and
       ``(II) in a city, town, or unincorporated area that has a 
     population of no more than 5,000 inhabitants.

       ``(4) Grantee strategies.--A grantee under paragraph (2) 
     shall use the grant--
       ``(A) to develop a business plan or perform a feasibility 
     study to establish a viable marketing opportunity for a 
     value-added agricultural product; or
       ``(B) to provide capital to establish alliances or business 
     ventures that allow the producer of the value-added 
     agricultural product to better compete in domestic or 
     international markets.
       ``(5) Grants for marketing or processing certified organic 
     agricultural products.--
       ``(A) In general.--Out of any amount that is made available 
     to the Secretary for a fiscal year under paragraph (2), the 
     Secretary shall use not less than 5 percent of the amount for 
     grants to assist producers of certified organic agricultural 
     products in post-farm marketing or processing of the products 
     through a business or cooperative ventures that--
       ``(i) expand the customer base of the certified organic 
     agricultural products; and
       ``(ii) increase the portion of product revenue available to 
     the producers.
       ``(B) Certified organic agricultural product.--For the 
     purposes of this paragraph, a certified organic agricultural 
     product does not have to meet the requirements of the 
     definition of `value-added agricultural product' under 
     subsection (a).
       ``(C) Insufficient applications.--If, for any fiscal year, 
     the Secretary receives an insufficient quantity of 
     applications for grants described in subparagraph (A) to use 
     the funds reserved under subparagraph (A), the Secretary may 
     use the excess reserved funds to make grants for any other 
     purpose authorized under this subsection.
       ``(6) Funding.--
       ``(A) In general.--Not later than 30 days after the date of 
     enactment of this paragraph, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this subsection $75,000,000, to 
     remain available until expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.'';
       (3) in subsection (c)(1) (as redesignated)--
       (A) by striking ``subsection (a)(2)'' and inserting 
     ``subsection (b)(2)'';
       (B) by striking ``$5,000,000'' and inserting ``7.5 
     percent''; and
       (C) by striking ``subsection (a)'' and inserting 
     ``subsection (b)''; and
       (4) in subsection (d) (as redesignated), by striking 
     ``subsections (a) and (b)'' and inserting ``subsections (b) 
     and (c)''.

     SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION 
                   CLEARINGHOUSE.

       Section 2381 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b) is amended to read as 
     follows:

     ``SEC. 2381. NATIONAL RURAL DEVELOPMENT INFORMATION 
                   CLEARINGHOUSE.

       ``(a) Establishment.--The Secretary shall establish and 
     maintain, within the rural development mission area of the 
     Department of Agriculture, a National Rural Development 
     Information Clearinghouse (referred to in this section as the 
     `Clearinghouse') to perform the functions specified in 
     subsection (b).
       ``(b) Functions.--The Clearinghouse shall collect 
     information and data from, and disseminate information and 
     data to, any person or public or private entity about 
     programs and services provided by Federal, State, local, and 
     tribal agencies, institutions of higher education, and 
     private, for-profit, and nonprofit organizations and 
     institutions under which a person or public or private entity 
     residing or operating in a rural area may be eligible for any 
     kind of financial, technical, or other assistance, including 
     business, venture capital, economic, credit and community 
     development assistance, health care, job training, education, 
     and emotional and financial counseling.
       ``(c) Modes of Collection and Dissemination of 
     Information.--In addition to other modes for the collection 
     and dissemination of the types of information and data 
     specified under subsection (b), the Secretary shall ensure 
     that the Clearinghouse maintains an Internet website that 
     provides for dissemination and collection, through voluntary 
     submission or posting, of the information and data.
       ``(d) Federal Agencies.--On request of the Secretary and to 
     the extent permitted by law, the head of a Federal agency 
     shall provide to the Clearinghouse such information as the 
     Secretary may request to enable the Clearinghouse to carry 
     out this section.
       ``(e) State, Local, and Tribal Agencies, Institutions of 
     Higher Education, and Nonprofit and For-Profit 
     Organizations.--The Secretary shall request State, local, and 
     tribal agencies, institutions of higher education, and 
     private, for-profit, and nonprofit organizations and 
     institutions to provide to the Clearinghouse information 
     concerning applicable programs or services described in 
     subsection (b).
       ``(f) Promotion of Clearinghouse.--The Secretary 
     prominently shall promote the existence and availability of 
     the Clearinghouse in all activities of the Department of 
     Agriculture relating to rural areas of the United States.
       ``(g) Funding.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall use to operate and maintain the Clearinghouse not more 
     than $600,000 of the funds available to the Rural Housing 
     Service, the Rural Utilities Service, and the Rural Business-
     Cooperative Service for each fiscal year.
       ``(2) Limitation.--Funds available to the Rural Housing 
     Service, the Rural Utilities Service, and the Rural Business-
     Cooperative Service for the payment of loan costs (as defined 
     in section 502 of Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a)) shall not be used to operate and maintain the 
     Clearinghouse.''.

           Subtitle B--National Rural Development Partnership

     SEC. 611. SHORT TITLE.

       This subtitle may be cited as the ``National Rural 
     Development Partnership Act of 2002''.

     SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

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

[[Page S1075]]

     ``SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       ``(a) Definitions.--In this section:
       ``(1) Agency with rural responsibilities.--The term `agency 
     with rural responsibilities' means any executive agency (as 
     defined in section 105 of title 5, United States Code) that--
       ``(A) implements Federal law targeted at rural areas, 
     including--
       ``(i) the Act of April 24, 1950 (commonly known as the 
     `Granger-Thye Act') (64 Stat. 82, chapter 9);
       ``(ii) the Intergovernmental Cooperation Act of 1968 (82 
     Stat. 1098);
       ``(iii) section 41742 of title 49, United States Code;
       ``(iv) the Rural Development Act of 1972 (86 Stat. 657);
       ``(v) the Rural Development Policy Act of 1980 (94 Stat. 
     1171);
       ``(vi) the Rural Electrification Act of 1936 (7 U.S.C. 901 
     et seq.);
       ``(vii) amendments made to section 334 of the Public Health 
     Service Act (42 U.S.C. 254g) by the Rural Health Clinics Act 
     of 1983 (97 Stat. 1345); and
       ``(viii) the Rural Housing Amendments of 1983 (97 Stat. 
     1240) and the amendments made by the Rural Housing Amendments 
     of 1983 to title V of the Housing Act of 1949 (42 U.S.C. 1471 
     et seq.); or
       ``(B) administers a program that has a significant impact 
     on rural areas, including--
       ``(i) the Appalachian Regional Commission;
       ``(ii) the Department of Agriculture;
       ``(iii) the Department of Commerce;
       ``(iv) the Department of Defense;
       ``(v) the Department of Education;
       ``(vi) the Department of Energy;
       ``(vii) the Department of Health and Human Services;
       ``(viii) the Department of Housing and Urban Development;
       ``(ix) the Department of the Interior;
       ``(x) the Department of Justice;
       ``(xi) the Department of Labor;
       ``(xii) the Department of Transportation;
       ``(xiii) the Department of the Treasury;
       ``(xiv) the Department of Veterans Affairs;
       ``(xv) the Environmental Protection Agency;
       ``(xvi) the Federal Emergency Management Administration;
       ``(xvii) the Small Business Administration;
       ``(xviii) the Social Security Administration;
       ``(xix) the Federal Reserve System;
       ``(xx) the United States Postal Service;
       ``(xxi) the Corporation for National Service;
       ``(xxii) the National Endowment for the Arts and the 
     National Endowment for the Humanities; and
       ``(xxiii) other agencies, commissions, and corporations.
       ``(2) Coordinating committee.--The term `Coordinating 
     Committee' means the National Rural Development Coordinating 
     Committee established by subsection (c).
       ``(3) Partnership.--The term `Partnership' means the 
     National Rural Development Partnership continued by 
     subsection (b).
       ``(4) State rural development council.--The term `State 
     rural development council' means a State rural development 
     council that meets the requirements of subsection (d).
       ``(b) Partnership.--
       ``(1) In general.--The Secretary shall continue the 
     National Rural Development Partnership composed of--
       ``(A) the Coordinating Committee; and
       ``(B) State rural development councils.
       ``(2) Purposes.--The purposes of the Partnership are--
       ``(A) to empower and build the capacity of States and rural 
     communities within States to design unique responses to their 
     own special rural development needs, with local 
     determinations of progress and selection of projects and 
     activities;
       ``(B) to encourage participants to be flexible and 
     innovative in establishing new partnerships and trying fresh, 
     new approaches to rural development issues, with responses to 
     rural development that use different approaches to fit 
     different situations; and
       ``(C) to encourage all partners in the Partnership 
     (Federal, State, local, and tribal governments, the private 
     sector, and nonprofit organizations) to be fully engaged and 
     share equally in decisions.
       ``(3) Governing panel.--
       ``(A) In general.--A panel consisting of representatives of 
     the Coordinating Committee and State rural development 
     councils shall be established to lead and coordinate the 
     strategic operation, policies, and practices of the 
     Partnership.
       ``(B) Annual reports.--In conjunction with the Coordinating 
     Committee and State rural development councils, the panel 
     shall prepare and submit to Congress an annual report on the 
     activities of the Partnership.
       ``(4) Role of federal government.--The role of the Federal 
     Government in the Partnership shall be that of a partner and 
     facilitator, with Federal agencies authorized--
       ``(A) to cooperate with States to implement the 
     Partnership;
       ``(B) to provide States with the technical and 
     administrative support necessary to plan and implement 
     tailored rural development strategies to meet local needs;
       ``(C) to ensure that the head of each agency referred to in 
     subsection (a)(1)(B) designates a senior-level agency 
     official to represent the agency on the Coordinating 
     Committee and directs appropriate field staff to participate 
     fully with the State rural development council within the 
     jurisdiction of the field staff; and
       ``(D) to enter into cooperative agreements with, and to 
     provide grants and other assistance to, State rural 
     development councils.
       ``(5) Role of private and nonprofit sector organizations.--
     Private and nonprofit sector organizations are encouraged--
       ``(A) to act as full partners in the Partnership and State 
     rural development councils; and
       ``(B) to cooperate with participating government 
     organizations in developing innovative approaches to the 
     solution of rural development problems.
       ``(c) National Rural Development Coordinating Committee.--
       ``(1) Establishment.--The Secretary shall establish a 
     National Rural Development Coordinating Committee.
       ``(2) Composition.--The Coordinating Committee shall be 
     composed of--
       ``(A) 1 representative of each agency with rural 
     responsibilities that elects to participate in the 
     Coordinating Committee; and
       ``(B) representatives, approved by the Secretary, of--
       ``(i) national associations of State, regional, local, and 
     tribal governments and intergovernmental and 
     multijurisdictional agencies and organizations;
       ``(ii) national public interest groups;
       ``(iii) other national nonprofit organizations that elect 
     to participate in the activities of the Coordinating 
     Committee; and
       ``(iv) the private sector.
       ``(3) Duties.--The Coordinating Committee shall--
       ``(A) provide support for the work of the State rural 
     development councils;
       ``(B) facilitate coordination among Federal programs and 
     activities, and with State, local, tribal, and private 
     programs and activities, affecting rural development;
       ``(C) enhance the effectiveness, responsiveness, and 
     delivery of Federal programs in rural areas;
       ``(D) gather and provide to Federal authorities information 
     and input for the development and implementation of Federal 
     programs impacting rural economic and community development;
       ``(E) notwithstanding any other provision of law, review 
     and comment on policies, regulations, and proposed 
     legislation that affect or would affect rural areas;
       ``(F) provide technical assistance to State rural 
     development councils for the implementation of Federal 
     programs;
       ``(G) notwithstanding any other provision of law, develop 
     and facilitate strategies to reduce or eliminate 
     administrative and regulatory impediments; and
       ``(H) require each State receiving funds under this section 
     to submit an annual report on the use of the funds by the 
     State, including a description of strategic plans, goals, 
     performance measures, and outcomes for the State rural 
     development council of the State.
       ``(4) Election not to participate.--An agency with rural 
     responsibilities that elects not to participate in the 
     Partnership and the Coordinating Committee shall submit to 
     Congress a report that describes--
       ``(A) how the programmatic responsibilities of the Federal 
     agency that target or have an impact on rural areas are 
     better achieved without participation by the agency in the 
     Partnership; and
       ``(B) a more effective means of partnership-building and 
     collaboration to achieve the programmatic responsibilities of 
     the agency.
       ``(d) State Rural Development Councils.--
       ``(1) Establishment.--Notwithstanding chapter 63 of title 
     31, United States Code, each State may elect to participate 
     in the Partnership by entering into an agreement with the 
     Secretary to establish a State rural development council.
       ``(2) State diversity.--Each State rural development 
     council shall--
       ``(A) have a nonpartisan membership that is broad and 
     representative of the economic, social, and political 
     diversity of the State; and
       ``(B) carry out programs and activities in a manner that 
     reflects the diversity of the State.
       ``(3) Duties.--A State rural development council shall--
       ``(A) facilitate collaboration among Federal, State, local, 
     and tribal governments and the private and nonprofit sectors 
     in the planning and implementation of programs and policies 
     that target or have an impact on rural areas of the State;
       ``(B) enhance the effectiveness, responsiveness, and 
     delivery of Federal and State programs in rural areas of the 
     State;
       ``(C) gather and provide to the Coordinating Committee and 
     other appropriate organizations information on the condition 
     of rural areas in the State;
       ``(D) monitor and report on policies and programs that 
     address, or fail to address, the needs of the rural areas of 
     the State;
       ``(E) provide comments to the Coordinating Committee and 
     other appropriate organizations on policies, regulations, and 
     proposed legislation that affect or would affect the rural 
     areas of the State;
       ``(F) notwithstanding any other provision of law, in 
     conjunction with the Coordinating Committee, facilitate the 
     development of strategies to reduce or eliminate conflicting 
     or duplicative administrative or regulatory requirements of 
     Federal, State, local, and tribal governments;
       ``(G) use grant or cooperative agreement funds provided by 
     the Partnership under an agreement entered into under 
     paragraph (1) to--
       ``(i) retain an Executive Director and such support staff 
     as are necessary to facilitate and implement the directives 
     of the State rural development council; and
       ``(ii) pay expenses associated with carrying out 
     subparagraphs (A) through (F); and
       ``(H)(i) provide to the Coordinating Committee an annual 
     plan with goals and performance measures; and
       ``(ii) submit to the Coordinating Committee an annual 
     report on the progress of the State rural development council 
     in meeting the goals and measures.
       ``(4) Authorities.--A State rural development council may--

[[Page S1076]]

       ``(A) solicit funds to supplement and match funds provided 
     under paragraph (3)(G); and
       ``(B) engage in activities, in addition to those specified 
     in paragraph (3), appropriate to accomplish the purposes for 
     which the State rural development council is established.
       ``(5) Comments or recommendations.--A State rural 
     development council may provide comments and recommendations 
     to an agency with rural responsibilities related to the 
     activities of the State rural development council within the 
     State.
       ``(6) Actions of state rural development council members.--
     When carrying out a program or activity authorized by a State 
     rural development council or this subtitle, a member of the 
     council shall be regarded as a full-time employee of the 
     Federal Government for purposes of chapter 171 of title 28, 
     United States Code, and the Federal Advisory Committee Act (5 
     U.S.C. App.).
       ``(7) Federal participation in state rural development 
     councils.--
       ``(A) In general.--The State Director for Rural Development 
     of a State, other employees of the Department of Agriculture, 
     and employees of other Federal agencies that elect to 
     participate in the Partnership shall fully participate in the 
     governance and operations of State rural development councils 
     on an equal basis with other members of the State rural 
     development councils.
       ``(B) Conflicts.--A Federal employee who participates in a 
     State rural development council shall not participate in the 
     making of any council decision if the agency represented by 
     the Federal employee has any financial or other interest in 
     the outcome of the decision.
       ``(C) Federal guidance.--The Office of Government Ethics, 
     in consultation with the Attorney General, shall issue 
     guidance to all Federal employees that participate in State 
     rural development councils that describes specific decisions 
     that--
       ``(i) would constitute a conflict of interest for the 
     Federal employee; and
       ``(ii) from which the Federal employee must recuse himself 
     or herself.
       ``(e) Administrative Support of the Partnership.--
       ``(1) Detail of employees.--
       ``(A) In general.--In order to provide experience in 
     intergovernmental collaboration, the head of an agency with 
     rural responsibilities that elects to participate in the 
     Partnership may, and is encouraged to, detail an employee of 
     the agency with rural responsibilities to the Partnership 
     without reimbursement for a period of up to 12 months.
       ``(B) Civil service status.--The detail shall be without 
     interruption or loss of civil service status or privilege.
       ``(2) Additional support.--The Secretary shall provide for 
     any additional support staff to the Partnership as the 
     Secretary determines to be necessary to carry out the duties 
     of the Partnership.
       ``(f) Funding.--
       ``(1) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(B) Amount of financial assistance.--In providing 
     financial assistance to State rural development councils, the 
     Secretary and heads of other Federal agencies shall provide 
     assistance that, to the maximum extent practicable, is--
       ``(i) uniform in amount; and
       ``(ii) targeted to newly created State rural development 
     councils.
       ``(C) Federal share.--The Secretary shall develop a plan to 
     decrease, over time, the Federal share of the cost of the 
     core operations of State rural development councils.
       ``(2) Federal agencies.--
       ``(A) In general.--Notwithstanding any other provision of 
     law limiting the ability of an agency to provide funds to the 
     Partnership with other agencies, in order to carry out the 
     purposes described in subsection (b)(2), the Partnership 
     shall be eligible to receive grants, gifts, contributions, or 
     technical assistance from, or enter into contracts with, any 
     Federal agency.
       ``(B) Assistance.--Federal agencies are encouraged to use 
     funds made available for programs that target or have an 
     impact on rural areas to provide assistance to, and enter 
     into contracts with, the Partnership, as described in 
     subparagraph (A).
       ``(3) Contributions.--The Partnership may accept private 
     contributions.
       ``(4) Federal financial support for state rural development 
     councils.--Notwithstanding any other provision of law, a 
     Federal agency may use funds made available under paragraph 
     (1) or (2) to enter into a cooperative agreement, contract, 
     or other agreement with a State rural development council to 
     support the core operations of the State rural development 
     council, regardless of the legal form of organization of the 
     State rural development council.
       ``(g) Matching Requirements for State Rural Development 
     Councils.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State rural development council shall provide matching funds, 
     or in-kind goods or services, to support the activities of 
     the State rural development council in an amount that is not 
     less than 33 percent of the amount of Federal funds received 
     under an agreement under subsection (d)(1).
       ``(2) Exceptions to matching requirement for certain 
     federal funds.--Paragraph (1) shall not apply to funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance 
     received by a State rural development council from a Federal 
     agency that are used--
       ``(A) to support 1 or more specific program or project 
     activities; or
       ``(B) to reimburse the State rural development council for 
     services provided to the Federal agency providing the funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance.
       ``(h) Termination.--The authority provided under this 
     section shall terminate on the date that is 5 years after the 
     date of enactment of this section.''.

        Subtitle C--Consolidated Farm and Rural Development Act

     SEC. 621. WATER OR WASTE DISPOSAL GRANTS.

       Section 306(a)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(2)) is amended--
       (1) by striking ``(2) The'' and inserting the following:
       ``(2) Water, waste disposal, and wastewater facility 
     grants.--
       ``(A) Authority.--
       ``(i) In general.--The'';
       (2) by striking ``$590,000,000'' and inserting 
     ``$1,500,000,000'';
       (3) by striking ``The amount'' and inserting the following:
       ``(ii) Amount.--The amount'';
       (4) by striking ``paragraph'' and inserting 
     ``subparagraph'';
       (5) by striking ``The Secretary shall'' and inserting the 
     following:
       ``(iii) Grant rate.--The Secretary shall''; and
       (6) by adding at the end the following:
       ``(B) Revolving funds for financing water and wastewater 
     projects.--
       ``(i) In general.--The Secretary may make grants to 
     qualified private, nonprofit entities to capitalize revolving 
     funds for the purpose of providing financing to eligible 
     entities for--

       ``(I) predevelopment costs associated with proposed water 
     and wastewater projects or with existing water and wastewater 
     systems; and
       ``(II) short-term costs incurred for replacement equipment, 
     small-scale extension services, or other small capital 
     projects that are not part of the regular operations and 
     maintenance activities of existing water and wastewater 
     systems.

       ``(ii) Eligible entities.--To be eligible to obtain 
     financing from a revolving fund under clause (i), an eligible 
     entity shall be eligible to obtain a loan, loan guarantee, or 
     grant under paragraph (1) or this paragraph.
       ``(iii) Maximum amount of financing.--The amount of 
     financing made to an eligible entity under this subparagraph 
     shall not exceed--

       ``(I) $100,000 for costs described in clause (i)(I); and
       ``(II) $100,000 for costs described in clause (i)(II).

       ``(iv) Term.--The term of financing provided to an eligible 
     entity under this subparagraph shall not exceed 10 years.
       ``(v) Administration.--The Secretary shall limit the amount 
     of grant funds that may be used by a grant recipient for 
     administrative costs incurred under this subparagraph.
       ``(vi) Annual report.--A nonprofit entity receiving a grant 
     under this subparagraph shall submit an annual report to the 
     Secretary that describes the number and size of communities 
     served and the type of financing provided.
       ``(vii) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $30,000,000 for each of fiscal years 2002 through 2006.''.

     SEC. 622. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended--
       (1) by striking ``$7,500,000'' and inserting 
     ``$15,000,000''; and
       (2) by striking ``2002'' and inserting ``2006''.

     SEC. 623. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by added at the 
     end the following:
       ``(22) Rural water and wastewater circuit rider program.--
       ``(A) In general.--The Secretary shall establish a national 
     rural water and wastewater circuit rider program that is 
     based on the rural water circuit rider program of the 
     National Rural Water Association that (as of the date of 
     enactment of this paragraph) receives funding from the 
     Secretary, acting through the Rural Utilities Service.
       ``(B) Relationship to existing program.--The program 
     established under subparagraph (A) shall not affect the 
     authority of the Secretary to carry out the circuit rider 
     program for which funds are made available under the heading 
     ``Rural Community Advancement Program'' of title III of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2002.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $15,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 624. MULTIJURISDICTIONAL REGIONAL PLANNING 
                   ORGANIZATIONS.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     623) is amended by added at the end the following:
       ``(23) Multijurisdictional regional planning 
     organizations.--
       ``(A) Grants.--The Secretary shall provide grants to 
     multijurisdictional regional planning and development 
     organizations to pay the Federal share of the cost of 
     providing assistance to local governments to improve the 
     infrastructure, services, and business development 
     capabilities of local governments and local economic 
     development organizations.
       ``(B) Priority.--In determining which organizations will 
     receive a grant under this paragraph, the Secretary shall 
     provide a priority to an organization that--
       ``(i) serves a rural area that, during the most recent 5-
     year period--

[[Page S1077]]

       ``(I) had a net out-migration of inhabitants, or other 
     population loss, from the rural area that equals or exceeds 5 
     percent of the population of the rural area; or
       ``(II) had a median household income that is less than the 
     nonmetropolitan median household income of the applicable 
     State; and

       ``(ii) has a history of providing substantive assistance to 
     local governments and economic development organizations.
       ``(C) Federal share.--A grant provided under this paragraph 
     shall be for not more than 75 percent of the cost of 
     providing assistance described in subparagraph (A).
       ``(D) Maximum amount of grants.--The amount of a grant 
     provided to an organization under this paragraph shall not 
     exceed $100,000.
       ``(E) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $30,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING 
                   EXPERTISE.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     624) is amended by added at the end the following:
       ``(24) Certified nonprofit organizations sharing 
     expertise.--
       ``(A) Certified organizations.--
       ``(i) In general.--To be certified by the Secretary to 
     provide technical assistance in 1 or more rural development 
     fields, an organization shall--

       ``(I) be a nonprofit organization (which may include an 
     institution of higher education) with experience in providing 
     technical assistance in the applicable rural development 
     field;
       ``(II) develop a plan, approved by the Secretary, 
     describing the manner in which grant funds will be used and 
     the source of non-Federal funds; and
       ``(III) meet such other criteria as the Secretary may 
     establish, based on the needs of eligible entities for the 
     technical assistance.

       ``(iii) List.--The Secretary shall make available to the 
     public a list of certified organizations in each area that 
     the Secretary determines have substantial experience in 
     providing the assistance described in subparagraph (B).
       ``(B) Grants.--The Secretary may provide grants to 
     certified organizations to pay for costs of providing 
     technical assistance to local governments and nonprofit 
     entities to improve the infrastructure, services, and 
     business development capabilities of local governments and 
     local economic development organizations.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $20,000,000 
     for each of fiscal years 2003 through 2006.''.

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

       (a) Loan Guarantees for Water, Wastewater, and Essential 
     Community Facilities Loans.--Section 306(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1925(a)) (as amended by section 625) is amended by adding at 
     the end the following:
       ``(25) Loan guarantees for water, wastewater, and essential 
     community facilities loans.--
       ``(A) In general.--The Secretary may guarantee under this 
     title a loan made to finance a community facility or water or 
     waste facility project, including a loan financed by the net 
     proceeds of a bond described in section 144(a)(12)(B)(ii) of 
     the Internal Revenue Code of 1986.
       ``(B) Requirements.--To be eligible for a loan guarantee 
     under subparagraph (A), an individual or entity offering to 
     purchase the loan must demonstrate to the Secretary that the 
     person has--
       ``(i) the capabilities and resources necessary to service 
     the loan in a manner that ensures the continued performance 
     of the loan, as determined by the Secretary; and
       ``(ii) the ability to generate capital to provide borrowers 
     of the loan with the additional credit necessary to properly 
     service the loan.''.
       (b) Loan Guarantees for Certain Loans.--Section 310B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1932) 
     is amended by adding at the end the following:
       ``(h) Loan Guarantee for Certain Loans.--The Secretary may 
     guarantee loans made in subsection (a) to finance the 
     issuance of bonds for the projects described in section 
     306(a)(25).''.

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

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     626(a)) is amended by adding at the end the following:
       ``(26) Rural firefighters and emergency medical personnel 
     grant program.--
       ``(A) In general.--The Secretary may make grants to units 
     of general local government and Indian tribes (as defined in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)) to pay the cost of training 
     firefighters and emergency medical personnel in firefighting, 
     emergency medical practices, and responding to hazardous 
     materials and bioagents in rural areas.
       ``(B) Use of funds.--
       ``(i) Scholarships.--

       ``(I) In general.--Not less than 60 percent of the amounts 
     made available for competitively awarded grants under this 
     paragraph shall be used to provide grants to fund partial 
     scholarships for training of individuals at training centers 
     approved by the Secretary.
       ``(II) Priority.--In awarding grants under this clause, the 
     Secretary shall give priority to grant applicants with 
     relatively low transportation costs considering the location 
     of the grant applicant and the proposed location of the 
     training.

       ``(ii) Grants for training centers.--

       ``(I) Existing centers.--

       ``(aa) In general.--A grant under subparagraph (A) may be 
     used to provide financial assistance to State and regional 
     centers that provide training for firefighters and emergency 
     medical personnel for improvements to the training facility, 
     equipment, curricula, and personnel.
       ``(bb) Limitation.--Not more than $2,000,000 shall be 
     provided to any single training center for any fiscal year 
     under this subclause.

       ``(II) Establishment of new centers.--

       ``(aa) In general.--A grant under subparagraph (A) may be 
     used to provide the Federal share of the costs of 
     establishing a regional training center for firefighters and 
     emergency medical personnel.
       ``(bb) Federal share.--The amount of a grant under this 
     subclause for a training center shall not exceed 50 percent 
     of the cost of establishing the training center.
       ``(C) Funding.--
       ``(i) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture to carry out this 
     paragraph--

       ``(I) not later than 30 days after the date of enactment of 
     this Act, $10,000,000; and
       ``(II) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $30,000,000.

       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under clause (i), without 
     further appropriation.
       ``(iii) Availability of funds.--Funds transferred under 
     clause (i) shall remain available until expended.''.

     SEC. 628. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                   FACILITIES.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     627) is amended by adding at the end the following:
       ``(27) Tribal college and university essential community 
     facilities.--
       ``(A) In general.--The Secretary may make grants to tribal 
     colleges and universities (as defined in section 316 of the 
     Higher Education Act of 1965 (20 U.S.C. 1059c)) to provide 
     the Federal share of the cost of developing specific tribal 
     college or university 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 
     maximum percentage of the cost of the facility that may be 
     covered by a grant under this paragraph.
       ``(ii) Maximum amount.--The amount of a grant provided 
     under this paragraph for a facility shall not exceed 75 
     percent of the cost of developing the facility.
       ``(iii) Graduated scale.--The Secretary shall provide for a 
     graduated scale of the percentages of the cost covered by a 
     grant made under this paragraph, with higher percentages for 
     facilities in communities that have lower community 
     population and income levels, as determined by the Secretary.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $10,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 629. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

       Section 306A(i) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926a(i)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 630. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN 
                   TRIBES.

       Section 306C of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926c(e)) is amended by striking subsection (e) 
     and inserting the following:
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), there is 
     authorized to be appropriated--
       ``(A) for grants under this section, $30,000,000 for each 
     fiscal year;
       ``(B) for loans under this section, $30,000,000 for each 
     fiscal year; and
       ``(C) for grants under this section to benefit Indian 
     tribes (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     $20,000,000 for each fiscal year.
       ``(2) Exception.--An entity eligible to receive funding 
     through a grant made under section 306D shall not be eligible 
     for a grant from funds made available under subparagraph 
     (1)(C).''.

     SEC. 631. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       Section 306D(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
     ``and 2002'' and inserting ``through 2006''.

     SEC. 632. RURAL BUSINESS ENTERPRISE GRANTS.

       Section 310B(c)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(c)(1)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(A) Grants.--The Secretary''; and
       (2) by adding at the end the following:
       ``(B) Small and emerging private business enterprises.--
       ``(i) In general.--For the purpose of subparagraph (A), a 
     small and emerging private business enterprise shall include 
     (regardless of the number of employees or operating capital 
     of the enterprise) an eligible nonprofit entity, or other tax 
     exempt organization, with a principal office in an area that 
     is located--

       ``(I) on land of an existing or former Native American 
     reservation; and
       ``(II) in a city, town, or unincorporated area that has a 
     population of no more than 5,000 inhabitants.

       ``(ii) Use of grant.--An eligible nonprofit entity, or 
     other tax exempt organization, described

[[Page S1078]]

     in clause (i) may use assistance provided under this 
     paragraph to create, expand, or operate value-added 
     processing in an area described in clause (i) in connection 
     with production agriculture.
       ``(iii) Priority.--In making grants under this paragraph, 
     the Secretary shall give priority to grants that will be used 
     to provide assistance to eligible nonprofit entities and 
     other tax exempt organizations described in clause (i).''.

     SEC. 633. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       Section 310B(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(e)) is amended--
       (1) in paragraph (5)(F), before the period at the end the 
     following: ``, except that the Secretary shall not require 
     non-Federal financial support in an amount that is greater 
     than 5 percent in the case of a 1994 institution (as defined 
     in section 532 of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382))''; and
       (2) in paragraph (9), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 634. GRANTS TO BROADCASTING SYSTEMS.

       Section 310B(f) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(f)) is amended by adding at 
     the end the following:
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2002 through 2006.''.

     SEC. 635. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

       Section 3l0B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended by striking subsection (g) and 
     inserting the following:
       ``(g) Business and Industry Direct and Guaranteed Loans.--
       ``(1) Loan guarantees for the purchase of cooperative 
     stock.--
       ``(A) New and expanding cooperatives.--
       ``(i) In general.--The Secretary may guarantee a loan under 
     subsection (a) to farmers, ranchers, or cooperatives for the 
     purpose of purchasing start-up capital stock for the 
     expansion or creation of a cooperative venture that will 
     process agricultural commodities or otherwise process value-
     added agricultural products.
       ``(ii) Financial condition.--In determining the 
     appropriateness of a loan guarantee under this subparagraph, 
     the Secretary--

       ``(I) shall fully review the feasibility and other relevant 
     aspects of the cooperative venture to be established;
       ``(II) may not require a review of the financial condition 
     or statements of any individual farmer or rancher involved in 
     the cooperative, other than the applicant for a guarantee 
     under this subparagraph; and
       ``(III) shall base any guarantee, to the maximum extent 
     practicable, on the merits of the cooperative venture to be 
     established.

       ``(iii) Collateral.--As a condition of making a loan 
     guarantee under this subparagraph, the Secretary may not 
     require additional collateral by a farmer or rancher, other 
     than stock purchased or issued pursuant to the loan and 
     guarantee of the loan.
       ``(iv) Eligibility.--To be eligible for a loan guarantee 
     under this subparagraph, a farmer or rancher must produce the 
     agricultural commodity that will be processed by the 
     cooperative.
       ``(v) Processing contracts during initial period.--The 
     cooperative, for which a farmer or rancher receives a 
     guarantee to purchase stock under this subparagraph, may 
     contract for services to process agricultural commodities, or 
     otherwise process value-added agricultural products, during 
     the 5-year period beginning on the date of the startup of the 
     cooperative in order to provide adequate time for the 
     planning and construction of the processing facility of the 
     cooperative.
       ``(B) Existing cooperatives.--The Secretary may guarantee a 
     loan under subsection (a) to a farmer or rancher to join a 
     cooperative in order to sell the agricultural commodities or 
     products produced by the farmer or rancher.
       ``(C) Financial information.--Financial information 
     required by the Secretary from a farmer or rancher as a 
     condition of making a loan guarantee under this paragraph 
     shall be provided in the manner generally required by 
     commercial agricultural lenders in the area.
       ``(2) Loans to cooperatives.--
       ``(A) In general.--The Secretary may make or guarantee a 
     loan under subsection (a) to a cooperative that is 
     headquartered in a metropolitan area if the loan is used for 
     a project or venture described in subsection (a) that is 
     located in a rural area.
       ``(B) Refinancing.--A cooperative organization owned by 
     farmers or ranchers that is eligible for a business and 
     industry loan under made or guaranteed under subsection (a) 
     shall be eligible to refinance an existing loan with a lender 
     if--
       ``(i) the cooperative organization--

       ``(I) is current and performing with respect to the 
     existing loan; and
       ``(II) is not, and has not been, in payment default, or the 
     collateral has not been converted, with respect to the 
     existing loan; and

       ``(ii) there is adequate security or full collateral for 
     the refinanced loan.
       ``(3) Business and industry loan appraisals.--The Secretary 
     may require that any appraisal made in connection with a 
     business and industry loan made or guaranteed under 
     subsection (a) be conducted by a specialized appraiser that 
     uses standards that are similar to standards used for similar 
     purposes in the private sector, as determined by the 
     Secretary.
       ``(4) Fees.--The Secretary may assess a 1-time fee for any 
     loan guaranteed under subsection (a) in an amount that does 
     not exceed 2 percent of the guaranteed principal portion of 
     the loan.''.

     SEC. 636. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) (as amended by section 626(b)) is amended 
     by adding at the end the following:
       ``(i) Value-Added Intermediary Relending Program.--
       ``(1) In general.--In accordance with this subsection, the 
     Secretary shall make loans under the terms and conditions of 
     the intermediary relending program established under section 
     1323(b)(2)(C) of the Food Security Act of 1985 (7 U.S.C. 1932 
     note; Public Law 99-198).
       ``(2) Loans.--Using funds made available to carry out this 
     subsection, the Secretary shall make loans to eligible 
     intermediaries to make loans to ultimate recipients, under 
     the terms and conditions of the intermediary relending 
     program, for projects to establish, enlarge, and operate 
     enterprises that add value to agricultural commodities and 
     products of agricultural commodities.
       ``(3) Eligible intermediaries.--Intermediaries that are 
     eligible to receive loans under paragraph (2) shall include 
     State agencies.
       ``(4) Preference for bioenergy projects.--In making loans 
     using loan funds made available under paragraph (2), an 
     eligible intermediary shall give preference to bioenergy 
     projects in accordance with regulations promulgated by the 
     Secretary.
       ``(5) Composition of capital.--The capital for a project 
     carried out by an ultimate recipient and assisted with loan 
     funds made available under paragraph (2) shall be comprised 
     of--
       ``(A) not more than 15 percent of the total cost of a 
     project; and
       ``(B) not less than 50 percent of the equity funds provided 
     by agricultural producers.
       ``(6) Loan conditions.--
       ``(A) Terms of loans.--A loan made to an intermediary using 
     loan funds made available under paragraph (2) shall have a 
     term of not to exceed 30 years.
       ``(B) Interest.--The interest rate on such a loan shall 
     be--
       ``(i) in the case of each of the first 2 years of the loan 
     period, 0 percent; and
       ``(ii) in the case of each of the remaining years of the 
     loan period, 2 percent.
       ``(7) Limitations on amount of loan funds provided.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an intermediary or ultimate recipient shall be eligible to 
     receive not more than $2,000,000 of the loan funds made 
     available under paragraph (2).
       ``(B) State agencies.--Subparagraph (A) shall not apply in 
     the case of a State agency with respect to loan funds 
     provided to the State agency as an intermediary.
       ``(8) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $15,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 637. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
                   PURPOSES.

       Subtitle A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1921 et seq.) (as amended by section 508) is 
     amended by adding at the end the following:

     ``SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR 
                   OTHER PURPOSES.

       ``If, after making a loan or a grant described in section 
     381E(d), the Secretary determines that the circumstances 
     under which the loan or grant was made have sufficiently 
     changed to make the project or activity for which the loan or 
     grant was made available no longer appropriate, the Secretary 
     may allow the loan borrower or grant recipient to use 
     property (real and personal) purchased or improved with the 
     loan or grant funds, or proceeds from the sale of property 
     (real and personal) purchased with such funds, for another 
     project or activity that (as determined by the Secretary)--
       ``(1) will be carried out in the same area as the original 
     project or activity;
       ``(2) meets the criteria for a loan or a grant described in 
     section 381E(d); and
       ``(3) satisfies such additional requirements as are 
     established by the Secretary.''.

     SEC. 638. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

       Section 333A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1983a) (as amended by section 526) is amended 
     by striking subsection (g) and inserting the following:
       ``(g) Simplified Application Forms for Loan Guarantees.--
       ``(1) In general.--The Secretary shall provide to lenders a 
     short, simplified application form for guarantees under this 
     title of--
       ``(A) farmer program loans the principal amount of which is 
     $100,000 or less; and
       ``(B) business and industry guaranteed loans under section 
     310B(a)(1) the principal amount of which is--
       ``(i) in the case of a loan guarantee made during fiscal 
     year 2002 or 2003, $400,000 or less; and
       ``(ii) in the case of a loan guarantee made during any 
     subsequent fiscal year--

       ``(I) $400,000 or less; or
       ``(II) if the Secretary determines that there is not a 
     significant increased risk of a default on the loan, $600,000 
     or less.

       ``(2) Water and waste disposal grants and loans.--The 
     Secretary shall develop an application process that 
     accelerates, to the maximum extent practicable, the 
     processing of applications for water and waste disposal 
     grants or direct or guaranteed loans under paragraph (1) or 
     (2) of section 306(a) the grant award amount or principal 
     loan amount, respectively, of which is $300,000 or less.
       ``(3) Administration.--In developing an application under 
     this subsection, the Secretary shall--
       ``(A) consult with commercial and cooperative lenders; and
       ``(B) ensure that--

[[Page S1079]]

       ``(i) the form can be completed manually or electronically, 
     at the option of the lender;
       ``(ii) the form minimizes the documentation required to 
     accompany the form;
       ``(iii) the cost of completing and processing the form is 
     minimal; and
       ``(iv) the form can be completed and processed in an 
     expeditious manner.''.

     SEC. 639. DEFINITION OF RURAL AND RURAL AREA.

       (a) In General.--Section 343(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
     adding at the end the following:
       ``(13) Rural and rural area.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the terms `rural' and `rural area' mean 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.
       ``(B) Water and waste disposal grants and direct and 
     guaranteed loans.--For the purpose of water and waste 
     disposal grants and direct and guaranteed loans provided 
     under paragraphs (1) and (2) of section 306(a), the terms 
     `rural' and `rural area' mean a city, town, or unincorporated 
     area that has a population of no more than 10,000 
     inhabitants.
       ``(C) Community facility loans and grants.--For the purpose 
     of community facility direct and guaranteed loans and grants 
     under paragraphs (1), (19), (20), and (21) of section 306(a), 
     the terms `rural' and `rural area' mean a city, town, or 
     unincorporated area that has a population of no more than 
     50,000 inhabitants.
       ``(D) Business and industry direct and guaranteed loans.--
     For the purpose of business and industry direct and 
     guaranteed loans under section 310B(a)(1), the terms `rural' 
     and `rural area' mean any area other than a city or town that 
     has a population of greater than 50,000 inhabitants and the 
     immediately adjacent urbanized area of such city or town.
       ``(E) Multijurisdictional regional planning organizations; 
     national rural development partnership.--In sections 
     306(a)(23) and 377, the term `rural area' means--
       ``(i) all the territory of a State that is not within the 
     boundary of any standard metropolitan statistical area; and
       ``(ii) all territory within any standard metropolitan 
     statistical area within a census tract having a population 
     density of less than 20 persons per square mile, as 
     determined by the Secretary according to the most recent 
     census of the United States as of any date.
       ``(F) Rural entrepreneurs and microenterprise assistance 
     program; national rural cooperative and business equity fund; 
     rural business investment program.--In section 378 and 
     subtitles G and H, the term `rural area' means an area that 
     is located--
       ``(i) outside a standard metropolitan statistical area; or
       ``(ii) within a community that has a population of 50,000 
     inhabitants or less.''.
       (b) Conforming Amendments.--
       (1) Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by striking 
     paragraph (7).
       (2) Section 381A of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively.
       (3) Section 735 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 1999 (112 Stat. 2681-29) is repealed.

     SEC. 640. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE 
                   PROGRAM.

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

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

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

[[Page S1080]]

       ``(B) Limitation on grant amount.--No single qualified 
     organization may receive more than 10 percent of the total 
     funds that are made available for a fiscal year to carry out 
     this section.
       ``(C) Administrative expenses.--Not more than 15 percent of 
     assistance received by a qualified organization for a fiscal 
     year under this section may be used for administrative 
     expenses.
       ``(d) Subgrants.--Subject to such regulations as the 
     Secretary may promulgate, a qualified organization that 
     receives a grant under this section may use the grant to 
     provide assistance to other qualified organizations, such as 
     small or emerging qualified organizations.
       ``(e) Low-Income Individuals.--The Secretary shall ensure 
     that not less than 50 percent of the grants made under this 
     section is used to benefit low-income individuals identified 
     by the Secretary, including individuals residing on Indian 
     reservations.
       ``(f) Diversity.--In making grants under this section, the 
     Secretary shall ensure, to the maximum extent practicable, 
     that grant recipients include qualified organizations--
       ``(1) of varying sizes; and
       ``(2) that serve racially and ethnically diverse 
     populations.
       ``(g) Cost Sharing.--
       ``(1) Federal share.--The Federal share of the cost of a 
     project carried out using funds from a grant under this 
     section shall be 75 percent.
       ``(2) Form of non-federal share.--The non-Federal share of 
     the cost of a project described in paragraph (1) may be 
     provided--
       ``(A) in cash (including through fees, grants (including 
     community development block grants), and gifts); or
       ``(B) in kind.
       ``(h) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $10,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 641. RURAL SENIORS.

       (a) Interagency Coordinating Committee for Rural Seniors.--
     Subtitle D of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 1981 et seq.) (as amended by section 640) is 
     amended by adding at the end the following:

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

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

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

       ``(a) In General.--The Secretary shall make grants to 
     nonprofit organizations (including cooperatives) to pay the 
     Federal share of the cost of programs that--
       ``(1) provide facilities, equipment, and technology for 
     seniors in a rural area; and
       ``(2) may be replicated in other rural areas.
       ``(b) Federal Share.--The Federal share of a grant under 
     this section shall be not more than 20 percent of the cost of 
     a program described in subsection (a).
       ``(c) Leveraging.--In selecting programs to receive grants 
     under section, the Secretary shall give priority to proposals 
     that leverage resources to meet multiple rural community 
     goals.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2003 through 2006.''.
       (c) Reservation of Community Facilities Program Funds for 
     Senior Facilities.--Section 306(a)(19) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) is 
     amended by adding at the end the following:
       ``(C) Reservation of funds for senior facilities.--
       ``(i) In general.--For each fiscal year, not less than 12.5 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing senior 
     facilities, or carrying out other projects that mainly 
     benefit seniors, in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 642. CHILDREN'S DAY CARE FACILITIES.

       Section 306(a)(19) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(19)) (as amended by section 
     641(c)) is amended by adding at the end the following:
       ``(D) Reservation of funds for children's day care 
     facilities.--
       ``(i) In general.--For each fiscal year, not less than 10 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing day care 
     facilities for children in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 643. RURAL TELEWORK.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 641(b)) is 
     amended by adding at the end the following:

     ``SEC. 379B. RURAL TELEWORK.

       ``(a) Definitions.--In this section:
       ``(1) Eligible organization.--The term `eligible 
     organization' means a nonprofit entity, an educational 
     institution, an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)), or any other organization that meets the 
     requirements of this section and such other requirements as 
     are established by the Secretary.
       ``(2) Institute.--The term `institute' means a regional 
     rural telework institute established using a grant under 
     subsection (b).
       ``(3) Telework.--The term `telework' means the use of 
     telecommunications to perform work functions at a rural work 
     center located outside the place of business of an employer.
       ``(b) Rural Telework Institute.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible organization to pay the Federal share of the cost of 
     establishing and operating a national rural telework 
     institute to carry out projects described in paragraph (4).
       ``(2) Eligible organizations.--The Secretary shall 
     establish criteria that an organization shall meet to be 
     eligible to receive a grant under this subsection.
       ``(3) Deadline for initial grant.--Not later than 1 year 
     after the date on which funds are first made available to 
     carry out this subsection, the Secretary shall make the 
     initial grant under this subsection.
       ``(4) Projects.--The institute shall use grant funds 
     obtained under this subsection to carry out a 5-year 
     project--
       ``(A) to serve as a clearinghouse for telework research and 
     development;
       ``(B) to conduct outreach to rural communities and rural 
     workers;
       ``(C) to develop and share best practices in rural telework 
     throughout the United States;
       ``(D) to develop innovative, market-driven telework 
     projects and joint ventures with the private sector that 
     employ workers in rural areas in jobs that promote economic 
     self-sufficiency;
       ``(E) to share information about the design and 
     implementation of telework arrangements;
       ``(F) to support private sector businesses that are 
     transitioning to telework;
       ``(G) to support and assist telework projects and 
     individuals at the State and local level; and
       ``(H) to perform such other functions as the Secretary 
     considers appropriate.
       ``(5) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to--
       ``(i) during each of the first, second, and third years of 
     a project, 50 percent of the amount of the grant; and
       ``(ii) during each of the fourth and fifth years of the 
     project, 100 percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Form.--The non-Federal contributions required under 
     subparagraph (A) may be in the form of in-kind contributions, 
     including office equipment, office space, and services.
       ``(c) Telework Grants.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall make grants to eligible entities to pay 
     the Federal share of the cost of--
       ``(A) obtaining equipment and facilities to establish or 
     expand telework locations in rural areas; and
       ``(B) operating telework locations in rural areas.
       ``(2) Eligible organizations.--To be eligible to receive a 
     grant under this subsection, an eligible entity shall--
       ``(A) be a nonprofit organization or educational 
     institution in a rural area; and
       ``(B) submit to, and receive the approval of, the Secretary 
     of an application for the grant

[[Page S1081]]

     that demonstrates that the eligible entity has adequate 
     resources and capabilities to establish or expand a telework 
     location in a rural area.
       ``(3) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to 50 
     percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Sources.--The non-Federal contributions required 
     under subparagraph (A)--
       ``(i) may be in the form of in-kind contributions, 
     including office equipment, office space, and services; and
       ``(ii) may not be made from funds made available for 
     community development block grants under title I of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 5301 
     et seq.).
       ``(4) Duration.--The Secretary may not provide a grant 
     under this subsection to establish, expand, or operate a 
     telework location in a rural area after the date that is 2 
     years after the establishment of the telework location.
       ``(5) Maximum amount of grant.--The amount of a grant 
     provided to an eligible entity under this subsection shall 
     not exceed $500,000.
       ``(d) Applicability of Certain Federal Law.--An entity that 
     receives funds under this section shall be subject to the 
     provisions of Federal law (including regulations), 
     administered by the Secretary of Labor or the Equal 
     Employment Opportunity Commission, that govern the 
     responsibilities of employers to employees.
       ``(e) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(f) Authorization of Appropriation.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2002 through 2006, of which $5,000,000 
     shall be provided to establish an institute under subsection 
     (b).''.

     SEC. 644. HISTORIC BARN PRESERVATION.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 643) is 
     amended by adding at the end the following:

     ``SEC. 379C. HISTORIC BARN PRESERVATION.

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

     SEC. 645. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 644)) is 
     amended by adding at the end the following:

     ``SEC. 379D. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Rural Utilities Service, may make grants 
     to public and nonprofit entities for the Federal share of the 
     cost of acquiring radio transmitters to increase coverage of 
     rural areas by the emergency weather radio broadcast system 
     of the National Oceanic and Atmospheric Administration.
       ``(b) Eligibility.--To be eligible for a grant under this 
     section, an applicant shall provide to the Secretary--
       ``(1) a binding commitment from a tower owner to place the 
     transmitter on a tower; and
       ``(2) a description of how the tower placement will 
     increase coverage of a rural area by the emergency weather 
     radio broadcast system of the National Oceanic and 
     Atmospheric Administration.
       ``(c) Federal Share.--A grant provided under this section 
     shall be not more than 75 percent of the cost of acquiring a 
     radio transmitter described in subsection (a).
       ``(d) Authorization.--There is authorized to be 
     appropriated to carry out this section $2,000,000 for each of 
     fiscal years 2002 through 2006.''.

     SEC. 646. GRANTS FOR TRAINING FARM WORKERS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 645) is 
     amended by adding at the end the following:

     ``SEC. 379E. GRANTS FOR TRAINING FARM WORKERS.

       ``(a) Definition of Eligible Organization.--In this 
     section, the term `eligible organization' means--
       ``(1) a nonprofit organization; or
       ``(2) a consortium of nonprofit organizations, 
     agribusinesses, State and local governments, agricultural 
     labor organizations, farmer cooperatives, or community-based 
     organizations;

     that has the ability to train farm workers.
       ``(b) Grants.--The Secretary shall make grants to eligible 
     organizations to provide training to farm workers--
       ``(1) on the use of technology in agriculture; and
       ``(2) to develop the specialized skills necessary to 
     produce higher value crops.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 647. DELTA REGIONAL AUTHORITY.

       (a) Supplements to Federal Grant Programs.--Section 382D of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-3) is amended to read as follows:

     ``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       ``(1) they lack the economic resources to provide the 
     required matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal law authorizing the Federal grant program 
     to meet pressing needs of the region.
       ``(b) Federal Grant Program Funding.--Notwithstanding any 
     provision of law limiting the Federal share, the areas 
     eligible for assistance, or the authorizations of 
     appropriations, under any Federal grant program, and in 
     accordance with subsection (c), the Authority, with the 
     approval of the Federal cochairperson and with respect to a 
     project to be carried out in the region, may--
       ``(1) increase the Federal share of the costs of a project 
     under any Federal grant program to not more than 90 percent 
     (except as provided in section 382F(b)); and
       ``(2) use amounts made available to carry out this subtitle 
     to pay all or a portion of the increased Federal share.
       ``(c) Certifications.--
       ``(1) In general.--In the case of any project for which all 
     or any portion of the basic Federal share of the costs of the 
     project is proposed to be paid under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law that authorizes the Federal 
     grant program certifies that the project--
       ``(A) meets (except as provided in subsection (b)) the 
     applicable requirements of the applicable Federal grant 
     program; and
       ``(B) could be approved for Federal contribution under the 
     Federal grant program if funds were available under the law 
     for the project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this Act in accordance with section 382I--
       ``(i) shall be controlling; and
       ``(ii) shall be accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--In the case of 
     any project described in paragraph (1), any finding, report, 
     certification, or documentation required to be submitted with 
     respect to the project to the head of the department, agency, 
     or instrumentality of the Federal Government responsible for 
     the administration

[[Page S1082]]

     of the Federal grant program under which the project is 
     carried out shall be accepted by the Federal 
     cochairperson.''.
       (b) Authorization of Appropriations.--Section 382M(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-12(a)) is amended by striking ``2002'' and inserting 
     ``2006''.
       (c) Termination of Authority.--Section 382N of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
     13) is amended by striking ``2002'' and inserting ``2006''.
       (d) Delta Region Agricultural Economic Development.--
     Subtitle D of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 1981 et seq.) (as amended by section 646) is 
     amended by adding at the end the following:

     ``SEC. 379F. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.

       ``(a) In General.--The Secretary may make grants to assist 
     in the development of state-of-the-art technology in animal 
     nutrition (including research and development of the 
     technology) and value-added manufacturing to promote an 
     economic platform for the Delta region (as defined in section 
     382A) to relieve severe economic conditions.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $7,000,000 for each of fiscal years 2002 through 2006.''.
       (e) Definition of Lower Mississippi.--Section 4(2)(I) of 
     the Delta Development Act (42 U.S.C. 3121 note; Public Law 
     100-460) is amended by inserting ``Butler, Conecuh, Escambia, 
     Monroe,'' after ``Russell,''.

     SEC. 648. SEARCH GRANTS FOR SMALL COMMUNITIES.

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

           ``Subtitle J--SEARCH Grants for Small Communities

     ``SEC. 386A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Council.--The term `council' means an independent 
     citizens' council established by section 386B(d).
       ``(2) Environmental project.--
       ``(A) In general.--The term `environmental project' means a 
     project that--
       ``(i) improves environmental quality; and
       ``(ii) is necessary to comply with an environmental law 
     (including a regulation).
       ``(B) Inclusion.--The term `environmental project' includes 
     an initial feasibility study of a project.
       ``(3) Region.--The term `region' means a geographic area of 
     a State, as determined by the Governor of the State.
       ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
     for special environmental assistance for the regulation of 
     communities and habitat awarded under section 386B(e)(3).
       ``(5) Small community.--The term `small community' means an 
     incorporated or unincorporated rural community with a 
     population of 2,500 inhabitants or less.
       ``(6) State.--The term `State' has the meaning given the 
     term in section 381A(1).

     ``SEC. 386B. SEARCH GRANT PROGRAM.

       ``(a) In General.--There is established the SEARCH Grant 
     Program.
       ``(b) Application.--
       ``(1) In general.--Not later than October 1 of each fiscal 
     year, a State may submit to the Secretary an application to 
     receive a grant under subsection (c) for the fiscal year.
       ``(2) Requirements.--An application under paragraph (1) 
     shall contain--
       ``(A) a certification by the State that the State has 
     appointed members to the council of the State under 
     subsection (c)(2)(C); and
       ``(B) such information as the Secretary may reasonably 
     require.
       ``(c) Grants to States.--
       ``(1) In general.--Not later than 60 days after the date on 
     which the Office of Management and Budget apportions any 
     amounts made available under this subtitle, for each fiscal 
     year after the date of enactment of this subtitle, the 
     Secretary shall, on request by a State--
       ``(A) determine whether any application submitted by the 
     State under subsection (b) meets the requirements of 
     subsection (b)(2); and
       ``(B) subject to paragraph (2), subsection (e)(4)(B)(ii), 
     and section 386D(b), if the Secretary determines that the 
     application meets the requirements of subsection (b)(2), 
     award a grant of not to exceed $1,000,000 to the State, to be 
     used by the council of the State to award SEARCH grants under 
     subsection (e).
       ``(2) Grants to certain states.--The aggregate amount of 
     grants awarded to States other than Alaska, Hawaii, or 1 of 
     the 48 contiguous States, under this subsection shall not 
     exceed $1,000,000 for any fiscal year.
       ``(d) Independent Citizens' Council.--
       ``(1) Establishment.--There is established in each State an 
     independent citizens' council to carry out the duties 
     described in this section.
       ``(2) Composition.--
       ``(A) In general.--Each council shall be composed of 9 
     members, appointed by the Governor of the State.
       ``(B) Representation; residence.--Each member of a council 
     shall--
       ``(i) represent an individual region of the State, as 
     determined by the Governor of the State in which the council 
     is established;
       ``(ii) reside in a small community of the State; and
       ``(iii) be representative of the populations of the State.
       ``(C) Appointment.--Before a State receives funds under 
     this subtitle, the State shall appoint members to the council 
     for the fiscal year, except that not more than 1 member shall 
     be an agent, employee, or official of the State government.
       ``(D) Chairperson.--Each council shall select a chairperson 
     from among the members of the council, except that a member 
     who is an agent, employee, or official of the State 
     government shall not serve as chairperson.
       ``(E) Federal representation.--
       ``(i) In general.--An officer, employee, or agent of the 
     Federal Government may participate in the activities of the 
     council--

       ``(I) in an advisory capacity; and
       ``(II) at the invitation of the council.

       ``(ii) Rural development state directors.--On the request 
     of the council of a State, the State Director for Rural 
     Development of the State shall provide advice and 
     consultation to the council.
       ``(3) SEARCH grants.--
       ``(A) In general.--Each council shall review applications 
     for, and recommend awards of, SEARCH grants to small 
     communities that meet the eligibility criteria under 
     subsection (c).
       ``(B) Recommendations.--In awarding a SEARCH grant, a 
     State--
       ``(i) shall follow the recommendations of the council of 
     the State;
       ``(ii) shall award the funds for any recommended 
     environmental project in a timely and expeditious manner; and
       ``(iii) shall not award a SEARCH grant to a grantee or 
     project in violation of any law of the State (including a 
     regulation).
       ``(C) No matching requirement.--A small community that 
     receives a SEARCH grant under this section shall not be 
     required to provide matching funds.
       ``(e) SEARCH Grants for Small Communities.--
       ``(1) Eligibility.--A SEARCH grant shall be awarded under 
     this section only to a small community for 1 or more 
     environmental projects for which the small community--
       ``(A) needs funds to carry out initial feasibility or 
     environmental studies before applying to traditional funding 
     sources; or
       ``(B) demonstrates, to the satisfaction of the council, 
     that the small community has been unable to obtain sufficient 
     funding from traditional funding sources.
       ``(2) Application.--
       ``(A) Date.--The council shall establish such deadline by 
     which small communities shall submit applications for grants 
     under this section as will permit the council adequate time 
     to review and make recommendations relating to the 
     applications.
       ``(B) Location of application.--A small community shall 
     submit an application described in subparagraph (A) to the 
     council in the State in which the small community is located.
       ``(C) Content of application.--An application described in 
     subparagraph (A) shall include--
       ``(i) a description of the proposed environmental project 
     (including an explanation of how the project would assist the 
     small community in complying with an environmental law 
     (including a regulation));
       ``(ii) an explanation of why the project is important to 
     the small community;
       ``(iii) a description of all actions taken with respect to 
     the project, including a description of any attempt to secure 
     funding and a description of demonstrated need for funding 
     for the project, as of the date of the application; and
       ``(iv) a SEARCH grant application form provided by the 
     council, completed and with all required supporting 
     documentation.
       ``(3) Review and recommendation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than March 5 of each fiscal year, each council 
     shall--
       ``(i) review all applications received under paragraph (2); 
     and
       ``(ii) recommend for award SEARCH grants to small 
     communities based on--

       ``(I) an evaluation of the eligibility criteria under 
     paragraph (1); and
       ``(II) the content of the application.

       ``(B) Extension of deadline.--The State may extend the 
     deadline described in subparagraph (A) by not more than 10 
     days in a case in which the receipt of recommendations from a 
     council under subparagraph (A)(ii) is delayed because of 
     circumstances beyond the control of the council, as 
     determined by the State.
       ``(4) Unexpended funds.--
       ``(A) In general.--If, for any fiscal year, any unexpended 
     funds remain after SEARCH grants are awarded under subsection 
     (d)(3)(B), the council may repeat the application and review 
     process so that any remaining funds may be recommended for 
     award, and awarded, not later than July 30 of the fiscal 
     year.
       ``(B) Retention of funds.--
       ``(i) In general.--Any unexpended funds that are not 
     awarded under subsection (d)(3)(B) or subparagraph (A) shall 
     be retained by the State for award during the following 
     fiscal year.
       ``(ii) Limitation.--A State that accumulates a balance of 
     unexpended funds described in clause (i) of more than 
     $3,000,000 shall be ineligible to apply for additional funds 
     for SEARCH grants until such time as the State expends the 
     portion of the balance that exceeds $3,000,000.

     ``SEC. 386C. REPORT.

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

[[Page S1083]]

     awarded for any fiscal year before the fiscal year in which 
     the report is submitted.

     ``SEC. 386D. FUNDING.

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

     SEC. 649. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 648) is amended by adding at the end the 
     following:

         ``Subtitle K--Northern Great Plains Regional Authority

     ``SEC. 387A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authority.--The term `Authority' means the Northern 
     Great Plains Regional Authority established by section 387B.
       ``(2) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) implementing the recommendations of the Northern 
     Great Plains Rural Development Commission established by the 
     Northern Great Plains Rural Development Act (7 U.S.C. 2661 
     note; Public Law 103-318);
       ``(B) acquiring or developing land;
       ``(C) constructing or equipping a highway, road, bridge, or 
     facility;
       ``(D) carrying out other economic development activities; 
     or
       ``(E) conducting research activities related to the 
     activities described in subparagraphs (A) through (D).
       ``(3) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(4) Region.--The term `region' means the States of Iowa, 
     Minnesota, Nebraska, North Dakota, and South Dakota.

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

       ``(a) Establishment.--
       ``(1) In general.--There is established the Northern Great 
     Plains Regional Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     by and with the advice and consent of the Senate;
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority; and
       ``(C) a member of an Indian tribe, who shall be a 
     chairperson of an Indian tribe in the region or a designee of 
     such a chairperson, to be appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(3) Cochairpersons.--The Authority shall be headed by--
       ``(A) the Federal member, who shall serve--
       ``(i) as the Federal cochairperson; and
       ``(ii) as a liaison between the Federal Government and the 
     Authority;
       ``(B) a State cochairperson, who--
       ``(i) shall be a Governor of a participating State in the 
     region; and
       ``(ii) shall be elected by the State members for a term of 
     not less than 1 year; and
       ``(C) the member of an Indian tribe, who shall serve--
       ``(i) as the tribal cochairperson; and
       ``(ii) as a liaison between the governments of Indian 
     tribes in the region and the Authority.
       ``(b) Alternate Members.--
       ``(1) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(2) State alternates.--
       ``(A) In general.--The State member of a participating 
     State may have a single alternate, who shall be--
       ``(i) a resident of that State; and
       ``(ii) appointed by the Governor of the State.
       ``(B) Quorum.--A State alternate member shall not be 
     counted toward the establishment of a quorum of the members 
     of the Authority in any case in which a quorum of the State 
     members is required to be present.
       ``(3) Alternate tribal cochairperson.--The President shall 
     appoint an alternate tribal cochairperson, by and with the 
     advice and consent of the Senate.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (c), and no voting right of any member of the 
     Authority, shall be delegated to any person who is not--
       ``(A) a member of the Authority; or
       ``(B) entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--A decision by the Authority shall 
     require a majority vote of the Authority (not including any 
     member representing a State that is delinquent under 
     subsection (g)(2)(D)) to be effective.
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of an Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 387I.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the Federal, State, or Indian 
     tribe member for whom the alternate member is an alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs to establish priorities and 
     approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, tribal, and 
     local planning and development activities in the region;
       ``(2) not later than 220 days after the date of enactment 
     of this subtitle, establish priorities in a development plan 
     for the region (including 5-year regional outcome targets);
       ``(3) assess the needs and assets of the region based on 
     available research, demonstrations, investigations, 
     assessments, and evaluations of the region prepared by 
     Federal, State, tribal, and local agencies, universities, 
     local development districts, and other nonprofit groups;
       ``(4) formulate and recommend to the Governors and 
     legislatures of States that participate in the Authority 
     forms of interstate cooperation;
       ``(5) work with State, tribal, and local agencies in 
     developing appropriate model legislation;
       ``(6)(A) enhance the capacity of, and provide support for, 
     local development districts in the region; or
       ``(B) if no local development district exists in an area in 
     a participating State in the region, foster the creation of a 
     local development district;
       ``(7) encourage private investment in industrial, 
     commercial, and other economic development projects in the 
     region; and
       ``(8) cooperate with and assist State governments with 
     economic development programs of participating States.
       ``(e) Administration.--In carrying out subsection (d), the 
     Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute a description of the 
     proceedings and reports on actions by the Authority as the 
     Authority considers appropriate;
       ``(2) authorize, through the Federal, State, or tribal 
     cochairperson or any other member of the Authority designated 
     by the Authority, the administration of oaths if the 
     Authority determines that testimony should be taken or 
     evidence received under oath;
       ``(3) request from any Federal, State, tribal, or local 
     agency such information as may be available to or procurable 
     by the agency that may be of use to the Authority in carrying 
     out the duties of the Authority;
       ``(4) adopt, amend, and repeal bylaws and rules governing 
     the conduct of business and the performance of duties of the 
     Authority;
       ``(5) request the head of any Federal agency to detail to 
     the Authority such personnel as the Authority requires to 
     carry out duties of the Authority, each such detail to be 
     without loss of seniority, pay, or other employee status;
       ``(6) request the head of any State agency, tribal 
     government, or local government to detail to the Authority 
     such personnel as the Authority requires to carry out duties 
     of the Authority, each such detail to be without loss of 
     seniority, pay, or other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government or tribal government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, or cooperative agreements with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State);
       ``(C) any Indian tribe in the region; or
       ``(D) any person, firm, association, or corporation; and
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select.
       ``(f) Federal Agency Cooperation.--A Federal agency shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide, on request of the Federal cochairperson, 
     appropriate assistance in carrying out this subtitle, in 
     accordance with applicable Federal laws (including 
     regulations).
       ``(g) Administrative Expenses.--
       ``(1) Federal share.--The Federal share of the 
     administrative expenses of the Authority shall be--
       ``(A) for fiscal year 2002, 100 percent;
       ``(B) for fiscal year 2003, 75 percent; and
       ``(C) for fiscal year 2004 and each fiscal year thereafter, 
     50 percent.
       ``(2) Non-federal share.--
       ``(A) In general.--The non-Federal share of the 
     administrative expenses of the Authority shall be paid by 
     non-Federal sources in the States that participate in the 
     Authority.
       ``(B) Share paid by each state.--The share of 
     administrative expenses of the Authority to be

[[Page S1084]]

     paid by non-Federal sources in each State shall be determined 
     by the Authority.
       ``(C) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (B).
       ``(D) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this subtitle shall be provided 
     to the State (including assistance to a political subdivision 
     or a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal and tribal cochairpersons.--The Federal 
     cochairperson and the tribal cochairperson shall be 
     compensated by the Federal Government at the annual rate of 
     basic pay prescribed for level III of the Executive Schedule 
     in subchapter II of chapter 53 of title 5, United States 
     Code.
       ``(2) Alternate federal and tribal cochairpersons.--The 
     alternate Federal cochairperson and the alternate tribal 
     cochairperson--
       ``(A) shall be compensated by the Federal Government at the 
     annual rate of basic pay prescribed for level V of the 
     Executive Schedule described in paragraph (1); and
       ``(B) when not actively serving as an alternate, shall 
     perform such functions and duties as are delegated by the 
     Federal cochairperson or the tribal cochairperson, 
     respectively.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by State law.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate member to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, tribal, local, or 
     intergovernmental agency from which the person was detailed; 
     or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation under clause (i) shall not 
     exceed the maximum rate for the Senior Executive Service 
     under section 5382 of title 5, United States Code, including 
     any applicable locality-based comparability payment that may 
     be authorized under section 5304(h)(2)(C) of that title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative duties of the 
     Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (e)(5)) shall be considered 
     to be a Federal employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, Indian tribe member, State alternate, 
     officer, or employee of the Authority shall participate 
     personally and substantially as a member, alternate, officer, 
     or employee of the Authority, through decision, approval, 
     disapproval, recommendation, the rendering of advice, 
     investigation, or otherwise, in any proceeding, application, 
     request for a ruling or other determination, contract, claim, 
     controversy, or other matter in which, to knowledge of the 
     member, alternate, officer, or employee--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision of the State or 
     the Indian tribe) of the member, alternate, officer, or 
     employee, in which the member, alternate, officer, or 
     employee is serving as officer, director, trustee, partner, 
     or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment;

     has a financial interest.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, Indian tribe member, alternate, officer, or 
     employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a potential conflict of 
     interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     Indian tribe member, alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4) or subsection (i) of this subtitle, 
     or sections 202 through 209 of title 18, United States Code.

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

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

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

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       ``(1) they lack the economic resources to provide the 
     required matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal law authorizing the Federal grant program 
     to meet pressing needs of the region.
       ``(b) Federal Grant Program Funding.--Notwithstanding any 
     provision of law limiting the Federal share, the areas 
     eligible for assistance, or the authorizations of 
     appropriations, under any Federal grant program, and in 
     accordance with subsection (c), the Authority, with the 
     approval of the Federal cochairperson and with respect to a 
     project to be carried out in the region, may--
       ``(1) increase the Federal share of the costs of a project 
     under any Federal grant program to not more than 90 percent 
     (except as provided in section 387F(b)); and
       ``(2) use amounts made available to carry out this subtitle 
     to pay all or a portion of the increased Federal share.
       ``(c) Certifications.--
       ``(1) In general.--In the case of any project for which all 
     or any portion of the basic Federal share of the costs of the 
     project is proposed to be paid under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law that authorizes the Federal 
     grant program certifies that the project--
       ``(A) meets (except as provided in subsection (b)) the 
     applicable requirements of the applicable Federal grant 
     program; and
       ``(B) could be approved for Federal contribution under the 
     Federal grant program if funds were available under the law 
     for the project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this Act in accordance with section 387I--
       ``(i) shall be controlling; and
       ``(ii) shall be accepted by the Federal agencies.

[[Page S1085]]

       ``(B) Acceptance by federal cochairperson.--In the case of 
     any project described in paragraph (1), any finding, report, 
     certification, or documentation required to be submitted with 
     respect to the project to the head of the department, agency, 
     or instrumentality of the Federal Government responsible for 
     the administration of the Federal grant program under which 
     the project is carried out shall be accepted by the Federal 
     cochairperson.

     ``SEC. 387E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS 
                   AND NORTHERN GREAT PLAINS INC.

       ``(a) Definition of Local Development District.--In this 
     section, the term `local development district' means an 
     entity--
       ``(1) that--
       ``(A) is a planning district in existence on the date of 
     enactment of this subtitle that is recognized by the Economic 
     Development Administration of the Department of Commerce; or
       ``(B) is--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) governed by a policy board with at least a simple 
     majority of members consisting of--

       ``(I) elected officials or employees of a general purpose 
     unit of local government who have been appointed to represent 
     the government; or
       ``(II) individuals appointed by the general purpose unit of 
     local government to represent the government;

       ``(iii) certified to the Authority as having a charter or 
     authority that includes the economic development of counties 
     or parts of counties or other political subdivisions within 
     the region--

       ``(I) by the Governor of each State in which the entity is 
     located; or
       ``(II) by the State officer designated by the appropriate 
     State law to make the certification; and

       ``(iv)(I) a nonprofit incorporated body organized or 
     chartered under the law of the State in which the entity is 
     located;
       ``(II) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(III) a public organization established before the date 
     of enactment of this subtitle under State law for creation of 
     multi-jurisdictional, area-wide planning organizations; or
       ``(IV) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in subclauses (I) 
     through (III); and
       ``(2) that has not, as certified by the Federal 
     cochairperson--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Local Development Districts.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses under this section.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the local development district 
     receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded to a State agency certified as a local 
     development district for a period greater than 3 years.
       ``(C) Local share.--The contributions of a local 
     development district for administrative expenses may be in 
     cash or in kind, fairly evaluated, including space, 
     equipment, and services.
       ``(c) Duties of Local Development Districts.--A local 
     development district shall--
       ``(1) operate as a lead organization serving multicounty 
     areas in the region at the local level; and
       ``(2) serve as a liaison between State, tribal, and local 
     governments, nonprofit organizations (including community-
     based groups and educational institutions), the business 
     community, and citizens that--
       ``(A) are involved in multijurisdictional planning;
       ``(B) provide technical assistance to local jurisdictions 
     and potential grantees; and
       ``(C) provide leadership and civic development assistance.
       ``(d) Northern Great Plains Inc.--Northern Great Plains 
     Inc., a nonprofit corporation incorporated in the State of 
     Minnesota to implement the recommendations of the Northern 
     Great Plains Rural Development Commission established by the 
     Northern Great Plains Rural Development Act (7 U.S.C. 2661 
     note; Public Law 103-318)--
       ``(1) shall serve as an independent, primary resource for 
     the Authority on issues of concern to the region;
       ``(2) shall advise the Authority on development of 
     international trade;
       ``(3) may provide research, education, training, and other 
     support to the Authority; and
       ``(4) may carry out other activities on its own behalf or 
     on behalf of other entities.

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

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

     ``SEC. 387G. DEVELOPMENT PLANNING PROCESS.

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

     ``SEC. 387H. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this subtitle, and in 
     establishing a priority ranking of the requests for 
     assistance provided to the Authority, the Authority shall 
     follow procedures that ensure, to the maximum extent 
     practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall regional development;
       ``(2) the per capita income and poverty and unemployment 
     and outmigration rates in an area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project, with 
     emphasis on ensuring that projects are adequately financed to 
     maximize the probability of successful economic development;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic development of the 
     area to be served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--No financial assistance 
     authorized by this subtitle shall be used to assist a person 
     or entity in relocating from one area to another, except that 
     financial assistance may be used as otherwise authorized by 
     this title to attract businesses from outside the region to 
     the region.
       ``(c) Maintenance of Effort.--Funds may be provided for a 
     program or project in a State under this subtitle only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this

[[Page S1086]]

     subtitle, for the same type of program or project in the same 
     area of the State within the region, will not be reduced as a 
     result of funds made available by this subtitle.

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

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

     ``SEC. 387J. CONSENT OF STATES.

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

     ``SEC. 387K. RECORDS.

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

     ``SEC. 387L. ANNUAL REPORT.

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

     ``SEC. 387M. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 387N. TERMINATION OF AUTHORITY.

       ``The authority provided by this subtitle terminates 
     effective October 1, 2006.''.

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

     SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION CORPORATION.

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

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

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

             Subtitle E--Rural Electrification Act of 1936

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

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

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

       ``(a) In General.--Subject to subsection (b), the Secretary 
     shall guarantee payments on bonds or notes issued by 
     cooperative or other lenders organized on a not-for-profit 
     basis if the proceeds of the bonds or notes are used for 
     electrification or telephone projects eligible for assistance 
     under this Act, including the refinancing of bonds or notes 
     issued for such projects.
       ``(b) Limitations.--
       ``(1) Outstanding loans.--A lender shall not receive a 
     guarantee under this section for a bond or note if, at the 
     time of the guarantee, the total principal amount of such 
     guaranteed bonds or notes outstanding of the lender would 
     exceed the principal amount of outstanding loans of the 
     lender for electrification or telephone purposes that have 
     been made concurrently with loans approved for such purposes 
     under this Act.
       ``(2) Generation of electricity.--The Secretary shall not 
     guarantee payment on a bond or note issued by a lender, the 
     proceeds of which are used for the generation of electricity.
       ``(3) Qualifications.--The Secretary may deny the request 
     of a lender for the guarantee of a bond or note under this 
     section if the Secretary determines that--
       ``(A) the lender does not have appropriate expertise or 
     experience or is otherwise not qualified to make loans for 
     electrification or telephone purposes;
       ``(B) the bond or note issued by the lender is not of 
     reasonable and sufficient quality; or
       ``(C) the lender has not provided sufficient evidence that 
     the proceeds of the bond or note are used for eligible 
     projects described in subsection (a).
       ``(4) Interest rate reduction.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a lender may not use any amount obtained from the reduction 
     in funding costs as a result of the guarantee of a bond or 
     note under this section to reduce the interest rate on a new 
     or outstanding loan.
       ``(B) Concurrent loans.--A lender may use any amount 
     described in subparagraph (A) to reduce the interest rate on 
     a loan if the loan is--
       ``(i) made by the lender for electrification or telephone 
     projects that are eligible for assistance under this Act; and
       ``(ii) made concurrently with a loan approved by the 
     Secretary under this Act for such a project, as provided in 
     section 307.
       ``(c) Fees.--
       ``(1) In general.--A lender that receives a guarantee 
     issued under this section on a bond or note shall pay a fee 
     to the Secretary.
       ``(2) Amount.--The amount of an annual fee paid for the 
     guarantee of a bond or note under this section shall be equal 
     to 30 basis points of the amount of the unpaid principal of 
     the bond or note guaranteed under this section.
       ``(3) Payment.--A lender shall pay the fees required under 
     this subsection on a semiannual basis.

[[Page S1087]]

       ``(4) Rural economic development subaccount.--Subject to 
     subsection (e)(2), fees collected under this subsection shall 
     be--
       ``(A) deposited into the rural economic development 
     subaccount maintained under section 313(b)(2)(A), to remain 
     available until expended; and
       ``(B) used for the purposes described in section 
     313(b)(2)(B).
       ``(d) Guarantees.--
       ``(1) In general.--A guarantee issued under this section 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable; and
       ``(C) represent the full faith and credit of the United 
     States.
       ``(2) Limitation.--To ensure that the Secretary has the 
     resources necessary to properly examine the proposed 
     guarantees, the Secretary may limit the number of guarantees 
     issued under this section if the number of such guarantees 
     exceeds 5 per year.
       ``(3) Department opinion.--On the timely request of an 
     eligible lender, the General Counsel of the Department of 
     Agriculture shall provide the Secretary with an opinion 
     regarding the validity and authority of a guarantee issued to 
     the lender under this section.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(2) Fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     up to \1/3\ of the fees collected under subsection (c) for 
     the cost of providing guarantees of bonds and notes under 
     this section before depositing the remainder of the fees into 
     the rural economic development subaccount maintained under 
     section 313(b)(2)(A).
       ``(f) Termination.--The authority provided under this 
     section shall terminate on September 30, 2006.''.
       (b) Administration.--
       (1) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations to carry out the amendments made by 
     this section.
       (2) Implementation.--Not later than 240 days after the date 
     of enactment of this Act, the Secretary shall implement the 
     amendment made by this section.

     SEC. 662. EXPANSION OF 911 ACCESS.

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

     ``SEC. 315. EXPANSION OF 911 ACCESS.

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

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

     SEC. 701. DEFINITIONS.

       (a) In General.--Section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103) is amended--
       (1) by redesignating paragraphs (10) through (17) as 
     paragraphs (11) through (18), respectively;
       (2) by inserting after paragraph (9) the following:
       ``(10) Insular area.--The term `insular area' means--
       ``(A) the Commonwealth of Puerto Rico;
       ``(B) Guam;
       ``(C) American Samoa;
       ``(D) the Commonwealth of the Northern Mariana Islands;
       ``(E) the Federated States of Micronesia;
       ``(F) the Republic of the Marshall Islands;
       ``(G) the Republic of Palau; and
       ``(H) the Virgin Islands of the United States.''; and
       (3) by striking paragraph (13) (as so redesignated) and 
     inserting the following:
       ``(13) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) any insular area.''.
       (b) Effect of Amendments.--The amendments made by 
     subsection (a) shall not affect any basis for distribution of 
     funds by formula (in effect on the date of enactment of this 
     Act) to--
       (1) the Federated States of Micronesia;
       (2) the Republic of the Marshall Islands; or
       (3) the Republic of Palau.

     SEC. 702. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 703. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       Section 1417 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``and'' after ``economics,''; and
       (B) by inserting ``, and rural economic, community, and 
     business development'' before the period;
       (2) in subsection (b)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (B) in paragraph (2), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (C) in paragraph (3), by inserting ``, or teaching programs 
     emphasizing rural economic, community, and business 
     development'' before the semicolon;
       (D) in paragraph (4), by inserting ``, or programs 
     emphasizing rural economic, community, and business 
     development,'' after ``programs''; and
       (E) in paragraph (5), by inserting ``, or professionals in 
     rural economic, community, and business development'' before 
     the semicolon;
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development,'' after 
     ``sciences''; and
       (B) in paragraph (2), by inserting ``, or in the rural 
     economic, community, and business development workforce,'' 
     after ``workforce''; and
       (4) in subsection (l), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1417 
     (7 U.S.C. 3152) the following:

     ``SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       ``(a) Authority.--The Secretary may award grants to 
     eligible institutions on a competitive basis for the 
     construction, acquisition, modernization, renovation, 
     alteration, and remodeling of food and agricultural research 
     facilities such as buildings, laboratories, and other capital 
     facilities (including acquisition of fixtures and equipment) 
     in accordance with this section.
       ``(b) Eligible Institutions.--The following institutions 
     are eligible to compete for grants under subsection (a):
       ``(1) A State cooperative institution.
       ``(2) A Hispanic-serving institution.
       ``(c) Criteria for Award.--The Secretary shall award grants 
     to support the national research purposes specified in 
     section 1402 in a manner determined by the Secretary.
       ``(d) Matching.--
       ``(1) In general.--The Secretary may establish such 
     matching requirements for grants under subsection (a) as the 
     Secretary considers appropriate.
       ``(2) Form of match.--Matching requirements established by 
     the Secretary may be met with unreimbursed indirect costs and 
     in-kind contributions.
       ``(3) Evaluation preference.--The Secretary may include an 
     evaluation preference for projects for which the applicant 
     proposes funds for the direct costs of a project to meet the 
     required match.
       ``(e) Targeted Institutions.--The Secretary may determine 
     that a portion of funds made available to carry out this 
     section shall be targeted to particular eligible institutions 
     to enhance the capacity of the eligible institutions to carry 
     out research.
       ``(f) Administration.--
       ``(1) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(2) States with more than 1 eligible institution.--In a 
     State having more than 1 eligible institution, the Secretary 
     shall establish procedures in accordance with the purposes 
     specified in section 1402 to ensure that the facility 
     proposals of the eligible institutions in the State provide 
     for a coordinated food and agricultural research program 
     among eligible institutions in the State.
       ``(g) Applicability of the 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 section.
       ``(h) Advisory Board.--In carrying out this section, the 
     Secretary shall consult with the Advisory Board.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2002 through 
     2006.''.

     SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING 
                   OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

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

     SEC. 706. POLICY RESEARCH CENTERS.

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

     SEC. 707. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

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

     SEC. 708. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act

[[Page S1088]]

     of 1977 (7 U.S.C. 3174a(d)) is amended by striking ``2002'' 
     and inserting ``2006''.

     SEC. 709. NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 710. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended in the first sentence by striking ``2002'' and 
     inserting ``2006''.

     SEC. 711. RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

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

     SEC. 712. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING 
                   INSTITUTIONS.

       Section 1455(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 713. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 714. INDIRECT COSTS.

       Section 1462 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310) is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``Except'';
       (2) by striking ``19 percent'' and all that follows and 
     inserting ``the negotiated indirect cost rate established for 
     an institution by the cognizant Federal audit agency for the 
     institution.''; and
       (3) by adding at the end the following:
       ``(b) Exception.--Subsection (a) shall not apply to a grant 
     awarded competitively under section 9 of the Small Business 
     Act (15 U.S.C. 638).''.

     SEC. 715. RESEARCH EQUIPMENT GRANTS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1462 
     (7 U.S.C. 3310) the following:

     ``SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

       ``(a) In General.--The Secretary may make competitive 
     grants for the acquisition of special purpose scientific 
     research equipment for use in the food and agricultural 
     sciences programs of eligible institutions described in 
     subsection (b).
       ``(b) Eligible Institutions.--The Secretary may make a 
     grant under this section to--
       ``(1) a college or university; or
       ``(2) a State cooperative institution.
       ``(c) Maximum Amount.--The amount of a grant made to an 
     eligible institution under this section may not exceed 
     $500,000.
       ``(d) Prohibition on Charge of Equipment as Indirect 
     Costs.--The cost of acquisition or depreciation of equipment 
     purchased with a grant under this section shall not be--
       ``(1) charged as an indirect cost against another Federal 
     grant; or
       ``(2) included as part of the indirect cost pool for 
     purposes of calculating the indirect cost rate of an eligible 
     institution.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended--
       (1) in subsection (a), by striking ``$850,000,000 for each 
     of the fiscal years 1991 through 2002'' and inserting 
     ``$1,500,000,000 for each of fiscal years 2002 through 
     2006''; and
       (2) in subsection (b), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 717. EXTENSION EDUCATION.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``$420,000,000'' and all that follows and 
     inserting the following: ``$500,000,000 for each of fiscal 
     years 2002 through 2006.''.

     SEC. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

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

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

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

     SEC. 719. JOINT REQUESTS FOR PROPOSALS.

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

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

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

     SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.

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

     SEC. 721. AQUACULTURE.

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

     SEC. 722. RANGELAND RESEARCH.

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

     SEC. 723. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

       (a) In General.--The National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et 
     seq.) is amended by adding at the end the following:

                       ``Subtitle N--Biosecurity

            ``CHAPTER 1--AGRICULTURE INFRASTRUCTURE SECURITY

     ``SEC. 1484. DEFINITIONS.

       ``In this chapter:
       ``(1) Agricultural research facility.--The term 
     `agricultural research facility' means a facility--
       ``(A) at which agricultural research is regularly carried 
     out or proposed to be carried out; and
       ``(B) that is--
       ``(i)(I) an Agricultural Research Service facility;
       ``(II) a Forest Service facility; or
       ``(III) an Animal and Plant Health Inspection Service 
     facility;
       ``(ii) a Federal agricultural facility in the process of 
     being planned or being constructed; or
       ``(iii) any other facility under the full control of the 
     Secretary.
       ``(2) Commission.--The term `Commission' means the 
     Agriculture Infrastructure Security Commission established 
     under section 1486.
       ``(2) Fund.--The term `Fund' means the Agriculture 
     Infrastructure Security Fund Account established by section 
     1485.

     ``SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States an account, to be known as the 
     `Agriculture Infrastructure Security Fund Account', 
     consisting of funds appropriated to, or deposited into, the 
     Fund under subsection (c).
       ``(b) Purposes.--The purposes of the Fund are to provide 
     funding to protect and strengthen the Federal food safety and 
     agricultural infrastructure that--
       ``(1) safeguards against animal and plant diseases and 
     pests;
       ``(2) ensures the safety of the food supply; and
       ``(3) ensures sound science in support of food and 
     agricultural policy.
       ``(c) Deposits Into Fund.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Fund such sums as are necessary for each of fiscal 
     years 2002 through 2006.
       ``(2) Contributions and other proceeds.--The Secretary 
     shall deposit into the Fund any funds received--

[[Page S1089]]

       ``(A) as proceeds from the sale of assets under subsection 
     (e); or
       ``(B) as gifts under subsection (f).
       ``(3) Availability of funds.--Amounts in the Fund shall 
     remain available until expended without further Act of 
     appropriation.
       ``(4) Additional funds.--Funds made available under 
     paragraph (1) shall be in addition to funds otherwise 
     available to the Secretary to receive gifts and bequests or 
     dispose of property (real, personal, or intangible).
       ``(d) Expenditures From Fund.--
       ``(1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary, and the Secretary shall 
     accept and use without further appropriation, such amounts as 
     the Secretary determines to be necessary to pay--
       ``(A) the costs of planning, design, development, 
     construction, acquisition, modernization, leasing, and 
     disposal of facilities, equipment, and technology used by the 
     Department in carrying out programs relating to the purposes 
     specified in subsection (b), notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.) or any other law that prescribes procedures for 
     the procurement, use, or disposal of property or services by 
     a Federal agency;
       ``(B) the costs of specialized services relating to the 
     purposes specified in subsection (b);
       ``(C) the costs of cooperative arrangements authorized to 
     be entered into (notwithstanding chapter 63 of title 31, 
     United States Code) with State, local and tribal governments, 
     and other public and private entities, to carry out programs 
     relating to the purposes specified in subsection (b); and
       ``(D) administrative costs incurred in carrying out 
     subparagraphs (A) through (C).
       ``(2) Limitations.--
       ``(A) Federal employees.--Amounts in the Fund shall not be 
     used to create any new full or part-time permanent Federal 
     employee position.
       ``(B) Administrative expenses.--Beginning in fiscal year 
     2003, not more than 1 percent of the amounts in the Fund on 
     October 1 of a fiscal year may be used in the fiscal year for 
     administrative expenses of the Secretary in carrying out the 
     activities described in paragraph (1).
       ``(e) Sale of Assets.--
       ``(1) Disposal authority.--Notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.), the Secretary by sale may dispose of all or any 
     part of any right or title in land (excluding National Forest 
     System land), facilities, or equipment in the full control of 
     the Department used for the purposes specified in subsection 
     (b).
       ``(2) Disposition of proceeds.--Proceeds from any sale 
     conducted by the Secretary under paragraph (1) shall be 
     deposited into the Fund in accordance with subsection 
     (c)(2)(A).
       ``(f) Gifts.--
       ``(1) In general.--To carry out the purposes specified in 
     subsection (b), the Secretary may accept gifts and bequests 
     of funds, property (real, personal, and intangible), 
     equipment, services, and other in-kind contributions from 
     State, local, and tribal governments, colleges and 
     universities, individuals, and other public and private 
     entities.
       ``(2) Prohibited source.--
       ``(A) In general.--For the purposes of this subsection, the 
     Secretary shall not consider a State or local government, 
     Indian tribe (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     other public entity, or college or university, to be a 
     prohibited source under any Department rule or policy that 
     prohibits the acceptance of gifts from individuals and 
     entities that do business with the Department.
       ``(B) Exception.--Notwithstanding any Department rule or 
     policy that prohibits the acceptance of gifts by the 
     Department from individuals or private entities that do 
     business with the Department or that, for any other reason, 
     are considered to be prohibited sources, the Secretary may 
     accept gifts under this subsection if the Secretary 
     determines that it is in the public interest to accept the 
     gift.
       ``(3) Disposition of gifts.--The Secretary shall deposit 
     any gift of funds under this subsection into the Fund in 
     accordance with subsection (c)(2)(B).

     ``SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.

       ``(a) Establishment.--The Secretary shall establish a 
     commission to be known as the `Agriculture Infrastructure 
     Security Commission' to carry out the duties described in 
     subsection (f).
       ``(b) Membership.--
       ``(1) Appointment.--
       ``(A) Voting members.--
       ``(i) In general.--The Commission shall be composed of 15 
     voting members, appointed by the Secretary in accordance with 
     clause (ii), based on nominations solicited from the public.
       ``(ii) Qualifications.--The Secretary shall appoint members 
     that--

       ``(I) represent a balance of the public and private 
     sectors; and
       ``(II) have combined expertise in--

       ``(aa) facilities development, modernization, construction, 
     security, consolidation, and closure;
       ``(bb) plant diseases and pests;
       ``(cc) animal diseases and pests;
       ``(dd) food safety;
       ``(ee) biosecurity;
       ``(ff) the needs of farmers and ranchers;
       ``(gg) public health;
       ``(hh) State, local, and tribal government; and
       ``(ii) any other area related to agriculture infrastructure 
     security, as determined by the Secretary.
       ``(B) Nonvoting members.--The Commission shall be composed 
     of the following nonvoting members:
       ``(i) The Secretary.
       ``(ii) 4 representatives appointed by the Secretary of 
     Health and Human Services, 1 each from--

       ``(I) the Public Health Service;
       ``(II) the National Institutes of Health;
       ``(III) the Centers for Disease Control and Prevention; and
       ``(IV) the Food and Drug Administration.

       ``(iii) 1 representative appointed by the Attorney General.
       ``(iv) 1 representative appointed by the Director of 
     Homeland Security.
       ``(v) Not more than 4 representatives of the Department 
     appointed by the Secretary.
       ``(2) Date of appointment.--The appointment of each member 
     of the Commission shall be made not later than 90 days after 
     the date of enactment of this subtitle.
       ``(c) Term; Vacancies.--
       ``(1) Term.--The term of office of a member of the 
     Commission shall be 4 years, except that the members 
     initially appointed shall be appointed to serve staggered 
     terms (as determined by the Secretary).
       ``(2) Vacancies.--A vacancy on the Commission shall be 
     filled in the same manner as the original appointment was 
     made.
       ``(d) Meetings.--
       ``(1) In general.--The Commission shall meet at the call 
     of--
       ``(A) the Chairperson;
       ``(B) a majority of the voting members of the Commission; 
     or
       ``(C) the Secretary.
       ``(2) Federal advisory committee act.--
       ``(A) In general.--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 the 
     Commission.
       ``(B) Open meetings; records.--Subject to subparagraph 
     (C)--
       ``(i) a meeting of the Commission shall be--

       ``(I) publicly announced in advance; and
       ``(II) open to the public; and

       ``(ii) the Commission shall--

       ``(I) keep detailed minutes of each meeting and other 
     appropriate records of the activities of the Commission; and
       ``(II) make the minutes and records available to the public 
     on request.

       ``(C) Exception.--When required in the interest of national 
     security--
       ``(i) the Chairperson may choose not to give public notice 
     of a meeting;
       ``(ii) the Chairperson may close all or a portion of any 
     meeting to the public, and the minutes of the meeting, or 
     portion of a meeting, shall not be made available to the 
     public; and
       ``(iii) by majority vote, the Commission may redact the 
     minutes of a meeting that was open to the public.
       ``(e) Chairperson.--The Secretary shall select a 
     Chairperson from among the voting members of the Commission.
       ``(f) Duties.--
       ``(1) In general.--The Commission shall--
       ``(A) advise the Secretary on the uses of the Fund;
       ``(B) review all agricultural research facilities for--
       ``(i) research importance; and
       ``(ii) importance to agriculture infrastructure security;
       ``(C) identify any agricultural research facility that 
     should be closed, realigned, consolidated, or modernized to 
     carry out the research agenda of the Secretary and protect 
     agriculture infrastructure security;
       ``(D) develop recommendations concerning agricultural 
     research facilities; and
       ``(E)(i) evaluate the agricultural research facilities 
     acquisition and modernization system (including acquisitions 
     by gift, grant, or any other form of agreement) used by the 
     Department; and
       ``(ii) based on the evaluation, recommend improvements to 
     the system.
       ``(2) Strategic plan.--To assist the Commission in carrying 
     out the duties described in paragraph (1), the Commission 
     shall use the 10-year strategic plan prepared by the 
     Strategic Planning Task Force established under section 4 of 
     the Research Facilities Act (7 U.S.C. 390b).
       ``(3) Report.--
       ``(A) In general.--Not later than 240 days after the date 
     of enactment of this subtitle, and each June 1 thereafter, 
     the Commission shall prepare and submit to the Secretary, the 
     Committee on Agriculture and the Committee on Appropriations 
     of the House of Representatives, and the Committee on 
     Agriculture, Nutrition, and Forestry and the Committee on 
     Appropriations of the Senate, a report on the findings and 
     recommendations under paragraph (1).
       ``(B) Written response.--Not later than 90 days after the 
     date of receipt of a report from the Commission under 
     subparagraph (A), the Secretary shall provide to the 
     Commission a written response concerning the manner and 
     extent to which the Secretary will implement the 
     recommendations in the report.
       ``(C) Public availability.--
       ``(i) In general.--Subject to clause (ii), the report 
     submitted by the Commission, and any response made by the 
     Secretary, under this subsection shall be available to the 
     public.
       ``(ii) Exception.--

       ``(I) National security.--The Commission or the Secretary 
     may determine that any report or response, or any portion of 
     a report or response, shall not be publicly released in the 
     interest of national security.
       ``(II) Freedom of information act.--On such a 
     determination, the report or response, a portion of the 
     report or response, or any records relating to the report or 
     response, shall not be released under section 552 of title 5, 
     United States Code.

       ``(g) Commission Personnel Matters.--
       ``(1) Compensation of members.--
       ``(A) Non-federal employees.--A voting member of the 
     Commission who is not a regular

[[Page S1090]]

     full-time employee of the Federal Government shall, while 
     attending meetings of the Commission or otherwise engaged in 
     the business of the Commission (including travel time), be 
     entitled to receive compensation at a rate fixed by the 
     Secretary, but not exceeding the daily equivalent of the 
     annual rate specified at the time of such service under GS-15 
     of the General Schedule established under section 5332 of 
     title 5, United States Code.
       ``(B) Travel expenses.--A voting member of the Commission 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for an employee of an 
     agency under subchapter I of chapter 57 of title 5, United 
     States Code, while away from the home or regular place of 
     business of the member in the performance of the duties of 
     the Commission.
       ``(2) Staff.--The Secretary shall provide the Commission 
     with any personnel and other resources as the Secretary 
     determines appropriate.
       ``(h) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2002 through 
     2006.
       ``(2) Agriculture infrastructure security fund.--For the 
     purpose of establishing the Commission, the Secretary shall 
     use such sums from the Fund as the Secretary determines to be 
     appropriate.

                ``CHAPTER 2--OTHER BIOSECURITY PROGRAMS

     ``SEC. 1487. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING 
                   AND RESPONSE.

       ``(a) Authorization of Appropriations.--In addition to 
     amounts for agricultural research, extension, and education 
     under this Act, there are authorized to be appropriated for 
     agricultural research, education, and extension activities 
     for biosecurity planning and response such sums as are 
     necessary for each of fiscal years 2002 through 2006.
       ``(b) Use of Funds.--Using any authority available to the 
     Secretary, the Secretary shall use funds made available under 
     this section to carry out agricultural research, education, 
     and extension activities (including through competitive 
     grants) necessary--
       ``(1) to reduce the vulnerability of the United States food 
     and agricultural system to chemical or biological attack;
       ``(2) to continue joint research initiatives between the 
     Agricultural Research Service, universities, and industry on 
     counterbioterrorism efforts (including continued funding of a 
     consortium in existence on the date of enactment of this 
     subtitle of which the Agricultural Research Service and 
     universities are members);
       ``(3) to make competitive grants to universities and 
     qualified research institutions for research on 
     counterbioterrorism; and
       ``(4) to counter or otherwise respond to chemical or 
     biological attack.

     ``SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Construction.--The term `construction' includes--
       ``(A) the construction of new buildings; and
       ``(B) the expansion, renovation, remodeling, and alteration 
     of existing buildings.
       ``(2) Cost.--
       ``(A) In general.--The term `cost' means any construction 
     cost, including architects' fees.
       ``(B) Exclusions.--The term `cost' does not include the 
     cost of--
       ``(i) acquiring land or an interest in land; or
       ``(ii) constructing any offsite improvement.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     college or university that--
       ``(A) is a land grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); 
     and
       ``(B) as determined by the Secretary, has--
       ``(i) demonstrated expertise in the area of animal and 
     plant diseases;
       ``(ii) substantial animal and plant diagnostic 
     laboratories; and
       ``(iii) well-established working relationships with--

       ``(I) the agricultural industry; and
       ``(II) farm and commodity organizations.

       ``(b) Modernization and Construction of Facilities.--
       ``(1) In general.--To enhance the security of agriculture 
     in the United States against threats posed by bioterrorism, 
     the Secretary shall make construction grants, on a 
     competitive basis, to eligible entities.
       ``(2) Limitation on grants.--An eligible entity shall not 
     receive grant funds under this section that, in any fiscal 
     year, exceed $10,000,000.
       ``(c) Requirements for Grants.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible entity under this section only if, with respect to 
     any facility constructed using grant funds, the eligible 
     entity--
       ``(A) submits to the Secretary, in such form, in such 
     manner, and containing such agreements, assurances, and 
     information as the Secretary may require, an application for 
     the grant;
       ``(B) is determined by the Secretary to be competent to 
     engage in the type of research for which the facility is 
     proposed to be constructed;
       ``(C) provides such assurances as the Secretary determines 
     to be satisfactory that--
       ``(i) for not less than 20 years after the date of 
     completion of the facility, the facility shall be used for 
     the purposes of the research for which the facility was 
     constructed, as described in the grant application;
       ``(ii) sufficient funds are available to pay the non-
     Federal share of the cost of constructing the facility;
       ``(iii) sufficient funds will be available, as of the date 
     of completion of the construction, for the effective use of 
     the facility for the purposes of the research for which the 
     facility was constructed; and
       ``(iv) the proposed construction--

       ``(I) will increase the capability of the eligible entity 
     to conduct research for which the facility was constructed; 
     or
       ``(II) is necessary to improve or maintain the quality of 
     the research of the eligible entity;

       ``(D) meets such reasonable qualifications as may be 
     established by the Secretary with respect to--
       ``(i) the relative scientific and technical merit of the 
     applications, and the relative effectiveness of facilities 
     proposed to be constructed, in expanding the quality of, and 
     the capacity of eligible entities to carry out, biosecurity 
     research;
       ``(ii) the quality of the research to be carried out in 
     each facility constructed;
       ``(iii) the need for the research activities to be carried 
     out within the facility as those activities relate to 
     research needs of the United States in securing, and ensuring 
     the safety of, the food supply of the United States;
       ``(iv) the age and condition of existing research 
     facilities of the eligible entity; and
       ``(v) biosafety and biosecurity requirements necessary to 
     protect facility staff, members of the public, and the food 
     supply; and
       ``(E) has demonstrated a commitment to enhancing and 
     expanding the research productivity of the eligible entity.
       ``(2) Priority.--In providing grants under this section, 
     the Secretary shall give priority to an eligible entity that, 
     as determined by the Secretary, has demonstrated expertise 
     in--
       ``(A) animal and plant disease prevention;
       ``(B) pathogen and toxin mitigation;
       ``(C) cereal disease resistance;
       ``(D) grain milling and processing;
       ``(E) livestock production practices;
       ``(F) vaccine development;
       ``(G) meat processing;
       ``(H) pathogen detection and control; or
       ``(I) food safety.
       ``(d) Amount of Grant.--The amount of a grant awarded under 
     this section shall be determined by the Secretary.
       ``(e) Federal Share.--The Federal share of the cost of any 
     construction carried out using funds from a grant provided 
     under this section shall not exceed 50 percent.
       ``(f) Guidelines.--Not later than 180 days after the date 
     of enactment of this subtitle, the Secretary shall issue 
     guidelines with respect to the provision of grants under this 
     section.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of fiscal years 2003 through 2005.''.
       (b) Sense of Congress on Increasing Capacity for Research 
     on Biosecurity and Animal and Plant Health Diseases.--It is 
     the sense of Congress that funding for the Agricultural 
     Research Service, the Animal and Plant Health Inspection 
     Service, and other agencies of the Department of Agriculture 
     with responsibilities for biosecurity should be increased as 
     necessary to improve the capacity of the agencies to conduct 
     research and analysis of, and respond to, bioterrorism and 
     animal and plant diseases.

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

     SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.

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

     SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

       Section 1668 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5921) is amended--
       (1) by redesignating subsections (e) through (g) as 
     subsections (f) through (h), respectively;
       (2) by inserting after subsection (d) the following:
       ``(e) Grant Priority.--In selecting projects for which 
     grants shall be made under this section, the Secretary shall 
     give priority to public and private research or educational 
     institutions and organizations the goals of which include--
       ``(1) formation of interdisciplinary teams to review or 
     conduct research on the environmental effects of the release 
     of new genetically modified agricultural products;
       ``(2) conduct of studies relating to biosafety of 
     genetically modified agricultural products;
       ``(3) evaluation of the cost and benefit for development of 
     an identity preservation system for genetically modified 
     agricultural products;
       ``(4) establishment of international partnerships for 
     research and education on biosafety issues; or
       ``(5) formation of interdisciplinary teams to renew and 
     conduct research on the nutritional enhancement and 
     environmental benefits of genetically modified agricultural 
     products.''; and
       (3) in subsection (h) (as redesignated by paragraph (1)), 
     by striking paragraph (2) and inserting the following:
       ``(2) Withholding of outlays for research on biotechnology 
     risk assessment.--Of the amounts of outlays made under this 
     section or any other provision of law to carry out research 
     on biotechnology (as defined and determined by the Secretary 
     of Agriculture) for any fiscal year, the Secretary of 
     Agriculture shall withhold at least 3 percent for grants for 
     research on biotechnology risk assessment on all categories 
     identified by the Secretary of Agriculture as 
     biotechnology.''.

     SEC. 733. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

       (a) Findings.--Congress finds that--
       (1) electronic commerce sales in 1998 were approximately 
     $100,000,000,000 and are expected to reach $1,300,000,000,000 
     by 2003;
       (2) electronic commerce presents an enormous opportunity 
     and challenge for small businesses, especially businesses in 
     rural areas;
       (3) while infrastructure for electronic commerce is growing 
     rapidly in rural areas, small businesses will not be able to 
     take advantage of the new technology without assistance;

[[Page S1091]]

       (4) while electronic commerce will give businesses new 
     markets and new ways of doing business, many small businesses 
     in rural areas will have difficulty adopting appropriate 
     electronic commerce business practices and technologies;
       (5) the United States has an interest in ensuring that 
     small businesses in rural areas participate in electronic 
     commerce, to encourage success of the businesses, and to 
     promote productivity and economic growth throughout the 
     economy of the United States; and
       (6) an electronic commerce extension program should be 
     established using the nationwide county-based infrastructure 
     within the Cooperative Extension Service to help small 
     businesses throughout the United States to identify, adapt, 
     adopt, and use electronic commerce business practices and 
     technologies.
       (b) Purpose.--The purpose of this section is to establish 
     within the Cooperative State Research, Education, and 
     Extension Service of the Department of Agriculture a rural 
     electronic commerce extension program for small businesses 
     and microenterprises in rural areas of the United States.
       (c) Program.--Subtitle H of title XVI of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5921 et seq.) is amended by adding after section 1669 the 
     following:

     ``SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Development center.--The term `development center' 
     means--
       ``(A) the North Central Regional Center for Rural 
     Development;
       ``(B) the Northeast Regional Center for Rural Development 
     or its designee;
       ``(C) the Southern Rural Development Center; and
       ``(D) the Western Rural Development Center or its designee.
       ``(2) Extension program.--The term `extension program' 
     means the rural electronic commerce extension program 
     established under subsection (b).
       ``(3) Microenterprise.--The term `microenterprise' means a 
     commercial enterprise that has 5 or fewer employees, 1 or 
     more of whom owns the enterprise.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Administrator of the 
     Cooperative State Research, Education, and Extension Service.
       ``(5) Small business.--The term `small business' has the 
     meaning given the term `small-business concern' by section 
     3(a) of the Small Business Act (15 U.S.C. 632(a)).
       ``(b) Establishment.--The Secretary shall establish a rural 
     electronic commerce extension program to--
       ``(1) expand and enhance electronic commerce practices and 
     technology to be used by small businesses and 
     microenterprises in rural areas;
       ``(2) disseminate information and expertise through a 
     cooperative extension service clearinghouse system in rural 
     areas;
       ``(3) disseminate management, scientific, engineering, and 
     technical information to small businesses in rural areas 
     through the extension program; and
       ``(4) use, when appropriate, the expertise, technology, and 
     capabilities of other institutions and organizations, 
     including--
       ``(A) State and local governments;
       ``(B) Federal departments and agencies;
       ``(C) institutions of higher education;
       ``(D) nonprofit organizations;
       ``(E) small businesses and microenterprises that have 
     experience in electronic commerce practice and technology; 
     and
       ``(F) the development centers.
       ``(c) Administration.--
       ``(1) In general.--In carrying out this section, the 
     Secretary shall--
       ``(A) provide leadership, support, and coordination for the 
     extension programs;
       ``(B) establish policies, practices, and procedures to 
     assist rural communities in the adoption and use of 
     electronic commerce techniques;
       ``(C) identify and strengthen existing mechanisms designed 
     to assist rural areas in the adoption and use of electronic 
     commerce techniques;
       ``(D) provide grants to fund projects and activities under 
     the extension program; and
       ``(E) establish a clearinghouse system for States, 
     communities, and businesses to obtain information on best 
     practices, technology transfer, training, education, 
     adoption, and use of electronic commerce in rural areas.
       ``(2) Office of rural electronic commerce.--The Secretary 
     shall establish, in the Cooperative State Research, 
     Education, and Extension Service, an Office of Rural 
     Electronic Commerce to assist in carrying out this section.
       ``(d) Grants.--
       ``(1) In general.--The Secretary shall carry out a program 
     under which--
       ``(A) funds are distributed to each of the development 
     centers to--
       ``(i) assemble regional expertise, and develop innovative 
     education programs, that may be adapted and refined by State 
     extension programs;
       ``(ii) train State-based cooperative extension agents to 
     deliver rural electronic commerce education programs; and
       ``(iii) establish networks among universities, local 
     governments, and private industries to focus on regional 
     economic issues; and
       ``(B) competitive grants are made to cooperative extension 
     service programs at land-grant colleges and universities (or 
     consortia of land-grant colleges and universities)--
       ``(i) to develop and facilitate nationally innovative rural 
     electronic commerce business strategies; and
       ``(ii) to assist small businesses and microenterprises in 
     identifying, adapting, implementing, and using electronic 
     commerce business practices and technologies.
       ``(2) Eligibility.--
       ``(A) Criteria.--
       ``(i) In general.--The Secretary, shall--

       ``(I) establish criteria for the submission, evaluation, 
     and funding of applications for grants to carry out projects 
     and activities under the extension program; and
       ``(II) evaluate, rank, and select grant applications 
     described in subclause (I) on the basis of the selection 
     criteria.

       ``(ii) Factors.--The selection criteria established under 
     clause (i) shall include--

       ``(I) the ability of an applicant to provide training and 
     education on best practices, technology transfer, adoption, 
     and use of electronic commerce in rural communities by small 
     business and microenterprise;
       ``(II) the quality of the service to be provided by a 
     proposed project or activity under the extension program;
       ``(III) the extent and geographic diversity of the area 
     served by the proposed project or activity under the 
     extension program;
       ``(IV) the extent of participation of land-grant colleges 
     and universities in the extension program (including any 
     economic benefits that would result from that participation);
       ``(V) the percentage of funding and in-kind commitments 
     from non-Federal sources that would be needed by and 
     available for a proposed project or activity under the 
     extension program; and
       ``(VI) the extent of participation of low-income and 
     minority businesses or microenterprises in a proposed project 
     or activity under the extension program.

       ``(B) Application.--As a condition of being considered for 
     the receipt of funds under this section, an applicant shall 
     submit to the Secretary an application that meets the 
     criteria established under subparagraph (A)(i)(I).
       ``(C) Non-federal share.--
       ``(i) In general.--As a condition of the receipt of funds 
     under this section, an applicant shall agree to obtain from 
     non-Federal sources (including State, local, nonprofit, or 
     private sector sources) contributions of--

       ``(I) except as provided in clause (iii), during each of 
     the years in which the extension program receives funding 
     under subsection (g), 50 percent of the estimated capital and 
     annual operating and maintenance costs of the extension 
     program; and
       ``(II) after expiration of the initial funding period 
     specified in subclause (I), 100 percent of the estimated 
     capital and annual operating and maintenance costs of the 
     extension program.

       ``(ii) Form.--The non-Federal share required under clause 
     (i)(I) may be provided in the form of in-kind contributions.
       ``(iii) Exception.--The non-Federal share required under 
     clause (i)(I) may be reduced to 25 percent of the estimated 
     capital and annual operating and maintenance costs of the 
     extension program if the grant recipient serves low-income or 
     minority-owned businesses or microenterprises, as determined 
     by the Secretary.
       ``(3) Limitation on amount of funds awarded.--
       ``(A) Individual land-grant colleges and universities.--A 
     land-grant college or university shall not receive funds 
     under this section in an amount that exceeds $900,000.
       ``(B) Consortia of land-grant colleges and universities.--
     With respect to a consortium of land-grant colleges and 
     universities that receives funds under this section--
       ``(i) the total amount of the funds awarded to the 
     consortium shall not exceed the product obtained by 
     multiplying--

       ``(I) $900,000; by
       ``(II) the number of land-grant colleges and universities 
     comprising the consortium; and

       ``(ii) each land-grant college or university that is a 
     member of the consortium shall receive an equal percentage of 
     the total amount of funds awarded.
       ``(4) Selection.--At least once every 180 days, the 
     Secretary shall evaluate, prioritize, and fund applications 
     for proposed projects and activities under the extension 
     program using the criteria established under paragraph 
     (2)(A)(i)(I).
       ``(e) Evaluation.--
       ``(1) In general.--Not later than 1 year after a project or 
     activity under the extension program is funded by a grant 
     under this section, the evaluation panel established under 
     paragraph (2)(A) shall evaluate the project or activity.
       ``(2) Evaluation panel.--
       ``(A) In general.--Not later than 30 days after the date of 
     enactment of this section, the Secretary shall establish an 
     evaluation panel to--
       ``(i) establish criteria for evaluating projects and 
     activities under the extension program; and
       ``(ii) using the criteria established under clause (i), 
     evaluate the projects and activities.
       ``(B) Composition.--The evaluation panel shall be composed 
     of--
       ``(i) appropriate Federal, State, local government, and 
     land-grant college or university officials, as determined by 
     the Secretary; and
       ``(ii) private individuals with expertise in electronic 
     commerce, technology, or small business, as determined by the 
     Secretary.
       ``(3) Criteria.--The evaluation panel shall evaluate 
     projects and activities under the extension program using 
     criteria established by the Secretary that assess the 
     efficiency and efficacy of the extension program.
       ``(4) Assistance from grant recipients.--A recipient of a 
     grant under this section shall, to the maximum extent 
     practicable, provide to the evaluation panel such materials 
     as the evaluation panel may request to assist in the 
     evaluation of any project or activity carried out by the 
     recipient under the extension program.
       ``(f) Report.--Not later than 2 years after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes--
       ``(1) the policies, practices, and procedures used to 
     assist rural communities in efforts to adopt and use 
     electronic commerce techniques;

[[Page S1092]]

       ``(2) the clearinghouse system for States, communities, 
     small businesses, and individuals established to obtain 
     information regarding best practices, technology transfer, 
     training, education, adoption, and use of electronic commerce 
     in rural areas; and
       ``(3) the criteria used for the submission, evaluation, and 
     funding of projects and activities under the extension 
     program.
       ``(g) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $60,000,000 for each of fiscal 
     years 2002 through 2006, of which $20,000,000 for each fiscal 
     year shall be made available to carry out activities under 
     subsection (d)(1)(A).
       ``(2) Administrative costs.--The Secretary may use not more 
     than 2 percent of the funds made available under paragraph 
     (1) to pay administrative costs incurred in carrying out this 
     section.''.

     SEC. 734. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is amended
       (1) in subsection (e), by adding at the end the following:
       ``(25) Animal infectious diseases research and extension.--
       ``(A) In general.--Research and extension grants may be 
     made under this section for the purpose of developing--
       ``(i) prevention and control methodologies for animal 
     infectious diseases that impact trade, including vesicular 
     stomatitis, bovine tuberculosis, transmissible spongiform 
     encephalopathy, brucellosis, and E. coli 0157:H7 infection;
       ``(ii) laboratory tests for quicker detection of infected 
     animals and presence of diseases among herds;
       ``(iii) prevention strategies, including vaccination 
     programs; and
       ``(iv) rapid diagnostic techniques for animal disease 
     agents considered to be risks for agricultural bioterrorism 
     attack, including evaluation of the techniques.
       ``(B) Collaboration.--Research under subparagraph (A) may 
     be conducted in collaboration with scientists from the 
     Department, other Federal agencies, universities, and 
     industry.
       ``(C) Evaluation of diagnostic techniques and vaccines.--
     Any research on or evaluation of diagnostic techniques and 
     vaccines under subparagraph (A) shall include evaluation of 
     diagnostic techniques and vaccines under field conditions in 
     countries in which the animal disease occurs.
       ``(26) Program to combat childhood obesity.--Research and 
     extension grants may be made under this section to 
     institutions of higher education with demonstrated capacity 
     in basic and clinical obesity research, nutrition research, 
     and community health education research to develop and 
     evaluate community-wide strategies that catalyze partnerships 
     between families and health care, education, recreation, mass 
     media, and other community resources to reduce the incidence 
     of childhood obesity.
       ``(27) Integrated pest management.--Research and extension 
     grants may be made under this section to land grant colleges 
     and universities, other Federal agencies, and other 
     interested persons to coordinate and improve research, 
     education, and outreach on, and implementation on farms of, 
     integrated pest management.
       ``(28) Beef cattle genetics.--
       ``(A) In general.--Research and extension grants for beef 
     cattle genetics evaluation research may be made under this 
     section to institutions of higher education, or consortia of 
     institutions of higher education, that--
       ``(i) have expertise in beef cattle genetic evaluation 
     research and technology; and
       ``(ii) have been actively involved, for at least 20 years, 
     in the estimation and prediction of progeny differences for 
     publication and use by seed stock producer breed 
     associations.
       ``(B) Priority.--In making grants under subparagraph (A), 
     the Secretary shall give priority to proposals to--
       ``(i) establish and coordinate priorities for genetic 
     evaluation of domestic beef cattle;
       ``(ii) consolidate research efforts to reduce duplication 
     of effort and maximize the return to beef industry;
       ``(iii) streamline the process between the development and 
     adoption of new genetic evaluation methodologies by the 
     industry;
       ``(iv) identify new traits and technologies for inclusion 
     in genetic programs in order to--

       ``(I) reduce the costs of beef production; and
       ``(II) provide consumers with a high nutritional value, 
     healthy, and affordable protein source; or

       ``(v) create decisionmaking tools that incorporate the 
     increasing number of traits being evaluated and the 
     increasing amount of information from DNA technology into 
     genetic improvement programs, with the goal of optimizing the 
     overall efficiency, product quality and safety, and health of 
     the domestic beef cattle herd resource.
       ``(29) Dairy pipeline cleaners.--Research and extension 
     grants may be made under this section for the purpose of 
     preventing and eliminating the dangers of dairy pipeline 
     cleaner, including--
       ``(A) developing safer packaging mechanisms and a new 
     transfer mechanism, including a new pumping mechanism for 
     dairy pipeline cleaner;
       ``(B) outlining--
       ``(i) the accident history for dairy pipeline cleaner;
       ``(ii) the causes of accidents involving dairy pipeline 
     cleaner; and
       ``(iii) potential means of prevention of such accidents, 
     including improved labeling and pump structure; and
       ``(C) other means of improving efforts to prevent ingestion 
     of dairy pipeline cleaner.
       ``(30) Development of publicly held plants and animal 
     varieties; genetic resource conservation activities.--
     Research and extension grants may be made under this section 
     to colleges and universities, other Federal agencies, plant 
     breeders, and other interested persons for the purpose of--
       ``(A) development of publicly held plants and animal 
     varieties (including germplasm for identity-preserved 
     markets); and
       ``(B) genetic resource conservation activities.''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006'', of which not less than $100,000 for each of fiscal 
     years 2002 through 2006 shall be used to carry out subsection 
     (e)(29).

     SEC. 735. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A(g) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 736. ORGANIC AGRICULTURE RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672B of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925b) is amended--
       (1) in subsection (a)--
       (A) by inserting after ``Board,'' the following: ``and the 
     National Organic Standards Board,'';
       (B) in paragraph (2), by striking ``and'' at the end;
       (C) in paragraph (3), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(4) determining desirable traits for organic commodities 
     using advanced genomics, field trials, and other methods;
       ``(5) pursuing classical and marker-assisted breeding for 
     publicly held varieties of crops and animals optimized for 
     organic systems;
       ``(6) identifying marketing and policy constraints on the 
     expansion of organic agriculture; and
       ``(7) conducting advanced on-farm research and development 
     that emphasizes observation of, experimentation with, and 
     innovation for working organic farms, including research 
     relating to production and marketing and to socioeconomic 
     conditions.''; and
       (2) in subsection (e), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 737. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 738. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

Subtitle C--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

     SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       Section 401 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Account to carry out this section--
       ``(A) on October 1, 1998 and each October 1 thereafter 
     through October 1, 2001, $120,000,000; and
       ``(B) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $145,000,000.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''; and
       (2) in subsection (e), by adding at the end the following:
       ``(3) Minority-serving institutions.--The Secretary shall 
     consider reserving, to the maximum extent practicable, 10 
     percent of the funds made available to carry out this section 
     for a fiscal year for grants to minority-serving 
     institutions.''.

     SEC. 742. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 743. PRECISION AGRICULTURE.

       Section 403 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7623) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3)--
       (i) in subparagraph (A), inserting ``or horticultural'' 
     following ``agronomic''; and
       (ii) in subparagraph (C), by striking ``or'' at the end;
       (iii) in subparagraph (D), by striking the period at the 
     end and inserting ``; or''; and
       (iv) by adding at the end the following:
       ``(E) using such information to enable intelligent 
     mechanized harvesting and sorting systems for horticultural 
     crops.'';
       (B) in paragraph (4)--
       (i) in subparagraph (C), by striking ``or'' at the end;
       (ii) in subparagraph (D), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(E) robotic and other intelligent machines for use in 
     horticultural cropping systems.''; and
       (C) in paragraph (5)(F), by inserting ``(including improved 
     use of energy inputs)'' after ``farm production 
     efficiencies'';
       (2) in subsection (c)(2)--

[[Page S1093]]

       (A) by inserting ``or horticultural'' after ``agronomic''; 
     and
       (B) by striking ``and meteorological variability'' and 
     inserting ``product variability, and meteorological 
     variability'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (B) by inserting after paragraph (3) the following:
       ``(4) Improve farm energy use efficiencies.''; and
       (4) in subsection (i)(1), by striking ``2002'' and 
     inserting ``2006''.

     SEC. 744. BIOBASED PRODUCTS.

       Section 404 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7624) is amended--
       (1) in subsection (e)(2), by striking ``2001'' and 
     inserting ``2006''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 745. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 746. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626) is amended--
       (1) by redesignating subsection (e) as subsection (f);
       (2) by inserting after subsection (d) the following:
       ``(e) Term of Grant.--A grant under this section shall have 
     a term of not more than 5 years.''; and
       (3) in subsection (f) (as so redesignated), by striking 
     ``2002'' and inserting ``2006''.

     SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT 
                   AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 748. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

       ``(a) Establishment.--The Secretary, in coordination with 
     State veterinarians and other appropriate State animal health 
     professionals, may establish a program to conduct research, 
     testing, and evaluation of programs for the control and 
     management of Johne's disease in livestock.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2002 through 
     2006.''.

     SEC. 749. GRANTS FOR YOUTH ORGANIZATIONS.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
     amended by section 748) is amended by adding at the end the 
     following:

     ``SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Cooperative State Research, Education, 
     and Extension Service, shall make grants to the Girl Scouts 
     of the United States of America, the Boy Scouts of America, 
     the National 4-H Council, and the National FFA Organization 
     to establish pilot projects to expand the programs carried 
     out by the organizations in rural areas and small towns 
     (including, with respect to the National 4-H Council, 
     activities provided for in Public Law 107-19 (115 Stat. 
     153)).
       ``(b) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available $8,000,000 
     for fiscal year 2002, which shall remain available until 
     expended.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section such sums as are 
     necessary for each of fiscal years 2003 through 2006.''.

     SEC. 750. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT 
                   FOR DEVELOPING COUNTRIES.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
     amended by section 749) is amended by adding at the end the 
     following:

     ``SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) an institution of higher education;
       ``(B) a nonprofit organization; or
       ``(C) a consortium of for-profit institutions and 
     agricultural research institutions.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' means--
       ``(A) a historically black land-grant college or 
     university;
       ``(B) a Hispanic-serving institution (as defined in section 
     1404 of the National, Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); or
       ``(C) a tribal college or university that offers a 
     curriculum in agriculture or the biosciences.
       ``(b) Grant Program.--
       ``(1) In general.--The Secretary (acting through the 
     Foreign Agricultural Service) shall establish and administer 
     a program to make competitive grants to eligible entities to 
     develop agricultural biotechnology for developing countries.
       ``(2) Use of funds.--Funds provided to an eligible entity 
     under this section may be used for projects that use 
     biotechnology to--
       ``(A) enhance the nutritional content of agricultural 
     products that can be grown in developing countries;
       ``(B) increase the yield and safety of agricultural 
     products that can be grown in developing countries;
       ``(C) increase the yield of agricultural products that are 
     drought- and stress-resistant and that can be grown in 
     developing countries;
       ``(D) extend the growing range of crops that can be grown 
     in developing countries;
       ``(E) enhance the shelf-life of fruits and vegetables grown 
     in developing countries;
       ``(F) develop environmentally sustainable agricultural 
     products that can be grown in developing countries; and
       ``(G) develop vaccines to immunize against life-threatening 
     illnesses and other medications that can be administered by 
     consuming genetically-engineered agricultural products.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 750A. OFFICE OF PEST MANAGEMENT POLICY.

       Section 614(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 750B. SENIOR SCIENTIFIC RESEARCH SERVICE.

       Subtitle B of title VI of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.

       ``(a) In General.--There is established in the Department 
     of Agriculture the Senior Scientific Research Service 
     (referred to in this section as the `Service').
       ``(b) Members.--
       ``(1) In general.--Subject to paragraphs (2) through (4), 
     the Secretary shall appoint the members of the Service.
       ``(2) Qualifications.--To be eligible for appointment to 
     the Service, an individual shall--
       ``(A) have conducted outstanding research in the field of 
     agriculture or forestry;
       ``(B) have earned a doctoral level degree at an institution 
     of higher education (as defined in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001)); and
       ``(C) meet qualification standards prescribed by the 
     Director of the Office of Personnel Management for 
     appointment to a position at level GS-15 of the General 
     Schedule.
       ``(3) Number.--Not more than 100 individuals may serve as 
     members of the Service at any 1 time.
       ``(4) Other requirements.--
       ``(A) In general.--Subject to subparagraph (B) and 
     subsection (d)(2), the Secretary may appoint and employ a 
     member of the Service without regard to--
       ``(i) the provisions of title 5, United States Code, 
     governing appointments in the competitive service;
       ``(ii) the provisions of subchapter I of chapter 35 of 
     title 5, United States Code, relating to retention 
     preference;
       ``(iii) the provisions of chapter 43 of title 5, United 
     States Code, relating to performance appraisal and 
     performance actions;
       ``(iv) the provisions of chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification and General Schedule pay rates; and
       ``(v) the provisions of chapter 75 of title 5, United 
     States Code, relating to adverse actions.
       ``(B) Exception.--A member of the Service appointed and 
     employed by the Secretary under subparagraph (A) shall have 
     the same right of appeal to the Merit Systems Protection 
     Board and the same right to file a complaint with the Office 
     of Special Counsel as an employee appointed to a position at 
     level GS-15 of the General Schedule.
       ``(c) Performance Appraisal System.--The Secretary shall 
     develop a performance appraisal system for members of the 
     Service that is designed to--
       ``(1) provide for the systematic appraisal of the 
     employment performance of the members; and
       ``(2) encourage excellence in employment performance by the 
     members.
       ``(d) Compensation.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall determine the compensation of members of the Service.
       ``(2) Limitations.--The rate of pay for a member of the 
     Service shall--
       ``(A) not be less than the minimum rate payable for a 
     position at level GS-15 of the General Schedule; and
       ``(B) not be more than the rate payable for a position at 
     level I of the Executive Schedule, unless the rate is 
     approved by the President under section 5377(d)(2) of title 
     5, United States Code.
       ``(e) Retirement Contributions.--
       ``(1) In general.--On the request of a member of the 
     Service who was an employee of an institution of higher 
     education (as defined in section 101 of the Higher Education 
     Act of 1965 (20 U.S.C. 1001)) immediately prior to 
     appointment as a member of the Service and who retains the 
     right to continue to make contributions to the retirement 
     system of the institution, the Secretary may contribute an 
     amount not to exceed 10 percent of the basic pay of the 
     member to the retirement system of the institution on behalf 
     of the member.
       ``(2) Federal retirement system.--
       ``(A) In general.--Subject to subparagraph (B), a member 
     for whom a contribution is made under paragraph (1) shall 
     not, as a result of serving as a member of the Service, be 
     covered by, or earn service credit under, chapter 83 or 84 of 
     title 5, United States Code.

[[Page S1094]]

       ``(B) Annual leave.--Service of a member of the Service 
     described in subparagraph (A) shall be creditable for 
     determining years of service under section 6303(a) of title 
     5, United States Code.
       ``(f) Involuntary Separation.--
       ``(1) In general.--Subject to paragraph (2) and 
     notwithstanding the provisions of title 5, United States 
     Code, governing appointment in the competitive service, in 
     the case of an individual who is separated from the Service 
     involuntarily and without cause--
       ``(A) the Secretary may appoint the individual to a 
     position in the competitive civil service at level GS-15 of 
     the General Schedule; and
       ``(B) the appointment shall be a career appointment.
       ``(2) Excepted civil service.--In the case of an individual 
     described in paragraph (1) who immediately prior to 
     appointment as a member of the Service was not a career 
     appointee in the civil service or the Senior Executive 
     Service, the appointment of the individual under paragraph 
     (1)--
       ``(A) shall be to the excepted civil service; and
       ``(B) may not exceed a period of 2 years.''.

                     Subtitle D--Land-Grant Funding

                      CHAPTER 1--1862 INSTITUTIONS

     SEC. 751. CARRYOVER.

       Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is 
     amended by striking subsection (c) and inserting the 
     following:
       ``(c) Carryover.--
       ``(1) In general.--The balance of any annual funds provided 
     under this Act to a State agricultural experiment station for 
     a fiscal year that remains unexpended at the end of the 
     fiscal year may be carried over for use during the following 
     fiscal year.
       ``(2) Failure to expend full allotment.--If any unexpended 
     balance carried over by a State is not expended by the end of 
     the second fiscal year, an amount equal to the unexpended 
     balance shall be deducted from the next succeeding annual 
     allotment to the State.''.

     SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 7(e) of the Hatch Act of 1887 (7 U.S.C. 361g(e)) is 
     amended by adding at the end the following:
       ``(5) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRATION 
                   REQUIREMENTS.

       (a) Multistate Cooperative Extension Activities.--Section 3 
     of the Smith-Lever Act (7 U.S.C. 343) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Multistate Cooperative Extension Activities.--
       ``(1) Definition of multistate activity.--In this 
     subsection, the term `multistate activity' means a 
     cooperative extension activity in which 2 or more States 
     cooperate to resolve problems that concern more than 1 State.
       ``(2) Requirement.--
       ``(A) In general.--To receive funding under subsections (b) 
     and (c) for a fiscal year, a State must have expended on 
     multistate activities, in the preceding fiscal year, an 
     amount equivalent to not less than 25 percent of the funds 
     paid to the State under subsections (b) and (c) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative extension funds expended by the State in the 
     preceding fiscal year, including Federal, State, and local 
     funds.
       ``(3) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for multistate 
     activities under paragraph (2) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(4) Plan of work.--The State shall include in the plan of 
     work of the State required under section 4 a description of 
     the manner in which the State will meet the requirements of 
     this subsection.
       ``(5) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.''.
       (b) Integrated Research and Extension Activities.--Section 
     3 of the Hatch Act of 1887 (7 U.S.C. 361c) is amended by 
     striking subsection (i) and inserting the following:
       ``(i) Integrated Research and Extension Activities.--
       ``(1) In general.--
       ``(A) Requirement.--To receive funding under this Act and 
     subsections (b) and (c) of section 3 of the Smith-Lever Act 
     (7 U.S.C. 343) for a fiscal year, a State must have expended 
     on activities that integrate cooperative research and 
     extension (referred to in this section as `integrated 
     activities'), in the preceding fiscal year, an amount 
     equivalent to not less than 25 percent of the funds paid to 
     the State under this section and subsections (b) and (c) of 
     section 3 of the Smith-Lever Act (7 U.S.C. 343) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative research and extension funds expended by the 
     State in the prior fiscal year, including Federal, State, and 
     local funds.
       ``(2) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for integrated 
     activities under paragraph (1) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(3) Plan of work.--The State shall include in the plan of 
     work of the State required under section 7 of this Act and 
     under section 4 of the Smith-Lever Act (7 U.S.C. 344), as 
     applicable, a description of the manner in which the State 
     will meet the requirements of this subsection.
       ``(4) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.
       ``(5) Relationship to other requirements.--Funds described 
     in paragraph (1)(B) that a State uses to calculate the 
     required amount of expenditures for integrated activities 
     under paragraph (1)(A) may also be used in the same fiscal 
     year to calculate the amount of expenditures for multistate 
     activities required under subsection (c)(3) of this section 
     and section 3(h) of the Smith-Lever Act (7 U.S.C. 343(h)).''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

                      CHAPTER 2--1994 INSTITUTIONS

     SEC. 754. EXTENSION AT 1994 INSTITUTIONS.

       Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Extension at 1994 institutions.--
       ``(A) In general.--There are authorized to be appropriated 
     for fiscal year 2002 and each subsequent fiscal year, for 
     payment to 1994 Institutions (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)), such sums as are 
     necessary for the purposes set forth in section 2, to remain 
     available until expended.
       ``(B) Distribution.--Amounts made available under 
     subparagraph (A)--
       ``(i) shall be distributed on the basis of a formula to be 
     developed and implemented by the Secretary, in consultation 
     with the 1994 Institutions; and
       ``(ii) may include payments for extension activities 
     carried out during 1 or more fiscal years.
       ``(C) Cooperative agreement.--In accordance with such 
     regulations as the Secretary may promulgate, a 1994 
     Institution may administer funds received under this 
     paragraph through a cooperative agreement with an 1862 
     Institution or an 1890 Institution (as those terms are 
     defined in section 2 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7601)).''.

     SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Technical Amendment To Reflect Name Changes.--Section 
     532 of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking paragraphs (1) through (30) and inserting the 
     following:
       ``(1) Bay Mills Community College.
       ``(2) Blackfeet Community College.
       ``(3) Cankdeska Cikana Community College.
       ``(4) College of Menominee Nation.
       ``(5) Crownpoint Institute of Technology.
       ``(6) D-Q University.
       ``(7) Dine College.
       ``(8) Chief Dull Knife Memorial College.
       ``(9) Fond du Lac Tribal and Community College.
       ``(10) Fort Belknap College.
       ``(11) Fort Berthold Community College.
       ``(12) Fort Peck Community College.
       ``(13) Haskell Indian Nations University.
       ``(14) Institute of American Indian and Alaska Native 
     Culture and Arts Development.
       ``(15) Lac Courte Oreilles Ojibwa Community College.
       ``(16) Leech Lake Tribal College.
       ``(17) Little Big Horn College.
       ``(18) Little Priest Tribal College.
       ``(19) Nebraska Indian Community College.
       ``(20) Northwest Indian College.
       ``(21) Oglala Lakota College.
       ``(22) Salish Kootenai College.
       ``(23) Sinte Gleska University.
       ``(24) Sisseton Wahpeton Community College.
       ``(25) Si Tanka/Huron University.
       ``(26) Sitting Bull College.
       ``(27) Southwestern Indian Polytechnic Institute.
       ``(28) Stone Child College.
       ``(29) Turtle Mountain Community College.
       ``(30) United Tribes Technical College.
       ``(31) White Earth Tribal and Community College.''.
       (b) Accreditation Requirement for Research Grants.--Section 
     533(a)(3) of the Equity in Educational Land-Grant Status Act 
     of 1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``sections 534 and 535'' and inserting ``sections 
     534, 535, and 536''.
       (c) Land-Grant Status for 1994 Institutions.--Section 
     533(b) of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``$4,600,000 for each of fiscal years 1996 through 
     2002'' and inserting ``such sums as are necessary for each of 
     fiscal years 2002 through 2006''.
       (d) Change of Indian Student Count Formula.--Section 
     533(c)(4)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``(as defined in section 390(3) of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2397h(3)) for each 1994 Institution for the 
     fiscal year'' and inserting ``(as defined in section 2(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1801(a)))''.
       (e) Increase in Institutional Payments.--Section 
     534(a)(1)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``$50,000'' and inserting ``$100,000''.

[[Page S1095]]

       (f) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382) is amended--
       (1) in subsection (b)(1), by striking ``2002'' and 
     inserting ``2006''; and
       (2) in subsection (c), by striking ``$1,700,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``such sums as 
     are necessary for each of fiscal years 2002 through 2006''.
       (g) Research Grants.--Section 536(c) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
     Public Law 103-382) is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 756. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.

       Section 406(b) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by 
     inserting ``and 1994 Institutions'' before ``on a competitive 
     basis''.

                      CHAPTER 3--1890 INSTITUTIONS

     SEC. 757. AUTHORIZATION PERCENTAGES FOR RESEARCH AND 
                   EXTENSION FORMULA FUNDS.

       (a) Extension.--Section 1444(a) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence; and
       (3) in the third sentence, by striking ``Beginning'' 
     through ``6 per centum'' and inserting the following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 15 percent'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated''; and
       (4) by striking ``No more'' and inserting the following:
       ``(4) Carryover.--No more''.
       (b) Research.--Section 1445(a) of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3222(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence and inserting the 
     following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 25 percent of the 
     total appropriations for the fiscal year under section 3 of 
     the Hatch Act of 1887 (7 U.S.C. 361c).'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated'';
       (4) by striking ``The eligible'' and inserting the 
     following:
       ``(4) Coordination.--The eligible''; and
       (5) by striking ``No more'' and inserting the following:
       ``(5) Carryover.--No more''.

     SEC. 758. CARRYOVER.

       Section 1445(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a) 
     (as amended by section 757(b)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Carryover.--
       ``(A) In general.--The balance of any annual funds provided 
     to an eligible institution for a fiscal year under this 
     section that remains unexpended at the end of the fiscal year 
     may be carried over for use during the following fiscal year.
       ``(B) Failure to expend full amount.--If any unexpended 
     balance carried over by an eligible institution is not 
     expended by the end of the second fiscal year, an amount 
     equal to the unexpended balance shall be deducted from the 
     next succeeding annual allotment to the eligible 
     institution.''.

     SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 1445(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222(c)(3)) is amended by adding at the end the following:
       ``(F) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 760. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``$15,000,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``$25,000,000 
     for each of fiscal years 2002 through 2006''.

     SEC. 761. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

       (a) Authorization.--Section 1448 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3222c) is amended by striking ``2002'' each 
     place it appears in subsections (a)(1) and (f) and inserting 
     ``2006''.
       (b) Redesignation.--Section 1448 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3222c) is amended--
       (1) in the section heading, by striking ``CENTENNIAL'' and 
     inserting ``VIRTUAL''; and
       (2) by striking ``centennial'' each place it appears and 
     inserting ``virtual''.

     SEC. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES.

       Section 1449 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) 
     is amended by striking subsections (c) and (d) and inserting 
     the following:
       ``(c) Matching Formula.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the State shall provide matching funds from non-Federal 
     sources.
       ``(2) Amount.--The amount of the matching funds shall be 
     equal to not less than--
       ``(A) for fiscal year 2003, 60 percent of the formula funds 
     to be distributed to the eligible institution; and
       ``(B) for each of fiscal years 2004 through 2006, 110 
     percent of the amount required under this paragraph for the 
     preceding fiscal year.
       ``(d) Waivers.--Notwithstanding subsection (f), for any of 
     fiscal years 2003 through 2006, the Secretary may waive the 
     matching funds requirement under subsection (c) for any 
     amount above the level of 50 percent for an eligible 
     institution of a State if the Secretary determines that the 
     State will be unlikely to meet the matching requirement.''.

                   CHAPTER 4--LAND-GRANT INSTITUTIONS

                         Subchapter A--General

     SEC. 771. PRIORITY-SETTING PROCESS.

       Section 102(c)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7612(c)(1)) is 
     amended--
       (1) by striking ``establish and implement a process for 
     obtaining'' and inserting ``obtain public''; and
       (2) by striking the period at the end and inserting the 
     following: ``through a process that reflects transparency and 
     opportunity for input from producers of diverse agricultural 
     crops and diverse geographic and cultural communities.''.

     SEC. 772. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

       (a) Termination.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     terminate each appointment listed as an excepted position 
     under schedule A of the General Schedule made by the 
     Secretary to the Federal civil service of an individual who 
     holds dual government appointments, and who carries out 
     agricultural extension work in a program at a college or 
     university eligible to receive funds, under--
       (1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
       (2) section 1444 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221); 
     or
       (3) section 208(e) of the District of Columbia Public 
     Postsecondary Education Reorganization Act (88 Stat. 1428).
       (b) Continuation of Certain Federal Benefits.--
       (1) In general.--Notwithstanding title 5, United States 
     Code, and subject to paragraph (2), an individual described 
     in subsection (a), during the period the individual is 
     employed in an agricultural extension program described in 
     subsection (a) without a break in service, shall continue 
     to--
       (A) be eligible to participate, to the same extent that the 
     individual was eligible to participate (on the day before the 
     date of enactment of this Act), in--
       (i) the Federal Employee Health Benefits Program;
       (ii) the Federal Employee Group Life Insurance Program;
       (iii) the Civil Service Retirement System;
       (iv) the Federal Employee Retirement System; and
       (v) the Thrift Savings Plan; and
       (B) receive Federal Civil Service employment credit to the 
     same extent that the individual was receiving such credit on 
     the day before the date of enactment of this Act.
       (2) Limitations.--An individual may continue to be eligible 
     for the benefits described in paragraph (1) if--
       (A) in the case of an individual who remains employed in 
     the agricultural extension program described in subsection 
     (a) on the date of the enactment of this Act, the employing 
     college or university continues to fulfill the administrative 
     and financial responsibilities (including making agency 
     contributions) associated with providing those benefits, as 
     determined by the Secretary of Agriculture; and
       (B) in the case of an individual who changes employment to 
     a second college or university described in subsection (a)--
       (i) the individual continues to work in an agricultural 
     extension program described in subsection (a), as determined 
     by the Secretary of Agriculture;
       (ii) the second college or university--

       (I) fulfills the administrative and financial 
     responsibilities (including making agency contributions) 
     associated with providing those benefits, as determined by 
     the Secretary of Agriculture; and
       (II) within 120 days before the date of the employment of 
     the individual, had employed a different individual described 
     in subsection (a) who had performed the same duties of 
     employment; and

       (iii) the individual was eligible for those benefits on the 
     day before the date of enactment of this Act.

         Subchapter B--Land-Grant Institutions in Insular Areas

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

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101 et seq.) (as amended by 
     section 723) is amended by adding at the end the following:

         ``Subtitle O--Land Grant Institutions in Insular Areas

     ``SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

       ``(a) In General.--The Secretary may make competitive or 
     noncompetitive grants to State

[[Page S1096]]

     cooperative institutions in insular areas to strengthen the 
     capacity of State cooperative institutions to carry out 
     distance food and agricultural education programs using 
     digital network technologies.
       ``(b) Use.--Grants made under this section shall be used--
       ``(1) to acquire the equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, and infrastructure necessary to teach students 
     and teachers about technology in the classroom;
       ``(2) to develop and provide educational services 
     (including faculty development) to prepare students or 
     faculty seeking a degree or certificate that is approved by 
     the State or a regional accrediting body recognized by the 
     Secretary of Education;
       ``(3) to provide teacher education, library and media 
     specialist training, and preschool and teacher aid 
     certification to individuals who seek to acquire or enhance 
     technology skills in order to use technology in the classroom 
     or instructional process;
       ``(4) to implement a joint project to provide education 
     regarding technology in the classroom with a local 
     educational agency, community-based organization, national 
     nonprofit organization, or business, including a minority 
     business or a business located in a HUBZone established under 
     section 31 of the Small Business Act (15 U.S.C. 657a); or
       ``(5) to provide leadership development to administrators, 
     board members, and faculty of eligible institutions with 
     institutional responsibility for technology education.
       ``(c) Limitation on Use of Grant Funds.--Funds provided 
     under this section shall not be used for the planning, 
     acquisition, construction, rehabilitation, or repair of a 
     building or facility.
       ``(d) Administration of Program.--The Secretary may carry 
     out this section in a manner that recognizes the different 
     needs and opportunities for State cooperative institutions in 
     the Atlantic and Pacific Oceans.
       ``(e) Matching Requirement.--
       ``(1) In general.--The Secretary may establishment a 
     requirement that a State cooperative institution receiving a 
     grant under this section shall provide matching funds from 
     non-Federal sources in an amount equal to not less than 50 
     percent of the grant.
       ``(2) Waivers.--If the Secretary establishes a matching 
     requirement under paragraph (1), the requirement shall 
     include an option for the Secretary to waive the requirement 
     for an insular area State cooperative institution for any 
     fiscal year if the Secretary determines that the institution 
     will be unlikely to meet the matching requirement for the 
     fiscal year.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $4,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 776. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION 
                   FORMULA FUNDS FOR INSULAR AREA LAND-GRANT 
                   INSTITUTIONS.

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

                         Subtitle E--Other Laws

     SEC. 781. CRITICAL AGRICULTURAL MATERIALS.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 782. RESEARCH FACILITIES.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2002'' 
     and inserting ``2006''.

     SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANTS.

       The Competitive, Special, and Facilities Research Grant Act 
     (7 U.S.C. 450i) is amended in subsection (b)--
       (1) in paragraph (2), by striking ``in--'' and all that 
     follows and inserting ``, as those needs are determined by 
     the Secretary, in consultation with the National Agricultural 
     Research, Extension, Education, and Economics Advisory Board, 
     not later than July 1 of each fiscal year for the purposes of 
     the following fiscal year.''; and
       (2) in paragraph (10), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS AND 
                   RANCHERS.

       (a) In General.--Section 524(a)(3) of the Federal Crop 
     Insurance Act (7 U.S.C. 1524(a)(3)) is amended by striking 
     subparagraph (A) and inserting the following:
       ``(A) Authority.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a program under which competitive grants are 
     made to qualified public and private entities (including 
     land-grant colleges and universities, cooperative extension 
     services, colleges or universities, and community colleges), 
     as determined by the Secretary, for the purpose of--
       ``(i) educating producers generally about the full range of 
     risk management activities, including futures, options, 
     agricultural trade options, crop insurance, cash forward 
     contracting, debt reduction, production diversification, farm 
     resources risk reduction, and other risk management 
     strategies; or
       ``(ii) educating beginning farmers and ranchers--

       ``(I) in the areas described in clause (i); and
       ``(II) in risk management strategies, as part of programs 
     that are specifically targeted at beginning farmers and 
     ranchers.''.

       (b) Technical Correction.--Section 524(b) of the Federal 
     Crop Insurance Act (7 U.S.C. 1524(b)) is amended by 
     redesignating the second paragraph (2) and paragraph (3) as 
     paragraphs (3) and (4), respectively.

     SEC. 786. AQUACULTURE.

       Section 10 of the National Aquaculture Act of 1980 (16 
     U.S.C. 2809) is amended by striking ``2002'' each place it 
     appears and inserting ``2006''.

     SEC. 787. CARBON CYCLE RESEARCH.

       Section 221 of the Agricultural Risk Protection Act of 2000 
     (114 Stat. 407) is amended--
       (1) in subsection (a), by striking ``Of the amount'' and 
     all that follows through ``to provide'' and inserting ``To 
     the extent that funds are made available for the purpose, the 
     Secretary shall provide'';
       (2) in subsection (d), by striking ``under subsection (a)'' 
     and inserting ``to carry out this section''; and
       (3) by adding at the end the following:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 2002 through 
     2006 such sums as are necessary to carry out this section.''.

                      Subtitle F--New Authorities

     SEC. 791. DEFINITIONS.

       In this subtitle:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 792. REGULATORY AND INSPECTION RESEARCH.

       (a) Definitions.--In this section:
       (1) Inspection or regulatory agency of the department.--The 
     term ``inspection or regulatory agency of the Department'' 
     includes--
       (A) the Animal and Plant Health Inspection Service;
       (B) the Food Safety and Inspection Service;
       (C) the Grain Inspection, Packers, and Stockyards 
     Administration; and
       (D) the Agricultural Marketing Service.
       (2) Urgent applied research needs.--The term ``urgent 
     applied research needs'' includes research necessary to carry 
     out--
       (A) agricultural marketing programs;
       (B) programs to protect the animal and plant resources of 
     the United States; and
       (C) educational programs or special studies to improve the 
     safety of the food supply of the United States.
       (b) Timely, Cost-Effective Research.--To meet the urgent 
     applied research needs of inspection or regulatory agencies 
     of the Department, the Secretary--
       (1) may use a public or private source; and
       (2) shall use the most practicable source to provide 
     timely, cost-effective means of providing the research.
       (c) Conflicts of Interest.--The Secretary shall establish 
     guidelines to prevent any conflict of interest that may arise 
     if an inspection or regulatory agency of the Department 
     obtains research from any Federal agency the work or 
     technology transfer efforts of which are funded in part by an 
     industry subject to the jurisdiction of the inspection or 
     regulatory agency of the Department.
       (d) Regulations.--The Secretary may promulgate such 
     regulations as are necessary to carry out this section.

     SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.

       (a) In General.--Subject to subsection (b), in addition to 
     any other authority that the Secretary may have to transfer 
     appropriated funds, the Secretary may transfer up to 2 
     percent of any appropriation made available to an office or 
     agency of the Department for a fiscal year for agricultural 
     research, extension, marketing, animal and plant health, 
     nutrition, food safety, nutrition education, or forestry 
     programs to any other appropriation for an office or agency 
     of the Department for emergency research, extension, or 
     education activities needed to address imminent threats to 
     animal and plant health, food safety, or human nutrition, 
     including bioterrorism.
       (b) Limitations.--The Secretary may transfer funds under 
     subsection (a) only--
       (1) on a determination by the Secretary that the need is so 
     imminent that the need will not

[[Page S1097]]

     be timely met by annual, supplemental, or emergency 
     appropriations;
       (2) in an aggregate amount that does not exceed $5,000,000 
     for any fiscal year; and
       (3) with the approval of the Director of the Office of 
     Management and Budget.

     SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

       (a) In General.--The Secretary shall conduct a review of 
     the purpose, efficiency, effectiveness, and impact on 
     agricultural research of the Agricultural Research Service.
       (b) Administration.--In conducting the review, the 
     Secretary shall use persons outside the Department, 
     including--
       (1) Federal scientists;
       (2) college and university faculty;
       (3) private and nonprofit scientists; or
       (4) other persons familiar with the role of the 
     Agricultural Research Service in conducting agricultural 
     research in the United States.
       (c) Report.--Not later than September 30, 2004, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report on the results 
     of the review.
       (d) Funding.--The Secretary shall use to carry out this 
     section not more than 0.1 percent of the amount of 
     appropriations made available to the Agricultural Research 
     Service for each of fiscal years 2002 through 2004.

     SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOPMENT.

       (a) In General.--The Secretary, acting through the Rural 
     Business-Cooperative Service and the Agricultural Research 
     Service, shall establish a program to promote the 
     availability of technology transfer opportunities of the 
     Department to rural businesses and residents.
       (b) Components of Program.--The program shall, to the 
     maximum extent practicable, include--
       (1) a website featuring information about the program and 
     technology transfer opportunities of the Department;
       (2) an annual joint program for State economic development 
     directors and Department rural development directors 
     regarding technology transfer opportunities of the 
     Agricultural Research Service and other offices and agencies 
     of the Department; and
       (3) technology transfer opportunity programs at each 
     Agricultural Research Service laboratory, conducted at least 
     biennially, which may include participation by other local 
     Federal laboratories, as appropriate.
       (c) Funding.--The Secretary shall use to carry out this 
     section--
       (1) amounts made available to the Agricultural Research 
     Service; and
       (2) amounts made available to the Rural Business-
     Cooperative Service for salaries and expenses.

     SEC. 796. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       (a) Definition of Beginning Farmer or Rancher.--In this 
     section, the term ``beginning farmer or rancher'' means a 
     person that--
       (1)(A) has not operated a farm or ranch; or
       (B) has operated a farm or ranch for not more than 10 
     years; and
       (2) meets such other criteria as the Secretary may 
     establish.
       (b) Program.--The Secretary shall establish a beginning 
     farmer and rancher development program to provide training, 
     education, outreach, and technical assistance initiatives for 
     beginning farmers or ranchers.
       (c) Grants.--
       (1) In general.--In carrying out this section, the 
     Secretary shall make competitive grants to support new and 
     established local and regional training, education, outreach, 
     and technical assistance initiatives for beginning farmers or 
     ranchers, including programs and services (as appropriate) 
     relating to--
       (A) mentoring, apprenticeships, and internships;
       (B) resources and referral;
       (C) assisting beginning farmers or ranchers in acquiring 
     land from retiring farmers and ranchers;
       (D) innovative farm and ranch transfer strategies;
       (E) entrepreneurship and business training;
       (F) model land leasing contracts;
       (G) financial management training;
       (H) whole farm planning;
       (I) conservation assistance;
       (J) risk management education;
       (K) diversification and marketing strategies;
       (L) curriculum development;
       (M) understanding the impact of concentration and 
     globalization;
       (N) basic livestock and crop farming practices;
       (O) the acquisition and management of agricultural credit;
       (P) environmental compliance;
       (Q) information processing; and
       (R) other similar subject areas of use to beginning farmers 
     or ranchers.
       (2) Eligibility.--To be eligible to receive a grant under 
     this subsection, the recipient shall be a collaborative 
     State, tribal, local, or regionally-based network or 
     partnership of public or private entities, which may 
     include--
       (A) a State cooperative extension service;
       (B) a Federal, State, or tribal agency;
       (C) a community-based and nongovernmental organization;
       (D) a college or university (including an institution 
     awarding an associate's degree) or foundation maintained by a 
     college or university; or
       (E) any other appropriate partner, as determined by the 
     Secretary.
       (3) Term of grant.--The term of a grant under this 
     subsection shall not exceed 3 years.
       (4) Matching requirement.--To be eligible to receive a 
     grant under this subsection, a recipient shall provide a 
     match in the form of cash or in-kind contributions in an 
     amount equal to 25 percent of the funds provided by the 
     grant.
       (5) Set-aside.--Not less than 25 percent of funds used to 
     carry out this subsection for a fiscal year shall be used to 
     support programs and services that address the needs of--
       (A) limited resource beginning farmers or ranchers (as 
     defined by the Secretary);
       (B) socially disadvantaged beginning farmers or ranchers 
     (as defined in section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e)); and
       (C) farmworkers desiring to become farmers or ranchers.
       (6) Prohibition.--A grant made under this subsection may 
     not be used for the planning, repair, rehabilitation, 
     acquisition, or construction of a building or facility.
       (7) Administrative costs.--The Secretary shall use not more 
     than 4 percent of the funds made available to carry out this 
     section for administrative costs incurred by the Secretary in 
     carrying out this section.
       (d) Education Teams.--
       (1) In general.--In carrying out this section, the 
     Secretary shall establish beginning farmer and rancher 
     education teams to develop curricula and conduct educational 
     programs and workshops for beginning farmers or ranchers in 
     diverse geographical areas of the United States.
       (2) Curriculum.--In promoting the development of curricula, 
     the Secretary shall, to the maximum extent practicable, 
     include modules tailored to specific audiences of beginning 
     farmers or ranchers, based on crop or regional diversity.
       (3) Composition.--In establishing an education team for a 
     specific program or workshop, the Secretary shall, to the 
     maximum extent practicable--
       (A) obtain the short-term services of specialists with 
     knowledge and expertise in programs serving beginning farmers 
     or ranchers; and
       (B) use officers and employees of the Department with 
     direct experience in programs of the Department that may be 
     taught as part of the curriculum for the program or workshop.
       (4) Cooperation.--
       (A) In general.--In carrying out this subsection, the 
     Secretary shall cooperate, to the maximum extent practicable, 
     with--
       (i) State cooperative extension services;
       (ii) Federal and State agencies;
       (iii) community-based and nongovernmental organizations;
       (iv) colleges and universities (including an institution 
     awarding an associate's degree) or foundations maintained by 
     a college or university; and
       (v) other appropriate partners, as determined by the 
     Secretary.
       (B) Cooperative agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement to reflect the terms of any cooperation 
     under subparagraph (A).
       (e) Curriculum and Training Clearinghouse.--The Secretary 
     shall establish an online clearinghouse that makes available 
     to beginning farmers or ranchers education curricula and 
     training materials and programs, which may include online 
     courses for direct use by beginning farmers or ranchers.
       (f) Stakeholder Input.--In carrying out this section, the 
     Secretary shall seek stakeholder input from--
       (1) beginning farmers and ranchers;
       (2) national, State, tribal, and local organizations and 
     other persons with expertise in operating beginning farmer 
     and rancher programs; and
       (3) the Advisory Committee on Beginning Farmers and 
     Ranchers established under section 5 of the Agricultural 
     Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public 
     Law 102-554).
       (g) Participation by Other Farmers and Ranchers.--Nothing 
     in this section prohibits the Secretary from allowing farmers 
     and ranchers who are not beginning farmers or ranchers from 
     participating in programs authorized under this section to 
     the extent that the Secretary determines that such 
     participation is appropriate and will not detract from the 
     primary purpose of educating beginning farmers and ranchers.
       (h) Funding.--
       (1) Fees and contributions.--
       (A) In general.--The Secretary may--
       (i) charge a fee to cover all or part of the costs of 
     curriculum development and the delivery of programs or 
     workshops provided by--

       (I) a beginning farmer and rancher education team 
     established under subsection (d); or
       (II) the online clearinghouse established under subsection 
     (e); and

       (ii) accept contributions from cooperating entities under a 
     cooperative agreement entered into under subsection (d)(4)(B) 
     to cover all or part of the costs for the delivery of 
     programs or workshops by the beginning farmer and rancher 
     education teams.
       (B) Availability.--Fees and contributions received by the 
     Secretary under subparagraph (A) shall--
       (i) be deposited in the account that incurred the costs to 
     carry out this section;
       (ii) be available to the Secretary to carry out the 
     purposes of the account, without further appropriation;
       (iii) remain available until expended; and
       (iv) be in addition to any funds made available under 
     paragraph (2).
       (2) Transfers.--
       (A) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available for 2 
     fiscal years.
       (B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and

[[Page S1098]]

     shall use to carry out this section the funds transferred 
     under subparagraph (A), without further appropriation.

     SEC. 797. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
                   AGRICULTURAL RESEARCH.

       It is the sense of Congress that--
       (1) Federal funding for food and agricultural research has 
     been essentially constant for 2 decades, putting at risk the 
     scientific base on which food and agricultural advances have 
     been made;
       (2) the resulting increase in the relative proportion of 
     private sector, industry investments in food and agricultural 
     research has led to questions about the independence and 
     objectivity of research and outreach conducted by the Federal 
     and university research sectors; and
       (3) funding for food and agricultural research should be at 
     least doubled over the next 5 fiscal years--
       (A) to restore the balance between public and private 
     sector funding for food and agricultural research; and
       (B) to maintain the scientific base on which food and 
     agricultural advances are made.

     SEC. 798. RURAL POLICY RESEARCH.

       (a) In General.--There is established in the Treasury of 
     the United States an account to be known as the ``Rural 
     Research Fund Account'' (referred to in this section as the 
     ``Account'') to provide funds for activities described in 
     subsection (c).
       (b) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Account to 
     carry out this section $15,000,000, to remain available for 2 
     fiscal years.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (c) Purposes.--The Secretary shall use the funds in the 
     Account to make competitive research grants for applied and 
     outcome oriented research and policy research and analysis of 
     rural issues relating to--
       (1) rural sociology;
       (2) effects of demographic change, including aging 
     population, outmigration, and labor resources;
       (3) needs of groups of rural citizens, including senior 
     citizens, families, youth, children, and socially 
     disadvantaged individuals;
       (4) rural community development;
       (5) rural infrastructure, including water and waste, 
     community facilities, telecommunications, electricity, and 
     high-speed broadband services;
       (6) rural business development, including credit, venture 
     capital, cooperatives, value-added enterprises, new and 
     alternative markets, farm and rural enterprise formation, and 
     entrepreneurship;
       (7) farm management, including strategic planning, business 
     and marketing opportunities, risk management, natural 
     resources and environmental management, organic and 
     sustainable farming systems, public sector development of new 
     crops and crop varieties, and intergenerational transfer 
     strategies;
       (8) rural education and extension programs, including 
     methods of delivery, availability of resources, and use of 
     distance learning; and
       (9) rural health, including mental health, on-farm safety, 
     and food safety.
       (d) Requirements.--In making grants under this section, the 
     Secretary shall--
       (1) solicit and consider public input from persons who 
     conduct or use agricultural research, extension, education, 
     or rural development programs; and
       (2) ensure that funded proposals will provide high-quality 
     research that may be of use to public policymakers and 
     private entities in making decisions that affect development 
     in rural areas.
       (e) Eligible Grantees.--The Secretary may make a grant 
     under this section to--
       (1) an individual;
       (2) a college or university or a foundation maintained by a 
     college or university;
       (3) a State cooperative institution (as defined in section 
     1404 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103));
       (4) a community college;
       (5) a nonprofit organization, institution, or association;
       (6) a business association;
       (7) an agency of a State, local, or tribal government; or
       (8) a regional partnership of public and private agencies.
       (f) Term.--A grant under this section shall have a term 
     that does not exceed 5 years.
       (g) Matching Funds.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     may require as a condition of the grant that the grant 
     funding be matched, in whole or in part, with matching funds 
     from a non-Federal source.
       (2) Business associations.--The Secretary shall require 
     that a grant to a business association be matched with equal 
     matching funds from a non-Federal source.
       (h) Administrative Costs.--The Secretary may use not more 
     than 4 percent of the funds made available for grants under 
     this section to pay administrative costs incurred by the 
     Secretary in carrying out this section.

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

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

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

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

     SEC. 798C. ORGANICALLY PRODUCED PRODUCT RESEARCH AND 
                   EDUCATION.

       Not later than December 1, 2004, the Secretary, acting 
     through the Administrator of the Economic Research Service, 
     shall prepare, in consultation with the Advisory Committee on 
     Small Farms, and submit to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, a report 
     on--
       (1) the impact on small farms of the implementation of the 
     national organic program under part 205 of title 7, Code of 
     Federal Regulations; and
       (2) the production and marketing costs to producers and 
     handlers associated with transitioning to organic production.

     SEC. 798D. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

       The Secretary, acting through the Agricultural Research 
     Service (including the National Agriculture Library) and the 
     Economic Research Service, shall facilitate access by 
     research and extension professionals, farmers, and other 
     interested persons in the United States to, and the use by 
     those persons of, organic research conducted outside the 
     United States.

     SEC. 798E. REPORT ON PRODUCERS AND HANDLERS OF ORGANIC 
                   AGRICULTURAL PRODUCTS.

       Not later than 1 year after funds are made available to 
     carry out this section, the Secretary of Agriculture shall 
     submit to Congress a report that--
       (1) describes--
       (A) the extent to which producers and handlers of organic 
     agricultural products are contributing to research and 
     promotion programs of the Department of Agriculture;
       (B) the extent to which producers and handlers of organic 
     agricultural products are surveyed for ideas for research and 
     promotion;
       (C) ways in which the programs reflect the contributions 
     made by producers and handlers of organic agricultural 
     products and directly benefit the producers and handlers; and
       (D) the implementation of initiatives that directly benefit 
     organic producers and handlers; and
       (2) evaluates industry and other proposals for improving 
     the treatment of certified organic agricultural products 
     under Federal marketing orders, including proposals to target 
     additional resources for research and promotion of organic 
     products and to differentiate between certified organic and 
     other products in new or existing volume limitations or other 
     orderly marketing requirements.

                          TITLE VIII--FORESTRY

     SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

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

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

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

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

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

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

       ``The Secretary shall establish a program, to be known as 
     the `Sustainable Forestry Outreach Initiative', to educate 
     landowners concerning--
       ``(1) the value and benefits of practicing sustainable 
     forestry;
       ``(2) the importance of professional forestry advice in 
     achieving sustainable forestry objectives; and
       ``(3) the variety of public and private sector resources 
     available to assist the landowners in planning for and 
     practicing sustainable forestry.''.
       (b) Renewable Resources Extension Activities.--
       (1) Authorization of appropriations.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended by striking the first sentence and inserting the 
     following: ``There is authorized to be appropriated to carry 
     out this Act $30,000,000 for each of fiscal years 2002 
     through 2006.''.
       (2) Termination date.--Section 8 of the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
     306) is amended by striking ``2000'' and inserting ``2006''.

     SEC. 804. FORESTRY INCENTIVES PROGRAM.

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

     SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Farmer or rancher.--The term `farmer or rancher' 
     means a person engaged in the production of an agricultural 
     commodity (including livestock).

[[Page S1099]]

       ``(2) Forestry cooperative.--The term `forestry 
     cooperative' means an association that is--
       ``(A) owned and operated by nonindustrial private forest 
     landowners; and
       ``(B) comprised of members--
       ``(i) of which at least 51 percent are farmers or ranchers; 
     and
       ``(ii) that use sustainable forestry practices on 
     nonindustrial private forest land to create a long-term, 
     sustainable income stream.
       ``(3) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' has the meaning given the 
     term `nonindustrial private forest lands' in section 5(c).
       ``(b) Establishment.--The Secretary shall establish a 
     program, to be known as the `sustainable forestry cooperative 
     program', under which the Secretary shall provide, to 
     nonprofit organizations on a competitive basis, grants to 
     establish, and develop and support, sustainable forestry 
     practices carried out by members of, forestry cooperatives.
       ``(c) Use of Funds.--
       ``(1) In general.--Subject to paragraph (2), funds from a 
     grant provided under this section shall be used for--
       ``(A) predevelopment, development, start-up, capital 
     acquisition, and marketing costs associated with a forestry 
     cooperative; or
       ``(B) the development or support of a sustainable forestry 
     practice of a member of a forestry cooperative.
       ``(2) Conditions
       ``(A) Development.--The Secretary shall provide funds under 
     paragraph (1)(A) only to a nonprofit organization with 
     demonstrated expertise in cooperative development, as 
     determined by the Secretary.
       ``(B) Compliance with plan.--A sustainable forestry 
     practice developed or supported through the use of funds from 
     a grant under this section shall comply with any applicable 
     standards for sustainable forestry contained in a management 
     plan that--
       ``(i) meets the requirements of section 6A(g); and
       ``(ii) is approved by the State forester (or equivalent 
     State official).
       ``(d) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $2,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

       (a) Findings and Purposes.--
       (1) Findings.--Congress finds that--
       (A) the United States is becoming increasingly dependent on 
     nonindustrial private forest land to supply necessary market 
     commodities and nonmarket conservation values;
       (B) there is a strong demand for expanded assistance 
     programs for owners of nonindustrial private forest land 
     because the majority of the wood supply of the United States 
     comes from nonindustrial private forest land;
       (C) soil, water, and air quality, fish and wildlife 
     habitat, aesthetic values, and opportunities for outdoor 
     recreation in the United States would be maintained and 
     improved through good stewardship of nonindustrial private 
     forest land;
       (D) the products and services resulting from stewardship of 
     nonindustrial private forest land contribute to the economic, 
     social, and ecological health and diversity of rural 
     communities;
       (E) catastrophic wildfires threaten human lives, property, 
     forests, and other resources;
       (F) Federal and State cooperation in forest fire prevention 
     and control has proven effective and valuable because 
     properly managed forest stands are less susceptible to 
     catastrophic fire, as demonstrated by the catastrophic fire 
     seasons of 1998 and 2000;
       (G) owners of nonindustrial private forest land face 
     increased pressure to make that land available for 
     development and other uses, resulting in forest land loss and 
     fragmentation that reduces the ability of private forest land 
     to provide a full range of societal benefits;
       (H) complex investments in the management of long-rotation 
     forest stands, including sustainable hardwood management, are 
     often the most difficult commitments for owners of 
     nonindustrial private forest land;
       (I) the investment of a single Federal dollar in State and 
     private forestry programs is estimated to leverage, on the 
     average, $9 from State, local, and private sources; and
       (J) comprehensive, multiresource planning assistance made 
     available to each landowner before the provision of technical 
     assistance would provide an opportunity to ensure that the 
     landowner is aware of the many projects and activities 
     eligible for cost-share assistance.
       (2) Purposes.--The purposes of this section are--
       (A) to strengthen the commitment of the Secretary to 
     sustainable forest management to enhance the productivity of 
     timber, fish and wildlife habitat, soil and water quality, 
     wetland, recreational resources, and aesthetic values of 
     forest land; and
       (B) to establish a coordinated and cooperative Federal, 
     State, and local sustainable forestry program for the 
     establishment, management, maintenance, enhancement, and 
     restoration of forests on nonindustrial private forest land.
       (b) Program.--The Cooperative Forestry Assistance Act of 
     1978 is amended by inserting after section 6 (16 U.S.C. 
     2103b) the following:

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

       ``(a) Definitions.--In this section:
       ``(1) Committee.--The term `Committee' means a State Forest 
     Stewardship Coordinating Committee established under section 
     19(b).
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Program.--The term `program' means the sustainable 
     forest management program established under subsection 
     (b)(1).
       ``(4) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' has the meaning given the 
     term `nonindustrial private forest lands' in section 5(c).
       ``(5) Owner.--The term `owner' means an owner of 
     nonindustrial private forest land.
       ``(6) State forester.--The term `State forester' means the 
     director or other head of a State forestry agency (or an 
     equivalent State official).
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish a 
     sustainable forest management program to--
       ``(A) provide financial assistance to State foresters; and
       ``(B) encourage the long-term sustainability of 
     nonindustrial private forest land in the United States by 
     assisting the owners of nonindustrial private forest land, 
     through State foresters, in more actively managing the 
     nonindustrial private forest land and related resources of 
     those owners through the use of State, Federal, and private 
     sector resource management expertise, financial assistance, 
     and educational programs.
       ``(2) Coordination.--The Secretary, acting through State 
     foresters, shall implement the program--
       ``(A) in coordination with the Committees; and
       ``(B) in consultation with--
       ``(i) other Federal, State, and local natural resource 
     management agencies;
       ``(ii) institutions of higher education; and
       ``(iii) a broad range of private sector interests.
       ``(c) State Priority Plan.--
       ``(1) In general.--Subject to paragraph (3), as a condition 
     of receipt of funding under the program, a State Forester and 
     the Committee of the State shall jointly develop and submit 
     to the Secretary a 5-year plan that describes the funding 
     priorities of the State in meeting the purposes of the 
     program.
       ``(2) Public participation.--The plan submitted to the 
     Secretary under paragraph (1) shall include documentation of 
     the efforts of the State to provide for public participation 
     in the development of the plan.
       ``(3) State priorities.--The Secretary shall ensure, to the 
     maximum extent practicable, that the need for expanded 
     technical assistance programs for owners is met in the annual 
     funding priorities of each State described in paragraph (1).
       ``(d) Purposes.--The Secretary shall allocate resources of 
     the Secretary among States in accordance with subsection (j) 
     to encourage, in accordance with the plan of each State 
     described in subsection (c)--
       ``(1) the investment in practices to establish, restore, 
     protect, manage, maintain, and enhance the health and 
     productivity of the nonindustrial private forest land in the 
     United States;
       ``(2) the occurrence of afforestation, reforestation, 
     improvement of poorly stocked stands, timber stand 
     improvement, practices necessary to improve seedling growth 
     and survival, and growth enhancement practices as needed to 
     enhance and sustain the long-term productivity of timber and 
     nontimber forest resources to--
       ``(A) meet projected public demand for forest resources; 
     and
       ``(B) provide environmental benefits;
       ``(3) the protection of riparian buffers and forest 
     wetland;
       ``(4) the maintenance and enhancement of fish and wildlife 
     habitat;
       ``(5) the enhancement of soil, air, and water quality;
       ``(6) through the use of agroforestry practices, the 
     reduction of soil erosion and maintenance of soil quality;
       ``(7) the maintenance and enhancement of the forest 
     landbase;
       ``(8) the reduction of the threat of catastrophic 
     wildfires; and
       ``(9) the preservation of aesthetic quality and 
     opportunities for outdoor recreation.
       ``(e) Eligibility.--
       ``(1) Cost-share assistance.--
       ``(A) In general.--Except as provided in paragraph (2), an 
     owner shall be eligible to receive cost-share assistance from 
     a State forester under the program if the owner--
       ``(i) develops a management plan in accordance with 
     subsection (f) that--

       ``(I) addresses site-specific activities and practices; and
       ``(II) is approved by the State forester;

       ``(ii) agrees to implement approved activities in 
     accordance with the management plan for a period of not less 
     than 10 years, unless the State forester approves a 
     modification to the management plan; and
       ``(iii) except as provided in subparagraph (B), owns not 
     more than 1,000 acres of nonindustrial private forest land.
       ``(B) Exception for significant public benefits.--The 
     Secretary may approve the provision of cost-share assistance 
     to an owner that owns more than 1,000 but less than 5,000 
     acres of nonindustrial private forest land if the Secretary, 
     in consultation with the State forester, determines that 
     significant public benefits will accrue as a result of the 
     approval.
       ``(2) Payment for plan development.--The Secretary, acting 
     through a State forester, may provide cost-share assistance 
     to an owner to develop a management plan.
       ``(3) Limitations.--An owner shall receive no cost-share 
     assistance for management of nonindustrial private forest 
     land under this section

[[Page S1100]]

     if the owner receives cost-share assistance for that land 
     under--
       ``(A) the forestry incentives program under section 4;
       ``(B) the stewardship incentives program under section 6; 
     or
       ``(C) any conservation program administered by the 
     Secretary.
       ``(4) Rate; schedule.--Subject to paragraph (5), the 
     Secretary, in consultation with the State forester, shall 
     determine the rate and timing of cost-share payments.
       ``(5) Amount.--
       ``(A) Percentage of cost.--Subject to subparagraph (B), a 
     cost-share payment shall not exceed the lesser of an amount 
     equal to--
       ``(i) 75 percent of the total cost of implementing the 
     project or activity; or
       ``(ii) such lesser percentage of the total cost of 
     implementing the project or activity as is determined by the 
     appropriate State forester.
       ``(B) Aggregate payment limit.--The Secretary shall 
     determine the maximum aggregate amount of cost-share payments 
     that an owner may receive under this section.
       ``(f) Management Plan.--An owner that seeks to participate 
     in the program shall--
       ``(1) submit to the State forester a management plan that--
       ``(A) meets the requirements of this section; and
       ``(B)(i) is prepared by, or in consultation with, a 
     professional resource manager;
       ``(ii) identifies and describes projects and activities to 
     be carried out by the owner to protect soil, water, air, 
     range, and aesthetic quality, recreation, timber, water, 
     wetland, and fish and wildlife resources on the land in a 
     manner that is compatible with the objectives of the owner;
       ``(iii) addresses any criteria established by the 
     applicable State and the applicable Committee; and
       ``(iv)(I) at a minimum, applies to the portion of the land 
     on which any project or activity funded under the program 
     will be carried out; or
       ``(II) in a case in which a project or activity described 
     in subclause (I) may affect acreage outside the portion of 
     the land on which the project or activity is carried out, 
     applies to all land of the owner that is in forest cover and 
     that may be affected by the project or activity; and
       ``(2) agree that all projects and activities conducted on 
     the land shall be consistent with the management plan.
       ``(g) Approved Activities.--
       ``(1) In general.--The Secretary, in consultation with the 
     State forester and the appropriate Committee, shall develop 
     for each State a list of approved forest activities and 
     practices eligible for cost-share assistance that meets the 
     purposes of the program described in subsection (d).
       ``(2) Types of activities.--Approved activities and 
     practices under paragraph (1) may consist of activities and 
     practices for--
       ``(A) the establishment, management, maintenance, and 
     restoration of forests for shelterbelts, windbreaks, 
     aesthetic quality, and other conservation purposes;
       ``(B) the sustainable growth and management of forests for 
     timber production;
       ``(C) the restoration, use, and enhancement of forest 
     wetland and riparian areas;
       ``(D) the protection of water quality and watersheds 
     through--
       ``(i) the planting of trees in riparian areas; and
       ``(ii) the enhanced management and maintenance of native 
     vegetation on land vital to water quality;
       ``(E) the preservation, restoration, or development of 
     habitat for plants, fish, and wildlife;
       ``(F)(i) the control, detection, monitoring, and prevention 
     of the spread of invasive species and pests on nonindustrial 
     private forest land; and
       ``(ii) the restoration of nonindustrial private forest land 
     affected by invasive species and pests;
       ``(G) the conduct of other management activities, such as 
     the reduction of hazardous fuel use, that reduce the risks to 
     forests posed by, and that restore, recover, and mitigate the 
     damage to forests caused by, fire or any other catastrophic 
     event, as determined by the Secretary;
       ``(H) the development of management plans;
       ``(I) the acquisition by the State of permanent easements 
     to maintain forest cover and protect important forest values; 
     and
       ``(J) the conduct of other activities approved by the 
     Secretary, in consultation with the State forester and the 
     appropriate Committees.
       ``(h) Failure To Comply.--
       ``(1) In general.--The Secretary shall establish a 
     procedure to recover cost-share payments made under this 
     section in any case in which the recipient of the payment 
     fails--
       ``(A) to implement a project or activity in accordance with 
     the management plan; or
       ``(B) comply with any requirement of this section.
       ``(2) Additional authority.--The authority under paragraph 
     (1) shall be in addition to, and not in lieu of, any other 
     authority available to the Secretary.
       ``(i) Reports.--
       ``(1) Interim report.--Not later than 2\1/2\ years after 
     the date on which funds are made available to implement a 
     State priority plan under subsection (c), the State 
     implementing the plan shall submit to the Secretary an 
     interim report describing the status of projects and 
     activities funded under the plan as of that date.
       ``(2) Final report.--Not later than 5 years after the date 
     on which funds are made available to implement a State 
     priority plan under subsection (c), the State implementing 
     the plan shall submit to the Secretary a final report 
     describing the status of all projects and activities funded 
     under the plan as of that date.
       ``(j) Distribution.--
       ``(1) In general.--The Secretary, acting through State 
     foresters, shall distribute funds available for cost sharing 
     under the program based on a nationwide funding formula 
     developed under paragraph (2).
       ``(2) Formula.--In developing the formula referred to in 
     paragraph (1), the Secretary shall--
       ``(A) assess public benefits that would result from the 
     distribution; and
       ``(B) consider--
       ``(i) the total acreage of nonindustrial private forest 
     land in each State;
       ``(ii) the potential productivity of that land, as 
     determined by the Secretary;
       ``(iii) the number of owners eligible for cost sharing in 
     each State;
       ``(iv) the opportunities to enhance nontimber resources on 
     that land, including--

       ``(I) the protection of riparian buffers and forest 
     wetland;
       ``(II) the preservation of fish and wildlife habitat;
       ``(III) the enhancement of soil, air, and water quality; 
     and
       ``(IV) the preservation of aesthetic quality and 
     opportunities for outdoor recreation;

       ``(v) the anticipated demand for timber and nontimber 
     resources in each State;
       ``(vi) the need to improve forest health to minimize the 
     damaging effects of catastrophic fire, insects, disease, or 
     weather;
       ``(vii) the need and demand for agroforestry practices in 
     each State;
       ``(viii) the need to maintain and enhance the forest 
     landbase; and
       ``(ix) the need for afforestation, reforestation, and 
     timber stand improvement.
       ``(k) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $48,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 807. FOREST LEGACY PROGRAM.

       Section 7(l) of the Cooperative Forestry Management Act of 
     1978 (16 U.S.C. 2103c(l)) is amended by adding at the end the 
     following:
       ``(3) State authorization.--Notwithstanding any other 
     provision of this Act, a State may authorize any local 
     government, or any qualified organization that is defined in 
     section 170(h)(3) of the Internal Revenue Code of 1986 and 
     organized for at least 1 of the purposes described in clause 
     (i), (ii), or (iii) of section 170(h)(4)(A) of that Code, to 
     acquire in land in the State, in accordance with this 
     section, 1 or more interests in conservation easements to 
     carry out the Forest Legacy Program in the State.''.

     SEC. 808. FOREST FIRE RESEARCH CENTERS.

       (a) Findings.--Congress finds that--
       (1) there is an increasing threat of fire to millions of 
     acres of forest land and rangeland throughout the United 
     States;
       (2) this threat is especially great in the interior States 
     of the western United States, where the Forest Service 
     estimates that 39,000,000 acres of National Forest System 
     land are at high risk of catastrophic wildfire;
       (3)(A) the degraded condition of forest land and rangeland 
     is often the consequence of land management practices that 
     emphasize the control and prevention of fires; and
       (B) the land management practices disrupted the occurrence 
     of frequent low-intensity fires that periodically remove 
     flammable undergrowth;
       (4) as a result of the land management practices--
       (A) some forest land and rangeland in the United States no 
     longer function naturally as ecosystems; and
       (B) drought cycles and the invasion of insects and disease 
     have resulted in vast areas of dead or dying trees, 
     overstocked stands, and the invasion of undesirable species;
       (5)(A) population movement into wildland-urban interface 
     areas exacerbate the fire danger;
       (B) the increasing number of larger, more intense fires 
     pose grave hazards to human health, safety, property, and 
     infrastructure in the areas; and
       (C) smoke from wildfires, which contain fine particulate 
     matter and other hazardous pollutants, pose substantial 
     health risks to people living in the areas;
       (6)(A) the budgets and resources of Federal, State, and 
     local entities supporting firefighting efforts have been 
     stretched to their limits;
       (B) according to the Comptroller General, the average cost 
     of attempting to put out fires in the interior West grew by 
     150 percent, from $134,000,000 in fiscal year 1986 to 
     $335,000,000 in fiscal year 1994; and
       (C) the costs of preparedness, including the costs of 
     maintaining a readiness force to fight fires, rose about 70 
     percent, from $189,000,000 in fiscal year 1992 to 
     $326,000,000 in fiscal year 1997;
       (7) diminishing Federal resources (including the 
     availability of personnel) have limited the ability of 
     Federal fire researchers--
       (A) to respond to management needs; and
       (B) to use technological advancements for analyzing fire 
     management costs;
       (8) the Federal fire research program is funded at 
     approximately \1/3\ of the amount that is required to address 
     emerging fire problems, resulting in the lack of a cohesive 
     strategy to address the threat of catastrophic wildfires; and
       (9) there is a critical need for cost-effective investments 
     in improved fire management technologies.
       (b) Forest Fire Research Centers.--The Forest and Rangeland 
     Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et 
     seq.) is amended by adding at the end the following:

[[Page S1101]]

     ``SEC. 11. FOREST FIRE RESEARCH CENTERS.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary of Agriculture, acting through 
     the Chief of the Forest Service (referred to in this section 
     as the `Secretary') shall establish at least 2 forest fire 
     research centers at institutions of higher education (which 
     may include research centers in existence on the date of 
     enactment of this section) that--
       ``(1) have expertise in natural resource development; and
       ``(2) are located in close proximity to other Federal 
     natural resource, forest management, and land management 
     agencies.
       ``(b) Locations.--Of the forest fire research centers 
     established under subsection (a)--
       ``(1) at least 1 center shall be located in California, 
     Idaho, Montana, Oregon, or Washington; and
       ``(2) at least 1 center shall be located in Arizona, 
     Colorado, Nevada, New Mexico, or Wyoming.
       ``(c) Duties.--At each of the forest fire research centers 
     established under subsection (a), the Secretary shall provide 
     for--
       ``(1) the conduct of integrative, interdisciplinary 
     research into the ecological, socioeconomic, and 
     environmental impact of fire control and the use of 
     management of ecosystems and landscapes to facilitate fire 
     control; and
       ``(2) the development of mechanisms to rapidly transfer new 
     fire control and management technologies to fire and land 
     managers.
       ``(d) Advisory Committee.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall establish a committee 
     composed of fire and land managers and fire researchers to 
     determine the areas of emphasis and establish priorities for 
     research projects conducted at forest fire research centers 
     established under subsection (a).
       ``(2) Administration.--The Federal Advisory Committee Act 
     (5 U.S.C. App.) and section 102 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7612) 
     shall not apply to the committee established under paragraph 
     (1).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PILOT PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the damage caused by wildfire disasters has been 
     equivalent in magnitude to the damage resulting from the 
     Northridge earthquake, Hurricane Andrew, and the recent 
     flooding of the Mississippi River and the Red River;
       (2) more than 20,000 communities in the United States are 
     at risk from wildfire and approximately 11,000 of those 
     communities are located near Federal land;
       (3) the accumulation of heavy forest fuel loads continues 
     to increase as a result of disease, insect infestations, and 
     drought, further increasing the risk of fire each year;
       (4) modification of forest fuel load conditions through the 
     removal of hazardous fuels would--
       (A) minimize catastrophic damage from wildfires;
       (B) reduce the need for emergency funding to respond to 
     wildfires; and
       (C) protect lives, communities, watersheds, and wildlife 
     habitat;
       (5) the hazardous fuels removed from forest land represent 
     an abundant renewable resource, as well as a significant 
     supply of biomass for biomass-to-energy facilities;
       (6) the United States should invest in technologies that 
     promote economic and entrepreneurial opportunities in 
     processing forest products removed through hazardous fuel 
     reduction activities; and
       (7) the United States should--
       (A) develop and expand markets for traditionally underused 
     wood and other biomass as an outlet for value-added excessive 
     forest fuels; and
       (B) commit resources to support planning, assessments, and 
     project reviews to ensure that hazardous fuels management is 
     accomplished expeditiously and in an environmentally sound 
     manner.
       (b) Definitions.--In this section:
       (1) Biomass-to-energy facility.--The term ``biomass-to-
     energy facility'' means a facility that uses forest biomass 
     or other biomass as a raw material to produce electric 
     energy, useful heat, or a transportation fuel.
       (2) Eligible community.--The term ``eligible community'' 
     means--
       (A) any town, township, municipality, or other similar unit 
     of local government (as determined by the Secretary), or any 
     area represented by a nonprofit corporation or institution 
     organized under Federal or State law to promote broad-based 
     economic development, that--
       (i) has a population of not more than 10,000 individuals;
       (ii) is located within a county in which at least 15 
     percent of the total primary and secondary labor and 
     proprietor income is derived from forestry, wood products, 
     and forest-related industries, such as recreation, forage 
     production, and tourism; and
       (iii) is located near forest land, the condition of which 
     land the Secretary determines poses a substantial present or 
     potential hazard to--

       (I) the safety of a forest ecosystem;
       (II) the safety of wildlife; or
       (III) in the case of a wildfire, the safety of 
     firefighters, other individuals, and communities; and

       (B) any county that is not contained within a metropolitan 
     statistical area that meets the conditions described in 
     clauses (ii) and (iii) of subparagraph (A).
       (3) Forest biomass.--The term ``forest biomass'' means fuel 
     and biomass accumulation from precommercial thinnings, slash, 
     and brush on forest land.
       (4) Hazardous fuel.--The term ``hazardous fuel'' means any 
     excessive accumulation of forest biomass or other biomass on 
     public or private forest land in the wildland-urban interface 
     (as defined by the Secretary) that--
       (A) is located near an eligible community;
       (B) is designated as condition class 2 or 3 under the 
     report of the Forest Service entitled ``Protecting People and 
     Sustainable Resources in Fire-Adapted Ecosystems'', dated 
     October 13, 2000) (including any related maps); and
       (C) the Secretary determines poses a substantial present or 
     potential hazard to--
       (i) the safety of a forest ecosystem;
       (ii) the safety of wildlife; or
       (iii) in the case of wildfire, the safety of firefighters, 
     other individuals, and communities.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (6) National fire plan.--The term ``National Fire Plan'' 
     means the plan prepared by the Secretary of Agriculture and 
     the Secretary of the Interior entitled ``Managing the Impact 
     of Wildfires on Communities and the Environment'' and dated 
     September 8, 2000.
       (7) Person.--The term ``person'' includes--
       (A) a community;
       (B) an Indian tribe;
       (C) a small business, microbusiness, or other business that 
     is incorporated in the United States; and
       (D) a nonprofit organization.
       (8) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Agriculture (or a designee), with 
     respect to National Forest System land and private land in 
     the United States; and
       (B) the Secretary of the Interior (or a designee) with 
     respect to Federal land under the jurisdiction of the 
     Secretary of the Interior or an Indian tribe.
       (c) Wildfire Prevention and Hazardous Fuel Purchase Pilot 
     Program.--
       (1) Grants.--
       (A) In general.--Subject to the availability of 
     appropriations, the Secretary may make grants to--
       (i) persons that operate existing or new biomass-to-energy 
     facilities to offset the costs incurred by those persons in 
     purchasing hazardous fuels derived from public and private 
     forest land adjacent to eligible communities; and
       (ii) persons in rural communities that are seeking ways to 
     improve the use of, or add value to, hazardous fuels.
       (B) Selection criteria.--The Secretary shall select 
     recipients for grants under subparagraph (A)(i) based on--
       (i) planned purchases by the recipients of hazardous fuels, 
     as demonstrated by the recipient through the submission to 
     the Secretary of such assurances as the Secretary may 
     require;
       (ii) the level of anticipated benefits of those purchases 
     in reducing the risk of wildfires;
       (iii) the extent to which the biomass-to-energy facility 
     avoids adverse environmental impacts, including cumulative 
     impacts, over the expected life of the biomass-to-energy 
     facility; and
       (iv) the demonstrable level of anticipated benefits for 
     eligible communities, including the potential to develop 
     thermal or electric energy resources or affordable energy for 
     communities.
       (2) Grant amounts.--
       (A) In general.--A grant under subparagraph (A)(i) shall--
       (i) be based on--

       (I) the distance required to transport hazardous fuels to a 
     biomass-to-energy facility; and
       (II) the cost of removal of hazardous fuels; and

       (ii) be in an amount that is at least equal to the product 
     obtained by multiplying--

       (I) the number of tons of hazardous fuels delivered to a 
     grant recipient; by
       (II) an amount that is at least $5 but not more than $10 
     per ton of hazardous fuels, as determined by the Secretary 
     taking into consideration the factors described in clause 
     (i).

       (B) Limitation on individual grants.--
       (i) In general.--Except as provided in clause (ii), a grant 
     under subparagraph (A) shall not exceed $1,500,000 for any 
     biomass-to-energy facility for any fiscal year.
       (ii) Small biomass-to-energy facilities.--A biomass-to-
     energy facility that has an annual production of 5 megawatts 
     or less shall not be subject to the limitation under clause 
     (i).
       (3) Monitoring of grant recipient activities.--
       (A) In general.--As a condition of receipt of a grant under 
     this subsection, a grant recipient shall keep such records as 
     the Secretary may require, including records that--
       (i) completely and accurately disclose the use of grant 
     funds; and
       (ii) describe all transactions involved in the purchase of 
     hazardous fuels derived from forest land.
       (B) Access.--On notice by the Secretary, the operator of a 
     biomass-to-energy facility that purchases or uses hazardous 
     fuels with funds from a grant under this subsection shall 
     provide the Secretary with--
       (i) reasonable access to the biomass-to-energy facility; 
     and
       (ii) an opportunity to examine the inventory and records of 
     the biomass-to-energy facility.
       (4) Monitoring of effect of treatments.--
       (A) In general.--To determine and document the 
     environmental impact of hazardous fuel removal, the Secretary 
     shall monitor--
       (i) environmental impacts of activities carried out under 
     this subsection; and
       (ii) Federal land from which hazardous fuels are removed 
     and sold to a biomass-to-energy facility under this 
     subsection.
       (B) Employment.--
       (i) In general.--The Comptroller General of the United 
     States shall monitor--

       (I) the number of jobs created in or near eligible 
     communities as a result of the implementation of this 
     subsection;

[[Page S1102]]

       (II) the opportunities created for small businesses and 
     microbusinesses as a result of the implementation of this 
     subsection;
       (III) the types and amounts of energy supplies created as a 
     result of the implementation of this subsection; and
       (IV) energy prices for eligible communities.

       (ii) Report.--Beginning in fiscal year 2003, the 
     Comptroller General of the United States shall submit to the 
     Committee on Energy and Natural Resources and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate and the 
     Committee on Resources and the Committee on Agriculture of 
     the House of Representatives an annual report that describes 
     the information obtained through monitoring under clause (i).
       (5) Review and report.--
       (A) In general.--Not later than September 30, 2004, the 
     Comptroller General shall submit to each of the committees 
     described in paragraph (4)(B)(ii) a report that describes the 
     results and effectiveness of the pilot program.
       (B) Reports by secretary.--The Secretary shall submit to 
     each of the committees described in paragraph (4)(B)(ii) an 
     annual report describing the results of the pilot program 
     that includes--
       (i) an identification of the size of each biomass-to-energy 
     facility that receives a grant under this section; and
       (ii) the haul radius associated with each grant.
       (C) Technical feasibility report.--Not later than December 
     1, 2003, the Secretary of Agriculture, in cooperation with 
     the Forest Products Lab and the Economic Action Program of 
     the Forest Service, shall submit to each of the committees 
     described in paragraph (4)(B)(ii) a report that describes--
       (i) the technical feasibility of the use by small-scale 
     biomass energy units of small-diameter trees and forest 
     residues as a source of fuel;
       (ii) the environmental impacts relating to the use of 
     small-diameter trees and forest residues as described in 
     clause (i); and
       (iii) any social or economic benefits of small-scale 
     biomass energy units for rural communities.
       (6) Grants to other persons.--
       (A) In general.--In addition to biomass-to-energy 
     facilities, the Secretary may make grants under this 
     subsection to persons in rural communities that are seeking 
     ways to improve the use of, or add value to, hazardous fuels.
       (B) Selection.--The Secretary shall select recipients of 
     grants under subparagraph (A) based on--
       (i) the extent to which the grant recipient avoids 
     environmental impacts; and
       (ii) the demonstrable level of anticipated benefits to 
     rural communities, including opportunities for small 
     businesses and microbusinesses and the potential for new job 
     creation, that may result from the provision of the grant.
       (C) Monitoring.--With respect to a grant made under this 
     paragraph--
       (i) the monitoring provisions described in paragraph (3) 
     and applicable to biomass-to-energy facilities shall apply; 
     and
       (ii) the Secretary shall monitor the environmental impacts 
     of projects funded by grants provided under this paragraph.
       (7) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2002 through 2006.
       (d) Long-Term Forest Stewardship Contracts for Hazardous 
     Fuels Removal.--
       (1) Annual assessment of treatment acreage.--
       (A) In general.--Subject to the availability of 
     appropriations, not later than March 1 of each of fiscal 
     years 2002 through 2006, the Secretary shall submit to 
     Congress an assessment of the number of acres of National 
     Forest System land recommended to be treated during the 
     subsequent fiscal year using stewardship end result contracts 
     authorized by paragraph (3).
       (B) Components.--The assessment shall--
       (i) be based on the treatment schedules contained in the 
     report entitled ``Protecting People and Sustaining Resources 
     in Fire-Adapted Ecosystems'', dated October 13, 2000, and 
     incorporated into the National Fire Plan;
       (ii) identify the acreage by condition class, type of 
     treatment, and treatment year to achieve the restoration 
     goals outlined in the report within 10-, 15-, and 20-year 
     time periods;
       (iii) give priority to condition class 3 areas (as 
     described in subsection (b)(4)(B)), including modifications 
     in the restoration goals based on the effects of--

       (I) fire;
       (II) hazardous fuel treatments under the National Fire 
     Plan; or
       (III) updates in data;

       (iv) provide information relating to the type of material 
     and estimated quantities and range of sizes of material that 
     shall be included in the treatments;
       (v) describe the land allocation categories in which the 
     contract authorities shall be used; and
       (vi) give priority to areas described in subsection 
     (b)(4)(A).
       (2) Funding recommendation.--The Secretary shall include in 
     the annual assessment under paragraph (1) a request for funds 
     sufficient to implement the recommendations contained in the 
     assessment using stewardship end result contracts described 
     in paragraph (3) in any case in which the Secretary 
     determines that the objectives of the National Fire Plan 
     would best be accomplished through forest stewardship end 
     result contracting.
       (3) Stewardship end result contracting.--
       (A) In general.--Subject to the availability of 
     appropriations, the Secretary may enter into not more than 28 
     stewardship end result contracts to implement the National 
     Fire Plan on National Forest System land based on the 
     treatment schedules provided in the annual assessments 
     conducted under paragraph (1)(B)(i).
       (B) Period of contracts.--The contracting goals and 
     authorities described in subsections (b) through (g) of 
     section 347 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1999 (commonly known as the 
     ``Stewardship End Result Contracting Demonstration Project'') 
     (16 U.S.C. 2104 note; Public Law 105-277), shall apply to 
     contracts entered into under this paragraph, except that 14 
     of the 28 contracts entered into under subparagraph (A) shall 
     be subject to the conditions that--
       (i) funds from the contract, and any offset value of forest 
     products that exceeds the value of the resource improvement 
     treatments carried out under the contract, shall be deposited 
     in the Treasury of the United States;
       (ii) section 347(c)(3)(A) of the Department of the Interior 
     and Related Agencies Appropriations Act, 1999 (commonly known 
     as the ``Stewardship End Result Contracting Demonstration 
     Project'') (16 U.S.C. 2104 note; Public Law 105-277) shall 
     not apply to those contracts; and
       (iii) the implementation shall be accomplished using 
     separate contracts for the harvesting or collection, and 
     sale, of merchantable material.
       (C) Status report.--Beginning with the assessment required 
     under paragraph (1) for fiscal year 2003, the Secretary shall 
     include in the annual assessment under paragraph (1) a status 
     report of the stewardship end result contracts entered into 
     under this paragraph.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection such sums as 
     are necessary for each of fiscal years 2002 through 2006.
       (e) Excluded Areas.--In carrying out this section, the 
     Secretary shall--
       (1) because of sensitivity of natural, cultural, or 
     historical resources, designate areas to be excluded from any 
     program under this section; and
       (2) carry out this section only in the wildland-urban 
     interface, as defined by the Secretary.
       (f) Termination of Authority.--The authority provided under 
     this section shall terminate on September 30, 2006.

     SEC. 810. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 9 (16 U.S.C. 2105) the following:

     ``SEC. 9A. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Agreement.--The term `Agreement' means the Chesapeake 
     2000 Agreement, an interstate agreement the purpose of which 
     is to correct the nutrient-related problems in the Chesapeake 
     Bay by 2010.
       ``(2) Bay-area state.--
       ``(A) In general.--The term `Bay-area State' means a State 
     any part of which is located in the watershed of the 
     Chesapeake Bay.
       ``(B) Inclusion.--The term `Bay-area State' includes the 
     District of Columbia.
       ``(3) Chesapeake bay executive council.--The term `Council' 
     means the Chesapeake Bay Executive Council.
       ``(4) Director.--The term `Director' means the Director of 
     Chesapeake Bay watershed forestry efforts designated under 
     subsection (b)(2)(A).
       ``(5) Eligible entity.--The term `eligible entity' means--
       ``(A) the government of a Bay-area State (or a political 
     subdivision); and
       ``(B) an organization such as an educational institution or 
     a community or conservation organization.
       ``(6) Eligible project.--The term `eligible project' means 
     a project the purpose of which is to--
       ``(A) improve wildlife habitat and water quality through 
     the establishment, protection, and stewardship of riparian 
     and wetland forests;
       ``(B) improve the capacity of a State or nonprofit 
     organization to implement forest conservation, restoration, 
     and stewardship actions;
       ``(C) develop and implement a watershed management plan 
     that addresses forest conservation and restoration actions;
       ``(D) provide outreach and assistance to private landowners 
     and communities to restore or protect watersheds through the 
     enhancement of forests;
       ``(E) develop and implement communication, education, or 
     technology transfer programs that broaden public 
     understanding of the value of trees and forests and 
     management of trees and forests in sustaining and restoring 
     watershed health; and
       ``(F) conduct applied research, inventory, assessment, or 
     monitoring activities.
       ``(7) Program.--The term `program' means the Chesapeake Bay 
     watershed forestry program established under subsection 
     (b)(1).
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Chief of the Forest 
     Service.
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish the 
     Chesapeake Bay watershed forestry program to provide 
     technical and financial assistance to the Council, Bay-area 
     States, local governments, and nonprofit organizations to 
     carry out eligible projects.
       ``(2) Director.--
       ``(A) In general.--The Secretary shall designate an 
     employee of the Forest Service to serve as the Director for 
     Chesapeake Bay watershed forestry efforts.
       ``(B) Duties.--The Director shall work in cooperation with 
     the Secretary to carry out the purposes of the program 
     described in paragraph (1).
       ``(c) Chesapeake Watershed Forestry Grants.--
       ``(1) In general.--In carrying out the program, the 
     Secretary, in coordination with the Director, may provide 
     grants to assist eligible entities in carrying out eligible 
     projects.

[[Page S1103]]

       ``(2) Cost sharing.--The amount of a grant awarded under 
     this subsection shall not exceed 75 percent of the total cost 
     of the eligible project.
       ``(3) Additional requirements.--The Secretary, in 
     consultation with the Director, may prescribe any 
     requirements and procedures necessary to carry out this 
     subsection.
       ``(d) Chesapeake Watershed Forest Assessment and 
     Conservation Study.--
       ``(1) In general.--The Director, in cooperation with the 
     Council, shall conduct a Chesapeake Bay watershed forestry 
     research and assessment study that--
       ``(A) assesses the extent and location of forest loss and 
     fragmentation;
       ``(B) identifies critical forest land that should be 
     protected to achieve the purposes of the Agreement;
       ``(C) prioritizes afforestation needs;
       ``(D) recommends--
       ``(i) management strategies based on actions carried out 
     and information obtained under subparagraphs (A) through (C) 
     to expand conservation and stewardship of the forest 
     ecosystem in the Chesapeake Bay watershed; and
       ``(ii) ways in which the Federal Government can work with 
     State, county, local, and private entities to conserve 
     critical forests, including recommendations on the 
     feasibility of establishing new units of the National Forest 
     System; and
       ``(E) identifies further inventory, assessment, and 
     research needed to achieve the purposes of the Agreement.
       ``(2) Report.--Not later than 2 years after the date of 
     enactment of this section, the Director shall submit to 
     Congress a comprehensive report on the results of the study 
     under paragraph (1).
       ``(e) Chesapeake Bay Urban Watershed Forestry Research 
     Cooperative Program.--
       ``(1) In general.--The Secretary, in cooperation with the 
     Director, may establish a comprehensive Chesapeake Bay urban 
     watershed forestry research cooperative program to provide 
     technical and financial assistance to eligible entities.
       ``(2) Purposes.--The purposes of the cooperative program 
     shall be--
       ``(A) to meet the need of the urban population of the 
     Chesapeake Bay watershed in managing forest land in urban and 
     urbanizing areas through a combination of--
       ``(i) applied research;
       ``(ii) demonstration projects;
       ``(iii) implementation guidelines; and
       ``(iv) training and education;
       ``(B) to coalesce information from local managers, Federal, 
     State, and private researchers, and state-of-the-art 
     technology to answer critical urban forestry questions 
     relating to air and water quality and watershed health; and
       ``(C) to provide a link between research and urban and 
     community forestry policy, planning, and management.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $3,000,000 for fiscal year 2002; and
       ``(2) $3,500,000 for each of fiscal years 2003 through 
     2006.''.

     SEC. 811. ENHANCED COMMUNITY FIRE PROTECTION.

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

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

       ``(a) Cooperative Management Relating to Wildfire 
     Threats.--Notwithstanding section 7 of the Federal Fire 
     Prevention and Control Act of 1974 (15 U.S.C. 2206), the 
     Secretary may cooperate with State foresters and equivalent 
     State officials to--
       ``(1) assist in the prevention, control, suppression, and 
     prescribed use of fires (including through the provision of 
     financial, technical, and related assistance);
       ``(2) protect communities from wildfire threats;
       ``(3) enhance the growth and maintenance of trees and 
     forests in a manner that promotes overall forest health; and
       ``(4) ensure the continued production of all forest 
     resources, including timber, outdoor recreation 
     opportunities, wildlife habitat, and clean water, through 
     conservation of forest cover on watersheds, shelterbelts, and 
     windbreaks.
       ``(b) Community and Private Land Fire Assistance Program.--
       ``(1) In general.--The Secretary shall establish a program 
     to be known as the `community and private land fire 
     assistance program' (referred to in this section as the 
     `Program')--
       ``(A) to focus the Federal role in promoting optimal 
     firefighting efficiency at the Federal, State, and local 
     levels;
       ``(B) to provide increased assistance to Federal projects 
     that establish landscape level protection from wildfires;
       ``(C) to expand outreach and education programs concerning 
     fire prevention to homeowners and communities; and
       ``(D) to establish defensible space against wildfires 
     around the homes and property of private landowners.
       ``(2) Administration and implementation.--The Program shall 
     be administered by the Secretary and, with respect to non-
     Federal land described in paragraph (3), carried out through 
     the State forester or equivalent State official.
       ``(3) Components.--The Secretary may carry out under the 
     Program, on National Forest System land and non-Federal land 
     determined by the Secretary in consultation with State 
     foresters and Committees--
       ``(A) fuel hazard mitigation and prevention;
       ``(B) invasive species management;
       ``(C) multiresource wildfire and community protection 
     planning;
       ``(D) community and landowner education enterprises, 
     including the program known as `FIREWISE';
       ``(E) market development and expansion;
       ``(F) improved use of wood products; and
       ``(G) restoration projects.
       ``(4) Priority.--In entering into contracts to carry out 
     projects under the Program, the Secretary shall give priority 
     to contracts with local persons or entities.
       ``(c) Authority.--The authority provided under this section 
     shall be in addition to any authority provided under section 
     10.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $35,000,000 for each of fiscal years 2002 
     through 2006.''.

     SEC. 812. WATERSHED FORESTRY ASSISTANCE PROGRAM.

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

[[Page S1104]]

       (4) establish new partnerships and collaborative watershed 
     approaches to forest management, stewardship, and protection; 
     and
       (5) provide technical and financial assistance to States to 
     deliver a coordinated program that through the provision of 
     technical, financial, and educational assistance to qualified 
     individuals and entities--
       (A) enhances State forestry best management practices 
     programs; and
       (B) protects and improves water quality on forest land.
       (c) Program.--The Cooperative Forestry Assistance Act of 
     1978 is amended by inserting after section 5A (as added by 
     section 805) the following:

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

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

     SEC. 813. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE 
                   INITIATIVE.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 7 (16 U.S.C. 2103c) the following:

     ``SEC. 7A. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE 
                   INITIATIVE.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means a 
     State (including a political subdivision) or nonprofit 
     organization that the Secretary determines under subsection 
     (c)(1)(A)(ii) is eligible to receive a grant under subsection 
     (c)(2).
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Private forest land.--The term `private forest land' 
     means land that is--
       ``(A)(i) covered by trees; or
       ``(ii) suitable for growing trees, as determined by the 
     Secretary;
       ``(B) suburban, as determined by the Secretary; and
       ``(C) owned by--
       ``(i) a private entity; or
       ``(ii) an Indian tribe.
       ``(4) Program.--The term `program' means the Suburban and 
     Community Forestry and Open Space Initiative established by 
     subsection (b).
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Chief of the Forest 
     Service.
       ``(b) Establishment.--
       ``(1) In general.--There is established within the Forest 
     Service a program to be known as the `Suburban and Community 
     Forestry and Open Space Initiative'.
       ``(2) Purpose.--The purpose of the program is to provide 
     assistance to eligible entities to carry out projects and 
     activities to--
       ``(A) conserve private forest land and maintain working 
     forests in suburban environments; and
       ``(B) provide communities a means by which to address 
     significant suburban sprawl.
       ``(c) Grant Program.--
       ``(1) Identification of eligible private forest land.--
       ``(A) In general.--The Secretary, in consultation with 
     State foresters or equivalent State officials and State or 
     county planning offices, shall establish criteria for--
       ``(i) the identification, subject to subparagraph (B), of 
     private forest land in each State that may be conserved under 
     this section; and
       ``(ii) the identification of eligible entities.
       ``(B) Conditions for eligible private forest land.--Private 
     forest land identified for conservation under subparagraph 
     (A)(i) shall be land that is--
       ``(i) located in an area that is affected, or threatened to 
     be affected, by significant suburban sprawl, as determined 
     by--

[[Page S1105]]

       ``(I) the appropriate State forester or equivalent State 
     official; and
       ``(II) the planning office of the State or county in which 
     the private forest land is located; and

       ``(ii) threatened by present or future conversion to 
     nonforest use.
       ``(2) Grants.--
       ``(A) Projects and activities.--
       ``(i) In general.--In carrying out this section, the 
     Secretary shall award grants to eligible entities to carry 
     out a project or activity described in clause (ii).
       ``(ii) Types.--A project or activity referred to in clause 
     (i) is a project or activity that--

       ``(I) is carried out to conserve private forest land and 
     contain significant suburban sprawl; and
       ``(II) provides for guaranteed public access to land on 
     which the project or activity is carried out, unless the 
     appropriate State forester or equivalent State official and 
     the State or county planning office request, and provide 
     justification for the request, that the requirement be 
     waived.

       ``(B) Application; stewardship plan.--An eligible entity 
     that seeks to receive a grant under this section shall submit 
     for approval--
       ``(i) to the Secretary, in such form as the Secretary shall 
     prescribe, an application for the grant (including a 
     description of any private forest land to be conserved using 
     funds from the grant); and
       ``(ii) to the State forester or equivalent State official, 
     a stewardship plan that describes the manner in which any 
     private forest land to be conserved using funds from the 
     grant will be managed in accordance with this section.
       ``(C) Approval or disapproval.--
       ``(i) In general.--Subject to clause (ii), as soon as 
     practicable after the date on which the Secretary receives an 
     application under subparagraph (B)(i) or a resubmission under 
     subclause (II)(bb), the Secretary shall--

       ``(I)(aa) approve the application; and
       ``(bb) award a grant to the applicant; or
       ``(II)(aa) disapprove the application; and
       ``(bb) provide the applicant a statement that describes the 
     reasons why the application was disapproved (including a 
     deadline by which the applicant may resubmit the 
     application).

       ``(ii) Priority.--In awarding grants under this section, 
     the Secretary shall give priority to applicants that propose 
     to fund projects and activities that promote, in addition to 
     the primary purposes of conserving private forest land and 
     containing significant suburban sprawl--

       ``(I) the sustainable management of private forest land;
       ``(II) community and school education programs and 
     curricula relating to sustainable forestry; and
       ``(III) community involvement in determining the objectives 
     for projects or activities that are funded under this 
     section.

       ``(3) Cost sharing.--
       ``(A) In general.--The amount of a grant awarded under this 
     section to carry out a project or activity shall not exceed 
     50 percent of the total cost of the project or activity.
       ``(B) Assurances.--As a condition of receipt of a grant 
     under this section, an eligible entity shall provide to the 
     Secretary such assurances as the Secretary determines are 
     sufficient to demonstrate that the share of the cost of each 
     project or activity that is not funded by the grant awarded 
     under this section has been secured.
       ``(C) Form.--The share of the cost of carrying out any 
     project or activity described in subparagraph (A) that is not 
     funded by a grant awarded under this section may be provided 
     in cash or in kind.
       ``(d) Use of Grant Funds for Purchases of Land or 
     Easements.--
       ``(1) Purchases.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     funds made available, and grants awarded, under this section 
     may be used to purchase private forest land or interests in 
     private forest land (including conservation easements) only 
     from willing sellers at fair market value.
       ``(B) Sales at less than fair market value.--A sale of 
     private forest land or an interest in private forest land at 
     less than fair market value shall be permitted only on 
     certification by the landowner that the sale is being entered 
     into willingly and without coercion.
       ``(2) Title.--Title to private forest land or an interest 
     in private forest land purchased under paragraph (1) may be 
     held, as determined appropriate by the Secretary, by--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) a nonprofit organization.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $50,000,000 for fiscal year 2003; and
       ``(2) such sums as are necessary for each fiscal year 
     thereafter.''.

     SEC. 814. GENERAL PROVISIONS.

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

     SEC. 815. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

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

     SEC. 816. USDA NATIONAL AGROFORESTRY CENTER.

       (a) In General.--Section 1243 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note; 
     Public Law 101-624) is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.'';

     and
       (2) in subsection (a)--
       (A) by striking ``Semiarid'' and inserting ``USDA 
     National''; and
       (B) by striking ``Semiarid'' and inserting ``USDA 
     National''.
       (b) Program.--Section 1243(b) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note; 
     Public Law 101-624) is amended--
       (1) by inserting ``the Institute of Tropical Forestry and 
     the Institute of Pacific Islands Forestry of the Forest 
     Service,'' after ``entities,'';
       (2) in paragraph (1), by striking ``on semiarid lands'';
       (3) in paragraph (3), by striking ``from semiarid land'';
       (4) by striking paragraph (4) and inserting the following:
       ``(4) collect information on the design and installation of 
     forested riparian and upland buffers to--
       ``(A) protect water quality; and
       ``(B) manage water flow;'';
       (5) in paragraphs (6) and (7), by striking ``on semiarid 
     lands'' each place it appears;
       (6) by striking paragraph (8) and inserting the following:
       ``(8) provide international leadership in the worldwide 
     development and exchange of agroforestry practices;'';
       (7) in paragraph (9), by striking ``on semiarid lands'';
       (8) in paragraph (10), by striking ``and'' at the end;
       (9) in paragraph (11), by striking the period at the end 
     and inserting ``; and''; and
       (10) by adding at the end the following:
       ``(12) quantify the carbon storage potential of 
     agroforestry practices such as--
       ``(A) windbreaks;
       ``(B) forested riparian buffers;
       ``(C) silvopasture timber and grazing systems; and
       ``(D) alley cropping.''.

     SEC. 817. OFFICE OF TRIBAL RELATIONS.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 19 (16 U.S.C. 2113) the following:

     ``SEC. 19A. OFFICE OF TRIBAL RELATIONS.

       ``(a) Definitions.--In this section:
       ``(1) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(2) Office.--The term `Office' means the Office of Tribal 
     Relations established under subsection (b)(1).
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Chief of the Forest 
     Service.
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish within the 
     Forest Service the Office of Tribal Relations.
       ``(2) Director.--The Office shall be headed by a Director, 
     who shall--
       ``(A) be appointed by the Secretary, in consultation with 
     interested Indian tribes; and
       ``(B) report directly to the Secretary.
       ``(3) Administrative support.--The Secretary shall ensure, 
     to the maximum extent practicable, that adequate staffing and 
     funds are made available to enable the Director to carry out 
     the duties described in subsection (c).
       ``(c) Duties of the Director.--
       ``(1) In general.--The Director shall--
       ``(A) provide advice to the Secretary on all issues, 
     policies, actions, and programs of the Forest Service that 
     affect Indian tribes, including--
       ``(i) consultation with tribal governments;
       ``(ii) programmatic review for equitable tribal 
     participation;
       ``(iii) monitoring and evaluation of relations between the 
     Forest Service and Indian tribes;
       ``(iv) the coordination and integration of programs of the 
     Forest Service that affect, or are of interest to, Indian 
     tribes;
       ``(v) training of Forest Service personnel for competency 
     in tribal relations; and
       ``(vi) the development of legislation affecting Indian 
     tribes;

[[Page S1106]]

       ``(B) coordinate organizational responsibilities within the 
     administrative units of the Forest Service to ensure that 
     matters affecting the rights and interests of Indian tribes 
     are handled in a manner that is--
       ``(i) comprehensive;
       ``(ii) responsive to tribal needs; and
       ``(iii) consistent with policy guidelines of the Forest 
     Service;
       ``(C)(i) develop generally applicable policies and 
     procedures of the Forest Service pertaining to Indian tribes; 
     and
       ``(ii) monitor the application of those policies and 
     procedures throughout the administrative regions of the 
     Forest Service;
       ``(D) provide such information or guidance to personnel of 
     the Forest Service that are responsible for tribal relations 
     as is required, as determined by the Secretary;
       ``(E) exercise such direct administrative authority 
     pertaining to tribal relations programs as may be delegated 
     by the Secretary;
       ``(F) for the purpose of coordinating programs and 
     activities of the Forest Service with programs and actions of 
     other agencies or departments that affect Indian tribes, 
     consult with--
       ``(i) other agencies of the Department of Agriculture, 
     including the Natural Resources Conservation Service; and
       ``(ii) other Federal agencies, including--

       ``(I) the Department of the Interior; and
       ``(II) the Environmental Protection Agency;

       ``(G) submit to the Secretary an annual report on the 
     status of relations between the Forest Service and Indian 
     tribes that includes, at a minimum--
       ``(i) an examination of the participation of Indian tribes 
     in programs administered by the Secretary;
       ``(ii) a description of the status of initiatives being 
     carried out to improve working relationships with Indian 
     tribes; and
       ``(iii) recommendations for improvements or other 
     adjustments to operations of the Forest Service that would be 
     beneficial in strengthening working relationships with Indian 
     tribes; and
       ``(H) carry out such other duties as the Secretary may 
     assign.
       ``(d) Coordination.--In carrying out this section, the 
     Office and other offices within the Forest Service shall 
     consult on matters involving the rights and interests of 
     Indian tribes.''.

     SEC. 818. ASSISTANCE TO TRIBAL GOVERNMENTS.

       The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2101 et seq.) is amended by adding at the end the following:

     ``SEC. 21. ASSISTANCE TO TRIBAL GOVERNMENTS.

       ``(a) Definition of Indian Tribe.--In this section, the 
     term `Indian tribe' has the meaning given the term in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b).
       ``(b) Establishment.--The Secretary may provide financial, 
     technical, educational and related assistance to Indian 
     tribes for--
       ``(1) tribal consultation and coordination with the Forest 
     Service on issues relating to--
       ``(A) tribal rights and interests on National Forest System 
     land (including national forests and national grassland);
       ``(B) coordinated or cooperative management of resources 
     shared by the Forest Service and Indian tribes; and
       ``(C) provision of tribal traditional, cultural, or other 
     expertise or knowledge;
       ``(2) projects and activities for conservation education 
     and awareness with respect to forest land under the 
     jurisdiction of Indian tribes;
       ``(3) technical assistance for forest resources planning, 
     management, and conservation on land under the jurisdiction 
     of Indian tribes; and
       ``(4) the acquisition by Indian tribes, from willing 
     sellers, of conservation interests (including conservation 
     easements) in forest land and resources on land under the 
     jurisdiction of the Indian tribes.
       ``(c) Implementation.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations to implement subsection (b) (including 
     regulations for determining the distribution of assistance 
     under that subsection).
       ``(2) Consultation.--In developing regulations under 
     paragraph (1), the Secretary shall engage in full, open, and 
     substantive consultation with Indian tribes and 
     representatives of Indian tribes.
       ``(d) Coordination With the Secretary of the Interior.--The 
     Secretary shall coordinate with the Secretary of the Interior 
     during the establishment, implementation, and administration 
     of subsection (b) to ensure that programs under that 
     subsection--
       ``(1) do not conflict with tribal programs provided under 
     the authority of the Department of the Interior; and
       ``(2) meet the goals of the Indian tribes.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for fiscal year 2002 and each fiscal 
     year thereafter.''.

     SEC. 819. SUDDEN OAK DEATH SYNDROME.

       (a) Findings.--Congress finds that--
       (1) tan oak, coast live oak, Shreve's oak, and black oak 
     trees are among the most beloved features of the topography 
     of California and the Pacific Northwest and efforts should be 
     made to protect those trees from disease;
       (2) the die-off of those trees, as a result of the exotic 
     Phytophthora fungus, is approaching epidemic proportions;
       (3) very little is known about the new species of 
     Phytophthora, and scientists are struggling to understand the 
     causes of sudden oak death syndrome, the methods of 
     transmittal, and how sudden oak death syndrome can best be 
     treated;
       (4) the Phytophthora fungus has been found on--
       (A) Rhododendron plants in nurseries in California; and
       (B) wild huckleberry plants, potentially endangering the 
     commercial blueberry and cranberry industries;
       (5) sudden oak death syndrome threatens to create major 
     economic and environmental problems in California, the 
     Pacific Northwest, and other regions, including--
       (A) the increased threat of fire and fallen trees;
       (B) the cost of tree removal and a reduction in property 
     values; and
       (C) loss of revenue due to--
       (i) restrictions on imports of oak products and nursery 
     stock; and
       (ii) the impact on the commercial rhododendron, blueberry, 
     and cranberry industries; and
       (6) Oregon and Canada have imposed an emergency quarantine 
     on the importation of oak trees, oak products, and certain 
     nursery plants from California.
       (b) Research, Monitoring, and Treatment of Sudden Oak Death 
     Syndrome.--
       (1) In general.--The Secretary of Agriculture (referred to 
     in this section as the ``Secretary'') shall carry out a 
     sudden oak death syndrome research, monitoring, and treatment 
     program to develop methods to control, manage, or eradicate 
     sudden oak death syndrome from oak trees on public and 
     private land.
       (2) Research, monitoring, and treatment activities.--In 
     carrying out the program under paragraph (1), the Secretary 
     may--
       (A) conduct open space, roadside, and aerial surveys;
       (B) provide monitoring technique workshops;
       (C) develop baseline information on the distribution, 
     condition, and mortality rates of oaks in California and the 
     Pacific Northwest;
       (D) maintain a geographic information system database;
       (E) conduct research activities, including research on 
     forest pathology, Phytophthora ecology, forest insects 
     associated with oak decline, urban forestry, arboriculture, 
     forest ecology, fire management, silviculture, landscape 
     ecology, and epidemiology;
       (F) evaluate the susceptibility of oaks and other 
     vulnerable species throughout the United States; and
       (G) develop and apply treatments.
       (c) Management, Regulation, and Fire Prevention.--
       (1) In general.--The Secretary shall conduct sudden oak 
     death syndrome management, regulation, and fire prevention 
     activities to reduce the threat of fire and fallen trees 
     killed by sudden oak death syndrome.
       (2) Management, regulation, and fire prevention 
     activities.--In carrying out paragraph (1), the Secretary 
     may--
       (A) conduct hazard tree assessments;
       (B) provide grants to local units of government for hazard 
     tree removal, disposal and recycling, assessment and 
     management of restoration and mitigation projects, green 
     waste treatment facilities, reforestation, resistant tree 
     breeding, and exotic weed control;
       (C) increase and improve firefighting and emergency 
     response capabilities in areas where fire hazard has 
     increased due to oak die-off;
       (D) treat vegetation to prevent fire, and assessment of 
     fire risk, in areas heavily infected with sudden oak death 
     syndrome;
       (E) conduct national surveys and inspections of--
       (i) commercial rhododendron and blueberry nurseries; and
       (ii) native rhododendron and huckleberry plants;
       (F) provide for monitoring of oaks and other vulnerable 
     species throughout the United States to ensure early 
     detection; and
       (G) provide diagnostic services.
       (d) Education and Research.--
       (1) In general.--The Secretary shall conduct education and 
     outreach activities to make information available to the 
     public on sudden death oak syndrome.
       (2) Education and outreach activities.--In carrying out 
     paragraph (1), the Secretary may--
       (A) develop and distribute educational materials for 
     homeowners, arborists, urban foresters, park managers, public 
     works personnel, recreationists, nursery workers, 
     landscapers, naturists, firefighting personnel, and other 
     individuals, as the Secretary determines appropriate;
       (B) design and maintain a website to provide information on 
     sudden oak death syndrome; and
       (C) provide financial and technical support to States, 
     local governments, and nonprofit organizations providing 
     information on sudden oak death syndrome.
       (e) Sudden Oak Death Syndrome Advisory Committee.--
       (1) Establishment.--
       (A) In general.--The Secretary shall establish a Sudden Oak 
     Death Syndrome Advisory Committee (referred to in this 
     subsection as the ``Committee'') to assist the Secretary in 
     carrying out this section.
       (B) Membership.--
       (i) Composition.--The Committee shall consist of--

       (I) 1 representative of the Animal and Plant Health 
     Inspection Service, to be appointed by the Administrator of 
     the Animal and Plant Health Inspection Service;
       (II) 1 representative of the Agricultural Research Service, 
     to be appointed by the Administrator of the Agricultural 
     Research Service;
       (III) 1 representative of the Forest Service, to be 
     appointed by the Chief of the Forest Service;
       (IV) 2 individuals appointed by the Secretary from each of 
     the States affected by sudden oak death syndrome; and
       (V) any individual, to be appointed by the Secretary, in 
     consultation with the Governors of the affected States, that 
     the Secretary determines--

[[Page S1107]]

       (aa) has an interest or expertise in sudden oak death 
     syndrome; and
       (bb) would contribute to the Committee.
       (ii) Date of appointments.--The appointment of a member of 
     the Committee shall be made not later than 90 days after the 
     date of enactment of this Act.
       (C) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Committee have been appointed, 
     the Committee shall hold the initial meeting of the 
     Committee.
       (2) Duties.--
       (A) Implementation plan.--The Committee shall prepare a 
     comprehensive implementation plan to address the management, 
     control, and eradication of sudden oak death syndrome.
       (B) Reports.--
       (i) Interim report.--Not later than 1 year after the date 
     of enactment of this Act, the Committee shall submit to 
     Congress the implementation plan prepared under paragraph 
     (1).
       (ii) Final report.--Not later than 3 years after the date 
     of enactment of this Act, the Committee shall submit to 
     Congress a report that contains--

       (I) a summary of the activities of the Committee;
       (II) an accounting of funds received and expended by the 
     Committee; and
       (III) findings and recommendations of the Committee.

       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2002 through 
     2006--
       (1) to carry out subsection (b), $7,500,000, of which not 
     more than $1,500,000 shall be used for treatment;
       (2) to carry out subsection (c), $6,000,000;
       (3) to carry out subsection (d), $500,000; and
       (4) to carry out subsection (e), $250,000.

     SEC. 820. INDEPENDENT INVESTIGATION OF FIREFIGHTER 
                   FATALITIES.

       In the case of each fatality of an officer or employee of 
     the Forest Service that occurs due to wildfire entrapment or 
     burnover, the Inspector General of the Department of 
     Agriculture shall--
       (1) conduct an investigation that does not rely on, and is 
     completely independent of, any investigation of the fatality 
     that is conducted by the Forest Service; and
       (2) submit to Congress and the Secretary of Agriculture a 
     report on the fatality.

     SEC. 821. ADAPTIVE ECOSYSTEM RESTORATION OF ARIZONA AND NEW 
                   MEXICO FORESTS AND WOODLANDS.

       (a) Findings.--Congress finds that--
       (1) fire suppression, logging, and overgrazing have 
     degraded the ecological conditions of forests and woodlands 
     in Arizona and New Mexico;
       (2) some of those forests and woodlands contain unnaturally 
     high quantities of biomass that are subject to large, high 
     intensity wildfires that endanger human lives and livelihoods 
     and ecological sustainability;
       (3) degraded forests and woodlands have led to--
       (A) declining biodiversity;
       (B) decreased stream and spring flows;
       (C) impaired watershed values;
       (D) increased susceptibility to insects and diseases;
       (E) increases in mortality in the oldest trees; and
       (F) degraded habitats for wildlife and humans;
       (4) healthy forest and woodland ecosystems--
       (A) minimize the threat of unnatural wildfire;
       (B) improve wildlife habitat;
       (C) increase tree, grass, forb, and shrub productivity;
       (D) enhance watershed values; and
       (E) provide a basis for economically and environmentally 
     sustainable uses;
       (5) forest and woodland treatments intended to restore 
     degraded ecosystems should be developed using the best 
     available scientific knowledge;
       (6) treatments not supported by sound science may fail to 
     achieve long-term ecosystem health and resource restoration 
     objectives;
       (7)(A) scientific research must be integrated with ongoing 
     land management activities; and
       (B) restoration techniques must be continually reevaluated 
     and adapted to reflect new knowledge and to meet the 
     practical needs of land managers and communities developing 
     and implementing restoration treatments; and
       (8) scientific knowledge must be translated and transferred 
     to land managers, resource specialists, communities, and 
     stakeholders that collaborate in the development and 
     implementation of those treatments.
       (b) Purposes.--The purposes of this section are--
       (1) to--
       (A) improve the ecological health, resource values, and 
     sustainability of forest and woodland ecosystems in Arizona 
     and New Mexico; and
       (B) reduce the threat of unnatural wildfire, disease, and 
     insect infestations in those States;
       (2) to restore ecosystem structure and function so that 
     ecosystems will--
       (A) support biodiversity;
       (B) enhance watershed values;
       (C) increase water flow to seeps and springs; and
       (D) increase tree, grass, forb, and shrub vigor and growth 
     to provide sustainable economic activities for current and 
     future generations;
       (3) to develop the scientific knowledge to inform the 
     design of adaptive ecosystem management restoration 
     treatments that will restore long-term ecological health to 
     forests and woodlands in the States; and
       (4) to encourage collaboration among land management 
     agencies, communities, and interest groups in developing, 
     implementing, and monitoring adaptive ecosystem management 
     restoration treatments that are ecologically sound, 
     economically viable, and socially responsible.
       (c) Definitions.--In this section:
       (1) Adaptive ecosystem management.--The term ``adaptive 
     ecosystem management'' means management practiced by engaging 
     researchers, land managers, resource specialists, policy 
     analysts, decisionmakers, nonprofit organizations, and 
     communities in conducting collaborative large-scale 
     management experiments that seek to restore ecosystem health 
     while seeking unexplored opportunities to enhance natural 
     resource values.
       (2) Ecological integrity.--The term ``ecological 
     integrity'' includes a critical range of variability in 
     biodiversity, ecological processes and structures, regional 
     and historical context, and sustainable forestry practices in 
     forests and woodlands.
       (3) Ecological restoration.--The term ``ecological 
     restoration'' means the process of assisting the recovery and 
     management of ecological integrity.
       (4) Institute.--The term ``Institute'' means an institute 
     established under subsection (d)(1).
       (5) Land management agency.--The term ``land management 
     agency'' means a Federal, State, local, or tribal land 
     management agency.
       (6) Practitioner.--The term ``practitioner'' means a person 
     or entity that practices natural resource management.
       (7) Secretaries.--The term ``Secretaries'' means--
       (A) the Secretary of Agriculture, acting through the Chief 
     of the Forest Service; and
       (B) the Secretary of the Interior.
       (8) State.--The term ``State'' means--
       (A) the State of Arizona; and
       (B) the State of New Mexico.
       (d) Establishment of Institutes.--
       (1) In general.--The Secretary of Agriculture, in 
     consultation with the Secretary of the Interior, shall 
     establish--
       (A) an Ecological Restoration Institute in Flagstaff, 
     Arizona; and
       (B) an Institute at a college or university in the State of 
     New Mexico selected by the Secretary of Agriculture, in 
     consultation with the Secretary of the Interior.
       (2) Scope of research; transfer of information.--Each 
     Institute shall--
       (A) plan, conduct, or otherwise arrange for applied 
     ecosystem management research that--
       (i) assists in answering questions identified by land 
     managers, practitioners, and others concerned with land 
     management; and
       (ii) will be useful in the development and implementation 
     of practical, science-based, ecological restoration 
     treatments;
       (B) translate scientific knowledge into communication tools 
     that are easily understood by land managers, natural resource 
     professionals, and concerned citizens; and
       (C) provide similar information to land managers and other 
     interested persons.
       (3) Cooperation.--Each Institute shall cooperate with--
       (A) researchers at colleges and universities in the States 
     that have demonstrated capabilities for research, information 
     dissemination, continuing education, and undergraduate and 
     graduate training, to develop broad capacity to implement 
     ecological restoration in forest and woodland ecosystems; and
       (B) other organizations and entities in the region (such as 
     the Western Governors' Association, Southwest Strategy group, 
     the Southwest Fire Management Board, and the Arizona 
     Governor's Forest Health/Fire Plan Advisory Committee), to 
     increase and accelerate efforts to restore forest ecosystem 
     health and abate unnatural and unwanted wildfire.
       (4) Approval of annual work plan; requisite assurances.--As 
     a condition to the receipt of funds made available under 
     subsection (g), for each fiscal year, each Institute shall 
     submit to the Secretary of Agriculture, for review by the 
     Secretary of Agriculture, in consultation with the Secretary 
     of the Interior, an annual work plan that includes 
     assurances, satisfactory to the Secretaries, that the 
     proposed work will serve the information needs of--
       (A) land managers;
       (B) practitioners;
       (C) concerned citizens and communities; and
       (D) the States.
       (e) Cooperation Between Institutes and Federal Agencies.--
     In carrying out this section, the Secretary of Agriculture, 
     in consultation with the Secretary of the Interior--
       (1) shall encourage other Federal departments, agencies, 
     and instrumentalities to use and take advantage of, on a 
     cooperative basis, the expertise and capabilities that are 
     available through the Institutes;
       (2) shall encourage cooperation and coordination with other 
     Federal programs relating to--
       (A) ecological restoration; and
       (B) wildfire risk reduction;
       (3) may (notwithstanding chapter 63 of title 31, United 
     States Code)--
       (A) enter into contracts, cooperative agreements, 
     interagency personal agreements; and
       (B) carry out other transactions;
       (4) may accept funds from other Federal departments, 
     agencies, and instrumentalities to supplement or fully fund 
     grants made, and contracts entered into, by the Secretaries;
       (5) may promulgate such regulations as the Secretaries 
     consider appropriate;
       (6) may support a program of internships for qualified 
     individuals at the undergraduate and graduate levels to carry 
     out the educational and training objectives of this section; 
     and
       (7) shall encourage professional education and public 
     information activities relating to the purposes of this 
     section.
       (f) Monitoring and Evaluation.--
       (1) In general.--Not later than 5 years after the date of 
     enactment of this Act, and every 5 years thereafter, the 
     Secretary, in consultation with the Secretary of the 
     Interior, shall complete a detailed evaluation of each 
     Institute--
       (A) to ensure, to the maximum extent practicable, that the 
     research, communication tools,

[[Page S1108]]

     and information transfer activities of the Institute meet the 
     needs of--
       (i) land managers;
       (ii) practitioners;
       (iii) concerned citizens and communities; and
       (iv) the States; and
       (B) to determine whether continued provision of Federal 
     assistance to the Institute is warranted.
       (2) Standards for receipt of financial assistance.--If, as 
     a result of an evaluation under paragraph (1), the Secretary, 
     in consultation with the Secretary of the Interior, 
     determines that an Institute does not qualify for further 
     Federal assistance under this section, the Institute shall 
     receive no further Federal assistance under this section 
     until such time as the qualifications of the Institute are 
     reestablished to the satisfaction of the Secretaries.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each fiscal year.

                            TITLE IX--ENERGY

     SEC. 901. FINDINGS.

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

     SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 649) is amended by adding at the end the 
     following:

                       ``Subtitle L--Clean Energy

     ``SEC. 388A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means any organic 
     material that is available on a renewable or recurring basis.
       ``(B) Inclusions.--The term `biomass' includes--
       ``(i) dedicated energy crops;
       ``(ii) trees grown for energy production;
       ``(iii) wood waste and wood residues;
       ``(iv) plants (including aquatic plants, grasses, and 
     agricultural crops);
       ``(v) residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) fats and oils.
       ``(C) Exclusions.--The term `biomass' does not include--
       ``(i) paper that is commonly recycled; or
       ``(ii) unsegregated garbage.
       ``(2) Renewable energy.--The term `renewable energy' means 
     energy derived from a wind, solar, biomass, geothermal, or 
     hydrogen source.
       ``(3) Rural small business.--The term `rural small 
     business' has the meaning that the Secretary shall prescribe 
     by regulation.

               ``CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT

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

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Biobased product.--The term `biobased product' means 
     a commercial or industrial product, as determined by the 
     Secretary (other than food or feed), that uses biological 
     products or renewable domestic agricultural materials 
     (including plant, animal, and marine materials) or forestry 
     materials.
       ``(3) Environmentally preferable.--The term 
     `environmentally preferable', with respect to a biobased 
     product, refers to a biobased product that has a lesser or 
     reduced effect on human health and the environment when 
     compared with competing nonbiobased products that serve the 
     same purpose.
       ``(b) Biobased Product Purchasing.--
       ``(1) Mandatory purchasing requirement for listed biobased 
     products.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 180 days after the date of enactment of this 
     subtitle, the head of each Federal agency shall ensure that, 
     in purchasing any product, the Federal agency purchases a 
     biobased product, rather than a comparable nonbiobased 
     product, if the biobased product is listed on the list of 
     biobased products published under subsection (c)(1).
       ``(B) Biobased product not reasonably comparable.--A 
     Federal agency shall not be required to purchase a biobased 
     product under subparagraph (A) if the purchasing employee 
     submits to the Secretary and the Administrator of the Office 
     of Federal Procurement Policy a written determination that 
     the biobased product is not reasonably comparable to 
     nonbiobased products in price, performance, or availability.
       ``(C) Conflicting requirements.--The Secretary and the 
     Administrator shall jointly promulgate regulations with which 
     Federal agencies shall comply in cases of a conflict between 
     the biobased product purchasing requirement under 
     subparagraph (A) and a purchasing requirement under any other 
     provision of law.
       ``(2) Purchasing of nonlisted biobased products.--The head 
     of each Federal agency is encouraged to purchase, to the 
     maximum extent practicable, available biobased products that 
     are not listed on the list of biobased products published 
     under subsection (c)(1) when the Federal agency is not 
     required to purchase a biobased product that is on the list.
       ``(c) Administrative Action.--
       ``(1) List of biobased products.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Secretary, in consultation with the Administrator and the 
     Director of the National Institute of Standards and 
     Technology, shall publish a list of biobased products.
       ``(B) Environmentally preferable biobased products.--The 
     Secretary shall not include on the list under paragraph (1) 
     biobased products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(C) Grants.--The Secretary may award grants to, or enter 
     into contracts or cooperative agreements with, eligible 
     persons, businesses, or institutions (as determined by the 
     Secretary) to assist in collecting data concerning the 
     evaluation of and lifecycle analyses of biobased products for 
     use in making the determinations necessary to carry out this 
     paragraph.
       ``(2) Guidance.--Not later than 240 days after the date of 
     enactment of this subtitle, the Office of Federal Procurement 
     Policy and Federal Acquisition Regulation Council shall make 
     the Federal Acquisition Regulation consistent with subsection 
     (b).
       ``(d) Education and Outreach Program.--The Secretary, in 
     cooperation with the Defense Acquisition University and the 
     Federal Acquisition Institute, shall conduct education 
     programs for all Federal procurement officers regarding 
     biobased products and the requirements of subsection (b).
       ``(e) Labeling.--
       ``(1) In general.--The Secretary shall develop a program, 
     similar to the Energy Star program of the Department of 
     Energy and the Environmental Protection Agency, under which 
     the Secretary authorizes producers of environmentally 
     preferable biobased products to use a label that identifies 
     the products as environmentally preferable biobased products.
       ``(2) Environmentally preferable biobased products.--The 
     Secretary shall monitor and take appropriate action regarding 
     the use of labels under paragraph (1) to ensure that the 
     biobased products using the labels do not include biobased 
     products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(3) Contracting.--In carrying out paragraph (1), the 
     Secretary may contract with appropriate entities with 
     expertise in product labeling and standard setting.
       ``(f) Goal.--It shall be the goal of each Federal agency 
     for each fiscal year to purchase biobased products of an 
     aggregate value that is not less than 5 percent of the 
     aggregate value of all products purchased by the Federal 
     agency during the preceding fiscal year.

[[Page S1109]]

       ``(g) Reports.--As soon as practicable after the end of 
     each fiscal year, the Secretary and the Office of Federal 
     Procurement Policy shall jointly submit to Congress an annual 
     report that, for the fiscal year, describes the extent of--
       ``(1) compliance by each Federal agency with subsection 
     (b); and
       ``(2) the success of each Federal agency in achieving the 
     goal established under subsection (f).
       ``(h) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $2,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     ``SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.

       ``(a) Purpose.--The purpose of this section is to assist in 
     the development of new and emerging technologies for the 
     conversion of biomass into petroleum substitutes, so as to--
       ``(1) develop transportation and other fuels and chemicals 
     from renewable sources;
       ``(2) reduce the dependence of the United States on 
     imported oil;
       ``(3) reduce greenhouse gas emissions;
       ``(4) diversify markets for raw agricultural and forestry 
     products; and
       ``(5) create jobs and enhance the economic development of 
     the rural economy.
       ``(b) Definitions.--In this section:
       ``(1) Advisory committee.--The term `Advisory Committee' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 306 of the Biomass Research 
     and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 
     106-224).
       ``(2) Biorefinery.--The term `biorefinery' means equipment 
     and processes that--
       ``(A) convert biomass into fuels and chemicals; and
       ``(B) may produce electricity.
       ``(3) Board.--The term `Board' means the Biomass Research 
     and Development Board established by section 305 of the 
     Biomass Research and Development Act of 2000 (7 U.S.C. 7624 
     note; Public Law 106-224).
       ``(4) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(c) Grants.--The Secretary shall award grants to eligible 
     entities to assist in paying the cost of development and 
     construction of biorefineries to carry out projects to 
     demonstrate the commercial viability of 1 or more processes 
     for converting biomass to fuels or chemicals.
       ``(d) Eligible Entities.--A corporation, farm cooperative, 
     association of farmers, national laboratory, university, 
     State energy agency or office, Indian tribe, or consortium 
     comprised of any of those entities shall be eligible to 
     receive a grant under subsection (c).
       ``(e) Competitive Basis for Awards.--
       ``(1) In general.--The Secretary shall award grants under 
     subsection (c) on a competitive basis in consultation with 
     the Board and Advisory Committee.
       ``(2) Selection criteria.--
       ``(A) In general.--In selecting projects to receive grants 
     under subsection (c), the Secretary--
       ``(i) shall select projects based on the likelihood that 
     the projects will demonstrate the commercial viability of a 
     process for converting biomass into fuels or chemicals; and
       ``(ii) may consider the likelihood that the projects will 
     produce electricity.
       ``(B) Factors.--The factors to be considered under 
     subparagraph (A) shall include--
       ``(i) the potential market for the product or products;
       ``(ii) the quantity of petroleum the product will displace;
       ``(iii) the level of financial participation by the 
     applicants;
       ``(iv) the availability of adequate funding from other 
     sources;
       ``(v) the beneficial impact on resource conservation and 
     the environment;
       ``(vi) the participation of producer associations and 
     cooperatives;
       ``(vii) the timeframe in which the project will be 
     operational;
       ``(viii) the potential for rural economic development;
       ``(ix) the participation of multiple eligible entities; and
       ``(x) the potential for developing advanced industrial 
     biotechnology approaches.
       ``(f) Cost Sharing.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of a grant for a project awarded under subsection (c) 
     shall not exceed 30 percent of the cost of the project.
       ``(2) Increased grant amount.--The Secretary may increase 
     the amount of a grant for a project under subsection (c) to 
     not more than 50 percent in the case of a project that the 
     Secretary finds particularly meritorious.
       ``(3) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of a 
     project may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of a project that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share 
     determined under paragraph (1).
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

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

       ``(a) Findings.--Congress finds that--
       ``(1) biodiesel fuel use can help reduce greenhouse gas 
     emissions and public health risks associated with air 
     pollution;
       ``(2) biodiesel fuel use enhances energy security by 
     reducing petroleum consumption;
       ``(3) biodiesel fuel is nearing the transition from the 
     research and development phase to commercialization;
       ``(4) biodiesel fuel is still relatively unknown to the 
     public and even to diesel fuel users; and
       ``(5) education of, and provision of technical support to, 
     current and future biodiesel fuel users will be critical to 
     the widespread use of biodiesel fuel.
       ``(b) Establishment.--The Secretary shall, under such terms 
     and conditions as are appropriate, offer 1 or more 
     competitive grants to eligible entities to educate Federal, 
     State, regional, and local government entities and private 
     entities that operate vehicle fleets, other interested 
     entities (as determined by the Secretary), and the public 
     about the benefits of biodiesel fuel use.
       ``(c) Eligible Entities.--To receive a grant under 
     subsection (b), an entity--
       ``(1) shall be a nonprofit organization; and
       ``(2) shall have demonstrated expertise in biodiesel fuel 
     production, use, and distribution.
       ``(d) Authorization of Appropriations.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall make 
     available $5,000,000 for each fiscal year 2003 through 2006.

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

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

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, in addition to exercising 
     authority to make loans and loan guarantees under other law, 
     shall establish a program under which the Secretary shall 
     make loans and loan guarantees and competitively award grants 
     to assist farmers and ranchers in projects to establish new, 
     or expand existing, farmer or rancher cooperatives, or other 
     rural business ventures (as determined by the Secretary), 
     to--
       ``(1) enable farmers and ranchers to become owners of 
     sources of renewable electric energy and marketers of 
     electric energy produced from renewable sources;
       ``(2) provide new income streams for farmers and ranchers;
       ``(3) increase the quantity of electricity available from 
     renewable energy sources; and
       ``(4) provide environmental and public health benefits to 
     rural communities and the United States as a whole.
       ``(b) Ownership Requirement.--At least 51 percent of the 
     interest in a rural business venture assisted with a grant 
     under subsection (a) shall be owned by farmers or ranchers.
       ``(c) Maximum Amount of Loans and Grants.--
       ``(1) Loans.--The amount of a loan made or guaranteed for a 
     project under subsection (a) shall not exceed $10,000,000.
       ``(2) Grants.--The amount of a grant made for a project 
     under subsection (a) shall not exceed $200,000 for a fiscal 
     year.
       ``(d) Cost Sharing.--
       ``(1) In general.--The total amount of loans made or 
     guaranteed or grants awarded under subsection (a) for a 
     project shall not exceed 50 percent of the cost of the 
     activity funded by the loan or grant.
       ``(2) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of the 
     activity may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of an activity that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share, as 
     determined under paragraph (1).
       ``(e) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear an interest rate that does not 
     exceed 4 percent.
       ``(f) Use of Funds.--
       ``(1) Permitted uses.--
       ``(A) Grants.--A recipient of a grant awarded under 
     subsection (a) may use the grant funds to develop a business 
     plan or perform a feasibility study to establish a viable 
     marketing opportunity for renewable electric energy 
     generation and sale.
       ``(B) Loans.--A recipient of a loan or loan guarantee under 
     subsection (a) may use the loan funds to provide capital for 
     start-up costs associated with the rural business venture or 
     the promotion of the aggregation of renewable electric energy 
     sources.
       ``(2) Prohibited uses.--A recipient of a loan, loan 
     guarantee, or grant under subsection (a) shall not use the 
     loan or grant funds for planning, repair, rehabilitation, 
     acquisition, or construction of a building.
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the

[[Page S1110]]

     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $16,000,000, to remain available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.

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

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, shall make competitive grants 
     to eligible entities to enable the eligible entities to carry 
     out a program to assist farmers, and ranchers, and rural 
     small businesses (as determined by the Secretary) in becoming 
     more energy efficient and in using renewable energy 
     technology.
       ``(b) Eligible Entities.--Entities eligible to carry out a 
     program under subsection (a) include--
       ``(1) a State energy or agricultural office;
       ``(2) a regional or State-based energy organization or 
     energy organization of an Indian tribe (as defined in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b));
       ``(3) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) 
     or other college or university;
       ``(4) a farm bureau or organization;
       ``(5) a rural electric cooperative or utility;
       ``(6) a nonprofit organization; and
       ``(7) any other entity, as determined by the Secretary.
       ``(c) Merit Review.--
       ``(1) Merit review panel.--The Secretary shall establish a 
     merit review panel to review applications for grants under 
     subsection (a) that uses the expertise of other Federal 
     agencies (including the Department of Energy and the 
     Environmental Protection Agency), industry, and 
     nongovernmental organizations.
       ``(2) Selection criteria.--In reviewing applications of 
     eligible entities to receive grants under subsection (a), the 
     merit review panel shall consider--
       ``(A) the ability and expertise of the eligible entity in 
     providing professional energy audits and renewable energy 
     assessments;
       ``(B) the geographic scope of the program proposed by the 
     eligible entity;
       ``(C) the number of farmers, ranchers, and rural small 
     businesses to be assisted by the program;
       ``(D) the potential for energy savings and environmental 
     and public health benefits resulting from the program; and
       ``(E) the plan of the eligible entity for educating 
     farmers, ranchers, and rural small businesses on the benefits 
     of energy efficiency and renewable energy development.
       ``(d) Use of Grant Funds.--A recipient of a grant under 
     subsection (a) shall use the grant funds to--
       ``(1)(A) conduct energy audits for farmers, ranchers, and 
     rural small businesses to provide farmers, ranchers, and 
     rural small businesses recommendations for energy efficiency 
     and renewable energy development opportunities; and
       ``(B) conduct workshops on that subject as appropriate;
       ``(2) make farmers, ranchers, and rural small businesses 
     aware of, and ensure that they have access to--
       ``(A) financial assistance under section 388G; and
       ``(B) other Federal, State, and local financial assistance 
     programs for which farmers, ranchers, and rural small 
     businesses may be eligible; and
       ``(3) arrange private financial assistance to farmers, 
     ranchers, and rural small businesses on favorable terms.
       ``(e) Cost Sharing.--
       ``(1) In general.--A recipient of a grant under subsection 
     (a) that conducts an energy audit for a farmer, rancher, or 
     rural small business under subsection (d)(1) shall require 
     that, as a condition to the conduct of the energy audit, the 
     farmer, rancher, or rural small business pay at least 25 
     percent of the cost of the audit.
       ``(2) Implementation of recommendations.--If a farmer, 
     rancher, or rural small business substantially implements the 
     recommendations made in connection with an energy audit, the 
     Secretary may reimburse the farmer, rancher, or rural small 
     business the amount that is equal to the share of the cost 
     paid by the farmer, rancher, or rural small business under 
     paragraph (1).
       ``(f) Reports.--The Secretary shall submit to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report on the implementation of this 
     section.
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

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

       ``(a) In General.--In addition to exercising authority to 
     make loans and loan guarantees under other law, the Secretary 
     shall make loans, loan guarantees, and grants to farmers, 
     ranchers, and rural small businesses to--
       ``(1) purchase renewable energy systems; and
       ``(2) make energy efficiency improvements.
       ``(b) Eligibility of Farmers and Ranchers.--To be eligible 
     to receive a grant under subsection (a) for a fiscal year, a 
     farmer or rancher shall have produced not more than 
     $1,000,000 in market value of agricultural products during 
     the preceding fiscal year, as determined by the Secretary.
       ``(c) Cost Sharing.--
       ``(1) Renewable energy systems.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for a renewable energy system shall not exceed 30 percent 
     of the cost of the renewable energy system.
       ``(ii) Maximum amount of combined grant and loan.--The 
     combined amount of a grant and loan made or guaranteed under 
     subsection (a) for a renewable energy system shall not exceed 
     60 percent of the cost of the renewable energy system.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--
       ``(i) the type of renewable energy system to be purchased;
       ``(ii) the estimated quantity of energy to be generated or 
     displaced by the renewable energy system;
       ``(iii) the expected environmental benefits of the 
     renewable energy system;
       ``(iv) the extent to which the renewable energy system will 
     be replicable; and
       ``(v) other factors as appropriate.
       ``(2) Energy efficiency improvements.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for an energy efficiency improvement shall not exceed 25 
     percent of the cost of the energy efficiency improvement.
       ``(ii) Maximum amount of combined grant and loan.--The 
     combined amount of a grant and loan made or guaranteed under 
     subsection (a) for an energy efficiency project shall not 
     exceed 50 percent of the cost of the energy efficiency 
     improvement.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--
       ``(i) the estimated length of time it would take for the 
     energy savings generated by the improvement to equal the cost 
     of the improvement;
       ``(ii) the amount of energy savings expected to be derived 
     from the improvement; and
       ``(iii) other factors as appropriate.
       ``(d) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear interest at a rate not exceeding 4 
     percent.
       ``(e) Energy Audit and Renewable Energy Development 
     Program.--
       ``(1) Preference.--In making loans, loan guarantees, and 
     grants under subsection (a), the Secretary shall give 
     preference to participants in the energy audit and renewable 
     energy development program under section 388F.
       ``(2) Reservation of funding.--The Secretary shall reserve 
     at least 25 percent of the funds made available to carry out 
     this section for each of fiscal years 2002 through 2006 to 
     participants in the energy audit and renewable energy 
     development program under section 388F.
       ``(f) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $33,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.

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

       ``(a) Findings.--Congress finds that--
       ``(1) fuel cells are a highly efficient, clean, and 
     flexible technology for generating electricity from hydrogen 
     that promises to improve the environment, electricity 
     reliability, and energy security;
       ``(2)(A) because fuel cells can be made in any size, fuel 
     cells can be used for a wide variety of farm applications, 
     including powering farm vehicles, equipment, houses, and 
     other operations; and
       ``(B) much of the initial use of fuel cells is likely to be 
     in remote and off-grid applications in rural areas; and
       ``(3) hydrogen is a clean and flexible fuel that can play a 
     critical role in storing and transporting energy produced on 
     farms from renewable sources (including biomass, wind, and 
     solar energy).
       ``(b) Grant program.--The Secretary of Agriculture, in 
     consultation with the Secretary of Energy, shall establish a 
     program under which the Secretary of Agriculture shall 
     competitively award grants to, or enter into contracts or 
     cooperative agreements with, eligible entities for--
       ``(1) projects to demonstrate the use of hydrogen 
     technologies and fuel cell technologies in farm, ranch, and 
     rural applications; and
       ``(2) as appropriate, studies of the technical, 
     environmental, and economic viability, in farm, ranch, and 
     rural applications, of innovative hydrogen and fuel cell 
     technologies not ready for demonstration.

[[Page S1111]]

       ``(c) Eligible Entities.--Under subsection (b), the 
     Secretary may make a grant to or enter into a contract or 
     cooperative agreement with--
       ``(1) a Federal research agency;
       ``(2) a national laboratory;
       ``(3) a college or university or a research foundation 
     maintained by a college or university;
       ``(4) a private organization with an established and 
     demonstrated capacity to perform research or technology 
     transfer;
       ``(5) a State agricultural experiment station;
       ``(6) an individual; or
       ``(7) a consortium comprised of entities described in 
     paragraphs (1) through (6).
       ``(d) Selection Criteria.--In selecting projects for 
     grants, contracts, and cooperative agreements under 
     subsection (b)(1), the Secretary shall give preference to 
     projects that demonstrate technologies that--
       ``(1) are innovative;
       ``(2) use renewable energy sources;
       ``(3) generate both usable electricity and heat;
       ``(4) provide significant environmental benefits;
       ``(5) are likely to be economically competitive; and
       ``(6) have potential for commercialization as mass-
     produced, farm- or ranch-sized systems.
       ``(e) Cost Sharing.--The amount of financial assistance 
     provided for a project under a grant, contract, or 
     cooperative agreement under subsection (b) shall not exceed 
     50 percent of the cost of the project.
       ``(f) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $5,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

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

       ``(a) In General.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     in consultation with the Natural Resources Conservation 
     Service, regional biomass programs under the Department of 
     Energy, and other entities as appropriate, may provide for 
     education and technical assistance to farmers and ranchers 
     for the development and marketing of renewable energy 
     resources.
       ``(b) Administrative Expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

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

     ``SEC. 388J. RESEARCH.

       ``(a) Basic Research.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall carry out research to 
     promote understanding of--
       ``(A) the net sequestration of organic carbon in soils and 
     plants (including trees); and
       ``(B) net emissions of other greenhouse gases from 
     agriculture.
       ``(2) Agricultural research service.--The Secretary, acting 
     through the Agricultural Research Service, shall collaborate 
     with other Federal agencies in developing data and carrying 
     out research addressing carbon losses and gains in soils and 
     plants (including trees) and net emissions of methane and 
     nitrous oxide from cultivation and animal management 
     activities.
       ``(3) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a competitive grant program to carry out 
     research on the matters described in paragraph (1) by 
     eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station;
       ``(vi) a State forestry agency that has developed or is 
     developing a forest carbon sequestration program; or
       ``(vii) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for basic research under paragraph (1), 
     the Cooperative State Research, Education, and Extension 
     Service shall consult with the Agricultural Research Service 
     and the Forest Service to ensure that proposed research areas 
     are complementary with and do not duplicate other research 
     projects funded by the Department or other Federal agencies.
       ``(D) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this subsection to pay administrative 
     expenses incurred in carrying out this subsection.
       ``(b) Applied Research.--
       ``(1) In general.--The Secretary shall carry out applied 
     research in the areas of soil science, agronomy, agricultural 
     economics, forestry, and other agricultural sciences to--
       ``(A) promote understanding of--
       ``(i) how agricultural and forestry practices affect the 
     sequestration of organic and inorganic carbon in soils and 
     plants (including trees) and net emissions of other 
     greenhouse gases;
       ``(ii) how changes in soil carbon pools in soils and plants 
     (including trees) are cost-effectively measured, monitored, 
     and verified; and
       ``(iii) how public programs and private market approaches 
     can be devised to incorporate carbon sequestration in a 
     broader societal greenhouse gas emission reduction effort;
       ``(B) develop methods for establishing baselines for 
     measuring the quantities of carbon and other greenhouse gases 
     sequestered; and
       ``(C) evaluate leakage, performance, and permanence issues.
       ``(2) Requirements.--To the maximum extent practicable, 
     applied research under paragraph (1) shall--
       ``(A) use existing technologies and methods; and
       ``(B) provide methodologies that are accessible to a 
     nontechnical audience.
       ``(3) Minimization of adverse environmental impacts.--All 
     applied research under paragraph (1) shall be conducted with 
     an emphasis on minimizing adverse environmental impacts.
       ``(4) Natural resources and the environment.--The 
     Secretary, acting through the Natural Resources Conservation 
     Service and the Forest Service, shall collaborate with other 
     Federal agencies in developing new measuring techniques and 
     equipment or adapting existing techniques and equipment to 
     enable cost-effective and accurate monitoring and 
     verification, for a wide range of agricultural and forestry 
     practices, of--
       ``(A) changes in carbon content in soils and plants 
     (including trees); and
       ``(B) net emissions of other greenhouse gases.
       ``(5) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     and the Forest Service, shall establish a competitive grant 
     program to encourage research on the matters described in 
     paragraph (1) by eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station;
       ``(vi) a State forestry agency that has developed or is 
     developing a forest carbon sequestration program; or
       ``(vii) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for applied research under paragraph 
     (1), the Cooperative State Research, Education, and Extension 
     Service and the Forest Service shall consult with the Natural 
     Resources Conservation Service and the Agricultural Research 
     Service to ensure that proposed research areas are 
     complementary with and do not duplicate research projects 
     funded by the Department of Agriculture or other Federal 
     agencies.
       ``(D) Administrative expenses.--The Secretary, acting 
     through the Cooperative State Research, Education, and 
     Extension Service, may retain up to 4 percent of the amounts 
     made available for each fiscal year to carry out this 
     subsection to pay administrative expenses incurred in 
     carrying out this subsection.
       ``(c) Research Consortia.--
       ``(1) In general.--The Secretary may designate not more 
     than 2 research consortia to carry out research projects 
     under this section, with the requirement that the consortia 
     propose to conduct basic research under subsection (a) and 
     applied research under subsection (b) .
       ``(2) Selection.--The consortia shall be selected on a 
     competitive basis by the Cooperative State Research, 
     Education, and Extension Service.
       ``(3) Eligible consortium participants.--Entities eligible 
     to participate in a consortium include--
       ``(A) a college or university or a research foundation 
     maintained by a college or university;
       ``(B) a private research institution;
       ``(C) a State agency;
       ``(D) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b));
       ``(E) an agency of the Department of Agriculture;
       ``(F) a research center of the National Aeronautics and 
     Space Administration, the Department of Energy, or any other 
     Federal agency;
       ``(G) an agricultural business or organization with 
     demonstrated expertise in areas covered by this section; and
       ``(H) a representative of the private sector with 
     demonstrated expertise in the areas.
       ``(4) Reservation of funding.--If the Secretary designates 
     1 or 2 consortia, the Secretary shall reserve for research 
     projects carried out by the consortium or consortia not more 
     than 25 percent of the amounts made available to carry out 
     this section for a fiscal year.
       ``(d) Standards for Measuring Carbon and Other Greenhouse 
     Gas Content.--
       ``(1) Conference.--Not later than 3 years after the date of 
     enactment of this subtitle, the Secretary shall convene a 
     conference of key scientific experts on carbon sequestration 
     from various sectors (including the government, academic, and 
     private sectors) to--
       ``(A) discuss benchmark standards for measuring the carbon 
     content of soils and plants (including trees) and net 
     emissions of other greenhouse gases;
       ``(B) propose techniques and modeling approaches for 
     measuring carbon content with a

[[Page S1112]]

     level of precision that is agreed on by the participants in 
     the conference; and
       ``(C) evaluate results of analyses on baseline, permanence, 
     and leakage issues.
       ``(2) Development of benchmark standards.--
       ``(A) In general.--The Secretary shall develop benchmark 
     standards for measuring the carbon content of soils and 
     plants (including trees) based on--
       ``(i) information from the conference under paragraph (1);
       ``(ii) research conducted under this section; and
       ``(iii) other information available to the Secretary.
       ``(B) Opportunity for public comment.--The Secretary shall 
     provide an opportunity for the public to comment on the 
     benchmark standards developed under subparagraph (A).
       ``(3) Report.--Not later than 180 days after the conclusion 
     of the conference under paragraph (1), the Secretary shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report on the results of the 
     conference.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $25,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--
       ``(A) In general.--Of the amounts made available to carry 
     out this section for a fiscal year, at least 50 percent shall 
     be allocated for competitive grants by the Cooperative State 
     Research, Education, and Extension Service.
       ``(B) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

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

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

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

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

     ``SEC. 310. FUNDING.

       ``(a) Transfers by the Secretary of the Treasury.--
       ``(1) In General.--Not later than 30 days after the date of 
     enactment of this subsection, and on October 1, 2002, and 
     each October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this title $15,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under paragraph (1), without 
     further appropriation.
       ``(b) Authorization of Appropriations.--In addition to 
     amounts transferred under subsection (a), there are 
     authorized to be appropriated to carry out this title 
     $49,000,000 for each of fiscal years 2002 through 2006.''.
       (b) Termination of Authority.--Section 311 of the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 7624 note; 
     Public Law 106-224) (as redesignated by subsection (a)) is 
     amended by striking ``December 31, 2005'' and inserting 
     ``September 30, 2006''.

     SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Renewable energy.--The term `renewable energy' means 
     energy derived from a wind, solar, biomass, geothermal, or 
     hydrogen source.
       ``(2) Rural area.--The term `rural area' includes any area 
     that is not within the boundaries of--
       ``(A) a city, town, village, or borough having a population 
     of more than 20,000; or
       ``(B) an urbanized area (as determined by the Secretary).
       ``(b) Loans, Loan Guarantees, and Grants.--The Secretary 
     shall make loans, loan guarantees, and grants to rural 
     electric cooperatives and other rural electric utilities (as 
     determined by the Secretary) to promote the development of 
     economically and environmentally sustainable renewable energy 
     projects to serve the needs of rural communities or for rural 
     economic development.
       ``(c) Interest Rate.--A loan made or guaranteed under 
     subsection (b) shall bear interest at a rate not exceeding 4 
     percent.
       ``(d) Use of Funds.--
       ``(1) Grants.--A recipient of a grant under subsection (a) 
     may use the grant funds to pay up to 75 percent of the cost 
     of an economic feasibility study or technical assistance for 
     a renewable energy project.
       ``(2) Loans.--If a renewable energy project is determined 
     to be economically feasible, a recipient of a loan or loan 
     guarantee under subsection (a) may use the loan funds to pay 
     a percentage of the cost of the project determined by the 
     Secretary.
       ``(e) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $9,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.''.

     SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       (a) Findings.--Congress finds that--
       (1) greenhouse gas emissions resulting from human activity 
     present potential risks and potential opportunities for 
     agricultural and forestry production;
       (2) there is a need to identify cost-effective methods that 
     can be used in the agricultural and forestry sectors to 
     reduce the threat of climate change;
       (3) deforestation and other land use changes account for 
     approximately 1,600,000,000 of the 7,900,000,000 metric tons 
     of the average annual worldwide quantity of carbon emitted 
     during the 1990s;
       (4) ocean and terrestrial systems each sequestered 
     approximately 2,300,000,000 metric tons of carbon annually, 
     resulting in a sequestration of 60 percent of the annual 
     human-induced emissions of carbon during the 1990s;
       (5) there are opportunities for increasing the quantity of 
     carbon that can be stored in terrestrial systems through 
     improved, human-induced agricultural and forestry practices;
       (6) increasing the carbon content of soil helps to reduce 
     erosion, reduce flooding, minimize the effects of drought, 
     prevent nutrients and pesticides from washing into water 
     bodies, and contribute to water infiltration, air and water 
     holding capacity, and good seed germination and plant growth;
       (7) tree planting and wetland restoration could play a 
     major role in sequestering carbon

[[Page S1113]]

     and reducing greenhouse gas concentrations in the atmosphere;
       (8) nitrogen management is a cost-effective method of 
     addressing nutrient overenrichment in the estuaries of the 
     United States and of reducing emissions of nitrous oxide;
       (9) animal feed and waste management can be cost-effective 
     methods to address water quality issues and reduce emissions 
     of methane; and
       (10) there is a need to--
       (A) demonstrate that carbon sequestration in soils, plants, 
     and forests and reductions in greenhouse gas emissions 
     through nitrogen and animal feed and waste management can be 
     measured and verified; and
       (B) develop and refine quantification, verification, and 
     auditing methodologies for carbon sequestration and 
     greenhouse gas emission reductions on a project by project 
     basis.
       (b) Program.--Title IV of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
     seq.) (as amended by section 750) is amended by adding at the 
     end the following:

     ``SEC. 412. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible project.--The term `eligible project' means 
     a project that is likely to result in--
       ``(A) demonstrable reductions in net emissions of 
     greenhouse gases; or
       ``(B) demonstrable net increases in the quantity of carbon 
     sequestered in soils and forests.
       ``(2) Environmental trade.--The term `environmental trade' 
     means a transaction between an emitter of a greenhouse gas 
     and an agricultural producer or farmer-owned cooperative 
     under which the emitter pays to the agricultural producer or 
     farmer-owned cooperative a fee to sequester carbon or 
     otherwise reduce emissions of greenhouse gases.
       ``(3) Panel.--The term `panel' means the panel of experts 
     established under subsection (b)(4)(A).
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting in consultation with--
       ``(A) the Under Secretary of Agriculture for Natural 
     Resources and Environment;
       ``(B) the Under Secretary of Agriculture for Research, 
     Education, and Economics;
       ``(C) the Chief Economist of the Department; and
       ``(D) the panel.
       ``(b) Demonstration Program.--
       ``(1) Establishment.--Subject to the availability of 
     appropriations, the Secretary shall establish a program to 
     provide grants, on a competitive, cost-shared basis, to 
     agricultural producers, non-industrial private forest owners 
     and farmer-owned cooperatives, to assist in paying the costs 
     incurred in measuring, estimating, monitoring, verifying, 
     auditing, and testing methodologies involved in environmental 
     trades (including costs incurred in employing certified 
     independent third persons to carry out those activities).
       ``(2) Conditions for receipt of grant.--As a condition of 
     the acceptance of a grant under paragraph (1), an 
     agricultural producer, non-industrial forest owner and 
     farmer-owned cooperatives shall--
       ``(A) establish a carbon and greenhouse gas monitoring, 
     verification, and reporting system that meets such 
     requirements as the Secretary shall prescribe; and
       ``(B) under the system and through the use of an 
     independent third party for any necessary monitoring, 
     verifying, reporting, and auditing, measure and report to the 
     Secretary the quantity of carbon sequestered, or the quantity 
     of greenhouse gas emissions reduced, as a result of the 
     conduct of an eligible project.
       ``(3) Criteria for award of grant.--
       ``(A) In general.--In awarding a grant for an eligible 
     project under paragraph (1), the Secretary shall take into 
     consideration--
       ``(i) the likelihood of the eligible project in succeeding 
     in achieving greenhouse gas emissions reductions and net 
     carbon sequestration increases; and
       ``(ii) the usefulness of the information to be obtained 
     from the eligible project in determining how best to 
     quantify, monitor, and verify sequestered carbon or 
     reductions in greenhouse gas emissions.
       ``(B) Eligibility criteria.--To be eligible for a grant 
     under paragraph (1), a project shall (as determined by the 
     Secretary)--
       ``(i) be designed to--

       ``(I) achieve long-term sequestration of carbon or long-
     term reductions in greenhouse gas emissions;
       ``(II) address concerns regarding leakage and permanence; 
     or
       ``(III) promote additionality; and

       ``(ii) not involve--

       ``(I) the reforestation of land that has been deforested 
     since 1990; or
       ``(II) the conversion of native grassland.

       ``(C) Priority criteria.--The Secretary shall give priority 
     in awarding a grant under paragraph (1) to an eligible 
     project that--
       ``(i) involves multiple parties, a whole farm approach, or 
     any other approach, such as the aggregation of land areas, 
     that would--

       ``(I) increase the environmental benefits or reduce the 
     transaction costs of the eligible project; and
       ``(II) reduce the costs of measuring, monitoring, and 
     verifying any net sequestration of carbon or net reduction in 
     greenhouse gas emissions; and

       ``(ii) provides certain benefits, such as improvements in--

       ``(I) soil fertility;
       ``(II) wildlife habitat;
       ``(III) water quality;
       ``(IV) soil erosion management;
       ``(V) the use of renewable resources to produce energy;
       ``(VI) the avoidance of ecosystem fragmentation; and
       ``(VII) the promotion of ecosystem restoration with native 
     species.

       ``(4) Panel.--
       ``(A) In general.--The Secretary shall establish a panel to 
     provide advice and recommendations to the Secretary with 
     respect to criteria for awarding grants under this 
     subsection.
       ``(B) Composition.--The panel shall be composed of the 
     following representatives, to be appointed by the Secretary:
       ``(i) Experts from each of--

       ``(I) the Department;
       ``(II) the Environmental Protection Agency; and
       ``(III) the Department of Energy.

       ``(ii) Experts from nongovernmental and academic entities.
       ``(5) Payment of grant funds.--The Secretary shall provide 
     a grant awarded under this section in such number of 
     installments as is necessary to ensure proper implementation 
     of an eligible project.
       ``(c) Dissemination of Information.--As soon as practicable 
     after the date of enactment of this section, the Secretary 
     shall establish an Internet site through which agricultural 
     producers, non-industrial private forest owners and farmer-
     owned cooperatives may obtain information concerning--
       ``(1) potential environmental trades; and
       ``(2) activities of the Secretary under this section.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2002 through 2006, of which $1,000,000 
     for each of fiscal years 2002 through 2006 shall be made 
     available to carry out farmer-owned cooperative carbon 
     environmental trade pilot projects, in accordance with this 
     section.''.

     SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL RENEWABLE 
                   FUELS STANDARD.

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

     SEC. 907. SENSE OF CONGRESS CONCERNING THE BIOENERGY PROGRAM 
                   OF THE DEPARTMENT OF AGRICULTURE.

       It is the sense of Congress that--
       (1) ethanol and biofuel production capacity will be needed 
     to phase out the use of methyl tertiary butyl ether in 
     gasoline and the dependence of the United States on foreign 
     oil; and
       (2) the bioenergy program of the Department of Agriculture 
     under part 1424 of title 7, Code of Federal Regulations, 
     should be continued and expanded.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

     SEC. 1001. COUNTRY OF ORIGIN LABELING.

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

                ``Subtitle D--Country of Origin Labeling

     ``SEC. 281. DEFINITIONS.

       ``In this subtitle:
       ``(1) Beef.--The term `beef' means meat produced from 
     cattle (including veal).
       ``(2) Covered commodity.--
       ``(A) In general.--The term `covered commodity' means--
       ``(i) muscle cuts of beef, lamb, and pork;
       ``(ii) ground beef, ground lamb, and ground pork;
       ``(iii) farm-raised fish;
       ``(iv) wild fish;
       ``(v) a perishable agricultural commodity; and
       ``(vi) peanuts.
       ``(B) Exclusions.--The term `covered commodity' does not 
     include--
       ``(i) processed beef, lamb, and pork food items; and
       ``(ii) frozen entrees containing beef, lamb, and pork.
       ``(3) Farm-raised fish.--The term `farm-raised fish' 
     includes--
       ``(A) farm-raised shellfish; and
       ``(B) fillets, steaks, nuggets, and any other flesh from a 
     farm-raised fish or shellfish.
       ``(4) Food service establishment.--The term `food service 
     establishment' means a restaurant, cafeteria, lunch room, 
     food stand, saloon, tavern, bar, lounge, or other similar 
     facility operated as an enterprise engaged in the business of 
     selling food to the public.
       ``(5) Lamb.--The term `lamb' means meat, other than mutton, 
     produced from sheep.
       ``(6) Perishable agricultural commodity; retailer.--The 
     terms `perishable agricultural commodity' and `retailer' have 
     the meanings given the terms in section 1(b) of the 
     Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
     499a(b)).
       ``(7) Pork.--The term `pork' means meat produced from hogs.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Agricultural Marketing 
     Service.
       ``(9) Wild fish.--
       ``(A) In general.--The term `wild fish' means naturally-
     born or hatchery-raised fish and shellfish harvested in the 
     wild.
       ``(B) Inclusions.--The term `wild fish' includes a fillet, 
     steak, nugget, and any other flesh from wild fish or 
     shellfish.
       ``(C) Exclusions.--The term `wild fish' excludes net-pen 
     aquacultural or other farm-raised fish.

     ``SEC. 282. NOTICE OF COUNTRY OF ORIGIN.

       ``(a) In General.--

[[Page S1114]]

       ``(1) Requirement.--Except as provided in subsection (b), a 
     retailer of a covered commodity shall inform consumers, at 
     the final point of sale of the covered commodity to 
     consumers, of the country of origin of the covered commodity.
       ``(2) United states country of origin.--A retailer of a 
     covered commodity may designate the covered commodity as 
     having a United States country of origin only if the covered 
     commodity--
       ``(A) in the case of beef, lamb, and pork, is exclusively 
     from an animal that is exclusively born, raised, and 
     slaughtered in the United States;
       ``(B) in the case of farm-raised fish, is hatched, raised, 
     harvested, and processed in the United States;
       ``(C) in the case of wild fish, is--
       ``(i) harvested in waters of the United States, a territory 
     of the United States, or a State; and
       ``(ii) processed in the United States, a territory of the 
     United States, or a State, including the waters thereof; and
       ``(D) in the case of a perishable agricultural commodities 
     or peanut, is exclusively produced in the United States.
       ``(3) Wild fish and farm-raised fish.--The notice of 
     country of origin for wild fish and farm-raised fish shall 
     distinguish between wild fish and farm-raised fish.
       ``(b) Exemption for Food Service Establishments.--
     Subsection (a) shall not apply to a covered commodity if the 
     covered commodity is--
       ``(1) prepared or served in a food service establishment; 
     and
       ``(2)(A) offered for sale or sold at the food service 
     establishment in normal retail quantities; or
       ``(B) served to consumers at the food service 
     establishment.
       ``(c) Method of Notification.--
       ``(1) In general.--The information required by subsection 
     (a) may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the covered 
     commodity or on the package, display, holding unit, or bin 
     containing the commodity at the final point of sale to 
     consumers.
       ``(2) Labeled commodities.--If the covered commodity is 
     already individually labeled for retail sale regarding 
     country of origin, the retailer shall not be required to 
     provide any additional information to comply with this 
     section.
       ``(d) Audit Verification System.--The Secretary may require 
     that any person that prepares, stores, handles, or 
     distributes a covered commodity for retail sale maintain a 
     verifiable recordkeeping audit trail that will permit the 
     Secretary to ensure compliance with the regulations 
     promulgated under section 284.
       ``(e) Information.--Any person engaged in the business of 
     supplying a covered commodity to a retailer shall provide 
     information to the retailer indicating the country of origin 
     of the covered commodity.
       ``(f) Certification of Origin.--
       ``(1) Mandatory identification.--The Secretary shall not 
     use a mandatory identification system to verify the country 
     of origin of a covered commodity.
       ``(2) Existing certification programs.--To certify the 
     country of origin of a covered commodity, the Secretary may 
     use as a model certification programs in existence on the 
     date of enactment of this Act, including--
       ``(A) the carcass grading and certification system carried 
     out under this Act;
       ``(B) the voluntary country of origin beef labeling system 
     carried out under this Act;
       ``(C) voluntary programs established to certify certain 
     premium beef cuts;
       ``(D) the origin verification system established to carry 
     out the child and adult care food program established under 
     section 17 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1766); or
       ``(E) the origin verification system established to carry 
     out the market access program under section 203 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623).

     ``SEC. 283. ENFORCEMENT.

       ``(a) In General.--Except as provided in subsection (b), 
     section 253 shall apply to a violation of this subtitle.
       ``(b) Warnings.--If the Secretary determines that a 
     retailer is in violation of section 282, the Secretary 
     shall--
       ``(1) notify the retailer of the determination of the 
     Secretary; and
       ``(2) provide the retailer a 30-day period, beginning on 
     the date on which the retailer receives the notice under 
     paragraph (1) from the Secretary, during which the retailer 
     may take necessary steps to comply with section 282.
       ``(c) Fines.--If, on completion of the 30-day period 
     described in subsection (c)(2), the Secretary determines that 
     the retailer has willfully violated section 282, after 
     providing notice and an opportunity for a hearing before the 
     Secretary with respect to the violation, the Secretary may 
     fine the retailer in an amount determined by the Secretary.

     ``SEC. 284. REGULATIONS.

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

     ``SEC. 285. APPLICATION.

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

     SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) (as amended by section 1001) is amended by adding at 
     the end the following:

           ``Subtitle E--Commodity-Specific Grading Standards

     ``SEC. 291. DEFINITION OF SECRETARY.

       ``In this subtitle, the term `Secretary' means the 
     Secretary of Agriculture.

     ``SEC. 292. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       ``An imported carcass, part thereof, meat, or meat food 
     product (as defined by the Secretary) shall not bear a label 
     that indicates a quality grade issued by the Secretary.

     ``SEC. 293. REGULATIONS.

       ``The Secretary shall promulgate such regulations as are 
     necessary to ensure compliance with, and otherwise carry out, 
     this subtitle.''.

                       Subtitle B--Crop Insurance

     SEC. 1011. EQUAL CROP INSURANCE TREATMENT OF POTATOES AND 
                   SWEET POTATOES.

       Section 508(a)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(a)(2)) is amended in the first sentence by 
     striking ``and potatoes'' and inserting ``, potatoes, and 
     sweet potatoes''.

     SEC. 1012. CONTINUOUS COVERAGE.

       Section 508(e)(4) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(e)(4)) is amended--
       (1) in the paragraph heading, by striking ``Temporary 
     prohibition'' and inserting ``Prohibition''; and
       (2) by striking ``through 2005'' and inserting ``and 
     subsequent''.

     SEC. 1013. QUALITY LOSS ADJUSTMENT PROCEDURES.

       Section 508(m)(3) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(m)(3)) is amended--
       (1) by striking ``The Corporation'' and inserting the 
     following:
       ``(A) Review.--The Corporation''; and
       (2) by striking ``Based on'' and inserting the following:
       ``(B) Procedures.--Effective beginning not later than the 
     2003 reinsurance year, based on''.

     SEC. 1014. CONSERVATION REQUIREMENTS.

       (a) Highly Erodible Land Conservation.--Section 1211(1) of 
     the Food Security Act of 1985 (16 U.S.C. 3811(1)) is 
     amended--
       (1) in subparagraph (A), by striking ``production 
     flexibility'';
       (2) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) an indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.);''.
       (b) Wetland Conservation.--Section 1221(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3821(b)) is amended--
       (1) in paragraph (1), by striking ``production 
     flexibility'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) A farm storage facility loan made under section 4(h) 
     of the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714b(h)).
       ``(3) A disaster payment.
       ``(4) An indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.).''.
       (c) Controlled Substances Production Control.--Section 
     519(b) of the Controlled Substances Act (21 U.S.C. 889(b)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) contract payments under a contract, marketing 
     assistance loans, and any type of price support or payment 
     made available under the Agricultural Market Transition Act 
     (7 U.S.C. 7201 et seq.), the Commodity Credit Corporation 
     Charter Act (15 U.S.C. 714 et seq.), or any other Act;'';
       (B) by striking subparagraphs (C) and (D) and inserting the 
     following:
       ``(C) an indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.);
       ``(D) a disaster payment; or'';
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(3) during the crop year--
       ``(A) a payment made pursuant to a contract entered into 
     under the environmental quality incentives program under 
     chapter 4 of subtitle D of title XII of the Food Security Act 
     of 1985 (16 U.S.C. 3839aa et seq.);
       ``(B) a payment under any other provision of subtitle D of 
     title XII of that Act (16 U.S.C. 3830 et seq.);
       ``(C) a payment under section 401 or 402 of the 
     Agricultural Credit Act of 1978 (16 U.S.C. 2201, 2202); or
       ``(D) a payment, loan, or other assistance under section 3 
     or 8 of the Watershed Protection and Flood Prevention Act (16 
     U.S.C. 1003 and 1006a).''.

                  Subtitle C--Animal Health Protection

     SEC. 1021. SHORT TITLE.

       This subtitle may be cited as the ``Animal Health 
     Protection Act''.

     SEC. 1022. FINDINGS.

       Congress finds that--
       (1) the prevention, detection, control, and eradication of 
     diseases and pests of animals are essential to protect--
       (A) animal health;
       (B) the health and welfare of the people of the United 
     States;
       (C) the economic interests of the livestock and related 
     industries of the United States;
       (D) the environment of the United States; and
       (E) interstate commerce and foreign commerce of the United 
     States in animals and other articles;
       (2) animal diseases and pests are primarily transmitted by 
     animals and articles regulated under this subtitle;

[[Page S1115]]

       (3) the health of animals is affected by the methods by 
     which animals and articles are transported in interstate 
     commerce and foreign commerce;
       (4) the Secretary must continue to conduct research on 
     animal diseases and pests that constitute a threat to the 
     livestock of the United States; and
       (5)(A) all animals and articles regulated under this 
     subtitle are in or affect interstate commerce or foreign 
     commerce; and
       (B) regulation by the Secretary and cooperation by the 
     Secretary with foreign countries, States or other 
     jurisdictions, or persons are necessary--
       (i) to prevent and eliminate burdens on interstate commerce 
     and foreign commerce;
       (ii) to regulate effectively interstate commerce and 
     foreign commerce; and
       (iii) to protect the agriculture, environment, economy, and 
     health and welfare of the people of the United States.

     SEC. 1023. DEFINITIONS.

       In this subtitle:
       (1) Animal.--The term ``animal'' means any member of the 
     animal kingdom (except a human).
       (2) Article.--The term ``article'' means any pest or 
     disease or any material or tangible object that could harbor 
     a pest or disease.
       (3) Disease.--The term ``disease'' means--
       (A) any infectious or noninfectious disease or condition 
     affecting the health of livestock; or
       (B) any condition detrimental to production of livestock.
       (4) Enter.--The term ``enter'' means to move into the 
     commerce of the United States.
       (5) Export.--The term ``export'' means to move from a place 
     within the territorial limits of the United States to a place 
     outside the territorial limits of the United States.
       (6) Facility.--The term ``facility'' means any structure.
       (7) Import.--The term ``import'' means to move from a place 
     outside the territorial limits of the United States to a 
     place within the territorial limits of the United States.
       (8) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (9) Interstate commerce.--The term ``interstate commerce'' 
     means trade, traffic, or other commerce--
       (A) between a place in a State and a place in another 
     State, or between places within the same State but through 
     any place outside that State; or
       (B) within the District of Columbia or any territory or 
     possession of the United States.
       (10) Livestock.--The term ``livestock'' means all farm-
     raised animals.
       (11) Means of conveyance.--The term ``means of conveyance'' 
     means any personal property used for or intended for use for 
     the movement of any other personal property.
       (12) Move.--The term ``move'' means--
       (A) to carry, enter, import, mail, ship, or transport;
       (B) to aid, abet, cause, or induce carrying, entering, 
     importing, mailing, shipping, or transporting;
       (C) to offer to carry, enter, import, mail, ship, or 
     transport;
       (D) to receive in order to carry, enter, import, mail, 
     ship, or transport;
       (E) to release into the environment; or
       (F) to allow any of the activities described in this 
     paragraph.
       (13) Pest.--The term ``pest'' means any of the following 
     that can directly or indirectly injure, cause damage to, or 
     cause disease in livestock:
       (A) A protozoan.
       (B) A plant.
       (C) A bacteria.
       (D) A fungus.
       (E) A virus or viroid.
       (F) An infectious agent or other pathogen.
       (G) An arthropod.
       (H) A parasite.
       (I) A prion.
       (J) A vector.
       (K) An animal.
       (L) Any organism similar to or allied with any of the 
     organisms described in this paragraph.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) State.--The term ``State'' means any of the States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     Guam, the Commonwealth of the Northern Mariana Islands, the 
     Virgin Islands of the United States, or any territory or 
     possession of the United States.
       (16) This subtitle.--Except when used in this section, the 
     term ``this subtitle'' includes any regulation or order 
     issued by the Secretary under the authority of this subtitle.
       (17) United states.--The term ``United States'' means all 
     of the States.

     SEC. 1024. RESTRICTION ON IMPORTATION OR ENTRY.

       (a) In General.--The Secretary may prohibit or restrict--
       (1) the importation or entry of any animal, article, or 
     means of conveyance, or use of any means of conveyance or 
     facility, if the Secretary determines that the prohibition or 
     restriction is necessary to prevent the introduction into or 
     dissemination within the United States of any pest or disease 
     of livestock;
       (2) the further movement of any animal that has strayed 
     into the United States if the Secretary determines that the 
     prohibition or restriction is necessary to prevent the 
     introduction into or dissemination within the United States 
     of any pest or disease of livestock; and
       (3) the use of any means of conveyance in connection with 
     the importation or entry of livestock if the Secretary 
     determines that the prohibition or restriction is necessary 
     because the means of conveyance has not been maintained in a 
     clean and sanitary condition or does not have accommodations 
     for the safe and proper movement of livestock.
       (b) Regulations.--The Secretary may promulgate regulations 
     requiring that any animal imported or entered be raised or 
     handled under post-importation quarantine conditions by or 
     under the supervision of the Secretary for the purpose of 
     determining whether the animal is or may be affected by any 
     pest or disease of livestock.
       (c) Destruction or Removal.--
       (1) In general.--The Secretary may order the destruction or 
     removal from the United States of--
       (A) any animal, article, or means of conveyance that has 
     been imported but has not entered the United States if the 
     Secretary determines that destruction or removal from the 
     United States is necessary to prevent the introduction into 
     or dissemination within the United States of any pest or 
     disease of livestock;
       (B) any animal or progeny of any animal, article, or means 
     of conveyance that has been imported or entered in violation 
     of this subtitle; or
       (C) any animal that has strayed into the United States if 
     the Secretary determines that destruction or removal from the 
     United States is necessary to prevent the introduction into 
     or dissemination within the United States of any pest or 
     disease of livestock.
       (2) Requirements of owners.--
       (A) Orders to disinfect.--The Secretary may require the 
     disinfection of--
       (i) a means of conveyance used in connection with the 
     importation of an animal;
       (ii) an individual involved in the importation of an animal 
     and personal articles of the individual; and
       (iii) any article used in the importation of an animal.
       (B) Failure to comply with orders.--If an owner fails to 
     comply with an order of the Secretary under this section, the 
     Secretary may--
       (i) take remedial action, destroy, or remove from the 
     United States the animal or progeny of any animal, article, 
     or means of conveyance as authorized under paragraph (1); and
       (ii) recover from the owner the costs of any care, 
     handling, disposal, or other action incurred by the Secretary 
     in connection with the remedial action, destruction, or 
     removal.

     SEC. 1025. EXPORTATION.

       (a) In General.--The Secretary may prohibit or restrict--
       (1) the exportation of any animal, article, or means of 
     conveyance if the Secretary determines that the prohibition 
     or restriction is necessary to prevent the dissemination from 
     or within the United States of any pest or disease of 
     livestock;
       (2) the exportation of any livestock if the Secretary 
     determines that the livestock is unfit to be moved;
       (3) the use of any means of conveyance or facility in 
     connection with the exportation of any animal or article if 
     the Secretary determines that the prohibition or restriction 
     is necessary to prevent the dissemination from or within the 
     United States of any pest or disease of livestock; or
       (4) the use of any means of conveyance in connection with 
     the exportation of livestock if the Secretary determines that 
     the prohibition or restriction is necessary because the means 
     of conveyance has not been maintained in a clean and sanitary 
     condition or does not have accommodations for the safe and 
     proper movement and humane treatment of livestock.
       (b) Requirements of Owners.--
       (1) Orders to disinfect.--The Secretary may require the 
     disinfection of--
       (A) a means of conveyance used in connection with the 
     exportation of an animal;
       (B) an individual involved in the exportation of an animal 
     and personal articles of the individual; and
       (C) any article used in the exportation of an animal.
       (2) Failure to comply with orders.--If an owner fails to 
     comply with an order of the Secretary under this section, the 
     Secretary may--
       (A) take remedial action with respect to the animal, 
     article, or means of conveyance referred to in paragraph (1); 
     and
       (B) recover from the owner the costs of any care, handling, 
     disposal, or other action incurred by the Secretary in 
     connection with the remedial action.
       (c) Certification.--The Secretary may certify the 
     classification, quality, quantity, condition, processing, 
     handling, or storage of any animal or article intended for 
     export.

     SEC. 1026. INTERSTATE MOVEMENT.

       The Secretary may prohibit or restrict--
       (1) the movement in interstate commerce of any animal, 
     article, or means of conveyance if the Secretary determines 
     that the prohibition or restriction is necessary to prevent 
     the introduction or dissemination of any pest or disease of 
     livestock; and
       (2) the use of any means of conveyance or facility in 
     connection with the movement in interstate commerce of any 
     animal or article if the Secretary determines that the 
     prohibition or restriction is necessary to prevent the 
     introduction or dissemination of any pest or disease of 
     livestock.

     SEC. 1027. SEIZURE, QUARANTINE, AND DISPOSAL.

       (a) In General.--The Secretary may hold, seize, quarantine, 
     treat, destroy, dispose of, or take other remedial action 
     with respect to--
       (1) any animal or progeny of any animal, article, or means 
     of conveyance that--
       (A) is moving or has been moved in interstate commerce or 
     has been imported and entered; and
       (B) the Secretary has reason to believe may carry, may have 
     carried, or may have been affected with or exposed to any 
     pest or disease of livestock at the time of movement or that 
     is otherwise in violation of this subtitle;

[[Page S1116]]

       (2) any animal or progeny of any animal, article, or means 
     of conveyance that is moving or is being handled, or has 
     moved or has been handled, in interstate commerce in 
     violation of this subtitle;
       (3) any animal or progeny of any animal, article, or means 
     of conveyance that has been imported, and is moving or is 
     being handled or has moved or has been handled, in violation 
     of this subtitle; or
       (4) any animal or progeny of any animal, article, or means 
     of conveyance that the Secretary finds is not being 
     maintained, or has not been maintained, in accordance with 
     any post-importation quarantine, post-importation condition, 
     post-movement quarantine, or post-movement condition in 
     accordance with this subtitle.
       (b) Extraordinary Emergencies.--
       (1) In general.--Subject to paragraph (2), if the Secretary 
     determines that an extraordinary emergency exists because of 
     the presence in the United States of a pest or disease of 
     livestock and that the presence of the pest or disease 
     threatens the livestock of the United States, the Secretary 
     may--
       (A) hold, seize, treat, apply other remedial actions to, 
     destroy (including preventative slaughter), or otherwise 
     dispose of, any animal, article, facility, or means of 
     conveyance if the Secretary determines the action is 
     necessary to prevent the dissemination of the pest or 
     disease; and
       (B) prohibit or restrict the movement or use within a 
     State, or any portion of a State of any animal or article, 
     means of conveyance, or facility if the Secretary determines 
     that the prohibition or restriction is necessary to prevent 
     the dissemination of the pest or disease.
       (2) State action.--
       (A) In general.--The Secretary may take action in a State 
     under this subsection only on finding that measures being 
     taken by the State are inadequate to control or eradicate the 
     pest or disease, after review and consultation with--
       ``(i) the Governor or an appropriate animal health official 
     of the State; or
       ``(ii) in the case of any animal, article, facility, or 
     means of conveyance under the jurisdiction of an Indian 
     tribe, the head of the Indian tribe.
       (B) Notice.--Subject to subparagraph (C), before any action 
     is taken in a State under subparagraph (A), the Secretary 
     shall--
       (i) notify the Governor, an appropriate animal health 
     official of the State, or head of the Indian tribe of the 
     proposed action;
       (ii) issue a public announcement of the proposed action; 
     and
       (iii) publish in the Federal Register--

       (I) the findings of the Secretary;
       (II) a description of the proposed action; and
       (III) a statement of the reasons for the proposed action.

       (C) Notice after action.--If it is not practicable to 
     publish in the Federal Register the information required 
     under subparagraph (B)(iii) before taking action under 
     subparagraph (A), the Secretary shall publish the information 
     as soon as practicable, but not later than 10 business days, 
     after commencement of the action.
       (c) Quarantine, Disposal, or Other Remedial Action.--
       (1) In general.--The Secretary, in writing, may order the 
     owner of any animal, article, facility, or means of 
     conveyance referred to in subsection (a) or (b) to maintain 
     in quarantine, dispose of, or take other remedial action with 
     respect to the animal, article, facility, or means of 
     conveyance, in a manner determined by the Secretary.
       (2) Failure to comply with orders.--If the owner fails to 
     comply with the order of the Secretary, the Secretary may--
       (A) seize, quarantine, dispose of, or take other remedial 
     action with respect to the animal, article, facility, or 
     means of conveyance under subsection (a) or (b); and
       (B) recover from the owner the costs of any care, handling, 
     disposal, or other remedial action incurred by the Secretary 
     in connection with the seizure, quarantine, disposal, or 
     other remedial action.
       (d) Compensation.--
       (1) In general.--Except as provided in paragraph (3), the 
     Secretary shall compensate the owner of any animal, article, 
     facility, or means of conveyance that the Secretary requires 
     to be destroyed under this section.
       (2) Amount.--
       (A) In general.--Subject to subparagraphs (B) and (C), the 
     compensation shall be based on the fair market value, as 
     determined by the Secretary, of the destroyed animal, 
     article, facility, or means of conveyance.
       (B) Limitation.--Compensation paid any owner under this 
     subsection shall not exceed the difference between--
       (i) the fair market value of the destroyed animal, article, 
     facility, or means of conveyance; and
       (ii) any compensation received by the owner from a State or 
     other source for the destroyed animal, article, facility, or 
     means of conveyance.
       (C) Reviewability of determination.--The determination by 
     the Secretary of the amount to be paid under this subsection 
     shall be final and not subject to judicial review.
       (3) Exceptions.--No payment shall be made by the Secretary 
     under this subsection for--
       (A) any animal, article, facility, or means of conveyance 
     that has been moved or handled by the owner in violation of 
     an agreement for the control and eradication of diseases or 
     pests or in violation of this subtitle;
       (B) any progeny of any animal or article, which animal or 
     article has been moved or handled by the owner of the animal 
     or article in violation of this subtitle;
       (C) any animal, article, or means of conveyance that is 
     refused entry under this subtitle; or
       (D) any animal, article, facility, or means of conveyance 
     that becomes or has become affected with or exposed to any 
     pest or disease of livestock because of a violation of an 
     agreement for the control and eradication of diseases or 
     pests or a violation of this subtitle by the owner.

     SEC. 1028. INSPECTIONS, SEIZURES, AND WARRANTS.

       (a) Guidelines.--The activities authorized by this section 
     shall be carried out consistent with guidelines approved by 
     the Attorney General.
       (b) Warrantless Inspections.--The Secretary may stop and 
     inspect, without a warrant, any person or means of conveyance 
     moving--
       (1) into the United States, to determine whether the person 
     or means of conveyance is carrying any animal or article 
     regulated under this subtitle;
       (2) in interstate commerce, on probable cause to believe 
     that the person or means of conveyance is carrying any animal 
     or article regulated under this subtitle; or
       (3) in intrastate commerce from any State, or any portion 
     of a State, quarantined under section 1027(b), on probable 
     cause to believe that the person or means of conveyance is 
     carrying any animal or article quarantined under section 
     1027(b).
       (c) Inspections With Warrants.--
       (1) In general.--The Secretary may enter, with a warrant, 
     any premises in the United States for the purpose of making 
     inspections and seizures under this subtitle.
       (2) Application and issuance of warrants.--
       (A) In general.--On proper oath or affirmation showing 
     probable cause to believe that there is on certain premises 
     any animal, article, facility, or means of conveyance 
     regulated under this subtitle, a United States judge, a judge 
     of a court of record in the United States, or a United States 
     magistrate judge may issue a warrant for the entry on 
     premises within the jurisdiction of the judge or magistrate 
     to make any inspection or seizure under this subtitle.
       (B) Execution.--The warrant may be applied for and executed 
     by the Secretary or any United States marshal.

     SEC. 1029. DETECTION, CONTROL, AND ERADICATION OF DISEASES 
                   AND PESTS.

       (a) In General.--The Secretary may carry out operations and 
     measures to detect, control, or eradicate any pest or disease 
     of livestock (including the drawing of blood and diagnostic 
     testing of animals), including animals at a slaughterhouse, 
     stockyard, or other point of concentration.
       (b) Compensation.--The Secretary may pay a claim arising 
     out of the destruction of any animal, article, or means of 
     conveyance consistent with the purposes of this subtitle.

     SEC. 1030. VETERINARY ACCREDITATION PROGRAM.

       (a) In General.--The Secretary may establish a veterinary 
     accreditation program that is consistent with this subtitle, 
     including the establishment of standards of conduct for 
     accredited veterinarians.
       (b) Consultation.--The Secretary shall consult with State 
     animal health officials regarding the establishment of the 
     veterinary accreditation program.

     SEC. 1031. COOPERATION.

       (a) In General.--To carry out this subtitle, the Secretary 
     may cooperate with other Federal agencies, States or 
     political subdivisions of States, national governments of 
     foreign countries, local governments of foreign countries, 
     domestic or international organizations, domestic or 
     international associations, Indian tribes, and other persons.
       (b) Responsibility.--The person or other entity cooperating 
     with the Secretary shall be responsible for the authority 
     necessary to carry out operations or measures--
       (1) on all land and property within a foreign country or 
     State, or under the jurisdiction of an Indian tribe, other 
     than on land and property owned or controlled by the United 
     States; and
       (2) using other facilities and means, as determined by the 
     Secretary.
       (c) Screwworms.--
       (1) In general.--The Secretary may, independently or in 
     cooperation with national governments of foreign countries or 
     international organizations or associations, produce and sell 
     sterile screwworms to any national government of a foreign 
     country or international organization or association, if the 
     Secretary determines that the livestock industry and related 
     industries of the United States will not be adversely 
     affected by the production and sale.
       (2) Proceeds.--
       (A) Independent production and sale.--If the Secretary 
     independently produces and sells sterile screwworms under 
     paragraph (1), the proceeds of the sale shall be--
       (i) deposited into the Treasury of the United States; and
       (ii) credited to the account from which the operating 
     expenses of the facility producing the sterile screwworms 
     have been paid.
       (B) Cooperative production and sale.--
       (i) In general.--If the Secretary cooperates to produce and 
     sell sterile screwworms under paragraph (1), the proceeds of 
     the sale shall be divided between the United States and the 
     cooperating national government or international organization 
     or association in a manner determined by the Secretary.
       (ii) Account.--The United States portion of the proceeds 
     shall be--

       (I) deposited into the Treasury of the United States; and
       (II) credited to the account from which the operating 
     expenses of the facility producing the sterile screwworms 
     have been paid.

       (d) Cooperation in Program Administration.--The Secretary 
     may cooperate with State authorities, Indian tribe 
     authorities, or other persons in the administration of 
     regulations for the improvement of livestock and livestock 
     products.
       (e) Consultation With Other Federal Agencies.--

[[Page S1117]]

       (1) In general.--The Secretary shall consult with the head 
     of a Federal agency with respect to any activity that is 
     under the jurisdiction of the Federal agency.
       (2) Lead agency.--The Department of Agriculture shall be 
     the lead agency with respect to issues related to pests and 
     diseases of livestock.

     SEC. 1032. REIMBURSABLE AGREEMENTS.

       (a) Authority To Enter Into Agreements.--The Secretary may 
     enter into reimbursable fee agreements with persons for 
     preclearance of animals or articles at locations outside the 
     United States for movement into the United States.
       (b) Funds Collected for Preclearance.--Funds collected for 
     preclearance activities shall--
       (1) be credited to accounts that may be established by the 
     Secretary for carrying out this section; and
       (2) remain available until expended for the preclearance 
     activities, without fiscal year limitation.
       (c) Payment of Employees.--
       (1) In general.--Notwithstanding any other law, the 
     Secretary may pay an officer or employee of the Department of 
     Agriculture performing services under this subtitle relating 
     to imports into and exports from the United States for all 
     overtime, night, or holiday work performed by the officer or 
     employee at a rate of pay determined by the Secretary.
       (2) Reimbursement.--
       (A) In general.--The Secretary may require a person for 
     whom the services are performed to reimburse the Secretary 
     for any expenses paid by the Secretary for the services under 
     this subsection.
       (B) Use of funds.--All funds collected under this 
     subsection shall--
       (i) be credited to the account that incurs the costs; and
       (ii) remain available until expended, without fiscal year 
     limitation.
       (d) Late Payment Penalties.--
       (1) Collection.--On failure by a person to reimburse the 
     Secretary in accordance with this section, the Secretary may 
     assess a late payment penalty against the person, including 
     interest on overdue funds, as required by section 3717 of 
     title 31, United States Code.
       (2) Use of funds.--Any late payment penalty and any accrued 
     interest shall--
       (A) be credited to the account that incurs the costs; and
       (B) remain available until expended, without fiscal year 
     limitation.

     SEC. 1033. ADMINISTRATION AND CLAIMS.

       (a) Administration.--To carry out this subtitle, the 
     Secretary may--
       (1) acquire and maintain real or personal property;
       (2) employ a person;
       (3) make a grant; and
       (4) notwithstanding chapter 63 of title 31, United States 
     Code, enter into a contract, cooperative agreement, 
     memorandum of understanding, or other agreement.
       (b) Tort Claims.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary may pay a tort claim, in the manner authorized by 
     the first paragraph of section 2672 of title 28, United 
     States Code, if the claim arises outside the United States in 
     connection with an activity authorized under this subtitle.
       (2) Requirements.--A claim may not be allowed under this 
     subsection unless the claim is presented in writing to the 
     Secretary not later than 2 years after the date on which the 
     claim arises.

     SEC. 1034. PENALTIES.

       (a) Criminal Penalties.--Any person that knowingly violates 
     this subtitle, or that knowingly forges, counterfeits, or, 
     without authority from the Secretary, uses, alters, defaces, 
     or destroys any certificate, permit, or other document 
     provided under this subtitle shall be guilty of a 
     misdemeanor, and, on conviction, shall be fined in accordance 
     with title 18, United States Code, imprisoned not more than 1 
     year, or both.
       (b) Civil Penalties.--
       (1) In general.--Any person that violates this subtitle, or 
     that forges, counterfeits, or, without authority from the 
     Secretary, uses, alters, defaces, or destroys any 
     certificate, permit, or other document provided under this 
     subtitle may, after notice and opportunity for a hearing on 
     the record, be assessed a civil penalty by the Secretary that 
     does not exceed the greater of--
       (A)(i) $50,000 in the case of any individual, except that 
     the civil penalty may not exceed $1,000 in the case of an 
     initial violation of this subtitle by an individual moving 
     regulated articles not for monetary gain;
       (ii) $250,000 in the case of any other person for each 
     violation; and
       (iii) $500,000 for all violations adjudicated in a single 
     proceeding; or
       (B) twice the gross gain or gross loss for any violation or 
     forgery, counterfeiting, or unauthorized use, alteration, 
     defacing or destruction of a certificate, permit, or other 
     document provided under this subtitle that results in the 
     person's deriving pecuniary gain or causing pecuniary loss to 
     another person.
       (2) Factors in determining civil penalty.--In determining 
     the amount of a civil penalty, the Secretary shall take into 
     account the nature, circumstance, extent, and gravity of the 
     violation or violations and the Secretary may consider, with 
     respect to the violator--
       (A) the ability to pay;
       (B) the effect on ability to continue to do business;
       (C) any history of prior violations;
       (D) the degree of culpability; and
       (E) such other factors as the Secretary considers to be 
     appropriate.
       (3) Settlement of civil penalties.--The Secretary may 
     compromise, modify, or remit, with or without conditions, any 
     civil penalty that may be assessed under this subsection.
       (4) Finality of orders.--
       (A) Final order.--The order of the Secretary assessing a 
     civil penalty shall be treated as a final order reviewable 
     under chapter 158 of title 28, United States Code.
       (B) Review.--The validity of the order of the Secretary may 
     not be reviewed in an action to collect the civil penalty.
       (C) Interest.--Any civil penalty not paid in full when due 
     under an order assessing the civil penalty shall thereafter 
     accrue interest until paid at the rate of interest applicable 
     to civil judgments of the courts of the United States.
       (c) Suspension or Revocation of Accreditation.--
       (1) In general.--The Secretary may, after notice and 
     opportunity for a hearing on the record, suspend or revoke 
     the accreditation of any veterinarian accredited under this 
     subtitle that violates this subtitle.
       (2) Final order.--The order of the Secretary suspending or 
     revoking accreditation shall be treated as a final order 
     reviewable under chapter 158 of title 28, United States Code.
       (3) Summary suspension.--
       (A) In general.--Notwithstanding paragraph (1), the 
     Secretary may summarily suspend the accreditation of a 
     veterinarian who the Secretary has reason to believe has 
     violated this subtitle.
       (B) Hearings.--The Secretary shall provide the accredited 
     veterinarian with a subsequent notice and an opportunity for 
     a prompt post-suspension hearing on the record.
       (d) Liability for Acts of Agents.--In the construction and 
     enforcement of this subtitle, the act, omission, or failure 
     of any officer, agent, or person acting for or employed by 
     any other person within the scope of the employment or office 
     of the officer, agent, or person, shall be deemed also to be 
     the act, omission, or failure of the other person.
       (e) Guidelines for Civil Penalties.--The Secretary shall 
     coordinate with the Attorney General to establish  guidelines 
     to determine under what circumstances the Secretary may 
     issue a civil penalty or suitable notice of warning in 
     lieu of prosecution by the Attorney General of a violation 
     of this subtitle.

     SEC. 1035. ENFORCEMENT.

       (a) Collection of Information.--
       (1) In general.--The Secretary may gather and compile 
     information and conduct any inspection or investigation that 
     the Secretary considers to be necessary for the 
     administration or enforcement of this subtitle.
       (2) Subpoenas.--
       (A) In general.--The Secretary shall have power to issue a 
     subpoena to compel the attendance and testimony of any 
     witness and the production of any documentary evidence 
     relating to the administration or enforcement of this 
     subtitle or any matter under investigation in connection with 
     this subtitle.
       (B) Location of production.--The attendance of any witness 
     and production of documentary evidence relevant to the 
     inquiry may be required from any place in the United States.
       (C) Enforcement.--
       (i) In general.--In case of disobedience to a subpoena by 
     any person, the Secretary may request the Attorney General to 
     invoke the aid of any court of the United States within the 
     jurisdiction in which the investigation is conducted, or 
     where the person resides, is found, transacts business, is 
     licensed to do business, or is incorporated, to require the 
     attendance and testimony of any witness and the production of 
     documentary evidence.
       (ii) Noncompliance.--In case of a refusal to obey a 
     subpoena issued to any person, a court may order the person 
     to appear before the Secretary and give evidence concerning 
     the matter in question or to produce documentary evidence.
       (iii) Contempt.--Any failure to obey the order of the court 
     may be punished by the court as contempt of the court.
       (D) Compensation.--
       (i) Witnesses.--A witness summoned by the Secretary under 
     this subtitle shall be paid the same fees and mileage that 
     are paid to a witness in a court of the United States.
       (ii) Depositions.--A witness whose deposition is taken, and 
     the person taking the deposition, shall be entitled to the 
     same fees that are paid for similar services in a court of 
     the United States.
       (E) Procedures.--
       (i) Publication.--The Secretary shall publish procedures 
     for the issuance of subpoenas under this section.
       (ii) Review.--The procedures shall include a requirement 
     that subpoenas be reviewed for legal sufficiency and, to be 
     effective, be signed by the Secretary.
       (iii) Delegation.--If the authority to sign a subpoena is 
     delegated to an agency other than the Office of 
     Administrative Law Judges, the agency receiving the 
     delegation shall seek review of the subpoena for legal 
     sufficiency outside that agency.
       (b) Authority of Attorney General.--The Attorney General 
     may--
       (1) prosecute, in the name of the United States, all 
     criminal violations of this subtitle that are referred to the 
     Attorney General by the Secretary or are brought to the 
     notice of the Attorney General by any person;
       (2) bring an action to enjoin the violation of or to compel 
     compliance with this subtitle, or to enjoin any interference 
     by any person with the Secretary in carrying out this 
     subtitle, in any case in which the Secretary has reason to 
     believe that the person has violated, or is about to violate 
     this subtitle or has interfered, or is about to interfere, 
     with the actions of the Secretary; or
       (3) bring an action for the recovery of any unpaid civil 
     penalty, funds under a reimbursable agreement, late payment 
     penalty, or interest assessed under this subtitle.

[[Page S1118]]

       (c) Court Jurisdiction.--
       (1) In general.--The United States district courts, the 
     District Court of Guam, the District Court of the Northern 
     Mariana Islands, the District Court of the Virgin Islands, 
     the highest court of American Samoa, and the United States 
     courts of the other territories and possessions are vested 
     with jurisdiction in all cases arising under this subtitle.
       (2) Venue.--Any action arising under this subtitle may be 
     brought, and process may be served, in the judicial district 
     where a violation or interference occurred or is about to 
     occur, or where the person charged with the violation, 
     interference, impending violation, impending interference, or 
     failure to pay resides, is found, transacts business, is 
     licensed to do business, or is incorporated.
       (3) Exception.--Paragraphs (1) and (2) do not apply to 
     subsections (b) and (c) of section 1034.

     SEC. 1036. REGULATIONS AND ORDERS.

       The Secretary may promulgate such regulations, and issue 
     such orders, as the Secretary determines necessary to carry 
     out this subtitle.

     SEC. 1037. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this subtitle.
       (b) Transfer of Funds.--
       (1) In general.--In connection with an emergency under 
     which a pest or disease of livestock threatens any segment of 
     agricultural production in the United States, the Secretary 
     may transfer from other appropriations or funds available to 
     the agencies or corporations of the Department of Agriculture 
     such funds as the Secretary determines are necessary for the 
     arrest, control, eradication, or prevention of the spread of 
     the pest or disease of livestock and for related expenses.
       (2) Availability.--Any funds transferred under this 
     subsection shall remain available until expended, without 
     fiscal year limitation.
       (c) Use of Funds.--In carrying out this subtitle, the 
     Secretary may use funds made available to carry out this 
     subtitle for--
       (1) printing and binding, without regard to section 501 of 
     title 44, United States Code;
       (2) the employment of civilian nationals in foreign 
     countries; and
       (3) the construction and operation of research 
     laboratories, quarantine stations, and other buildings and 
     facilities for special purposes.

     SEC. 1038. REPEALS AND CONFORMING AMENDMENTS.

       (a) Repeals.--The following provisions of law are repealed:
       (1) Public Law 97-46 (7 U.S.C. 147b).
       (2) Section 101(b) of the Act of September 21, 1944 (7 
     U.S.C. 429).
       (3) The Act of August 28, 1950 (7 U.S.C. 2260).
       (4) Section 919 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 2260a).
       (5) Section 306 of the Tariff Act of 1930 (19 U.S.C. 1306).
       (6) Sections 6 through 8 and 10 of the Act of August 30, 
     1890 (21 U.S.C. 102 through 105).
       (7) The Act of February 2, 1903 (21 U.S.C. 111, 120 through 
     122).
       (8) Sections 2 through 9, 11, and 13 of the Act of May 29, 
     1884 (21 U.S.C. 112, 113, 114, 114a, 114a-1, 115 through 120, 
     130).
       (9) The first section and sections 2, 3, and 5 of the Act 
     of February 28, 1947 (21 U.S.C. 114b, 114c, 114d, 114d-1).
       (10) The Act of June 16, 1948 (21 U.S.C. 114e, 114f).
       (11) Public Law 87-209 (21 U.S.C. 114g, 114h).
       (12) Section 2506 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (21 U.S.C. 114i).
       (13) The third and fourth provisos of the fourth paragraph 
     under the heading ``bureau of animal industry'' of the Act of 
     May 31, 1920 (21 U.S.C. 116).
       (14) The first section and sections 2, 3, 4, and 6 of the 
     Act of March 3, 1905 (21 U.S.C. 123 through 127).
       (15) The first proviso under the heading ``General 
     expenses, Bureau of Animal Industry'' under the heading 
     ``BUREAU OF ANIMAL INDUSTRY'' of the Act of June 30, 1914 (21 
     U.S.C. 128).
       (16) The fourth proviso under the heading ``salaries and 
     expenses'' under the heading ``Animal and Plant Health 
     Inspection Service'' of title I of the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2001 (21 U.S.C. 129).
       (17) The third paragraph under the heading 
     ``MISCELLANEOUS'' of the Act of May 26, 1910 (21 U.S.C. 131).
       (18) The first section and sections 2 through 6 and 11 
     through 13 of Public Law 87-518 (21 U.S.C. 134 through 134h).
       (19) Public Law 91-239 (21 U.S.C. 135 through 135b).
       (20) Sections 12 through 14 of the Federal Meat Inspection 
     Act (21 U.S.C. 612 through 614).
       (21) Chapter 39 of title 46, United States Code.
       (b) Conforming Amendments.--
       (1) Section 414(b) of the Plant Protection Act (7 U.S.C. 
     7714(b)) is amended--
       (A) in paragraph (1), by striking ``, or the owner's 
     agent,''; and
       (B) in paragraph (2), by striking ``or agent of the owner'' 
     each place it appears.
       (2) Section 423 of the Plant Protection Act (7 U.S.C. 7733) 
     is amended--
       (A) by striking subsection (b) and inserting the following:
       ``(b) Location of Production.--The attendance of any 
     witness and production of documentary evidence relevant to 
     the inquiry may be required from any place in the United 
     States.'';
       (B) in the third sentence of subsection (e), by inserting 
     ``to an agency other than the Office of Administrative Law 
     Judges'' after ``is delegated''; and
       (C) by striking subsection (f).
       (3) Section 11(h) of the Endangered Species Act of 1973 (16 
     U.S.C. 1540(h)) is amended in the first sentence by striking 
     ``animal quarantine laws (21 U.S.C. 101-105, 111-135b, and 
     612-614)'' and inserting ``animal quarantine laws (as defined 
     in section 2509(f) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (21 U.S.C. 136a(f))''.
       (4) Section 18 of the Federal Meat Inspection Act (21 
     U.S.C. 618) is amended by striking ``of the cattle'' and all 
     that follows through ``as herein described'' and inserting 
     ``of the carcasses and products of cattle, sheep, swine, 
     goats, horses, mules, and other equines''.
       (5) Section 2509 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (21 U.S.C. 136a) is amended--
       (A) in subsection (c), by inserting after paragraph (1) the 
     following:
       ``(2) Veterinary diagnostics.--The Secretary may prescribe 
     and collect fees to recover the costs of carrying out the 
     provisions of the Animal Health Protection Act that relate to 
     veterinary diagnostics.''; and
       (B) in subsection (f)(1), by striking subparagraphs (B) 
     through (O) and inserting the following:
       ``(B) section 9 of the Act of August 30, 1890 (21 U.S.C. 
     101);
       ``(C) the Animal Health Protection Act; or
       ``(D) any other Act administered by the Secretary relating 
     to plant or animal diseases or pests.''.
       (c) Effect on Regulations.--A regulation issued under a 
     provision of law repealed by subsection (a) shall remain in 
     effect until the Secretary issues a regulation under section 
     1036 that supersedes the earlier regulation.

                     Subtitle D--General Provisions

     SEC. 1041. FEES FOR PESTICIDES.

       (a) Maintenance Fee.--
       (1) Amounts for registrants.--Section 4(i)(5) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136a-1(i)(5)) is amended--
       (A) in subparagraph (A), by striking ``each year'' and all 
     that follows and inserting ``each year $2,300 for each 
     registration'';
       (B) in subparagraph (D)--
       (i) in clause (i), by striking ``$55,000'' and inserting 
     ``$70,000''; and
       (ii) in clause (ii), by striking ``$95,000'' and inserting 
     ``$120,000''; and
       (C) in subparagraph (E)(i)--
       (i) in subclause (I) by striking ``$38,500'' and inserting 
     ``$46,000''; and
       (ii) in subclause (II), by striking ``$66,500'' and 
     inserting ``$80,000''.
       (2) Total amount of fees.--Section 4(i)(5)(C) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136(a)-1(i)(5)(C)) is amended--
       (A) by striking ``(C)(i) The'' and inserting the following:
       ``(C) Total amount of fees.--The'';
       (B) by striking ``$14,000,000 each fiscal year'' and 
     inserting ``$20,000,000 for the period beginning on January 
     1, 2002, and ending on February 28, 2002''; and
       (C) by striking clause (ii).
       (3) Definition of small business.--Section 4(i)(5)(E)(ii) 
     of the Federal Insecticide, Fungicide, and Rodenticide Act (7 
     U.S.C. 136a-1(i)(5)(E)(ii)) is amended--
       (A) in subclause (I), by striking ``150'' and inserting 
     ``500''; and
       (B) in subclause (II), by striking ``gross revenue from 
     chemicals that did not exceed $40,000,000'' and inserting 
     ``global gross revenue from pesticides that did not exceed 
     $60,000,000''.
       (4) Period of effectiveness.--Section 4(i)(5) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136a-1(i)(5)) is amended by striking subparagraph (H) and 
     inserting the following:
       ``(H) Period of effectiveness.--This paragraph shall be in 
     effect during the period beginning on January 1, 2002, and 
     ending on February 28, 2002.''.
       (b) Other Fees.--Section 4(i)(6) of the Federal 
     Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a-
     1(i)(6)) is amended by striking ``the date of the enactment 
     of this section and ending on September 30, 2001'' and 
     inserting ``January 1, 2002, and ending on February 28, 
     2002''.
       (c) Expedited Processing of Similar Applications.--Section 
     4(k)(3) of the Federal Insecticide, Fungicide, and 
     Rodenticide Act (7 U.S.C. 136a-1(k)(3)) is amended--
       (1) in the paragraph heading, by striking ``Expedited'' and 
     inserting ``Review of inert ingredients; expedited''; and
       (2) in subparagraph (A)--
       (A) by striking ``each of the'' and all that follows 
     through ``such fiscal year'' and inserting ``the period 
     beginning on January 1, 2002, and ending on February 28, 
     2002, \1/7\ of the maintenance fees collected during the 
     period'';
       (B) by redesignating clauses (i), (ii), and (iii) as 
     subclauses (I), (II), and (III), respectively, and adjusting 
     the margins appropriately; and
       (C) by striking ``assure the expedited processing and 
     review of any applicant that'' and inserting the following:
       ``(i) review and evaluate inert ingredients; and
       ``(ii) ensure the expedited processing and review of any 
     application that--''.
       (d) Pesticide Tolerance Processing Fees.--Section 408(m)(1) 
     of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
     346a(m)(1)) is amended--
       (1) by striking ``The Administrator'' and inserting the 
     following:
       ``(A) In general.--The Administrator'';
       (2) by striking ``Under the regulations'' and inserting the 
     following:
       ``(B) Inclusions.--Under the regulations'';

[[Page S1119]]

       (3) by redesignating subparagraphs (A), (B), (C), and (D) 
     as clauses (i), (ii), (iii), and (iv), respectively, and 
     adjusting the margins appropriately;
       (4) by striking ``The regulations may'' and inserting the 
     following:
       ``(C) Waiver; refund.--The regulations may''; and
       (5) by adding at the end the following:
       ``(D) Annual adjustment of fees.--The Administrator may 
     annually promulgate regulations to implement changes in the 
     amounts in the schedule of pesticide tolerance processing 
     fees in effect on the date of enactment of this subparagraph 
     by the same percentage as the annual adjustment to the 
     Federal General Schedule pay scale under section 5303 of 
     title 5, United States Code.
       ``(E) Period of effectiveness.--This paragraph shall be in 
     effect during the period beginning on January 1, 2002, and 
     ending on February 28, 2002.''.

     SEC. 1042. PEST MANAGEMENT IN SCHOOLS.

       (a) Short Title.--This section may be cited as the ``School 
     Environment Protection Act of 2002''.
       (b) Pest Management.--The Federal Insecticide, Fungicide, 
     and Rodenticide Act is amended--
       (1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 
     136y) as sections 34 and 35, respectively; and
       (2) by inserting after section 32 (7 U.S.C. 136w-7) the 
     following:

     ``SEC. 33. PEST MANAGEMENT IN SCHOOLS.

       ``(a) Definitions.--In this section:
       ``(1) Bait.--The term `bait' means a pesticide that 
     contains an ingredient that serves as a feeding stimulant, 
     odor, pheromone, or other attractant for a target pest.
       ``(2) Contact person.--The term `contact person' means an 
     individual who is--
       ``(A) knowledgeable about school pest management plans; and
       ``(B) designated by a local educational agency to carry out 
     implementation of the school pest management plan of a 
     school.
       ``(3) Emergency.--The term `emergency' means an urgent need 
     to mitigate or eliminate a pest that threatens the health or 
     safety of a student or staff member.
       ``(4) Local educational agency.--The term `local 
     educational agency' has the meaning given the term in section 
     3 of the Elementary and Secondary Education Act of 1965.
       ``(5) School.--
       ``(A) In general.--The term `school' means a public--
       ``(i) elementary school (as defined in section 3 of the 
     Elementary and Secondary Education Act of 1965);
       ``(ii) secondary school (as defined in section 3 of that 
     Act);
       ``(iii) kindergarten or nursery school that is part of an 
     elementary school or secondary school; or
       ``(iv) tribally-funded school.
       ``(B) Inclusions.--The term `school' includes any school 
     building, and any area outside of a school building 
     (including a lawn, playground, sports field, and any other 
     property or facility), that is controlled, managed, or owned 
     by the school or school district.
       ``(6) School pest management plan.--The term `school pest 
     management plan' means a pest management plan developed under 
     subsection (b).
       ``(7) Staff member.--
       ``(A) In general.--The term `staff member' means a person 
     employed at a school or local educational agency.
       ``(B) Exclusions.--The term `staff member' does not 
     include--
       ``(i) a person hired by a school, local educational agency, 
     or State to apply a pesticide; or
       ``(ii) a person assisting in the application of a 
     pesticide.
       ``(8) State agency.--The term `State agency' means the an 
     agency of a State, or an agency of an Indian tribe or tribal 
     organization (as those terms are defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)), that exercises primary jurisdiction over 
     matters relating to pesticide regulation.
       ``(9) Universal notification.--The term `universal 
     notification' means notice provided by a local educational 
     agency or school to--
       ``(A) parents, legal guardians, or other persons with legal 
     standing as parents of each child attending the school; and
       ``(B) staff members of the school.
       ``(b) School Pest Management Plans.--
       ``(1) State plans.--
       ``(A) Guidance.--As soon as practicable (but not later than 
     180 days) after the date of enactment of the School 
     Environment Protection Act of 2002, the Administrator shall 
     develop, in accordance with this section--
       ``(i) guidance for a school pest management plan; and
       ``(ii) a sample school pest management plan.
       ``(B) Plan.--As soon as practicable (but not later than 1 
     year) after the date of enactment of the School Environment 
     Protection Act of 2002, each State agency shall develop and 
     submit to the Administrator for approval, as part of the 
     State cooperative agreement under section 23, a school pest 
     management plan for local educational agencies in the State.
       ``(C) Components.--A school pest management plan developed 
     under subparagraph (B) shall, at a minimum--
       ``(i) implement a system that--

       ``(I) eliminates or mitigates health risks, or economic or 
     aesthetic damage, caused by pests;
       ``(II) employs--

       ``(aa) integrated methods;
       ``(bb) site or pest inspection;
       ``(cc) pest population monitoring; and
       ``(dd) an evaluation of the need for pest management; and

       ``(III) is developed taking into consideration pest 
     management alternatives (including sanitation, structural 
     repair, and mechanical, biological, cultural, and pesticide 
     strategies) that minimize health and environmental risks;

       ``(ii) require, for pesticide applications at the school, 
     universal notification to be provided--

       ``(I) at the beginning of the school year;
       ``(II) at the midpoint of the school year; and
       ``(III) at the beginning of any summer session, as 
     determined by the school;

       ``(iii) establish a registry of staff members of a school, 
     and of parents, legal guardians, or other persons with legal 
     standing as parents of each child attending the school, that 
     have requested to be notified in advance of any pesticide 
     application at the school;
       ``(iv) establish guidelines that are consistent with the 
     definition of a school pest management plan under subsection 
     (a);
       ``(v) require that each local educational agency use a 
     certified applicator or a person authorized by the State 
     agency to implement the school pest management plans;
       ``(vi) be consistent with the State cooperative agreement 
     under section 23; and
       ``(vii) require the posting of signs in accordance with 
     paragraph (4)(G).
       ``(D) Approval by administrator.--Not later than 90 days 
     after receiving a school pest management plan submitted by a 
     State agency under subparagraph (B), the Administrator 
     shall--
       ``(i) determine whether the school pest management plan, at 
     a minimum, meets the requirements of subparagraph (C); and
       ``(ii)(I) if the Administrator determines that the school 
     pest management plan meets the requirements, approve the 
     school pest management plan as part of the State cooperative 
     agreement; or
       ``(II) if the Administrator determines that the school pest 
     management plan does not meet the requirements--

       ``(aa) disapprove the school pest management plan;
       ``(bb) provide the State agency with recommendations for 
     and assistance in revising the school pest management plan to 
     meet the requirements; and
       ``(cc) provide a 90-day deadline by which the State agency 
     shall resubmit the revised school pest management plan to 
     obtain approval of the plan, in accordance with the State 
     cooperative agreement.

       ``(E) Distribution of state plan to schools.--On approval 
     of the school pest management plan of a State agency, the 
     State agency shall make the school pest management plan 
     available to each local educational agency in the State.
       ``(F) Exception for existing state plans.--If, on the date 
     of enactment of the School Environment Protection Act of 
     2002, a State has implemented a school pest management plan 
     that, at a minimum, meets the requirements under subparagraph 
     (C) (as determined by the Administrator), the State agency 
     may maintain the school pest management plan and shall not be 
     required to develop a new school pest management plan under 
     subparagraph (B).
       ``(2) Implementation by local educational agencies.--
       ``(A) In general.--Not later than 1 year after the date on 
     which a local educational agency receives a copy of a school 
     pest management plan of a State agency under paragraph 
     (1)(E), the local educational agency shall develop and 
     implement in each of the schools under the jurisdiction of 
     the local educational agency a school pest management plan 
     that meets the standards and requirements under the school 
     pest management plan of the State agency, as determined by 
     the Administrator.
       ``(B) Exception for existing plans.--If, on the date of 
     enactment of the School Environment Protection Act of 2002, a 
     State maintains a school pest management plan that, at a 
     minimum, meets the standards and criteria established under 
     this section (as determined by the Administrator), and a 
     local educational agency in the State has implemented the 
     State school pest management plan, the local educational 
     agency may maintain the school pest management plan and shall 
     not be required to develop and implement a new school pest 
     management plan under subparagraph (A).
       ``(C) Application of pesticides at schools.--A school pest 
     management plan shall prohibit--
       ``(i) the application of a pesticide (other than a 
     pesticide, including a bait, gel or paste, described in 
     paragraph (4)(C)) to any area or room at a school while the 
     area or room is occupied or in use by students or staff 
     members (except students or staff members participating in 
     regular or vocational agricultural instruction involving the 
     use of pesticides); and
       ``(ii) the use by students or staff members of an area or 
     room treated with a pesticide by broadcast spraying, 
     baseboard spraying, tenting, or fogging during--

       ``(I) the period specified on the label of the pesticide 
     during which a treated area or room should remain unoccupied; 
     or
       ``(II) if there is no period specified on the label, the 
     24-hour period beginning at the end of the treatment.

       ``(3) Contact person.--
       ``(A) In general.--Each local educational agency shall 
     designate a contact person to carry out a school pest 
     management plan in schools under the jurisdiction of the 
     local educational agency.
       ``(B) Duties.--The contact person of a local educational 
     agency shall--
       ``(i) maintain information about the scheduling of 
     pesticide applications in each school under the jurisdiction 
     of the local educational agency;
       ``(ii) act as a contact for inquiries, and disseminate 
     information requested by parents or

[[Page S1120]]

     guardians, about the school pest management plan;
       ``(iii) maintain and make available to parents, legal 
     guardians, or other persons with legal standing as parents of 
     each child attending the school, before and during the notice 
     period and after application--

       ``(I) copies of material safety data sheet for pesticides 
     applied at the school, or copies of material safety data 
     sheets for end-use dilutions of pesticides applied at the 
     school, if data sheets are available;
       ``(II) labels and fact sheets approved by the Administrator 
     for all pesticides that may be used by the local educational 
     agency; and
       ``(III) any final official information related to the 
     pesticide, as provided to the local educational agency by the 
     State agency; and

       ``(iv) for each school, maintain all pesticide use data for 
     each pesticide used at the school (other than antimicrobial 
     pesticides (as defined in clauses (i) and (ii) of section 
     2(mm)(1)(A))) for at least 3 years after the date on which 
     the pesticide is applied; and
       ``(v) make that data available for inspection on request by 
     any person.
       ``(4) Notification.--
       ``(A) Universal notification.--At the beginning of each 
     school year, at the midpoint of each school year, and at the 
     beginning of any summer session (as determined by the 
     school), a local educational agency or school shall provide 
     to staff members of a school, and to parents, legal 
     guardians, and other persons with legal standing as parents 
     of students enrolled at the school, a notice describing the 
     school pest management plan that includes--
       ``(i) a summary of the requirements and procedures under 
     the school pest management plan;
       ``(ii) a description of any potential pest problems that 
     the school may experience (including a description of the 
     procedures that may be used to address those problems);
       ``(iii) the address, telephone number, and website address 
     of the Office of Pesticide Programs of the Environmental 
     Protection Agency; and
       ``(iv) the following statement (including information to be 
     supplied by the school as indicated in brackets):
     `As part of a school pest management plan, __________ (insert 
     school name) may use pesticides to control pests. The 
     Environmental Protection Agency (EPA) and __________ (insert 
     name of State agency exercising jurisdiction over pesticide 
     registration and use) registers pesticides for that use. EPA 
     continues to examine registered pesticides to determine that 
     use of the pesticides in accordance with instructions printed 
     on the label does not pose unreasonable risks to human health 
     and the environment. Nevertheless, EPA cannot guarantee that 
     registered pesticides do not pose risks, and unnecessary 
     exposure to pesticides should be avoided. Based in part on 
     recommendations of a 1993 study by the National Academy of 
     Sciences that reviewed registered pesticides and their 
     potential to cause unreasonable adverse effects on human 
     health, particularly on the health of pregnant women, 
     infants, and children, Congress enacted the Food Quality 
     Protection Act of 1996. That law requires EPA to reevaluate 
     all registered pesticides and new pesticides to measure their 
     safety, taking into account the unique exposures and 
     sensitivity that pregnant women, infants, and children may 
     have to pesticides. EPA review under that law is ongoing. You 
     may request to be notified at least 24 hours in advance of 
     pesticide applications to be made and receive information 
     about the applications by registering with the school. 
     Certain pesticides used by the school (including baits, 
     pastes, and gels) are exempt from notification requirements. 
     If you would like more information concerning any pesticide 
     application or any product used at the school, contact 
     __________ (insert name and phone number of contact 
     person).'.
       ``(B) Notification to persons on registry.--
       ``(i) In general.--Except as provided in clause (ii) and 
     paragraph (5)--

       ``(I) notice of an upcoming pesticide application at a 
     school shall be provided to each person on the registry of 
     the school not later than 24 hours before the end of the last 
     business day during which the school is in session that 
     precedes the day on which the application is to be made; and
       ``(II) the application of a pesticide for which a notice is 
     given under subclause (I) shall not commence before the end 
     of the business day.

       ``(ii) Notification concerning pesticides used in 
     curricula.--If pesticides are used as part of a regular 
     vocational agricultural curriculum of the school, a notice 
     containing the information described in subclauses (I), (IV), 
     (VI), and (VII) of clause (iii) for all pesticides that may 
     be used as a part of that curriculum shall be provided to 
     persons on the registry only once at the beginning of each 
     academic term of the school.
       ``(iii) Contents of notice.--A notice under clause (i) 
     shall contain--

       ``(I) the trade name, common name (if applicable), and 
     Environmental Protection Agency registration number of each 
     pesticide to be applied;
       ``(II) a description of each location at the school at 
     which a pesticide is to be applied;
       ``(III) a description of the date and time of application, 
     except that, in the case of an outdoor pesticide application, 
     a notice shall include at least 3 dates, in chronological 
     order, on which the outdoor pesticide application may take 
     place if the preceding date is canceled;
       ``(IV) information that the State agency shall provide to 
     the local educational agency, including a description of 
     potentially acute and chronic effects that may result from 
     exposure to each pesticide to be applied based on--

       ``(aa) a description of potentially acute and chronic 
     effects that may result from exposure to each pesticide to be 
     applied, as stated on the label of the pesticide approved by 
     the Administrator;
       ``(bb) information derived from the material safety data 
     sheet for the end-use dilution of the pesticide to be applied 
     (if available) or the material safety data sheets; and
       ``(cc) final, official information related to the pesticide 
     prepared by the Administrator and provided to the local 
     educational agency by the State agency;

       ``(V) a description of the purpose of the application of 
     the pesticide;
       ``(VI) the address, telephone number, and website address 
     of the Office of Pesticide Programs of the Environmental 
     Protection Agency; and
       ``(VII) the statement described in subparagraph (A)(iv) 
     (other than the ninth sentence of that statement).

       ``(C) Notification and posting exemption.--A notice or 
     posting of a sign under subparagraph (A), (B), or (G) shall 
     not be required for the application at a school of--
       ``(i) an antimicrobial pesticide;
       ``(ii) a bait, gel, or paste that is placed--

       ``(I) out of reach of children or in an area that is not 
     accessible to children; or
       ``(II) in a tamper-resistant or child-resistant container 
     or station; and

       ``(iii) any pesticide that, as of the date of enactment of 
     the School Environment Protection Act of 2002, is exempt from 
     the requirements of this Act under section 25(b) (including 
     regulations promulgated at section 152 of title 40, Code of 
     Federal Regulations (or any successor regulation)).
       ``(D) New staff members and students.--After the beginning 
     of each school year, a local educational agency or school 
     within a local educational agency shall provide each notice 
     required under subparagraph (A) to--
       ``(i) each new staff member who is employed during the 
     school year; and
       ``(ii) the parent or guardian of each new student enrolled 
     during the school year.
       ``(E) Method of notification.--A local educational agency 
     or school may provide a notice under this subsection, using 
     information described in paragraph (4), in the form of--
       ``(i) a written notice sent home with the students and 
     provided to staff members;
       ``(ii) a telephone call;
       ``(iii) direct contact;
       ``(iv) a written notice mailed at least 1 week before the 
     application; or
       ``(v) a notice delivered electronically (such as through 
     electronic mail or facsimile).
       ``(F) Reissuance.--If the date of the application of the 
     pesticide needs to be extended beyond the period required for 
     notice under this paragraph, the school shall issue a notice 
     containing only the new date and location of application.
       ``(G) Posting of signs.--
       ``(i) In general.--Except as provided in paragraph (5)--

       ``(I) a school shall post a sign not later than the last 
     business day during which school is in session preceding the 
     date of application of a pesticide at the school; and
       ``(II) the application for which a sign is posted under 
     subclause (I) shall not commence before the time that is 24 
     hours after the end of the business day on which the sign is 
     posted.

       ``(ii) Location.--A sign shall be posted under clause (i)--

       ``(I) at a central location noticeable to individuals 
     entering the building; and
       ``(II) at the proposed site of application.

       ``(iii) Administration.--A sign required to be posted under 
     clause (i) shall--

       ``(I) remain posted for at least 24 hours after the end of 
     the application;
       ``(II) be--

       ``(aa) at least 8\1/2\ inches by 11 inches for signs posted 
     inside the school; and
       ``(bb) at least 4 inches by 5 inches for signs posted 
     outside the school; and

       ``(III) contain--

       ``(aa) information about the pest problem for which the 
     application is necessary;
       ``(bb) the name of each pesticide to be used;
       ``(cc) the date of application;
       ``(dd) the name and telephone number of the designated 
     contact person; and
       ``(ee) the statement contained in subparagraph (A)(iv).
       ``(iv) Outdoor pesticide applications.--

       ``(I) In general.--In the case of an outdoor pesticide 
     application at a school, each sign shall include at least 3 
     dates, in chronological order, on which the outdoor pesticide 
     application may take place if the preceding date is canceled.
       ``(II) Duration of posting.--A sign described in subclause 
     (I) shall be posted after an outdoor pesticide application in 
     accordance with clauses (ii) and (iii).

       ``(5) Emergencies.--
       ``(A) In general.--A school may apply a pesticide at the 
     school without complying with this part in an emergency, 
     subject to subparagraph (B).
       ``(B) Subsequent notification of parents, guardians, and 
     staff members.--Not later than the earlier of the time that 
     is 24 hours after a school applies a pesticide under this 
     paragraph or on the morning of the next business day, the 
     school shall provide to each parent or guardian of a student 
     listed on the registry, a staff member listed on the 
     registry, and the designated contact person, notice of the 
     application of the pesticide in an emergency that includes--
       ``(i) the information required for a notice under paragraph 
     (4)(G); and
       ``(ii) a description of the problem and the factors that 
     required the application of the pesticide to avoid a threat 
     to the health or safety of a student or staff member.
       ``(C) Method of notification.--The school may provide the 
     notice required by paragraph (B) by any method of 
     notification described in paragraph (4)(E).
       ``(D) Posting of signs.--Immediately after the application 
     of a pesticide under this paragraph, a school shall post a 
     sign warning of the

[[Page S1121]]

     pesticide application in accordance with clauses (ii) through 
     (iv) of paragraph (4)(B).
       ``(c) Relationship to State and Local Requirements.--
     Nothing in this section (including regulations promulgated 
     under this section)--
       ``(1) precludes a State or political subdivision of a State 
     from imposing on local educational agencies and schools any 
     requirement under State or local law (including regulations) 
     that is more stringent than the requirements imposed under 
     this section; or
       ``(2) establishes any exception under, or affects in any 
     other way, section 24(b).
       ``(d) Exclusion of Certain Pest Management Activities.--
     Nothing in this section (including regulations promulgated 
     under this section) applies to a pest management activity 
     that is conducted--
       ``(1) on or adjacent to a school; and
       ``(2) by, or at the direction of, a State or local agency 
     other than a local educational agency.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (c) Conforming Amendment.--The table of contents in section 
     1(b) of the Federal Insecticide, Fungicide, and Rodenticide 
     Act (7 U.S.C. prec. 121) is amended by striking the items 
     relating to sections 30 through 32 and inserting the 
     following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
              and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
``(a) In general.
``(b)(1) Minor use pesticide data.
``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Pest management in schools.
``(a) Definitions.
  ``(1) Bait.
  ``(2) Contact person.
  ``(3) Emergency.
  ``(4) Local educational agency.
  ``(5) School.
  ``(6) Staff member.
  ``(7) State agency.
  ``(8) Universal notification.
``(b) School pest management plans.
  ``(1) State plans.
  ``(2) Implementation by local educational agencies.
  ``(3) Contact person.
  ``(4) Notification.
  ``(5) Emergencies.
``(c) Relationship to State and local requirements.
``(d) Exclusion of certain pest management activities.
``(e) Authorization of appropriations.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.

       (d) Effective Date.--This section and the amendments made 
     by this section take effect on October 1, 2002.

     SEC. 1043. PROHIBITION ON PACKERS OWNING, FEEDING, OR 
                   CONTROLLING LIVESTOCK.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192), is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (2) by inserting after subsection (e) the following:
       ``(f) Own, feed, or control livestock intended for 
     slaughter (for more than 14 days prior to slaughter and 
     acting through the packer or a person that directly or 
     indirectly controls, or is controlled by or under common 
     control with, the packer), except that this subsection shall 
     not apply to--
       ``(1) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter; or
       ``(2) a packer that is owned or controlled by producers of 
     a type of livestock, if during a calendar year the packer 
     slaughters less than 2 percent of the head of that type of 
     livestock slaughtered in the United States; or''; and
       (3) in subsection (h) (as so redesignated), by striking 
     ``or (e)'' and inserting ``(e), or (f)''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsection (a) take effect on the date of enactment 
     of this Act.
       (2) Transition rules.--In the case of a packer that on the 
     date of enactment of this Act owns, feeds, or controls 
     livestock intended for slaughter in violation of section 
     202(f) of the Packers and Stockyards Act, 1921 (as amended by 
     subsection (a)), the amendments made by subsection (a) apply 
     to the packer--
       (A) in the case of a packer of swine, beginning on the date 
     that is 18 months after the date of enactment of this Act; 
     and
       (B) in the case of a packer of any other type of livestock, 
     beginning as soon as practicable, but not later than 180 
     days, after the date of enactment of this Act, as determined 
     by the Secretary of Agriculture.

     SEC. 1044. PACKERS AND STOCKYARDS.

       (a) Definitions.--Section 2(a) of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 182(a)), is amended by adding 
     at the end the following:
       ``(12) Livestock contractor.--The term `livestock 
     contractor' means any person engaged in the business of 
     obtaining livestock under a livestock production contract for 
     the purpose of slaughtering the livestock or selling the 
     livestock for slaughter, if--
       ``(A) the livestock is obtained by the person in commerce; 
     or
       ``(B) the livestock (including livestock products from the 
     livestock) obtained by the person is sold or shipped in 
     commerce.
       ``(13) Livestock production contract.--The term `livestock 
     production contract' means any growout contract or other 
     arrangement under which a livestock production contract 
     grower raises and cares for the livestock in accordance with 
     the instructions of another person.
       ``(14) Livestock production contract grower.--The term 
     `livestock production contract grower' means any person 
     engaged in the business of raising and caring for livestock 
     in accordance with the instructions of another person.''.
       (b) Contractors.--
       (1) In general.--The Packers and Stockyards Act, 1921, is 
     amended by striking ``packer'' each place it appears in 
     sections 202, 203, 204, and 205 (7 U.S.C. 192, 193, 194, 195) 
     (other than section 202(c)) and inserting ``packer or 
     livestock contractor''.
       (2) Conforming amendments.--
       (A) Section 202(c) of the Packers and Stockyards Act, 1921 
     (7 U.S.C. 192(c)), is amended by inserting ``, livestock 
     contractor,'' after ``other packer'' each place it appears.
       (B) Section 308(a) of the Packers and Stockyards Act, 1921 
     (7 U.S.C. 209(a)), is amended by inserting ``or livestock 
     production contract'' after ``poultry growing arrangement''.
       (C) Sections 401 and 403 of the Packers and Stockyards Act, 
     1921 (7 U.S.C. 221, 223), are amended by inserting ``any 
     livestock contractor, and'' after ``packer,'' each place it 
     appears.
       (c) Right to Discuss Terms of Contract.--The Packers and 
     Stockyards Act, 1921 (7 U.S.C. 181 et seq.), is amended by 
     adding at the end the following:

     ``SEC. 417. RIGHT TO DISCUSS TERMS OF CONTRACT.

       ``(a) In General.--Notwithstanding a provision in any 
     contract for the sale or production of livestock or poultry 
     that provides that information contained in the contract is 
     confidential, a party to the contract shall not be prohibited 
     from discussing any terms or details of any contract with--
       ``(1) a legal adviser;
       ``(2) a lender;
       ``(3) an accountant;
       ``(4) an executive or manager;
       ``(5) a landlord;
       ``(6) a family member; or
       ``(7) a Federal or State agency with responsibility for--
       ``(A) enforcing a statute designed to protect a party to 
     the contract; or
       ``(B) administering this Act.
       ``(b) Effect on State Laws.--Subsection (a) does not affect 
     State laws that address confidentiality provisions in 
     contracts for the sale or production of livestock or 
     poultry.''.

     SEC. 1045. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       (a) In General.--Title III of the Packers and Stockyards 
     Act, 1921, is amended by inserting after section 317 (7 
     U.S.C. 217a) the following:

     ``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       ``(a) Definitions.--In this section:
       ``(1) Humanely euthanized.--The term `humanely euthanized' 
     means to kill an animal by mechanical, chemical, or other 
     means that immediately render the animal unconscious, with 
     this state remaining until the animal's death.
       ``(2) Nonambulatory livestock.--The term `nonambulatory 
     livestock' means any livestock that is unable to stand and 
     walk unassisted.
       ``(b) Unlawful Practices.--
       ``(1) In general.--It shall be unlawful under section 312 
     for any stockyard owner, market agency, or dealer to buy, 
     sell, give, receive, transfer, market, hold, or drag any 
     nonambulatory livestock unless the nonambulatory livestock 
     has been humanely euthanized.
       ``(2) Exceptions.--
       ``(A) Non-gipsa farms.--Paragraph (1) shall not apply to 
     any farm the animal care practices of which are not subject 
     to the authority of the Grain Inspection, Packers, and 
     Stockyards Administration.
       ``(B) Veterinary care.--Paragraph (1) shall not apply in a 
     case in which nonambulatory livestock receive veterinary care 
     intended to render the livestock ambulatory.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) takes 
     effect 1 year after the date of the enactment of this Act.
       (2) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations consistent with the amendment, 
     relating to the handling, treatment, and disposition of 
     nonambulatory livestock at livestock marketing facilities or 
     by dealers.

     SEC. 1046. ARBITRATION CLAUSES.

       Title IV of the Packers and Stockyards Act, 1921, is 
     amended by inserting after section 413 (7 U.S.C. 228b-4) the 
     following:

     ``SEC. 413A. ARBITRATION CLAUSES.

       ``Notwithstanding any other provision of law, in the case 
     of a contract for the sale or production of livestock or 
     poultry under this Act that is entered into or renewed after 
     the date of enactment of this section and that includes a 
     provision that requires arbitration of a dispute arising from 
     the contract, a person that seeks to resolve a dispute under 
     the contract may, notwithstanding the terms of the contract, 
     elect--
       ``(1) to arbitrate the dispute in accordance with the 
     contract; or
       ``(2) to resolve the dispute in accordance with any other 
     lawful method of dispute resolution, including mediation and 
     civil action.''.

     SEC. 1047. COTTON CLASSIFICATION SERVICES.

       The first sentence of section 3a of the Act of March 3, 
     1927 (commonly known as the ``Cotton

[[Page S1122]]

     Statistics and Estimates Act'') (7 U.S.C. 473), is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 1048. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

       Section 1324 of the Food Security Act of 1985 (7 U.S.C. 
     1631) is amended--
       (1) in subsection (c)(4)--
       (A) in subparagraph (B), by striking ``signed,'' and 
     inserting ``signed, authorized, or otherwise authenticated by 
     the debtor,'';
       (B) by striking subparagraph (C);
       (C) in subparagraph (D)--
       (i) in clause (iii), by adding ``and'' after the semicolon 
     at the end; and
       (ii) in clause (iv), by striking ``applicable;'' and all 
     that follows and inserting ``applicable, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (D) by redesignating subparagraphs (D) through (I) as 
     subparagraphs (C) through (H), respectively;
       (2) in subsection (e)--
       (A) in paragraph (1)(A)--
       (i) in clause (ii)--

       (I) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (II) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting ``crop year, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and

       (iii) in clause (v), by inserting ``contains'' before ``any 
     payment''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``subparagraph'' and 
     inserting ``subsection''; and
       (ii) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) subsection (g)(2)(A)--
       (A) in clause (ii)--
       (i) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (ii) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting ``crop year, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (B) in clause (v), by inserting ``contains'' before ``any 
     payment''.

     SEC. 1049. IMPROVED STANDARDS FOR THE CARE AND TREATMENT OF 
                   CERTAIN ANIMALS.

       (a) Socialization Plan; Breeding Restrictions.--Section 
     13(a)(2) of the Animal Welfare Act (7 U.S.C. 2143(a)(2)) is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(C) for the socialization of dogs intended for sale as 
     pets with other dogs and people, through compliance with a 
     performance standard developed by the Secretary based on the 
     recommendations of veterinarians and animal welfare and 
     behavior experts that--
       ``(i) identifies actions that dealers and inspectors shall 
     take to ensure adequate socialization; and
       ``(ii) identifies a set of behavioral measures that 
     inspectors shall use to evaluate adequate socialization; and
       ``(D) for addressing the initiation and frequency of 
     breeding of female dogs so that a female dog is not--
       ``(i) bred before the female dog has reached at least 1 
     year of age; and
       ``(ii) whelped more frequently than 3 times in any 24-month 
     period.''.
       (b) Suspension or Revocation of License, Civil Penalties, 
     Judicial Review, and Criminal Penalties.--Section 19 of the 
     Animal Welfare Act (7 U.S.C. 2149) is amended--
       (1) by striking ``Sec. 19. (a) If the Secretary'' and 
     inserting the following:

     ``SEC. 19. SUSPENSION OR REVOCATION OF LICENSE, CIVIL 
                   PENALTIES, JUDICIAL REVIEW, AND CRIMINAL 
                   PENALTIES.

       ``(a) Suspension or Revocation of License.--
       ``(1) In general.--If the Secretary'';
       (2) in subsection (a)--
       (A) in paragraph (1) (as designated by paragraph (1)), by 
     striking ``if such violation'' and all that follows and 
     inserting ``if the Secretary determines that 1 or more 
     violations have occurred.''; and
       (B) by adding at the end the following:
       ``(2) License revocation.--If the Secretary finds that any 
     person licensed as a dealer, exhibitor, or operator of an 
     auction sale subject to section 12, has committed a serious 
     violation (as determined by the Secretary) of any rule, 
     regulation, or standard governing the humane handling, 
     transportation, veterinary care, housing, breeding, 
     socialization, feeding, watering, or other humane treatment 
     of dogs under section 12 or 13 on 3 or more separate 
     inspections within any 8-year period, the Secretary shall--
       ``(A) suspend the license of the person for 21 days; and
       ``(B) after providing notice and a hearing not more than 30 
     days after the third violation is noted on an inspection 
     report, revoke the license of the person unless the Secretary 
     makes a written finding that revocation is unwarranted 
     because of extraordinary extenuating circumstances.'';
       (3) in subsection (b), by striking ``(b) Any dealer'' and 
     inserting ``(b) Civil Penalties.--Any dealer'';
       (4) in subsection (c), by striking ``(c) Any dealer'' and 
     inserting ``(c) Judicial Review.--Any dealer''; and
       (5) in subsection (d), by striking ``(d) Any dealer'' and 
     inserting ``(d) Criminal Penalties.--Any dealer''.
       (c) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate such regulations as are necessary to carry out the 
     amendments made by this section, including development of the 
     standards required by the amendments made by subsection (a).

     SEC. 1050. EXPANSION OF STATE MARKETING PROGRAMS.

       (a) State Marketing Programs.--Section 204(b) of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)) is 
     amended--
       (1) by striking ``(b) The'' and all that follows through 
     ``: Provided, That no'' and inserting the following:
       ``(b) State Marketing Programs.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make 
     available $7,000,000 for fiscal year 2003, $8,000,000 for 
     fiscal year 2004, and $10,000,000 for each of fiscal years 
     2005 and 2006 for allotment to State departments of 
     agriculture, State bureaus and departments of markets, State 
     agricultural experiment stations, and other appropriate State 
     agencies for cooperative projects in marketing service and in 
     marketing research to effectuate the purposes of--
       ``(A) title II of this Act; and
       ``(B) the Farmer's Market Promotion Program established 
     under section 6 of the Farmer-to-Consumer Direct Marketing 
     Act of 1976.
       ``(2) Small farms and limited resource farmers.--Of the 
     funds made available under paragraph (1), a priority shall be 
     given for initiatives designed to support direct and other 
     marketing efforts of small farms and limited resource 
     farmers.
       ``(3) State funds.--No'';
       (2) by striking ``The funds which'' and inserting the 
     following:
       ``(4) Additional funds.--The funds that'';
       (3) by striking ``The allotments'' and inserting the 
     following:
       ``(5) Recipient agencies.--The allotments'';
       (4) by striking ``Such allotments'' and inserting the 
     following:
       ``(6) Cooperative agreements.--The allotments''; and
       (5) by striking ``Should duplication'' and inserting the 
     following:
       ``(7) Duplication.--If duplication''.
       (b) Farmers' Market Promotion Program.--
       (1) Survey.--Section 4 of the Farmer-to-Consumer Direct 
     Marketing Act of 1976 (7 U.S.C. 3003) is amended--
       (A) in the first sentence, by striking ``a continuing'' and 
     inserting ``an annual''; and
       (B) by striking the second sentence.
       (2) Direct marketing assistance.--Section 5 of the Farmer-
     to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3004) is 
     amended--
       (A) in subsection (a)--
       (i) in the first sentence, by striking ``Extension Service 
     of the United States Department of Agriculture'' and 
     inserting ``Secretary''; and
       (ii) in the second sentence--

       (I) by striking ``Extension Service'' and inserting 
     ``Secretary''; and
       (II) by striking ``and on the basis of which of these two 
     agencies, or combination thereof, can best perform these 
     activities'' and inserting ``, as determined by the 
     Secretary'';

       (B) by redesignating subsection (b) as subsection (c); and
       (C) by inserting after subsection (a) the following:
       ``(b) Development of Farmers' Markets.--The Secretary 
     shall--
       ``(1) work with the Governor of a State, and a State agency 
     designated by the Governor, to develop programs to train 
     managers of farmers' markets;
       ``(2) develop opportunities to share information among 
     managers of farmers' markets;
       ``(3) establish a program to train cooperative extension 
     service employees in the development of direct marketing 
     techniques; and
       ``(4) work with producers to develop farmers' markets.''.
       (3) Farmers' market promotion program.--The Farmer-to-
     Consumer Direct Marketing Act of 1976 (7 U.S.C. 3001 et seq.) 
     is amended by inserting after section 5 the following:

     ``SEC. 6. FARMERS' MARKET PROMOTION PROGRAM.

       ``(a) Establishment.--The Secretary shall carry out a 
     program, to be known as the `Farmers' Market Promotion 
     Program' (referred to in this section as the `Program'), to 
     make grants to eligible entities for projects to establish, 
     expand, and promote farmers' markets.
       ``(b) Program Purposes.--The purposes of the Program are--
       ``(1) to increase domestic consumption of agricultural 
     commodities by improving and expanding, or assisting in the 
     improvement and expansion of, domestic farmers' markets, 
     roadside stands, community-supported agriculture programs, 
     and other direct producer-to-consumer infrastructure; and
       ``(2) to develop, or aid in the development of, new 
     farmers' markets, roadside stands, community-supported 
     agriculture programs, and other direct producer-to-consumer 
     infrastructure.
       ``(c) Eligible Entities.--An entity shall be eligible to 
     receive a grant under the Program if the entity is--
       ``(1) an agricultural cooperative;
       ``(2) a local government;
       ``(3) a nonprofit corporation;
       ``(4) a public benefit corporation;
       ``(5) an economic development corporation;
       ``(6) a regional farmers' market authority; or
       ``(7) such other entity as the Secretary may designate.
       ``(d) Criteria and Guidelines.--The Secretary shall 
     establish criteria and guidelines for the submission, 
     evaluation, and funding of proposed projects under the 
     Program.
       ``(e) Amount.--
       ``(1) In general.--Under the Program, the amount of a grant 
     to an eligible entity for any 1 project shall be not more 
     than $500,000 for any 1 fiscal year.
       ``(2) Availability.--The amount of a grant to an eligible 
     entity for a project shall be available until expended or 
     until the date on which the project terminates.

[[Page S1123]]

       ``(f) Cost Sharing.--
       ``(1) In general.--The share of the costs of a project 
     covered by a grant awarded under the Program shall not exceed 
     60 percent.
       ``(2) Grantee share.--
       ``(A) Form.--The non-Federal share of the cost of a project 
     carried out under the Program may be paid in the form of cash 
     or the provision of services, materials, or other in-kind 
     contributions.
       ``(B) Limitation.--The value of any real or personal 
     property owned by an eligible entity as of the date on which 
     the eligible entity submits a proposal for a project under 
     the Program shall not be credited toward the grantee share 
     required under this paragraph.
       ``(g) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $10,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Limitation.--Except for funds made available pursuant 
     to section 204(b) of the Agricultural Marketing Act of 1946 
     (7 U.S.C. 1623(b)), no amounts may be made available to carry 
     out this section unless specifically provided by an 
     appropriation Act.''.

     SEC. 1051. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

       Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) 
     is amended by striking ``excludes horses not used for 
     research purposes and'' and inserting the following: 
     ``excludes birds, rats of the genus Rattus, and mice of the 
     genus Mus bred for use in research, horses not used for 
     research purposes, and''.

     SEC. 1052. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) Penalties and Foreign Commerce Provisions of the Animal 
     Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 
     2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting at the end before 
     the semicolon the following: ``or from any State into any 
     foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 1053. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR 
                   ANIMAL FIGHTING.

       (a) Prohibition on Interstate Movement of Animals for 
     Animal Fighting.--Section 26(d) of the Animal Welfare Act (7 
     U.S.C. 2156(d)) is amended to read as follows:
       ``(d) Activities Not Subject to Prohibition.--This section 
     does not apply to the selling, buying, transporting, or 
     delivery of an animal in interstate or foreign commerce for 
     any purpose, so long as the purpose does not include 
     participation of the animal in an animal fighting venture.''.
       (b) Effective Date.--The amendment made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 1054. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED 
                   FARMERS AND RANCHERS.

       (a) In General.--Section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is 
     amended by striking subsection (a) and inserting the 
     following:
       ``(a) Outreach and Assistance.--
       ``(1) Definitions.--In this subsection:
       ``(A) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(B) Eligible entity.--The term `eligible entity' means--
       ``(i) any community-based organization, network, or 
     coalition of community-based organizations that--

       ``(I) has demonstrated experience in providing agricultural 
     education or other agriculturally related services to 
     socially disadvantaged farmers and ranchers;
       ``(II) has provided to the Secretary documentary evidence 
     of work with socially disadvantaged farmers and ranchers 
     during the 2-year period preceding the submission of an 
     application for assistance under this subsection; and
       ``(III) has not engaged in activities prohibited under 
     section 501(c)(3) of the Internal Revenue Code of 1986;

       ``(ii)(I) an 1890 institution (as defined in section 2 of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7601)), including West Virginia State 
     College;
       ``(II) a 1994 institution (as defined in section 2 of that 
     Act);
       ``(III) an Indian tribal community college;
       ``(IV) an Alaska Native cooperative college;
       ``(V) a Hispanic-serving institution (as defined in section 
     1404 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); and
       ``(VI) any other institution of higher education (as 
     defined in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001)) that has demonstrated experience in 
     providing agriculture education or other agriculturally 
     related services to socially disadvantaged farmers and 
     ranchers in a region; and
       ``(iii) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)) or a national tribal organization that has 
     demonstrated experience in providing agriculture education or 
     other agriculturally related services to socially 
     disadvantaged farmers and ranchers in a region.
       ``(C) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(2) Program.--The Secretary shall carry out an outreach 
     and technical assistance program to encourage and assist 
     socially disadvantaged farmers and ranchers--
       ``(A) in owning and operating farms and ranches; and
       ``(B) in participating equitably in the full range of 
     agricultural programs offered by the Department.
       ``(3) Requirements.--The outreach and technical assistance 
     program under paragraph (2) shall--
       ``(A) enhance coordination of the outreach, technical 
     assistance, and education efforts authorized under various 
     agriculture programs; and
       ``(B) include information on, and assistance with--
       ``(i) commodity, conservation, credit, rural, and business 
     development programs;
       ``(ii) application and bidding procedures;
       ``(iii) farm and risk management;
       ``(iv) marketing; and
       ``(v) other activities essential to participation in 
     agricultural and other programs of the Department.
       ``(4) Grants and contracts.--
       ``(A) In general.--The Secretary may make grants to, and 
     enter into contracts and other agreements with, an eligible 
     entity to provide information and technical assistance under 
     this subsection.
       ``(B) Relationship to other law.--The authority to carry 
     out this section shall be in addition to any other authority 
     provided in this or any other Act.
       ``(5) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2002 through 2006.
       ``(B) Interagency funding.--In addition to funds authorized 
     to be appropriated under subparagraph (A), any agency of the 
     Department may participate in any grant, contract, or 
     agreement entered into under this section by contributing 
     funds, if the agency determined that the objectives of the 
     grant, contract, or agreement will further the authorized 
     programs of the contributing agency.''.
       (b) Definition of Socially Disadvantaged Group.--Section 
     2501(e)(1) of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 2279(e)(1)) is amended by striking 
     ``racial or ethnic'' and inserting ``gender, racial, or 
     ethnic''.

     SEC. 1055. WILD FISH AND WILD SHELLFISH.

       Section 2104 of the Organic Foods Production Act of 1990 (7 
     U.S.C. 6503) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Wild Fish and Wild Shellfish.--
       ``(1) In general.--Notwithstanding section 2107(a)(1), the 
     Secretary may allow, through regulations promulgated after 
     public notice and opportunity for comment, wild fish or wild 
     shellfish harvested from salt water to be certified or 
     labeled as organic.
       ``(2) Consultation and accommodation.--In carrying out 
     paragraph (1), the Secretary shall--
       ``(A) consult with--
       ``(i) the Secretary of Commerce;
       ``(ii) the National Organic Standards Board established 
     under section 2119;
       ``(iii) producers, processors, and sellers; and
       ``(iv) other interested members of the public; and
       ``(B) to the maximum extent practicable, accommodate the 
     unique characteristics of the industries in the United States 
     that harvest and process wild fish and shellfish.''.

     SEC. 1056. ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL 
                   RIGHTS.

       (a) In General.--Section 218 of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6918) is 
     amended by adding at the end the following:
       ``(f) Assistant Secretary of Agriculture for Civil 
     Rights.--
       ``(1) Definition of socially disadvantaged farmer or 
     rancher.--In this subsection, the term `socially 
     disadvantaged farmer or rancher' has the meaning given the 
     term in section 355(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e)).
       ``(2) Establishment of position.--The Secretary shall 
     establish within the Department the position of Assistant 
     Secretary of Agriculture for Civil Rights.
       ``(3) Appointment.--The Assistant Secretary of Agriculture 
     for Civil Rights shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(4) Duties.--The Assistant Secretary of Agriculture for 
     Civil Rights shall--
       ``(A) enforce and coordinate compliance with all civil 
     rights laws and related laws--
       ``(i) by the agencies of the Department; and
       ``(ii) under all programs of the Department (including all 
     programs supported with Department funds);
       ``(B) ensure that--
       ``(i) the Department has measurable goals for treating 
     customers and employees fairly and on a nondiscriminatory 
     basis; and
       ``(ii) the goals and the progress made in meeting the goals 
     are included in--

       ``(I) strategic plans of the Department; and
       ``(II) annual reviews of the plans;

       ``(C) compile and publicly disclose data used in assessing 
     civil rights compliance in achieving on a nondiscriminatory 
     basis participation of socially disadvantaged farmers and 
     ranchers in programs of the Department;
       ``(D)(i) hold Department agency heads and senior executives 
     accountable for civil rights compliance and performance; and
       ``(ii) assess performance of Department agency heads and 
     senior executives on the basis of success made in those 
     areas;
       ``(E) ensure, to the maximum extent practicable--
       ``(i) a sufficient level of participation by socially 
     disadvantaged farmers and ranchers in

[[Page S1124]]

     deliberations of county and area committees established under 
     section 8(b) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(b)); and
       ``(ii) that participation data and election results 
     involving the committees are made available to the public; 
     and
       ``(F) perform such other functions as may be prescribed by 
     the Secretary.''.
       (b) Compensation.--Section 5315 of title 5, United States 
     Code, is amended by striking ``Assistant Secretaries of 
     Agriculture (2)'' and inserting ``Assistant Secretaries of 
     Agriculture (3)''.
       (c) Conforming Amendments.--Section 296(b) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 7014(b)) is amended--
       (1) in paragraph (3), by striking ``or'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(5) the authority of the Secretary to establish within 
     the Department the position of Assistant Secretary of 
     Agriculture for Civil Rights under section 218(f).''.

     SEC. 1057. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY 
                   DISADVANTAGED FARMERS AND RANCHERS; PUBLIC 
                   DISCLOSURE REQUIREMENTS FOR COUNTY COMMITTEE 
                   ELECTIONS.

       (a) Transparency and Accountability for Socially 
     Disadvantaged Farmers and Ranchers.--The Food, Agriculture, 
     Conservation, and Trade Act of 1990 is amended by inserting 
     after section 2501 (7 U.S.C. 2279) the following:

     ``SEC. 2501A. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY 
                   DISADVANTAGED FARMERS AND RANCHERS.

       ``(a) Purpose.--The purpose of this section is to ensure 
     compilation and public disclosure of data to assess and hold 
     the Department of Agriculture accountable for the 
     nondiscriminatory participation of socially disadvantaged 
     farmers and ranchers in programs of the Department.
       ``(b) Definition of Socially Disadvantaged Farmer or 
     Rancher.--In this section, the term `socially disadvantaged 
     farmer or rancher' has the meaning given the term in section 
     355(e) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 2003(e)).
       ``(c) Compilation of Program Participation Data.--
       ``(1) Annual requirement.--For each county and State in the 
     United States, the Secretary shall compute annually the 
     participation rate of socially disadvantaged farmers and 
     ranchers as a percentage of the total participation of all 
     farmers and ranchers for each program of the Department of 
     Agriculture established for farmers or ranchers.
       ``(2) Determination of participation.--In determining the 
     rates under paragraph (1), the Secretary shall consider, for 
     each county and State, the number of socially disadvantaged 
     farmers and ranchers of each race, ethnicity, and gender in 
     proportion to the total number of farmers and ranchers 
     participating in each program.''.
       (b) Public Disclosure Requirements for County Committee 
     Elections.--Section 8(b)(5) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(b)(5)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) Establishment and elections for county, area, or 
     local committees.--
       ``(i) Establishment.--

       ``(I) In general.--In each county or area in which 
     activities are carried out under this section, the Secretary 
     shall establish a county or area committee.
       ``(II) Local administrative areas.--The Secretary may 
     designate local administrative areas within a county or a 
     larger area under the jurisdiction of a committee established 
     under subclause (I).

       ``(ii) Composition of county, area, or local committees.--A 
     committee established under clause (i) shall consist of not 
     fewer than 3 nor more than 5 members that--

       ``(I) are fairly representative of the agricultural 
     producers within the area covered by the county, area, or 
     local committee; and
       ``(II) are elected by the agricultural producers that 
     participate or cooperate in programs administered within the 
     area under the jurisdiction of the county, area, or local 
     committee.

       ``(iii) Elections.--

       ``(I) In general.--Subject to subclauses (II) through (V), 
     the Secretary shall establish procedures for nominations and 
     elections to county, area, or local committees.
       ``(II) Nondiscrimination statement.--Each solicitation of 
     nominations for, and notice of elections of, a county, area, 
     or local committee shall include the nondiscrimination 
     statement used by the Secretary.
       ``(III) Nominations.--

       ``(aa) Eligibility.--To be eligible for nomination and 
     election to the applicable county, area, or local committee, 
     as determined by the Secretary, an agricultural producer 
     shall be located within the area under the jurisdiction of a 
     county, area, or local committee, and participate or 
     cooperate in programs administered within that area.
       ``(bb) Outreach.--In addition to such nominating procedures 
     as the Secretary may prescribe, the Secretary shall solicit 
     and accept nominations from organizations representing the 
     interests of socially disadvantaged groups (as defined in 
     section 355(e)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e)(1)).

       ``(IV) Opening of ballots.--

       ``(aa) Public notice.--At least 10 days before the date on 
     which ballots are to be opened and counted, a county, area, 
     or local committee shall announce the date, time, and place 
     at which election ballots will be opened and counted.
       ``(bb) Opening of ballots.--Election ballots shall not be 
     opened until the date and time announced under item (aa).
       ``(cc) Observation.--Any person may observe the opening and 
     counting of the election ballots.

       ``(V) Report of election.--Not later than 20 days after the 
     date on which an election is held, a county, area, or local 
     committee shall file an election report with the Secretary 
     and the State office of the Farm Service Agency that 
     includes--

       ``(aa) the number of eligible voters in the area covered by 
     the county, area, or local committee;
       ``(bb) the number of ballots cast in the election by 
     eligible voters (including the percentage of eligible voters 
     that cast ballots);
       ``(cc) the number of ballots disqualified in the election;
       ``(dd) the percentage that the number of ballots 
     disqualified is of the number of ballots received;
       ``(ee) the number of nominees for each seat up for 
     election;
       ``(ff) the race, ethnicity, and gender of each nominee, as 
     provided through the voluntary self-identification of each 
     nominee; and
       ``(gg) the final election results (including the number of 
     ballots received by each nominee).

       ``(VI) National report.--Not later than 90 days after the 
     date on which the first election of a county, area, or local 
     committee that occurs after the date of enactment of the 
     Agriculture, Conservation, and Rural Enhancement Act of 2002 
     is held, the Secretary shall complete a report that 
     consolidates all the election data reported to the Secretary 
     under subclause (V).
       ``(VII) Election reform.--

       ``(aa) Analysis.--If determined necessary by the Secretary 
     after analyzing the data contained in the report under 
     subclause (VI), the Secretary shall promulgate and publish in 
     the Federal Register proposed uniform guidelines for 
     conducting elections for members and alternate members of 
     county, area, and local committees not later than 1 year 
     after the date of completion of the report.
       ``(bb) Inclusion.--The procedures promulgated by the 
     Secretary under item (aa) shall ensure fair representation of 
     socially disadvantaged groups described in subclause 
     (III)(bb) in an area covered by the county, area, or local 
     committee, in cases in which those groups are 
     underrepresented on the county, area, or local committee for 
     that area.
       ``(cc) Methods of inclusion.--Notwithstanding clause (ii), 
     the Secretary may ensure inclusion of socially disadvantaged 
     farmers and ranchers through provisions allowing for 
     appointment of additional voting members to a county, area, 
     or local committee or through other methods.
       ``(iv) Term of office.--The term of office for a member of 
     a county, area, or local committee shall not exceed 3 years.
       ``(v) Public availability and report to congress.--

       ``(I) Public disclosure.--The Secretary shall maintain and 
     make readily available to the public, via website and 
     otherwise in electronic and paper form, all data required to 
     be collected and computed under section 2501A(c) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 and clause 
     (iii)(V) collected annually since the most recent Census of 
     Agriculture.
       ``(II) Report to congress.--After each Census of 
     Agriculture, the Secretary shall report to Congress the rate 
     of loss or gain in participation by each socially 
     disadvantaged group, by race, ethnicity, and gender, since 
     the previous Census.''.

     SEC. 1058. ANIMAL ENTERPRISE TERRORISM.

       (a) In General.--Section 43 of title 18, United States 
     Code, is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Offense.--
       ``(1) In general.--It shall be unlawful for a person to--
       ``(A) travel in interstate or foreign commerce, or use or 
     cause to be used the mail or any facility in interstate or 
     foreign commerce, for the purpose of causing physical 
     disruption to the functioning of an animal enterprise; and
       ``(B) intentionally damage or cause the loss of any 
     property (including an animal or record) used by the animal 
     enterprise, or conspire to do so.
       ``(b) Penalties.--
       ``(1) Economic damage.--A person that, in the course of a 
     violation of subsection (a), causes economic damage to an 
     animal enterprise in an amount less than $10,000 shall be 
     imprisoned not more than 6 months, fined under this title, or 
     both.
       ``(2) Major economic damage.--A person that, in the course 
     of a violation of subsection (a), causes economic damage to 
     an animal enterprise in an amount equal to or greater than 
     $10,000 shall be imprisoned not more than 3 years, fined 
     under this title, or both.
       ``(3) Serious bodily injury.--A person that, in the course 
     of a violation of subsection (a), causes serious bodily 
     injury to another individual shall be imprisoned not more 
     than 20 years, fined under this title, or both.
       ``(4) Death.--A person that, in the course of a violation 
     of subsection (a), causes the death of an individual shall be 
     imprisoned for life or for any term of years, fined under 
     this title, or both.''; and
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``restitution--'' and inserting ``restitution for--'';
       (B) in paragraph (1)--
       (i) by striking ``for''; and
       (ii) by striking ``and'' at the end;
       (C) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(3) any other economic damage resulting from the 
     offense.''.

     SEC. 1059. PSEUDORABIES ERADICATION PROGRAM.

       Section 2506(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (21 U.S.C.

[[Page S1125]]

     114i(d)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 1060. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.

       Section 5402(d)(2) of title 39, United States Code (as 
     amended by section 651(2) of Public Law 107-67 (115 Stat. 
     557)), is amended by striking subparagraph (C).

     SEC. 1061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND 
                   SEASONAL FARMWORKERS.

       Section 2281 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (42 U.S.C. 5177a) is amended--
       (1) in subsection (a), by striking ``, not to exceed 
     $20,000,000 annually,''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $40,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 1062. TREE ASSISTANCE PROGRAM.

       (a) In General.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

     ``SEC. 194. TREE ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible orchardist.--The term `eligible orchardist' 
     means a person that produces annual crops from trees for 
     commercial purposes,
       ``(2) Natural disaster.--The term `natural disaster' means 
     plant disease, insect infestation, drought, fire, freeze, 
     flood, earthquake, and other natural occurrences, as 
     determined by the Secretary.
       ``(3) Tree.--The term `tree' includes trees, bushes, and 
     vines.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Eligibility.--
       ``(1) Loss.--Subject to paragraph (2), the Secretary shall 
     provide assistance in accordance with subsection (c) to 
     eligible orchardists that, as determined by the Secretary--
       ``(A) planted trees for commercial purposes; and
       ``(B) lost those trees as a result of a natural disaster.
       ``(2) Limitation.--An eligible orchardist shall qualify for 
     assistance under subsection (c) only if the tree mortality 
     rate of the orchardist, as a result of the natural disaster, 
     exceeds 15 percent (adjusted for normal mortality), as 
     determined by the Secretary.
       ``(c) Assistance.--
       ``(1) In general.--Assistance provided by the Secretary to 
     eligible orchardists for losses described in subsection (b) 
     shall consist of--
       ``(A) reimbursement of 75 percent of the cost of replanting 
     trees lost due to a natural disaster, as determined by the 
     Secretary, in excess of 15 percent mortality (adjusted for 
     normal mortality); or
       ``(B) at the discretion of the Secretary, sufficient tree 
     seedlings to reestablish the stand.
       ``(2) Limitation on assistance.--
       ``(A) Limitation.--The total amount of payments that a 
     person may receive under this section shall not exceed--
       ``(i) $100,000; or
       ``(ii) an equivalent value in tree seedlings.
       ``(B) Regulations.--The Secretary shall promulgate 
     regulations that--
       ``(i) define the term `person' for the purposes of this 
     section (which definition shall conform, to the extent 
     practicable, to the regulations defining the term `person' 
     promulgated under section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308); and
       ``(ii) prescribe such rules as the Secretary determines are 
     necessary to ensure a fair and reasonable application of the 
     limitation established under this section.
       ``(d) Authorization of Appropriations.--Notwithstanding 
     section 161, there is authorized to be appropriated such sums 
     as are necessary to carry out this section for each of fiscal 
     years 2002 through 2006.''.
       (b) Application Date.--The amendment made by subsection (a) 
     shall apply to tree losses that are incurred as a result of a 
     natural disaster after January 1, 2000.

     SEC. 1063. PRECLEARANCE QUARANTINE INSPECTIONS.

       The Food, Agriculture, Conservation, and Trade Act of 1990 
     is amended by inserting after section 2505 (Public Law 101-
     624; 104 Stat. 4068) the following:

     ``SEC. 2505A. PRECLEARANCE QUARANTINE INSPECTIONS.

       ``(a) In General.--Subject to subsection (b), the Secretary 
     of Agriculture, acting through the Administrator of the 
     Animal and Plant Health Inspection Service, shall conduct, at 
     all direct departure and interline airports in the State of 
     Hawaii, preclearance quarantine inspections of persons, 
     baggage, cargo, and any other articles destined for movement 
     from the State of Hawaii to--
       ``(1) the continental United States;
       ``(2) Guam;
       ``(3) Puerto Rico; or
       ``(4) the Virgin Islands of the United States.
       ``(b) Limitation.--Subsection (a) shall not be implemented 
     unless appropriations for necessary expenses of the Animal 
     and Plant Health Inspection Service for inspection, 
     quarantine, and regulatory activities are increased by an 
     amount not less than $3,000,000 in a fiscal year 2002 
     appropriation Act other than the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2002 (Public Law 107-76).''.

     SEC. 1064. EMERGENCY LOANS FOR SEED PRODUCERS.

       Section 253(b)(5)(B) of the Agricultural Risk Protection 
     Act of 2000 (Public Law 106-224; 114 Stat. 423) is amended by 
     striking ``18 months'' and inserting ``54 months''.

     SEC. 1065. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

       (a) In General.--Of funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture (acting through the 
     Agricultural Marketing Service) shall use $3,500,000 for 
     fiscal year 2002, $3,500,000 for each of fiscal years 2003 
     and 2004, and $3,000,000 for fiscal year 2005 to establish a 
     national organic certification cost-share program to assist 
     producers and handlers of agricultural products in obtaining 
     certification under the national organic production program 
     established under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.).
       (b) Federal Share.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall pay under this section not more than 75 percent of the 
     costs incurred by a producer or handler in obtaining 
     certification under the national organic production program, 
     as certified to and approved by the Secretary.
       (2) Maximum amount.--The maximum amount of a payment made 
     to a producer or handler under this section shall be $500.

     SEC. 1066. FOOD SAFETY COMMISSION.

       (a) Establishment.--
       (1) In general.--There is established a commission to be 
     known as the ``Food Safety Commission'' (referred to in this 
     section as the ``Commission'').
       (2) Membership.--
       (A) Composition.--The Commission shall be composed of 15 
     members, of whom--
       (i) 4 shall be appointed by the Majority Leader of the 
     Senate;
       (ii) 3 shall be appointed by the Minority Leader of the 
     Senate;
       (iii) 4 shall be appointed by the Speaker of the House of 
     Representatives;
       (iv) 3 shall be appointed by the Minority Leader of the 
     House of Representatives; and
       (v) 1 shall--

       (I) be appointed jointly by the Speaker of the House of 
     Representatives and the Majority Leader of the Senate; and
       (II) serve as chairperson.

       (B) Eligibility.--Members of the Commission--
       (i) shall be knowledgeable or have expertise or training in 
     matters under the jurisdiction of the Commission;
       (ii) shall represent, at a minimum--

       (I) consumer groups;
       (II) food processors, producers, and retailers;
       (III) public health professionals;
       (IV) food inspectors;
       (V) former or current food safety regulators;
       (VI) members of academia; or
       (VII) any other interested individuals; and

       (iii) shall not be Federal employees.
       (C) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 60 days after the 
     date of enactment of this Act.
       (D) Consultation.--The Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate shall consult among themselves 
     prior to appointing the members of the Commission under 
     subparagraph (A) to achieve, to the maximum extent 
     practicable--
       (i) consensus on the appointments; and
       (ii) fair and equitable representation of various points of 
     view with respect to matters reviewed by the Commission.
       (E) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled--

       (I) not later than 60 days after the date on which the 
     vacancy occurs; and
       (II) in the same manner as the original appointment was 
     made.

       (3) Meetings.--
       (A) Initial meeting.--The initial meeting of the Commission 
     shall be conducted not later than 30 days after the later 
     of--
       (i) the date of appointment of the final member of the 
     Commission; or
       (ii) the date on which funds authorized to be appropriated 
     under subsection (f)(1) are made available.
       (B) Other meetings.--The Commission shall meet at the call 
     of the Chairperson.
       (4) Quorum; standing rules.--
       (A) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum to conduct business.
       (B) Standing rules.--At the first meeting of the 
     Commission, the Commission shall adopt standing rules of the 
     Commission to guide the conduct of business and 
     decisionmaking of the Commission.
       (C) Consensus.--
       (i) In general.--To the maximum extent practicable, the 
     Commission shall carry out the duties of the Commission by 
     reaching consensus.
       (ii) Voting.--

       (I) In general.--If the Commission is unable to achieve 
     consensus with respect to a particular decision, the 
     Commission shall vote on the decision.
       (II) Authority.--Each member of the Commission shall have 1 
     vote, which vote shall be accorded the same weight as a vote 
     of each other voting member.

       (b) Duties.--
       (1) Recommendations.--
       (A) In general.--The Commission shall make specific 
     recommendations that build on and implement, to the maximum 
     extent practicable, the recommendations contained in the 
     report of the National Academy of Sciences entitled 
     ``Ensuring Safe Food from Production to Consumption'' and 
     that shall serve as the basis for draft legislative language 
     to--
       (i) improve the food safety system;
       (ii) improve public health;
       (iii) create a harmonized, central framework for managing 
     Federal food safety programs (including outbreak management, 
     standard-setting,

[[Page S1126]]

     inspection, monitoring, surveillance, risk assessment, 
     enforcement, research, and education);
       (iv) enhance the effectiveness of Federal food safety 
     resources; and
       (v) eliminate, to the maximum extent practicable, gaps, 
     conflicts, duplication, and failures in the food safety 
     system.
       (B) Components.--Recommendations made by the Commission 
     under subparagraph (A) shall, at a minimum, address--
       (i) all food available commercially in the United States, 
     including meat, poultry, eggs, seafood, and produce;
       (ii) the application of all resources based on risk, 
     including resources for inspection, research, enforcement, 
     and education;
       (iii) shortfalls, redundancy, and inconsistency in laws 
     (including regulations); and
       (iv) the use of science-based methods, performance 
     standards, and preventative control systems to ensure the 
     safety of the food supply of the United States.
       (2) Report.--Not later than 1 year after the date on which 
     the Commission first meets, the Commission shall submit to 
     the President and Congress a comprehensive report that 
     includes--
       (A) the findings, conclusions, and recommendations of the 
     Commission;
       (B) a summary of any reports submitted to the Commission 
     under subsection (e) by--
       (i) the Advisory Commission on Intergovernmental Relations; 
     and
       (ii) the National Academy of Sciences;
       (C) a summary of any other material used by the Commission 
     in the preparation of the report under this paragraph; and
       (D) if requested by 1 or more members of the Commission, a 
     statement of the minority views of the Commission.
       (c) Powers of the Commission.--
       (1) Hearings.--The Commission or, at the direction of the 
     Commission, any subcommittee or member of the Commission, 
     may, for the purpose of carrying out this section hold such 
     hearings, meet and act at such times and places, take such 
     testimony, receive such evidence, and administer such oaths, 
     as the Commission or such subcommittee or member considers 
     advisable.
       (2) Witness allowances and fees.--
       (A) In general.--Section 1821 of title 28, United States 
     Code, shall apply to a witness requested to appear at a 
     hearing of the Commission.
       (B) Expenses.--The per diem and mileage allowances for a 
     witness shall be paid from funds available to pay the 
     expenses of the Commission.
       (3) Information from federal agencies.--
       (A) In general.--The Commission may secure directly, from 
     any Federal Department or agency, such information as the 
     Commission considers necessary to carry out the duties of the 
     Commission under subsection (b).
       (B) Provision of information.--
       (i) In general.--Subject to subparagraph (C), on the 
     request of the Commission, the head of a department or agency 
     described in subparagraph (A) shall furnish information 
     requested by the Commission to the Commission.
       (ii) Administration.--The furnishing of information by a 
     department or agency to the Commission shall not be 
     considered a waiver of any exemption available to the 
     department or agency under section 552 of title 5, United 
     States Code.
       (C) Information to be kept confidential.--
       (i) In general.--For purposes of section 1905 of title 18, 
     United States Code--

       (I) the Commission shall be considered an agency of the 
     Federal Government; and
       (II) any individual employed by an individual, entity, or 
     organization that is a party to a contract with the 
     Commission under subsection (e) shall be considered an 
     employee of the Commission.

       (ii) Prohibition on disclosure.--Information obtained by 
     the Commission, other than information that is available to 
     the public, shall not be disclosed to any person in any 
     manner except--

       (I) to an employee of the Commission described in clause 
     (i), for the purpose of receiving, reviewing, or processing 
     the information;
       (II) in compliance with a court order; or
       (III) in any case in which the information is publicly 
     released by the Commission in an aggregate or summary form 
     that does not directly or indirectly disclose--

       (aa) the identity of any person or business entity; or
       (bb) any information the release of which is prohibited 
     under section 1905 of title 18, United States Code.
       (d) Commission Personnel Matters.--
       (1) Compensation of members.--A member of the Commission 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (3) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (C) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Commission may fix the compensation of the 
     executive director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (4) Detail of federal government employees.--
       (A) In general.--Notwithstanding any other provision of law 
     (including an Act of appropriation), an employee of the 
     Federal Government may be detailed to the Commission, without 
     reimbursement, for such period of time as the Commission may 
     require.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (5) Procurement of temporary and intermittent services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (e) Contracts for Research.--
       (1) Advisory commission on intergovernmental relations.--
       (A) In general.--In carrying out the duties of the 
     Commission under subsection (b), the Commission may enter 
     into contracts with the Advisory Commission on 
     Intergovernmental Relations under which the Advisory 
     Commission on Intergovernmental Relations shall conduct a 
     thorough review of, and shall catalogue, all applicable 
     Federal, State, local, and tribal laws, regulations, and 
     ordinances that pertain to food safety in the United States.
       (B) Report.--A contract under subparagraph (A) shall 
     require that, not later than 240 days after the date on which 
     the Commission first meets, the Advisory Commission on 
     Intergovernmental Relations shall submit to the Commission a 
     report that describes the results of the services rendered by 
     the Advisory Commission on Intergovernmental Relations under 
     the contract.
       (2) National academy of sciences.--
       (A) In general.--In carrying out the duties of the 
     Commission under subsection (b), the Commission may enter in 
     contracts with the National Academy of Sciences to obtain 
     research or other assistance.
       (B) Report.--A contract under subparagraph (A) shall 
     require that, not later than 240 days after the date on which 
     the Commission first meets, the National Academy of Sciences 
     shall submit to the Commission a report that describes the 
     results of the services to be rendered by the National 
     Academy of Sciences under the contract.
       (3) Other organizations.--Nothing in this subsection limits 
     or otherwise affects the ability of the Commission to enter 
     into a contract with an entity or organization that is not 
     described in paragraph (1) or (2) to obtain assistance in 
     conducting research necessary to carry out the duties of the 
     Commission under subsection (b).
       (f) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $3,000,000.
       (2) Limitation.--No payment may be made under subsection 
     (d) or (e) except to the extent provided for in advance in an 
     appropriations Act.
       (g) Termination.--The Commission shall terminate on the 
     date that is 60 days after the date on which the Commission 
     submits the recommendations and report under subsection (b).

     SEC. 1067. HUMANE METHODS OF ANIMAL SLAUGHTER.

       It is the sense of Congress that--
       (1) the Secretary of Agriculture should--
       (A) resume tracking the number of violations of Public Law 
     85-765 (7 U.S.C. 1901 et seq.) and report the results and 
     relevant trends annually to Congress; and
       (B) fully enforce Public Law 85-765 by ensuring that humane 
     methods in the slaughter of livestock--
       (i) prevent needless suffering;
       (ii) result in safer and better working conditions for 
     persons engaged in the slaughtering of livestock;
       (iii) bring about improvement of products and economies in 
     slaughtering operations; and
       (iv) produce other benefits for producers, processors, and 
     consumers that tend to expedite an orderly flow of livestock 
     and livestock products in interstate and foreign commerce; 
     and
       (2) it should be the policy of the United States that the 
     slaughtering of livestock and the handling of livestock in 
     connection with slaughter shall be carried out only by humane 
     methods.

     SEC. 1068. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.

       Section 424 of the Plant Protection Act (7 U.S.C. 7734) is 
     amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Criminal Penalties.--
       ``(1) In general.--A person that knowingly violates this 
     title shall be subject to criminal penalties in accordance 
     with this subsection.
       ``(2) Major violations.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     person that commits a violation of this title described in 
     this subparagraph shall be guilty of a felony and, on 
     conviction, shall be imprisoned not more than 5 years, fined 
     not more than $25,000, or both, in the case of a violation of 
     this title involving--
       ``(i) plant pests;
       ``(ii) more than 50 pounds of plants;
       ``(iii) more than 5 pounds of plant products;
       ``(iv) more than 50 pounds of noxious weeds;

[[Page S1127]]

       ``(v) possession with intent to distribute or sell items 
     described in clause (i), (ii), (iii), or (iv), knowing the 
     items have been involved in a violation of this title; or
       ``(vi) forging, counterfeiting, or without authority from 
     the Secretary, using, altering, defacing, or destroying a 
     certificate, permit, or other document provided under this 
     title.
       ``(B) Multiple violations.--On the second and any 
     subsequent conviction of a person of a violation of this 
     title described in subparagraph (A), the person shall be 
     imprisoned not more than 10 years or fined not more than 
     $50,000, or both.
       ``(C) Intent to harm agriculture of united states.--In the 
     case of a knowing movement in violation of this title by a 
     person of a plant, plant product, biological control 
     organism, plant pest, noxious weed, article, or means of 
     conveyance into, out of, or within the United States, with 
     the intent to harm the agriculture of the United States by 
     introduction into the United States or dissemination of a 
     plant pest or noxious weed within the United States, the 
     person shall be imprisoned not less than 10 nor more than 20 
     years, fined not more than $500,000, or both.
       ``(3) Other violations.--
       ``(A) In general.--Subject to subparagraph (B), a person 
     shall be imprisoned not more than 1 year, fined not more than 
     $1,000, or both, in the case of a violation of this title 
     involving--
       ``(i) 50 pounds or less of plants;
       ``(ii) 5 pounds or less of plant products; or
       ``(iii) 50 pounds or less of noxious weeds.
       ``(B) Multiple violations.--On the second and any 
     subsequent conviction of a person that commits a violation of 
     this title described in this subparagraph shall be guilty of 
     a misdemeanor and, on conviction, of a violation of this 
     title described in subparagraph (A), the person shall be 
     imprisoned not more than 3 years, fined not more than 
     $10,000, or both.'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (e), (f), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Criminal Forfeiture.--
       ``(1) In general.--In imposing a sentence on a person 
     convicted of a violation of this title, in addition to any 
     other penalty imposed under this section and irrespective of 
     any provision of State law, a court shall order that the 
     person forfeit to the United States--
       ``(A) any of the property of the person used to commit or 
     to facilitate the commission of the violation (other than a 
     misdemeanor); and
       ``(B) any property, real or personal, constituting, derived 
     from, or traceable to any proceeds that the person obtained 
     directly or indirectly as a result of the violation.
       ``(2) Procedures.--All property subject to forfeiture under 
     this subsection, any seizure and disposition of the property, 
     and any proceeding relating to the forfeiture shall be 
     subject to the procedures of section 413 of the Comprehensive 
     Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
     853), other than subsections (d) and (q).
       ``(3) Proceeds.--The proceeds from the sale of any 
     forfeited property, and any funds forfeited, under this 
     subsection shall be used--
       ``(A) first, to reimburse the Department of Justice, the 
     United States Postal Service, and the Department of the 
     Treasury for any costs incurred by the Departments and the 
     Service to initiate and complete the forfeiture proceeding;
       ``(B) second, to reimburse the Office of Inspector General 
     of the Department of Agriculture for any costs incurred by 
     the Office in the law enforcement effort resulting in the 
     forfeiture;
       ``(C) third, to reimburse any Federal or State law 
     enforcement agency for any costs incurred in the law 
     enforcement effort resulting in the forfeiture; and
       ``(D) fourth, by the Secretary to carry out the functions 
     of the Secretary under this title.''; and
       (4) by inserting after subsection (c) (as redesignated by 
     paragraph (2)) the following:
       ``(c) Civil Forfeiture.--
       ``(1) In general.--There shall be subject to forfeiture to 
     the United States any property, real or personal--
       ``(A) used to commit or used knowingly to facilitate the 
     commission of a violation (other than a misdemeanor) 
     described in subsection (a); or
       ``(B) constituting, derived from, or traceable to proceeds 
     of a violation described in subsection (a).
       ``(2) Procedures.--
       ``(A) In general.--Subject to subparagraph (B), the 
     procedures of chapter 46 of title 18, United States Code, 
     relating to civil forfeitures shall apply to a seizure or 
     forfeiture under this subsection, to the extent that the 
     procedures are applicable and consistent with this 
     subsection.
       ``(B) Performance of duties.--Duties imposed on the 
     Secretary of the Treasury under chapter 46 of title 18, 
     United States Code, shall be performed with respect to 
     seizures and forfeitures under this subsection by officers, 
     employees, agents, and other persons designated by the 
     Secretary of Agriculture.''.

     SEC. 1069. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.

       (a) Effective Period.--Section 3(2) of Public Law 98-138 
     (Public Law 98-138; 97 Stat. 870) is amended by striking 
     ``twenty'' and inserting ``40''.
       (b) Authorization of Appropriations.--Public Law 98-138 (97 
     Stat. 866) is amended by adding at the end the following:

     ``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to the Secretary 
     of the Interior to carry out the activities of the 
     Connecticut River Atlantic Salmon Commission $9,000,000 for 
     each of fiscal years 2002 through 2010.''.

     SEC. 1070. BEAR PROTECTION.

       (a) Short Title.--This section may be cited as the ``Bear 
     Protection Act of 2002''.
       (b) Findings.--Congress finds that--
       (1) all 8 extant species of bear--Asian black bear, brown 
     bear, polar bear, American black bear, spectacled bear, giant 
     panda, sun bear, and sloth bear--are listed on Appendix I or 
     II of the Convention on International Trade in Endangered 
     Species of Wild Fauna and Flora (27 UST 1087; TIAS 8249);
       (2)(A) Article XIV of CITES provides that Parties to CITES 
     may adopt stricter domestic measures regarding the conditions 
     for trade, taking, possession, or transport of species listed 
     on Appendix I or II; and
       (B) the Parties to CITES adopted a resolution in 1997 
     (Conf. 10.8) urging the Parties to take immediate action to 
     demonstrably reduce the illegal trade in bear parts;
       (3)(A) thousands of bears in Asia are cruelly confined in 
     small cages to be milked for their bile; and
       (B) the wild Asian bear population has declined 
     significantly in recent years as a result of habitat loss and 
     poaching due to a strong demand for bear viscera used in 
     traditional medicines and cosmetics;
       (4) Federal and State undercover operations have revealed 
     that American bears have been poached for their viscera;
       (5) while most American black bear populations are 
     generally stable or increasing, commercial trade could 
     stimulate poaching and threaten certain populations if the 
     demand for bear viscera increases; and
       (6) prohibitions against the importation into the United 
     States and exportation from the United States, as well as 
     prohibitions against the interstate trade, of bear viscera 
     and products containing, or labeled or advertised as 
     containing, bear viscera will assist in ensuring that the 
     United States does not contribute to the decline of any bear 
     population as a result of the commercial trade in bear 
     viscera.
       (c) Purpose.--The purpose of this section is to ensure the 
     long-term viability of the world's 8 bear species by--
       (1) prohibiting interstate and international trade in bear 
     viscera and products containing, or labeled or advertised as 
     containing, bear viscera;
       (2) encouraging bilateral and multilateral efforts to 
     eliminate such trade; and
       (3) ensuring that adequate Federal legislation exists with 
     respect to domestic trade in bear viscera and products 
     containing, or labeled or advertised as containing, bear 
     viscera.
       (d) Definitions.--In this section:
       (1) Bear viscera.--The term ``bear viscera'' means the body 
     fluids or internal organs, including the gallbladder and its 
     contents but not including the blood or brains, of a species 
     of bear.
       (2) CITES.--The term ``CITES'' means the Convention on 
     International Trade in Endangered Species of Wild Fauna and 
     Flora (27 UST 1087; TIAS 8249).
       (3) Import.--The term ``import'' means to land on, bring 
     into, or introduce into any place subject to the jurisdiction 
     of the United States, regardless of whether the landing, 
     bringing, or introduction constitutes an importation within 
     the meaning of the customs laws of the United States.
       (4) Person.--The term ``person'' means--
       (A) an individual, corporation, partnership, trust, 
     association, or other private entity;
       (B) an officer, employee, agent, department, or 
     instrumentality of--
       (i) the Federal Government;
       (ii) any State or political subdivision of a State; or
       (iii) any foreign government; and
       (C) any other entity subject to the jurisdiction of the 
     United States.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (6) State.--The term ``State'' means a State, the District 
     of Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, the Commonwealth of the Northern Mariana 
     Islands, American Samoa, and any other territory, 
     commonwealth, or possession of the United States.
       (7) Transport.--The term ``transport'' means to move, 
     convey, carry, or ship by any means, or to deliver or receive 
     for the purpose of movement, conveyance, carriage, or 
     shipment.
       (e) Prohibited Acts.--
       (1) In general.--Except as provided in paragraph (2), a 
     person shall not--
       (A) import into, or export from, the United States bear 
     viscera or any product, item, or substance containing, or 
     labeled or advertised as containing, bear viscera; or
       (B) sell or barter, offer to sell or barter, purchase, 
     possess, transport, deliver, or receive, in interstate or 
     foreign commerce, bear viscera or any product, item, or 
     substance containing, or labeled or advertised as containing, 
     bear viscera.
       (2) Exception for wildlife law enforcement purposes.--A 
     person described in subsection (d)(4)(B) may import into, or 
     export from, the United States, or transport between States, 
     bear viscera or any product, item, or substance containing, 
     or labeled or advertised as containing, bear viscera if the 
     importation, exportation, or transportation--
       (A) is solely for the purpose of enforcing laws relating to 
     the protection of wildlife; and
       (B) is authorized by a valid permit issued under Appendix I 
     or II of CITES, in any case in which such a permit is 
     required under CITES.
       (f) Penalties and Enforcement.--
       (1) Criminal penalties.--A person that knowingly violates 
     subsection (e) shall be fined under title 18, United States 
     Code, imprisoned not more than 1 year, or both.
       (2) Civil penalties.--
       (A) Amount.--A person that knowingly violates subsection 
     (e) may be assessed a civil penalty by the Secretary of not 
     more than $25,000 for each violation.

[[Page S1128]]

       (B) Manner of assessment and collection.--A civil penalty 
     under this paragraph shall be assessed, and may be collected, 
     in the manner in which a civil penalty under the Endangered 
     Species Act of 1973 may be assessed and collected under 
     section 11(a) of that Act (16 U.S.C. 1540(a)).
       (3) Seizure and forfeiture.--Any bear viscera or any 
     product, item, or substance imported, exported, sold, 
     bartered, attempted to be imported, exported, sold, or 
     bartered, offered for sale or barter, purchased, possessed, 
     transported, delivered, or received in violation of this 
     subsection (including any regulation issued under this 
     subsection) shall be seized and forfeited to the United 
     States.
       (4) Regulations.--After consultation with the Secretary of 
     the Treasury and the United States Trade Representative, the 
     Secretary shall issue such regulations as are necessary to 
     carry out this subsection.
       (5) Enforcement.--The Secretary, the Secretary of the 
     Treasury, and the Secretary of the department in which the 
     Coast Guard is operating shall enforce this subsection in the 
     manner in which the Secretaries carry out enforcement 
     activities under section 11(e) of the Endangered Species Act 
     of 1973 (16 U.S.C. 1540(e)).
       (6) Use of penalty amounts.--Amounts received as penalties, 
     fines, or forfeiture of property under this subsection shall 
     be used in accordance with section 6(d) of the Lacey Act 
     Amendments of 1981 (16 U.S.C. 3375(d)).
       (g) Discussions Concerning Bear Conservation and the Bear 
     Parts Trade.--In order to seek to establish coordinated 
     efforts with other countries to protect bears, the Secretary 
     shall continue discussions concerning trade in bear viscera 
     with--
       (1) the appropriate representatives of Parties to CITES; 
     and
       (2) the appropriate representatives of countries that are 
     not parties to CITES and that are determined by the Secretary 
     and the United States Trade Representative to be the leading 
     importers, exporters, or consumers of bear viscera.
       (h) Certain Rights Not Affected.--Except as provided in 
     subsection (e), nothing in this section affects--
       (1) the regulation by any State of the bear population of 
     the State; or
       (2) any hunting of bears that is lawful under applicable 
     State law (including regulations).

     SEC. 1071. REENACTMENT OF FAMILY FARMER BANKRUPTCY 
                   PROVISIONS.

       (a) Reenactment.--Notwithstanding any other provision of 
     law, chapter 12 of title 11, United States Code, is hereby 
     reenacted.
       (b) Conforming Repeal.--Section 302(f) of Public Law 99-554 
     (100 Stat. 3124) is repealed.
       (c) Effective Date.--This section shall be deemed to have 
     taken effect on October 1, 2001.

     SEC. 1072. PROHIBITION ON PACKERS OWNING, FEEDING, OR 
                   CONTROLLING LIVESTOCK.

       (a) In General.--Section 202 of the Packers and Stockyards 
     Act, 1921 (7 U.S.C. 192(f)) (as amended by section 1043(a)), 
     is amended by striking subsection (f) and inserting the 
     following:
       ``(f) Own or feed livestock directly, through a subsidiary, 
     or through an arrangement that gives the packer operational, 
     managerial, or supervisory control over the livestock, or 
     over the farming operation that produces the livestock, to 
     such an extent that the producer is no longer materially 
     participating in the management of the operation with respect 
     to the production of the livestock, except that this 
     subsection shall not apply to--
       ``(1) an arrangement entered into within 14 days before 
     slaughter of the livestock by a packer, a person acting 
     through the packer, or a person that directly or indirectly 
     controls, or is controlled by or under common control with, 
     the packer;
       ``(2) a cooperative or entity owned by a cooperative, if a 
     majority of the ownership interest in the cooperative is held 
     by active cooperative members that--
       ``(A) own, feed, or control livestock; and
       ``(B) provide the livestock to the cooperative for 
     slaughter; or
       ``(3) a packer that is owned or controlled by producers of 
     a type of livestock, if during a calendar year the packer 
     slaughters less than 2 percent of the head of that type of 
     livestock slaughtered in the United States; or''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsection (a) take effect on the date of enactment 
     of this Act.
       (2) Transition rules.--In the case of a packer that on the 
     date of enactment of this Act owns, feeds, or controls 
     livestock intended for slaughter in violation of section 
     202(f) of the Packers and Stockyards Act, 1921 (as amended by 
     subsection (a)), the amendments made by subsection (a) apply 
     to the packer--
       (A) in the case of a packer of swine, beginning on the date 
     that is 18 months after the date of enactment of this Act; 
     and
       (B) in the case of a packer of any other type of livestock, 
     beginning as soon as practicable, but not later than 180 
     days, after the date of enactment of this Act, as determined 
     by the Secretary of Agriculture.

     SEC. 1073. EQUITY AND FAIRNESS FOR THE PROMOTION OF IMPORTED 
                   HASS AVOCADOS.

       Section 1205 of the Hass Avocado Promotion, Research, and 
     Information Act (contained in H.R. 5426 of the One Hundred 
     Sixth Congress, as introduced on October 6, 2000 and as 
     enacted by Public Law 106-387) is amended--
       (1) in subsection (b)(2) after subparagraph (B) insert--
       ``(C) Future allocation.--After 5 years, the United States 
     Department of Agriculture has discretion to revisit the issue 
     of seat allocation on the board.''.
       (2) in subsection (h)(1)(C)(iii) by striking everything in 
     the first sentence following ``shall'' and inserting in lieu 
     thereof ``be paid not less than 30 days after the avocado 
     clears customs, unless deemed not feasible as determined by 
     the Commissioner of Customs in consultation with the 
     Secretary of Agriculture.''.

     SEC. 1074. SENSE OF THE SENATE REGARDING SOCIAL SECURITY 
                   SURPLUS FUNDS.

       (a) Findings.--
       (1) Since both political parties have pledged not to misuse 
     social security surplus funds by spending them for other 
     purposes.
       (2) Since under the Administration's fiscal year 2003 
     budget, the Federal Government is projected to spend the 
     social security surplus for other purposes in each of the 
     next 10 years.
       (3) Since permanent extension of the inheritance tax repeal 
     would cost, according to the Administration's estimate, 
     approximately $104,000,000,000 over the next 10 years, all of 
     which would further reduce the social security surplus.
       (b) Sense of the Senate.--Therefore it is the sense of the 
     Senate that no social security surplus funds should be used 
     to pay to make currently scheduled tax cuts permanent or for 
     wasteful spending.

     SEC. 1075. SENSE OF THE SENATE ON PERMANENT REPEAL OF ESTATE 
                   TAXES.

       (a) Findings.--
       (1) The Economic Growth and Tax Relief Reconciliation Act 
     of 2001 provided substantial relief from Federal estate and 
     gift taxes beginning this year and repealed the Federal 
     estate tax for one year beginning on January 1, 2010.
       (2) The Economic Growth and Tax Relief Reconciliation Act 
     of 2001 contains a ``sunset'' provision that reinstates the 
     Federal estate tax at its 2001 level beginning on January 1, 
     2011.
       (b) Sense of the Senate.--Therefore, it is the sense of the 
     Senate that the repeal of the estate tax should be made 
     permanent by eliminating the sunset provision's applicability 
     to the estate tax.

     SEC. 1076. COMMERCIAL FISHERIES FAILURE.

       (a) In General.--In addition to amounts appropriated or 
     otherwise made available by this Act, there are appropriated 
     to the Department of Agriculture $10,000,000 for fiscal year 
     2002, which shall be transferred to the Commodity Credit 
     Corporation to provide, in consultation with the Secretary of 
     Commerce, emergency disaster assistance for the commercial 
     fishery failure under section 308(b)(1) of the 
     Interjurisdictional Fisheries Act of 1986 (16 U.S.C. 
     4107(b)(1)) with respect to Northeast multispecies fisheries.
       (b) Program Requirements.--Amounts made available under 
     this section shall be used to support a voluntary fishing 
     capacity reduction program in the Northeast multispecies 
     fishery that--
       (1) is certified by the Secretary of Commerce to be 
     consistent with section 312(b) of the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1861a(b)); 
     and
       (2) permanently revokes multispecies limited access fishing 
     permits so as to obtain the maximum sustained reduction in 
     fishing capacity at the least cost and in the minimum period 
     of time and to prevent the replacement of fishing capacity 
     removed by the program.
       (c) Application of Interim Final Rule.--The program shall 
     be carried out in accordance with the Interim Final Rule 
     under part 648 of title 50, Code of Federal Regulations, or 
     any corresponding regulation or rule promulgated thereunder.
       (d) Sunset.--The authority provided by subsection (a) shall 
     terminate 1 year after the date of enactment of this Act and 
     no amount may be made available under this section 
     thereafter.

     SEC. 1077. REVIEW OF STATE MEAT INSPECTION PROGRAMS.

       (a) Findings.--Congress finds that--
       (1) the goal of a safe and wholesome supply of meat and 
     meat food products throughout the United States would be 
     better served if a consistent set of requirements, 
     established by the Federal Government, were applied to all 
     meat and meat food products, whether produced under State 
     inspection or Federal inspection;
       (2) under such a system, Federal and State meat inspection 
     programs would function together to create a seamless 
     inspection system to ensure food safety and inspire consumer 
     confidence in the food supply in interstate commerce; and
       (3) such a system would ensure the viability of State meat 
     inspection programs, which should help to foster the 
     viability of small establishments.
       (b) Review.--Not later than September 30, 2003, the 
     Secretary of Agriculture shall conduct a comprehensive review 
     of each State meat and poultry inspection program, which 
     shall include--
       (1) an analysis of the effectiveness of the State program; 
     and
       (2) identification of changes that are necessary to enable 
     the possible future transformation of the State program to a 
     State meat and poultry inspection program that includes the 
     mandatory antemortem and postmortem inspection, reinspection, 
     sanitation, and related requirements of the Federal Meat 
     Inspection Act (21 U.S.C. 601 et seq.) and the Poultry 
     Products Inspection Act (21 U.S.C. 451 et seq.) (including 
     the regulations, directives, notices, policy memoranda, and 
     other regulatory requirements of those Acts).
       (c) Comment.--In carrying out subsection (a), the Secretary 
     shall, to the maximum extent practicable, obtain comment from 
     interested parties.
       (d) Funding.--There are authorized to be appropriated such 
     sums as are necessary to carry out this section.

     SEC. 1078. AGRICULTURAL RESEARCH AND TECHNOLOGY.

       (a) Scientific Studies.--
       (1) In general.--The Secretary of Agriculture shall conduct 
     scientific studies on--

[[Page S1129]]

       (A) the transmission of spongiform encephalopathy in deer, 
     elk, and moose; and
       (B) chronic wasting disease (including the risks that 
     chronic wasting disease poses to livestock).
       (2) Report.--The Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report on the results of the scientific studies.
       (b) Research and Extension Grant Program.--The Secretary 
     shall establish a program to provide research and extension 
     grants to eligible entities (as determined by the Secretary) 
     to develop, for livestock production--
       (1) prevention and control methodologies for infectious 
     animal diseases that affect trade; and
       (2) laboratory tests to expedite detection of--
       (A) infected livestock; and
       (B) the presence of diseases within herds or flocks of 
     livestock.
       (c) Vaccines.--
       (1) Vaccine storage study.--The Secretary shall--
       (A) conduct a study to determine the number of doses of 
     livestock disease vaccines that should be available to 
     protect against livestock diseases that could be introduced 
     into the United States; and
       (B) compare that number with the number of doses of the 
     livestock disease vaccines that are available as of that 
     date.
       (2) Stockpiling of vaccines.--If, after conducting the 
     study and comparison described in paragraph (1), the 
     Secretary determines that there is an insufficient number of 
     doses of a particular vaccine referred to in that paragraph, 
     the Secretary shall take such actions as are necessary to 
     obtain the required additional doses of the vaccine.
       (d) Veterinary Training.--The Secretary shall develop a 
     program to maintain in all regions of the United States a 
     sufficient number of Federal and State veterinarians who are 
     well trained in recognition and diagnosis of exotic and 
     endemic animal diseases.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary for each of fiscal years 2002 through 2006.

     SEC. 1079. OFFICE OF SCIENCE TECHNOLOGY POLICY.

       (a) In General.--The President may--
       (1) establish within the Office of Science and Technology 
     Policy a noncareer, senior executive service appointment 
     position for a Veterinary Advisor; and
       (2) appoint an individual to the position.
       (b) Qualifications; Duties.--The individual appointed to 
     the position described in subsection (a) shall--
       (1) hold the degree of Doctor of Veterinary Medicine from 
     an accredited or approved college of veterinary medicine; and
       (2) provide to the science advisor of the President 
     expertise in--
       (A) exotic and endemic animal disease detection, 
     prevention, and control;
       (B) food safety; and
       (C) animal agriculture.
       (c) Executive Schedule Pay Rates.--Section 5313 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``Veterinary Advisor, Office of Science and Technology 
     Policy.''.

     SEC. 1079A. OPERATION OF AGRICULTURAL AND NATURAL RESOURCE 
                   PROGRAMS ON TRIBAL TRUST LAND.

       (a) Review.--The Secretary of Agriculture (referred to in 
     this section as the ``Secretary''), in consultation with the 
     Secretary of the Interior, shall conduct a review of the 
     operation of agricultural and natural resource programs 
     available to farmers and ranchers operating on tribal and 
     trust land, including--
       (1) natural resource management programs;
       (2) incentive programs; and
       (3) farm income support programs.
       (b) Administration.--The Secretary shall carry out programs 
     described in subsection (a) in a manner that, to the maximum 
     extent practicable, is consistent with the American Indian 
     Agricultural Resource Management Act (25 U.S.C. 3701 et 
     seq.).
       (c) Fact-Finding Team.--The Secretary shall establish a 
     fact-finding team to obtain input from local officials and 
     program recipients to assist in carrying out this section.
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that describes actions taken to carry out this 
     section, including a plan to implement the actions.

     SEC. 1079B. ASSISTANCE FOR GEOGRAPHICALLY DISADVANTAGED 
                   FARMERS AND RANCHERS.

       (a) Definitions.--In this section:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Eligible entity.--The term ``eligible entity'' means--
       (A) any community-based organization, network, or coalition 
     of community-based organizations that--
       (i) has demonstrated experience in providing agricultural 
     education or other agriculturally related services to 
     geographically disadvantaged farmers and ranchers;
       (ii) has provided to the Secretary documentary evidence of 
     work with geographically disadvantaged farmers and ranchers 
     during the 2-year period preceding the submission of an 
     application for assistance under this section; and
       (iii) has not engaged in activities prohibited under 
     section 501(c)(3) of the Internal Revenue Code of 1986;
       (B)(i) a land-grant college or university that is located 
     in an insular area (as defined in section 1404 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3103)) (as amended by section 
     701(a)) or in a State other than 1 of the 48 contiguous 
     States; and
       (ii) any other institution of higher education (as defined 
     in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001)) that has demonstrated experience in providing 
     agricultural education or other agriculture-related services 
     to geographically disadvantaged farmers and ranchers in a 
     region; and
       (C) an Indian tribe (as defined in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b)) or national tribal organization that has demonstrated 
     experience in providing agriculture education or other 
     agriculturally related services to geographically 
     disadvantaged farmers and ranchers in a region.
       (3) Geographically disadvantaged farmer or rancher.--The 
     term ``geographically disadvantaged farmer or rancher'' means 
     a farmer or rancher in an insular area (as defined in section 
     1404 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)) (as amended by 
     section 701(a)) or in a State, other than one of the 48 
     contiguous States.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (b) Program.--The Secretary shall carry out an assistance 
     program to encourage and assist geographically disadvantaged 
     farmers and ranchers--
       (1) in owning and operating farms and ranches; and
       (2) in participating equitably in the full range of 
     agricultural programs offered by the Department.
       (c) Requirements.--The assistance program under subsection 
     (b) shall--
       (1) enhance coordination of technical assistance and 
     education efforts authorized under various agricultural 
     programs; and
       (2) include information on, and assistance with--
       (A) commodity, conservation, credit, rural, and business 
     development programs;
       (B) application and bidding procedures;
       (C) farm and risk management;
       (D) marketing; and
       (E) other activities essential to participation in 
     agricultural and other programs of the Department.
       (d) Grants and Contracts.--The Secretary may make grants 
     to, and enter into contracts and other agreements with, an 
     eligible entity to provide information and technical 
     assistance under this section.
       (e) Report.--Not later than 1 year after funds are made 
     available to carry out this section, the Secretary shall 
     submit to Congress a report that identifies barriers to 
     efficient and competitive transportation of inputs and 
     products by geographically disadvantaged farmers and 
     ranchers.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002 through 2006.

     SEC. 1079C. SENSE OF SENATE REGARDING USE OF THE NAME 
                   GINSENG.

       It is the sense of the Senate that the Commissioner of Food 
     and Drugs should promulgate regulations to ensure that, for 
     the purposes of section 403 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 343), the name ``ginseng'' or any 
     name that includes the word ``ginseng'' shall be used in 
     reference only to an herb or herbal ingredient that--
       (1) is a part of a plant of 1 of the species of the genus 
     Panax; and
       (2) is produced in compliance with United States law 
     regarding the use of pesticides.

     SEC. 1079D. ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM.

       Section 523 of the Federal Crop Insurance Act (7 U.S.C. 
     1523) is amended by adding at the end the following:
       ``(e) Adjusted Gross Revenue Insurance Pilot Program.--
       ``(1) In general.--The Corporation shall carry out, through 
     at least the 2004 reinsurance year, the adjusted gross 
     revenue insurance pilot program in effect for the 2002 
     reinsurance year.
       ``(2) Additional counties.--
       ``(A) In general.--In addition to counties otherwise 
     included in the pilot program, the Corporation shall include 
     in the pilot program for the 2003 reinsurance year at least 8 
     counties in the State that produces (as of the date of 
     enactment of this subsection) the highest quantity of 
     specialty crops for which adjusted gross revenue insurance 
     under this title is not available.
       ``(B) Selection criteria.--In carrying out subparagraph 
     (A), the Corporation shall include in the pilot program 
     counties that (as determined by the Corporation) produce a 
     significant quantity of specialty crops.''.

     SEC. 1079E. PASTEURIZATION.

       For the purposes of any provision of Federal law under 
     which a food or food product is required to undergo a 
     treatment of pasteurization, the term ``pasteurization'' 
     means any safe treatment that--
       (1) is a treatment prescribed as pasteurization applicable 
     to the food or food product under any Federal law (including 
     a regulation); or
       (2) has been demonstrated to the satisfaction of the 
     Secretary of Health and Human Services to achieve a level of 
     reduction in the food or food product of the microorganisms 
     of public health concern that--
       (A) is at least as protective of the public health as a 
     treatment described in paragraph (1); and
       (B) is effective for a period that is at least as long as 
     the shelf life of the food or food product when stored under 
     normal, moderate, and severe abuse conditions.

                    Subtitle E--Studies and Reports

     SEC. 1081. REPORT ON POUCHED AND CANNED SALMON.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Agriculture (referred 
     to in this section

[[Page S1130]]

     as the ``Secretary'') shall submit to Congress a report on 
     efforts to expand the promotion, marketing, and purchasing of 
     pouched and canned salmon harvested and processed in the 
     United States under food and nutrition programs administered 
     by the Secretary.
       (b) Components.--The report under subsection (a) shall 
     include--
       (1) an analysis of pouched and canned salmon inventories in 
     the United States that, as of the date on which the report is 
     submitted, that available for purchase;
       (2) an analysis of the demand for pouched and canned salmon 
     and value-added products (such as salmon ``nuggets'') by--
       (A) partners of the Department of Agriculture (including 
     other appropriate Federal agencies); and
       (B) consumers; and
       (3) an analysis of impediments to additional purchases of 
     pouched and canned salmon, including--
       (A) any marketing issues; and
       (B) recommendations for methods to resolve those 
     impediments.

     SEC. 1082. SETTLEMENT AGREEMENT REPORT.

       Not later than December 31, 2002, and annually thereafter 
     through 2006, the Comptroller General of the United States 
     shall submit to Congress a report that describes all programs 
     and activities that States have carried out using funds 
     received under all phases of the Master Settlement Agreement 
     of 1997.

     SEC. 1083. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED 
                   PLANTS.

       (a) Findings.--Congress finds that--
       (1) in 2000, the Committee on Genetically Modified Pest-
     Protected Plants of the Board on Agriculture and Natural 
     Resources of the National Research Council made several 
     recommendations concerning food safety, ecological research, 
     and monitoring needs for transgenic crops with plant 
     incorporated protectants; and
       (2) the Committee recommended enhancements to certain 
     operational aspects of the regulatory framework for 
     agricultural biotechnology, such as--
       (A) improving coordination and enhanced consistency of 
     review across all regulatory agencies; and
       (B) clarifying the scope of the regulatory jurisdiction of 
     the Animal and Plant Health Inspection Service.
       (b) Sense of Congress.--It is the sense of Congress that, 
     not later than 90 days after the date of enactment of this 
     Act, the Secretary of Agriculture should--
       (1) review the recommendations described in subsection (a); 
     and
       (2) submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes actions 
     taken to implement those recommendations by agencies within 
     the Department of Agriculture, including agencies that 
     develop or implement programs or objectives relating to 
     marketing, regulation, food safety, research, education, or 
     economics.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       (1) $10,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for each subsequent fiscal 
     year.

     SEC. 1084. STUDY OF CREATION OF LITTER BANK BY UNIVERSITY OF 
                   ARKANSAS.

       (a) In General.--The Secretary of Agriculture shall conduct 
     a study to evaluate the creation of a litter bank by the 
     Department of Agriculture at the University of Arkansas for 
     the purpose of enhancing health and viability of watersheds 
     in areas with large concentrations of animal producing units.
       (b) Components.--In conducting the study, the Secretary 
     shall evaluate the costs, needs, and means by which litter 
     may be collected and distributed outside the applicable 
     watershed to reduce potential point source and nonpoint 
     source phosphorous pollution.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the results of the study.

     SEC. 1085. STUDY OF FEASIBILITY OF PRODUCER INDEMNIFICATION 
                   FROM GOVERNMENT-CAUSED DISASTERS.

       (a) Findings.--Congress finds that the implementation of 
     Federal disaster assistance programs fails to adequately 
     address situations in which disaster conditions are primarily 
     the result of Federal action.
       (b) Authority.--The Secretary of Agriculture shall conduct 
     a study of the feasibility of expanding eligibility for crop 
     insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 
     et seq.), and noninsured crop assistance under section 196 of 
     the Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7333), to agricultural producers experiencing disaster 
     conditions caused primarily by Federal agency action.
       (c) Report.--Not later than 150 days after the date of 
     enactment of this Act, the Secretary shall submit report to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report that describes the results of the study, 
     including any recommendations.

     SEC. 1086. REPORT ON SALE AND USE OF PESTICIDES FOR 
                   AGRICULTURAL USES.

       Not later than 120 days after the date of enactment of this 
     Act, the Administrator of the Environmental Protection Agency 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report on the manner in which 
     the Agency is applying regulations of the Agency governing 
     the sale and use of pesticides for agricultural use to 
     electronic commerce transactions.

     SEC. 1087. REPORT ON RATS, MICE, AND BIRDS.

       (a) In General.--Not later than 1 year after date enactment 
     of this Act, the Secretary of Agriculture shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on the implications of including rats, mice, 
     and birds within the definition of animal under the Animal 
     Welfare Act (7 U.S.C. 2131 et seq.).
       (b) Requirements.--The report under subsection (a) shall--
       (1) be completed by the Comptroller General of the United 
     States;
       (2) contain a description of the number and types of 
     entities that currently use rats, mice, and birds, and are 
     not subjected to regulations of the Department of 
     Agriculture;
       (3) contain estimates of the numbers of rats, mice, and 
     birds currently used in research facilities that are not 
     currently regulated by the United States Department of 
     Agriculture;
       (4) contain an estimate of the additional costs likely to 
     be incurred by breeders and research facilities resulting 
     from the additional regulatory requirements needed in order 
     to afford the same levels of protection to rats, mice, and 
     birds as is provided for species currently regulated by the 
     Department of Agriculture, detailing the costs associated 
     with individual regulatory requirements;
       (5) contain an estimate of the additional funding that the 
     Animal and Plant Health Inspection Service would require to 
     be able to ensure that the level of compliance with respect 
     to other regulated animals is not diminished by the increase 
     in the number of facilities that would require inspections 
     after a rule extending the definition to include rats, mice, 
     and birds goes into effect; and
       (6) contain recommendations for ensuring that the 
     regulatory burden is no greater than that already applied to 
     rodent species under the Animal Welfare Act (7 U.S.C. 2131 et 
     seq.).

     SEC. 1088. TASK FORCE ON NATIONAL INSTITUTES FOR PLANT AND 
                   AGRICULTURAL SCIENCES.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     establish a task force to evaluate the merits of establishing 
     1 or more National Institutes for Plant and Agricultural 
     Sciences.
       (b) Membership.--
       (1) In general.--The Task Force shall consist of at least 8 
     members, appointed by the Secretary, that--
       (A) have a broad-based background in food, nutrition, 
     biotechnology, crop production methods, environmental 
     science, or related disciplines; and
       (B) are familiar with the infrastructure used to conduct 
     Federal and private research, including--
       (i) the National Institutes of Health;
       (ii) the National Science Foundation;
       (iii) the National Aeronautics and Space Administration;
       (iv) the Department of Energy laboratory system;
       (v) the Agricultural Research Service; and
       (vi) the Cooperative State Research and Extension Service.
       (2) Private sector.--Of the members appointed under 
     paragraph (1), the Secretary shall appoint at least 6 members 
     that are members of the private sector, including 
     institutions of higher education.
       (3) Plant and agricultural sciences research.--Of the 
     members appointed under paragraph (1), the Secretary shall 
     appoint at least 2 members that have an extensive background 
     and preeminence in the field of plant and agricultural 
     sciences research.
       (4) Chairperson.--Of the members appointed under paragraph 
     (1), the Secretary shall designate a Chairperson that has 
     significant leadership experience in educational and research 
     institutions and in depth knowledge of the research 
     enterprises of the United States.
       (5) Consultation.--Before appointing members of the Task 
     Force under this subsection, the Secretary shall consult with 
     the National Academy of Sciences and the Office of Science 
     and Technology Policy.
       (c) Duties.--The Task Force shall--
       (1) evaluate and compare--
       (A) publicly funded agricultural and plant sciences 
     research activities, including competitively awarded 
     research; and
       (B) privately funded agricultural and plant sciences 
     research activities;
       (2) evaluate and compare--
       (A) competitive publicly funded agricultural research 
     activities; and
       (B) other forms of publicly funded research, such as 
     medical research;
     including an assessment of the methods of evaluation, 
     administration, and funding;
       (3) evaluate the need for competitive public plant and 
     agricultural sciences research necessary--
       (A) to increase crop yields and productivity;
       (B) to improve environmental quality;
       (C) to enhance the value of farm output to agricultural 
     producers and consumers;
       (D) to promote health and improve nutrition;
       (E) to enhance food safety; and
       (F) to increase effective agricultural production to meet 
     the future needs of the growing population of the world, 
     especially in developing countries;
       (4) evaluate the merits of establishing 1 or more National 
     Institutes for Plant and Agricultural Sciences, that is 
     similar to the National Institute of Health--
       (A) to coordinate competitive, innovative research and 
     technological development and innovation;

[[Page S1131]]

       (B) to ensure the necessary supply of scientific personnel 
     in order to ensure the competitiveness of the United States 
     in an increasingly global trade market for agricultural 
     products; and
       (C) to facilitate the integration of scientific advances 
     from medical sciences, engineering, and information 
     technologies into plant and agricultural sciences; and
       (5) if establishment of 1 or more National Institutes for 
     Plant and Agricultural Sciences is recommended, provide 
     further recommendations to the Secretary, including 
     recommendations on--
       (A) the structure for establishing the Institutes;
       (B) the location of the Institutes in 1 or more multistate 
     regions with preeminence in plant, agricultural, and related 
     biological sciences (including in existing Federal plant and 
     animal research facilities and land grant institutions), in 
     order--
       (i) to use all relevant fields of knowledge; and
       (ii) to promote collaborative and interdisciplinary 
     research; and
       (C) the amount of funding necessary to establish the 
     Institutes.
       (d) Report.--Not later than July 1, 2003, the Task Force 
     shall submit to the Committee on Agriculture of the House of 
     Representatives, the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate, and the Secretary a report that 
     describes the results of the evaluation conducted under this 
     section, including recommendations described in subsection 
     (c)(5).

                 Subtitle F--Organic Products Promotion

     SEC. 1091. SHORT TITLE.

       This subtitle may be cited as the ``Organic Products 
     Promotion, Research, and Information Act of 2002''.

     SEC. 1092. DEFINITIONS.

       In this subtitle:
       (1) Agricultural commodity.--The term ``agricultural 
     commodity'' means--
       (A) agricultural, horticultural, viticultural, and dairy 
     products;
       (B) livestock and the products of livestock;
       (C) the products of poultry and bee raising;
       (D) the products of forestry or commercial fisheries;
       (E) other commodities raised or produced on farms, as 
     determined appropriate by the Secretary; and
       (F) products processed or manufactured from products 
     specified in the preceding subparagraphs, as determined 
     appropriate by the Secretary.
       (2) Board.--The term ``Board'' means the National Organic 
     Products Board established under section 1094(b).
       (3) Commodity promotion law.--The term ``commodity 
     promotion law'' has the meaning given the term in section 
     501(a) of the Federal Agriculture Improvement and Reform Act 
     of 1996 (7 U.S.C. 7401(a)).
       (4) Conflict of interest.--The term ``conflict of 
     interest'' means a situation in which a member or employee of 
     the Board has a direct or indirect financial interest in a 
     person that performs a service for, or enters into a contract 
     with, the Board for anything of economic value.
       (5) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (6) First handler.--The term ``first handler'' means--
       (A) the first person that buys or takes possession of an 
     organic product from a producer for marketing; and
       (B) in a case in which a producer markets an organic 
     product directly to consumers, the producer.
       (7) Importer.--The term ``importer'' means any person that 
     imports an organic product from outside the United States for 
     sale in the United States as a principal or as an agent, 
     broker, or consignee of any person.
       (8) Information.--The term ``information'' means 
     information and programs that are designed to increase--
       (A) efficiency in processing; and
       (B) the development of new markets, marketing strategies, 
     increased marketing efficiency, and activities to enhance the 
     image of organic products on a national or international 
     basis.
       (9) Market.--The term ``market'' means to sell or to 
     otherwise dispose of an organic product in interstate, 
     foreign, or intrastate commerce.
       (10) Order.--The term ``order'' means the order issued by 
     the Secretary under section 1093 that provides for a program 
     of generic promotion, research, and information regarding 
     organic products designed to--
       (A) strengthen the position of organic products in the 
     marketplace;
       (B) maintain and expand existing domestic and foreign 
     markets and uses for organic products;
       (C) develop new markets and uses for organic products; or
       (D) assist producers in meeting conservation objectives.
       (11) Organically produced.--The term ``organically 
     produced'', with respect to an agricultural product, means 
     produced and handled in accordance with the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6501 et seq.).
       (12) Organic product.--The term ``organic product'' means 
     an agricultural product that is organically produced.
       (13) Organic products industry.--The term ``organic 
     products industry'' includes nonprofit and other 
     organizations representing the interests of producers, first 
     handlers, and importers of organic products.
       (14) Person.--The term ``person'' means any individual, 
     group of individuals, partnership, corporation, association, 
     cooperative, or any other legal entity.
       (15) Producer.--The term ``producer'' means any person that 
     is engaged in the production and sale of an organic product 
     in the United States.
       (16) Promotion.--The term ``promotion'' means any action 
     taken by the Board under the order, including paid 
     advertising, to present a favorable image of organic products 
     to the public to improve the competitive position of organic 
     products in the marketplace and to stimulate sales of organic 
     products.
       (17) Research.--The term ``research'' means any type of 
     test, study, or analysis designed to advance the image, 
     desirability, use, marketability, production, product 
     development, or quality of an organic product.
       (18) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (19) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (20) Suspend.--The term ``suspend'' means to issue a rule 
     under section 553 of title 5, United States Code, to 
     temporarily prevent the operation of the order during a 
     particular period of time specified in the rule.
       (21) Terminate.--The term ``terminate'' means to issue a 
     rule under section 553 of title 5, United States Code, to 
     cancel permanently the operation of the order beginning on a 
     date certain specified in the rule.
       (22) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 1093. ISSUANCE OF ORDERS.

       (a) Order.--
       (1) In general.--To effectuate the purpose of this 
     subtitle, the Secretary may issue, and amend from time to 
     time, an order applicable to--
       (A) producers of organic products;
       (B) the first handlers of organic products (and other 
     persons in the marketing chain, as appropriate); and
       (C) the importers of organic products.
       (2) National scope.--The order shall be national in scope.
       (b) Procedure for Issuance.--
       (1) Development or receipt of proposed order.--A proposed 
     order with respect to organic products may be--
       (A) prepared by the Secretary at any time on or after 
     January 1, 2004; or
       (B) submitted to the Secretary on or after January 1, 2004, 
     by--
       (i) an association of producers of organic products; or
       (ii) any other person that may be affected by the issuance 
     of the order with respect to organic products.
       (2) Consideration of proposed order.--If the Secretary 
     determines that a proposed order is consistent with and will 
     effectuate the purpose of this subtitle, the Secretary 
     shall--
       (A) publish the proposed order in the Federal Register; and
       (B) give due notice and opportunity for public comment on 
     the proposed order.
       (3) Preparation of final order.--After notice and 
     opportunity for public comment under paragraph (2) regarding 
     a proposed order, the Secretary shall--
       (A) take into consideration the comments received in 
     preparing a final order; and
       (B) ensure, to the maximum extent practicable, that the 
     final order is in conformity with the terms, conditions, and 
     requirements of this subtitle.
       (c) Issuance and Effective Date.--
       (1) In general.--Except as provided in paragraph (2), if 
     the Secretary determines that the order is consistent with 
     and will effectuate the purpose of this subtitle, the 
     Secretary shall issue the final order.
       (2) Exception.--Paragraph (1) shall not apply in a case in 
     which an initial referendum is conducted under section 
     1097(a).
       (3) Effective date.--The final order shall be issued and 
     shall take effect not later than 270 days after the date of 
     publication of the proposed order that was the basis for the 
     final order.

     SEC. 1094. REQUIRED TERMS IN ORDER.

       (a) In General.--The order shall contain the terms and 
     conditions specified in this section.
       (b) Board.--
       (1) Establishment.--The order shall establish a National 
     Organic Products Board to carry out a program of generic 
     promotion, research, and information relating to organic 
     products that effectuates the purposes of this subtitle.
       (2) Board membership.--
       (A) Number of members.--
       (i) In general.--The Board shall consist of the number of 
     members determined by the Secretary, in consultation with the 
     organic products industry.
       (ii) Alternate members.--In addition to the members 
     described in clause (i), the Secretary may appoint alternate 
     members of the Board.
       (B) Appointment.--
       (i) In general.--The Secretary shall appoint members of the 
     Board (including any alternate members) from among producers, 
     first handlers, and importers of organic products that elect 
     to pay the assessment described in section 1096, and others 
     in the marketing chain, as appropriate.
       (ii) Members of the public.--The Secretary may appoint 1 or 
     more members of the general public to the Board.
       (C) Nominations.--The Secretary may make appointments from 
     nominations made in accordance with the method described in 
     the order.
       (D) Geographical and industry representation.--To ensure 
     fair and equitable representation of organic producers and 
     others covered by the order, the composition of the Board 
     shall reflect--
       (i) the geographical distribution of the production of 
     organic products in the United States;

[[Page S1132]]

       (ii) the quantity or value of organic products covered by 
     the order imported into the United States; and
       (iii) the variations in the United States in the scale of 
     organic production operations.
       (3) Reapportionment of board membership.--In accordance 
     with rules issued by the Secretary, at least once in each 4-
     year period, the Board shall--
       (A) review the geographical distribution in the United 
     States of the production of organic products in, variations 
     in the scale of organic production operations in, and 
     quantity or value of organic products imported into, the 
     United States; and
       (B) as necessary, recommend to the Secretary the 
     reapportionment of the Board membership to reflect changes in 
     that geographical distribution of production, variations in 
     scale of organic production operations, or quantity or value 
     imported.
       (4) Notice.--
       (A) Vacancies.--The order shall provide for notice of Board 
     vacancies to the organic products industry.
       (B) Meetings.--
       (i) In general.--The Board shall provide prior notice of 
     meetings of the Board to--

       (I) the Secretary, to permit the Secretary, or a designated 
     representative of the Secretary, to attend the meetings; and
       (II) the public.

       (ii) Attendance.--A meeting of the Board shall be open to 
     the public.
       (5) Term of office.--
       (A) In general.--The members and any alternate members of 
     the Board shall each serve for a term of 3 years, except that 
     the members and any alternate members initially appointed to 
     the Board shall serve for terms of not more than 2, 3, and 4 
     years, as specified by the order.
       (B) Limitation on consecutive terms.--A member or alternate 
     member may serve not more than 2 consecutive terms.
       (C) Continuation of term.--Notwithstanding subparagraph 
     (B), each member or alternate member shall continue to serve 
     until a successor is appointed by the Secretary.
       (D) Vacancies.--A vacancy arising before the expiration of 
     a term of office of an incumbent member or alternate of the 
     Board shall be filled in a manner provided for in the order.
       (6) Compensation.--
       (A) In general.--Members and any alternate members of the 
     Board shall serve without compensation.
       (B) Travel expenses.--If approved by the Board, members or 
     alternate members shall be reimbursed for reasonable travel 
     expenses, which may include a per diem allowance or actual 
     subsistence incurred while away from their homes or regular 
     places of business in the performance of services for the 
     Board.
       (c) Powers and Duties of Board.--The order shall specify 
     the powers and duties of the Board established under the 
     order, including the power and duty--
       (1) to administer, and collect assessments under, the order 
     in accordance with the terms and conditions of the order;
       (2) to develop and recommend to the Secretary for 
     approval--
       (A) such bylaws as are necessary for the functioning of the 
     Board;
       (B) such rules as are necessary to administer the order; 
     and
       (C) such activities as are authorized to be carried out 
     under the order;
       (3) to meet, organize, and select from among the members of 
     the Board a chairperson, other officers, and committees and 
     subcommittees, as the Board determines to be appropriate;
       (4) to employ persons, other than the members, as the Board 
     considers necessary to assist the Board in carrying out the 
     duties of the Board (and to determine the compensation and 
     specify the duties of those persons);
       (5) subject to subsection (e), to develop and carry out 
     generic promotion, research, and information activities 
     relating to organic products;
       (6) to prepare and submit for the approval of the 
     Secretary, before the beginning of each fiscal year--
       (A) rates of assessment under section 1096; and
       (B) an annual budget of the anticipated expenses to be 
     incurred in the administration of the order, including the 
     probable cost of each promotion, research, and information 
     activity proposed to be developed or carried out by the 
     Board;
       (7) to borrow funds necessary for the startup expenses of 
     the order;
       (8) subject to subsection (f), to enter into contracts or 
     agreements to develop and carry out generic promotion, 
     research, and information activities relating to organic 
     products;
       (9) to pay the cost of the activities with--
       (A) assessments collected under section 1096;
       (B) earnings from invested assessments; and
       (C) other funds;
       (10)(A) to keep records that accurately reflect the actions 
     and transactions of the Board;
       (B) to keep and report minutes of each meeting of the Board 
     to the Secretary; and
       (C) to furnish the Secretary with any information or 
     records the Secretary requests;
       (11) to receive, investigate, and report to the Secretary 
     complaints of violations of the order; and
       (12) after providing public notice and an opportunity to 
     comment, to recommend to the Secretary such amendments to the 
     order as the Board considers appropriate.
       (d) Prohibited Activities.--The Board may not engage in, 
     and shall prohibit the employees and agents of the Board from 
     engaging in--
       (1) any action that would be a conflict of interest;
       (2) using funds collected by the Board under the order, any 
     action carried out for the purpose of influencing any 
     legislation or governmental action or policy (other than 
     recommending to the Secretary amendments to the order); and
       (3) any advertising (including promotion, research, and 
     information activities authorized to be carried out under the 
     order) that may be false or misleading or disparaging to 
     another agricultural commodity.
       (e) Activities and Budgets.--
       (1) Activities.--The order shall require the Board 
     established under the order to submit to the Secretary for 
     approval plans and projects for promotion, research, or 
     information relating to organic products.
       (2) Budgets.--
       (A) Submission to secretary.--
       (i) In general.--The order shall require the Board 
     established under the order to submit to the Secretary for 
     approval a budget of the anticipated annual expenses and 
     disbursements of the Board to be paid to administer the 
     order.
       (ii) Submission.--The budget shall be submitted--

       (I) before the beginning of a fiscal year; and
       (II) as frequently as is necessary after the beginning of 
     the fiscal year.

       (B) Reimbursement of secretary.--The order shall require 
     that the Secretary be reimbursed for all expenses incurred by 
     the Secretary in the implementation, administration, and 
     supervision of the order.
       (3) Incurring expenses.--The Board may incur the expenses 
     described in paragraph (2) and other expenses for the 
     administration, maintenance, and functioning of the Board as 
     authorized by the Secretary.
       (4) Payment of expenses.--
       (A) In general.--Expenses incurred under paragraph (3) 
     shall be paid by the Board using--
       (i) assessments collected under section 1096;
       (ii) earnings obtained from assessments; and
       (iii) other income of the Board.
       (B) Borrowed funds.--Any funds borrowed by the Board shall 
     be expended only for startup costs and capital outlays.
       (5) Limitation on spending.--For fiscal years beginning 3 
     or more years after the date of the establishment of the 
     Board, the Board may not expend for administration (except 
     for reimbursements to the Secretary required under paragraph 
     (2)(B)), maintenance, and functioning of the Board in a 
     fiscal year an amount that exceeds 15 percent of the 
     assessment and other income received by the Board for the 
     fiscal year.
       (f) Contracts and Agreements.--
       (1) In general.--The order shall provide that, with the 
     approval of the Secretary, the Board established under the 
     order may--
       (A) enter into contracts and agreements to carry out 
     generic promotion, research, and information activities 
     relating to organic products, including contracts and 
     agreements with producer associations or other entities as 
     considered appropriate by the Secretary; and
       (B) pay the cost of approved generic promotion, research, 
     and information activities using--
       (i) assessments collected under section 1096;
       (ii) earnings obtained from assessments; and
       (iii) other income of the Board.
       (2) Requirements.--Each contract or agreement shall provide 
     that any person that enters into the contract or agreement 
     with the Board shall--
       (A) develop and submit to the Board a proposed activity 
     together with a budget that specifies the cost to be incurred 
     to carry out the activity;
       (B) keep accurate records of all of transactions of the 
     person relating to the contract or agreement;
       (C) account for funds received and expended in connection 
     with the contract or agreement;
       (D) make periodic reports to the Board of activities 
     conducted under the contract or agreement; and
       (E) make such other reports as the Board or the Secretary 
     considers relevant.
       (g) Records of Board.--
       (1) In general.--The order shall require the Board--
       (A)(i) to maintain such records as the Secretary may 
     require; and
       (ii) to make the records available to the Secretary for 
     inspection and audit;
       (B) to collect and submit to the Secretary, at any time the 
     Secretary may specify, any information the Secretary may 
     request;
       (C) to account for the receipt and disbursement of all 
     funds in the possession, or under the control, of the Board; 
     and
       (D) to make public to the participants in the order the 
     minutes of Board meetings and actions of the Board.
       (2) Audits.--The order shall require the Board to have--
       (A) its records audited by an independent auditor at the 
     end of each fiscal year; and
       (B) a report of the audit submitted directly to the 
     Secretary.
       (h) Periodic Evaluation.--
       (1) In general.--In accordance with section 501(c) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7401(c)), the order shall require the Board to provide 
     for the independent evaluation of all generic promotion, 
     research, and information activities carried out under the 
     order.
       (2) Results.--The results of an evaluation described in 
     paragraph (1), with any confidential business information 
     expunged, shall be made available for public review by 
     producers, first handlers, importers, and other participants 
     in the order.
       (3) Conforming amendment.--Section 501(a) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7401(a)) is amended--
       (A) in paragraph (17), by striking ``or'' at the end;
       (B) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(19) section 1094(h) of the Organic Products Promotion, 
     Research, and Information Act of 2002.''.

[[Page S1133]]

       (i) Books and Records of Persons Covered by Order.--
       (1) In general.--The order shall require that producers, 
     first handlers and other persons in the marketing chain, as 
     appropriate, and importers covered by the order shall--
       (A) maintain records sufficient to ensure compliance with 
     the order and regulations;
       (B) submit to the Board any information required by the 
     Board to carry out the responsibilities of the Board under 
     the order; and
       (C) make the records described in subparagraph (A) 
     available, during normal business hours, for inspection by 
     employees or agents of the Board or the Department, including 
     any records necessary to verify information required under 
     subparagraph (B).
       (2) Time requirement.--Any record required to be maintained 
     under paragraph (1) shall be maintained for such time period 
     as the Secretary may prescribe.
       (3) Other information.--The Secretary may use, and may 
     authorize the Board to use under this subtitle, information 
     regarding persons subject to the order that is collected by 
     the Department under any other law.
       (4) Confidentiality of information.--
       (A) In general.--Except as otherwise provided in this 
     subtitle, all information obtained under paragraph (1) or as 
     part of a referendum under section 1097 shall be kept 
     confidential by all officers, employees, and agents of the 
     Department and of the Board.
       (B) Disclosure.--Information referred to in subparagraph 
     (A) may be disclosed only if--
       (i) the Secretary considers the information relevant; and
       (ii) the information is revealed in a judicial proceeding 
     or administrative hearing--

       (I) brought at the direction or on the request of the 
     Secretary; or
       (II) to which the Secretary or any officer of the 
     Department is a party.

       (C) Other exceptions.--This paragraph shall not prohibit--
       (i) the issuance of general statements based on reports or 
     on information relating to a number of persons subject to the 
     order if the statements do not identify the information 
     furnished by any person; or
       (ii) the publication, by direction of the Secretary, of--

       (I) the name of any person violating any order; and
       (II) a statement of the particular provisions of the order 
     violated by the person.

       (D) Penalty.--Any person that willfully violates this 
     subsection shall be subject, on conviction, to a fine of not 
     more than $1,000 or to imprisonment for not more than 1 year, 
     or both.
       (5) Withholding information.--This subsection shall not 
     authorize the withholding of information from Congress.

     SEC. 1095. PERMISSIVE TERMS IN ORDER.

       (a) Exemptions.--The order may contain--
       (1) authority for the Secretary to exempt from the order 
     any de minimis quantity of organic products otherwise covered 
     by the order; and
       (2) authority for the Board to require satisfactory 
     safeguards against improper use of the exemption.
       (b) Different Payment and Reporting Schedules.--The order 
     may contain authority for the Board to designate different 
     payment and reporting schedules to recognize differences in 
     organic product industry marketing practices and procedures 
     used in different production and importing areas.
       (c) Activities.--
       (1) In general.--The order may contain authority to develop 
     and carry out research, promotion, and information activities 
     designed to expand, improve, or make more efficient the 
     marketing or use of organic products in domestic and foreign 
     markets.
       (2) Applicable authority.--Section 1094(e) shall apply with 
     respect to activities authorized under this subsection.
       (d) Reserve Funds.--The order may contain authority to 
     reserve funds from assessments collected under section 1096 
     to permit an effective and continuous coordinated program of 
     research, promotion, and information in years in which the 
     yield from assessments may be reduced, except that the amount 
     of funds reserved may not exceed the greatest aggregate 
     amount of the anticipated disbursements specified in budgets 
     approved under section 1094(e) by the Secretary for any 2 
     fiscal years.
       (e) Generic Activities.--The order may contain authority to 
     provide credits of assessments in accordance with section 
     1096(d) for those individuals that contribute to other 
     similar generic research, promotion, and information programs 
     at the State, regional, or local level.
       (f) Other Authority.--The order may contain authority to 
     take any other action that--
       (1) is not inconsistent with the purpose of this subtitle, 
     any term or condition specified in section 1094, or any rule 
     issued to carry out this subtitle; and
       (2) is necessary to administer the order.

     SEC. 1096. ASSESSMENTS.

       (a) In General.--A producer, first handler, or importer of 
     an organic product may elect to pay an assessment under the 
     order.
       (b) Payment.--If a first handler or importer of an organic 
     product elects to pay an assessment, the assessment shall be, 
     as appropriate--
       (1) paid by first handlers with respect to the organic 
     product produced and marketed in the United States; and
       (2) paid by importers with respect to the organic product 
     imported into the United States, if the imported organic 
     product is covered by the order under section 1095(f).
       (c) Collection.--Any assessment collected under the order 
     shall be remitted to the Board at the time and in the manner 
     prescribed by the order.
       (d) Limitation on Assessments.--Not more than 1 assessment 
     may be collected on a first handler or importer under 
     subsection (a) with respect to any organic product.
       (e) Investment of Assessments.--Pending disbursement of 
     assessments under a budget approved by the Secretary, the 
     Board may invest assessments collected under this section 
     in--
       (1) obligations of the United States or any agency of the 
     United States;
       (2) general obligations of any State or any political 
     subdivision of a State;
       (3) interest-bearing accounts or certificates of deposit of 
     financial institutions that are members of the Federal 
     Reserve System; or
       (4) obligations fully guaranteed as to principal and 
     interest by the United States.
       (f) Credits.--Notwithstanding any other provision of law or 
     any order issued under any commodity promotion law, the 
     Secretary shall permit a producer, first handler, or importer 
     of an organic product that pays an assessment to the Board to 
     receive a credit for the assessment against any assessment 
     that would otherwise be paid by the producer, first handler, 
     or importer under an order issued under another commodity 
     promotion law.

     SEC. 1097. REFERENDA.

       (a) Initial Referendum.--
       (1) In general.--For the purpose of ascertaining whether 
     the persons to be covered by the order favor the order going 
     into effect, the Secretary shall conduct an initial 
     referendum among persons that, during a representative period 
     determined by the Secretary, engaged in--
       (A) the production or handling of organic products; or
       (B) the importation of organic products.
       (2) Procedure.--The results of the referendum shall be 
     determined in accordance with subsection (e).
       (b) Subsequent Referendum.--Not later than 3 years after 
     the date on which assessments were first carried out under 
     the order, and at least once every 4 years thereafter, for 
     the purpose of ascertaining whether the persons covered by 
     the order favor the continuation, suspension, or termination 
     of the order, the Secretary shall conduct a referendum among 
     persons that, during a representative period determined by 
     the Secretary, have engaged in--
       (1) the production or handling of organic products; or
       (2) the importation of organic products.
       (c) Additional Referenda.--For the purpose of ascertaining 
     whether persons covered by the order favor the continuation, 
     suspension, or termination of the order, the Secretary shall 
     conduct additional referenda--
       (1) at the request of the Board; or
       (2) at the request of 10 percent or more of the number of 
     persons eligible to vote under subsection (b).
       (d) Optional Referenda.--The Secretary may conduct a 
     referendum at any time to determine whether the continuation, 
     suspension, or termination of the order or a provision of the 
     order is favored by persons eligible to vote under subsection 
     (b).
       (e) Approval of Order.--The order may provide for the 
     approval of the order in a referendum by a majority of 
     persons voting in the referendum.
       (f) Manner of Conducting Referenda.--
       (1) In general.--A referendum conducted under this section 
     shall be conducted in the manner determined by the Secretary 
     to be appropriate.
       (2) Advance registration.--If the Secretary determines that 
     an advance registration of eligible voters in a referendum is 
     necessary before the voting period to facilitate the conduct 
     of the referendum, the Secretary may institute the advance 
     registration procedures--
       (A) by mail;
       (B) in person through the use of national and local offices 
     of the Department; or
       (C) by such other means as may be prescribed by the 
     Secretary.
       (3) Voting.--Eligible voters may vote in the referendum--
       (A) by mail ballot;
       (B) in person; or
       (C) by such other means as may be prescribed by the 
     Secretary.
       (4) Notice.--
       (A) In general.--Not later than 30 days before the date on 
     which a referendum is conducted under this section with 
     respect to the order, the Secretary shall notify the organic 
     product industry, in such manner as determined to be 
     appropriate by the Secretary, of the period during which 
     voting in the referendum will occur.
       (B) Contents.--The notice shall explain any registration 
     and voting procedures established under this subsection.
       (g) Results of Referenda.--The results of referenda 
     conducted under this section shall be made available to the 
     public.

     SEC. 1098. PETITION AND REVIEW OF ORDERS.

       (a) Petition.--
       (1) In general.--A person subject to the order may file 
     with the Secretary a petition--
       (A) stating that the order, any provision of the order, or 
     any 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) Hearing.--The Secretary shall give the petitioner an 
     opportunity for a hearing on the petition, in accordance with 
     regulations promulgated by the Secretary.
       (3) Ruling.--
       (A) In general.--After the hearing, the Secretary shall 
     make a ruling on the petition.
       (B) Finality.--The ruling shall be final, subject to review 
     in accordance with subsection (b).
       (4) Limitation on petition.--Any petition filed under this 
     subsection challenging the

[[Page S1134]]

     order, any provision of the order, or any obligation imposed 
     in connection with the order, shall be filed not later than 2 
     years after the effective date of the order, provision, or 
     obligation subject to challenge in the petition.
       (b) Review.--
       (1) Commencement of action.--The district court of the 
     United States for any district in which a person that is a 
     petitioner under subsection (a) resides or carries on 
     business shall have jurisdiction to review the final 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 the final ruling by the Secretary under subsection 
     (a)(3).
       (2) Process.--Service of process in a proceeding may be 
     made on the Secretary by delivering a copy of the complaint 
     to the Secretary.
       (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 determines to be in 
     accordance with law; or
       (B) to take such further action as, in the opinion of the 
     court, the law requires.
       (c) Effect on Enforcement Proceedings.--The pendency of a 
     petition filed under subsection (a) or an action commenced 
     under subsection (b) shall not operate as a stay of any 
     action authorized by section 1098A to be taken to enforce 
     this subtitle, including any rule, order, or penalty in 
     effect under this subtitle.

     SEC. 1098A. ENFORCEMENT.

       (a) Jurisdiction.--The district courts of the United States 
     shall have jurisdiction specifically to enforce, and to 
     prevent and restrain a person from violating, the order 
     issued, or any regulation promulgated, 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 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--
       (1) providing a suitable written notice or warning to the 
     person that committed the violation; or
       (2) conducting an administrative action under this section.
       (c) Civil Penalties and Orders.--
       (1) Civil penalties.--A person that willfully violates the 
     order or regulation promulgated by the Secretary under this 
     subtitle may be assessed by the Secretary a civil penalty of 
     not less than $1,000 and not more than $10,000 for each 
     violation.
       (2) Separate offense.--Each violation and each day during 
     which there is a failure to comply with the order, or with 
     any regulation promulgated by the Secretary, shall be 
     considered to be a separate offense.
       (3) Cease-and-desist orders.--In addition to, or in lieu 
     of, a civil penalty, the Secretary issue an order requiring a 
     person to cease and desist from violating--
       (A) the order; or
       (B) any regulation promulgated under this subtitle.
       (4) Notice and hearing.--No order assessing a penalty or 
     cease-and-desist order may be issued by the Secretary under 
     this subsection unless the Secretary provides notice and an 
     opportunity for a hearing on the record with respect to the 
     violation.
       (5) Finality.--An order assessing a penalty, or a cease-
     and-desist order issued under this subsection by the 
     Secretary, shall be final and conclusive unless the person 
     against whom the order is issued files an appeal from the 
     order with the United States court of appeals, as provided in 
     subsection (d).
       (d) Review by Court of Appeals.--
       (1) In general.--A person against whom an order is issued 
     under subsection (c) may obtain review of the order by--
       (A) filing, not later than 30 days after the person 
     receives notice of the order, a notice of appeal in--
       (i) the United States court of appeals for the circuit in 
     which the person resides or carries on business; or
       (ii) the United States Court of Appeals for the District of 
     Columbia Circuit; and
       (B) simultaneously sending a copy of the notice of appeal 
     by certified mail to the Secretary.
       (2) Record.--The Secretary shall file with the court 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 on the record.
       (e) Failure To Obey Cease-And-Desist Orders.--
       (1) In general.--A person that fails to obey a valid cease-
     and-desist order issued by the Secretary under this section, 
     after an opportunity for a hearing, shall be subject to a 
     civil penalty assessed by the Secretary of not less than 
     $1,000 and not more than $10,000 for each offense.
       (2) Separate violations.--Each day during which the failure 
     continues shall be considered to be a separate violation of 
     the cease-and-desist order.
       (f) Failure To Pay Penalties.--
       (1) In general.--If a person fails to pay a civil penalty 
     imposed under this section by 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 for any district in which the person resides or 
     carries on business.
       (2) Reviewability.--In the action, the validity and 
     appropriateness of the order imposing the civil penalty shall 
     not be subject to review.
       (g) Additional Remedies.--The remedies provided in this 
     section shall be in addition to, and not exclusive of, other 
     remedies that may be available.

     SEC. 1098B. 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; or
       (2) to determine whether any person subject to this 
     subtitle has engaged, or is about to engage, in any action 
     that constitutes or will constitute a violation of this 
     subtitle or any order or regulation issued under this 
     subtitle.
       (b) Subpoenas, Oaths, and Affirmations.--
       (1) In general.--For the purpose of any 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 or documents that are relevant to the inquiry.
       (2) Scope.--The attendance of witnesses and the production 
     of records or documents may be required from any place in the 
     United States.
       (c) Aid of Courts.--
       (1) In general.--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 require the attendance and testimony of 
     the person or the production of records or documents.
       (2) Action by court.--The court may issue an order 
     requiring the person to appear before the Secretary to 
     produce records or documents or to give testimony regarding 
     the matter under investigation.
       (d) Contempt.--Any failure to obey the order of the court 
     may be punished by the court as a contempt of the court.
       (e) Process.--Process in any case under this section may be 
     served--
       (1) in the judicial district in which the person resides or 
     carries on business; or
       (2) wherever the person may be found.

     SEC. 1098C. SUSPENSION OR TERMINATION.

       (a) Mandatory Suspension or Termination.--The Secretary 
     shall suspend or terminate an order or a provision of an 
     order if the Secretary determines that--
       (1) an order or a provision of an order obstructs or does 
     not tend to effectuate the purpose of this subtitle; or
       (2) an order or a provision of an order is not favored by 
     persons voting in a referendum conducted under section 1097.
       (b) Implementation of Suspension or Termination.--If, as a 
     result of a referendum conducted under section 1097, the 
     Secretary determines that an order is not approved, the 
     Secretary shall--
       (1) not later than 180 days after making the determination, 
     suspend or terminate, as the case may be, collection of 
     assessments under the order; and
       (2) as soon as practicable, suspend or terminate, as the 
     case may be, activities under the order in an orderly manner.

     SEC. 1098D. AMENDMENTS TO ORDERS.

       The provisions of this subtitle applicable to an order 
     shall be applicable to any amendment to an order, except that 
     section 1097 shall not apply to an amendment.

     SEC. 1098E. EFFECT ON OTHER LAWS.

       Except as otherwise expressly provided in this subtitle, 
     this subtitle shall not affect or preempt any other Federal 
     or State law authorizing promotion or research relating to an 
     organic product.

     SEC. 1098F. REGULATIONS.

       The Secretary may promulgate such regulations as are 
     necessary to carry out this subtitle and the power vested in 
     the Secretary under this subtitle.

     SEC. 1098G. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this subtitle.
       (b) Limitation on Expenditures for Administrative 
     Expenses.--Funds made available to carry out this subtitle 
     may not be expended for the payment of expenses incurred by 
     the Board to administer the order.

                       Subtitle G--Administration

     SEC. 1099. REGULATIONS.

       (a) In General.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     this Act and the amendments made by this Act.
       (b) Procedure.--The promulgation of the regulations and 
     administration of title I and sections 459 and 508 and the 
     amendments made by title I and sections 459 and 508 shall be 
     made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out subsection (b), the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

     SEC. 1099A. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this Act and notwithstanding any other provision of law, 
     this Act and the amendments made by this Act shall not affect 
     the authority of the Secretary of Agriculture to carry out an 
     agricultural market transition, price support, or production 
     adjustment program for any of the 1996 through 2001 crop, 
     fiscal, or calendar years under a provision of law

[[Page S1135]]

     in effect immediately before the date of enactment of this 
     Act.
       (b) Liability.--A provision of this Act or an amendment 
     made by this Act shall not affect the liability of any person 
     under any provision of law as in effect immediately before 
     the date of enactment of this Act.

     SEC. 1099B. COMMODITY CREDIT CORPORATION FUNDING.

       Except for funds made available through a user fee or funds 
     made available in an appropriation act, notwithstanding any 
     other provision of this Act or an amendment made by this Act, 
     any funds that are made available through the transfer of 
     funds from the Secretary of the Treasury to the Secretary of 
     Agriculture expressly under this Act or an amendment made by 
     this Act shall be made available through funds of the 
     Commodity Credit Corporation.

                          ____________________